Watsonville City Council
June 13, 2023

47 not limited to the use of
project labor agreements; (2)
promote investments in highquality workforce
development programs with
supportive services to help
train, place, and retain people
in good-paying jobs or
registered apprenticeship, with
a focus on women, people of
color, and others that are
underrepresented in
infrastructure jobs (people
with disabilities, people with
convictions, etc.); (3) utilize
hiring policies and provide a
workplace culture to promote
the entry and retention of
underrepresented populations;
AND (4) promote local
inclusive economic
development and
entrepreneurship such as the
utilization of Disadvantaged
Business Enterprises,
Minority-owned Businesses,
Women-owned Businesses, or
8(a) firms.
including, but not limited to
the use of project labor
agreements; (2) promote
investments in high-quality
workforce development
programs with supportive
services to help train, place,
and retain people in goodpaying jobs or registered
apprenticeship, with a focus
on women, people of color,
and others that are
underrepresented in
infrastructure jobs (people
with disabilities, people with
convictions, etc.); (3) utilize
hiring policies and provide a
workplace culture to promote
the entry and retention of
underrepresented populations;
OR (4) promote local
inclusive economic
development and
entrepreneurship such as the
utilization of Disadvantaged
Business Enterprises,
Minority-owned Businesses,
Women-owned Businesses, or
8(a) firms.
(1) create good-paying jobs
with free and fair choice to
join a union and expand strong
labor standards including, but
not limited to the use of project
labor agreements; (2) promote
investments in high-quality
workforce development
programs with supportive
services to help train, place,
and retain people in goodpaying jobs or registered
apprenticeship, with a focus on
women, people of color, and
others that are
underrepresented in
infrastructure jobs (people with
disabilities, people with
convictions, etc.); (3) utilize
hiring policies and provide a
workplace culture to promote
the entry and retention of
underrepresented populations;
OR (4) promote local inclusive
economic development and
entrepreneurship such as the
utilization of Disadvantaged
Business Enterprises,
Minority-owned Businesses,
Women-owned Businesses, or
8(a) firms.
e. Criterion #5 CFI Program Vision
Applicants must describe how their project will fulfill the CFI Program Vision by expanding the deployment of EV charging and alternative fuels through community-based infrastructure in the Community Program and Alternative Fueling Corridor Networks in the Corridor Program.

Highly Qualified Qualified Not Qualified
The application demonstrates
the project WILL:

For Community Programs,
The application demonstrates
the project MAY:

For Community Programs,
The application contains
insufficient information to
allow reviewers to assess
whether the project WILL or Attachment 1

48 equitably expand the
deployment of public EV
charging infrastructure, or
hydrogen, propane or natural
gas fueling infrastructure in
publicly accessible locations
for use by the community,
including but not limited to
local businesses; retail centers;
municipal and local
community sites; intermodal
transportation facilities,
parking facilities, multimodal
hubs, multiunit dwellings,
workplaces, commercial
districts, tourism destinations
and cultural sites; public parks
and recreational destinations,
and other frequented site host
locations in the local
community.

In addition, the application
demonstrates that the project
will address one of the
following focus areas in
Section D.2.i.: (1) connect or
promote multi-modal hubs and
shared-use fleets and services;
(2) provide convenient,
affordable access to charging
and alternative fuel
infrastructure to offer
urban/suburban area charging
and fueling solutions; (3)
support multi-purpose use to
offer rural are charging and
fueling solutions; OR (4)
enable electrification or
alternative fuel use for fleet
vehicles that serve and operate
in the community.

OR
For Corridor Programs,
equitably expand the
deployment of public EV
charging infrastructure, or
hydrogen, propane or natural
gas fueling infrastructure in
publicly accessible locations
for use by the community,
including but not limited to
local businesses; retail centers;
municipal and local
community sites; intermodal
transportation facilities,
parking facilities, multimodal
hubs, multiunit dwellings,
workplaces, commercial
districts, tourism destinations
and cultural sites; public parks
and recreational destinations,
and other frequented site host
locations in the local
community.

In addition, the application
demonstrates that the project
may address one of the
following focus areas in
Section D.2.i.: (1) connect or
promote multi-modal hubs and
shared-use fleets and services;
(2) provide convenient,
affordable access to charging
and alternative fuel
infrastructure to offer
urban/suburban area charging
and fueling solutions; (3)
support multi-purpose use to
offer rural are charging and
fueling solutions; OR (4)
enable electrification or
alternative fuel use for fleet
vehicles that serve and operate
in the community.

OR
For Corridor Programs,
MAY demonstrate any of the
following items:

For Community Programs,
equitably expand the
deployment of public EV
charging infrastructure, or
hydrogen, propane or natural
gas fueling infrastructure in
publicly accessible locations
for use by the community,
including but not limited to
local businesses; retail centers;
municipal and local
community sites; intermodal
transportation facilities,
parking facilities, multimodal
hubs, multiunit dwellings,
workplaces, commercial
districts, tourism destinations
and cultural sites; public parks
and recreational destinations,
and other frequented site host
locations in the local
community.

In addition, the application
contains insufficient
information to allow reviewers
to assess whether the project
WILL or MAY demonstrate
any of the following focus
areas in Section D.2.i.: (1)
connect or promote multimodal hubs and shared-use
fleets and services; (2) provide
convenient, affordable access
to charging and alternative
fuel infrastructure to offer
urban/suburban area charging
and fueling solutions; (3)
support multi-purpose use to
offer rural are charging and
fueling solutions; OR (4)
enable electrification or
alternative fuel use for fleet
Attachment 1

49 expand deployment of public
DC fast charge EV charging
infrastructure, or hydrogen,
propane or natural gas fueling
infrastructure along FHWAdesignated AFCs that would
enable or accelerate the
construction of charging or
fueling infrastructure that
would be unlikely to be
completed without Federal
assistance.

In addition, the application
demonstrates that the project
will address one of the
following focus areas in
Section D.2.i.: (1) demonstrate
build-out of AFCs by
expanding existing or adding
new charging and fueling
infrastructure; (2) enable zero
emission corridors for
medium- and heavy-duty
vehicles that will enable zero
emission movement of goods,
connecting distribution hubs
and population centers; OR
(3) promote reliability and
resiliency to intermittent or
sustained power outages or
extreme weather events.
expand deployment of public
DC fast charge EV charging
infrastructure, or hydrogen,
propane or natural gas fueling
infrastructure along FHWAdesignated AFCs that would
enable or accelerate the
construction of charging or
fueling infrastructure that
would be unlikely to be
completed without Federal
assistance.

In addition, the application
demonstrates that the project
may address one of the
following focus areas in
Section D.2.i.: (1) demonstrate
build-out of AFCs by
expanding existing or adding
new charging and fueling
infrastructure; (2) enable zero
emission corridors for
medium- and heavy-duty
vehicles that will enable zero
emission movement of goods,
connecting distribution hubs
and population centers; OR
(3) promote reliability and
resiliency to intermittent or
sustained power outages or
extreme weather events.
vehicles that serve and operate
in the community.

OR
For Corridor Programs,
expand deployment of public
DC fast charge EV charging
infrastructure, or hydrogen,
propane or natural gas fueling
infrastructure along FHWAdesignated AFCs that would
enable or accelerate the
construction of charging or
fueling infrastructure that
would be unlikely to be
completed without Federal
assistance.

In addition, the application
contains insufficient
information to allow
reviewers to assess whether
the project WILL or MAY
demonstrate any of the
following focus areas in
Section D.2.i.: (1)
demonstrate build-out of
AFCs by expanding existing
or adding new charging and
fueling infrastructure; (2)
enable zero emission
corridors for medium- and
heavy-duty vehicles that will
enable zero emission
movement of goods,
connecting distribution hubs
and population centers; OR
(3) promote reliability and
resiliency to intermittent or
sustained power outages or
extreme weather events.

Attachment 1

50 v. DOT Statutory Selection Priorities – Community Program Only The following are Secretarial Statutory Selection Priorities for the CFI Program, which are unique to the Community Program.
(1) Priority goes to projects that expand access to EV vehicle charging infrastructure, hydrogen fueling infrastructure, propane fueling infrastructure, or natural gas fueling infrastructure within rural areas (23 U.S.C. § 151(f)(8)(F)(i)); (2) Priority goes to projects that expand access to EV charging infrastructure, hydrogen fueling infrastructure, propane fueling infrastructure, or natural gas fueling infrastructure within low- and moderate-income neighborhoods (23 U.S.C. § 151(f)(8)(F)(ii)); and
(3) Priority goes to projects that expand access to EV charging infrastructure, hydrogen fueling infrastructure, propane fueling infrastructure, or natural gas fueling infrastructure within communities with a low ratio of private parking spaces to households or a high ratio of multiunit dwellings to single family homes, as determined by the Secretary (23 U.S.C. § 151(f)(8)(F)(iii)). vi. Additional Considerations
Community Program Considerations
For the Community Program, DOT will consider the extent to which the project contributes to geographic diversity among eligible entities, including achieving a balance between urban and rural communities50 and the extent to which the project meets current or anticipated market demands for charging or fueling infrastructure, including faster charging 50 23 U.S.C. § 151(f)(8)(G)(i) Attachment 1

51 speeds with high-powered capabilities necessary to minimize the time to charge or refuel current and anticipated vehicles.51
Corridor Program Considerations
For the Corridor Program, DOT will consider the extent to which the projects will improve alternative fueling corridor networks by converting corridor-pending corridors to corridor-ready corridors or in the case of corridor-ready corridors, providing redundancy (aa) to meet excess demand for charging or fueling infrastructure; or (bb) to reduce congestion at existing charging or fueling infrastructure in high-traffic locations52 through identification of existing53 and planned54 locations. The DOT will consider the extent to which project would meet current or anticipated market demands for corridor charging or alternative fueling infrastructure,
55 would support a long-term competitive market for charging or alternative fueling and does not significantly impair existing charging and infrastructure providers56 through an analysis of the estimated charging or alternative fueling demand at the proposed infrastructure locations that was coordinated to avoid infrastructure overlap. The DOT will consider the extent to which the project would enable or accelerate the construction of charging or fueling infrastructure that would be unlikely to be completed without Federal assistance57 as a result of meaningful public engagement with communities that have lacked private investment in vehicle charging or alternative fuel infrastructure. The DOT will consider the extent to which the project would deploy EV charging infrastructure, hydrogen fueling infrastructure, propane fueling 51 23 U.S.C. § 151(f)(8)(G)(ii) 52 23 U.S.C. § 151(f)(5)(A)(i)(I) and (II) (aa) and (bb) 53 https://afdc.energy.gov/station 54 https://www.fhwa.dot.gov/environment/nevi/ev_deployment_plans/ 55 23 U.S.C. § 151(f)(5)(A)(ii) 56 23 U.S.C. § 151(f)(5)(A)(iv) 57 23 U.S.C. § 151(f)(5)(A)(iii) Attachment 1

52 infrastructure, or natural gas fueling infrastructure for medium- and heavy-duty vehicles (including along the National Highway Freight Network established under section 167(c)) and in proximity to intermodal transfer stations58 by identifying if the proposed infrastructure would be located at, near, or enroute to an intermodal coastal or inland port facility, and if yes, describe whether and how the proposed charging or alternative fuel infrastructure will be designed and scaled to accommodate medium- and heavy-duty alternative fuel vehicles. The DOT will consider the extent to which the project would ensure, to the maximum extent practicable, geographic diversity among grant recipients to ensure that EV charging infrastructure, hydrogen fueling infrastructure, propane fueling infrastructure, or natural gas fueling infrastructure is available throughout the United States.
59 The DOT will also consider the extent to which the
private entity that the eligible entity contracts for an eligible project (i) submits to the Secretary the most recent year of audited financial statements and (ii) has experience in installing and operating EV charging infrastructure, hydrogen fueling infrastructure, propane fueling infrastructure, or natural gas fueling infrastructure60 as evidenced by discussion in the narrative and provided resumes (not to exceed 2 pages per resume) for key participating team members.

The DOT will also consider the extent to which, to the maximum extent practicable, the eligible entity and the private entity that the eligible entity contracts for an eligible project enter into an agreement (i) to operate and maintain publicly available EV charging infrastructure, hydrogen fueling infrastructure, propane fueling infrastructure, or natural gas infrastructure and (ii) that provides a remedy and an opportunity to cure if the requirements described in clause (i) are not met.
61 58 23 U.S.C. § 151(f)(5)(A)(vi) 59 23 U.S.C. § 151(f)(5)(B) 60 23 U.S.C. § 151(f)(5)(C)(i) and (ii) 61 23 U.S.C. § 151(f)(5)(D)(i) and (ii) Attachment 1

53 vii. DOT Priority Considerations
The following are DOT Priority Considerations for the CFI Program, which apply to BOTH the Community and Corridor Programs.

After completing the merit review, DOT will prioritize Highly Recommended projects and Recommended projects that demonstrate exceptional benefits under Merit Criterion #3 Equity, Community Engagement, and Justice40, Merit Criterion #4 Workforce Development, Job Quality, and Wealth Creation, or Merit Criterion #5 CFI Program Vision.

2. Review and Selection Process
The FHWA will evaluate applicants for the CFI Program Grants in accordance with the evaluation process described below. The FHWA CFI Program Manager will conduct an application intake and eligibility review by providing an initial eligibility screening based on the respective statutory eligibility criteria under Section C of the NOFO. Only eligible projects will be evaluated against the selection criteria described above. i. Review Process
The FHWA will establish a Technical Review Team to review each eligible application for Community and Corridor funding categories. The Technical Review Team may be composed of individuals from FHWA Office of Planning, Environment and Real Estate, other FHWA Offices, Office of the Secretary, other DOT Administrations, the Joint Office of Energy and Transportation, and the U.S. Department of Energy. They will review each application against the Project Merit Criteria to assign an overall rating of “Highly Recommended,” “Recommended,” or “Not Recommended,” as defined under Section E.1.iv. to each application.

After assignment of the overall rating, the Technical Review Team will prioritize the Highly Recommended and Recommended applications for responsiveness to the applicable DOT Attachment 1

54 Statutory Selection Priorities (Community Program), Additional Considerations, and DOT Priority Considerations as described under Section E.1.v-vii. ii. Selection Process
The Technical Review Team will send the overall project rating for each grant application and the evaluation of responsiveness to the DOT Statutory Selection Priorities (Community Program), Additional Considerations, and DOT Priority Considerations for Highly Recommended and Recommend projects to the FHWA Senior Review Team (SRT). The FHWA SRT will determine which projects to advance to the FHWA Administrator as recommended for funding. The FHWA Administrator will determine which projects to advance to the Secretary, through the Under Secretary for Transportation Policy, as recommended for funding. The FHWA SRT is comprised of FHWA’s Senior Leadership and appropriate senior officials from the Office of Secretary as determined by the FHWA Administrator. The FHWA SRT will be the same for both CFI Programs.

The FHWA SRT will determine which Highly Recommended projects to advance to the FHWA Administrator. The FHWA SRT may also recommend for selection Recommended projects that meet one or more of the DOT Priority Considerations. When recommending a Recommended project over a Highly Recommended project, the FHWA SRT will select Recommended projects by considering how well the project addressed the Statutory Selection Considerations and Project Merit Criteria. The FHWA SRT will also consider the number of merit criteria rated Highly Qualified and endeavor to ensure a geographically diverse award of projects when recommending a Recommended project over a Highly Recommended project.

The FHWA Administrator will determine which Highly Recommended projects, and any Recommended projects, to advance to the Secretary after considering the FHWA SRT Attachment 1

55 recommendations including the responsiveness to the DOT Priority Considerations. The FHWA Administrator may advise the Secretary on options for reduced awards and ability to award certain eligible applications under either the Community or the Corridor Program. To the extent possible, all applications will be considered for both the Community and the Corridor Program regardless of which grant is applied for.

The Secretary makes final project selections and will select among the projects advanced by the FHWA Administrator. The Secretary’s selections identify the applications that best address the CFI Program Vision for Community and Corridor Grants, Project Merit Criteria, DOT Statutory Selection Priorities (for Community Program), Additional Considerations, , and DOT Priority Considerations.

3. Additional Information
The FHWA may, during the selection process, enter into discussions with an applicant that may include mutually agreeing upon a lesser amount of a potential award than originally requested in the application if necessary due to the quantity, size, and scope of the applications received in response to this notice and the results of the application review process. Discussions may include scalable project options as described under Section B.2. of this notice.

Prior to award, each selected applicant will be subject to a risk assessment as required by 2 CFR 200.206. The DOT must review and consider any information about the applicant that is in the designated integrity and performance system accessible through SAM. An applicant may review information in SAM.gov and comment on any information about itself that a Federal awarding Agency previously entered. The FHWA will consider comments by the applicant, in addition to the other information in SAM.gov, in making a judgment about the applicant’s Attachment 1

56 integrity, business ethics, and record of performance under Federal awards when completing the review of risk posed by applicants.

F. Federal Award Administration Information

1. Award Notices
Following the evaluation outlined in Section E., the Secretary will announce awarded projects by posting a list of selected projects at CFI - Environment - FHWA (dot.gov).

Notice of selection is not authorization to begin performance or to incur costs for the proposed project. Following that announcement, FHWA will contact the point of contact listed in the SF 424 to initiate negotiation of the project agreement for authorization. Recipients of CFI Program Grant awards will not receive lump-sum cash disbursements at the time of award announcement or obligation of funds. Instead, FHWA will reimburse CFI Program Grant funds to recipients only after a project agreement has been executed, allowable expenses are incurred, and valid requests for reimbursement are submitted. Unless authorized by FHWA in writing after FHWA’s announcement of FY 2022 and FY 2023 CFI Program awards, any costs that a recipient incurs before FHWA executes a project agreement for that recipient’s project are ineligible for reimbursement and are ineligible match for cost share requirements.

2. Administrative and National Policy Requirements
All awards will be administered pursuant to the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards found in 2 CFR Part 200, as adopted by DOT at 2 CFR Part 1201. Applicable Federal laws, rules, and regulations set forth in title 23, U.S.C., and title 23 of the CFR, shall apply to awards provided under this program. Awards are subject to all applicable Federal laws, rules, and regulations, including the Uniform Relocation and Real Property Acquisition Act (42 U.S.C. §§ 4601 et seq.; 49 CFR part 24) and National Attachment 1

57 Environmental Policy Act (NEPA) (42 U.S.C. §§ 4321 et seq.; 40 CFR parts 1500 – 1508; 23 CFR part 771). Applicants should consider the appropriate level of review under NEPA. Eligible CFI projects are generally the type of actions that would not be expected to result in significant environmental impacts. Several NEPA Categorical Exclusions (CE) may be applicable including those found at 23 CFR 771.117(c) and (d), depending on the scope of the action and the CEs conditions. One example of a CE that may apply to projects under this grant is the CE 23 CFR 771.117 (c)(23), however other CEs or other NEPA requirements may apply. Before a CE determination can be applied, the action must be analyzed to determine whether there are project impacts to natural, community, or historical resources (i.e., unusual circumstances that would require further analysis to determine whether the CE classification is appropriate (see 23 CFR 771.117(a-b)).

In connection with any program or activity conducted with or benefiting from funds awarded under this notice, recipients of funds must comply with all applicable requirements of Federal law, including, without limitation, the Constitution of the United States; the conditions of performance, non-discrimination requirements, and other assurances made applicable to the award of funds in accordance with regulations of DOT; and applicable Federal financial assistance and contracting principles promulgated by the Office of Management and Budget (OMB). In complying with these requirements, recipients, in particular, must ensure that no concession agreements are denied or other contracting decisions made on the basis of speech or other activities protected by the First Amendment. If FHWA determines that a recipient has failed to comply with applicable Federal requirements, FHWA may terminate the award of funds and disallow previously incurred costs, requiring the recipient to reimburse any expended award funds.

Attachment 1

58 In particular, EO 14005 directs the Executive Branch Departments and Agencies to maximize the use of goods, products, and materials produced in, and services offered in, the United States through the terms and conditions of Federal financial assistance awards. If selected for an award, grant recipients must be prepared to demonstrate how they will maximize the use of domestic goods, products, and materials in constructing their project. Any grant projects involving vehicle acquisition must involve only vehicles that comply with applicable Federal Motor Vehicle Safety Standards (FMVSS) and Federal Motor Carriers Safety Regulations (FMCSR), or vehicles that are exempt from FMVSS or FMCSR in a manner that allows for the legal acquisition and deployment of the vehicle or vehicles.

Critical Infrastructure Security and Resilience: It is the policy of the United States to strengthen the security and resilience of its critical infrastructure against both physical and cyber threats. Each applicant selected for Federal funding under this notice must demonstrate, prior to the signing of the grant agreement, effort to consider and address physical and cyber security risks relevant to the transportation mode and type and scale of the project.

Projects that have not appropriately considered and addressed physical and cyber security and resilience in their planning, design, and project oversight, as determined by the Department and the U.S. Department of Homeland Security, will be required to do so before receiving funds for construction, consistent with Presidential Policy Directive 21 - Critical Infrastructure Security and Resilience and the National Security Presidential Improving Cybersecurity for Critical Infrastructure Control Systems. Information on cybersecurity performance goals can be found at https://www.cisa.gov/cpg. These performance goals provide a baseline set of cybersecurity practices broadly applicable across critical infrastructure with known risk-reduction value, a benchmark for critical infrastructure operators to measure and improve their cybersecurity Attachment 1

59 maturity, and a combination of recommended practices for IT and OT owners, including a prioritized set of security practices.  Additionally, funding recipients must be in compliance with 2 CFR § 200.216 and the prohibition on certain telecommunications and video surveillance services or equipment.

Domestic Preference Requirements: As expressed in EO 14005, ‘Ensuring the Future Is Made in All of America by All of America’s Workers’ (86 FR 7475), the executive branch should maximize, consistent with law, the use of goods, products, and materials produced in, and services offered in, the United States. Funds made available under this notice are subject to the domestic preference requirement at Build America, Buy America Act (Pub. L.

No 117-58, div. G §§ 70901–70927). The Department expects all applicants to comply with that requirement. However, to obtain a waiver, a recipient must be prepared to demonstrate how they will maximize the use of domestic goods, products, and materials in constructing their project.

Civil Rights and Title VI: As a condition of a grant award, grant recipients should demonstrate that the recipient has a plan for compliance with civil rights obligations and nondiscrimination laws, including Title VI of the Civil Rights Act of 1964 and implementing regulations (49 CFR part 21), the ADA, and Section 504 of the Rehabilitation Act, all other civil rights requirements, and accompanying regulations. This should include a current Title VI plan, completed Community Participation Plan, and a plan to address any legacy infrastructure or facilities that are not compliant with ADA standards. The DOT’s and the applicable Operating Administrations’ Office of Civil Rights may work with awarded grant recipients to ensure full compliance with Federal civil rights requirements.

Attachment 1

60 Federal Contract Compliance: As a condition of grant award and consistent with EO 11246, EEO (30 FR 12319, and as amended), all Federally-assisted contractors are required to make good faith efforts to meet the goals of 6.9 percent of construction project hours being performed by women, in addition to goals that vary based on geography for construction work hours and for work being performed by people of color. Under Section 503 of the Rehabilitation Act and its implementing regulations, affirmative action obligations for certain contractors include an aspirational employment goal of 7 percent workers with disabilities.

The DOL’s OFCCP is charged with enforcing EO 11246, Section 503 of the Rehabilitation Act of 1973, and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. OFCCP has a Mega Construction Project Program through which it engages with project sponsors as early as the design phase to help promote compliance with non-discrimination and affirmative action obligations. The OFCCP will identify projects that receive an award under this notice and are required to participate in OFCCP’s Mega Construction Project Program from a wide range of federally-assisted projects over which OFCCP has jurisdiction and that have a project cost above $35 million. Additional information on how OFCCP makes their selections for participation in the Mega Construction Project Program is outlined under “Scheduling” on the DOL Website: Construction Compliance Frequently Asked Questions | U.S. Department of Labor (dol.gov).

The applicability of Federal requirements to a project may be affected by the scope of the NEPA reviews for that project. For example, under 23 U.S.C. § 313(g), Buy America requirements apply to all contracts that are eligible for assistance under title 23, United States Code, and are carried out within the scope of the NEPA finding, determination, or decision Attachment 1

61 regardless of the funding source of such contracts if at least one contract is funded with Title 23 funds. As another example, ADA regulations and Section 504 of the Rehabilitation Act of 1973 regulations apply to all projects funded under this notice.

Performance and Program Evaluation: As a condition of grant award, grant recipients may be required to participate in an evaluation undertaken by DOT or another Agency or partner. The evaluation may take different forms such as an implementation assessment across grant recipients, an impact or outcomes analysis of all or selected sites within or across grant recipients, or a benefit/cost analysis or assessment of return on investment. The DOT may require applicants to collect data elements to aid the evaluation. As a part of the evaluation, as a condition of award, grant recipients must agree to: (1) make records available to the evaluation contractor or DOT staff; (2) provide access to program records, and any other relevant documents to calculate costs and benefits; (3) in the case of an impact analysis, facilitate the access to relevant information as requested; and (4) follow evaluation procedures as specified by the evaluation contractor or DOT staff.

Recipients and subrecipients are also encouraged to incorporate program evaluation including associated data collection activities from the outset of their program design and implementation to meaningfully document and measure their progress towards meeting an Agency priority goal(s). Title I of the Foundations for Evidence-Based Policymaking Act of 2018 (Evidence Act), Pub. L. No. 115-435 (2019) urges Federal awarding Agencies and Federal assistance recipients and subrecipients to use program evaluation as a critical tool to learn, to improve equitable delivery, and to elevate program service and delivery across the program lifecycle. Evaluation means “an assessment using systematic data collection and analysis of one or more programs, policies, and organizations intended to assess their effectiveness and Attachment 1

62 efficiency.” 5 U.S.C. § 311. Credible program evaluation activities are implemented with relevance and utility, rigor, independence and objectivity, transparency, and ethics (OMB Circular A-11, Part 6 Section 290).

For grant recipients receiving an award, evaluation costs are allowable costs (either as direct or indirect), unless prohibited by statute or regulation, and such costs may include the personnel and equipment needed for data infrastructure and expertise in data analysis, performance, and evaluation (2 CFR Part 200).

Climate Change and Environmental Justice Impact Consideration: Each applicant selected for CFI Program funding must demonstrate effort to consider climate change and environmental justice impacts as described in Section E.1.b. Projects that have not sufficiently considered climate change and environmental justice in their planning, as determined by the DOT, will be required to do so before receiving funds for construction, consistent with EO 14008, Tackling the Climate Crisis at Home and Abroad (86 FR 7619).62 Equity and Barriers to Opportunity: Each applicant selected for CFI Program Grant funding must demonstrate effort to improve equity and reduce barriers to opportunity. Projects that have not sufficiently considered equity and barriers to opportunity in their planning, as determined by DOT, will be required to do so before receiving funds for construction, consistent with EO 13985, Advancing Racial Equity and Support for Underserved Communities Through the Federal Government (86 FR 7009).63
62 An illustrative example of how these requirements are applied to recipients can be found here:
https://cms.buildamerica.dot.gov/buildamerica/financing/infra-grants/infra-fy21-fhwa-general-terms-and-conditions 63 An illustrative example of how these requirements are applied to recipients can be found here:
https://cms.buildamerica.dot.gov/buildamerica/financing/infra-grants/infra-fy21-fhwa-general-terms Attachment 1 -and-conditions

63 Davis-Bacon Act: Recipients of an award under this program are also required to comply fully with the Davis-Bacon Act (40 U.S.C. §§ 3141-3148; 23 U.S.C. § 109(s)(2); 23 U.S.C. § 113(a)), which requires all laborers and mechanics employed by contractors or subcontractors in the performance of construction, alteration, or repair work on a project assisted in whole or in part by an award made available under this program, be paid wages at rates not less than those prevailing on similar projects in the locality, as determined by the Secretary of Labor.

Disadvantaged Business Enterprise Program: Recipients of an award under this program are also required to comply fully with the DBE Program, which is a legislatively mandated DOT program that applies to Federal-aid highway dollars expended on federally-assisted contracts issued by DOT recipients in order to ensure nondiscrimination in the award and administration of DOT-assisted contracts, help remove barriers to the participation of DBEs in DOT-assisted contracts, and assist in the development of firms that can compete successfully in the marketplace outside of the DBE Program. The DBE Program was most recently reauthorized by the Moving Ahead for Progress in the 21st Century Act (P.L. 112-141).

Compliance with 23 CFR Part 680: Recipients of an award under this program are also required to comply fully with applicable sections of the National Electric Vehicle Infrastructure Standards and Requirements (23 CFR Part 680), which has certain requirements for EV charging infrastructure, including installation, operation, and maintenance requirements, interoperability and connectivity standards, minimum uptime requirements, data submission requirements, as well as certain data fields that must be made available, free of charge, to third-party software developers, via application programming interface.64 This regulation also has certain 64 EV Charging Minimum Standards Rule as Submitted to Federal Register for Publication (Unofficial) (dot.gov) Attachment 1

64 requirements for the workforce installing, maintaining, and operating EV chargers has appropriate licenses, certifications, and training to ensure that the installation and maintenance of EV chargers is performed safely by a qualified and increasingly diverse workforce of licensed technicians and other laborers.65 Installation, maintenance and operations of infrastructure for other fuel types is encouraged to follow a similar approach and utilize a skilled workforce with appropriate licenses, certifications, and training.

3. Reporting
i. Progress Reporting on Grant Activities
Each applicant selected for CFI Program Grant funding must submit quarterly progress reports and Federal Financial Reports (SF-425) to monitor project progress and ensure accountability and financial transparency in the CFI Program grant process. Each applicant selected for CFI Program Grant funding will also be subject to applicable reporting and data submission requirements in 23 CFR 680.112(a)-(c) and 23 CFR 680.116(c). ii. Reporting of Matters Related to Recipient Integrity and Performance If the total value of a selected applicant’s currently active grants, cooperative agreements, and procurement contracts from all Federal awarding Agencies exceeds $10 million for any period of time during the period of performance of this Federal award, then the applicant during that period of time must maintain the currency of information reported to the SAM that is made available in the designated integrity and performance system (currently FAPIIS) about civil, criminal, or administrative proceedings described in paragraph 2 of this award term and condition. This is a statutory requirement under section 872 of Pub. L. No. 110-417, as amended (41 U.S.C. § 2313). As required by section 3010 of Pub. L. No. 111-212, all information posted 65 23 CFR 680.106(j) Attachment 1

65 in the designated integrity and performance system on or after April 15, 2011, except past performance reviews required for Federal procurement contracts, will be publicly available. iii. Other
FHWA reserves the right to request additional information, if deemed needed, to better understand the status of the project. The successful applicant will provide additional financial reporting beyond the semi-annual reporting, if such statements are necessary to address FHWA’s Stewardship and Oversight responsibility of the funds. The successful applicant also agrees to allow periodic project inspections and FHWA will provide notice for such inspections.

G. Federal Awarding Agency Contacts
For questions concerning this NOFO and the CFI Program, please Email [email protected].

A TDD is available for individuals who are deaf or hard of hearing at (202) 366-3993.

Office hours are from 7:30 a.m. to 4:00 p.m., Eastern Time, Monday through Friday, except Federal holidays.

Attachment 1

66 H. Other Information

1. Protection of Confidential Business Information
All information submitted as part of or in support of any application shall use publicly available data or data that can be made public and methodologies that are accepted by industry practice and standards, to the extent possible. If the applicant submits information that the applicant considers to be a trade secret or confidential commercial or financial information, the applicant must provide that information in a separate document, which the applicant may crossreference from the application narrative or other portions of the application. For the separate document containing confidential information, the applicant must do the following: (1) state on the cover of that document that it ‘‘Contains Confidential Business Information (CBI)’’; (2) mark each page that contains confidential information with ‘‘CBI’’; (3) highlight or otherwise denote the confidential content on each page; and (4) at the end of the document, explain how disclosure of the confidential information would cause substantial competitive harm. DOT will protect confidential information complying with these requirements to the extent required under applicable law. If FHWA receives a Freedom of Information Act (FOIA) request for the information that the applicant has marked in accordance with this section, FHWA will follow the procedures described in its FOIA regulations at 49 CFR 7.29. Only information that is in the separate document, marked in accordance with this section, and ultimately determined to be confidential under § 7.29 will be exempt from disclosure under FOIA.

Attachment 1

67 2. Publication/Sharing of Application Information
Following the completion of the selection process and announcement of awards, FHWA may publish a list of all applications received along with the names of the applicant organizations and funding amounts requested. Except for the information properly marked as described in Section H., FHWA may make application narratives publicly available or share application information within DOT or with other Federal Agencies if FHWA determines that sharing is relevant to the respective program’s objectives.

3. DOT Feedback on Applications
Feedback by FHWA is available as a courtesy to applicants not selected for award to receive information about the evaluation of their application.

Attachment 1

1 Reso No. (CM)
Meeting Date: 061323 SWZ ______ RM ______ PWU ______
RESOLUTION NO. (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE AUTHORIZING AND DIRECTING THE CITY MANAGER
ON BEHALF OF THE CITY OF WATSONVILLE TO SUBMIT AS A COAPPLICANT WITH THE ASSOCIATION OF MONTEREY BAY AREA

GOVERNMENTS (AMBAG) A GRANT APPLICATION TO THE FEDERAL

HIGHWAYS ADMINISTRATION CHARGING AND FUELING

INFRASTRUCTURE DISCRETIONARY GRANT COMMUNITY
PROGRAM IN THE AMOUNT OF $15 MILLION OF WHICH THE CITY
WILL BE ELIGIBLE TO RECEIVE APPROXIMATELY $1.2 MILLION FOR

THE MONTEREY BAY REGION EQUITABLE EV CHARGING PROJECT
WHEREAS, The City of Watsonville adopted a climate action plan in 2021 which identifies transportation has the largest source of emissions; and WHEREAS, The City of Watsonville climate action plan identifies a number of transportation electrification strategies designed to reduce GHG emissions to meet the GHG emissions goals of 80 percent below 1990 levels by 2030; and WHEREAS, since 2021, the Monterey Bay Regional Climate Project Working Group has collaborated among groups and organizations in the Monterey Bay Area region, including Santa Cruz, San Benito, and Monterey Counties to develop, prioritize, secure funding for, and effectively and equitably advocate for and implement regionally beneficial climate mitigation and adaptation projects and programs; and WHEREAS, the City of Watsonville is a founding member Monterey Bay Regional Climate Project Working Group; and
WHEREAS, the Association of Monterey Bay Area Governments, and the Monterey Bay Regional Climate Project Working Group have been working to identify funding opportunities where a regional collaborative approach would be most competitive; and
WHEREAS, the Association of Monterey Bay Area Governments is the lead applicant and collaborating with public agencies and non-profit partners on a grant

2 Reso No. (CM)
Meeting Date: 061323
application to be made to the Federal Highways Administration Charging and Fueling Infrastructure Discretionary Grant Community Program for the Monterey Bay region Equitable EV Charging Project.

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

1. This action 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.

2. That the Council hereby authorizes and directs City staff to work with AMBAG staff to submit the grant proposal package to the Federal Highways Administration, in the amount of $15 million of which the City of Watsonville is eligible to receive approximately $1.2 million to fund electrical vehicle charging infrastructure.

3. That the Council hereby authorizes the City Manager of the City of Watsonville as co-applicant with AMBAG, to apply for, accept, and execute in the name of the City of Watsonville all necessary applications, contracts and agreements and amendments thereto to implement and carry out the scope of work approved through approval of the grant application.

4. That the City Manager of the City of Watsonville is hereby authorized and directed, if said grant is awarded, to appropriate approximately $1.2 to the Special Grants Fund [0260].
****************************************

6/8/2023 1:23:57 PM
C:\Program Files\eSCRIBE\TEMP\13235443775\13235443775,,,Report - Measure D and SB1 Expenditure Plans FY23-24.docx Agenda Report
MEETING DATE: Tuesday, June 13, 2023
TO: City Council
FROM: INTERIM PUBLIC WORKS & UTILITIES DIRECTOR VIDES

ASST PUBLIC WORKS & UTILITIES DIRECTOR/CITY ENGINEER
FONTES
THROUGH: CITY MANAGER MENDEZ
SUBJECT: APPROVAL OF PROJECT LISTS FOR TRANSPORTATION
PROJECTS FUNDED BY MEASURE D AND SB 1
RECOMMENDED ACTION:

Staff recommends that the City Council adopt resolutions approving project lists for transportation projects to be funded by:

1. Measure D in Fiscal Years 23/24 through 27/28; and

2. Senate Bill 1 (SB1) in Fiscal Year 23/24
DISCUSSION:

The City’s proposed Capital Improvement Program (CIP) for FY23/24 includes several transportation projects which are funded from several different sources. Two sources are the Measure D and SB 1 programs. Each of these programs requires that the City develop and approve an annual project list and expenditure plan. The projects included in these plans are part of the larger CIP which Council will be approving this month.

MEASURE D
In 2016, Santa Cruz County voters approved Measure D, a one-half-cent sales tax that funds transportation projects for 30 years. The Measure allocates a portion of the funding to individual agencies with the City’s projected share for FY23/24 totaling $1,184,000. The City will spend these funds and others that have rolled over from previous years.

Requirements of the funding include the development of a five-year expenditure plan that is presented at a public hearing and approved by the City Council. The Plan is entitled “Measure D: 5-Year Program of Projects (FY23/24-27/28)” and is included with the resolution. The Plan and Council Resolution of approval are to be submitted to the Santa Cruz County Regional Transportation Commission by June 30th of each year. Attached to this staff report is a map showing the projects receiving Measure D and SB 1 funding in FY23/24.

6/8/2023 1:23:57 PM
C:\Program Files\eSCRIBE\TEMP\13235443775\13235443775,,,Report - Measure D and SB1 Expenditure Plans FY23-24.docx In FY23/24, the Plan proposes to allocate Measure D for the following projects:
• Improve bicycle and pedestrian safety through annual funding for activities and improvements that involve citywide bicycle facilities, maintenance, and improvement of trails, and supporting pedestrian & traffic safety;
• Prepare plans and environmental documents to upgrade existing bicycle and pedestrian facilities involving curb ramp replacement citywide, Harkins Slough Road pedestrian bridge, Lake Avenue sidewalks, Lee Road Trail, Pennsylvania Drive Trail and the Safe Routes to Downtown Watsonville Project which includes the downtown area and adjacent to eight schools within the southeast part of the City;
• Plan and implement street restriping at various locations within the City and safety improvements on Green Valley Road;
• Prepare plans and environmental documents for Citywide dig-out repairs and roadway projects on Bridge Street, Industrial Road and Pennsylvania Drive; • Reconstruction of Freedom Boulevard between Alta Vista Avenue and Green Valley Road and of Green Valley Road between Freedom Boulevard and the City limits.

SB 1
In 2017, Governor Brown signed SB 1, providing additional funding for road maintenance, rehabilitation, and safety projects. The funding is apportioned by formula to cities and counties.

Watsonville’s projected annual share for FY23/24 is $1,279,915. The City will use these funds and others that have rolled over from previous years for projects to be constructed in this and future fiscal years.

To be eligible for SB 1 funding in FY23/24, the City must provide the California Transportation Commission (CTC) with a list of projects that have been approved by the City Council. The list is due to the CTC by July 1, 2023. The list is included with the resolution. Attached to the staff report is a map showing the location of the proposed SB 1 and Measure D funded projects.

In FY23/24, the City will allocate SB 1 funding for:
• Citywide restriping at various locations within the City; • Green Valley Road safety improvements including striping, signage, and traffic calming; • Maintain roads by providing a three-layer coating at various locations within the City; • Road repair of potholes and pavement damage at various locations within the City. • SB1 funds allocated previously will be used for:
• Freedom Boulevard Improvements from Alta Vista Avenue to Green Valley Road; • Green Valley Road reconstruction from Carry Ave to City Limits; STRATEGIC PLAN:

The proposed expenditure plans are consistent with the following Strategic Plan Goals:
3-Infrastructure & Environment
6-Public Safety
FINANCIAL IMPACT:

Measure D and SB 1 will provide funding for transportation projects and help the City qualify for additional grant funds by serving as a local match.

6/8/2023 1:23:57 PM
C:\Program Files\eSCRIBE\TEMP\13235443775\13235443775,,,Report - Measure D and SB1 Expenditure Plans FY23-24.docx ALTERNATIVE ACTION:

No reasonable alternatives are known currently.

ATTACHMENTS AND/OR REFERENCES (If any):
1) Watsonville Measure D & SB 1 FY23/24 Projects Map

Attachment 1

Green Valley Rd
Reconstruction
Harkins Slough Rd
Pedestrian Bridge Design Lee Rd Trail Phase I Safe Routes to Downtown Watsonville Design Bridge St Reconstruction Watsonville Measure D & SB1 FY23/24 Projects Map
Freedom Blvd Reconstruction
Pennsylvania Dr
Reconstruction
Design
Industrial Rd
Repair Design
Citywide Projects
Curb Ramp Program
Bicycle Facilities
Maintain & Improve Trails
Pedestrian & Traffic Safety
Maintain Roads
Citywide Digouts
Citywide Restriping
Road Repair
Maintain Roads
Lake Ave
Undergrounding
Design Green Valley Rd Safety
Pennsylvania Dr
Trail Repair Design

Reso No. ______ (CM) 1
Meeting Date: 061323 SWZ ______ RM ______ PWU ______
RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE APPROVING THE 2023 MEASURE D 5-YEAR
PROGRAM OF PROJECTS (FY 2023/2024 - FY 2027/2028) FOR THE

CITY OF WATSONVILLE FUNDED BY MEASURE D APPROVED BY
VOTERS ON NOVEMBER 8, 2016
WHEREAS, Santa Cruz County voters approved a one-half cent sales tax (Measure D) on November 8, 2016, to fund transportation projects for the next 30 years; and
WHEREAS, Watsonville City Council adopted Resolution No. 76-17 (CM), approving a Measure D Master Funding Agreement between the Santa Cruz Regional Transportation Commission and the City of Watsonville for receipt of Measure D funding for City transportation projects; and
WHEREAS, said Master Funding Agreement states that for the City to receive its annual allocation of funding for “Neighborhood Projects”, the Watsonville City Council shall first approve a 5-Year Program of Projects following public comment; and WHEREAS, the City of Watsonville’s projected annual allocations Measure D Neighborhood Projects funds for FY23/24 is $1,184,000.

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 supporting a funding plan 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

Reso No. ______ (CM) 2
Meeting Date: 061323
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.

2. That the City Council hereby approves the 2023 Measure D 5-Year Program of Projects (FY23/24 – FY27/28) for the City of Watsonville attached hereto and incorporated herein as Exhibit “A.”
************************************

Measure D: 5-Year Program of Projects (FY23/24-27/28)
Agency: City of Watsonville
Expenditure Plan Category: Neighborhood Projects
Approval Date: Tuesday, June 13, 2023
Public Hearing Date: Tuesday, June 13, 2023 Prior FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 Estimated Annual Measure D Allocations * $ 5,084,326 $1,184,000 $1,214,000 $1,251,000 $1,289,000 $1,328,000 Est. Major
Project Name/location
City
Project No. Description (include project purpose and complete streets components if applicable) Total
Measure D
Prior Years
Expenditure FY23/24 FY24/25 FY25/26 FY26/27 FY27/28
Total Cost
Estimate Other fund sources
Construction
start date
Project? *
(yes/no)
Citywide Curb Ramp Program
14314
Design and provide construction oversight of replacement and /or installation of curb ramps street crossings to comply with current disability act standards. $50,000 $0 $50,000 $0 $0 $0 $0 $225,000 TDA - $175,000 FY23/24 No Downtown Revitalization
14319
Provide complete streets improvements including pedestrian crossings & curb ramps. Includes design, environmental documentation and construction. $98,400 $98,400 $0 $0 $0 $0 $0 $0 None Deferred No Citywide Bicycle Facilities (Various
Locations) 14320
Provide signage and traffic markings along bicycle corridors and provide educational programs. $684,173 $184,173 $100,000 $100,000 $100,000 $100,000 $100,000 Annual None Annual No Maintain & Improve Trails (Various
locations) 14321
Develop, maintain and enhance existing pedestrian and bicycle trails $698,385 $198,385 $100,000 $100,000 $100,000 $100,000 $100,000 Annual None Annual No Pedestrian & Traffic Safety (Various
Locations) 14322
Install or upgrade safety and traffic calming measures such as striping, markers, signage, signals, lighting, flashing beacons, curb extensions and speed humps and provide educational programs. $1,015,007 $515,007 $100,000 $100,000 $100,000 $100,000 $100,000 Annual None Annual No Maintain Roads (Citywide, All Districts)
14405
Place three-layer coating system on road surface. Design FY22/23. Construction FY23/24. $128,767 $128,767 $0 $0 $0 $0 $0 $1,300,000
RSTPX - $1,129,000
SB1 - $171,000 FY23/24 Yes
Lee Rd Trail (Lee Rd from RR xing to
Harkins Slough Rd and Harkins Slough Rd
from Lee Rd to Pajaro Valley High School
driveway) 14522
Prepare design, environmental documents for pedestrian and bicycle trail $481,891 $481,891 $0 $0 $0 $0 $0 $0 None Complete No
Road Maintenance 14406 Citywide Road Maintenance Program $440 $440 $0 $0 $0 $0 $0 $440 None Annual No Lincoln Street Safety Improvements 14507 Install pedestrian & bicycle improvements $159,559 $159,559 $0 $0 $0 $0 $0 $792,559 ATP - $633,000 Complete Yes Lee Rd Trail 14522 Design & permitting $664,280 $564,280 $100,000 $0 $0 $0 $0 $664,280 None FY23/24 No Green Valley Rd Reconstruction from
Freedom Blvd to City Limits
14523
Reconstruct roadway, install median island, remove and replace non-compliant driveways & curb ramps, restripe roadway & provide bike lanes where none exist. $1,050,000 $12,394 $1,037,606 $0 $0 $0 $0 $3,179,123
ARPA - $1,000,000
Gas Tax - $47,810
SB1 - $1,081,313 FY23/24 Yes
Lake Ave Sidewalk improvements from
Rodriguez St to Union St/Brennan St
14731
Prepare design for repair/replace damaged sidewalk. Done in conjunction with PG&E Utility Undergrounding project.
$85,371 $35,371 $50,000 $0 $0 $0 $0 $289,286
Impact Fees - $127,946
UG Utilities Fee -
$48,945 TBD No
Bridge St Reconstruction from Blackburn St
to Beck St 14816
Repair and resurface damaged roadway, replace damaged sidewalks, restripe roadway. Includes design, environmental documentation and construction. $155,680 $55,680 $100,000 $0 $0 $0 $0 $1,155,680 ARPA - $1,000,000 FY23/24 Yes Pennsylvania Dr Reconstruction from
Clifford St to Winding Way 14817
Reconstruct roadway, bike lanes and pedestrian facilities, restripe roadway. Includes design, environmental documentation and construction. $108,579 $58,579 $50,000 $0 $0 $0 $0 $1,908,579 SB1 - $1,800,000 FY24/25 Yes Freedom Blvd Improvements from Alta
Vista Ave to Green Valley Rd
14838
Reconstruct roadway, remove & replace non-ADA compliant driveways & curb ramps, install high visibility crosswalks, upgrade existing bus shelter, install new traffic signal at Sydney Ave. $580,000 $1,600 $578,400 $0 $0 $0 $0 $5,221,757
ARPA - $2,169,231
SB1 - $500,000
STIP - $1,550,000
Utilities - $152,200
Other - $270,326 FY22/23 Yes
Highway 1/Harkins Slough Rd Pedestrian
Bridge & Safe Routes to School project
14859
Construct pedestrian bridge over SR 1, install sidewalk and reconfigure bike lanes on Harkins Slough Rd. Modify Harkins Slough Rd/Green Valley Rd/Silver Leaf Dr intersection to improve bicycle and pedestrian access. At Pajaro Valley High School and at feeder schools and various locations within the high school attendance area install high visibility crosswalks, curb extensions, upgrade curb ramps and improve bicycle facilities and provide pedestrian and bicycle safety training. $129,733 $29,733 $100,000 $0 $0 $0 $0 $15,952,733
ATP - $11,700,000
Developer Fees -
$2,629,000
STIP - $900,000 FY23/24 Yes
Lee Rd Trail Phase 1 from Pajaro Valley
High School driveway to Land Trust
driveway 14860
Construct sidewalk and bikelanes of Harkins Slough Rd and pedestrian and bicycle path on Lee Rd. $130,435 $30,435 $100,000 $0 $0 $0 $1,830,435
Federal Earmark -
$1,000,000
Land Trust $700,000 FY23/24 Yes
Rail Trail Segment 18 Phase 3 from
Watsonville Slough Trail trailhead to
Walker St. 14861
Design & ronstruct pedestrian and bicycle trail within railroad corridor $1,000,368 $368 $1,000,000 $3,200,368 RTC - $2,200,000 FY23/24 Yes Citywide Digout Project NA Annual pothole repair program $1,000,000 $0 $200,000 $200,000 $200,000 $200,000 $200,000 $1,000,000 Annual FY23/24 Yes Citywide Restriping NA Restripe roadways at various locations within City $50,000 $0 $50,000 $400,000 SB1 - $350,000 FY23/24 No Freedom Blvd digourts from Green Valley
Rd to City Limits NA
Provide digouts and chip seal
$270,000 $0 $270,000 $1,770,000 SB1 - $1,500,000 FY24/25 Yes Green Valley Rd Safety Project
NA
Provide safety improvements on Green Valley Rd, including striping, signage and traffic calming $50,000 $0 $50,000 $300,000 SB1 - $250,000 FY23/24 No
Industrial Rd Repair from West Beach St to
Riverside Dr NA
Construct full rehabilitation of existing roadway
$300,000 $0 $300,000 $2,300,000 SB1 - $2,000,000 FY24/25 Yes Pennsylvania Dr Trail Repair from Clifford
St to Winding Way NA
Reconstruct pedestrian pathway to address failing trail surface. Includes design and environmental documents. $1,150,000 $0 $150,000 $1,000,000 $2,450,000 TBD - $1,300,000 FY25/26 Yes Safe Routes to Downtown Watsonville
NA
Design bicycle and pedestian improvements within downtown area and at eight schools within southeast area of City
$300,000 $0 $244,000 $56,000 $8,687,000
ATP - $6,948,000
SB1 - $162,000
STIP - $896,000
RSTPX - $352,000
Private - $29,000 FY26/27 Yes
Adminstrative Costs NA Cost of annaul audit. $51,160 $26,160 $5,000 $5,000 $5,000 $5,000 $5,000 $45,000 None Annual No Estimated Annual Measure D Expenditures $10,342,228 $2,581,222 $3,465,006 $831,000 $1,505,000 $1,505,000 $505,000 * Estimated Annual Allocation from 04/06/23 RTC meeting, Item 24 Fiscal Year (FY) 2023-24 Proposed Budget, Attachment 4 Measure D Cash Flow Analysis, Page 24-115 Amount of Measure D Funds Programmed

REVISED
Exhibit A

I I I I

RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE APPROVING THE CITY OF WATSONVILLE – SB1
PROJECT LIST FY 23/24 TO BE FUNDED BY SENATE BILL 1 FUNDS WHEREAS, Senate Bill 1 (SB1) also known as the Road Repair and Accountability Act of 2017, was signed into law on April 28, 2017; and WHEREAS, SB1 provides funding for road maintenance, rehabilitation, and safety projects which is split between the state, cities and counties; and WHEREAS, eligibility for SB1 funding includes City Council approval of list of possible transportation projects provided to the California Transportation Commission (CTC) before July 1, 2023; and
WHEREAS, the State estimates annual funding available to the City of Watsonville through SB1 to be approximately $1,279,915 for FY23/24.

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 supporting a funding plan 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.

2. That the City Council hereby approves the 2023 City of Watsonville – SB1 Project List FY23/24 for the City of Watsonville which is attached hereto and incorporated herein as Exhibit “A.”
************************************

City of Watsonville - SB1 Project List
FY23/24
Name/Road/Limits Description SB1 Share
of Project
Cost
Completion Useful
Life
Citywide Restriping Restripe roadways at various locations within City 350,000 FY23/24 1-5 Yr
Freedom Blvd Improvements from Alta Vista Ave
to Green Valley Rd
Reconstruct roadway, remove & replace non-ADA compliant driveways & curb ramps, install high visibility crosswalks, upgrade existing bus shelter, install new traffic signal at Sydney Ave. 500,000 FY23/24 20 Yr
Green Valley Rd Reconstruction from Freedom
Blvd to City Limits
Reconstruct roadway, install median island, remove and replace non-compliant driveways & curb ramps, restripe roadway & provide bike lanes where none exist. 1,081,313 FY23/24 20 Yr
Green Valley Rd Safety Provide safety improvements on Green Valley Rd, including striping, signage and traffic calming 50,000 FY23/24 1-5 Yr
Maintain Roads Perform road maintenance including overlay or placement of three-layer coating system on road surface to extend useful life of roadway
170,482 FY23/24 5-7 Yr
Road Repair Road repair work including repair of potholes and pavement damage at various locations within the City. 250,000 FY23/24 5-10 Yr
Exhibit A

Measure D & SB 1
Project Lists
Public Works & Utilities Department

CIP & Transportation Funding
FY23/24 allotment:
• Measure D - $1,184,000
• SB 1 - $1,279,915
Transportation funding in proposed CIP includes:
• Measure D
• SB 1

Bicycle & Pedestrians
Pedestrian & Traffic Safety
Citywide Bicycle
Facilities
Maintain & Improve Trails

Active Transportation
Design FY23/24
Construct FY23/24
Cost = $15.2M
Design FY23/24 – FY24/25
Construct FY26/27
Cost = $8.7M

Curb Ramps & Sidewalks
Lake Ave Sidewalks
Design FY23/24
Construct - TBD
Part of PG&E Utility Undergrounding Project
Cost - $50,000
• Citywide Curb
Ramp
Replacement
Citywide Curb Ramp Replacement
Design & Construct FY23/24
Cost - $50,000

Trails
• Pennsylvania Drive
Phase 1 Limits
Lee Road Phase 1
Design & Construct
FY23/24
Construction Cost = $1.7M
Pennsylvania Dr Trail
Design FY23/24 – 24/25
Construct FY25/26
Construction Cost = $2.3M

Striping & Safety Projects
Citywide Restriping
Design & Construct FY23/24
Cost = $400,000
Green Valley Rd Safety
Design & Construct FY23/24
Cost = $300,000

Roads
Bridge St from Blackburn St to Beck St
Design FY23/24
Construct FY23/24
Construction Cost = $1.5M
2023 Citywide Pavement Maintenance
Construct FY23/24
Cost = $1.3M

Roads
Pennsylvania Dr from
Clifford St to Winding Wy
Design FY23/24-24/25
Construct FY25/26
Cost = $2.45M
Industrial Rd from West
Beach St to Riverside Dr
Design FY23/24
Construct FY24/25
Cost = $2.3M

Roads
Freedom Blvd from Alta Vista St to
Green Valley Rd
Construct FY22/23 – 23/24
Cost = $5.2M
Green Valley Rd from Freedom Blvd to City Limits
FY23/24 Design
FY24/25 Construct
Construction Cost = $3.2M

Citywide Road Maintenance
& Repair
Citywide Road Repair
Construct FY23/24
Cost = $250,000 Citywide Road Maintenance
Design & Construct FY23/24
Construction Cost = $1.3M

RECOMMENDATION
Approve Measure D & SB 1 project lists

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C:\Program Files\eSCRIBE\TEMP\13281798078\13281798078,,,Report - 2023-2025 Strategic Plan.docxP:\FORMS\Agenda Report Template.doc
Agenda Report
MEETING DATE: Tuesday, June 13, 2023
TO: City Council
FROM: ASSISTANT CITY MANAGER VIDES
THROUGH: CITY MANAGER MENDEZ
SUBJECT: 2023-2025 WATSONVILLE STRATEGIC PLAN
RECOMMENDED ACTION:

Staff recommends that the City Council approve and adopt the Strategic Plan for FY 2023- 2025.

BACKGROUND:

Every two years, the City Council sets in place a Strategic Plan that aligns the work priorities to the budget and sets forth a vision and work plan for the City and prioritizes the services to be provided for the community.

DISCUSSION:

Since 1994, the Watsonville City Council has developed a Strategic Plan to reinforce long-term planning for both operating and capital projects. The Council Strategic Plan is a roadmap for the future that:
 Articulates the Council’s priorities and guides its policy decisions.  Enables staff to develop feasible, measurable, and actionable strategies to address the Council’s priorities, implement policies, and allocate resources effectively.  Focuses the City’s efforts to engage community members and agency partners in achieving the City’s Mission.
 Enables the City to prioritize time and resources in alignment with the Council’s priorities.
 Ensures accountability and transparency in furthering effective policies and City services that the community needs.

STRATEGIC PLAN:

On April 15, 2023, City Council and Department Heads convened for a Strategic Planning Workshop to discuss and identify the priorities for the 2023-2025 Strategic Plan.

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C:\Program Files\eSCRIBE\TEMP\13281798078\13281798078,,,Report - 2023-2025 Strategic Plan.docxP:\FORMS\Agenda Report Template.doc
The workshop was open to the public and facilitated by an outside consultant who helped the City Council review progress made through the previous strategic plan, set the forward-looking vision for the city, and outline a common vision for the future.

During previous years, the Council identified 7 strategic priorities to advance the city and provide services that improve the quality of life of Watsonville residents. The Council evaluated these existing priorities and decided that these strategic priorities continue to serve as strong pillars of the work that needs to be accomplished in the next two years.

The seven priorities ratified during the Council Workshop were:
 Priority 1: Housing
 Priority 2: Fiscal Health
 Priority 3: Infrastructure & Environment
 Priority 4: Economic Development
 Priority 5: Community Engagement & Well-Being
 Priority 6: Public Safety
 Priority 7: Efficient and High-Performing Government
The Council and staff worked diligently to pare down an extensive list of important issues and created an extensive list of projects, initiatives, services, and programs that will be part of the work plan for the next two fiscal years.

The Strategic Plan will be a living document that features a comprehensive framework that can be adjusted based on the community's current needs. The Council will receive a progress report on work accomplished during the midyear and the annual budget report. At that time, the Council could consider adding, deleting, or modifying the goals and strategies set forth in this document to address emerging priorities or in response to community needs.

The draft of the Strategic Plan is attached for review and final adoption by the Council.

NEXT STEPS:

As the Council adopts this Strategic Plan to guide the City’s work for FY 2023-2025, it is important to note the next steps to evaluate and assess progress toward meeting these goals.

The Strategic Plan is used to guide decision-making at all levels of the organization. It allows the City to focus on core functions and ensure that every department is working together towards common goals. To validate that progress was made toward that end, the City Manager’s Office will prepare two Strategic Plan Progress Reports per year. The report will track progress by describing key accomplishments for each identified priority area and the investment that has been made in support of that priority. This reporting is a critical tool for communicating successes and challenges to staff and the community at large.

FINANCIAL IMPACT:

There is no financial impact associated with the approval of the Strategic Plan 2023-2025. Any individual programs and projects requiring budget allocations will be included in the final proposed budget to be considered and approved by the City Council at the June 27, 2023 meeting.

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C:\Program Files\eSCRIBE\TEMP\13281798078\13281798078,,,Report - 2023-2025 Strategic Plan.docxP:\FORMS\Agenda Report Template.doc
ALTERNATIVE ACTION:

The City Council may choose to direct staff to continue current services without the implementation of a Strategic Plan or may choose to edit the draft plan as necessary.

ATTACHMENTS AND/OR REFERENCES (If any):

None.

Reso No. (CM)
Meeting Date: 061323 SWZ ______ RM ______
1 RESOLUTION NO. __________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE APPROVING THE CITY OF WATSONVILLE STRATEGIC PLAN 2023-2025

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

1. Adopting a Resolution approving the City of Watsonville Strategic Plan 2023-2025 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 reasonable foreseeable indirect physical change in the environment.

2. That the City of Watsonville Strategic Plan 2023-2025, a copy of which is attached hereto and incorporated herein by this reference, is hereby approved. ********************************

REV 6/08
2023-2025
Watsonville.gov Page 366 of 705
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Watsonville City Council 2023
Eduardo Montesino
Mayor
District 1
Maria Orozco
District 3
Casey K. Clark
District 5
Kristal Salcido
District 4
Jimmy Dutra
District 6
Ari Parker
District 7
Vanessa Quiroz-Carter
Mayor Pro-Tempore
District 2
“Working with our community to create positive
impact through service with heart”
Team work • Integrity & Honesty • Service • Respect
Our Mission
Our Values

Every two years, the City Council adopts a Strategic Plan that aligns the Council’s priorities and community needs with the budget and sets forth a forward-looking vision for the City organization and the services we offer to the community.

The 2023 - 2025 Strategic Plan includes seven long-range priorities. Under each Strategic Priority, the Council identified several strategies and actions to support meeting the measurable outcomes set forth under each priority. • Articulates the Council’s priorities and guides
its policy decisions.
• Enables staff to develop feasible, measurable,
and actionable strategies to address the
Council’s priorities, implement policies, and
allocate resources effectively.
• Focuses the City’s efforts to engage community
members and agency partners in achieving the
City’s mission.
• Enables the City to prioritize time & resources
in alignment with the Council’s priorities.
• Ensures accountability and transparency in
furthering effective policies and City services that
meet community needs.

Strategic Plan: 2023-2025 Priorities
A Road Map for the Future
Economic Development
Efficient & Well-Performing
Government
Housing
Engagement & Well-being
Public Safety
Infrastructure & Environment
-
Fiscal Health
.
.

Explore opportunities and policies that will allow for mixed-use development to make use of the limited space available within city limits.

Encourage the development of sustainable, inclusive, and affordable homes for all residents, including moderate housing, workforce housing, and downsizing options.

Explore opportunities to enhance and market ADUs to Watsonville residents.

City departments
leading the work
to support:

Strategies

1.1 - Explore Mixed Use Development

1.2 - Increase Housing Options for All

1.3 - Explore Opportunities for ADUs
Priority 1
Proactively remove barriers to accessing
stable, quality and affordable housing
and strive to create new opportunities
to add housing to meet our community’s
current and future housing needs.

Housing
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1.2 Increase Housing Options for All

1.3 Explore Opportunities for ADU’s
Explore new ways to incentivize mixed-used
developments *
Incentivize “Housing for all” developments *
Market and enhance ADUs *
Explore opportunities for businesses to provide
housing to employees
Explore opportunities for housing developments
near rail and public transportation *
Adopt the Downtown Specific Plan *
Explore ADU Assistance Program
Explore ways of assisting new homeowners
through education and financing *
Work Plan
Supporting the Strategic plan
2023 - 2025
The list below reflects the work that various City Departments will complete and ideas to be explored during the 2023-2025 Fiscal Years to support the advancement of the Council’s Strategic Priorities. Additional work and projects that emerge as part of continued reassessment of community needs could be added as the Council reviews progress of their Strategic Plan or as new operational needs arise.

Proactively remove barriers to accessing stable,
quality and affordable housing and strive to
create new opportunities to add housing to meet
our community’s current and future housing needs.

How do we accomplish this goal
(What is needed or work you will need to do to get there?) 1 - Housing
OngoingEngagementPolicy Project ProgramPlanning Investment Communication Other

1.1 - Explore Mixed Use Development
Completed Ongoing
In Progress Delayed
* Voted as Council Priorities
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Additional - (Future work not identified as of yet)
Prepare and adopt the 6th cycle Housing Element
Community engagement and outreach to support
2050 General Plan Update
Require charging stations in new developments
Enhance Legislative Engagement including County,
LAFCO, Regional, State, and Federal *
Other
1 - Housing
OngoingEngagementPolicy Project ProgramPlanning Investment Communication Other 0 0
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Explore the possibility of amending the City Charter to allow Council members to receive health benefits and a salary. This will appeal and attract other community members who wish to get involved with local government and run for office.

Maintain a balanced budget with healthy fund balances while aligning with the Strategic Plan Priorities.

Develop additional policies to help maintain and grow adequate city reserves.

Leverage local tax measure funds and explore the possibility of bonding to finance Capital Improvement Projects.

City departments
leading the work
to support:

Strategies

2.1 - Increase Community Involvement in Local Government

2.2 - Maintain a Balanced Budget

2.3 - Leverage Local Tax Measures
Priority2
The City will continue to enhance fiscal
sustainability of the City, through prudent
financial planning and decision-making
to ensure the organization can best
serve the residents and businesses
of Watsonville today and in the future.

Fiscal
Health
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2.2 - Maintain a Balanced Budget

2.3 - Leverage Local Tax Measures
Evaluate tools that could increase community
members involvement with local government
and to run for office *
Prepare a comprehensive, balanced budget book
which includes long term budget plan and strategic
priorities *
Develop a spending plan for Measure R
revenues based on community priorities *
Prepare a Comprehensive Annual Financial Report
including external audit review
Implement policies to have a healthy fund balance
and fiscal reserve policies in place to help us get
through future economical uncertainties
Leverage bond financing to support major
infrastructure projects to be built in our community
Prepare an Annual Mid-Year Report and present to
City Council with appropriation corrections
Increase Community Involvement in Local Government
Work Plan
Supporting the Strategic plan
2023 - 2025
The list below reflects the work that various City Departments will complete and ideas to be explored during the 2023-2025 Fiscal Years to support the advancement of the Council’s Strategic Priorities. Additional work and projects that emerge as part of continued reassessment of community needs could be added as the Council reviews progress of their Strategic Plan or as new operational needs arise.

The City will continue to enhance fiscal sustainability of the City, through prudent financial planning and decision-making to ensure the
organization can best serve the residents and
businesses of Watsonville today and in the future.

How do we accomplish this goal
(What is needed or work you will need to do to get there?) 2 - Fiscal Health
OngoingEngagementPolicy Project ProgramPlanning Investment Communication Other

2.1 - Increase Community Involvement
in Local Government
Completed Ongoing
In Progress Delayed
* Voted as Council Priorities
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Additional - (Future work not identified as of yet)
Modernize Financial Services
Deploy improved online customer account access for
payments and service
Hexavalent Chromium Funding and Implementation
Lobby Government officials for additional funds
Expand electronic payment methods by installing
kiosks at payment office.

Continued funding for capital improvement of
facilities. *
Manage our Retirement Liability
Maintain fleet and replacement program to ensure
funding is available for transportation needs
Other
Other - Collection
Other - Community Investments
2 - Fiscal Health
EngagementPolicy Project ProgramPlanning Investment Communication Other Leverage economic development as a driver to
improve fiscal health of the City *
Ensure all service connections are metered
Federal Levee Project
Ongoing
0 0
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Address potholes, striping, road maintenance, and repairs on streets throughout the city. Implement new traffic safety projects that make Watsonville more accessible to drivers and safer for pedestrians.

Explore opportunities to update and enhance City facilities for the benefit and enjoyment of employees and City residents.

Continue the City’s longstanding and proactive efforts to serve as a regional leader in environmental stewardship.

City departments
leading the work
to support:

Strategies

3.1 - Improve Streets

3.2 - Address City’s Aging Facilities

3.3 - Support Environmental Stewardship
Priority3
The City will work to build and maintain
our infrastructure and preserve the
natural environment through careful
planning, preservation, and maintenance
for residents and future generations.

Special attention will be given to road
maintenance, street lighting and City
facilities.

Infrastructure
& Environment
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3.2 - Address City’s Aging Facilities
Repair potholes throughout the City
Explore better roundabout standards
Update lighting throughout the City
Implement Way finding program
Improve Crosswalks
Improve Striping on City streets
Replace & install 1-2 miles of new water main / year
Repair City sidewalks, curbs, and gutters to reduce
trip and injury hazards
Improve and install bike lanes
Work Plan
Supporting the Strategic plan
2023 - 2025
The list below reflects the work that various City Departments will complete and ideas to be explored during the 2023-2025 Fiscal Years to support the advancement of the Council’s Strategic Priorities. Additional work and projects that emerge as part of continued reassessment of community needs could be added as the Council reviews progress of their Strategic Plan or as new operational needs arise.

The City will work to build and maintain our
infrastructure and preserve the natural environment
through careful planning, preservation, and
maintenance for residents and future generations.

Special attention will be given to road maintenance,
street lighting and City facilities.

How do we accomplish this goal
(What is needed or work you will need to do to get there?) 3 - Infrastructure & EnvironmentOngoing
EngagementPolicy Project ProgramPlanning Investment Communication Other

3.1 - Improve Streets *
Completed Ongoing
In Progress Delayed
* Voted as Council Priorities
0 0
0 0
0 0
0 0
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Improve or when possible, build new City Hall,
Municipal Service Center, Police Department and
Fire stations *
Minimize blight by providing proactive graffiti
abatement response.

Build City Plaza Master Plan
Invest in technology for safety improvements
at City buildings
Provide landscape maintenance and weed
abatement services.

Joint Use Investment at Rolling Hills MS
Youth Center and Senior Center Building
Enhancements
Park and Trail Signage Master Implementation Plan
Expedite development, design, & construction of
wastewater related projects that will maintain,
upgrade and enhance the infrastructure of the
wastewater system in order to meet NPDES permit
requirements and protect the environment
Construction of new Nature Center Building
System-wide Park Assessment Implementation Plan
City Council Chambers Upgrades

3.2 - Address City’s Aging Facilities (Continued)
3 - Infrastructure & Environment
OngoingEngagementPolicy Project ProgramPlanning Investment Communication Other Centralize internal service requests for all
departments.

Perform daily and routine cleaning services for
approximately 220,000 square feet of facilities.

Complete Ramsay Park Renaissance *
0 0
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Continue supporting the implementation and
construction of the levee project
Convey wastewater to the treatment plant in a
reliable and cost-effective manner, meet all
applicable State and Federal regulations, and
protect the environment and public health
Provide technical support and project management
for energy conservation and renewable energy
projects for all City departments.

Continue Food Scraps Program
Increase tree canopy within the City *
Reduce carbon footprint by acquiring zero emission
vehicles and eliminating leaded fuel sales.

Ensure timely homeless encampment litter removal
Expand Fiber Optic Loop Improve levees in and
around the City
Continue to improve City’s cybersecurity program.

Expansion of electrification of City fleet to meet state mandates, explore alternative fuel opportunities,
purse grant funding for Evs.

Implement Urban Forest Master Plan *
Create guidelines to implement underground
utility lines

3.3 - Support Environmental Stewardship
Other
3 - Infrastructure & Environment
OngoingEngagementPolicy Project ProgramPlanning Investment Communication Other Implementation of the Local Hazard Mitigation Plan
(LHMP) and Climate Action and Adaptation Plan
(CAAP)
Provide cost-effective wastewater treatment, protect
Monterey Bay water quality and public health, and
comply with National Pollution Discharge Elimination
System (NPDES) permit requirements
• • • • • Ill
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Building enhancements at the Main Library;
develop the atrium on the 2nd floor to increase
reader seating and outdoor engagement for
fundraising, programming, etc.

Other (Continued)
Additional - (Future work not identified as of yet)
3 - Infrastructure & Environment
OngoingEngagementPolicy Project ProgramPlanning Investment Communication Other Water main replacement at a min of 1 mile a year
Explore options to expand park space
Expand on partnership with PVUSD to expand
parks, green spaces and public spaces for the
community to use and enjoy
0 0
0 0
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Establish an Economic Development Plan that is data-informed and allows the City to attract new businesses. The Economic Plan should include City branding and messaging and promote business growth and connection.

Develop a plan that attracts flagship companies and larger revenue-generating businesses. Adopt the Downtown Specific Plan and support local business growth.

Fiber optics support the digital middle mile for future growth and digital access of residents, businesses, and connected/smart City initiatives. Fiber optics are foundational to increasing data access to small cell sites throughout the city. Small cell sites improve cellular signal in populated areas, which increases data access for all.

City departments
leading the work
to support:

Strategies

4.1 - Establish an Economic Development Plan

4.2 - Work on Business Attraction

4.3 - Expand Fiber Optics
Priority4
Focus on developing a strong and
visible City Brand to help strengthen
and diversify the City’s economy for all.

Support and grow existing businesses,
attract new businesses and industries,
enhance workforce development,
revitalize downtown, and encourage
entrepreneurs to invest and grow locally.

Economic
Development

Work Plan
Supporting the Strategic plan
2023 - 2025
The list below reflects the work that various City Departments will complete and ideas to be explored during the 2023-2025 Fiscal Years to support the advancement of the Council’s Strategic Priorities. Additional work and projects that emerge as part of continued reassessment of community needs could be added as the Council reviews progress of their Strategic Plan or as new operational needs arise.

Focus on developing a strong and visible City Brand
to help strengthen and diversify the City’s economy
for all. Support and grow existing businesses, attract
new businesses and industries, enhance workforce
development, revitalize downtown, and encourage
entrepreneurs to invest and grow locally.

How do we accomplish this goal
(What is needed or work you will need to do to get there?)

4.1 - Establish Economic Development Plan

4.2 - Work on Business Attraction
Hire Consultant to assist with economic
development *
Create and execute an economic development
campaign
Develop plan that attracts flagship companies and
larger revenue generating businesses *
Follow-on to the 2019 Airport Economic Benefit
Analysis; conduct a 2024 analysis
Develop city branding for helping market
businesses *
Engage Chamber of Commerce and partners to
strengthen workforce development *
Adopt the Downtown Specific Plan
Strategy to support local business growth
4 - Economic Development
OngoingEngagementPolicy Project ProgramPlanning Investment Communication Other Completed Ongoing
In Progress Delayed
* Voted as Council Priorities
0 0
0 0
0 0
0 0
• •
• • • •
•
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Other
Additional - (Future work not identified as of yet)
Develop and adopt a “Dig Once”Policy
Adopt a small Cell site guidelines
Work with educational partners to develop
strategies that support education and
workforce training (PVUSD, SUEÑOS, etc)
Opportunity to Work Program
Develop a Public Art Master Plan

4.3 - Expand Fiber Optics
4 - Economic Development
OngoingEngagementPolicy Project ProgramPlanning Investment Communication Other Complete Fiber Optic Loop 0
0 0
0 0
0 0
0 0
0 0
0 0
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Create a sense of community and belonging for residents by working with the community and stakeholders to continue to provide events that promote art, culture, health, and economic opportunities.

Provide inclusive opportunities to learn about the City, gain new skills, and increase resiliency for youth, adults, and seniors through programs provided by all City departments.

Work with the community to assess, promote, and maintain City parks and trails. Increase traffic calming and pedestrian safety projects throughout the City.

City departments
leading the work
to support:

Strategies

5.1 - Expand Community Events

5.2 - Increase Inclusive Engagement Programs

5.3 - Promote Parks and Pedestrian Safety
Priority5
Actively engage community members
on important issues affecting the
quality of life to create a more informed,
engaged, and thriving community.

Engagement efforts will prioritize
expanding programs and activities
that create a sense of community and
belonging. Prioritize efforts that increase
our community’s a sense of physical
and emotional safety.

Community
Engagement
& Well-being
--
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Work Plan
Supporting the Strategic plan
2023 - 2025
The list below reflects the work that various City Departments will complete and ideas to be explored during the 2023-2025 Fiscal Years to support the advancement of the Council’s Strategic Priorities. Additional work and projects that emerge as part of continued reassessment of community needs could be added as the Council reviews progress of their Strategic Plan or as new operational needs arise.

Actively engage community members on important issues
affecting the quality of life to create a more informed, engaged, and thriving community. Engagement efforts will prioritize expanding programs and activities that create a sense of community and belonging. Prioritize efforts that increase our community’s a sense of physical and emotional safety.

How do we accomplish this goal
(What is needed or work you will need to do to get there?)

5.1 - Expand Community Events *
Expand the Bibliovan’s availability at events
throughout the City
Partnering with Agencies to Increase Services for
Residents: Ex. Increase County hours in Watsonville;
Mexican Consulate, etc.

National Night Out
Watsonville Reads; one book, one community
reading program
Explore opportunities to expand holiday events
Host community cleanup days 1 or 2 times per year
Creative Cafe at Freedom Library aims to provide
space, supplies, and inspiration for crafters in the
community
Continue and expand Summer Concert Series
Fire In the Sky Event
5 - Engagement & Well-being
OngoingEngagementPolicy Project ProgramPlanning Investment Communication Other Completed Ongoing
In Progress Delayed
* Voted as Council Priorities
0 •
0 0 • •
0 •
0 •
0 •
0 0 •
0 •
• •
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II
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5.3 - Promote Parks and Pedestrian Safety
Implement a PD Advisory Board
Expand P.A.L.’s Programing
Implement the Library’s Strategic Plan
Expand Programs and services for Seniors
Work with Community Based Orgs to provide
resources for residents
Implement a Records Management System to
allow staff to respond to public in a transparent
and efficient manner
Poet Laureate and Youth Poet Laureate
Collaborate with CA State Parks to provide
transportation and education about state parks
Install traffic calming and pedestrian safety
measures *

5.2 - Increase Engagement Programs *
5 - Engagement & Well-being
OngoingEngagementPolicy Project ProgramPlanning Investment Communication Other Expand the Watsonville Academy
Expand Teen Action Council with Library
Expand Field trips to the Airport
Expand “Passport to Fun” with City Youth Programs
Prioritize deferred maintenance of existing parks
and facilities
0 0
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•
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• •
• •
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Additional - (Future work not identified as of yet)
Other
Grow ParkRx with Salud para la Gente and
County Health
Partner with County on survey for Master Plan on
Aging and develop Age Friendly Community
Strategic Plan *
Adopt the City’s first Public Arts Master Plan
Construction of new Nature Center Building

5.3 - Promote Parks and Pedestrian Safety
(Continued)
5 - Engagement & Well-being
OngoingEngagementPolicy Project ProgramPlanning Investment Communication Other Explore Library Book Vending Machines
Create a program to allow access to computers 0
0 0
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Attract and retain public safety staff to have the capacity to educate our community and enforce existing laws and regulations.

Focus on traffic safety education, infrastructure, and enforcement to ensure safe streets for all.

Engage the community though a wide range of programs and initiatives to enhance the sense of safety and highlight the rich and diverse cultural, linguistic and ethnic heritage of Watsonville.

City departments
leading the work
to support:

Strategies

6.1 - Promote Public Safety

6.2 - Focus on Tra!c Education & Enforcement

6.3 - Improve Safety Through Engagement and Outreach
Priority6
Strive to create a healthy, safe, and
thriving Watsonville. The definition
of public safety under this priority is
expansive, and it reaches beyond the
absence of crime or providing
emergency medical response services
in the community. Public safety includes
safe roads, lighting, traffic, community
partnerships, fire, community-oriented
police, and community services.

Public
Safety

Work Plan
Supporting the Strategic plan
2023 - 2025
The list below reflects the work that various City Departments will complete and ideas to be explored during the 2023-2025 Fiscal Years to support the advancement of the Council’s Strategic Priorities. Additional work and projects that emerge as part of continued reassessment of community needs could be added as the Council reviews progress of their Strategic Plan or as new operational needs arise.

Strive to create a healthy, safe, and thriving
Watsonville. The definition of public safety under
this priority is expansive, and it reaches beyond the
absence of crime or providing emergency medical
response services in the community. Public safety
includes safe roads, lighting, traffic, community
How do we accomplish this goal
(What is needed or work you will need to do to get there?)

6.1 - Promote Public Safety

6.2 - Focus on Traffic Education & Enforcement *

6.3 - Improve Safety Through Engagement and Outreach
Relocation of Runway Two-Seven threshold by 870
to mitigate Runway Visibility Zone issue
Lead a community Youth Developmental Asset
Movement
Expansion of Traffic Unit, Education and Enforcement
Be the preferred place for adults, youth, families and
caregivers to connect, learn & grow together by providing opportunities for learning & social development.

Police and Fire Youth Academy *
Street Lighting - assessment project
Police and Fire response
Crosswalk and street stripping program
6 - Public Safety
OngoingEngagementPolicy Project ProgramPlanning Investment Communication Other Completed Ongoing
In Progress Delayed
* Voted as Council Priorities
0 0
0 0
0 0
0 • •
• •
• • •
• •

Additional - (Future work not identified as of yet)
Provide resources to disenfranchised community
members through ongoing outreach activities.
(Mental health, monolingual, lack of access to services) * Partner with local organizations and agencies to
effectively communicate the library’s programs and
services to maximize community use.

Community outreach and education about the
Community Development Department

6.3 - Improve Safety Through Engagement
and Outreach (Continued)
6 - Public Safety
OngoingEngagementPolicy Project ProgramPlanning Investment Communication Other Celebrate the unique diversity and heritage of our community through programming and events that highlight the rich and diverse cultural, linguistic and ethnic heritage.

Offer a dynamic & diverse collection of both physical
and downloadable materials and resources for all 0 ages that focuses on self-discovery and expression. 0 0
0 0
0 0
0 0
0 0
0 0
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Assess ways of increasing productivity throughout City departments, capitalizing on using technology to streamline and increase service capacity.

Increase effective communications with the community, between departments, and with elected officials.

Attract, retain, and develop a well-qualified, diverse, and professional workforce dedicated to public service. Lead departments in talent management, succession planning, employee engagement, and positive employee relations.

City departments
leading the work
to support:

Strategies

7.1 - Increase Department Capacity

7.2 - Promote E"ective Communications

7.3 - Invest in our Human Resources
Priority 7
Deliver high-quality and efficient
services for the community through
a commitment to local government
best practices, employee retention and
development, effective communications,
and investment in technology.

Efficient & High
Performing
Government
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LIBRARY DEPARTMENT DEPARTMENT AIRPORT TECHNOLOGY Page 391 of 705 Work Plan
Supporting the Strategic plan
2023 - 2025
The list below reflects the work that various City Departments will complete and ideas to be explored during the 2023-2025 Fiscal Years to support the advancement of the Council’s Strategic Priorities. Additional work and projects that emerge as part of continued reassessment of community needs could be added as the Council reviews progress of their Strategic Plan or as new operational needs arise.

Deliver high-quality and efficient services for the
community through a commitment to local
government best practices, employee retention
and development, effective communications, and
investment in technology.

How do we accomplish this goal
(What is needed or work you will need to do to get there?)

7.1 - Increase Department Capacity
7 - Efficient & High Performing Government Ongoing Engagement Policy Project ProgramPlanning Investment Communication Other
Coordinate timely and responsive input to develop
the Capital Improvement Program, the financial plan,
and the annual budget.

Create framework with staff to facilitate data
collection and improve data visualization
Consolidate Airport functions/resources into two
Divisions: Operations and Administration
Provide technical support and project management
for energy conservation and renewable energy
projects for all City departments.

Install automated materials handling system at Main
Library; a sorting solution to improve efficiency and
enhance the patron experience
Install a check-in tablet at the one-stop permit center Determine the work required to maintain and
upgrade the City’s facilities and infrastructure.

Continue migration to Microsoft 365 and migrate
shared and department files
Continue to expand fire equipment maintenance
services.

Develop an operational and sustainability analysis of
shop operations.

Completed Ongoing
In Progress Delayed
* Voted as Council Priorities
0 0
0 0
0 0
0 0 •
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0 • • •
•
•
•
•
•
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Ill
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• II
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7.3 - Invest in our Human Resources
Provide innovative technologies that will benefit the
City operations.

Develop succession planning and training for all
departments *
Process correspondence & inquiries, Council reports,
public records requests, and personnel actions and
evaluations in a timely and accurate fashion.

Maintain proactive/timely communications with the
City Council *
Attract and retain a highly talented and
diverse workforce *
Records Management System Implementation: New
system will allow staff to respond to the public in a
transparent and efficient manner.

Update Personnel Rules and Regulations.

Deploy improved online customer account access for
payments and service.

Support employee safety and well-being.

Expanding multi-factor authentication using Azure
MFA
Update regulations, policies, and procedures to
minimize operational risks.

7.1 - Increase Department Capacity (Continued)
7 - Efficient & High Performing Government
OngoingEngagementPolicy Project ProgramPlanning Investment Communication Other Needs Assessment for the Police Department

7.2 - Promote Effective Communications
0 0
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Develop and coordinate all department
revenues including water, wastewater, and
solid waste rate setting.

Additional - (Future work not identified as of yet)
Expand electronic payment methods by installing
kiosks at the payment office.

Explore Charter Amendments (Election in 2024)
Coordinate and administer the department’s
budget activities, ensuring that expenses are within
the approved appropriation.

Manage our Retirement Liability
Increase transparency and community
understanding of the City’s finances
Training for Police- Looking beyond the traditional
police training. Implement training that is more in
line with 21st century policing
Complete transition to full AMI deployment for
meter reading
Maintain an apparatus and car fleet replacement plan
that meets the needs of the community and ensures
funding is allocated for future replacements.

Modernize Financial Services
Develop Cybersecurity work-plan
Develop a plan to address data at risk from Long
term employees exiting the organization
Other (Continued)
7 - Efficient & High Performing Government
OngoingEngagementPolicy Project ProgramPlanning Investment Communication Other 0 0
0 0
0 0
0 0
0 0
0 0
0 0
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City Council Strategic Plan
2023 - 2025

Overview
Every two years, the City Council adopts a
Strategic Plan that aligns the Council’s
priorities and community needs with the
budget and sets forth a forward-looking
vision for the City organization and the
services we offer to the community.

The 2023 - 2025 Strategic Plan includes
seven long-range priorities. Under each
Strategic Priority, the Council identified
several strategies and actions to support
meeting the measurable outcomes set forth
under each priority.

Priorities
Housing
Fiscal Health
Infrastructure & Environment
Economic Development
Community Engagement & Well-being
Public Safety
Efficient & Well-Performing Government

What is the Priority
it's definition
3 main strategies
that support this
priority
Priority Number
Which department is
working on this
priority

What is the Priority
for this work plan
Strategies that
supports the priority.

This is how the status
of each goal, project
or idea will be
reported on for the
yearly review.

If there's a * ,
it was voted as a priority
during the Council
Strategic Plan Meetings
This section allows
you to know how
each goal, project or
idea will be achieved
This section is for any
work that is identified in
the future

Housing
Proactively remove barriers to accessing stable, quality and affordable housing and strive to create new opportunities to add housing to meet our community’s current and future housing needs.

1.1 - Explore Mixed Use Development
Explore opportunities and policies that will allow for mixed-use development to make use of the limited space available within city limits.

1.2 - Increase Housing Options for All
Encourage the development of sustainable, inclusive, and affordable homes for all residents, including moderate housing, workforce housing, and downsizing options.

1.3 - Explore Opportunities for ADUs
Explore opportunities to enhance and market ADUs to Watsonville residents.

Fiscal Health
The City will continue to enhance fiscal sustainability of the City, through prudent financial planning and decision-making to ensure the organization can best serve the residents and businesses of Watsonville today and in the future.

2.1 - Increase Community Involvement in Local Government Explore the possibility of amending the City Charter to allow Council members to receive health benefits and a salary. This will appeal and attract other community members who wish to get involved with local government and run for office.

2.2 - Maintain a Balanced Budget
Maintain a balanced budget with healthy fund balances while aligning with the Strategic Plan Priorities. Develop additional policies to help maintain and grow adequate city reserves.

2.3 - Leverage Local Tax Measures
Leverage local tax measure funds and explore the possibility of bonding to finance Capital Improvement Projects.

Infrastructure &
Environment
The City will work to build and maintain our infrastructure and preserve the natural environment through careful planning, preservation, and maintenance for residents and future
generations. Special attention will be given to road maintenance, street lighting and City facilities.

3.1 - Improve Streets
Address potholes, striping, road maintenance, and repairs on streets throughout the city. Implement new traffic safety projects that make Watsonville more accessible to drivers and safer for pedestrians.

3.2 - Address City’s Aging Facilities
Explore opportunities to update and enhance City facilities for the benefit and enjoyment of employees and City residents.

3.3 - Support Environmental Stewardship
Continue the City’s longstanding and proactive efforts to serve as a regional leader in environmental stewardship.

Economic
Development
Focus on developing a strong and visible City Brand to help strengthen and diversify the City’s economy for all. Support and grow existing businesses, attract new businesses and industries, enhance workforce development, revitalize downtown, and encourage entrepreneurs to invest and grow locally.

4.1 - Establish an Economic Development Plan
Establish an Economic Development Plan that is data-informed and allows the City to attract new businesses. The Economic Plan should include City branding and messaging and promote business growth and connection.

4.2 - Work on Business Attraction
Develop a plan that attracts flagship companies and larger revenuegenerating businesses. Adopt the Downtown Specific Plan and support local business growth.

4.3 - Expand Fiber Optics
Fiber optics support the digital middle mile for future growth and digital access of residents, businesses, and connected/smart City initiatives. Fiber optics are foundational to increasing data access to small cell sites throughout the city. Small cell sites improve cellular signal in populated areas, which increases data access for all.

Community
Engagement & Well-being
Actively engage community members on important issues affecting the quality of life to create a more informed, engaged, and thriving community. Engagement efforts will prioritize expanding programs and activities that create a sense of community and belonging.

Prioritize efforts that increase our community’s a sense of physical and emotional safety.

5.1 - Expand Community Events
Create a sense of community and belonging for residents by working with the community and stakeholders to continue to provide events that promote art, culture, health, and economic opportunities.

5.2 - Increase Inclusive Engagement Programs
Provide inclusive opportunities to learn about the City, gain new skills, and increase resiliency for youth, adults, and seniors through programs provided by all City departments.

5.3 - Promote Parks and Pedestrian Safety
Work with the community to assess, promote, and maintain City parks and trails. Increase traffic calming and pedestrian safety projects throughout the City.

Public Safety
Strive to create a healthy, safe, and thriving Watsonville. The definition of public safety under this priority is expansive, and it reaches beyond the absence of crime or providing emergency medical response services in the community. Public safety includes safe roads, lighting, traffic, community partnerships, fire, community-oriented police, and community services.

6.1 - Promote Public Safety
Attract and retain public safety staff to have the capacity to educate our community and enforce existing laws and regulations.

6.2 - Focus on Traffic Education & Enforcement
Focus on traffic safety education, infrastructure, and enforcement to ensure safe streets for all.

6.3 - Improve Safety Through Engagement and Outreach
Engage the community though a wide range of programs and initiatives to enhance the sense of safety and highlight the rich and diverse cultural, linguistic and ethnic heritage of Watsonville.

Efficient & High
Performing Government
Deliver high-quality and efficient services for the community through a commitment to local government best practices, employee retention and development, effective communications, and investment in technology.

7.1 - Increase Department Capacity
Assess ways of increasing productivity throughout City
departments, capitalizing on using technology to streamline and increase service capacity.

7.2 - Promote Effective Communications
Increase effective communications with the community, between departments, and with elected officials.

7.3 - Invest in our Human Resources
Attract, retain, and develop a well-qualified, diverse, and professional workforce dedicated to public service. Lead departments in talent management, succession planning, employee engagement, and positive employee relations.

Questions?

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Agenda Report
MEETING DATE: Tuesday, June 13, 2023
TO: City Council
FROM: ADMINISTRATIVE SERVICES DIRECTOR DURAN
THROUGH: CITY MANAGER MENDEZ
SUBJECT: RECOMMENDED BIENNIAL BUDGET FOR FISCAL YEARS 2023- 24 AND 2024-25 AND RELATED ACTIONS
Budget Link: https://cityofwatsonville.org/DocumentCenter/View/21429/Budget-FY-23- 25-Draft
RECOMMENDED ACTION:

Receive report regarding the proposed FY 2023-24 and FY 2024-25 Biennial Budget.

DISCUSSION
Adopting the annual budget requires multiple legislative actions by the City Council, sitting as the Council, the Successor Agency, and the Successor Housing Agency. At the June 13th Council meeting, staff will provide an overview of the proposed budget. At the June 27th meeting, staff will bring the following items, each required to adopt the budget:
1) Resolution adopting the FY 2023-24 and FY 2024-25 Biennial Budget plan, providing certain transfers of funds & approve the Five-Year Capital Improvement Program; 2) Resolution adopting various rates and fees at the Airport; 3) Resolution adopting Recreation facility rental fee schedule for the Parks and Community Services Department;
4) Resolution establishing the “Total Annual Appropriations” pursuant to State Constitution Article XIII-B for Fiscal Year FY 2023-24 (Proposition 4 GANN spending limit); 5) Ordinance instructing Santa Cruz County to levy and collect property tax on taxable property within the City of Watsonville for fiscal year beginning July 1, 2023, to June 30, 2024, at the levy rate of 0.077% and allocating proceeds to the Retirement Fund; 6) Successor Housing Agency Resolution authorizing the expenditure of low and moderateincome housing funds; and 7) Successor Agency Resolution finding that the use of taxes allocated from the Watsonville 2000 Redevelopment Project outside the project area will be of benefit to the project area.

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DISCUSSION:

Table 1: Fiscal Year 2023-24 and FY 2024-25 Budget Summary Budget appropriations for fiscal year 2023-24 are $248,816,911, up $37,779,784 from fiscal year 2022-23. The following table outlines the increases by fund type:

Table 2: Appropriation Increases fiscal year 2023-24 from fiscal year 2022-23 General
Funds
Special
Revenue
Funds
Debt
Service
Enterprise
Funds
Internal
Service
Funds
Private
Trust Fund
Total all
Funds
FY 2023/24
Total Resources 66,965,122 34,307,497 498,554 78,774,512 21,433,236 2,138,454 204,117,375 Total Uses 74,462,280 46,833,457 498,554 101,961,191 22,922,975 2,138,454 248,816,911 Surplus/(Shortfall) (7,497,158) (12,525,960) - (23,186,679) (1,489,739) - (44,699,536) FY 2024/25
Total Resources 61,164,358 20,095,196 466,994 76,230,612 22,698,712 1,128,588 181,784,460 Total Uses 61,395,285 23,858,898 466,994 63,038,358 23,070,115 1,128,588 172,958,238 Surplus/(Shortfall) (230,927) (3,763,702) - 13,192,254 (371,403) - 8,826,222 General Funds
Measure R 5,205,309
Grants 3,159,077
Other (Salaries,benefits, contracts) 1,754,718
Special Revenue Funds
ARPA 11,728,363
Debt Service
Payoff of Fire truck (315,644)
Enterprise Funds
Landfill Opening 6,000,000
Landfill Closure 2,592,196
Wastewater Main Switchgear 4,000,000
Other (Salaries, benefits, contracts) 5,073,762
Internal Service Funds
Increase in health insurance costs 851,190
Other (Salaries, benefits, contracts) 216,242
Private Trust Fund
Successor Redevelopment Agency (2,485,429)
Total Increase in FY 2023/24 over FY 2022/23 37,779,784 Appropriation Increases Summarized
Governmental Fund Types
Enterprise/ Internal Service/ Trust Funds

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This Biennial Budget embodies a forward-looking vision, aiming to create a promising future for Watsonville. It emphasizes the importance of collective efforts, as we collaborate to shape a community where everyone can prosper and opportunities for our community. This is a balanced budget that maintains Council approved reserves and leverages funding from the American Rescue Plan Act to support improvements in streets, economic development, Ramsay Park, Nature Center and opportunities for our citizens to obtain valuable work experience, just to name a few. We continue transitioning with incremental and measured strategies to maximize City resources and optimize services to the community. Furthermore, with the passage of Measure R last year, this will allow us to increase investments in our parks, streets, libraries and new or enhanced programs to further support our community. At present, this budget outlines the estimated revenue and appropriation levels of Measure R, without providing a detailed spending plan. The City is currently working on the by-laws and forming the Measure R oversight Committee. This Committee will advise the Council whether the recommended expenditure for the funds is consistent with the ballot measure.

General Fund
Over the next two years, the general fund is anticipated to experience growth in both operating expenditures and revenues. Due to our prudent financial management, we have avoided any structural budget issues. Through careful planning and decision-making, we have been able to maintain a stable financial position and avoid any long-term budgetary challenges.

Additionally, there is a plan to utilize some of the accumulated fund balance during this period for capital improvement projects. Except for salary and benefits, contracts and materials, our departments are largely maintaining current funding levels. However, there have been additions to the General Fund, specifically two new Utility Worker positions. This increase in staff will enhance our capacity to address the City Council’s priority of street maintenance and ensure efficient operations.

Revenues:

The following chart illustrates general fund revenues for FY 2023-24.

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Chart 1: General Fund Revenues by Type for Fiscal Year 2023-24 Property Tax- We are budgeting base property tax to be 3.5% higher than the estimated collections for FY 2022-23 resulting in a total of $14,461,725. This figure includes an additional $400,000 from residual property taxes. Property taxes are collected based on County Assessor rolls that were formally closed in January of 2023. At that time, the normal Prop 13 assessed CPI growth was 1.3%, less maximum allowed 2%.

Over the past few years, sales tax has experienced robust growth. However, inflation and rising interest rates have stabilized this revenue. We are expecting a decrease in estimated collections of fiscal year 22/23 of 2.0 percent for fiscal year 23/24 and an increase of 2.9 percent for FY 24/25. The table below shows the City’s share of the County’s 9.75% sales tax:

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Table 3: Breakdown of County of Santa Cruz sales tax.

Sales Tax – In the previous fiscal year, the category of sales tax stood at 25% of General Fund revenues, however it has now risen to 33% following the passage of Measure R. Additionally, the City is also supported by sales tax in various special funds including the Library, the Measure Y Public Safety Sales tax, and Measure D transportation. Similar assumptions discussed in this report also affect each of these funds.

Hotel Tax – Hotel tax represents a relatively smaller proportion of the City’s overall revenue mix. However, this revenue stream was particularly affected by the pandemic, experiencing significant impacts due to reduced travel and tourism activities. The City has experienced a recovery in this revenue stream, returning to pre-pandemic levels, primarily attributed to normalization of travel and the recent opening of the Hampton Inn on Lee Rd. Hotel Tax is projected to grow about 8% next fiscal year and then flat in FY 2024-25.

Utility User Tax- Utility User Tax represents about 6.1% 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 3% in each of the two budget years.

Community Development Department Revenues – The community development charges fees for various services, such as inspections, plan check, and permit issuance. The department has experienced declines in revenue over the current fiscal year. Nevertheless, in the next two fiscal years we are projecting modest increases in their departmental revenue. Additionally, the department is currently experiencing a high workload due to two major projects: the general plan and the housing element. The general plan update involves revising the long-term vision for the community’s development, while the housing element specifically addresses housing needs and policies.

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Parks and Community Services Revenues – The Parks and Community Services department was the hardest hit by the pandemic with many of their normal service offerings prohibited.

The Parks and Community Services department brings exceptional value, particularly through its low-cost services for our residents, especially children and seniors. The department has partnered with the Pajaro Valley Unified School district and is collaborating with the school district and in this way are leveraging resources to better serve the community. We are expecting that FY 2023-24 and FY 2024/25 revenues will be back to prior pandemic levels with some declines at Ramsay Park, as we undertake necessary enhancements and upgrades during the construction period.

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. The budget does assume the use of $15,087,971 of American Rescue Plan Act (ARPA) funds over the two-year period. There are many parts of the budget that we believe will be eligible to be covered by ARPA funds, but we are specifically utilizing the funds to assist us in fixing streets and potholes, Ramsay Park, Nature Center, Wayfinding, opportunity to work program, economic development and position restoration. It is important to highlight that these funds must be obligated and allocated for specific purposes by December 2024. The ARPA funds present us with a unique opportunity to address pressing community needs and invest in our City.

Table 4 below summarizes all the revenue categorized by type described above.

Table 4: General Fund Revenue Summary

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Expenditures
Prior to the pandemic, Watsonville was already dealing with structural shortfalls in its budget.

The City was facing a situation where expenditures were projected to grow faster than revenues. This was primarily driven by increasing costs of unfunded actuarial liabilities (UAL) related to retirement costs. Unfunded actuarial liabilities refer to the difference between the projected obligations of the pension plan and the assets set aside to fund those obligations.

The City has demonstrated prudent fiscal planning, we have remained focused on maintaining reserves and anticipating future needs. By doing so, we are better prepared to address unforeseen circumstances or financial challenges that may arise. Additionally, the passage of Measure R by the community last year enables the City to further invest in parks, libraries, and new improved programs and quality of life for our residents. In this proposed biennial budget, most departmental budgets have remained relatively unchanged, following a status quo approach. However, certain adjustments have been made to accommodate cost-of-living adjustments, (COLAS), increased benefits costs, and contractual obligations.

Salaries– Salaries and benefits make up 46% of General Fund operating expenditures and therefore represent the greatest increase in costs. There are 8 proposed new positions across all funds, with 2 being in the general fund. In preparing this budget, Council’s strategic goals were prioritized, as a result the general fund is proposing two additional Utility Worker 1 positions to assist with road repair and striping throughout the City. The budget also reflects both actual and expected contractual raises for all our bargaining units.

Table 5: Proposed new positions.

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Unfunded Actuarial Liability (UAL) – The City’s UAL costs pose an ongoing challenge. In the upcoming FY 2023-24 UAL costs will represent 10% of the general fund operating budget.

The total of $5,615 million represents a $148 thousand decrease from the prior year, but that is after a $765 thousand increase last year. Costs are projected to be about the same in each of the fiscal years included in this budget following the FY 2022-23 peak year. The fact that the UAL costs are expected to represent 10% of the general fund operating budget suggests a significant portion of the city’s financial resources will be allocated to addressing the liability.

We have a CalPERS smoothing reserve of $1 million fully funded in our fund balance reserves to help mitigate the impact of the future UAL costs on the city’s budget.

Other Benefits – Other benefits such as normal retirement costs, social security, and Medicare are expected to rise at similar rates to salaries. Our health insurance broker has recently provided information that after several years of minimal or no increases in healthcare costs, there will be a significant rise of approximately 10 percent in the upcoming calendar year. We have planned for a 5% increase in the next fiscal year as the increase is effective at the beginning of the 2024 calendar year and a 9% increase for FY 2024-25.

Other non-position costs – Other citywide non-position impacts on the general fund are minimal. We are budgeting for rate increases JPA contract with the county for 911 and Animal Shelter services.

Select Department Changes
All departments are impacted by the citywide impacts described above. Table 3 shows the proposed General Fund operating budget by department.

Table 6: General Fund Operating Budget by Department
Below is the graph that shows the breakdown of the General Fund expenditures:

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Graph 2: General Fund Expenditures by Type
Community Development Department – As mentioned in the revenue section above, the Community Development Department is actively engaged in two major projects: the City’s new general plan update and housing element. Despite their workload, there has been no decrease in demand for their services throughout this past year.

Parks and Community Services Department- The Parks and Community Service was drastically reduced in years the City was dealing with the pandemic. We have restored recreation and community services staff so they can once again offer services. The science workshop program is also a program that PCS offers; this helps better leverage our combined child programming resources. In addition to the ongoing projects and programs mentioned earlier, the department is also actively involved in the Ramsay Park Improvements. They are currently working on several enhancements, including the construction of a new all-inclusive playground and the installation of a new turf soccer field, among other planned improvements.

These efforts demonstrate the City’s and department commitment to enhancing recreation facilities and providing inclusive and enjoyable spaces for our community.

Other General Fund Operational Changes- As discussed, most of the increases in the table above reflect increased costs of doing business and increases in salary and benefits for existing employees. A few other changes will come from the Measure R spending plan when that is presented to Council. The new sales tax Measure R’s projected revenues and

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expenditures are included in this budget. The City has not developed a detailed spending plan. The spending plan will help ensure transparency, accountability and efficient use of funds.

Five Year Outlook
Our five-year projection assumption assumes that there will be no new programmatic changes.

It provides a snapshot of the projected costs if we were to maintain our current operations and not introduce new programming. To that end it takes the two-year budget produced and 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 4 reflects the General Fund’s five-year outlook with major assumptions described below.

Table 7: General Fund Five-Year Outlook
Property Tax: Based on historical averages we are projecting a 3% increase in each of the out years.

Sales Tax: FY 2023-24 sales tax is expected to level off as inflation and rising interest start to play a factor on purchases. The years past the current proposed biennial budget are assumed to grow at 3% similar to past trend and assuming some normal growth.

Other Non-Department and Departmental Revenues: Are projected to grow between 2% and 3% for each of the out years assuming some normal amount of inflation.

Salaries: In the last three years we assume salaries have grown very gradually, at 2%.

Retirement Costs: The normal cost portion of our retirement is anticipated to grow at the same rate as our salaries. Our portion of the unfunded liability is based on the most recent actuarial reports from CalPERS. The actuarial report shows our annual liability high but relatively flat in the budget years included. Furthermore, the city has a side loan to pay off UAL from the Tier II category safety employees which ends in FY 2023-24, allowing that money to be deployed towards other retirement liabilities.

Health Benefits – While Watsonville has seen little to no increases in our health insurance costs in recent years, we knew it was an anomaly in industry and among our peer cities. The City of Watsonville has recently been informed that after several years of minimal or no increases in healthcare costs, there will be a significant rise of approximately 10 percent in the FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
Revenue 58,321,639 59,675,767 60,939,680 62,656,320 64,426,827 Expenses 65,143,828 59,810,188 60,305,893 62,515,070 64,431,722 Revenue less Expenses (6,822,189) (134,421) 633,787 141,250 (4,895) Available One-Time Funds - - 633,787 141,250 -
Net Deficit - (134,421) - - (4,895)

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upcoming calendar year. We have planned for a 5% increase in the next fiscal year as the increase is effective at the beginning of the calendar year and a 10% increase for FY 2024-25.

Utilities – We assume the newly adopted rate increase schedule for the Public Utilities of 1% for Water, 7.5% for Wastewater, and 7.5% for Solid Waste.

Other Non-Personnel Costs – We assume these costs will increase by 2%, an assumed proxy for CPI.

Operating Capital- In our 5-year plan, our target is to increase the amount of operating capital to just over $1 million in FY 2025-26 and each of the out years according to the five-year CIP plan. The City has over $30 million in unfunded capital needs. We continue to look for outside funding sources to meet those needs, however, budgeting a realistic amount of capital to maintain our facilities is imperative to preventing projects from becoming larger and more expensive replacement projects.

Select Special Revenue Funds
Table 8: Select Special Revenue Funds
Library Fund
The Library fund is supported through a county levied special sales and use tax. As such, we expect its revenues to return to normal levels and follow the sales tax patterns described above. The library is proposing to utilize some of their accumulated fund balance for building improvements to the library restroom facilities and parking lot re-striping. They are also

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increasing their workforce by converting two half-time employees into full time employes. This will enable the library to expand its service, offering to better cater to the needs of our citizens.

ARPA
We have budgeted to use the remaining American Rescue Plan Act (ARPA) funds to support improvements in streets, investment in economic development to continue to grow and diversify our revenues, Ramsay Park, Nature Center and opportunities for our citizens to obtain valuable work experience, just to name a few. We will continue to monitor the spending of these funds as the deadline to commit and obligate the use of these funds is approaching, December 31, 2024. The funds must then be fully spent down, two years later, December 31, 2026. We will work with the various departments on developing a contingency plan that can include projects such as purchasing a training facility for our firefighters.

Gas Tax and SB1
The gas tax is expected to be relatively flat in this biennial budget. These funds pay for roadway projects and include some staff and material costs for regular maintenance of the streets. The Public Works department has been very successful in recent years in receiving grants for transportation projects in addition to these special revenue funds.

Measure Y
In March 2020, Watsonville voters overwhelmingly voted to pass Measure Y and renew the existing half cent public safety sales and use tax. This tax allows Fire, Police and Parks departments to increase their expenditures on their respective operating budgets. The Fire and Police Department can fund positions, other operating expenditures and capital with these funds. The Parks department can fund repairs, staffing and other operating costs with their allocation. Fire and Police are also proposing to use their accumulated balances to purchase specialized equipment for their departments and invest in some building maintenance and repairs.

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Select Enterprise Funds
Table 9: Select Enterprise Funds
The Utility Enterprises of Wastewater, Water, and Solid Waste are proposing minimal changes to their operating budgets. The Council approved a five-year rate schedule that is still in place during this biennial budget. The rising costs of the Utility finds is primarily attributed to the growing expenses associated with capital improvement projects, the costs of materials and supplies, and in the case of Solid Waste, the cost of disposal contracts, rather than personnelrelated cost increases as seen in the general fund. The re-opening of the Landfill Phase 4 is one of the biggest drivers for these increases in spending for the Enterprise Funds.

The Airport fund is supported through three revenue streams, leasing of properties to aeronautical and non-aeronautical commercial businesses, leasing of aviation storage units, and aviation fuel sales. The department is expecting revenues to improve in the budget cycle. As such, they are adding one position that will help them with their customer service and special projects at the Airport. The Airport is committing a portion of its special events budget to community outreach efforts by partnering with local schools, community non-profits and emergency services groups.

The Airport is currently in the process of completing a master plan update that informs them of their capital improvements and operational needs for future years.

Five-Year Capital Improvement Plan
The Five-Year Capital Plan helps the City prioritize its funding and planning for longer term structural needs. This year, all departments submitted a comprehensive list of all capital needs and projects. Departments were encouraged to submit all their known capital needs knowing that the City may not be able to fund all projects. The list will inform the City of its capital needs.

Several departments have recently been through Master Planning processes which formed their requests. Furthermore, the Public Works and Utilities department has recently completed a comprehensive facility study. The study identified most of the City’s buildings and their maintenance and repairs needs.

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The prioritization and decision process differed depending on funding source. For the General Fund, this year’s guiding principles were:
1) To fund projects that aligned with City Council’s strategic priorities as much as possible in order to create efficiencies by collaborating across the City. 2) To match or sync up with grant or other funding activities occurring at the same time; and 3) Projects required by changes in law or operational necessity. 4) Maximize the use of fund balance from other available funds to preserve General Fund for projects with no other funding options.

Based on the above criteria, the General Fund has a high priority on streets, including pothole repairs and striping. New funding in the General Fund is $150,000 in FY 2023-24, however we have also budgeted more funds in some of our street’s funds. The General fund’s capital expenditure is about $6 million. Most of the funding is for Parks projects this year, particularly Ramsay Park. The majority being re-appropriation of funds for prior commitments to this project.

Also, included in the reappropriation are the costs for the City’s General Plan. This capital plan is investing over $7 million into Ramsay Park (including ARPA funds) and over $10 million in Parks and Recreation Facilities. We are funding the design for all the improvements included in the Ramsay Park Master Plan and the construction of the improvements to the main soccer field.

We are hopeful that by funding the design for all these projects we will be “shovel ready” and able to take advantage of additional funding from grants, state and federal allocations, or community fundraising to complete the remaining elements in future years.

Most capital projects are not General Fund and will be managed by the Public Works and Utilities Department. Both the Wastewater and Water enterprises have previously completed comprehensive master plans this year which informed their proposals.

Wastewater Fund
In Fiscal year 2023/24, the two larger recommended projects are the Main Switchgear and Energy Recovery Electrical System Improvements at $4MM and $10MM in FY 2024-25. The main electrical switchgear and backup generation system that provides power and emergency backup power to all equipment in the wastewater treatment plant is nearing the end of its useful life. This critical equipment was identified in the Wastewater Treatment Facility (WWTF) Hazard Assessment as vulnerable to flood and seismic hazards. This project will replace this critical equipment and mitigate future flood or seismic hazards so the WWTF will continue to provide safe and effective wastewater treatment for the communities it serves. Also proposed is the Sub Basin 7 Sanitary Sewer Infrastructure Repairs (Martinelli to Beach Streets). The City's sewer collection system is divided into 13 sub basins based on drainage routing at $1.5MM. Collections staff maintains a list of the sewer lines within the City that require the most frequent maintenance due to breaks, grease buildup, and/or being undersized. Sub Basin 7 contains approximately a third of the locations on this maintenance list. Staff will study the area to evaluate and prioritize projects within Sub Basin 7.

Additionally, several significant improvements will need to be made to our sewer pump stations, sewer lines, reinforcement of the river levee next to the treatment plant, and other upgrades within the treatment facility.

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Water Fund
In Fiscal Year 2023/24 the Water Fund is proposing a $4.9MM project to Construct a new 2.0+ MG reservoir to partner with Airport Reservoir. Additionally, in Fiscal Year 2024-25 they are proposing to spend $3MM on a new MSC Building.

They are also proposing other projects that will repair or improve wells, water meter main replacements and various other projects.

Solid Waste.

The Solid Waste capital program is largely driven by the costs of closing and opening landfill cells. We also plan to open a new landfill cell in 2024, which is a $6M project.

Transportation
Transportation projects were selected for the Capital Improvement Program due to need and available funding. Need is typically based upon existing conditions and amount of use. Major arterial roads have more traffic and tend to deteriorate quicker than lesser-travelled roads.

Sidewalks and pedestrian or bike trails also show wear due to age. Streetlights, traffic lights, striping and signage must be maintained and are updated to use new and more effective technology following industry best management practices. Other factors, such as increased population or new state or federal mandates, may require that facilities be upgraded or expanded.

Funding comes from many sources, and each has its own requirements. Three of the sources, Gas Tax, Measure D, and SB1 have similar requirements and can be used on design and construction of transportation projects that include road repair and rehabilitation, traffic signals, safety improvements and bicycle and pedestrian improvements. The City also secures grant funding through local, State and Federal sources that is awarded on a competitive basis. These grants often focus on an area, such as safety, pedestrian facilities, bicycle facilities or reducing pollution. Another source of funding is developer fees, which are collected for specific improvements in an area and use restricted to that purpose.

Key projects in the next two years include improvements to bicycle and pedestrian facilities and safety training in the downtown area and at 8 schools in the southeast portion of the City. The Department is also planning a City-wide Street resurfacing project which includes overlay or replacement that will improve the surface condition and support the lifespan of several miles of streets throughout the City. Lastly, work on the Lee Road Trail Phase 1 (Pajaro Valley High School driveway to Land Trust driveway). Construct sidewalk and bike lanes of Harkins Slough Rd and pedestrian and bicycle path on Lee Road.

Unfunded Capital Needs
Despite a plan which expects to fund over $45 million of Capital projects over the next two years, we still have over $33 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, as identified in our facility’s plan. Capital investment was neglected after the 2008 recession and has left the City with a backlog of needs to our police and fire stations, our parks, our community buildings, and our sports facilities. We will continue to seek grants and other funds

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to invest in our capital assets, and potentially look to Federal infrastructure funding that we hope will come our way.

Table 7: Capital Improvement Program by Funding Source
Budget Legislation
Each year the passage of the budget requires several legislative actions. Below is a listing of each required action.

That the City Council, in its capacity as City Council and the Successor Agency and Housing Successor Agency shall:
1) Budget and CIP: Approve a resolution adopting the FY 2023-25 Biennial Budget, providing certain transfers of funds and approve the Five-Year Capital Improvement Program, as highlighted and summarized above.

That the City Council shall:
2) Airport fees: Approve a resolution adopting various rates and fees at the Airport.

The airport periodically updates its rates and fees based on inflation, comparison with other airports, limits set by the FAA, and operational revenue requirements. It has been two years since the airport has adjusted its rates and fees. 3) Facility Rental Fees at Parks and Community Services: Approve a resolution adopting facility rental fees at the PCS Department. The Parks and Community Services Departments offer a variety of indoor and outdoor facilities for the public to rent. Facilities include community rooms, picnic areas, tennis courts, a car wash station and sports fields.
4) Gann Limit: Approve a resolution establishing the “Total Annual Appropriations” pursuant to State Constitution Article XIII-B for Fiscal Year FY 2023-24 (Proposition 4 GANN spending limit) as shown in Attachment 4; and
Fund Name FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 General Fund 893,000 705,000 65,000 65,000 65,000
Grants 2,995,518 642,000 - 9,092,000 -
Measure R 2,500,000 2,500,000 - - -
ARPA 8,536,428 - - - -
Transpotation Funds 3,393,802 3,725,320 3,825,000 4,287,000 1,325,000 Water 6,232,655 3,564,906 32,808,730 8,345,503 30,341,415 Wastewater 8,239,806 1,201,486 996,836 6,665,354 11,560,416 Solid Waste/Landfill 6,775,000 472,808 981,958 910,930 1,555,310 Other 3,601,000 1,914,000 1,215,000 920,000 1,280,000
Total 43,167,209 14,725,520 39,892,524 30,285,787 46,127,141

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5) Property Tax levy: That the City Council adopt an ordinance to instruct Santa Cruz County to levy and collect property tax on taxable property within the City of Watsonville for fiscal year beginning July 1, 2023, to June 30, 2024, at the levy rate of 0.077% and allocating to the Retirement Fund; and
That the City Council, in its capacity as the Housing Successor Agency:
6) Expenditures of housing funds: That the Housing Successor Agency shall adopt a resolution to authorize the expenditure of low and moderate-income housing funds for planning and general administrative costs for the purpose of producing, improving, and preserving the community's supply of low and moderate-income housing; and
7) Redevelopment Project: Find that the use of taxes allocated from the Watsonville 2000 Redevelopment Project for producing, improving and preserving the supply of low and moderate-income housing outside the project area will be of benefit to the project area.

STRATEGIC PLAN:

The current balance 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 2023-24 spending of $248,816,911.

ALTERNATIVES:

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

ATTACHMENTS/LINKS:
1) Proposed FY 2023-24 and FY 2024-25 Budget

FY 2023-24 Budget
Finance Department
June 13, 2023

2 Today’s Topics
 Budget overview and study session
 General Fund
 Capital Improvement Plan
 Enterprise and Other Funds
 Set the budget adoption date for two weeks from now. No action is required tonight.

Budget Schedule
- Year 1 2023-24 Budget
- Year 2 2024-25 Budget
o Strategic Plan being approved and worked on in the
1 st year of the Biennial Budget Process
o Mid-Year Estimate (02/2024)
o Budget Session (06/2024) – 1
st meeting
Adoption (06/2024) – 2
nd meeting

Budget Overview
Fund Types General Funds
Special Revenue
Funds
Debt
Service
Enterprise
Funds
Internal Service
Funds
Private Trust
Fund Total all Funds
Projected Resources 2023-24
Revenues 62,301,641 34,128,116 - 78,774,512 21,433,236 2,138,454 198,775,959 Transfers In 4,663,481 179,381 498,554 - - - 5,341,416
Total Gross Resources 66,965,122 34,307,497 498,554 78,774,512 21,433,236 2,138,454 204,117,375 Projected Expenditures
Operations 57,901,434 16,223,560 - 55,951,588 21,502,997 15,070 151,594,650 Capital 16,322,635 26,222,681 - 44,536,832 1,419,978 - 88,502,126 Transfers Out 238,211 4,387,215 - 285,056 - 430,934 5,341,416 Debt Service - - 498,554 1,187,715 - 1,692,450 3,378,719 Total Gross Uses 74,462,280 46,833,457 498,554 101,961,191 22,922,975 2,138,454 248,816,911 Surplus / (Shortfall) (7,497,158) (12,525,960) - (23,186,679) (1,489,739) - (44,699,536) Projected Resources 2024-25
Revenues 56,759,963 20,002,001 - 76,230,612 22,698,712 1,128,588 176,819,876 Transfers In 4,404,395 93,195 466,994 - - - 4,964,584
Total Gross Resources 61,164,358 20,095,196 466,994 76,230,612 22,698,712 1,128,588 181,784,460 Projected Expenditures
Operations 57,127,915 14,128,888 - 56,233,578 22,930,115 14,420 150,434,916 Capital 4,136,000 5,196,820 - 5,264,200 140,000 - 14,737,020 Transfers Out 131,370 4,533,190 - 285,056 - 14,968 4,964,584 Debt Service - - 466,994 1,255,524 - 1,099,200 2,821,718 Total Gross Uses 61,395,285 23,858,898 466,994 63,038,358 23,070,115 1,128,588 172,958,238 Surplus / (Shortfall) (230,927) (3,763,702) - 13,192,254 (371,403) - 8,826,222

Appropriation Increases
General Funds
Measure R 5,205,309
Grants 3,159,077
Other (Salaries,benefits, contracts) 1,754,718
Special Revenue Funds
ARPA 11,728,363
Debt Service
Payoff of Fire truck (315,644)
Enterprise Funds
Landfill Opening 6,000,000
Landfill Closure 2,592,196
Wastewater Main Switchgear 4,000,000
Other (Salaries, benefits, contracts) 5,073,762
Internal Service Funds
Increase in health insurance costs 851,190
Other (Salaries, benefits, contracts) 216,242
Private Trust Fund
Successor Redevelopment Agency (2,485,429)
Governmental Fund Types
Enterprise/ Internal Service/ Trust Funds
Total Increase in FY 2023/24 over FY 2022/23 37,779,784

Proposed New Positions
Proposed position additions
General Fund
Utility Worker I 2
Total 2
Special Revenue Fund
Recreation Supervisor 1
Library Clerk 0.5
Sr Library Assistant 0.5
Total 2
Enterprise Fund
Office Assistant 1
GIS Tech I 1
Sr Integrated Waste Worker 1
Utility Worker III 1
Total 4
Total additional staff proposed 8

Budget By Fund

By Department

By Expenditure Type

General Fund Revenues

General Fund Revenues
FY 2022 FY 2023 FY 2024 FY 2025
Revenues Actual Projection FY 24 FY 25
Property Tax 13,195,358 13,568,739 14,461,725 14,797,577 Sales Tax-General 13,881,873 14,905,442 19,226,216 19,791,125 Hotel Room Tax 1,611,253 1,577,585 1,500,000 1,500,000
Utility User Tax 4,144,043 4,125,245 4,268,320 4,377,500 Transfers In 3,783,286 4,621,794 4,423,954 4,164,868
Total Revenues 36,615,813 38,798,805 43,880,215 44,631,070 CDD 2,810,180 1,531,547 2,116,800 2,316,800
Police 1,366,174 1,320,200 1,597,100 1,597,100
Fire 907,788 459,299 509,592 509,592
PW 125,100 51,891 287,000 287,000
PCS 859,122 543,814 957,066 960,363
Other 7,445,693 13,356,609 8,973,866 9,373,842
Total GF Revenue 50,129,870 56,062,166 58,321,639 59,675,767

General Fund Operating Budget by
Department

5 year Outlook

Capital Improvement Plan
FUND NAMES 2023/24 2024/25 2025/26 2026/27 2027/28
GENERAL FUND 893,000 705,000 65,000 65,000 65,000
MEASURE R 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 COMMUNITY DEV BLOCK GRANT 100,000 - - - -
CIVIC CENTER COMMON AREA 675,000 289,000 75,000 75,000 75,000 LIBRARY 260,000 - - - -
SPECIAL GRANTS 2,995,518 642,000 - 9,092,000 -
ARPA FUND-AMERICAN RELIEF PLAN 8,536,428 - - - -
GAS TAX 575,000 555,000 575,000 575,000 575,000
SB 1 - GAS TAX FUNDING 1,020,482 2,250,000 1,750,000 2,212,000 250,000 SALES TAX MEASURE Y 1,830,000 1,460,000 875,000 705,000 1,065,000 MEASURE D -TRANSPORTATION FUND 1,798,320 920,320 1,500,000 1,500,000 500,000 WASTE WATER 8,239,806 1,201,486 996,836 6,665,354 11,560,416 WATER 6,232,655 3,564,906 32,808,730 8,345,503 30,341,415 AIRPORT 570,000 25,000 125,000 - -
SOLID WASTE 775,000 472,808 981,958 910,930 1,555,310
LANDFILL CLOSURE 6,000,000 - - - -
WORKERS COMP/ LIABILITY 26,000
INFORMATION & TECHNOLOGY ISF 140,000 140,000 140,000 140,000 140,000 TOTALS 43,167,209 Page 446 of 705 14,725,520 42,392,524 32,785,787 48,627,141 General Fund
 Does the project address a City Council priority as outlined in the Strategic Plan
 Is the project addressing a liability for the city
 Is the infrastructure at risk for immediate failure or is this an emergency repair
 Is the project addressing a legislative mandate
 Does the project enhance the public image of the city  Is the project important for employee safety and/or comfort  Will the project result in operational cost savings
 Does the project maintain a current asset (as opposed to creating a new one)
 Does the project have matching or grant funds available FUND NAMES 2023/24 2024/25 2025/26 2026/27 2027/28 GENERAL FUND 893,000 705,000 65,000 65,000 65,000 Page 447 of 705 • Parks maintenance vehicles, senior
center elevator and mechanical
system upgrade, Marinovich
HVAC, River park perimeter
Parks:
• HVAC upgrades, new streetlights
installation, bobcat, DR mower
and equipment
Public
Works
Examples of Projects

 Grants Fund
 Lee Road Trail Phase 1, Road Maintenance, Safe routes to schools
 Sewer
 Main Switchgear and Sub Basin Sanitary infrastructure repairs Martinelli to Beach Streets
 Water
 Replace water mains, Browns Valley and Eureka Canyon
Fish Ladder
 Landfill
 Landfill Cell IV Opening
Examples Cont’d

ARPA Fund FY 23/24
Ramsay All Inclusive Playground $ 4,483,800
New Nature Center $ 2,933,628
City Wayfinding& Medians $ 750,000
Pothole and Road Repair 369,000
Economic Development 250,000

Operating Appropriations $2,705,309
Capital Appropriation $2,500,000
Measure R

Select Special Revenue Funds
0250-Library 0305 - Gas Tax 0306 - SB1
0310 -
Measure Y
Projected Fund Balance 6/30/23 2,100,000 513,173 2,349,945 3,926,502 Fiscal Year 2023-24
Total Gross Resources 4,316,211 1,314,339 1,055,000 5,226,409 Total Gross Uses 4,501,738 2,125,519 2,632,855 8,261,895 Surplus / (Shortfall) (185,527) (811,180) (1,577,855) (3,035,486) Fiscal Year 2024-25
Total Gross Resources 4,365,257 1,314,339 1,050,000 5,384,100 Total Gross Uses 4,412,959 1,570,268 2,250,000 6,628,738 Surplus / (Shortfall) (47,702) (255,929) (1,200,000) (1,244,638) Projected Fund Balance 6/30/25 1,866,771 (553,936) (427,910) (353,622)

Enterprise Funds

 UAL Payments projected to increase
 Currently in negotiation talks with 7 of our bargaining groups
 More electric cars on the road, gas tax, sb1 and
measure d reductions
 Inflation and higher interest rates
 Unfunded capital needs
Current Risks

 Reviewing and approving the budget
 Reviewing and approving fees for Parks and Airport
 Approving the GANN limit
 Adopting ordinance requesting County of Santa Cruz
to collect .077 on properties and allocating to
retirement fund
R Reminders

Questions?
25 Page 457 of 705

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C:\Program Files\eSCRIBE\TEMP\2071026523\2071026523,,,Zone 2 Reservoir Final MND.docx Agenda Report
MEETING DATE: Tuesday, June 13, 2023
TO: City Council
FROM: INTERIM PUBLIC WORKS & UTILITIES DIRECTOR VIDES

ASST PUBLIC WORKS & UTILITIES DIRECTOR GREEN
THROUGH: CITY MANAGER MENDEZ
SUBJECT: APPROVAL OF THE CALIFORNIA ENVIRONMENTAL QUALITY

ACT (CEQA) FINAL MITIGATED NEGATIVE DECLARATION AND

MITIGATION MONITORING AND REPORTING PROGRAM (MMRP)
FOR THE ZONE 2 WATER RESERVOIR AND BOOSTER PUMP

STATION MODIFICATION PROJECT AND AUTHORIZATION TO
FILE
RECOMMENDED ACTION:

It is recommended that Council approve the Final Initial Study/Mitigated Negative Declaration (IS/MND) prepared as part of the CEQA Initial Study on the Zone 2 Water.

Reservoir and Booster Pump Station Modification Project and authorize City Manager to file the project’s Notice of Determination with the Santa Cruz County Recorder’s Office, and to approve the project with the MMRP as conditions of approval.

BACKGROUND:

The City owns and operates a 3-million-gallon welded steel reservoir tank originally constructed approximately 35 years ago at the end of Emme Street behind Monument Lumber on the City’s airport property. This reservoir has not been recoated internally since its construction and needs repair and seismic risk mitigation improvements.

However, taking this reservoir out of service for several months would leave Pressure Zone 2, which supplies approximately half of the City’s water, without sufficient storage to meet the distribution system demands. A new reservoir was identified as a priority project to continue to provide safe and reliable operation of the existing water system.

DISCUSSION:

The City’s Proposed Project includes the construction and operation of a new up to 3 million gallon (MG) 36.5-foot high and up to 121-foot diameter concrete above-ground water storage tank at the site of the Watsonville Municipal Airport. The new tank will be located next and adjacent to the City’s existing 3 (MG) approximately 32-foot high 150- foot diameter water storage tank and will provide the necessary backup and emergency

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C:\Program Files\eSCRIBE\TEMP\2071026523\2071026523,,,Zone 2 Reservoir Final MND.docx storage in the event of a catastrophic event such as an earthquake, drought, or failure of the existing tank. Taking the existing tank out of service for an extended period to perform needed repairs and seismic risk improvements would leave the existing distribution system without sufficient storage to meet operational demands. Therefore, the existing tank cannot be taken out of service for repairs until the new tank is constructed. As a result, this proposed project is not to provide water supply for growth, but instead to continue to provide the City’s existing customers with a safe and reliable water supply.

The City prepared an Initial Study (IS) to evaluate the project for potential significant impacts on the environment and if they existed, how they could be mitigated to less than significant levels in accordance with CEQA requirements. The proposed new reservoir is located between Airport Safety Zones 5 and 6, immediately adjacent to the existing tank, and in an area identified by the California Department of Fish and Wildlife as being a potential habitat for the Santa Cruz tarplant which is listed as protected by the California Endangered Species Act. City staff coordinated closely with Airport staff to confirm potential impacts both during and following construction to meet the stringent Federal Aviation Act permitting requirements, as well as mitigation measures to reduce the potential impact to tarplant habitat to less than significant.

The IS concludes that the Project would not have a significant adverse effect on the environment if the mitigation measures identified in the IS and MMRP are adopted and made conditions of approval of the Project. The IS and proposed Mitigated Negative Declaration (MND) were made available for a 30-day review period beginning March 7, 2023, and ending April 7, 2023. This Final IS/MND was prepared according to CEQA Guidelines and considers and incorporates all comments received by the State Clearinghouse and other agencies during the 30-day public review period.

The City notified all commenting agencies in writing by June 1, 2023, a minimum of 10 calendar days prior to the date of this Council meeting where the Final IS/MND will be decided upon for approval in accordance with CEQA guidelines to ensure that interested parties have an opportunity to express their views regarding the environmental impacts of the project, and to ensure that information pertinent to permits and approvals is provided to decision makers for the City and CEQA responsible agencies.

Staff, therefore, recommends that Council approve the Final IS/MND and the MMRP for the Zone 2 Water Reservoir and Booster Pump Station Modification Project and direct the City Manager to file the Notice of Determination with the Santa Cruz County Recorder’s Office, and to approve the project with the MMRP as conditions of approval STRATEGIC PLAN:

This project is consistent with the following strategic plan goal:
3-Infrastructure & Environment
FINANCIAL IMPACT:

There are no financial impacts associated with this CEQA action.

6/8/2023 8:07:13 PM
C:\Program Files\eSCRIBE\TEMP\2071026523\2071026523,,,Zone 2 Reservoir Final MND.docx ALTERNATIVE ACTION:

City Council could elect not to adopt the proposed Final IS/MND. This could result in a significant delay to the construction of this much-needed project and could put the $5,000,000 grant the City has been awarded toward the construction of the project at risk.

Ultimately if the project is not constructed, the existing reservoir will continue to deteriorate and may eventually fail, and likely require emergency measures to replace the existing reservoir.

ATTACHMENTS AND/OR REFERENCES (If any):

None.

Reso No. ______ (CM) 1
Meeting Date: 061323 SWZ ______ RM ______ PWU ______
RESOLUTION NO.__________ (CM)

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE

ADOPTING THE FINAL INITIAL STUDY / MITIGATED NEGATIVE
DECLARATION (SCH# 2023030212) FOR CITY OF WATSONVILLE
ZONE 2 WATER RESERVOIR AND BOOSTER PUMP STATION

MODIFICATION PROJECT, IN COMPLIANCE WITH CALIFORNIA

ENVIRONMENTAL QUALITY ACT (CEQA), AND AUTHORIZING THE

CITY MANAGER OR DESIGNATED STAFF TO FILE THE NOTICE OF
DETERMINATION WITH THE SANTA CRUZ COUNTY RECORDER’S

OFFICE, AND APPROVE THE PROJECT WITH THE MMRP AS

CONDITIONS OF APPROVAL
WHEREAS, in 2020, the City of Watsonville developed a Water Master Plan which identified the Zone 2 Water Reservoir and Booster Pump Station Modification project; and WHEREAS, on January 19, 2021, the Council adopted Resolution No. 43-21 (CM), awarding contract to Carollo Engineers for design services for the Zone 2 Reservoir project, No. WA-20-14829; and
WHEREAS, the California Environmental Quality Act (Public Resources Code section 21000, et seq., and the California Environmental Quality Act Guidelines, 14 California Code of Regulations section 15000, et seq., collectively, “CEQA”) provides that when the initial study for a proposed project reveals that the project may have one or more significant effects on the environment, an EIR is usually required (Public Resources Code sections 21100, 21151; 14 California Code of Regulations sections 15064(f)(2) and 15070(b)). If, however, the project applicant revises the project, or agrees to revise the project, to eliminate or avoid all significant impacts by incorporating mitigation measures into the project, the agency may adopt a “mitigated” negative declaration (Public Resources Code sections 21064.5, 21080(c)(2); 14 California Code of Regulations sections 15064(f)(2) and 15070(b)); and

Reso No. ______ (CM) 4
Meeting Date: 061323
WHEREAS, an Initial Study was prepared for the proposed project (dated February 2023) by SMB Environmental in accordance with Section 15063 of the CEQA Guidelines. The Initial Study addresses the potential physical environmental effects of the proposed project for each of the environmental topics outlined in Appendix G of the CEQA Guidelines. Impacts to biological resources, cultural resources, hazards and hazardous materials, noise, transportation, and tribal cultural resources were found to be potentially significant but mitigable to less than significant. Impacts to other resource areas and environmental topics were found to be less than significant without mitigation; and WHEREAS, on March 7, 2023, City staff filed a Notice of Intent to Adopt a Mitigated Negative Declaration (“NOI”) and copies of the Initial Study and proposed Mitigated Negative Declaration (“IS/MND”) with the State Clearinghouse, and thereby initiated the 30-day public review period for the document on Tuesday, March 7, 2023, which closed at 5:00 p.m. on Friday, April 7, 2023. The NOI was also mailed to property owners and residents in the vicinity of the project site, interested parties, tribal representatives, and relevant state regulatory agencies; uploaded to the California State Clearinghouse; posted physically in three locations in the vicinity of the project site; and posted on the City Hall public notice board; and
WHEREAS, staff received three comments on the IS/MND during the public review period; and
WHEREAS, staff reviewed the Final Initial Study and Mitigated Negative Declaration (IS/MND), including the IS/MND, written responses to comments received on the IS/MND (“Response to Comments” document) and the Mitigation Monitoring and Reporting Program (MMRP) from SMB Environmental; and

Reso No. ______ (CM) 4
Meeting Date: 061323
WHEREAS, none of the information to the Zone 2 Water Reservoir and Booster Pump Station Modification Project IS/MND included in the related Response to Comments document amount to substantial revisions as defined in Section 15073.5 of the CEQA Guidelines. All of the changes reflected in the Response to Comments document amount to minor modifications which merely clarify, amplify, and make insignificant modifications to the IS/MND and as such there is no requirement to recirculate the IS/MND for additional public review and comment on account of the new information provided via the Response to Comments document; and WHEREAS, notice of time and place of the hearing to consider the adoption of the Final IS/MND and MMRP was given at the time and in the manner prescribed by the Zoning Ordinance (Part 9: Public Hearing Notice Provisions of Chapter 14-10:

Administration and Procedure) of the Watsonville Municipal Code. The matter called for hearing evidence both oral and documentary introduced and received, and the matter submitted for decision.

WHEREAS, the City Council has considered all evidence received, both oral and documentary, and the matter was submitted for decision.

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

The City Council does hereby adopt the following Findings and MMRP in support of the Initial Study / Mitigated Negative Declaration for the Zone 2 Water Reservoir and Booster Pump Station Modification project in compliance with the requirements of CEQA:

1. The above recitals are true and correct and material to this Resolution.

Reso No. ______ (CM) 4
Meeting Date: 061323

2. In adopting this Resolution and making the findings herein the City Council relied upon and hereby incorporates by reference all correspondence, staff reports, and other Project-related materials in the record.

3. The City, in its capacity as Lead Agency, has prepared a Final IS/MND for the project, which includes the original IS/MND, the Response to Comments document, and the IS/MND Errata document (“Final IS/MND”). The purpose of the Final IS/MND is to determine whether the project could have a potentially significant effect on the environment and to identify and impose appropriate project mitigation measures to avoid such impacts or reduce them to a less-than significant level.

4. The City Council has reviewed the Final IS/MND and the findings and MMRP and confirms that it reflects the City of Watsonville’s independent judgment and analysis;

5. The Final IS/MND and MMRP was prepared in accordance with all legal requirements, including all public notice and comment period requirements, set forth in CEQA;

6. The Final IS/MND examined all relevant environmental issues associated with the project, and is a complete and adequate environmental document under the requirements of CEQA. Specifically, the City Council supports the conclusions of the Initial Study and the mitigation measures proposed for the MND, as both documents are supported by substantial evidence in the record; and

7. None of the changes made in the Final IS/MND and none of the information included in the related Response to Comments amount to substantial revisions as defined in Section 15073.5 of the CEQA Guidelines. All of the changes

Reso No. ______ (CM) 4
Meeting Date: 061323
reflected in the Final IS/MND and information provided in the Response to Comments amount to minor modifications which merely clarify, amplify, and make insignificant modifications to the IS/MND and as such there is no requirement to recirculate the Final IS/MND for additional public review and comment;

8. There is no substantial evidence in the record that the project, as mitigated, will have a significant effect on the environment. As discussed and demonstrated in the Final IS/MND, mitigation measures have been identified in the IS/MND and MMRP that, when implemented, will avoid or reduce all of the project’s potential impacts to less-than-significant levels. The custodian of the documents and other materials which constitute the record of proceedings upon which this decision is based is the Public Works and Utilities Department of the City of Watsonville, 250 Main Street, Watsonville, CA 95076.

9. City Council hereby adopts the final IS/MND, approves the named project, and conditions that approval on compliance with all of the measures in the MMRP, which is also adopted here.

10. City Council hereby authorizes the City Manager or his delegee to file a NOD.
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City of Watsonville
Zone 2 Water Reservoir and Booster Pump Station
Modification Project
Final Initial Study / Mitigated Negative Declaration
SCH # 2023030212
Prepared by:

SMB Environmental, Inc.

June 2023

City of Watsonville Zone 2 Water Reservoir and Booster Pump Station Modification Project Final IS/MND
June 2023 i
Table of Contents
Chapter 1 Introduction................................................................................................1-1 Chapter 2 Comments Received..................................................................................2-1 Chapter 3 Responses to Comments..........................................................................3-1 Chapter 4 Revisions to the Public Draft IS/MND ......................................................4-1 Chapter 5 CEQA Findings and Determination:.........................................................5-1 Appendicies
Appendix A Mitigation Monitoring and Reporting Program.................................. A-1

City of Watsonville Zone 2 Water Reservoir and Booster Pump Station Modification Project Final IS/MND
June 2023 1-1
Chapter 1 Introduction
Pursuant to the California Environmental Quality Act (CEQA; Public Resources Code Section 21000, et seq. and CEQA Guidelines), The City of Watsonville (City) prepared a Public Draft Initial Study/Mitigated Negative Declaration (IS/MND) to evaluate potential environmental impacts associated with the City’s proposed Zone 2 Water Reservoir and Booster Pump Station Modification Project (Proposed Project).

The City is located along the Monterey Bay between the City of Santa Cruz and the City of Monterey, in the County of Santa Cruz. The City lies in the heart of the Pajaro Valley, surrounded by prime agricultural land and wetlands. The Proposed Project is located adjacent to the City’s Existing Zone 2 Water Storage Tank and the City of Watsonville Airport. The purpose of the Proposed Project is to construct a new tank for redundant storage for the City’s Zone 2 area to help the City maintain and continue to provide its existing customers with safe and reliable water supply.

The City’s Proposed Project includes the construction and operation of a new up to 3 milliongallon (MG) 36.5-foot high and up to 121-foot diameter concrete above ground water storage tank at the site of the Watsonville Municipal Airport. The new tank will be sited next and adjacent to the City’s existing 3 (MG) water storage tank and will provide the necessary back-up and emergency storage in the event of a catastrophic event such as an earthquake, drought or failure of the existing tank. The City’s existing approximately 32-foot high 150-foot diameter steel tank is nearing the end of its useful life and based on 2014 and 2019 inspections is suffering from internal corrosion. As a result, the existing storage tank will soon need to be rehabilitated and/or replaced and the City cannot risk taking the existing tank out of service until a/the new tank is constructed.

As a result, this Proposed Project is not to provide water supply for growth, but instead to continue to provide the City’s existing customers with safe and reliable water supply.

On March 7, 2023, to initiate public review of the Draft IS/MND, the City filed a Notice of Completion (NOC) for the project with the Governor’s Office of Planning and Research (State Clearinghouse or SCH) and a Notice of Availability (NOA) with the County of Santa Cruz and released the Public Draft IS/MND for a 30-day public review. The State Clearinghouse identified the Project with SCH # 2023030212. The 30-day public review period was established between March 7 and April 7, 2023, with copies of the Draft IS/MND available for review on the City’s website https://www.cityofwatsonville.org/833/Projects and at the addresses below:

City of Watsonville City of Watsonville Library
250 Main Street 275 Main Street, Suite 100
Watsonville, CA 95076 Watsonville, CA 95076
This Final IS/MND was prepared according to CEQA Guidelines and considers and incorporates all comments received by the State Clearinghouse and other agencies during the 30-day public review period. The purpose of this document is to clarify facts set forth in the February 2023 Public Draft IS/MND, as necessary, to ensure accuracy. The City must consider the IS/MND, together with any comments received, before approving the Proposed Project (Public Resources Code Section 21091(f); and CEQA Guidelines Section 15074). The City has no affirmative duty to prepare formal responses to comments on the Public IS/MND, but should have adequate information on the record explaining why the comments do/do not affect the conclusion that there

City of Watsonville Zone 2 Water Reservoir and Booster Pump Station Modification Project Final IS/MND
June 2023 1-2
are no potential significant environmental effects. The City is required to, however, notify, in writing, any commenting agencies of the date of the meeting on the Proposed Project for which an IS/MND is prepared and will be decided upon for approval (Public Resources Code Section 21092.5(b); and CEQA Guideline Section 15073).

This Final IS/MND is being distributed to agencies, stakeholder organizations, and individuals who commented on the Public Draft IS/MND to ensure that interested parties have an opportunity to express their views regarding the environmental impacts of the project, and to ensure that information pertinent to permits and approvals is provided to decision makers for the City and CEQA responsible agencies. Comments from the public have been incorporated into the Final IS/MND for the City’s City Council to consider whether to approve the Proposed Project. The City is scheduled to make a final decision on the Proposed Project at its regularly scheduled City Council Meeting on June 13, 2023 at 4:30 p.m. in the City Hall Council Chambers, 275 Main Street, Watsonville, CA 95076.

City of Watsonville Zone 2 Water Reservoir and Booster Pump Station Modification Project Final IS/MND
June 2023 2-1
Chapter 2 Comments Received
During the 30-day public review period (March 7 through April 7, 2023) the City received three (3) comment letters regarding the Proposed Project. The City has reviewed and considered all of the comments received as follows in Table 2-1 below. Copies of the comment letters received are attached.

TABLE 2-1

COMMENTS RECEIVED
Date Commenting Agency
Comment
Letter
March 29, 2023
Erin Chappell, Regional Manager - Bay Delta Region
Department of Fish and Wildlife, Bay Delta Region
2825 Cordelia Road, Suite 100
Fairfield, CA 94534
A
April 3, 2023
Lori Schmitz, Environmental Scientist
Division of Financial Assistance, Special Project Review Unit State Water Resources Control Board
1001 I Street, 16th floor
Sacramento, CA 95814
B
April 10, 2023
Antoinette Ranit, Attorney
Watsonville Pilots Association/ Law Firm of Wittwer/Parkin 335 Spreckles Drive, Suite H
Aptos, CA 95003
C

COMMENT LETTER A

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Comment Letter B
B-1

B-2

April 10, 2023

VIA EMAIL
Beau Kayser
Water Division Manager
City of Watsonville
250 Main Street
Watsonville, California 95076
[email protected]
Re: Comment on Mitigated Negative Declaration for
Zone 2 Water Reservoir and Booster Pump Station Modification Project Dear Mr. Kayser:

This law firm represents the Watsonville Pilots Association (“WPA”), one of the prevailing parties in Watsonville Pilots Association, et al. v. City of Watsonville (2010) 183 Cal.App.4th 1059 (WPA I). WPA is dedicated to protecting the safety of pilots and members of the public on the ground in and around the Watsonville Airport. WPA objects to the proposed construction of the Zone 2 Water Reservoir and Booster Pump Station Modification Project, which involves the construction and operation of a new up to 3-million gallon (MG) 36.5-foot high and up to 121-foot diameter concrete above ground water storage tank at the site of the Watsonville Municipal Airport (“Project”). The Mitigated Negative Declaration (“MND”) that has been prepared for this Project is inadequate as a matter of law, as it essentially ignores the Project’s impacts on the Watsonville Airport and airport safety zone 5. In addition, this letter is to remind the City that it does not currently have the authority to issue permits for this application as the City’s General Plan does not yet comply with the Public Utilities Code as required by WPA I. Therefore, the Project must be denied.

I. Preparation of an Environmental Impact Report is Required for this Project As an initial and foremost matter, courts review negative declarations favorably to challengers. Because the City has only prepared a negative declaration for the Project, rather than an EIR, WPA need only make a “fair argument” that the Project causes a significant environmental impact. Courts have firmly established that the fair argument standard is a “low threshold test.” The Pocket Protectors v. City of Sacramento (“Pocket Protectors”) (2004) 124 Cal.App.4th 903, 928; No Oil Inc. v. City of Los Angeles (1974) 13 Cal.3d 68, 86; Laurel Heights Improvement Association v. Regents of the University of California (1993) 6 Cal.4th 1112, 1123- 1126. John R. Lawson Rock & Oil, Inc. v. State Air Resources Bd. (2018) 20 Cal.App.5th 77, 108- 109. “There is ‘a low threshold requirement for preparation of an EIR’, and a ‘preference for resolving doubts in favor of environmental review.’” Mejia v. City of Los Angeles (2005) 130

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Cal.App.4th 322, 332. “With certain limited exceptions, a public agency must prepare an EIR whenever substantial evidence supports a fair argument that a proposed project ‘may have a significant effect on the environment.’” Protect Niles v. City of Fremont (2018) 25 Cal.App.5th 1129, 1138-1139. Whether the administrative record contains “substantial evidence” in support of a “fair argument” sufficient to trigger a mandatory EIR is a question of law, not a question of fact. League for Protection of Oakland’s Architectural and Historic Resources v. City of Oakland (1997) 52 Cal.App.4th 896, 905; Architectural Heritage Association v. County of Monterey (2004) 122 Cal.App.4th 1095, 1122 (overruled in part on other grounds in Friends of Willow Glen Trestle v. City of San Jose (2016) 2 Cal.App.5th 457, 460). Therefore, under the fair argument standard, “deference to the agency’s determination is not appropriate and its decision not to require an EIR can be upheld only when there is no credible evidence to the contrary.” Sierra Club v. County of Sonoma (1992) 6 Cal App 4th 1307, 1318; see also, Stanislaus Audubon Society, Inc. v. County of Stanislaus (1995) 33 Cal.App.4th 144; Quail Botanical Gardens v. City of Encinitas (1994) 29 Cal.App.4th 1597 (rejecting an approval of a negative declaration prepared for a golf course holding that “[a]pplication of [the fair argument] standard is a question of law and deference to the agency’s determination is not appropriate.”) Evidence supporting a fair argument need not be overwhelming, overpowering or uncontradicted. Friends of the Old Trees v. Department of Forestry and Fire Protection (1997) 52 Cal.App.4th 1383, 1402. Instead, substantial evidence to support a fair argument simply means “information and reasonable inferences from this information that a fair argument can be made to support a conclusion, even though other conclusions might also be reached.” 14 Cal.

Code Regs. § 15384; Pocket Protectors, supra 124 Cal.App.4th at 927-928; League for Protection of Oakland’s Architectural and Historic Resources v. City of Oakland, supra, 52 Cal.App.4th at 905.

A negative declaration is proper “only if project revisions would avoid or mitigate the potentially significant effects identified in an initial study ‘to a point where clearly no significant effect on the environment would occur, and ... there is no substantial evidence in light of the whole record before the public agency that the project, as revised, may have a significant effect on the environment.’” Mejia v. City of Los Angeles, supra, 130 Cal.App.4th at 331. Here, the MND is an inadequate environmental document because it fails to sufficiently analyze airportrelated safety and noise impacts as required by CEQA. A “negative declaration is inappropriate where the agency has failed either to provide an accurate project description or to gather information and undertake an adequate environmental analysis.” City of Redlands v. County of San Bernardino (2002) 96 Cal.App.4th 398, 406. As a result, the MND fails to provide the public and the decisionmakers adequate information regarding the Project’s potential environmental impacts. Thus, an EIR must be prepared. Cleveland National Forest Foundation v. San Diego Assn. of Governments (2017) 3 Cal.5th 497, 503.

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II. The Mitigated Negative Declaration Fails to Adequately Analyze AirportRelated Impacts The Mitigated Negative Declaration states that the Project is located within two miles of the Watsonville Municipal Airport and is within Watsonville Municipal Airport Safety Zone 5 (MND, p. 3-36.) Because of the Project’s proximity to the Watsonville Municipal Airport, the MND acknowledges, “the construction and/or operation of the Proposed Project could adversely affect the airport and/or airport operations, including, noise, take-offs, landings, flight patterns, safety, light, navigation, or communications between aircraft and the control tower within the Project area.” (MND, p. 3-36.) In addition, the Project’s location in “Zone 5 – Sideline Zone of the Airport’s Safety Compatibility Zone and is considered to be a moderate risk level where the percentage of accidents are in the 3 to 5 percent range and primarily due to aircraft losing directional control and veering off the side of the runway during take offs or landings and/or arrival.” (MND, p. 3-36.) However, despite the MND’s recognition of the Project’s various risks associated with its location, the MND fails to perform an adequate analysis to ensure the safe construction and operation of the Project.

As the California Airport Land Use Planning Handbook (“Handbook”) states, “Maintaining a high degree of safety as lands near airports are developed is clearly an important planning objective.” (Handbook, Appendix F, p. F-1.) Furthermore, While measurement of risks provides essential input to the making of public policy, it is not the only consideration. In our society, decisions about how to respond to many risks—particularly ones affecting many people or whole communities—are not the sole purview of experts. Moreover, such decisions are not based simply on technical analyses and data. The public’s perception of risks plays a major role as well. Perception is a key component in any assessment of societal risk.
(Handbook, Appendix F, p. F-3.) Here, the MND merely reiterates the general risks of construction within Safety Zone 5 that are set forth in the CDOA Handbook. The MND fails to include any analysis of the Project’s specific risks due to its location and therefore does not ensure safety.

The Handbook sets forth various risk assessment methods project proponents may employ. “Regardless of the method used to assess the risks, a decision still must be made as to what the public-policy response should be. The basic question to be asked is how much risk is acceptable.” (Handbook, Appendix F, p. F-13.) Moreover, the Handbook discloses that “The assessment of risks and determination of appropriate actions to be taken in response to those risks is a complex and often imprecise process.” (Handbook, Appendix F, p. F-2.) But instead of measuring and assessing the risks specific to the Project, the MND merely provides a general statement that the Project could theoretically impact airport operations without any sort of C-3
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analysis as to how the MND arrived at such conclusions. This is not an appropriate risk assessment of the Project.

It is well established law that under CEQA, “there must be a disclosure of the “analytic route the ... agency traveled from evidence to action.” Laurel Heights Improvement Assn. v.

Regents of University of California (1988) 47 Cal.3d 376, 404 citing Topanga Assn. for a Scenic Community v. County of Los Angeles (1974) 11 Cal.3d 506, 515. The MND performed no such analysis, and simply defers to a brief determination letter from the Federal Aviation Administration (FAA). However, because the MND lacks any analysis of the actual risks associated with the Project, it is not clear that the FAA was fully informed of the risks of the Project. Furthermore, the FAA does not determine compliance with the Handbook.

As mentioned above, the Project is up to 36.5-foot high, which is above the average height of a two-story home. The MND must analyze the impact associated with height. Again, no such analysis was performed. “Ultimately, the decisions we—as individuals or as a society— make in response to hazards come down to a question of our tolerance for or acceptance of the risks which are known or believed to be involved.” (Handbook, Appendix F, p. F-6.) Therefore, without such information it is impossible to know the risks that are being accepted, thus thwarting the central purpose of CEQA: “The ultimate inquiry, as case law and the CEQA guidelines make clear, is whether the EIR includes enough detail ‘to enable those who did not participate in its preparation to understand and to consider meaningfully the issues raised by the proposed project.’” Sierra Club v. County of Fresno (2018) 6 Cal.5th 502, 515.

The MND’s discussion of potential safety hazards is not only cursory, but also entirely flawed because the City has not yet incorporated the Handbook into its General Plan, as required by the State Aeronautic Act and the holding in WPA I. The court in Resource Defense Fund v.

County of Santa Cruz (1982) 133 Cal.App.3d 800, 806, held that “[s]ince consistency with the general plan is required, absence of a valid general plan, or valid relevant [] elements or components thereof, precludes enactment of zoning ordinances and the like.” Thus, without a valid general plan, the City cannot conclude the Project complies with the State Aeronautics Act and the Handbook. Therefore, a fair argument exists that the Project will create a significant impact.

III. The City Cannot Issue Land Use Approvals because the General Plan is Noncompliant with the State Aeronautics Act
The City cannot approve the Project, which is within an Airport Safety Zone, because the City’s General Plan is in violation of the State Aeronautics Act. Before the City can approve projects with its Airport Safety Zones, the City must update its General Plan to comply with the Public Utilities Code.

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safety hazards within areas around public airports to the extent that these areas are already not devoted to incompatible uses.” Pub. Util. Code § 21670(a)(2). In 2006, WPA filed a petition for writ of mandate challenging the City’s adoption of an updated City General Plan (the 2030 General Plan). (Santa Cruz Superior Court Case No. 154571.) The Santa Cruz Superior Court found that the City had violated both the State Aeronautics Act and the California Environmental Quality Act (CEQA), because, inter alia, the 2030 General Plan unlawfully modified Airport Safety Zone 3 and land use compatibility guidelines, and the EIR inadequately analyzed aviation impacts and traffic impacts and failed to consider a reasonable range of alternatives. The Court of Appeal upheld this judgment in WPA I.

The Court of Appeal explained that the Watsonville Airport is in a “no-procedure” county and that “an affected city in a no-procedure county must ‘accept’ and ‘put into effect’ the Handbook’s criteria by ‘unit[ing]’ the criteria with the city’s general plan, a very strong mandate.” WPA I at 1072. The Court further explained that “what we can glean from the legislative history” of the applicable “1994 amendment of Public Utilities Code Section 21670.1” is “perfectly consistent with requiring an affected city in a no-procedure county to adopt all of the Handbook’s criteria and inconsistent with allowing such city to choose to adopt only some of those criteria.” WPA I at 1073.

The Court of Appeal also stated that the City’s contention “lacks merit” when it claimed that “the Legislature did not intend to mandate that an affected city in a no-procedure county adopt the specific criteria in the Handbook but intended to require only that such a city adopt some subset of those criteria.” Id. The Court also explicitly rejected the City’s claim that “the contours of the[] zones and the nature of the compatibility criteria [both of which ‘chapter 9 of the Handbook contains’] are left to the discretion of the local agency because the criteria ‘depend on each locality’s answer to the basic questions’ about how much risk it is willing to accept [Italics added by Court.],” holding that “[t]his claim directly conflicts with the Legislature’s intent in enacting the 1994 legislation.” WPA I at 1076. The Court further stated that “it would defy the Legislature’s intent to conclude that the City has discretion to modify the criteria to suit itself based on the City’s own determination.” WPA I at 1077.

The Project cannot be approved until the City has converted the Handbook into mandatory provisions in its General Plan. State law establishes Airport Safety Zones around airports and makes compliance mandatory as to the Watsonville Airport. The WPA has successfully defended these mandatory Airport Safety Zones in Court twice to date: in WPA I and in Watsonville Pilots Association v. City of Watsonville, Case No. CV176416 (“WPA II”) where the Superior Court found that a revised 2030 General Plan again violated the Aeronautics Act because, among other reasons, it granted the City discretion in a no procedure county.

In fact, the City itself has admitted the lack of incorporation of the Handbook into the General Plan prohibits the City from approving development within the Airport Safety Zones. As City staff explained in a February 28, 2017, staff report for the Pajaro Valley High School Auditorium Project:

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In 2010, the Court of Appeal found that the City did not comply with the SAA, because it did not include the Handbook compatibility standards in its general plan. (Watsonville Pilots Ass’n v. City of Watsonville (2010) 183 Cal.App.4th 1059, 1079.) Santa Cruz County has been identified as being a “no procedures county.” (Handbook, p. 1-4.) This means that the County has not: (1) established an Airport Land Use Commission (ALUC) (2) adopted a resolution finding “no issues” affecting any airport; or (3) established an alternative procedure for airport planning. (Watsonville Pilots Ass’n, supra, 183 Cal.App.4th at p. 1071.) Because of this, the county and each affected city must adopt all of the Handbook’s criteria. (Id. at pp. 1071-72.) The City has no discretion—it must “accept” and “put into effect” the Handbook’s criteria by “uniting” the criteria with the City’s general plan, “a very strong mandate.” (Id. at pp. 1072.) In short, the City is required to adopt the compatibility criteria in the Handbook as part of its general plan. (Id. at p. 1079.) The City is also required to include all applicable federal regulations as part of its general and specific plans. (Handbook, p. 1-4; Pub. Util. Code, §21670.1, subd. (e).) The City must also submit its general and specific plans to the Division of Aeronautics for review. (Ibid.)....

Pursuant to the September 2014 Superior Court decision, Order and Writ, the Court ordered the EIR and related approvals for the 2030 General Plan be set aside (Attachment 6). The Court also prohibited the City from using the 2030 General Plan “or basing any action on or engaging in any activity pursuant to” the 2030 General Plan or resolutions, unless and until the environmental review and the 2030 General Plan and resolutions are revised to comply with the Court’s Statement of Decision and California law. (Order and Judgment, ¶3.)....
(February 28, 2017 staff report, p. 3-4.) City Staff ultimately recommended the denial of a permit for the Pajaro Valley Haigh School Auditorium Project, explaining:
“First, the City cannot determine consistency with the 2030 General Plan. The Court requires certain contents in the City’s 2030 General Plan. The City’s 2005 General Plan does not comply with the Court decisions. And, the 2030 General Plan has been voided and City is prohibited from basing any action on or engaging in any activity pursuant to the 2030 General Plan until the Writ is discharged.

The Courts made clear that “the General Plan must be submitted to the Department of Aeronautics upon its adoption and before returning it to the Court.” (Statement of Decision, p. 7:3-4.) Caltrans has objected to “piecemeal” review. (December 21, 2016 letter.) Without Caltrans’ complete review and approval, the City cannot get its General Plan approved and therefore cannot make the findings of compliance with its General Plan as required by the Court.

Accordingly, the Council’s approval of the CDP/SUP amendment would be challenged in Court as a “circumvention” of the Court’s decision. This could open the City up to challenges on the return or discharge of the Writ. (See Los Angeles Int’l Charter High C-4
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Sch. v. Los Angeles Unified Sch. Dist. (2012) 209 Cal.App.4th 1348, 1355 [petitioner opposed return on writ and appealed trial court’s discharge order]; City of Carmel-ByThe-Sea v. Board of Supervisors (1982) 137 Cal.App.3d 964, 970 [petitioner successfully moved for order finding respondent had not complied with writ].) The Superior Court retained jurisdiction and may take all steps necessary to enforce the writ.” Here, Caltrans has said that “[a]pproval of the use permit application and coastal development permit amendment request essentially circumvents the Superior Court’s orders and this is not acceptable.” (December 21, 2016 letter.) Caltrans is a party to the Superior Court lawsuit, so it may seek compliance with the Writ. If the City approves the amendment, Caltrans would say the City has not obeyed the Court’s order.

In summary, the City cannot make either of the required findings to approve the CDP/SUP amendment, until the 2030 General Plan has been submitted to Caltrans and the writ of mandate has been discharged.”
(February 28, 2017 staff report, p. 4, emphasis added.) Notably, the City also agreed in a Joint Stipulation and Order Re Partial Return to Writ of Mandate Enabling City Approval of Athletic Field Project and Auditorium Project for Pajaro Valley High School (“Stip and Order Re Partial Return”) that both WPA I and WPA II “ordered the CITY, inter alia, to comply with the State Aeronautics Act and this Court’s respective Statements of Decision and to take no action on development proposals within the Airport Influence Area until the CITY has duly incorporated the provisions of the Airport Handbook into the CITY General Plan.” (Stip and Order Re Partial Return, 8:24-28.) Moreover, this Stipulation and Order also states that “the CITY remains mandated to incorporate the Airport Handbook into its General Plan as ‘nondiscretionary’ standards, and utilize the most stringent of those Airport Handbook standards….” (Stip and Order Re Partial Return, 10:13-17.) The issues identified by City staff with regards to the Pajaro Valley Haigh School Auditorium Project remain an issue here: because the General Plan is still noncompliant with the State Aeronautics Act, no permits or any other land use approvals may be authorized at this time.

See Camp v. Board of Supervisors (1981) 123 Cal. App. 3d 334, 353 (stating that because a subdivision map was approved “at a time when there existed no adequate general plan, the Board . . . could not have legally found the subdivision consistent with the requisite general plan and thus that approval was unlawful and must be set aside.”). Thus, without a valid general plan, the City must take the position that it will not issue permits or otherwise make new land use decisions. See also Neighborhood Action Group v. County of Calaveras (1984)156 Cal.App.3d 1176, 1184-1185 (stating that a conditional use permit issued on the basis of invalid general plan is thereby itself invalid, to the extent that the “permitted use implicates a defective policy or standard in the general plan,” continuing on to state that “the scope of authority of the agency to enact a general plan and zoning ordinances and to apply them is governed by the requirements of state law. A permit action taken without compliance with the hierarchy of land use laws is ultra C-4
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Mr. Beau Kayser
Re: Zone 2 Water Reservoir and Booster Pump Station Modification April 10, 2023

vires as to any defect implicated by the uses sought by the permit”) (emphasis added); Friends of “B” Street v. City of Hayward (1980) 106 Cal.App.3d 988, 998 (“City approval of a proposed subdivision, construction of public improvements, and private sale of subdivided lots may be enjoined for lack of consistency of the subdivision map with the general plan.”) Again, under WPA I, the City Council does not have any discretion to modify the criteria set forth in the Handbook and cannot override it to approve an inconsistent project under any circumstances. WPA has successfully defended these mandatory Airport Safety Zones in Court twice to date. As a result of these Court cases, the most stringent of the land use controls contained in the CDOA Handbook are applicable to the area surrounding the Watsonville Airport. The MND even acknowledges that “Santa Cruz County has been identified as a ‘no procedure county’ as there is only one public use airport—the Watsonville Municipal Airport….” (MND, p. 69.)
The city must first adopt a General Plan that fully complies with WPA I and WPA II and fully incorporates the Handbook in a nondiscretionary fashion in the General Plan. For the foregoing reasons, the City Council cannot approve this Project.

Pursuant to Public Resources Code § 21167(f), we request that the City forward a Notice of Determination to this office if the Project is finally approved. That section provides:

If a person has made a written request to the public agency for a copy of the notice specified in Section 21108 or 21152 prior to the date on which the agency approves or determines to carry out the project, then not later than five days from the date of the agency’s action, the public agency shall deposit a written copy of the notice addressed to that person in the United States mail, first class postage prepaid.

Thank you for your consideration of these comments.

Very truly yours,

WITTWER PARKIN
Antoinette Ranit
cc: Client
Encls:

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EXHIBIT A
Exhibit A

C:\Users\alan.smith\Desktop\PVHS CDP Amendment Staff Report.smrev (003).doc\2/27/2017 2:47 PM\JM\dm City of Watsonville
Community Development Department

M E M O R A N D U M
DATE: February 27, 2017
TO: Charles A. Montoya, City Manager
FROM: Justin Meek, AICP, Principal Planner/Zoning Administrator SUBJECT: Consideration of a Resolution denying an amendment to Coastal Development Permit/Special Use Permit (CDP/SUP) No. 00-28 for the Pajaro Valley High School (PVHS) Auditorium Project.

AGENDA ITEM: February 28, 2017 City Council

RECOMMENDATION
Staff recommends that the City Council adopt a resolution denying an amendment to CDP/SUP No. 00-28 for the PVHS Auditorium Project.

BASIC PROJECT DATA
LOCATION: 500 Harkins Slough Road LOT SIZE: 32± acres APN: 018-281-63 ZONING / GENERAL PLAN DESIGNATION: CZ-C (Coastal Zone - C) / CZ (Coastal Zone) EXISTING USE: Public high school
PROPOSED USE: Public high school with new 15,380± square-foot auditorium building SURROUNDING USES: Private land under agricultural production and environmental management as open space
APPLICANT: Adam Lint, Supervisor of Facilities Planning Pajaro Valley Unified School District
294 Green Valley Road, Watsonville, CA 95076
PROPERTY OWNER: Pajaro Valley Unified School District
294 Green Valley Road, Watsonville, CA 95076
CITY COUNCIL 8.D.1.

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STAFF ACKNOLEDGEMENT -
Staff recognizes and supports every Council member’s concerns about PVHS getting the expansion they need, and thoroughly supports the children and families of Pajaro Valley High School; however the City must abide by State law and the decisions of the Santa Cruz County Superior Court and so the City cannot approve the permit based upon the following narrative:

BACKGROUND
Proposal
On November 22, 2016, the applicant, Pajaro Valley Unified School District (District), submitted an application for an amendment to CDP/SUP No. 00-28 to allow the construction of a new 15,380± square-foot auditorium building on a vacant 0.5± acre portion of the PVHS campus located at 500 Harkins Slough Road (APN 018-281-63). The project would construct a three-story, 30-foot-tall, 450-seat auditorium on the PVHS campus next to the cafeteria and lunch shelters (Attachment 1). This amendment to the CDP/SUP is for an Auditorium that never existed in the 2002 application..

On December 21, 2017, Caltrans Division of Aeronautics sent a letter in opposition to the City approving the project until the City adopts State airport land use compatibility standards from the State Airport Land Use Handbook into the City’s proposed 2030 general plan (Attachment 2).

On February 2, 2017, the City sent the District a letter explaining why the findings required to approve the amendment to SUP No. 00-28 cannot be made until the City has a general plan that complies with the State Aeronautics Act. (Attachment 3).

On February 10, 2017, the District requested the City process the District’s application for the CDP amendment anyway. (Attachment 4).

Site History
CDP/SUP No. 00-28 was approved by the Council on June 26, 2001, to allow construction of a 2,200 student high school by the District (Resolution No. 171-01 CM). The school was constructed in 2002-2003 and includes ten separate buildings clustered in the center of the site with a series of smaller one-story buildings along the eastern perimeter that step back to twostory buildings moving westerly on the site. In a 2001 memo from the California Coastal Commission (Coastal Commission) to the City and District, the Coastal Commission required a separate CDP or CDP amendment application for any future buildings and/or extension of utilities onto the subject site (Attachment 5).

PROCEDURE
Pursuant to subdivision (d) of Section 9-5.413 of the Watsonville Municipal Code (WMC), the Zoning Administrator shall refer any request for modifications to an approved coastal permit to the decision-making body that approved the coastal permit.

DISCUSSION

FINDINGS REQUIRED FOR APPROVAL
A modification request to an approved coastal permit may be granted only if the reviewing body determines that: (1) the proposed modification would not lessen or avoid the intended effect of the approved coastal permit; and (2) the modified project would be consistent with the Local Coastal Program. (WMC, §9-5.413, subd. (d).)

C:\Users\alan.smith\Desktop\PVHS CDP Amendment Staff Report.smrev (003).doc\2/27/2017 2:47 PM\JM\dm

The Local Coastal Program means a local government’s (a) land use plans, (b) zoning ordinances, (c) zoning district maps, and (d) within sensitive coastal resources areas, other implementing actions, which, when taken together, meet the requirements of, and implement the provisions and policies of, the California Coastal Act at the local level. (Pub. Resources Code, §30108.6.) In turn, “land use plan” means the relevant portion of a local government’s general plan, or local coastal element which are sufficiently detailed to indicate the kinds, location, and intensity of land uses, the applicable resource protection and development policies and, where necessary, a listing of implementing actions.” (Pub. Resources Code, §30108.5.)

To approve the CDP/SUP amendment, the City must find the project would not “lessen or avoid” the effect of the approved coastal permit, and determine consistency with the general plan, among other things.

LAND USES IN THE VICINITY OF THE WATSONVILLE MUNICIPAL AIRPORT The high school is located in Runway Protection Zone 6 Traffic Pattern Zone, for the Watsonville Municipal Airport. The City’s 2030 General Plan has been in litigation for several years. The Santa Cruz County Superior Court and the 6th District Court of Appeal have issued decisions that the Watsonville 2030 General Plan is legally defective, among other reasons, because the General Plan does not include the strictest interpretation of the California Airport Land Use Handbook (Handbook) as required by the California State Aeronautics Act (SAA) .

In 2010, the Court of Appeal found that the City did not comply with the SAA, because it did not include the Handbook compatibility standards in its general plan. (Watsonville Pilots Ass'n v. City of Watsonville (2010) 183 Cal.App.4th 1059, 1079.) Santa Cruz County has been identified as being a “no procedures county.” (Handbook, p. 1-4.) This means that the County has not: (1) established an Airport Land Use Commission (ALUC) (2) adopted a resolution finding “no issues” affecting any airport; or (3) established an alternative procedure for airport planning. (Watsonville Pilots Ass'n, supra, 183 Cal.App.4th at p. 1071.) Because of this, the county and each affected city must adopt all of the Handbook’s criteria. (Id. at pp. 1071-72.) The City has no discretion—it must “accept” and “put into effect” the Handbook’s criteria by “uniting” the criteria with the City’s general plan, “a very strong mandate.” (Id. at pp. 1072.) In short, the City is required to adopt the compatibility criteria in the Handbook as part of its general plan. (Id. at p. 1079.) The City is also required to include all applicable federal regulations as part of its general and specific plans. (Handbook, p. 1-4; Pub. Util. Code, §21670.1, subd. (e).) The City must also submit its general and specific plans to the Division of Aeronautics for review. (Ibid.)

Since the Court of Appeal opinion, the City has taken corrective actions to address the SAA and CEQA deficiencies. In 2013, the City certified a new Final EIR and approved a revised general plan amendment (2030 General Plan). However, a second lawsuit was filed and in September 2014, the Superior Court granted judgment against the City and issued a second writ of mandate.

Pursuant to the September 2014 Superior Court decision, Order and Writ, the Court ordered the EIR and related approvals for the 2030 General Plan be set aside (Attachment 6). The Court also prohibited the City from using the 2030 General Plan “or basing any action on or engaging in any activity pursuant to” the 2030 General Plan or resolutions, unless and until the

C:\Users\alan.smith\Desktop\PVHS CDP Amendment Staff Report.smrev (003).doc\2/27/2017 2:47 PM\JM\dm environmental review and the 2030 General Plan and resolutions are revised to comply with the Court’s Statement of Decision and California law. (Order and Judgment, ¶3.) The City is still working to comply with the Writ and California law (Attachment 7). City staff have worked for the past year with aviation consultants Mead & Hunt, the Watsonville Pilot’s Association and the Caltrans Division of Aeronautics to develop an Airport Land Use Compatibility Plan (ALUCP) that is intended to be a first step to comply with the Court’s decision finding deficiencies in the City’s draft 2030 General Plan and EIR (Attachment 8).

The ALUCP would provide appropriate airport land use compatibility standards to be incorporated in the City’s General Plan.

DIFFICULTIES IN MAKING THE REQUIRED FINDINGS
Based on the above, the City cannot approve the CDP/SUP amendment because the City cannot make the required findings regarding the effect of the amendment, or its consistency with the general plan, given the Writ and the lack of Caltrans input.

First, the City cannot determine consistency with the 2030 General Plan. The Court requires certain contents in the City’s 2030 General Plan. The City’s 2005 General Plan does not comply with the Court decisions. And, the 2030 General Plan has been voided and City is prohibited from basing any action on or engaging in any activity pursuant to the 2030 General Plan until the Writ is discharged.

The Courts made clear that “the General Plan must be submitted to the Department of Aeronautics upon its adoption and before returning it to the Court.” (Statement of Decision, p. 7:3-4.) Caltrans has objected to “piecemeal” review. (December 21, 2016 letter.) Without Caltrans’ complete review and approval, the City cannot get its General Plan approved and therefore cannot make the findings of compliance with its General Plan as required by the Court..

Accordingly, the Council’s approval of the CDP/SUP amendment would be challenged in Court as a “circumvention” of the Court’s decision. This could open the City up to challenges on the return or discharge of the Writ. (See Los Angeles Int’l Charter High Sch. v. Los Angeles Unified Sch. Dist. (2012) 209 Cal.App.4th 1348, 1355 [petitioner opposed return on writ and appealed trial court’s discharge order]; City of Carmel-By-The-Sea v. Board of Supervisors (1982) 137 Cal.App.3d 964, 970 [petitioner successfully moved for order finding respondent had not complied with writ].) The Superior Court retained jurisdiction and may take all steps necessary to enforce the writ.

Here, Caltrans has said that “[a]pproval of the use permit application and coastal development permit amendment request essentially circumvents the Superior Court’s orders and this is not acceptable.” (December 21, 2016 letter.) Caltrans is a party to the Superior Court lawsuit, so it may seek compliance with the Writ. If the City approves the amendment, Caltrans would say the City has not obeyed the Court’s order.

In summary, the City cannot make either of the required findings to approve the CDP/SUP amendment, until the 2030 General Plan has been submitted to Caltrans and the writ of mandate has been discharged.

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COASTAL PERMIT CHANGE APPEALS TO THE COASTAL COMMISSION Any action on the District’s coastal permit may be appealed to the Coastal Commission as described in WMC Section 9-5.410 if : (1) if the original coastal permit was appealable to the Coastal Commission; (2) the development authorized by the original coastal permit would be appealable pursuant to WMC Section 9-5.410 at the time the modification request is received by the City; or (3) if the modification requested is such that the proposed modified project would be appealable pursuant to WMC Section 9-5.410. (WMC, §9-5.413, subd. (d).) A modification request may be granted if the Coastal Commission, on appeal, determines that:
(1) the proposed modification would not lessen or avoid the intended effect of the approved coastal permit; and (2) the modified project would be consistent with the Local Coastal Program.

COASTAL PERMIT APPEALS TO THE COASTAL COMMISSION
Any major public works project is appealable to the Coastal Commission. (WMC, 9-5.410 subd. (b)(1)(ii), Pub. Resources Code, §30601, subd. (3), and Pub. Resources Code, §30603, subd. (a)(5).) During a telephone call with City staff, Coastal Commission staff said the PVHS Auditorium Project is a major public works project (personal communication, Susan Craig, Central Coast District Manager, January 30, 2017).

An appeal may be filed only by the applicant, an aggrieved person, or any two members of the Coastal Commission. An appeal shall be made in accordance with the appeal procedures contained in Article 4 (Administration and Procedure) of Chapter 5 (Coastal Zone Implementation Plan) of Title 9 (Planning and Zoning) of the Watsonville Municipal Code except that appeals by any two members of the Coastal Commission shall be filed before the effective date of the permit, or not later than ten working days following the date of receipt of the notice of final action in the Coastal Commission’s District Office, whichever is later.

Appeals by members of the Coastal Commission may be made following decisions of the reviewing body.

Grounds of appeal, pursuant to subsections (1)(i) and (1)(ii) of subsection (b) of WMC Section 9-5.410 are limited to an allegation that the development does not conform to the certified Local Coastal Program.

Appeals to the Coastal Commission must be filed with the Coastal Commission on forms prescribed by and available from the Coastal Commission.

CEQA
The District is the Lead Agency for reviewing and approving projects on its property. On September 14, 2016, the District adopted an Initial Study/Mitigated Negative Declaration for the PVHS Auditorium Project.

RECOMMENDED ACTION
City Staff and the City Council of the City of Watsonville clearly recognize and support the students and families of Pajaro Valley High School for the needed expansion and growth of the high school. However, the City has also identified the constraints agreed to by PVUSD, that the City cannot alone alleviate.

C:\Users\alan.smith\Desktop\PVHS CDP Amendment Staff Report.smrev (003).doc\2/27/2017 2:47 PM\JM\dm Staff recommends the Council deny the application thereby allowing the District to have a near term hearing before the Coastal Commission; if the Council follows staff recommendation and denies the application, the District can appeal immediately to the California Coastal Commission.

If the Council rejects staff recommendation and grants the application, a lawsuit challenging the Council’s decision is expected to soon follow and would have to be decided by the Superior Court, a lengthy process that could take years to complete. If the Superior Court says that the City correctly denied the application, the District will appeal to the Coastal Commission. If the Superior Court decides the City was wrong in denying the application, the Watsonville Pilot’s Association and CalTrans Division of Aeronautics will appeal to the Coastal Commission.

So either way there will be an appeal to the Coastal Commission. The only question is when:
immediately by the District or a few years from now by either the District or others.

If this is truly about the kids and students of PVHS, the appropriate Council action is to deny the application. There is nothing the City can do to expedite – regardless of what the families and kids have been told.

Staff therefore recommends the City Council adopt the attached Resolution denying an amendment to CDP/SUP No. 00-28 for the PVHS Auditorium Project because it cannot make the required findings.

FINANCIAL IMPACT
There is no negative fiscal impact to the City’s General Fund incurred by denying the proposed amendment to CDP/SUP No. 00-28 for the PVHS Auditorium Project.

ALTERNATIVES
None

ATTACHMENTS

1. Project Plans

2. Letter from Caltrans to the City (December 21, 2016)

3. Letter the City to District (February 2, 2017)

4. Letter from the District to the City (February 10, 2017)

5. Memorandum from Tami Grove, Coastal Commission Deputy Director, to John Doughty, City of Watsonville Community Development Director, John Casey, PVUSD Superintendent et al regarding New Millennium High School in Watsonville — Response to PVUSD’s September 13, 2001 Memo to the City of Watsonville (September 25, 2001)

6. Superior Court Order and Judgment (September 12, 2014)

7. Superior Court Writ of Mandamus (September 12, 2014)

8. Superior Court Statement of Decision (September 12, 2014) cc: City Attorney

Attachment 1
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Attachment 1
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STATE OF CALlFORNIA—CALIFORNlA STATE 1'RANSPO' ON AGENCY “ EDMUND G. BROWN JR. Governor

DEPARTMENT OF TRANSPORTATION
DIVISION OF AERONAUTICS — MS. #40
l l20 N STREET ‘
P. 0. BOX 942874 Serious‘ droughtl
SACRAMENTO, CA 94274-0001 H9117-Save Wat?”
PHONE (916) 654-4959
FAX (916) 653-9531
TTY 711
www dotca gov
December 21, 2016
Mr. Justin Meek, AICP, Principal Planner
Community Development Department
City of Watsonville
250 Main Street
Watsonville, CA 95076-5097
Dear Mr. Meek:

Thank you for providing the Pajaro Valley Unified School District’s (PVUSD) use permit (PP20l6- 192) and coastal development permit amendment request (CDP No. 00-28) application package to us for our review and comment. The postmark shows that the city of Watsonville (City) mailed these materials on November 29, 2016, and these were marked received by the California Department of Transportation, Division ofAeronautics (Division) on Tuesday, December 6, 2016.

As noted in the materials, the City requested comments by December 7, 2016. It is highly irregular for an agency to expect comments on such a short tum-around. In fact, we find it questionable and suggestive that the City may be neglecting court orders.

As you are aware, the Division responded via email on December 6, 2016, to an email dated November 29, 2016, that you sent to me regarding the proposed auditorium at Paj aro Valley High School by PVUSD. The next day, December 7, 2016, I received the application materials discussed herein. Our email response attached to the application materials regarding the auditorium remains unchanged.

Santa Cruz County Superior Court (Court) ordered the City to adopt general plan policies pertaining to airport land use compatibility. The Court determined that Santa Cruz County is a “no procedure county” and must comply with the Court’s order, which is still pending until the City files a return on the writ showing compliance. The Court’s decision mandates that the City adopt airport land use compatibility policies according to the strictest interpretation of the California Airport Land Use Planning Handbook (Handbook) in compliance with the State Aeronautics Act (SAA). This means that the matter is pending further Court action, and the Division will take the opportunity to comment at the appropriate time during this process, but not in a piecemeal manner.

Pursuant to California Public Utilities Code section 2l670(t), PVUSD is subject to airport land use laws and other requirements of the SAA, and is subject to the Court’s previous decisions (trial and appellate Courts), and the Court’s pending decision. With that in mind, the City is not authorized to pick and choose the application of Handbook policies at its discretion, but must use the strictest interpretation of Handbook’s definition of “existing land use” to comply with the Court orders.

Further, the Division is willing to review any agreement between the City and the Watsonville Pilot’s Association. The agreement must be consistent with the Court’s ruling regarding the strictest interpretation of the SAA and the Handbook criteria pertaining to these issues. This includes the proposal to build an additional building that would concentrate a higher intensity of “Provide a safe, sustainable, integrated, and efficient transportation system to enhance California's economy and livability”
Attachment 2
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Mr. Justin Meek
December 21, 2016

student in one location. This preliminary review would not be a substitute for the City in adopting the strictest airport land use compatibility policies as required by Santa Cruz County Superior Court. The Court ordered that “the general and specific plans shall be submitted upon adoption to the Division ofAeronautics” for review. Approval ofthe use permit application and coastal development permit amendment request essentially circumvents the Superior Court’s orders and this is not acceptable.

Please contact me at (916) 654-5314 or by email at [email protected] if you have any concerns or comments.

Sincerely,

ROBERT FIORE,
Associate Transportation Planner
c: Ms. Natalie Kirkish, Wittwer Parken LLP, 147 S. River Street, Suite 221, Santa Cruz, CA 95060-4540
Mr. John Randolph, Watsonville Pilots Association, P.O. Box 2074, Freedom, CA 95019-2074
Ms. Rainey Graeven, Coastal Program Analyst, California Coastal Commission, 725 Front Street, Santa Cruz, CA 95060-4538
"Provide a safe, sustainable, integrated, and efficient transportation system to enhance California '5‘ economy and livability"
Attachment 2
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CITY OF WATSONVILLE
“Opportunity through diversity; unity through cooperation” 250 Main Street  Watsonville  California  95076  (831) 768-3050 www.cityofwatsonville.org
P:\CURPLAN\Projects\PVHS Auditorium Project\CDP Denial Letter.docx

February 2, 2017
Adam Lint, Supervisor of Facilities Planning
Pajaro Valley Unified School District
Maintenance, Operations & Facilities Department
294 Green Valley Road
Watsonville, CA 95076
RE: PVHS Auditorium Project, Coastal Development Permit Amendment Dear Mr. Lint,
Thank you for your application submitted on November 22, 2016, for an amendment to Coastal Development Permit/Special Use Permit (CDP/SUP) No. 00-28 to allow construction of a new 15,380± square-foot auditorium building on a vacant 0.5± acre portion of the Pajaro Valley High School (PVHS) campus located at 500 Harkins Slough Road (APN 018-281-63).

The original CDP/SUP was approved by the City on June 26, 2001, to allow construction of a 2,200 student high school by the Pajaro Valley Unified School District (District). The school was constructed in 2002-2003 and includes ten separate buildings clustered in the center of the site with a series of smaller one-story buildings along the eastern perimeter that step back to twostory buildings moving westerly on the site. Any new buildings and/or extension of utilities onto subject site was identified in a 2001 letter from the California Coastal Commission (Coastal Commission) to the City, District and local State Assemblyman as requiring a separate CDP or CDP amendment application (Attachment E). The proposed amendment to the CDP/SUP was routed to City departments, Caltrans, and the Coastal Commission for review and comment because the project is located in the Coastal Zone “Area C” and airport influence area of the Watsonville Municipal Airport.

The City is constrained in reviewing and approving projects within an airport influence area, such as Safety Compatibility Zone 6 (Traffic Pattern Zone), because of past litigation and a pending decision on a writ of mandate. On March 21, 2008, the Superior Court of State of California for the County of Santa Cruz found that the City had violated both the State Aeronautics Act (SAA) and California Environmental Quality Act (CEQA), because, in part, the draft 2030 General Plan Update unlawfully modified airport land use compatibility guidelines, and the EIR inadequately analyzed aviation impacts. The Court issued a writ requiring the City incorporate airport land use compatibility policies into its general plan. This decision was later upheld upon appeal. The City therefore cannot approve this project because of the uncertainty created from not having an adopted general plan with airport land use compatibility policies that comply with the Court’s ruling.

Attachment 3
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PVHS Auditorium Project, Coastal Development Permit Amendment

250 Main Street  Watsonville  California  95076  (831) 768-3050 www.cityofwatsonville.org
The City and its consultants have worked for the past year with aviation consultants Mead & Hunt, the Watsonville Pilot’s Association and the Caltrans Division of Aeronautics to develop an Airport Land Use Compatibility Plan (ALUCP) that is intended to be a first step to comply with the Court decision finding deficiencies in the City’s draft 2030 General Plan and EIR. The ALUCP would provide appropriate airport land use compatibility policies to be incorporated in the City’s general plan.

Pajaro Valley High School is located in Safety Compatibility Zone 6. The boundary of Safety Compatibility Zone 6 is determined mathmatically based on criteria set forth in the Caltrans Airport Land Use Planning Handbook (Handbook). The Handbook lists children’s schools as a use that should be “limited” in Safety Compatibility Zone 6. Because no published decision nor the Superior Court decision has yet explained or interpreted the meaning of the word “limited” in the Handbook, it would be imprudent for City staff to recommend approving the proposed auditorium expansion to the City Council. Comments received from the Coastal Commission and Caltrans Division of Aeronautics are consistent with the City’s position.

California Coastal Commission staff directed City staff to consult with Caltrans Division of Aeronautics to resolve compatibility issues before processing the CDP/SUP amendment. In particular, Coastal Commission staff instructed City staff to consult Caltrans regarding any commitments to develop and adopt general plan policies related to airport land use compatibility.

Caltrans Division of Aeronautics indicated that they understood the Court ordered the City to adopt general plan policies pertaining to airport land use compatibility. In addition, Caltrans staff contend that the City must adopt airport land use compatibility policies according to the “strictest interpretation” of the Handbook. While the Court decision did not state that the City shall apply the “strictest interpretation” of the Handbook, it did state that “the City has absolutely no discretion whatsoever with respect to the Airport Land Use Planning Handbook.” 1 Caltrans staff also contend that pursuant to subdivision (f) of Section 216702 of the California Public Utilities Code (PUC) the District, albeit a subdivision of the State, is subject to the SAA, and the Court’s previous decisions and pending decision. Caltrans staff have said in an email to City staff dated December 6, 2016, that they are “willing to review what the City would consider to be the strictest interpretation of the SAA, the California Education Code regarding an additional building that would concentrate a higher intensity of students in one location, and the Handbook criteria pertaining to these issues.” Subsequently in a letter to staff dated December 21, 2016, Caltrans staff state, “the Division is willing to review any agreement between the City and the Watsonville Pilot’s Association. The agreement must be consistent with the Court’s ruling regarding the strictest interpretation of the SAA and the Handbook criteria pertaining to these issues” and “this preliminary review would not be a substitute for the City in adopting the

1 Watsonville Pilots Association v. City of Watsonville (2014), Case No. CV176416, Statement of Decision, p. 6. 2 (f) It is the intent of the Legislature to clarify that, for the purposes of this article that special districts, school districts, and community college districts are included among the local agencies that are subject to airport land use laws and other requirements of this article.

Attachment 3
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Attachment 3
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PVHS Auditorium Project, Coastal Development Permit Amendment

250 Main Street  Watsonville  California  95076  (831) 768-3050 www.cityofwatsonville.org
Bob Fiore, Office of Aviation Planning, Division of Aeronautics, California Department of Transportation, 1120 N Street, MS-40, Sacramento, CA 95814 Lori Ballance, Attorney, City Legal Counsel
Clarissa Canady, Attorney, District Legal Counsel
Attachment 3
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ATTACHMENT A | California Coastal Commission Correspondence A-1
From: Graeven, Rainey@Coastal <[email protected]> Sent: Mon, December 12, 2016 at 5:15 PM
To: Justin Meek <[email protected]>
Subject: Comments on Application No. pp 2016-192
Dear Justin,

Thank you for the opportunity to comment on the above-referenced Coastal Permit application. Please include these comments as part of the administrative record for this project, and distribute to the applicant and relevant State and resource agencies. Please also include Coastal Commission staff on any future routings, including other agency comments from this round of comments.

Project Description and Location:

The project proposes to amend CDP 00-28 to construct an approximately 15,380 square-foot auditorium on the Pajaro Valley on an undeveloped area on the eastern perimeter within the development envelope.

Comments:

1. Visual Simulations. The proposed project is located on the eastern perimeter of the development site, and according to the IS/ Negative Declaration, it will be visible from Highway 1.

As such, the application should require visual simulations of the project as seen from various angles/directions along Highway 1 (including at least one from Northbound lanes and one from southbound travel lanes) and any other protected viewsheds (e.g. Watsonville State Wildlife Area, Harkins Slough, etc.) in the project vicinity. The project simulations should include an image providing current existing conditions and as proposed on a single sheet for each ease of comparison.

2. Other Agency Approvals. Please consult with Caltrans’ Aeronautics Division regarding any commitments to develop and adopt General Plan Policies related to airport land use compatibility.

Most notably, because the Division’s review of the project may alter the ultimate siting and design, we would encourage the City to resolve these matters with the Division prior to processing the CDP for the project in order to avoid the need for amending and/or reprocessing the CDP to account for such changes.

Please let me know if you have any questions regarding the above comments.

Sincerely,

Rainey Graeven
Coastal Program Analyst, Central Coast District
California Coastal Commission
725 Front Street, Santa Cruz, CA 95060
(831) 427-4863
Attachment 3
5 of 19

ATTACHMENT B | Caltrans Correspondence
B-1
From: Fiore, Robert A@DOT <[email protected]>
Sent: Tue, December 6, 2016 at 9:51 AM
To: ron.bolyard, jeff.brown, don.haug, Justin Meek <[email protected]> Subject: Re: Division's Letter to the Dept of Education Justin,
It is my understanding that the Santa Cruz County Superior Court ordered the City to adopt General Plan policies pertaining to airport land use compatibility. The courts determined that Santa Cruz County is a “no procedure county” and must comply with the court’s order, which is still pending until the City files a return on the writ showing compliance. The court decisions mandate that the City must adopt airport land use compatibility policies according to the strictest interpretation of the California Land Use Planning Handbook (Handbook) in compliance with the State Aeronautics Act (SAA). This means that the matter is pending further court action, and the Division will take the opportunity to comment at the appropriate time during this process, but not in a piece meal manner.

Also be advised that pursuant to Public Utilities Code section 21670(f), Pajaro Valley Unified School District is subject to airport land use laws and other requirements of the SAA, and is subject to the court previous decisions (trial and appellate court), and the courts pending decision. With that in mind, the City is not authorized to pick and choose using its discretion, but use the strictest interpretation of Handbook’s definition of “existing land use” to comply with the court orders. With that in mind, the State is willing to review what the City would consider is the strictest interpretation of the SAA, the California Education Code regarding an additional building that would concentrate a higher intensity of students in one location, and the Handbook criteria pertaining to these issues.

Regards,

Bob Fiore
Office of Aviation Planning
Division of Aeronautics
California Department of Transportation
1120 N Street, MS-40
Sacramento, CA 95814
916-654-5314
[email protected]
From: Justin Meek <[email protected]>
Sent: Tuesday, November 29, 2016 at 3:20 PM
To: Fiore, Robert A@DOT <[email protected]>
Subject: Re: Division's Letter to the Dept of Education

Bob,

Thank you for sharing the letter sent to the Department of Education regarding the proposed PVHS campus expansion project consisting of a sports complex containing a football field with bleachers, running track and pool. The letter explains that the location of the proposed sports complex is on a 10- acre parcel Caltrans recommended against developing, in 2000, as one of the high school's site alternatives, and that Caltrans could not provide a school site evaluation recommendation for the sports complex project until litigation holding up the adoption of the City's General Plan was settled. The current PVHS campus is located south by southeast of the subject 10-acre parcel.

As part of your review of the proposed PVHS auditorium project, please address the following questions:

1. Is the existing PVHS campus considered "existing development" as discussed in Section 3.5 of the California Airport Land Use Planning Handbook (Caltrans 2011), and therefore not subject to an Airport Land Use Compatibility Plan (ALUCP) for the Watsonville Municipal Airport? Attachment 3
6 of 19

B-2

2. Would the addition of a building within the existing footprint of the PVHS campus that does not result in increasing the number of students and/or teachers onsite (i.e., the land use intensity) trigger a new "school site evaluation," pursuant to California Education Code Section 17215? In short, please address whether or not the school district has a vested right to build the auditorium because it would serve the current student body and is located on a 0.5± acre portion of the previously approved and built school site, and therefore would not be subject to Caltran's airport land use compatibility guidelines for potentially incompatible uses.

If an evaluation is deemed required, please note that the City of Watsonville is a suburban community and not located in unincorporated rural Santa Cruz County. According to the Figure 4G (Safety Zone 6 - Traffic Pattern Zone) of the Handbook, the upper range for the maximum non-residential intensity for a single site in a suburban community is 800 to 1,200 people per gross acre.

Thank you for your time in addressing these questions.

Regards,

Justin Meek, AICP
Principal Planner
City of Watsonville
831.768.3077
On Mon, Nov 28, 2016 at 1:54 PM, Fiore, Robert A@DOT <[email protected]> wrote:

Justin,
The attached letter was submitted to the California Department of Education regarding Pajaro Valley School District’s expansion of the school. The Division would cite the court’s decision and would enforce the strictest interpretation of the Handbook accordingly.

Regards,
Bob Fiore
Office of Aviation Planning
Division of Aeronautics
California Department of Transportation
1120 N Street, MS-40
Sacramento, CA 95814
916-654-5314
[email protected]
Attachment 3
7 of 19

B-3
Attachment 3
8 of 19

B-4
Attachment 3
9 of 19

ATTACHMENT C | Litigation Background
C-1
The draft WatsonvilleVista 2030 General Plan Update is currently in litigation due to noncompliance with the Caltrans Division of Aeronautics Airport Land Use Planning Handbook (2011). The Santa Cruz Superior Court has said that any development proposed within any Airport Safety Compatibility Zone will require compliance with the Handbook.

The City finds itself in this situation because of two lawsuits filed by the Watsonville Pilots Association regarding violation of the State Aeronautics Act (SAA), and other California Environmental Quality Act (CEQA) related matters in regard to proposed development surrounding the Airport. The City and Caltrans were defendants in both actions.

The first lawsuit was the subject of a published appellate court decision entitled the Watsonville Pilots Association v. City of Watsonville (2010) 183 Cal.App.4th 1059. The appellate court upheld the trial court’s recession of the City’s general plan, finding the City to be in violation of CEQA and the SAA. The appellate court identified Santa Cruz County to be a “no procedure” county and mandated compliance of the Handbook, without discretion.

In the second lawsuit, entitled the Watsonville Pilots Association v. City of Watsonville, case number CV 176416, the Santa Cruz Superior Court again rescinded the City’s general plan. This case is pending based on the City adopting a general plan in compliance with SAA. According to Caltrans, any review and/or discretionary actions taken prior to adopting an updated general plan would be premature and contrary to the writ of mandamus and the statement of decision (court order).

The City is in the process of drafting airport land use compatibility policies to be incorporated in the City’s general plan in compliance with the court order.

The City makes airport land use development decisions in the airport influence area, which should be based on its general plan incorporating the Handbook’s criteria. Without an adopted general plan in place, the City is unable to make any such decision in the event the City opposed Caltrans’ evaluation of and recommendations for proposed school site facilities.

Based on the above, with the Santa Cruz Superior Court granting a second writ against the City and retaining jurisdiction over the subject litigation until the City is in compliance with the SAA, the City is unable to review and approve the proposed PVHS Auditorium project until the aforementioned litigation is settled.

Attachment 3
10 of 19

ATTACHMENT D | Appeal Process & Criteria
D-1
Appealable Modification Request
Pursuant to WMC Section 9-5.413(d), any action on a coastal development permit modification request shall be appealable to the Coastal Commission as described in WMC Section 9-5.410 for the following coastal development permit modification requests: (1) if the original coastal development permit was appealable to the Coastal Commission; (2) if the development authorized by the original coastal development permit would be appealable pursuant to Section 9-5.410 at the time the modification request is received by the City; or (3) if the modification requested is such that the proposed modified project would be appealable pursuant to Section 9-5.410.

A modification request may be granted only if the reviewing body, either the City or the Coastal Commission if on appeal, determines that: (1) the proposed modification would not lessen or avoid the intended effect of the approved coastal development permit; and (2) the modified project would be consistent with the Local Coastal Program. If the modification request is denied by the City, or by the Coastal Commission if on appeal, then the terms and conditions of the original coastal development permit shall remain in effect.

Appeals to the Coastal Commission
Pursuant to WMC Section 9-5.410(b)(1)(ii), PRC Section 30601(3) and PRC Section 30603(a)(5), any major public works project is appealable to the Coastal Commission.

An appeal may be filed only by the applicant, an aggrieved person, or any two members of the Coastal Commission. An appeal shall be made in accordance with the appeal procedures contained in Article 4 (Administration and Procedure) of Chapter 5 (Coastal Zone Implementation Plan) of Title 9 (Planning and Zoning), except that appeals by any two members of the Coastal Commission shall be filed prior to the effective date of the permit, or not later than ten working days following the date of receipt of the notice of final action in the Coastal Commission’s District Office, whichever is later. Appeals by members of the Coastal Commission may be made following decisions of the reviewing body, Zoning Administrator, Planning Commission, or City Council.

Grounds of appeal, pursuant to subsections (1)(i) and (1)(ii) of subsection (b) of WMC Section 9-5.410 shall be limited to an allegation that the development does not conform to the certified Local Coastal Program.

Appeals to the Coastal Commission pursuant to this section must be filed with the Coastal Commission on forms prescribed by and available from the Coastal Commission.

Attachment 3
11 of 19

STATE OF CALiFOHNlA-THE RESOURCES AGENCY (WAY D/‘W5. Gavemw Efliawfifiikiifi $@rfie§?%Et.- Céiihiiihlififiifinhé
CENTRAL COAST ozsrmcr OFFICE
725 FRONT STREET. SUITE 300
SANTA CRUZ. CA 95050
PHONE: (331) 4274353
FAX: (331) 427-4577
Date: September 25, 2001 V
To: John Doughty, City of Watsonville Community Development Director John Casey, PVUSD Superintendent
Fred Keeley, 27th Assembly District Assemblyman
From: Tami Grove, Coastal Commission DeputyDirec
Subject: New Millennium High School in Watsonville — Response to PVUSD’s September 13, 2001 Memo to the City of Watsonville
The purpose of this memo is to follow-up for the record the substance of the series of phone conversations we’ve all had in the past week regarding the School District’s September 13, 2001 memo to the City of Watsonville in which the District provides a series of “clarifications” to the City’s coastal development permit (CDP) decision (City application number 00-28; since appealed to the Coastal Commission as appeal number A~3-WAT-01-070). In these conversations, this office has observed that while the District’s memo generally addresses the same issues raised in our August 30, 2001 memo, it does not fully track that memo, making it difficult to interpret the degree to which it answers the issues and potential solutions identified.

Now having had time to more fully analyze the District’s memo and discuss some of pur concerns, we write to describe for the District. our understanding as to how uncertainties in the memo can and will be addressed. Following our meeting this afternoon, we understand that the City and School Districtwill provide a further memo committing to these provisions prior to the Comrnission’s scheduled hearing on this item on October 10, 2001. As we discussed previously, the primary resolution we are seeking is agreement from the City and School District that the final project components discussed below will be submitted to the Comrnission’s Executive Director for review and approval prior to exercise of the City’s CDP. 1) Parcels. ~=~-—--
a) Although a complicated land deal appears to be in process, it has not been finalized for Area C properties. Prior to the exercise of the permit, the District will provide a graphic to the City and the Executive Director of the Coastal Commission that will identify all property lines resulting from the final purchase. The proposed school parcel(s) must be clearly identified as such; and the non-school parcel(s) likewise identified. Our understanding from the memo is that the District commits to not exercising the high school CDP until any such parcel(s) have been approved by a separate CDP. b) To facilitate understanding of the project and the local coastal program’s (LCP’s) legal document requirements, all required Area C easements and/or other property restrictions (e.g., for sewer and water non~access strips, agricultural uses, agricultural'buffers, open i
G:\Central Cc-ast\P .84 R‘.WAT\Appeals\New Millennium High School 2ClD‘i\A=3~W.£\"r=(n'~D70 (PVUSD NMHS) claritication memo omissions §.?.5.2001.doc
Attachment 3
12 of 19
ATTACHMENT E | Coastal Commission Memorandum

John Boughtyt City of Watsonville Community Eleveiopment Director John Casey, SVUSD Superintendent -
Fred Keeley, 27th Assembly District Assemblyman
New Millennium High School in Watsorwille
Senunnber25,200l

space uses, environmentally sensitive habitat area (ESI-IA), and ESHA buffers) will be clearly cross—referenced and keyed to the final resulting property lines graphic described above.

From what we understand from the memo, the roughly 10—acre future expansion area is proposed to be protected forschool use or, in the event that school use does not occur, agriculture, open space, and/or habitat uses. If this l0—acre area is so obtained, it must be clear that only school use (subjcc.t.to...future CDP applications). or agriculture, open-space, and/or habitat uses are allowed and this must be recorded as a deed restriction on the property. The deed restriction must limit the uses allowed on the site and must be submitted to the Executive Director of the Coastal Commission and the City Planning Director for review and approval prior to its recordation. The approved deed restriction must then be recorded prior to the exercise of the CDP. 2) Protecting ESHA and Agricultural Areas.
8)
b)
Our understanding is that the District intends to ensure that the LCP requirements for BS1-IA and agricultural areas and their buffers shall be met. This means that:
i) All areas shown on LUP Figure 2a as ESHA and/or ESHA buffer will be protected, enhanced, and/or restored for habitat purposes.
ii) That portion of Area C generally north of the school use, excluding the ESHA/ESI-IA buffer areas identified in the LCP, shall be protected for open space, agriculture or habitat purposes exclusively. .
iii) All Area C agricultural buffers will be maintained and managed to minimize land use conflicts with adjacent agricultural uses consistent with LCP requirements. Unless and until the LCP is modified by the Commission as currently requested by the City, a 200 foot agricultural buffer shall be maintained on the northern portion of the school parcels created.
iv) All appropriate LCP required easements shall be recorded over each ESHA, ESHA buffer, ‘agricultural (or open space or habitat) use area, and agricultural buffer. v) All ESHA and ESI-IA buffer area LCP requirements shall be addressed within a revised biological plan that is currently being prepared to address restoration, enhancementfand long—term management. The District will provide evidence that funding for the implementation ofthe plan over the life of the project is ensured (i:e., provisions are made for short term steps to be taken as well as long—term management and remediation as necessary to meet plan goals and objectives).

More specifically, from what you have provided, we understand that the District has committed to the following actions:

Attachment 3
13 of 19

John Eoughty, City at Watsonvitle Commtznityfievaloprnent Slrector John Casey, PVUSB Superintendent
Fred Keeley, 27th Assembly District Assemblyman
New Millennium High School in Wateorwilte
September 25, 2001

i) Executing and recording easements and/or conveying property or properties pursuant to all requirements of LCP Section 9-5.705(g)(5) (“Biological and Agricultural Easements”) for all ESHA, ESHA buffer, agricultural, and agricultural buffer areas on Area C (as above-described). All such easement areas shall be shown on, and cross—referenced to, the final parceiization graphic described above.

Preparing a revised wetland restoration, buffer, and landscape plan (“Plan”) developed with input from a qualified wetland biologist and hydrologist that applies to all of Coastal Zone Area C and provides for: (I) the restoration of Hanson Slough to a functional wetland; (2) the restoration of the Hanson Slough buffer to a functional wetland upland habitat; (3) the enhancement of habitat buffers for (a) the West Branch of Struve Slough (i.e., the entire upland slope east of the existing farm road shown as ESHA on Land Use Plan Figure 2a), (b) the riparian headwaters of Hanson Slough located along the western boundary of Area C, and (c) the California Department of Fish and Game reserve located along I-larkins Slough Road; and (4) incorporation of the emergent wetland located along Harlcins Slough Road. The Plan shall be consistent with LCP Section 9-5.705(c)(4)(ii) and 9~5.705(g)(9) (“Environmentally Sensitive Habitat Area Buffers”) requirements for each of the restoration/enhancement areas, and shall be consistent with all plan parameters established by LCP Section 9-5.7OS(g)(4) (“Biological Restoration Plans”). The Plan shall be submitted with written evidence from the appropriate official(s) from the United States Fish and Wildlife Service and the California Department of Fish and Game indicating that the Plan was developed in consultation with each agency -and has subsequently been distributed for their review. The Plan shall be submitted with written evidence indicating that all owners of property affected by the Plan consent to the implementation of the Plan on their property. The Plan shall be submitted with evidence of adequate funding with which to implement the Plan over the life of the project. The ‘Applicant shall undertake enhancement and restoration activities in accordance with the approved Plan. It is the responsibility of the Applicant, or of an appropriate third party if such party has accepted legally enforceable responsibility, to implement all enhancement and restoration measures specified in the Plan. c) In order to ensure LCP consigtency, prior to exercising the CD? (1) all required easements and (2) the revised wetland restoration, buffer, and landscape plan shall be - submitted to the Executive Director of the Coastal Commission and the City Planning Director for review and approval.
3) Water and Sewer Non»Access Easement.
a) From what we understand from the memo, the one=foot Water and Sewer Non’—Access Easement shall be located along the parcel boundaries of any school parcel(s) created in such a way as to form a complete polygon (i.e., to “surround” the school parcel(s) created as seen in a site plan view). The easement shall be consistent with all LCP requirements for the easement as per ll’ Section 9~5.705(c)(4)(ix)(ae) and shall be recorded free of Attachment 3
14 of 19

John Qoughty, City of Watsonville Community Development Director John Casey, PVUSQ Superintendent "
Fred Keeley, 27th assembly District Assemblyman
New Millennium High School in Watsonville
September 25, 2001

4)
5)
b)‘
prior liens and encumbrances that may affect the interest being conveyed. The one foot Water and Sewer Non—Access Easement shall be identified in relation to each possible parcelization scenario graphic.
ln order to ensure LCP consistency, prior to exercising the CDP, the Water and Sewer Non—Access Easement shall be submitted prior to recording for the review and approval of the Executive Director, the City Planning Director, and the City Attorney. The approved easement shall be recorded free of prior liens and encumbrances which may affect the interest being conveyed.

V '
Geotechnic al. ,1
3)
b)
The final grading plans shall include evidence indicating that the development proposed complies with all requirements of LCP Section 9—5.705(c)(5)(ii)(arn) regarding geotechnical investigation requirements, and is consistent with all elements of California Division of Mines and Geology Note 48 (“Checklists for the review of Geologic/Seismic Reports for California Public Schools, Hospitals, and Essential Services Buildings”).

There shall be at least one slope stability analysis for each slope based on the final grading plans. The final grading plans shall be submitted with a signed stamp from the consulting geotechnical engineer and/or geologist indicating that the development is safe from a geotechnical perspective in terms of issues including, but not limited to, seismically induced settlement, liquefaction, and lateral spreading.

In order to ensure'LCP consistency, prior to exercising the CDP, final grading plans with all required stamps and signatures shall be submitted to the Executive Director of the Coastal Commission and the City Planning Director for review and approval.

Water quality.
a)
b)
Commission water quality staff advise that the fossil filters identified by the District to filter and treat runoff from vehicular areas prior to discharge to the detention pond systemiare inadequate. Consistent with the District’s indication that the specific brand or technique for filtering runoff would be selected in consultation with Commission staff, we observe that alternative BM?s are necessary for this‘ water quality component. The more appropriate engineered filtration device specifically designed to remove vehicular contaminants is the Stormwater Management “Storm Filter” system (or its equivalent).

One such filtration and treatment device will be required for the west detention pond system and a second such device will be required for the east detention pond system in order to effectively remove the anticipated vehicular contaminants.

We are not aware of a management and maintenance plan for the detention pond water quality system. Such a plan is necessary to ensure that the system functions properly, and needs to be adequately responsive to the need for adaptive management (as to appropriate plantings, remediation techniques, etc.) as necessary. Ongoing maintenance and Attachment 3
15 of 19

John Doughty, City of Watsomrltle Community Development Director John Casey, PVUSD Superintendent
Fred Keeley, 27th Assembly District Assemblyman
New Millennium High $c:hool in Watsonville
September 25, 2001

d)
inspection parameters must be identified. All methods and timing must be identified (e. g., when and how accumulated sediment is to be removed, grass mowed, invasive vegetation removed, pond bottoms reestablished, etc). We understand the Districts commitment to water quality BMPS to extend to developing an adequate long—tem1 management and maintenance plan for the detention pond system and that this plan shall be provided with any final plan sheets involving storm water runoff and water quality measures.

We understand the District’s commitment to water quality BMPS to extend to all proposed outside storage areas and loading areas to indicate that they will be graded and paved and either: (1) surrounded by a low containment -berm; or (2) covered. All such areas will be: (1) equipped with storm drain valves which can be closed in the case of a spill; or (2) equipped with a wash down outlet to the sanitary sewer. We further understands the memo to indicate that such measures shall be identified on any final plan sheets involving storm water runoff and water quality measures.

In order to ensure LCP consistency, prior to exercising the CDP, all final plan sheets involving storm water runoff and water quality measures shall be submitted to the Executive Director of the Coastal Commission and the City Planning Director for review and approval.
6) Aeronautics Review.
a) The safety of the site for students and educators is addressed by the LC? in LUP Policy Ill.C.5.a.(4) and IP Section 9-5.705(c‘)(5)(i)(ad). Given the information provided and questions raised in the permit appeals to, the Commission, we are seeking, and understand that the Districtis committed to, full and complete consultation with experts in the Caltrans Division“ of Aeronautics in light of all the submitted information on: the site, planned school facilities on the site, typical airport operations (e.g., Watsonville Airport’s primary role as a amateur pilot flight instruction airport), and the sites location relative to typical Watsonville Airport operations. As you know, our cartographic evaluation of the submitted school facilities plan indicates that the northernmost portion of the school’s project plans extends into the airport runway’s inner turning zone. While we appreciate that th‘é"District has cornrnitted to a professional survey to map all aeronautics indicators for safety in relation to the school and the airport, we are concerned that this alone will not suffice to answer the final question of safety for aeronautics issues. Therefore, we suggest two options of resolution for the District to pursue: (1) revise its school facilities site plan so that it clearly falls within the area previously submitted for Caltrans’ evaluation; or (2) maintain the existing school facilities site plan. In either case, the District needs to superirnpose the specified aeronautics setback surveys over the final parcelization graphic (described above) and the facilities plan for the school and submit it to the Caltrans Aeronautics Division for their final review. This composite graphic needs to show the surveyed boundaries of all of Area C, the proposed parcels, the school facilities, and at least the end of the airport runway with a graphic scale provided for ease of reference. With this graphic submitted for their evaluation, the Caltrans Aeronautics Attachment 3
16 of 19

dehn Eoughty. City of Watsotwille Ccrnrnunity Development Director John Gasey, PVLESD Superintendent
Fred Keeley, 27th Assembly District Assemblyman
New Millennium High School in Wateonville
September 25, 2001

7)
b)
Division should be requested by the District to confirm that the final area in which school facilities are planned is safe for public school development with respect to potential airport safety concerns as required by the LCP.
in order to ensure LCP consistency, prior to exercising the CDP’, final plans with the required Caltrans Aeronautics Division safety confirmation shall be submitted to the Executive Director of the Coastal Commission and the City Planning Director for review and approval.

Revised site plan submitted with memo.
3)
b)
C)
.d)
Although implied, it needs to be clear, that created slopes“ ‘shall be contoured with natural undulations to more closely resemble natural slopes to the extent feasible.

The final treatment of the previously identified service road turn around needs to be specified. Fromthe site plan submitted with the memo, it appears as though the turnaround has been eliminated. The memo text, however, indicates that it may be “reconfigured, relocated or eliminated.” Our understanding from the submitted site plan is that it the turn around has been eliminated from the project.

We do not understand why the memo text indicates that the portable classrooms may be “reconfigured” when the site planidentifles them in specific locations and at specific elevations. We will expect the final site plan to indicate the final locations for the portables.

The memo identifies that the fences shall be revised to be consistent with the LCP. Since the LCP requires wood fencing, we understand this to mean that all fencing will be rustic split rail fencing of rough~hewn and unpainted wood timbers (e.g., cedar). The only exception is that rustic wood fencing with no gaps can be utilized if such fencing is required to screen sensitive habitat areas from development. Where containment is necessary for play areas (e.g., baseball fields, tennis courts, etc.), agricultural fencing (i.e., square-gapped metal fencing on wood posts) of the maximum gap size possible to contaidthe circutnferenceof ball used shall be allowed. Our understanding is that chain link and concrete pre—cast fenclpg will not be installed onythe school site.

The memo indicates that no unallowed uses or facilities shall be located within the ESHA, ESHA buffer, or Agricultural buffer areas. Since the previous site plan (i.e., prior to the memo) identified portions of ballfields, a chain link fence, and some storm drain utilities located within the 100’ buffer area for the CDFG reserve, we understand this to mean that these shall be removed and/or relocated out of the required buffer. We understand that the revised restoration plan is to incorporate the most southerly ponds and related infrastructure of the detention pond system (i.e., those located within required buffers) within the buffer enhancement component. As such, these could be considered part of the habitat buffer enhancement and thus could be considered allowed uses.

Attachment 3
17 of 19

John Doughty, City of Wateorwille Community Development Director John Casey, Pi/USD Superintendent
Fred Keeley, 27th Assembly District Assemblyman
New Millennium High School in Wazsonville
September 25, aaor

f)
s)
h)
i)
We understand the memo to indicate that there will be only two buildings with a height in excess of 30 feet from finished grade; neither of these two buildings will be taller than 37 feet from finished grade.

The memo indicates that the lighting plan will be reevaluated. We thus understand that there shall be no exterior night lighting, other than the minimum lighting necessary for pedestrian, vehicular, and safety purposes. All lighting shall be directed away from environmentally sensitive habitat areas and shall not be visible from any vantage point within environmentally sensitive habitat areas. All interiorelighting shall be directed away from windows which are visible from environmentally sensitive habitat areas. All lighting shall be downward directed and designed so that it does not produce any light or glares off—site, with particular emphasis to preserving the darkness present in existing nighttime Highway One views ofArea C.

We understand the memo to indicate that LCP requirements for agricultural buffers on the interior of Area C shall be met (i.e., currently a 200 foot buffer requirement), except that the 200 foot agricultural buffer on the northern portion of the school parcels created may be reduced if the Commission approves a pending LCP amendment request.

We understand the memo to indicate that the existing well will remain functional and the District will provide a delivery mechanism for adjacent farmers to use the well as directed by the LCP. We interpret this to mean that that the owner(s) and/or operator(s)_ of the agricultural operation on the property north of the school site have or shall have: (1) been made aware that the existing well-on the high school parcel is to be retained; (2) demonstrated a need for the well water; ‘(3) been offered the well water to be used for agricultural purposes on the remainder property; and (4) either (a) declined the use of the well water described in subsection (3) above, or (13) agreed to pay current market costs for the well water described in subsection (3) above. In the event of 400), the District shall make all necessary legal and physical arrangements with the adjacent farming operator for the agricultural water to be delivered to the northernmost property boundary of the school "site." Such costs to be shared equitably between the District and the agricultural USCIS . -JA
In order to ensure LCP consistency, prior to exercising the CDP, final site plans substantially in conformance with the site plans provided with the memo and showing the above clarifications shall be submitted to the Executive Director of the Coastal Commission and the City Planning Director for review and approval. 8) Additional CDP required.
a) The ambiguity in the memo and accompanying site plan could lead to some confusion regarding several elements that have been removed from the project andfor may be planned in the future. We understand the memo to indicate that, at a minimum,‘ the following SllE,l.l,l,,cI§.Cllll,fC;i separate CDP or CD? _amenrln1eynt applications should they be pursued in the future:

Attachment 3
18 of 19

John Doughty, filly of Watsonville Community Development Director John Casey, PVUSD Superintendent
Fred Keeley, 27th Assembly District Assemblyman
New Millennium High School in Watsomriile
September 25, 2001
?age 8
it) Since the District has chosen to remove building C at this time, any future construction of that building shall require a separate CD? or CDP amendment application.
ii) Any proposed building adjacent to building I (identified as a “future” building on School District plans) shall require a separate CD? or CD1? amendment application. iii) Any extension of utilities not shown on a final approved site plan shall require a separate CDP or CDP amendment application“.
iv) Any future development north of the parking lot shown on the site plan (including the referem:..ecl JO acre ,“expansior1 parcel”) shall require all Separate (EDP or CD}? amendnient application.
.6
Attachment 3
19 of 19

Attachment 4
1 of 1

STATE OF CALiFOHNlA-THE RESOURCES AGENCY (WAY D/‘W5. Gavemw Efliawfifiikiifi $@rfie§?%Et.- Céiihiiihlififiifinhé
CENTRAL COAST ozsrmcr OFFICE
725 FRONT STREET. SUITE 300
SANTA CRUZ. CA 95050
PHONE: (331) 4274353
FAX: (331) 427-4577
Date: September 25, 2001 V
To: John Doughty, City of Watsonville Community Development Director John Casey, PVUSD Superintendent
Fred Keeley, 27th Assembly District Assemblyman
From: Tami Grove, Coastal Commission DeputyDirec
Subject: New Millennium High School in Watsonville — Response to PVUSD’s September 13, 2001 Memo to the City of Watsonville
The purpose of this memo is to follow-up for the record the substance of the series of phone conversations we’ve all had in the past week regarding the School District’s September 13, 2001 memo to the City of Watsonville in which the District provides a series of “clarifications” to the City’s coastal development permit (CDP) decision (City application number 00-28; since appealed to the Coastal Commission as appeal number A~3-WAT-01-070). In these conversations, this office has observed that while the District’s memo generally addresses the same issues raised in our August 30, 2001 memo, it does not fully track that memo, making it difficult to interpret the degree to which it answers the issues and potential solutions identified.

Now having had time to more fully analyze the District’s memo and discuss some of pur concerns, we write to describe for the District. our understanding as to how uncertainties in the memo can and will be addressed. Following our meeting this afternoon, we understand that the City and School Districtwill provide a further memo committing to these provisions prior to the Comrnission’s scheduled hearing on this item on October 10, 2001. As we discussed previously, the primary resolution we are seeking is agreement from the City and School District that the final project components discussed below will be submitted to the Comrnission’s Executive Director for review and approval prior to exercise of the City’s CDP. 1) Parcels. ~=~-—--
a) Although a complicated land deal appears to be in process, it has not been finalized for Area C properties. Prior to the exercise of the permit, the District will provide a graphic to the City and the Executive Director of the Coastal Commission that will identify all property lines resulting from the final purchase. The proposed school parcel(s) must be clearly identified as such; and the non-school parcel(s) likewise identified. Our understanding from the memo is that the District commits to not exercising the high school CDP until any such parcel(s) have been approved by a separate CDP. b) To facilitate understanding of the project and the local coastal program’s (LCP’s) legal document requirements, all required Area C easements and/or other property restrictions (e.g., for sewer and water non~access strips, agricultural uses, agricultural'buffers, open i
G:\Central Cc-ast\P .84 R‘.WAT\Appeals\New Millennium High School 2ClD‘i\A=3~W.£\"r=(n'~D70 (PVUSD NMHS) claritication memo omissions §.?.5.2001.doc
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John Boughtyt City of Watsonville Community Eleveiopment Director John Casey, SVUSD Superintendent -
Fred Keeley, 27th Assembly District Assemblyman
New Millennium High School in Watsorwille
Senunnber25,200l

space uses, environmentally sensitive habitat area (ESI-IA), and ESHA buffers) will be clearly cross—referenced and keyed to the final resulting property lines graphic described above.

From what we understand from the memo, the roughly 10—acre future expansion area is proposed to be protected forschool use or, in the event that school use does not occur, agriculture, open space, and/or habitat uses. If this l0—acre area is so obtained, it must be clear that only school use (subjcc.t.to...future CDP applications). or agriculture, open-space, and/or habitat uses are allowed and this must be recorded as a deed restriction on the property. The deed restriction must limit the uses allowed on the site and must be submitted to the Executive Director of the Coastal Commission and the City Planning Director for review and approval prior to its recordation. The approved deed restriction must then be recorded prior to the exercise of the CDP. 2) Protecting ESHA and Agricultural Areas.
8)
b)
Our understanding is that the District intends to ensure that the LCP requirements for BS1-IA and agricultural areas and their buffers shall be met. This means that:
i) All areas shown on LUP Figure 2a as ESHA and/or ESHA buffer will be protected, enhanced, and/or restored for habitat purposes.
ii) That portion of Area C generally north of the school use, excluding the ESHA/ESI-IA buffer areas identified in the LCP, shall be protected for open space, agriculture or habitat purposes exclusively. .
iii) All Area C agricultural buffers will be maintained and managed to minimize land use conflicts with adjacent agricultural uses consistent with LCP requirements. Unless and until the LCP is modified by the Commission as currently requested by the City, a 200 foot agricultural buffer shall be maintained on the northern portion of the school parcels created.
iv) All appropriate LCP required easements shall be recorded over each ESHA, ESHA buffer, ‘agricultural (or open space or habitat) use area, and agricultural buffer. v) All ESHA and ESI-IA buffer area LCP requirements shall be addressed within a revised biological plan that is currently being prepared to address restoration, enhancementfand long—term management. The District will provide evidence that funding for the implementation ofthe plan over the life of the project is ensured (i:e., provisions are made for short term steps to be taken as well as long—term management and remediation as necessary to meet plan goals and objectives).

More specifically, from what you have provided, we understand that the District has committed to the following actions:

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John Eoughty, City at Watsonvitle Commtznityfievaloprnent Slrector John Casey, PVUSB Superintendent
Fred Keeley, 27th Assembly District Assemblyman
New Millennium High School in Wateorwilte
September 25, 2001

i) Executing and recording easements and/or conveying property or properties pursuant to all requirements of LCP Section 9-5.705(g)(5) (“Biological and Agricultural Easements”) for all ESHA, ESHA buffer, agricultural, and agricultural buffer areas on Area C (as above-described). All such easement areas shall be shown on, and cross—referenced to, the final parceiization graphic described above.

Preparing a revised wetland restoration, buffer, and landscape plan (“Plan”) developed with input from a qualified wetland biologist and hydrologist that applies to all of Coastal Zone Area C and provides for: (I) the restoration of Hanson Slough to a functional wetland; (2) the restoration of the Hanson Slough buffer to a functional wetland upland habitat; (3) the enhancement of habitat buffers for (a) the West Branch of Struve Slough (i.e., the entire upland slope east of the existing farm road shown as ESHA on Land Use Plan Figure 2a), (b) the riparian headwaters of Hanson Slough located along the western boundary of Area C, and (c) the California Department of Fish and Game reserve located along I-larkins Slough Road; and (4) incorporation of the emergent wetland located along Harlcins Slough Road. The Plan shall be consistent with LCP Section 9-5.705(c)(4)(ii) and 9~5.705(g)(9) (“Environmentally Sensitive Habitat Area Buffers”) requirements for each of the restoration/enhancement areas, and shall be consistent with all plan parameters established by LCP Section 9-5.7OS(g)(4) (“Biological Restoration Plans”). The Plan shall be submitted with written evidence from the appropriate official(s) from the United States Fish and Wildlife Service and the California Department of Fish and Game indicating that the Plan was developed in consultation with each agency -and has subsequently been distributed for their review. The Plan shall be submitted with written evidence indicating that all owners of property affected by the Plan consent to the implementation of the Plan on their property. The Plan shall be submitted with evidence of adequate funding with which to implement the Plan over the life of the project. The ‘Applicant shall undertake enhancement and restoration activities in accordance with the approved Plan. It is the responsibility of the Applicant, or of an appropriate third party if such party has accepted legally enforceable responsibility, to implement all enhancement and restoration measures specified in the Plan. c) In order to ensure LCP consigtency, prior to exercising the CD? (1) all required easements and (2) the revised wetland restoration, buffer, and landscape plan shall be - submitted to the Executive Director of the Coastal Commission and the City Planning Director for review and approval.
3) Water and Sewer Non»Access Easement.
a) From what we understand from the memo, the one=foot Water and Sewer Non’—Access Easement shall be located along the parcel boundaries of any school parcel(s) created in such a way as to form a complete polygon (i.e., to “surround” the school parcel(s) created as seen in a site plan view). The easement shall be consistent with all LCP requirements for the easement as per ll’ Section 9~5.705(c)(4)(ix)(ae) and shall be recorded free of Attachment 5
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