Watsonville City Council
June 25, 2024

Lease Agreement/Community Arts & Empowerment Page 27 of 27 Rev.: 06-12-2024
CITY OF WATSONVILLE, CALIFORNIA, a chartered California municipal corporation
“CITY"
Dated: ________________________
By:

Tamara Vides
Interim City Manager
ATTEST:

Irwin Ortiz
City Clerk
APPROVED AS TO FORM:

Samantha W. Zutler
City Attorney
“LESSEE”
COMMUNITY ARTS & EMPOWERMENT, a corporation
Dated: _________________________
By:

Name: Kathleen Crocetti
Title: Executive Director
Local Address: 240 Maple Ave. Watsonville, CA 95076
Email Address: [email protected]
Telephone: ( 831 ) 498-6048
DocuSign Envelope ID: 60B86000-B167-4A42-9A57-5C6A26448749 6/16/2024 | 9:56 PM PDT

Lease Agreement/Community Arts & Empowerment Exhibit A Page 1 of 1 Rev.: 06-12-2024

COMMERCIAL PROPERTY LEASE AGREEMENT

BY AND BETWEEN

CITY OF WATSONVILLE, CALIFORNIA
AND

COMMUNITY ARTS & EMPOWERMENT

EXHIBIT A

DESCRIPTION/SITE PLAN OF PREMISES

AND PROJECT
DocuSign Envelope ID: 60B86000-B167-4A42-9A57-5C6A26448749

Lease Agreement/Community Arts & Empowerment Exhibit B Page 1 of 1 Rev.: 06-012-2024

COMMERCIAL PROPERTY LEASE AGREEMENT

BY AND BETWEEN

CITY OF WATSONVILLE, CALIFORNIA
AND

COMMUNITY ARTS & EMPOWERMENT

EXHIBIT B

INVENTORY OF FIXTURES
The City shall provide the premises without any furniture, fixtures or equipment of any kind.

DocuSign Envelope ID: 60B86000-B167-4A42-9A57-5C6A26448749

Lease Agreement/Community Arts & Empowerment Exhibit C Page 1 of 2 Rev.: 06-12-2024

COMMERCIAL PROPERTY LEASE AGREEMENT

BY AND BETWEEN

CITY OF WATSONVILLE, CALIFORNIA
AND

COMMUNITY ARTS & EMPOWERMENT

EXHIBIT C

INSURANCE REQUIREMENTS
Lessee shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the Lessee’s operation and use of the leased premises. The cost of such insurance shall be borne by the Lessee.

A. MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:

1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Workers’ Compensation Insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury or disease. (This applies to lessees with employees).

3. Property insurance against all risks of loss to any tenant improvements or betterments, at full replacement cost with no coinsurance penalty provision.

If the Lessee maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Lessee. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

B. OTHER INSURANCE PROVISIONS:

The insurance policies are to contain, or be endorsed to contain, the following provisions:

1. Additional Insured Status: The City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Lessee including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can DocuSign Envelope ID: 60B86000-B167-4A42-9A57-5C6A26448749

Lease Agreement/Community Arts & Empowerment Exhibit C Page 2 of 2 Rev.: 06-12-2024
be provided in the form of an endorsement to the Lessee’s insurance (at least as broad as ISO Form CG 20 10).

2. Primary Coverage: For any claims related to this contract, the Lessee’s insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or selfinsurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Lessee’s insurance and shall not contribute with it.

3. Legal Liability Coverage: The property insurance is to be endorsed to include Legal Liability Coverage (ISO Form CP 00 40 04 02 or equivalent) with a limit equal to the replacement cost of the leased property.

4. Notice of Cancellation: Each insurance policy required above shall provide that coverage shall not be canceled, except with thirty (30) days’ prior written notice to the City.

5. Waiver of Subrogation: Lessee hereby grants to City a waiver of any right to subrogation which any insurer of said Lessee may acquire against the City by virtue of the payment of any loss under such insurance. Lessee agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

6. Acceptability of Insurers: Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A: VII, unless otherwise acceptable to the City.

7. Self-Insured Retentions: Self-insured retentions must be declared to and approved by the City. The City may require the Lessee to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.

8. Verification of Coverage: Lessee shall furnish the City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to City before occupying the premises. However, failure to obtain the required documents prior to the work beginning shall not waive the Lessee’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements, required by these specifications, at any time.

9. Special Risks or Circumstances: City reserves the right to modify these requirements at any time, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

DocuSign Envelope ID: 60B86000-B167-4A42-9A57-5C6A26448749

1 Reso No. ______ (CM)
Reference: Reso No. 320-21 (CM) (Amend)
Meeting Date: 062524 SWZ ______ TV ______ HR ______
RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE

APPROVING SECOND SIDE LETTER TO THE MEMORANDUM OF

UNDERSTANDING BETWEEN THE CITY OF WATSONVILLE AND THE
PUBLIC SAFETY MID-MANAGEMENT UNIT FROM JANUARY 1, 2022, TO DECEMBER 31, 2024
WHEREAS, in accordance with provisions of the Milias Myers Brown Act (Government Code section 3500 et seq.), City of Watsonville's Resolution No. 56-08 (CM), and City of Watsonville Administrative Rule V.1.1.,the bargaining team from the City met and conferred in good faith with the bargaining team from the Public Safety MidManagement Unit regarding the terms and conditions set forth in the Side Letter, a copy of which is attached hereto and incorporated herein by reference; and WHEREAS, the City of Watsonville and the Public Safety Mid-Management Unit on or about December 14, 2021, entered into a Memorandum of Understanding from January 1,2022 to December 31,2024 subject to Council approval; and WHEREAS, the Council adopted Resolution No. 320-21 (CM) on December 14, 2021, ratifying said Memorandum of Understanding from January 31, 2022 to December 31, 2024 between the City of Watsonville and the Public Safety Mid-Mangement Unit; and WHEREAS, on April 29, 2023, a Side Letter between the City of Watsonville and the Public Safety Mid-Management Unit was executed replacing sections 7.3 and 7.6 of the MOU modifying overtime language; and
WHEREAS, the parties have agreed to the terms set forth in the Second Side Letter, attached hereto and incorporated herein as “Exhibit A”; and

2 Reso No. ______ (CM)
Reference: Reso No. 320-21 (CM) (Amend)
Meeting Date: 062524
WHEREAS, the Council of the City of Watsonville after reviewing the Second Side Letter hereby determines to approve said Second Side Letter to the Memorandum of Understanding.

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

1. This action is exempt from the requirements of the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15378(b)(5), in that adopting a Resolution approving the Side Letter between the City of Watsonville and the Public Safety Mid-Management Unit does not meet CEQA’s definition of a “project,” because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment and if a “project,” is exempt under the “common sense” exception (14 Cal.

Code Regs. § 15061 (b)(3)) because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment.

2. That the Second Side Letter to the Memorandum of Understanding between the City of Watsonville and the Public Safety Mid-Management Unit, attached hereto marked Exhibit “A,” and incorporated herein by this reference, is hereby ratified. ********************************

SIDE LETTER AGREEMENT BETWEEN THE CITY OF WATSONVILLE AND PUBLIC

SAFETY MID MANAGEMENT UNIT
THIS SIDE LETTER AGREEMENT TO MEMORANDUM OF UNDERSTANDING is made and entered into this _____ day of __________, 2024 by and between the CITY OF WATSONVILLE, a municipal corporation, hereafter referred to as “City”, and The PUBLIC SAFETY MID-MANAGEMENT UNIT, hereafter referred to as “PSMM”

RECITALS
WHEREAS, on December 14, 2021, the City Council adopted Resolution No. 320-21 (CM), approving the 2022-2024 Memorandum of Understanding (MOU) between the City and the Public Safety Mid-Management Unit; and
WHEREAS, in an effort to address staffing vacancies in the police department and enhance the City’s ability to attract and retain highly qualified sworn staff in a very competitive job market; and
WHEREAS, the City is experiencing a vacancy rate that is unstainable leading to excessive overtime demands to ensure the ability to maintain adequate public safety services to the City; and
WHEREAS, the City desires to be proactive in order to enhance our ability to attract and retain, and promote, highly qualified sworn staff in a very competitive market; and WHEREAS, the City and the Police Mid Management Unit have agreed that an adjustment to salary and benefits will help address attraction and retention issues; and WHEREAS, the City and the Police Mid-Management Unit have agreed to an extension of the contract to allow time for a city-wide classification and compensation study to be completed; and
DocuSign Envelope ID: E3868E78-E2F0-4673-A68A-3C278D0577D0 Exhibit "A"

WHEREAS, the City of Watsonville has agreed to provide a 3% salary adjustment effective the first full pay period after City Council approval to all employees in the Police Sergeant classification; and
WHEREAS, the City of Watsonville and the Public Safety Mid-Management Unit have agreed to replace section 17.4 Longevity Pay to read “Effective the first full pay period after Council approval, any employee with at least 5 years of service as a sworn peace officer with the City of Watsonville shall receive a two (2%) Longevity Pay Premium, and any employee with at least 10 years of service as a sworn peace officer with the City of Watsonville shall receive an additional 2% Longevity Pay Premium, and any employee with at least 15 years of service as a sworn peace officer with the City of Watsonville shall receive an additional two and one-half percent (2.5%) Longevity Pay Premium (for a total of six and one-half percent (6.5%) longevity pay premium);” and
WHEREAS, The City of Watsonville and PSMM have agreed to extend the term of the contract from terminating on December 31, 2024 to terminating on June 30, 2025; and WHEREAS, All other terms of conditions of the MOU remain unchanged; NOW THEREFORE, the City and the Public Safety Mid-Management Unit agree as follows:

1. Provide a 3% salary increase to the Police Sergeant classification on the first full pay period after City Council approval and replace the 17.4 Longevity Pay Section with language adding 2.0% Longevity pay at 5 years and replacing 20 year Longevity Pay of

2.5% with 15 year Longevity Pay of 2.5%.

2. Contract term will be extended until June 30, 2025.

3. All other terms and of the MOU remain unchanged.

IN WITNESS WHEROF, the parties hereto have executed this Side Letter Agreement the day and year first hereinabove written.

PUBLIC SAFETY MID-MANAGEMENT UNIT
DocuSign Envelope ID: E3868E78-E2F0-4673-A68A-3C278D0577D0 Exhibit "A"

Date___________ ____________________________________
Charles Bailey, Police Sergeant

CITY OF WATSONVILLE
Date____________ _________________________________
Tamara Vides, Interim City Manager
Date____________ _________________________________
City Attorney
Date____________ _________________________________
City Clerk
DocuSign Envelope ID: E3868E78-E2F0-4673-A68A-3C278D0577D0 6/17/2024 | 2:07 PM PDT
Exhibit "A"

6/20/2024 2:34:13 PM
C:\Program Files\eSCRIBE\TEMP\1434985974\1434985974,,,Report - Order November 5, 2024 Election.docx Agenda Report
MEETING DATE: Tuesday, June 25, 2024
TO: City Council
FROM: CITY CLERK ORTIZ
SUBJECT: CALLING AND ORDERING MUNICIPAL GENERAL ELECTION FOR NOVEMBER 5, 2024
STATEMENT OF ISSUES:

The City will be holding its General Municipal Election on November 5, 2024, to fill three City Council vacancies, in Districts 1, 2, and 6. In order to consolidate with the County of Santa Cruz to hold said Election, the City Council must approve a series of resolutions.

RECOMMENDED ACTION:

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

1. Resolution Calling a General Municipal Election in the City of Watsonville for the election of one Council Member from each of District Numbers 1, 2, and 6 and Directing the Publication of Notice of a General Municipal Election in the City of Watsonville on November 5, 2024

2. Resolution Ordering an Election; Requesting the County of Santa Cruz to Conduct the Election, & Requesting the Consolidation of the General Statewide & Municipal Election in the City of Watsonville on November 5, 2024

3. Resolution Adopting Policies in regard to the Candidate’s Statements for the General Municipal Election to be Held on November 5, 2024 DISCUSSION:

Section 1300 of the Charter of the City of Watsonville specifies that “A General Municipal Election shall be held on the first Tuesday following the first Monday in November of each even numbered year.” In addition, Section 403 of the Charter of the City of Watsonville provides that a person shall be eligible to be nominated for City Council, only if thirty (30) days preceding the opening date for the filing of nomination papers is a resident and a registered qualified voter of this City and the District which the person seeks to represent.

Pursuant to Elections Code 10220, candidates for elective City office may be nominated during a nomination period specified by State law, which this year is July 15 through August 9, 2024.

California Elections Code section 10403 requires that the City Council adopt a resolution calling for a general municipal election to fill elective seats. In addition, State law requires

6/20/2024 2:34:13 PM
C:\Program Files\eSCRIBE\TEMP\1434985974\1434985974,,,Report - Order November 5, 2024 Election.docx that the Council adopt a resolution requesting the services of the County of Santa Cruz to conduct the election and consolidate it with the statewide General Election.

Section 13307 of the Elections Code provides certain guidelines for Candidate’s Statements for persons who run for elected office, including limiting candidate statements to 200 words.

The County Clerk and City of Watsonville staff will work collaboratively to provide necessary notice of the election, and to inform the public of the different options available for them to exercise their right to vote.

STRATEGIC PLAN:

The Election will allow voters to select their Council representative and vote on local measures, supporting Strategic Priority 6-Community Engagement & Well-Being and ensuring Priority 7 - Efficient and High Performing Government.

FINANCIAL IMPACT:

The County of Santa Cruz Elections Department estimates the cost between $2.50 to $4.50 per voter. The City of Watsonville currently has approximately 23,000 registered voters. Therefore, the cost could range from $57,500 to $103,500.

ALTERNATIVE ACTION:

None.

Reso No. ______ (CM)
Meeting Date: 062524 SWZ ______ TV ______
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE CALLING A GENERAL MUNICIPAL ELECTION IN THE

CITY OF WATSONVILLE FOR ELECTION OF ONE COUNCILMEMBER
FROM EACH DISTRICT NUMBERS 1, 2, AND 6 AND DIRECTING THE

PUBLICATION OF NOTICE OF A GENERAL MUNICIPAL ELECTION IN THE CITY OF WATSONVILLE ON NOVEMBER 5, 2024
WHEREAS, Section 1300 of the Charter of the City of Watsonville requires that a General Municipal Election be held on the first Tuesday following the first Monday in November of each even numbered year for the election of officers; and WHEREAS, Section 402 of the Charter of the City of Watsonville states that Council Members shall hold office for a term of four (4) years from and after the second Tuesday following their election and continuing until their respective successors qualify; and
WHEREAS, California Election Code Section 12101 requires the publication of a Notice of Election in a newspaper of general circulation which notice shall specify the date of election.

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

1. That a General Municipal Election is hereby called to be held in the City of Watsonville on Tuesday, November 5, 2024, for the purpose of electing one Council Member from Districts 1, 2, and 6 each for full four (4) year terms.

2. That the City Clerk is hereby directed to publish the Notice of Election in accordance with the requirements of the law to provide for the election of one Council Member from Districts 1, 2, and 6 each for full four (4) year terms; and election to be held on November 5, 2024, with the polls open between the hours of 7:00 A.M. and 8:00 P.M. *************************************

Reso No. (CM)
Meeting Date: 062524 SWZ ______ TV ______
4867-1043-7319 v1
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE ORDERING AN ELECTION; REQUESTING THE
COUNTY OF SANTA CRUZ CONDUCT THE ELECTION; AND

REQUESTING THE CONSOLIDATION OF THE GENERAL STATEWIDE

AND MUNICIPAL ELECTION IN THE CITY OF WATSONVILLE ON
NOVEMBER 5, 2024
WHEREAS, Section 1300 of the Charter of the City of Watsonville requires that a General Municipal Election be held on the first Tuesday following the first Monday in November of each even numbered year for the election of officers; and WHEREAS, pursuant to the Elections Code Section 10002, the City Council of the City of Watsonville may by resolution request the Board of Supervisors of the County of Santa Cruz to permit the County Clerk to render specified services to the City of Watsonville relating to the conduct of an election; and WHEREAS, subject to approval of the Board of Supervisors, these services shall be provided by the County Clerk; and
WHEREAS, the City Council of the City of Watsonville shall by resolution specify the services requested; and
WHEREAS, pursuant to Elections Code Section 10002, unless other arrangements satisfactory to the County have been made, the City shall reimburse the County in full for the services performed upon presentation of a bill to the City; and WHEREAS, pursuant to the Election Code Section 10400, whenever two or more elections, including bond elections, of the City, are called to be held on the same day, in the same territory, or in territory that is in part the same, they may be consolidated upon the order of the City Council calling the elections; and WHEREAS, pursuant to Elections Code 10400, such election for cities may be either completely or partially consolidated; and

Reso No. (CM)
Meeting Date: 062524
4867-1043-7319 v1
2 WHEREAS, pursuant to Elections Code Section 10403, whenever an election called by the City for the submission of any question, proposition, or office to be filled is to be consolidated with a statewide election, and the question, proposition, or office to be filled is to appear upon the same ballot as that provided for that statewide election, the City shall at least eighty-eight (88) days prior to the date of the election, file with the Board of Supervisors, and a copy with the elections official, a resolution of the City Council requesting the consolidation, and setting forth the exact form of any question, proposition, or office to be voted upon at the election, as it is to appear on the ballot, acknowledging that the consolidation election will be held and conducted in the manner prescribed in Section 10418. Upon such request, the Board of Supervisors may order the consolidation; and
WHEREAS, pursuant to Elections Code Section 10418, if consolidated, the consolidated election shall be held and conducted, election boards appointed, voting precincts designated, candidates nominated, ballots printed, polls opened and closed, voter challenges determined, ballots counted and returned, returns canvassed, results declared, certificates of election issued, recounts conducted, election contests presented, and all other proceedings incidental to and connected with the election shall be regulated and done in accordance with the provisions of law regulating the statewide or special election, or the election held pursuant to Section 1302 or 1303, as applicable; and
WHEREAS, the resolution requesting the consolidation shall be adopted and filed at the same time as the adoption of the ordinance, resolution, or order calling the election; and

Reso No. (CM)
Meeting Date: 062524
4867-1043-7319 v1
3 WHEREAS, various district, county, state and other political subdivision elections may be or have been called to be held on November 5, 2024.

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

1. That the City Council hereby orders an election be called and consolidated with any and all elections also called to be held on November 5, 2024, insofar as said elections are to be held in the same territory or in territory that is in part the same as the territory of the City of Watsonville and requests that the Board of Supervisors of the County of Santa Cruz order such consolidation under Elections Code Sections 10401, 10403, and 10418.

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

3. That the Santa Cruz County Elections Department conduct the election on November 5, 2024 for the purpose of electing the following:
(a) one Council Member from District 1 for a full term of four years to expire in 2028;
(b) one Council Member from District 2 for a full term of four years to expire in 2028;
(c) one Council Member from District 6 for a full term of four years to expire in 2028.

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

Reso No. (CM)
Meeting Date: 062524
4867-1043-7319 v1
4 5. The City Council of the City of Watsonville acknowledges that the consolidated election will be held and conducted in the manner prescribed by Elections Code section 10418

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

6. In all particulars not recited in this resolution, the election shall be held and conducted as provided by the Charter of the City of Watsonville and State law. ********************************

1 Reso No. (CM)
Meeting Date: 062524 SWZ ______ TV ______
RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE ADOPTING POLICIES IN REGARD TO THE
CANDIDATE’S STATEMENTS FOR THE GENERAL MUNICIPAL
ELECTION TO BE HELD ON NOVEMBER 5, 2024
WHEREAS, Section 13307 of the Elections Code of the State of California provides for Candidate’s Statements for persons who run for office of City Council Member for the City of Watsonville.

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

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

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

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

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

VIA EMAIL AND HAND DELIVERY
City of Watsonville
Watsonville City Council
275 Main Street
Suite 400 (4th Floor)
Watsonville, CA 95076
2546 Rolling Hills Ct.

Alamo, CA 94507
June 25, 2024
Re: City of Watsonville "Community/Neighborhood Meeting" to be Held on June 26, 2024, at Marinovich Park and Community Center Dear Members of the Council:

I'm presenting our citizen's report citing issues with a notice regarding the City of Watsonville1s "Community/Neighborhood Meeting" scheduled to take place on June 26, 2024 at Marinovich Park. Some neighbors received the notice; many did not. The notice for this meeting was apparently sent out on June 13, 2024. The purpose of the meeting appears to be that 'The City of Watsonville has recently become aware of issues affecting your neighborhood, and we would like to hear more from you." It is surprising how the City maintains it "recently" became aware of these issues when:
(1) In September 2023, your Planning Commissioner Dan Dodge opined on the open meth use in the neighborhood,
(2) There has been significant crime, including homicides, near the levee in the industrial zone,
(3) I personally brought up the crime. and vandalism occurring in the industrial zone during the March 23, 2024 Special Council Meeting, and

City of Watsonville
Watsonville City Council
June 25, 2024
Page2
(4) During that same meeting, Police Chief Zamora presented a map with blue dots that represented calls for service connected to anything to homelessness.

The preponderance of calls is in District 1 (with the size of the blue dots being proportional to the number of calls).
.

POLICE • ;,l·
"-
• Community Concerns
• . • • .. • • ....
• Business Community • • ' . . .... • •
• Drug Use
• Human Waste . • .. •
. •
• Crime

7. ... ..
.. ~ .. •I" .• ·•.. • : . • ,,;
• Safety
• Cleanups Overtime Hours: 503~ Total Cost: $47,568 (2023) • Time Spent on Calls
• Response-C.A.R.E. / P.S.S.
• Compassion
Moreover, Zamora added:
• • e • • •• • .. • • City Plazi.'l
• ~,: • • ~Park e
•
. ., .
• • ~ •• Parks nd
• ••• • . • __ -~ • Recreat ion
• \ • • W PO I .-
0 c rty P l~ :, •• O ld
Ll rn1 y City
Ho ll
"I believe that the volume of calls is higher. I also believe that some people have stopped calling the police because they just feel that we either don't respond or won't do anything. We're hamstrung by the way that the laws are written ... " Ironically, the notice doesn't specify what type of "issues" the City will discuss despite during the last City Council Meeting, Council Member Montesino stated that the meeting was to address crime. The notice does say that "this meeting will NOT address the potential Tiny Homes Project."
In addition to the vague and restrictive topic, the mailing protocol of this communication is a disaster. Again, some neighbors received it; many didn't. Failing to notice an underserved Latino population in District 1, is a pattern for the City Staff.

In September 2022, the City sent a notice regarding a community meeting regarding

,,
City of Watsonville
Watsonville City Council
June 25, 2024
Page3
CEIBA. The letter was sent on official Watsonville City Government letterhead and signed jointly by the City Manager and Ceiba's Principal. (See attached). Some stakeholders received it; many did not. It was also only in English.

It is unclear who exactly the City wants to hear from in District 1 when it fails to notify stakeholders in the neighborhood. Like in September 2022, some stakeholders received the notice; many didn't. It is notable that many of those people who have spoken in opposition to the Tiny Homes Project evidently weren't on the City's mailing list.

These repeating actions continue to undermine our confidence in the City's ability to exercise any fairness in its professional administrative duties regarding the impact of crime that inevitably occurs upon concentration of homeless people in an area.

Attachments (2):

1. City of Watsonville Community/Neighborhood Meeting notice for June 26, 2024

2. Letter dated September 27, 2022 from Marta Bulaich to the City of Watsonville regarding the City of Watsonville and Ceiba's "Information and Listening Session" Scheduled for September 29, 2022, at the Civic Plaza and attachment.

Watsonville CAUFORNlA
Community/Neighborhood Meeting
Reunion ComunitariaNecinal
June 26, 2024 I 26 de junio del 2024
6:00pm - 7:30pm
Marinovich Park and Community Center
120 2nd St, Watsonville, CA 95076

VIA HAND DELIVERY
City of Watsonville
Watsonville City Council
275 Main Street
Suite 400 (4th Floor)
Watsonville, CA 95076
2546 Rolling Hills Ct.
; Alamo, CA 94507
September 27, 2022
Re: City of Watsonville and Ceiba's "Information and Listening Session" Scheduled for September 29, 2022, at the Civic Plaza
Dear Members of the Council,
By way of introduction, I am a former resident of Watsonville, and my immediate family resides in Watsonville. I am also a property owner here and a member of a grassroots movement opposed to the Ceiba College Preparatory Academy ("Ceiba") spot zoning application. Last month, I presented material issues to the City Council regarding Ceiba's aggressive expansion plans and purchase of toxic waste properties.

As you know, the Ceiba charter school, located on industrial land along Riverside Drive, is operating under a temporary Use Permit that expires next year. Ceiba was granted that Use Permit in violation of the Watsonville industrial zone regulations and has been an objectionable adverse impact on the adjacent neighborhood since opening.

The Watsonville City Planning Department has formally acknowledged that the school is not a permitted use and, consequently, has not allowed the Use Permit to be modified regarding the expiration. Instead, the Planning Department has guided the school to pursue an amendment to change their industrial zoning to a children's school zoning.

However, in April of this year, the Planning Commission did not approve that amendment due to neighborhood opposition. Watsonville City Staff has been working with the school officials to try and make things appear better before the matter comes before the City Council for a final decision.

As part of that process, it appears that a sort of a governmental meeting, identified as an "information and listening session", has been arranged for this Thursday at the Civic Plaza building. Some households near the Ceiba school have received letters in the mail announcing that meeting. Some stakeholders, like myself, have not. (A copy of the letter is attached). It is unclear what mailing protocol the City used to notify residents.

There are several issues with the planned meeting and the City's letter.

City of Watsonville
Watsonville City Council
September 27, 2022
Despite the fact the letter was sent on official Watsonville City Governmental letterhead of the City Manager's office, the Ceiba School Principal's signature, name and title are at the end of the letter along with those of the City Manager.

The Ceiba Principal, Josh Ripp, is not a Watsonville City Official. Josh Ripp and the Ceiba School are the source of adverse impacts that resulted from the failure of urban planning in the Watsonville City Government. The Watsonville City Government is expected to be the guardian which upholds the public safeguards of the Zoning Code.

Placing the school principal's signature on City Government letterhead blurs the distinction between City Government and Ceiba and thus is deceptive to the public. Such deception is both unseemly and objectionable, particularly for an entity that is expected to be an honest broker of a zoning procedure.

It almost appears that the meeting is intended more for the parents of the Ceiba students to explain the status of the process, which is a valid thing to do. But a question arises as to why the notice was mailed to neighborhood residents who oppose the school operation.

If the meeting is intended for those residents as well, then another issue exists. That letter was distributed and written only in English. No one who reported receiving the letter has received a bi-lingual version with a Spanish translation.

Given that most of the adjacent residents are not English fluent, this appears to be a serious disservice to them in fairness and transparency of process.

The Ceiba school was established in the neighborhood through a mass of failed and defective planning procedure. It is notable that defects in your planning procedure regarding Ceiba are still happening now.

I will be reaching out to each of you in the coming weeks to share my ongoing concerns regarding Ceiba.

Attachment

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City of Watsonville
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September 20, 2022
Dear Valued Community Member,
I am reaching out to invite you to an information and listening session for the Ceiba College Prep general plan amendment and rezoning application. The purpose of the meeting is to provide you information on the current status of the process and also to answer your questions. The meeting will be held at the City of Watsonville Community Room located at: 275 Main St. 4th Floor on September 29, 2022 from 6:00 PM to 7:00 PM. Spanish translation and interpreter services will be provided. We will also be providing child care services for children ages 5-10 years old during the duration of the meeting.

The agenda for the meeting is as follows:

I. Introductions
II. Intent of the Meeting (Rene Mendez, City Manager)
Ill. Status of the Ceiba general plan amendment and rezoning application and next steps (Suzi Merriam, Community Development Director)
IV. Ceiba College Prep presentation and information (Josh Ripp, Head of School) I realize that you are probably very busy, but hopefully you are able to carve out some time to attend.

Sincerely,
Rene Mendez
City Manager
City of Watsonville
Josh Ripp
Head of School
Ceiba College Prep
\. 831-768-301Q
Ci citymanager@c:ityofwatsonville.org
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9 Administration
275 Main Street, Suite 400
Watsonl%.<e'hffliPtt 4

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September 20, 2022
Dear Valued Community Member,
I am reaching out to invite you to an information and listening session for the Ceiba College Prep general plan amendment and rezoning application, The purpose of the meeting is to provide you information on the current status of the process and also to answer your questions. The meeting will be held at the City of Watsonville Community Room located at: 275 Main St. 4th Floor on September 29, 2022 from 6:00 PM to 7:00 PM. Spanish translation and interpreter services will be provided. We will also be providing child care services for children ages 5-10 years old during the duration of the meeting.

The agenda for the meeting is as follows:

I. Introductions
II. Intent of the Meeting (Rene Mendez, City Manager)
Ill. Status of the Ceiba general plan amendment and rezoning application and next steps (Suzi Merriam, Community Development Director)
IV. Ceiba College Prep presentation and information (Josh Ripp, Head of School) I realize that you are probably very busy, but hopefully you are able to carve out some time to attend.

Sincerely,
Rene Mendez
City Manager
City of Watsonville
..:.

Josh Ripp
Head of School
Ceiba College Prep
\. 831-768-301Q
~ [email protected]
~~88)'8~nville.org
9 Administration
275 Main Street, Suite 400
Watson'A.ltbfo'htt1i~t 4

July 4th
Spirit of Watsonville Parade
𝗗𝗗𝗮𝗮𝘁𝘁𝗲𝗲: July 4th, 2024
𝗧𝗧𝗶𝗶𝗺𝗺𝗲𝗲: 12:30pm
Strawberry Festival
August 2-4
Fire in the Sky
August 31

Ohlone Pkwy
Maintenance Project

Fire Department's
Summer Youth Academy
Session 1 will run from July 8th to the 19th
Session 2 will run from July 22nd to August 2nd

MEAURE R
UPDATE

District 1 Community Meeting
June 26, 2024
6:00pm - 7:30pm
Marinovich Park & Community Center
120 2nd St, Watsonville, CA 95076 Page 317 of 477
Illegal Fireworks
Messaging & Enforcement
Reported through our Watsonville Police
mobile app or by calling 831-471-1151

City of Watsonville
Bicycle Facilities
Existing and Proposed Facilities
City Council
June 25, 2024

WHAT IT IS
• Policy Element in General Plan
• Vision for Connectivity and Mobility

WHAT IT IS NOT
• Final Design Guide
• Set in Stone

HOW WILL CITY USE IT
• Policy Decisions for Funding/Grants
• Starting Point for Designs
• New Projects & Programs:

Resurfacing Program
Safe Routes to School
Bicycle Network Map
Pennsylvania Dr @ Starlight Elementary School
Class IV – Protected Bikeway Page 321 of 477
Bicycle Network Map
Existing Conditions – Watsonville, CA
Last Formal Plan: 2005 General Plan
Updates: VISTA 2030 General Plan (Rescinded)
2012 Trails & Bicycle Master Plan
Downtown Complete Streets Plan (2019)
Complete Streets to Schools Plan (2020)
Downtown Watsonville Specific Plan (2023)
Map Shown: Field Verification (On-Going)
Straight Street Miles
Not Accounting for Two Directions
On One Street Page 322 of 477
CSMP
Bike Network MapBicycle Facility Types
Class I, Multi-Use Path Class II, Bike Lane
Class III, Bike Route Class IV, Protected Bikeway
(Proposed for Study as Part of Project
Implementations)
Preferred Treatment on Collector and Arterial Streets

Class I – Multi Use Trails
Existing Conditions – Watsonville, CA
Design Elements: Grade Separated from Vehicle Traffic
Min. 8 FT
Preferred Width. 10 – 12 FT
Paved. 2-FT D.G. Shoulder (Runners)
Watsonville: 12.9 Miles
Pennsylvania Dr – South of Winding Wy
Best Serve: Safe Routes to School
Recreational Use
Ex. Condition
Observations:

Pavement Maintenance Required
Remove Barrier Elements

Class II – Bike Lanes
Existing Conditions – Watsonville, CA
Design Elements: On Street – Buffer Preferred
Preferred Width. 6 FT
Green Bike Lane Markings
Sign Network Connections
Traffic Calming Plan
Watsonville: 8.0 Miles
S Green Valley Rd Best Serve: Commuter Routes
Safe Routes to School
Regional Connections
Ex. Condition
Observations:

Narrow Bike Lanes
Add Buffers where Feasible
Freedom Blvd at Callaghan Park

Class III – Bike Routes
Existing Conditions – Watsonville, CA
Design Elements: Shared Lane on Street
Green Sharrow Markers
Sign Network Connections
Watsonville: 4.0 Miles
Best Serve: Neighborhood - Safe Routes to
School
Constrained Commute Routes
(Super Sharrow Markings)
Ex. Condition
Observations:

Bike Route Signs Non-Standard
Use Greenback Sharrow at Sign
Locations
Freedom Blvd at Stanford St

Class IV – Protected Bikeways
Existing Conditions – Watsonville, CA
Design Elements: On Street w/Vertical Element in
Buffer Zones
Green Bike Lane Markings
Parking can Serve as Buffer Zone
Watsonville: 1.6 Miles
Best Serve: Commuter Routes
Safe Routes to School
Regional Connections
Ex. Condition
Observations:

Street Sweeping Required
Harkins Slough Rd
@ Sunset Cover
Pennsylvania Dr

Proposed Bicycle Network
Compiling past recommendations into the General Plan 2050 • Watsonville 2005 General Plan (1994)
•Draft VISTA 2030 General Plan (2008)
• Trails & Bicycle Master Plan (2012)
•Downtown Complete Streets Plan (2019)
• Complete Streets to Schools Plan (2020)
•Downtown Watsonville Specific Plan (2023)

Netherlands Study Visit 2024

Questions & Comments

ZERO EMISSION

PASSENGER RAIL

AND TRAIL PROJECT
June 2024
Sarah Christensen, SCCRTC Staff

Project Overview
• New high-capacity
passenger rail service
and stations on
approximately 22 miles
of the Santa Cruz Branch
Rail Line (SCBRL)
• 12 miles of Coastal Rail
Trail: Segments 13-20
and the Capitola Trestle
reach (Segment 11,
Phase 2)

Analysis of Conceptual Rail
Transit Vehicle Types

Rail Vehicle Types
• The vehicle type
selected will influence
the design of other
Project elements and
competitiveness for
future grant funding.
• Project team is seeking
feedback on which
vehicle type would be
most beneficial and
factors to be prioritized.

Initial Conceptual Alignment

Initial Conceptual Alignment
At this stage, the Project team is aiming to provide a refined design that:
• Fits within the existing right-of-way while accommodating both the rail and trail • Optimizes operations (transit headways and total travel times) • Allows for faster train travel speeds, where possible, to reduce end-to-end point total travel time

Initial Conceptual Alignment
• Provides a “first pass,” from which the
Project team will continue to develop a
refined conceptual alignment over the
coming months.
• Intent is to fit, to the extent feasible,
the rail and trail facilities within existing
right-of-way and optimize operations.
• Project team is evaluating a number of
potential conceptual solutions to
address constraints.
• Seeking community feedback to identify
concerns and ideas for improvements.

Initial Conceptual Alignment
Pajaro Station Page 339 of 477 9
Initial Conceptual Alignment

Initial Conceptual Alignment

Interactive Map

Community Engagement

Community Engagement
• Seeking feedback on initial
conceptual alignment and
rail transit vehicle types.
• Virtual and In-Person Open
Houses
• Partner agency briefings
• Presentations and
community engagement
events
• Request feedback by July
18, 2024

Next Steps

Upcoming Engagement Opportunities

Thank you!

From: City Council
To: Eduardo Montesino; Vanessa Quiroz; Maria Orozco; Kristal Salcido; Casey Clark; Jimmy Dutra; Ari Parker; cityclerk
Subject: FW: OK, here is what i think about rail and trail plan Date: Tuesday, June 25, 2024 9:03:53 PM
From: steve trujillo <[email protected]>
Sent: Tuesday, June 25, 2024 9:03:41 PM (UTC-08:00) Pacific Time (US & Canada) To: City Council <[email protected]>; [email protected] <[email protected]>; citymanager <[email protected]> Subject: OK, here is what i think about rail and trail plan

1. so what if it costs $200 million ? spread over a decade? we are trying to change from an exclusively car based society. we MUST make this change is our planet is to survive. PERIOD.

2.i like the SAN ANDREAS road and Beach street route. Councilmember Montesino is correct. we have some of the best beaches in CA ( the LA Times travel editor said so a few years ago). we need to PROMOTE THEM. and we need a rail trail route to do so.

3. the multiple car train is the way to go. no locomotives. and no light rail. we need freight rail. councilmember Parker is correct.

4. and the bike plan is a good one. the greater use of bikes around the city will help slow the hell down the traffic. i get honked at often for being too "slow". i drive no faster than the speed limit. every male under 30 thinks his car is a race car. but i have another motive: MAKE THEM READ MY LIBERAL, PROGRESSIVE, WOKE bumper stickers.
it was a good presentation. i am glad i stayed to hear all of it.

BUT WE NEED TO OUTLAW ALL THESE GODDAMN FIREWORKS ! THEY REALLY SUCK !!!

TRUSTEE TRUJILLO

6/20/2024 2:37:36 PM
C:\Program Files\eSCRIBE\TEMP\14373265033\14373265033,,,Report - Annual Budget Plan FY2024-2025 and Related Actions .docx Agenda Report
MEETING DATE: Tuesday, June 25, 2024
TO: City Council
FROM: ADMINISTRATIVE SERVICES DIRECTOR DURAN
SUBJECT: RECOMMENDED BUDGET FOR FISCAL YEARS 2024-25 AND

RELATED ACTIONS
RECOMMENDED ACTION:

It is recommended that the City Council and Successor Agency and Successor Housing Agency Boards of the City of Watsonville review the proposed FY 2024-25 Budget Plan and take the following actions and any appropriate motions:
1) Adopt a Resolution adopting the FY 2024-25 Budget Plan, providing certain transfers of funds & approving the Five-Year Capital Improvement Program. 2) Adopt a Resolution adopting a Hydrant Meter Deposit. 3) Adopt a Resolution adopting a Commercial Container Contamination Fee. 4) Adopt a Resolution establishing the “Total Annual Appropriations” pursuant to State Constitution Article XIII-B for Fiscal Year FY 2024-25 (Proposition 4 GANN spending limit). 5) Adopt an 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, 2024, to June 30, 2025, at the levy rate of 0.077% and allocating proceeds to the Retirement Fund. 6) Adopt a Successor Housing Resolution authorizing the expenditure of low and moderateincome housing funds. 7) Adopt a 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.
8) Adopt a resolution authorizing the Finance Department to prepare open purchase orders or “not to exceed contracts” in the amount of $200,000 each to facilitate small jobs under $10,000 for the following vendors: Pajaro Valley Fabrication, Arata, National Truck Sales and Service, Pajaro Valley Printing, Fastenal and AMS Oil.

DISCUSSION:

A summary of the proposed budget for major funds is shown below.

6/20/2024 2:37:36 PM
C:\Program Files\eSCRIBE\TEMP\14373265033\14373265033,,,Report - Annual Budget Plan FY2024-2025 and Related Actions .docx Table 1: Fiscal Year FY 2024-25 Budget Summary
Budget appropriations for fiscal year 2024-25 are $278,694,533.

Every two years, the City of Watsonville adopts a comprehensive two-year budget. The City is in its second year of a 2-year budget plan. Today, we are bringing the second-year budget into consideration. This new budget cycle began with the presentation of the Mid-Year Budget report on February 2024 to the City Council. During this presentation, the Council received an estimate of the current year budget activity, a preview to the FY 2024-25 budget, and a report on the performance of the City for the fiscal year ending June 30, 2024.

This budget report was prepared to provide new and updated information. This allows for an expedited budget review and adoption process. We are presenting a budget that will provide for proposed budget savings to present a balanced General Fund budget. This is a balanced budget that maintains Council approved reserves. Today, the City Council is conducting a second study session on the proposed budget for the next fiscal year and is considering it for adoption.

Our revenues have increased from the draft budget to this final document is in the amount of $10,686,832, most of this revenue is made up of grant revenue. Additionally, the increase in appropriation requests is $11,038,801. A detailed line-item explanation of each of these changes requested is included as “Exhibit B”, this document represents our “technical changes”. This document includes the identified changes from the draft budget document to the final budget document. Most of the line items requested in this document stem from the CIP carryover projects and their respective grant revenue line items. These projects had yet to be added to the budget document. However, we are required to re-appropriate these previously budgeted but incomplete projects.

City Charter. Under the Charter of the City of Watsonville, sections 1103-1105 instruct that the City Manager must prepare and present a proposed budget for the ensuing fiscal year at least 30 days prior to the beginning of next fiscal year. The Charter requires the budget to include:

6/20/2024 2:37:36 PM
C:\Program Files\eSCRIBE\TEMP\14373265033\14373265033,,,Report - Annual Budget Plan FY2024-2025 and Related Actions .docx a) An itemized statement of estimated income and revenues from all sources for the year that the budget is to cover.
b) An itemized statement of the proposed expenditures recommended by the City Manager for each office, department, or agency for the year which the budget is to cover. c) The probable amount required to be levied and raised by property taxation; and d) Other information the City Manager may deem essential, or as the Council may require.

The Charter requires that “the Council shall proceed to consider the proposed budget and may increase, decrease or omit any item or insert new items therein.” It further requires that a public hearing be held, grants the authority for Council to make any final modifications and then requires that prior to the beginning of the ensuing fiscal year, “the Council shall adopt the budget with revisions, if any.”
General Fund
We have reviewed the previously budgeted revenues and expenditures that were presented in our biannual budget FY 23/24 through FY 24/25. In FY 24/25, despite increases in revenues, our operational expenditure surpassed the growth of revenues. The City experienced increased revenues exceeding the originally budgeted biannual amount by approximately $812k. However, ongoing operational costs rose by $2.3MM. This required us to review expenditures and identify budget savings to propose a balanced budget. Staff recommends that the City Council direct staff to take the necessary actions as outlined in the draft budget and implement the recommended expenditure savings measures.

We are experiencing operational expenditures that are exceeding our initial budget projections.

The increased costs are in several areas, specifically salaries, insurance costs, PERS Unfunded Liability, legal and other contract services.

The rise in salaries also increased the costs of insurance and retirement. Unfunded liability estimates are provided by CalPERS and are used in the budget preparation. In July 2022, those were provided assuming that the investment return rate by CalPERS would be 6.8%.

However, the revised amount now payable for the upcoming fiscal year is with the investment rate of return of -6.1%. Annual payment on the Unfunded Accrued Liability (UAL) is the amortized dollar amount needed to fund past service credit earned (or accrued) for members who are currently receiving benefits, active members, and for members entitled to deferred benefits, as of the valuation date. The Unfunded PERS liability costs are anticipated to remain high until 2032. At which point, there should be some relief as the PEPRA formula provides for some relief in costs. The proposed increase in legal costs is to align these expenditures with a more realistic budget. In previous years, we’ve had to request additional legal budget appropriations during the mid-year review. Other contract services include the Animal Shelter and 911 JPA increased costs as well as a one-time $250,000 appropriation for upcoming ballot question costs to the County.

The increase in costs that exceeded the budgeted revenues is approximately $1.6MM. We are planning for the $250,000 budget estimate for ballot questions as a one-time cost and are therefore not including that amount in our budget savings plan. The General Fund’s 2024/25 proposed balance budget includes a hiring pause for vacant positions until the mid-year review

6/20/2024 2:37:36 PM
C:\Program Files\eSCRIBE\TEMP\14373265033\14373265033,,,Report - Annual Budget Plan FY2024-2025 and Related Actions .docx of this budget. Maintaining four filled positions funded by ARPA funds throughout the entire fiscal year. We are also eliminating two approved vacant budgeted positions that have remained unfilled since their approval. These three actions will provide enough budget savings to provide a balanced Budget Plan for the City’s General Fund.

Revenues:

The following chart illustrates the composition of revenues in the general fund for FY 2024-25.

Chart 1: General Fund Revenues by Type for Fiscal Year 2024-25 Property Tax- We are budgeting base property tax to be 4% higher than the estimated collections for FY 2023-24, resulting in a total of $14,797,577. Property taxes are collected based on County Assessor rolls that were formally closed in January of 2024. At that time, the normal Prop 13 assessed CPI growth was 1.3%, less the maximum allowed 2%. The City currently receives 17.34% of the collected revenue. See Chart 2 below for the allocation of the County of Santa Cruz property tax received:

Chart 2: Property Tax Allocation

6/20/2024 2:37:36 PM
C:\Program Files\eSCRIBE\TEMP\14373265033\14373265033,,,Report - Annual Budget Plan FY2024-2025 and Related Actions .docx Over the past few years, sales tax has experienced robust growth. In this upcoming fiscal year car sales are our biggest driver to a higher increase in this revenue. We are expecting an increase of 5.8 percent over the collections of fiscal year 23/24. The table below shows the City’s share of the County’s 9.75% sales tax:

6/20/2024 2:37:36 PM
C:\Program Files\eSCRIBE\TEMP\14373265033\14373265033,,,Report - Annual Budget Plan FY2024-2025 and Related Actions .docx Table 2: Breakdown of County of Santa Cruz sales tax.

Sales Tax – The category of sales represents 34% of General Fund revenues, 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. Hotel Tax is projected to grow about 3% next fiscal year 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 the next budget year.

Community Development Department Revenues – The community development charges fees for various services, such as inspections, plan check, and permit issuance. The department is expected to meet its revenue budget in the current fiscal year. Nevertheless, in the next fiscal year we are projecting modest increases in their departmental revenue. Interest rates should start seeing some decreases, so it is expected that construction and development will see some stronger numbers than in previous years. 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.

Parks and Community Services Revenues – The Parks and Community Services department is projecting modest increases in their departmental revenue. 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

6/20/2024 2:37:36 PM
C:\Program Files\eSCRIBE\TEMP\14373265033\14373265033,,,Report - Annual Budget Plan FY2024-2025 and Related Actions .docx leveraging resources to better serve the community. Parks broke ground earlier this month on the Ramsay Renaissance project and we will have a very much improved park space when we finalize this project.

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 $9,429,387 of American Rescue Plan Act (ARPA) funds over the next fiscal year. 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, Wayfinding, 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 3 below summarizes all the revenue categorized by type described above.

Table 3: General Fund Revenue Summary
Expenditures
The city is facing a situation where expenditures are projected to grow faster than revenues.

In prior years Watsonville was already dealing with structural shortfalls in its budget. 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 the following Department
Actuals
FY 2023
FY 2024
Bugdet
FY 24
Projection FY 25 Budget
Revenues:

Property Tax 13,530,558 14,188,665 14,255,398 14,797,577 Sales Tax-General 14,817,434 14,020,907 14,023,852 14,974,566 Hotel Room Tax 1,536,839 1,500,000 1,804,252 1,600,000
Utility User Tax 4,358,302 4,268,320 4,268,320 4,400,000 Transfers In 4,122,071 4,423,954 3,993,020 4,264,868
Measure R 344,323 5,205,309 5,205,309 5,518,000
Total Revenues 38,709,527 43,607,155 43,550,151 45,555,011 CDD 1,740,264 2,116,800 2,116,800 2,355,600
Police 1,271,080 1,597,100 1,437,921 1,707,297
Fire 793,626 509,592 450,157 509,592
PW 64,075 287,000 46,347 522,742
PCS 617,301 957,066 696,454 960,363
Other 14,497,683 9,246,926 9,238,478 8,981,717
Total GF Revenue 57,693,557 58,321,639 57,536,309 60,592,322 General Fund Estimate Expenditures and Revenues
Fiscal Year Ending June 30, 2025

6/20/2024 2:37:36 PM
C:\Program Files\eSCRIBE\TEMP\14373265033\14373265033,,,Report - Annual Budget Plan FY2024-2025 and Related Actions .docx retirement plans for safety personnel (police and fire), 3% at 50 for employees hired up to 2011, 3% at 55 for employees hired as transfers from other agencies, and 2.7% @ 57 for new employees. For miscellaneous employees the PERS pension plans are 2% @55 for employees hired up to 2011, 2% at 60 for employees hired after 2011 who are already PERS members, and 2% at 62 for new hires. The City is funding retirement benefits based on its contract with CalPERS, a defined benefit retirement program which pays a defined amount per month to each retiree.

Though this is still a major driver for the increased costs, salaries and insurance costs have also seen steep increases. We received a 12% increase in Worker’s Compensation, Liability and Health Insurance. The City has demonstrated prudent fiscal planning, we have remained focused on maintaining reserves and anticipating future needs. Because of this we were able to implement a hiring pause of vacant positions followed by the removal of 2 positions that were not filled after they were approved by this Council at the last mid-year budget update presentation. By prudently working with our departments, we are better prepared to address unforeseen circumstances or financial challenges that may arise. We are also proactively planning for certain adjustments that must be made to accommodate cost-of-living adjustments, (COLAS), increased benefits costs, and contractual obligations.

We are currently also facing uncertainty with Measure R Funds. We have been made aware of a proposal on the November 2024 ballot sponsored by the California Business Roundtable, that if passed, would require any new state or local tax to be approved by voters (retroactive to January 1, 2022) if did not meet certain requirements. Unfortunately, this includes Measure R.

It would counteract the state Supreme Court’s 2020 refusal to overturn an appellate court ruling declaring the citizen’s initiative tax proposals that currently did not have to meet the twothirds vote requirement for local government ballot measures. If successful, the ballot measure would require the governing body to approve new taxes by two-thirds vote. Measure R would be repealed and would need to be re-voted on and this time instead of needing a majority of the voters, would require 2/3 of votes or 66%. We believe that that the voters would reapprove a new tax measure.

The threat of losing this revenue kept us from issuing bonds for Ramsay construction project, City Plaza and the Rolling Hills use agreement. We have previously presented the information to you at our approval of the Ramsay construction contract at the March 26th City Council meeting. Due to the uncertainty of the measure City Council opted not to issue bonds as it would commit the general fund to the debt service payment. We are currently working with a financial advisor that tells us that a $15,000,000 bond issuance would cost us $1,000,000 payment for debt service for 30 years. We had identified about 60% of the construction costs without the use of bonding dollars. It would take us about 4 months to issue bonds and if the measure on the ballot does not prevail in November 2024 we will proceed with the bond issuance. Our identified funds should get us through this timeline, but if we need additional funds before we are able to issue bonding dollars, City Council has approved a $5,000,000 internal loan between the General Fund and the City’s Investment Pooled cash. We would issue a 10-year term loan that would cost us $625,000 per annum.

6/20/2024 2:37:36 PM
C:\Program Files\eSCRIBE\TEMP\14373265033\14373265033,,,Report - Annual Budget Plan FY2024-2025 and Related Actions .docx We have also not added any new personnel positions as we realize this may lead to future layoffs if this funding goes away. Our Library Department is instead going to use their personnel budget to fund temporary salaries to be able to implement their planned programming. Also, we have budgeted most of the fund balance and current operational revenue to continue funding the programs already underway and on capital dollars to be spent on Ramsay Park and streets projects.

Salaries– Salaries and benefits make up 75% percent of General Fund operating expenditures and therefore represent the greatest increase in costs. There is an increase of 0.5 position proposed across all funds, specifically, in the library fund. The budget also reflects both actual and expected contractual raises for all our bargaining units.

Table 4: Proposed new positions
Unfunded Actuarial Liability (UAL) – The City’s UAL costs pose an ongoing challenge. In the upcoming FY 2024-25 UAL costs will represent 13% of the general fund operating budget.

The total of $6,403 million represents a $912 thousand increase from the prior year. Costs are projected to increase every fiscal year until about 2032. At which point there will be some relief as a result of a new retirement formula the City implemented in FY 2013, known as California Public Employees’ Pension Reform Act (PEPRA). The fact that the UAL costs are expected to represent 13% 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 12 percent in the upcoming calendar year.

Other non-position costs – Other citywide non-position impacts on the general fund are mainly for rate increases JPA contract with the county for 911 and Animal Shelter services. Also ballot questions in our November election, projected at $250,000 as well as migration to the Cloud with the general fund share at about $85,000.

Select Department Changes
All departments are impacted by the citywide impacts described above. Table 5 shows the proposed General Fund operating budget by department.

Proposed position addition
Library Fund
Librarian 0.5
Total 0.5

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C:\Program Files\eSCRIBE\TEMP\14373265033\14373265033,,,Report - Annual Budget Plan FY2024-2025 and Related Actions .docx Table 5: General Fund Operating Budget by Department
Below is the graph that shows the breakdown of the General Fund expenditures:

Graph 1: General Fund Expenditures by Type
Expenditutres
Actuals
FY 2023
Budget FY
2024 Projection
Budget FY
2025 Variance
City Council 82,884 121,513 102,417 296,825 175,312
City Manager 1,862,370 1,975,335 1,884,045 1,861,960 (113,375) City Clerk 883,076 797,948 703,087 1,196,910 398,962
Attorney 109,815 795,866 100,000 603,757 (192,109)
Community Development 3,119,652 3,096,837 3,096,837 3,229,908 133,071 Finance 1,518,037 1,822,539 1,556,073 1,898,810 76,271
Human Resources 818,498 877,447 868,563 913,185 35,738
Social Services 237,398 279,415 267,334 279,415 -
Parks & Community Services 5,402,103 6,035,860 5,405,208 6,009,647 (26,213) Fire 8,784,112 8,720,387 9,279,412 9,239,593 519,206
Library 541,684 578,164 578,164 593,584 15,420
Non-Department 8,470,645 3,831,117 3,129,474 2,904,728 (926,389) Police 20,597,580 22,551,283 22,768,455 24,110,339 1,559,056 Public Works 1,665,179 2,325,954 1,805,039 2,204,423 (121,531) Measure R - 2,500,000 902,150 3,177,041 677,041
Total Depts 54,093,034 56,309,666 52,446,259 58,520,125 2,210,459

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C:\Program Files\eSCRIBE\TEMP\14373265033\14373265033,,,Report - Annual Budget Plan FY2024-2025 and Related Actions .docx 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 offers a wide array of services and programming for our community. 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 Renaissance Park Improvements. Bothman Construction was awarded the contract at the March 2024 meeting. Construction is slated to begin later in the summer. The park’s grand opening is expected in September 2025. 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.

Public Safety –
The City’s general fund has seen increasing overtime costs in public safety, and this does significantly strain the city’s general fund. This can impact our ability to be able to allocate resources to other departments and projects. Overtime costs far exceed what are normal levels for both Police & Fire. When we add these overtime costs to the overall increased costs of the department budgets for Police and Fire, there is reason for ongoing concern. We have begun working with both departments to address this concern and come up with a plan to manage these costs. Staff will continue to implement measures that will reduce overtime in Fire and Police as the overtime levels are at unsustainable levels.

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C:\Program Files\eSCRIBE\TEMP\14373265033\14373265033,,,Report - Annual Budget Plan FY2024-2025 and Related Actions .docx Graph 2: General Fund Expenditures by Department for Fiscal Year 2024-25 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 our annual 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 6 reflects the General Fund’s five-year outlook with major assumptions described below.

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C:\Program Files\eSCRIBE\TEMP\14373265033\14373265033,,,Report - Annual Budget Plan FY2024-2025 and Related Actions .docx Table 6: 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 2024-25 sales tax is expected to have a 5.8% increase over the last fiscal year.

In the following years past the current proposed budget, we have received estimates from our sales consultants as to our percentage growth increases 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 increasing in the budget year included.

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 12 percent in the upcoming calendar year. We have planned such an increase in the next fiscal year as the increase is effective at the beginning of the calendar year.

Utilities – We assume the newly adopted rate increase schedule for the Public Utilities of 1% for Water, 7.5% for Wastewater, and 5% for Solid Waste.

Other Non-Personnel Costs – We assume these costs will increase by 3%, an assumed proxy for CPI.

Operating Capital- In our 5-year capital plan, we are budgeting capital just over $9.8 million in FY 2024-25. The City has quite a bit of 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.

FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2027/28
Revenue 60,592,322 61,861,215 63,213,362 64,653,773 66,083,282 Expenses 70,867,827 64,633,019 66,909,156 69,180,170 71,867,616 Revenue less Expense (10,275,505) (2,771,804) (3,695,794) (4,526,397) (5,784,335) Net Deficit (10,275,505) (2,771,804) (3,695,794) (4,526,397) (5,784,335)

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C:\Program Files\eSCRIBE\TEMP\14373265033\14373265033,,,Report - Annual Budget Plan FY2024-2025 and Related Actions .docx Select Special Revenue Funds
Table 7: 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 painting of the library. They are also increasing their workforce by converting one half-time employee into a full-time employee.

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, and position restoration, 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.

Gas Tax and SB1
The gas tax is expected to be relatively flat in this 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. 0250 0262 0305 0306 0310 0312

LIBRARY
ARPA FUNDAMERICAN
RELIEF PLAN GAS TAX SB 1 - GAS TAX FUNDING

SALES TAX

MEASURE Y

MEASURE D -

TRANSPORTATION
FUND
Projected Resources 2024-25
Revenues 4,636,759.00 8,988,031.00 1,413,546.00 1,100,000.00 5,539,100.00 1,178,000.00 Transfers In - - - - - -
Total Gross Resources 4,636,759.00 8,988,031.00 1,413,546.00 1,100,000.00 5,539,100.00 1,178,000.00 Projected Expenditures
Operations 4,468,298.00 2,659,429.00 1,050,395.00 - 5,723,529.58 - Capital 300,000.00 10,645,950.00 1,148,755.00 3,423,540.00 1,934,216.00 5,438,371.00 Transfers Out 163,474.00 - - - - -
Debt Service - - - - - -
Total Gross Uses 4,931,772.00 13,305,379.00 2,199,150.00 3,423,540.00 7,657,745.58 5,438,371.00 Surplus / (Shortfall) (295,013.00) (4,317,348.00) (785,604.00) (2,323,540.00) (2,118,645.58) (4,260,371.00) Total Available Funds 6/30/2025 1,826,435.00 7,682,652.00 (35,604.00) 426,460.00 331,354.42 (260,371.00)

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C:\Program Files\eSCRIBE\TEMP\14373265033\14373265033,,,Report - Annual Budget Plan FY2024-2025 and Related Actions .docx 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. Though it is expected that at the end of this budget year, the Police Department will have spent down all their spendable fund balances on capital and will need general fund support in future years to come.

Select Enterprise Funds
Table 8: 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 budget. This budget year is in fact the last year of that rate schedule and they will be embarking on a new study. 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 Main Switchgear and Energy Recovery Electrical System Improvement and the continuation of the work for the reopening of the Landfill are two 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. The Airport is committing a portion of its special events budget to community outreach

WASTE WATER WATER AIRPORT SOLID WASTE

LANDFILL

CLOSURE FIBER OPTIC FUND
Projected Resources 2024-25
Revenues 36,109,971 26,473,508 4,644,882 22,403,870 - 81,850 Transfers In - - - - - -
Total Gross Resources 36,109,971 26,473,508 4,644,882 22,403,870 - 81,850 Projected Expenditures
Operations 18,937,178 18,236,112 4,753,345 16,804,739 279,637 77,128 Capital 22,898,636 25,738,902 241,000 2,961,304 8,692,078 - Transfers Out 202,513 31,651 5,056 45,836 - -
Debt Service 485,078 13,888 23,037 733,521 - -
Total Gross Uses 42,523,405 44,020,553 5,022,438 20,545,400 8,971,715 77,128 Surplus / (Shortfall) (6,413,434) (17,547,045) (377,556) 1,858,470 (8,971,715) 4,722 Total Available Funds 6/30/2025 4,549,390 10,939,232 122,444 16,074,720 - 279,722

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C:\Program Files\eSCRIBE\TEMP\14373265033\14373265033,,,Report - Annual Budget Plan FY2024-2025 and Related Actions .docx efforts by partnering with local schools, community non-profits and emergency services groups.

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 Utility department has recently completed a comprehensive facility study. The study identified most of the City’s buildings and their maintenance and repairs needs.

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 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 $4,209,820 in FY 2024-25, this number also includes an additional $1,297,000 for the Ramsay Renaissance Project. The General fund’s capital expenditure is about $10MM. 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 $12.8 million into Ramsay Park (including ARPA funds). The work on the Ramsay project is slated to start in August 2024. We have already broke ground on this project. The project will include a full-sized turf soccer field, proposed trail, picnic areas, and an all-inclusive playground amongst many other improvements.

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 last year which informed their proposals.

Wastewater Fund
In Fiscal year 2024/25, the two larger recommended projects are the Main Switchgear and Energy Recovery Electrical System Improvements $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 Plant (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. We are also planning to spend about

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C:\Program Files\eSCRIBE\TEMP\14373265033\14373265033,,,Report - Annual Budget Plan FY2024-2025 and Related Actions .docx $1.65MM on the Levy Embankment Stabilization Project. This project will install sheet piles in the Pajaro River Levee section that borders the Wastewater Treatment Plant to help stabilize the levee embankment and reduce seepage to protect one of the City's most valuable assets in the case of Pajaro River flooding. This project also includes estimated costs for relocating the WWTP electrical service which is currently located on the levee.

Water Fund
In Fiscal Year 2024/25 the Water Fund is proposing a $1.5MM project to Construct a new Water Well #4. The City needs to invest in new wells to improve water system reliability by providing additional water sources that will supplement the existing wells, some of which are nearing the end of their useful life. Additionally, in Fiscal Year 2024-25 they are proposing to spend $2MM on the Chromium-6 project. The State is in the process of updating the regulation limits for Chromium-6. Depending on the final regulation limit issued by the State, several of the City's existing well sites may require additional treatment to meet these new regulatory limits. This project will provide Chromium-6 treatment technology at wells 2,3,7,14,17 &18 to meet regulatory compliance. They are also proposing other projects that will repair or improve reservoirs, water meter main replacements and various other projects.

Solid Waste.

The Solid Waste capital program is largely driven by the costs of opening landfill cells. This is a carryforward project to open a new landfill cell in 2024. Also being planned are the purchase of two new collection vehicles at about $1.1MM.

Transportation
To make the best use of limited road repair and maintenance funding, staff hired a consultant to prepare a five-year Pavement Management Plan (PMP) and to provide a Pavement Program Manager (PPM) services for the PMP. The PMP will assess the condition of all city roads, review financial resources, and propose a five-year schedule of roadway repair and maintenance that current funding levels will allow. Along with road condition and finances, the plan will consider utility replacement projects, equity, community input and grouping similar projects to reduce construction costs.

The PPM will be an extension of city staff and manage the projects proposed by the PMP.

This includes coordinating design, managing construction, and ensuring proper inspection and testing of each project. Transportation projects include the major arterial roads that 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. The firm will be developing a five-year Pavement Management Program, the scope of work shall include:

1. Project Management.

2. PMP Audit & Update: Create database for new and existing street information.

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C:\Program Files\eSCRIBE\TEMP\14373265033\14373265033,,,Report - Annual Budget Plan FY2024-2025 and Related Actions .docx

3. Pavement Condition Survey: Collect field data of road conditions.

4. Budget Analysis: Identify funding and consider budget scenarios.

5. GIS Segmentation/Maps Generation: Integrate existing and new street data.

6. Prepare draft & final report.

7. Community Engagement: Participate in public meetings to present and discuss PMP.

8. Training for City staff: Train staff on road analysis and StreetSaver program.

9. ADA Curb Ramp Analysis: Assess the condition of curb ramps that may require repair as part of pavement projects.

Funding comes from many sources, and each has its own requirements. Four of the sources, Gas Tax, Measure D, SB1 and Measure R and 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.

The number and size of projects identified in the PMP will be determined by available funding.

Currently, Watsonville receives approximately $3.5 million annually from Gas Tax, SB1 and Measure D to fund all transportation work and projects. Approximately $1 million of this is used for staffing, operations, and maintenance costs. Grants also provide one-time funding for specific projects.

Unfunded Capital Needs
Despite a plan which expects to fund over $36.9 million of Capital new projects next budget year, we still have over $50 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 to invest in our capital assets, and potentially look to Federal infrastructure funding that we hope will come our way.

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C:\Program Files\eSCRIBE\TEMP\14373265033\14373265033,,,Report - Annual Budget Plan FY2024-2025 and Related Actions .docx Table 9: Capital Improvement Program by Funding Source
Budget Legislation
Each year the passage of the budget requires the passage of a few legislative items.

Below is a listing of each of those items along with a brief description. Today’s action:

The following shall be requested to be adopted at the June 25, 2024, council meeting.

That the Joint City Council, the City Council in its capacity as the Housing Successor Agency shall:

FUND NAME 2024/25 2025/26 2026/27 2027/28 2028/29
GENERAL FUND 1,857,220 9,228,000 7,905,000 4,327,400 4,835,000 MEASURE R 2,352,600 3,000,000 600,000 700,000 800,000
COMPUTER REPLACEMENT FUND 125,005
TOTAL GENERAL FUND 4,334,825 12,228,000 8,505,000 5,027,400 5,635,000

SPECIAL REVENUE FUNDS
CDBG 560,000 - - - -
CIVIC CENTER 289,000 75,000 75,000 75,000 75,000
LIBRARY 30,000 - - - -
GRANTS 642,000 10,541,000 6,863,000 - -

CANNABIS - - - - -
GAS TAX 555,000 555,000 555,000 555,000 555,000
SB1 1,325,000 1,325,000 1,325,000 1,325,000 1,325,000
MEASURE Y 1,282,595 1,868,000 895,000 725,000 1,085,000 MEASURE D 1,290,870 1,214,000 1,214,000 1,214,000 1,214,000 UNDERGROUND UTILITY 250,000 - - 350,000 -
STORM DRAIN 400,000 70,000 2,000,000 - -
CITY-WIDE TRAFFIC 900,000 - - -
MANABE OW IMPACT FEE 190,000 - - -
TOTAL SPECIAL REVENUE FUNDS 6,624,465 16,738,000 12,927,000 4,244,000 4,254,000

ENTERPRISE FUNDS
AIRPORT 756,000 400,000 878,000 345,000 1,437,000
WASTEWATER 12,934,243 26,360,408 14,725,900 1,989,454 450,000 WATER 10,924,374 21,939,070 19,035,743 30,906,045 21,873,996 SOLID WASTE 1,251,000 745,808 931,738 1,319,502 928,949 INFORMATION TECHNOLOGY 80,000 - - - -
TOTAL ENTERPRISE FUNDS 25,945,617 49,445,286 35,571,381 34,560,001 24,689,945 TOTAL 36,904,907 78,411,286 57,003,381 43,831,401 34,578,945

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C:\Program Files\eSCRIBE\TEMP\14373265033\14373265033,,,Report - Annual Budget Plan FY2024-2025 and Related Actions .docx 1) Budget and CIP: approve a resolution adopting the FY 2024-25 Budget, providing certain transfers of funds and approve the Five-Year Capital Improvement Program, as highlighted and summarized above.

That the City Council shall adopt the following resolutions or ordinances:
2) Hydrant Meter Deposit: Approve a resolution adopting a Hydrant Meter Deposit in the amount of $4,783.

Commercial Container Contamination Fee (1 yard-40 yards): Approve a resolution adopting a new contamination fee as required by SB 1383, which states that jurisdictions to ensure compliance with the guidelines established by allowing jurisdictions to enforce policies by imposing penalties on customers. The purpose of these penalties is to ensure proper disposal by customers and a cleaner waste stream which will help avoid higher disposal costs. The processors will assess higher fees if our loads contain high volumes of prohibited materials, the following are the proposed fees:
a)1st offense – 25% of monthly container fee
b) 2nd offense - 50% of monthly container fee
c) 3rd offense - 100% of monthly container fee
3) Gann Limit: Resolution establishing the “Total Annual Appropriations” pursuant to State Constitution Article XIII-B for Fiscal Year FY 2024-25 (Proposition 4 GANN spending limit) as shown in Attachment 4; and
4) 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, 2024, to June 30, 2025, at the levy rate of 0.077% and allocating to the Retirement Fund; and
That City Council in its capacity as the Housing Successor Agency 5) 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
6) 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.

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C:\Program Files\eSCRIBE\TEMP\14373265033\14373265033,,,Report - Annual Budget Plan FY2024-2025 and Related Actions .docx STRATEGIC PLAN:

The current balance budget meets Strategic Plan goal Number 4 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 2024-25 spending of $278,694,533.

ALTERNATIVES:

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

ATTACHMENTS:
1) Proposed FY 2024-25 Budget – link below
(https://www.watsonville.gov/DocumentCenter/View/23447/Budget-FY-24-25- Draft-)

Reso No. (CM)
Reso No. (SHA)
Reso No. (SA)
Meeting Date: 062524 SWZ ______ TV ______ Finance _____ 1 RESOLUTION NO. (CM)
RESOLUTION NO. (SHA)
RESOLUTION NO. (SA)

A JOINT RESOLUTION OF THE CITY COUNCIL AND THE CITY

COUNCIL IN ITS CAPACITY AS THE SUCCESSOR TO THE HOUSING

ASSETS AND FUNCTIONS OF THE FORMER REDEVELOPMENT

AGENCY OF THE CITY OF WATSONVILLE, AND THE SUCCESSOR

AGENCY OF THE FORMER REDEVELOPMENT AGENCY OF THE CITY

OF WATSONVILLE ADOPTING THE FINAL BUDGET FOR FISCAL
YEAR 2024-2025, PROVIDING FOR CERTAIN TRANSFERS OF FUNDS,

AND APPROVING THE FIVE-YEAR CAPITAL IMPROVEMENT
PROGRAM (CIP) FOR FISCAL YEARS 2024-25 to 2028-29
WHEREAS, pursuant to § 1103 of the Charter of the City of Watsonville a proposed budget for fiscal year 2024-2025 has been submitted to the City Council by the City Manager and the City Council has reviewed and made revisions as it deemed advisable; and
WHEREAS, pursuant to Section 1104 of the Charter, the Council fixed the time and place for holding the public hearing on the proposed budget; and WHEREAS, copies of the proposed budget have been and are available for inspection by the public at the Office of the City Clerk at least ten (10) days before the hearing to consider final adoption; and
WHEREAS, pursuant to Section 1104 of the City Charter, a public hearing was held to consider the adoption of the proposed budget after due notice as provided by law at which time interested persons desiring to be heard were given such opportunity; and WHEREAS, after the conclusion of the public hearing the Council further considered the proposed budget and made any revisions thereto that it deemed advisable; and
WHEREAS, the appropriate officers, departments, boards, and commissions of the City identified all public improvements proposed in Watsonville; and

Reso No. (CM)
Reso No. (SHA)
Reso No. (SA)
Meeting Date: 062524
2 WHEREAS, on May 2, 2024, the Planning Commission reviewed said identified public improvements and listed and classified same with a coordinated program of proposed public improvements for the five-year Capital Improvement Program (CIP) according to a logical order or priority; and
WHEREAS, the Planning Commission recommended a coordinated program of proposed public improvements for the fiscal years 2024-2025 to 2028-2029 period to the City Manager and Council; and
WHEREAS, § 1105 of the Charter provides after submission of the proposed budget, but before the beginning of the ensuing fiscal year, the Council shall adopt a final budget with revisions, if any, and said final budget shall be certified by the City Clerk.

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

Section 1. Approval of 2024-2025 Budget. That the City of Watsonville and the City Council in its Capacity as the Housing Successor Agency to the Former Redevelopment Agency of the City of Watsonville proposed a budget for 2024-2025, presented by the City Manager to the members of the City Council, and filed with the City Clerk, and as thereafter amended by the City Council, a copy of which budget is on file in the Office of the City Clerk, is hereby approved as to form in the amount of $278.7 million for the fiscal year ending June 30, 2025.

Section 2. Approval of 2024-2025 Successor Agency Budget. That the Successor Agency for the Former Redevelopment Agency of the City of Watsonville proposed budget for 2024-2025, presented by the City Manager to the members of the Agency, and filed with the City Clerk, and as thereafter amended by the Agency Members,

Reso No. (CM)
Reso No. (SHA)
Reso No. (SA)
Meeting Date: 062524
3 a copy of which budget is on file in the Office of the City Clerk, is hereby approved as to form in the amount of $1.2 million for the fiscal year ending June 30, 2025.

Section 3. Adoption of 2024-2025 Budget. That the portion of the proposed budget applicable to the 2024-25 fiscal year presented by the City Manager to the members of the City Council, and filed with the City Clerk, and as thereafter amended by the City Council, a copy of which budget is on file in the Office of the City Clerk, is hereby approved as the final budget in the amount of $278.7 million for the fiscal year ending June 30, 2025, and the several amounts stated therein as proposed expenditures are hereby appropriated for the objects therein described on Exhibit “A,” attached hereto and incorporated herein.

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

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

Section 6. Lapse of Appropriations. Pursuant to § 1107 of the Charter, all such appropriations shall lapse at the end of the 2024-2025 fiscal year except to the extent that they shall have been expended or lawfully encumbered.

Reso No. (CM)
Reso No. (SHA)
Reso No. (SA)
Meeting Date: 062524
4 Section 7. Manager Transfers. That the City Manager is authorized to transfer appropriations within fund budgets; provided, however, that the total appropriations are not increased thereby.

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

Section 9. Capital Improvement Program. That the Capital Improvement Program for 2024-2029, attached as a part of the 2024-2025 budget, as amended by the City Council, is hereby approved. Capital projects carried over from prior periods (reappropriated), as amended by Council are hereby approved, except as already expended.

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

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

FOUND FISCAL YEAR 24/25
0150 61,992,672.00
0160 4,103,000.00
0170 0.00
0201 9,284,871.00
0202 1,168,105.00
0204 847,722.00
0205 1,700,368.00
0209 817,214.00
0210 442,260.00
0215 70,000.00
0221 114,330.00
0225 98,814.00
0245 63,654.00
0246 1,339,207.00
0250 4,931,772.00
0260 13,745,301.00
0262 11,466,779.00
0265 32,200.00
0266 150,000.00
0274 100,000.00
0276 24,120.00
0281 212,635.00
0285 600.00
0290 5,000.00
0305 2,199,150.00
0306 3,423,540.00
0309 180,532.00
0310 7,657,745.58
0312 5,438,371.00
0340 72,418.00
0349 11,603.00
0350 400,000.00
0354 63,125.00
0357 297,703.00
0360 28,940.00
0510 466,994.00
0710 42,523,405.45
0720 44,020,553.00
0730 5,022,438.00
0740 20,545,400.00
0741 8,971,715.00
0760 3,121,234.00
0765 0.00
0780 6,497,842.00
0787 10,480,062.00
0789 77,128.00
0790 4,472,510.00
0825 11,500.00
278,694,533.03
Housing Successor Agency of the Former Redevelopment Agency 847,722.00 Successor Agency of the Former Redevelopment Agency 1,168,105.00 Total Appropriations 278,694,533.03

TOTAL APPROPRIATIONS
City Of Watsonville 276,678,706.03

HEALTH INSURANCE

FIBER OPTIC FUND

INFORMATION & TECHNOLOGY ISF

NARCOTICS FORFEITURE AWARD

SOLID WASTE

LANDFILL CLOSURE

MSC INTERNAL SERVICE FUND

COMPUTER REPLACEMENT

WORKERS COMP/ LIABILITY

LLMAD BAY BREEZE SPECIAL DISTR

DEBT SERVICE FUND

WASTE WATER
WATER

AIRPORT
IMPACT: STORM DRAIN IMPROVEME

LLMAD (SPECIAL DISTRICTS FUND)

UNDERGROUND UTILITY
IMPACT: PUBLIC FACILITIES
IMPACT: CITY-WIDE TRAFFIC

PARKING GARAGE

SALES TAX MEASURE Y

MEASURE D -TRANSPORTATION FUND

LLMAD-GONZALEZ STREET

GREEN BUILDING FEE

GAS TAX
SB 1 - GAS TAX FUNDING

SPECIAL MOBILE HOME FUND

PUBLIC ART FEE

PARK LAND IMPACT FEE

PARKS DEVELOPMENT

CIVIC CENTER COMMON AREA

LIBRARY

SPECIAL GRANTS

ARPA FUND-AMERICAN RELIEF PLAN

PUBLIC EDUCATION FEE -CABLE TV

CAL HOME GRANT

RELOCATION REVOLVING

AFFORDABLE HOUSING

BUSINESS DEVELOPMENT

ABONDONED VEHICLE AUTHORITY
RDA_HOUSING

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

GENERAL FUND

RETIREMENT FUND

INVESTMENT

MEASURE R
RDA_OBLIGATION RETIREMENT FUND

CITY OF WATSONVILLE & SUCCESSOR AGENCY

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

BUDGET APPROPRIATIONS

BY FUND

DESCRIPTION
Exhibit A

Attachment 1 - Technical changes
Budget 24.25 Corrections after draft budget publication Fund Org Object Proj Type Description Amount
205 380 5671 - R GRANT REVENUE 145,743.00
260 338 5890 15087 R GRANT REVENUE 589,330.00
260 337 5890 10052 R GRANT REVENUE 42,850.00
260 338 5890 14838 R GRANT REVENUE 114,326.00
260 338 5890 14859 R GRANT REVENUE 257,790.00
260 338 5890 14310 R GRANT REVENUE 45,865.00
260 338 5890 15164 R GRANT REVENUE 1,129,518.00
260 338 5890 10053 R MIDDLE STRUVE SLOUGH GRANT 16,390.00 260 338 5890 11090 R RESILIENCE CHALLENGE GRANT 22,879.00 260 338 5890 11092 R DWR - IWRM GRANT 500,105.00
260 338 5890 11100 R CALRECYCLE GRANT 201,112.00
260 338 5890 11101 R OTHER CONTRACT SERVICES 926,096.00 260 338 5890 11102 R CCCE ELECTRIFICATION & INNOVAT 148,800.00 260 338 5890 11105 R URBAN GREENING PROGRAM 791,215.00
260 338 5890 11107 R EXPERT & CONSULTATION SERVICES 390,293.00 260 338 5890 14829 R NEW RESERVOIRS AT AIRPORT BOOSTER STATION 4,843,020.00 312 972 5070 - R REVENUE INCREASE 148,000.00
730 560 5890 14726 R AIRCRAFT WASHRACK 373,500.00
TOTAL REVENUE INCREASE 10,686,832.00
150 210 7021 - E TEMP WAGES (22,742.00)
150 430 7361 - E ANIMAL SHELTER COSTS 34,096.00
150 620 7307 - E EXPERT & CONSULTATION SVC (31,000.00)
150 901 7855 14910 E CIVIC PLAZA PARKING STRUCTURE 23,010.50 150 901 7820 14922 E URBAN GREENING-CONST MGT RAMSA 2,682.00 150 901 7813 15140 E PUBLIC WORKS 3- CONTAINERS 3,251.17 150 901 7837 15148 E PAVEMENT MAINTENANCE PROJECT 47,911.68 201 975 7805 15057 E FIELD SERVICES EQUIPMENT 251,500.00 201 975 7837 15150 E STREETS - OTHER (1,512,300.00)
201 975 7837 15154 E STREETS/SIDEWALKS-TRAILS (291,400.00) 201 975 7805 15162 E FIELD SERVICES CONTAINER TRUCK 66,106.43 201 975 7851 14794 E NATURE CENTER BUILDING 1,838,600.00 201 974 7805 15155 E LIBRARY BOOKMOBILE (100,000.00)
201 974 7855 15170 E DESIGN COSTS 100,000.00
205 908 7855 14925 E SENIOR CNTR KITCHEN ADA -PH II 17,984.85 250 935 7855 14948 E LIBRARY UPGRADE PUBLIC BATHROO (250,000.00) 260 905 7820 10052 E URBAN GREENING:WATS SLOUGH CON 42,849.88 260 338 7361 10053 E MIDDLE STRUVE SLOUGH GRANT 16,390.00 260 338 7307 11090 E RESILIENCE CHALLENGE GRANT 22,879.00 260 338 7307 11092 E DWR - IWRM GRANT 169,284.89
260 338 7361 11092 E DWR - IWRM GRANT 336,549.00
260 338 7369 11092 E DWR - IWRM GRANT 4,271.00
260 338 7359 11100 E CALRECYCLE GRANT 2,000.00
260 338 7361 11100 E CALRECYCLE GRANT 15,000.00
260 338 7559 11100 E CALRECYCLE GRANT 184,112.00
260 338 7361 11101 E OTHER CONTRACT SERVICES 918,824.99 260 338 7559 11101 E OTHER SUPPLIES & MATERIALS 7,271.00 260 338 7361 11102 E CCCE ELECTRIFICATION & INNOVAT 148,800.00 Exhibit A

260 338 7361 11105 E URBAN GREENING PROGRAM 789,840.43
260 338 7559 11105 E URBAN GREENING PROGRAM 1,375.00
260 338 7307 11107 E EXPERT & CONSULTATION SERVICES 390,293.00 260 338 7855 14829 E NEW RESERVOIRS AT AIRPORT BOOSTER STATION 4,843,020.00 262 109 7837 5013 E NEIGHBORHOOD STREET AND SAFETY 268,812.00 262 109 7361 5014 E OTHER CONTRACT SERVICES WAYFIN 1,288,383.00 262 109 7837 14838 E FREEDOM BLVD RECONSTRUCTION 69,915.00 262 990 7813 14928 E SPECIALIZED DEPT EQUIPMENT 41,282.15 262 990 7837 15148 E PAVEMENT MAINTENANCE PROJECT 369,000.00 262 990 7851 14794 E NATURE CENTER BUILDING 1,838,600.00 262 990 7851 14794 E NATURE CENTER BUILDING (1,838,600.00) 265 393 7021 - E TEMP WAGES (800.00)
291 902 7813 14932 E RADIO REPLACEMENT (54,651.00)
305 923 7805 14309 E AUTOMOTIVE EQUIPMENT (81,596.00)
310 967 7813 14772 E CROWD MANAGEMENT GAS MASKS (62,500.00) 312 972 7837 14320 E BICYCLE SAFETY IMPROVEMENTS 12,000.00 312 972 7837 14405 E MAINTAIN ROADS 4,479.25
312 972 7837 14522 E LEE RD TRAIL FROM RAILROAD CRO 4,304.19 312 972 7834 14731 E UTILITIES LAKE AVENUE 27,034.25
312 972 7837 14816 E BRIDGE STREET RECONSTRUCTION 29,900.00 312 972 7837 14817 E PENNSYLVANIA DR RECONSTRUCTION 31,836.69 312 972 7837 14859 E HWY1/HARKINS SLOUGH RD PEDESTR 58,910.00 312 972 7837 14860 E LEE RD TRAIL PHASE 1 15,676.45
312 972 7837 15087 E SAFE ROUTES TO DOWNTOWN WAT 29,000.00 312 972 7837 14321 E STREETS/SIDEWALKS-MAINTAIN TRA (83,735.00) 357 962 7834 14731 E UTILITIES LAKE AVENUE 47,703.00
710 911 7855 14328 E WWTP INFRASTRUCTURE REPAIRS/RE 56,720.38 710 911 7835 14621 E SANITARY SEWER LIFT STATION IM 47,453.00 710 911 7813 14628 E CCTV SEWER INSP SOFTWARE 59,000.00 710 911 7835 14798 E REPLACE SEWER PUMP STN 10-MILE 39,182.89 710 911 7835 15036 E SUB BASIN 7 SANITARY SEW MART 41,051.50 710 911 7805 15113 E UTILITY INSPECTOR TRUCK 28,985.51
720 596 7751 - E CHARGES IN-INTERDEPARTMENTAL 20,657.00 720 913 7805 14349 E WATER OPERATIONS SERVICE VEHIC 71,105.41 720 913 7813 14414 E NEW COVER FOR FREEDOM RESERVOI (13,414.00) 720 913 7855 14794 E NATURE CENTER BUILDING 716,022.00
720 913 7855 14828 E MISC ELECTRICAL MAINT/REPAIRS 20,314.04 720 913 7813 14984 E WATER METER READING SYSTEM UPG (100,000.00) 720 913 7805 15125 E CUSTOMER SERVICE VEHICLE 6,800.00
720 913 7855 15130 E BROWNS VALLEY FISH LADDER REPA 6,914.00 730 910 7855 14726 E AIRCRAFT WASHRACK 415,000.00
730 910 7837 14902 E SLURRY SEAL AND REMARK SOUTH 100,000.00 730 910 7855 15176 E AIRPORT WAYFINDING SIGNAGE (10,000.00) 730 910 7855 15173 E MIDFIELD TAX LN CONNECTOR (53,000.00) 740 912 7805 14419 E CONTAINER TRUCK 62,693.00
740 912 7855 14794 E NATURE CENTER BUILDING 30,601.54
740 912 7805 15057 E FIELD SERVICES VEHICLES AND EQ (249,581.00) 741 915 7813 14573 E LANDFILL GAS WELLS 31,876.00
765 550 7225 15188 E COMPUTER REPLACEMENT FUND (124,995.00) 790 920 7813 15188 E COMPUTER REPLACEMENT FUND (250,000.00) TOTAL NEW APPROPRIATION REQUESTS 11,038,801.07
Exhibit A

Reso No. ______ (CM)
Meeting Date: 062524 SWZ ______ TV ______ PWU ______
1 RESOLUTION NO. __________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE ESTABLISHING AND SETTING A HYDRANT METER

DEPOSIT FEE FOR THE PUBLIC WORKS DEPARTMENT
WHEREAS, notice of the time and place of the hearing to consider approval of the Hydrant Meter Deposit fee was given at the time and in the manner pursuant to California Government Code Section 6062a: and
WHEREAS, a public hearing was held according to California Government Code Section 66018.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, 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. The City Council hereby establishes and sets the Hydrant Meter Deposit, as listed in Exhibit “A”, attached hereto and incorporated herein by this reference. This deposit supports the upgraded design of hydrant meters.

3. That the herein fee, rates, and charges effective July 1, 2024, shall henceforth be adjusted annually by the rate of the April-to-April change in the Consumer Price Index (CPI) for all Urban Consumer San Francisco-Oakland-San Jose, California.

Changes shall be effective July 1 of each year.
****************************************

Exhibit A

Reso No. ______ (CM)
Meeting Date: 062524 SWZ ______ TV ______ PWU ______1
RESOLUTION NO. __________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE ESTABLISHING A COMMERCIAL CONTAINER

CONTAMINATION FEE FOR THE PUBLIC WORKS DEPARTMENT
WHEREAS, notice of the time and place of the hearing to consider approval of the Commercial Container Contamination was given at the time and in the manner pursuant to California Government Code Section 6062a: and
WHEREAS, a public hearing was held according to California Government Code Section 66018.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, 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. The City Council hereby establishes and sets the Commercial Container Contamination Fee, as listed in Exhibit “A”, attached hereto and incorporated herein by this reference. SB 1383 and Chapter 10 (Mandatory Organic Waste Disposal Reduction) of Title 6 (Sanitation and Health) of the Watsonville Municipal Code requires the separation of trash, recycling and organics in carts and containers and provides compliance and enforcement.

3. That the herein fee, rates, and charges effective July 1, 2024, shall henceforth be adjusted annually by the rate of the April-to-April change in the Consumer Price Index (CPI) for all Urban Consumer San Francisco-Oakland-San Jose, California.

Changes shall be effective July 1 of each year.
************************************

E
xhibit A

Reso No. (CM)
Meeting Date: 062524 SWZ ______ TV ______ Finance ______ 1 RESOLUTION NO. ________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE ESTABLISHING TOTAL ANNUAL APPROPRIATIONS

PURSUANT TO CALIFORNIA STATE CONSTITUTION ARTICLE XIII-B FOR FISCAL YEAR 2024-2025
[Proposition 4 Gann Spending Limit]
WHEREAS, the initiative commonly referred to as Proposition 4 Gann spending limit adopted November 6, 1979, by the state electorate provided for Article XIII-B of the State Constitution to establish government spending limitations, and requires the establishment of total annual appropriations subject to certain limitations and adjustments for change.

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

That the total annual appropriations limit (Proposition 4 Gann spending limit) for the City of Watsonville General Fund during the fiscal year 2024-2025 is $176,281,910; the amended budget subject to the spending limit is $36,811,766 as set forth in Exhibit “A,” a copy of which is attached hereto, and is hereby approved and adopted. ****************************

Exhibit A
Proposition 4 Calculation
For Fiscal Year 2024-25
Spending Limit Calculation
[a] 2023-24 Limit $ 169,411,911
Calculation of Growth Factor
Change in Population 3.620%
Non-resident, New Const. Assessment Growth
Change in California Per Capita Person Income
[b] Growth Factor (1.0362 *1.00421) 1.04055204
[c] 2024-25 Limit ( [a] multiplied by [b] ) $ 176,281,910 2024-25 Gann Limit Proposed Spending
Proposed General Fund Spending $ 58,464,517
Less Non-tax General Fund Revenues:

Transfers In (non-tax) (4,264,868)
Use of Money and Property (3,859,572)
Fees (13,528,311)
In-lieu Charges -
Other non-tax revenue -
[d] Spending Subject to the Gann Limit $ 36,811,766
Remaining Capacity ( [d] subtracted from [c] ) $ 139,470,144

Ord No. (CM)
Meeting Date: 062524 SWZ ______ TV ______ Finance ______1 ORDINANCE NO. (CM)

AN UNCODIFIED ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE INSTRUCTING THE COUNTY OF SANTA CRUZ TO

LEVY AND COLLECT A PROPERTY TAX ON TAXABLE PROPERTY IN

THE CITY OF WATSONVILLE FOR THE FISCAL YEAR BEGINNING
JULY 1, 2024, FIXING THE RATE OF 0.077% THEREOF AND

ALLOCATING IT TO THE RETIREMENT FUND
WHEREAS, Proposition 13 [Article XIII of the State Constitution] does not apply to measures approved by the voters prior to the effective date of the Article XIII of the State Constitution; and
WHEREAS, participation in the State Employees Retirement System or other system for the retirement of City employees, hereinafter set forth, is a measure approved by the voters of the City of Watsonville prior to the effective date of Article XIII-A; and WHEREAS, pursuant to Ordinance No. 437-78 (CM), as amended by Ordinance No. 670-85 (CM), the County of Santa Cruz is authorized to levy and collect ad valorem taxes on taxable property within the City of Watsonville; and WHEREAS, on November 7, 2006, at a Special Municipal Election, the voters of the City of Watsonville approved Subdivision (3)(b) of Section 1122 of Article XI of the Charter of the City of Watsonville establishing the rate to be collected not to exceed 7.7 cents on each One Hundred and no/100th ($100.00) Dollars of assessed valued.

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

SECTION 1. ENACTMENT. The County of Santa Cruz is hereby instructed to levy upon the taxable property of the City of Watsonville for fiscal year beginning July 1, 2024, a property tax which is hereby fixed at the rate of 0.077% (pursuant to Subsection

Ord No. (CM)
Meeting Date: 062524 2
1122(b)(3) of the Charter of the City of Watsonville), designated and to be allocated and divided among the funds of the City, as described and attached hereto on Exhibit “A.” SECTION 2. EFFECTIVE DATE. This ordinance shall take effect immediately upon the adoption in accordance with Section 608(c) of the Charter.

SECTION 3. PUBLICATION. The City Clerk is hereby directed to cause this ordinance to be published in one regular issue of the Watsonville Register-Pajaronian and/or Santa Cruz Sentinel in compliance with the provisions of the Charter of the City of Watsonville within fifteen (15) days after its adoption. ***********************************

CITY OF WATSONVILLE
Final Retirement Tax Calculations
with Levy Rate of 0.077%
Fiscal Year 2024-25
Retirement
General Fund Public Safety Departments
Police Department
Police PERS
System Costs
1,792,063
Police PERS Unfunded Liability 3,075,047
Police Social Security &/or Medicare 219,089
Alternate 457 for Temporary employees
Fire Department
Fire PERS
48,360
849,284
Fire Employee PERS Unfunded Liability 1,664,185
Fire Social Security &/or Medicare 71,659
Alternate 457 for Temporary employees
General Fund- Remaining Departments
PERS 865,617
Employee PERS Unfunded Liability 1,657,901
Social Security 741,912
Alternate 457 for Temporary employees 128,417
Administration Fee Allocation Costs -
Grand Total Needed 11,113,534
Less: Allowance for Turnover (300,000)
Estimated General Fund Pension Costs $ 10,813,534
Less: Estimated Levy Proceeds (37% of total costs) 4,000,000 Amount supported by General Fund $ 6,813,534
Exhibit A

CITY OF WATSONVILLE
Final Retirement Tax Calculations
with Levy Rate of 0.077% Fiscal
Year 2024-25

CITY OF WATSONVILLE
Final Retirement Tax Calculations
with Levy Rate of 0.077% Fiscal
Year 2024-25
General Fund Retirement Program Costs
Police Department
Fire Department
Other non-safety departments
Grand Total Needed
Less: Allowance for Turnover
Estimated General Fund Pension Costs s:

Estimated Levy Proceeds (37% of total costs)
Amount supported by General Fund
$ 5,134,559
2,585,128
3,393,847
11,113,534
(300,000)
$ 10,813,534
$ 4,000,000
$ 6,813,534
Exhibit A

Reso No. (SHA)
Meeting Date: 062524 SWZ ______ TV ______ Finance ______ 1 RESOLUTION NO. __________ (SHA)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE IN ITS CAPACITY AS THE SUCCESSOR TO THE

FORMER REDEVELOPMENT AGENCY OF THE CITY OF

WATSONVILLE FINDING THAT THE USE OF FUNDS FROM THE LOW

AND MODERATE INCOME HOUSING ASSET FUND FOR PLANNING

AND GENERAL ADMINISTRATIVE COSTS IS NECESSARY FOR THE

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

Reso No. (CM)
Meeting Date: 062524 2
WHEREAS, as required by CRL section 34176(d), the City has created among the City’s accounts a “Low and Moderate Income Housing Asset Fund” (“LMIHAF”) and has deposited the former Agency’s housing funds (and income from the former Agency’s housing assets) into the LMIHAF; and
WHEREAS, CRL Section 34176 provides that the funds in the LMIHAF may be used only in accord with the CRL’s applicable housing-related provisions; and WHEREAS, the City, as Housing Successor, proposes to expend funds from the LMIHAF for the purposes allowed under the CRL’s housing-related provisions, including for planning and administrative expenses directly related to programs and activities authorized by CRL Section 33334.2(e) and Section 33334.3(e); and WHEREAS, in accordance with CRL Section 33334.3(d), the Housing Successor may expend money from the LMIHAF for planning and general administrative activities directly associated with the development, improvement and preservation of affordable housing which is not disproportionate to the amount actually spent for the costs of the production, improvement, or preservation of that housing; and WHEREAS, CRL Section 33334.3(d) requires that the Housing Successor determine annually that the planning and administrative expenses paid for with housing funds are necessary for the production, improvement, or preservation of low- and moderate-income housing.

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

OF WATSONVILLE IN ITS CAPACITY AS THE SUCCESSOR TO THE FORMER

REDEVELOPMENT AGENCY OF THE CITY OF WATSONVILLE , CALIFORNIA, AS FOLLOWS:

Reso No. (CM)
Meeting Date: 062524 3
Section 1. In accord with CRL Section 33334.3(d), the City Council determines that the Housing Successor’s use of funds from the LMIHAF to pay for planning and administrative expenses is necessary for the production, improvement, or preservation of low- and moderate-income housing.

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

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

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

Reso No. (CM)
Reso No. (SHA)
Meeting Date: 062524 SWZ ______ TV ______ Finance ______ 1 RESOLUTION NO. __________ (CM)
RESOLUTION NO. __________ (SHA)

A JOINT RESOLUTION OF THE CITY COUNCIL AND CITY COUNCIL IN

ITS CAPACITY AS THE SUCCESSOR TO THE HOUSING ASSETS AND

FUNCTIONS OF THE FORMER REDEVELOPMENT AGENCY OF THE

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

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

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

Reso No. ______ (CM)
Reso No. ______ (SHA)
Meeting Date: 062524
2 from the LMIHF and the sale of assets purchased with LMIHF funds (all of the foregoing, collectively, “Housing Assets”); and
WHEREAS, in accord with CRL section 34176(d), the Housing Successor has established in its accounts a separate “Low and Moderate Income Housing Asset Fund” (“LMIHAF”) and has placed all Housing Assets which it received from the Agency into the LMIHAF and will likewise place any future Housing Assets it receives into the LMIHAF; and
WHEREAS, under the Dissolution Acts, the Housing Successor’s use of the LMIHAF is subject to the CRL’s housing-related requirements; and WHEREAS, CRL section 33334.2(g) provides that funds in the LMIHF may be used outside the Project Area only if the Agency’s governing and legislative bodies determined that the proposed use would benefit the Project Area; and WHEREAS, as the Housing Successor’s legislative and governing body, the City Council may make the findings required by CRL section 33334.2(g) with respect to the use of funds in the LMIHAF outside of the Project Area; and WHEREAS, the General Plan of the City of Watsonville demonstrates a need for affordable housing throughout the community; and
WHEREAS, the Housing Successor proposes to use funds in the LMIHAF outside of the Project Area for various projects designed to increase, improve, and preserve the City’s supply of decent, safe, and sanitary affordable housing.

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

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

Reso No. ______ (CM)
Reso No. ______ (SHA)
Meeting Date: 062524
3 FUNCTIONS OF THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF WATSONVILLE :

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

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

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

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

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

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

Reso No. ______ (CM)
Meeting Date: 062524 SWZ ______ TV ______ Finance ______ 1 RESOLUTION NO. __________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE AUTHORIZING THE FINANCE DEPARTMENT TO

PREPARE NOT TO EXCEED CONTRACTS IN THE AMOUNT OF
$200,000 EACH TO FACILITATE $10,000 AND SMALLER PURCHASES WHEREAS, purchases in excess of $100,000 must be approved by Council and require Council award of the contract by resolution per Section 3-5.460 of Chapter 5 (Purchasing Procedures) of Title 3 (Finance) of the Watsonville Municipal Code; and WHEREAS, City operations require immediate purchases from time to time to facilitate small jobs under $10,000; and
WHEREAS, Pajaro Valley Fabrication, Arata, National Truck Sales and Service, Pajaro Valley Printing, Fastenal and AMS Oil have been identified as vendors commonly used to facilitate small jobs throughout many departments; and WHEREAS, it is in the City's best interest to allow the Finance Department to prepare not-to-exceed contracts for said vendors to expedite work orders.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, 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. The City Council hereby authorizes the preparation of Open Purchase Orders in the amount of $200,000 each in the form of “not to exceed” contracts for the following vendors:
 Pajaro Valley Fabrication
 Arata
 National Truck Sales and Service

Reso No. ______ (CM)
Meeting Date: 062524
2  Pajaro Valley Printing
 Fastenal
 AMS Oil
*******************************

City of Watsonville
Finance Department
June 25, 2024
• Proposed Budget
FY 2024-25

Today’s Actions
1) Resolution adopting the FY 2024-25 Budget Plan, providing certain transfers of funds & approve the Five-Year Capital Improvement Program
2) Approve a resolution adopting a Hydrant Meter Deposit 3) Approve a resolution adopting a Commercial Container Contamination Fee 4) Resolution establishing the “Total Annual Appropriations” pursuant to State Constitution Article XIII-B for Fiscal Year FY 2024-25 (Proposition 4 GANN spending limit)

Today’s Actions - continued
1) 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, 2024, to June 30, 2025, at the levy rate of 0.077% and allocating proceed to the Retirement Fund 2) Successor Housing Resolution authorizing the expenditure of low and moderate-income housing funds.
3) Successor Agency Resolution finds that the use of taxes allocated from the Watsonville 2000 Redevelopment Project outside the project area will be of benefit to the project area. 4) Approve a resolution authorizing the Finance Department to prepare open purchase orders or “not to exceed contracts” in the amount of $200,000 each to facilitate small jobs under $10,000 for the following vendors: Pajaro Valley Fabrication, Arata, National Truck Sales and Service, Pajaro Valley Printing, Fastenal and AMS Oil.

Budget Overview
General Fund
Total Special Total Debt Total Enterprise Total Internal Total Private Trust
Total Grand Total
Projected Resources 2024-25
Revenues 70,536,242 30,508,696 - 89,714,081 23,711,133 1,168,105 215,638,257 Transfers In 4,497,355 93,195 466,994 - - - 5,057,544
Total Gross Resources 75,033,597 30,601,891 466,994 89,714,081 23,711,133 1,168,105 220,695,801 Projected Expenditures
Operations 62,713,678 14,577,778 - 58,441,211 23,739,266 77,562 159,549,495 Capital 24,063,137 25,215,034 - 61,178,848 832,382 - 111,289,401 Transfers Out 135,139 4,622,381 - 285,056 - 14,968 5,057,544 Debt Service - - 466,994 1,255,524 - 1,075,575 2,798,093 Total Gross Uses 86,911,954 44,415,193 466,994 121,160,639 24,571,648 1,168,105 278,694,533 Surplus / (Shortfall) (11,878,357) (13,813,302) - (31,446,558) (860,515) - (57,998,732)

Budget By Fund

General Fund

General Fund Revenues

General Fund by Department

Key Items to Balance Operational Budget
*Keep Several Vacant Positions Unfilled Until Mid
Year
*Continue funding 4 positions with ARPA Funds for
entire fiscal year
*Elimination of 2 positions that were created at mid
year that remained unfilled

Capital
Improvement
Program
FY 24/25 through FY 28/29
FUND NAME 2024/25 2025/26 2026/27 2027/28 2028/29
GENERAL FUND 1,857,220 9,228,000 7,905,000 4,327,400 4,835,000 MEASURE R 2,352,600 3,000,000 600,000 700,000 800,000
COMPUTER REPLACEMENT FUND 125,005
TOTAL GENERAL FUND 4,334,825 12,228,000 8,505,000 5,027,400 5,635,000

SPECIAL REVENUE FUNDS
CDBG 560,000 - - - -
CIVIC CENTER 289,000 75,000 75,000 75,000 75,000
LIBRARY 30,000 - - - -
GRANTS 642,000 10,541,000 6,863,000 - -

CANNABIS - - - - -
GAS TAX 555,000 555,000 555,000 555,000 555,000
SB1 1,325,000 1,325,000 1,325,000 1,325,000 1,325,000
MEASURE Y 1,282,595 1,868,000 895,000 725,000 1,085,000 MEASURE D 1,290,870 1,214,000 1,214,000 1,214,000 1,214,000 UNDERGROUND UTILITY 250,000 - - 350,000 -
STORM DRAIN 400,000 70,000 2,000,000 - -
CITY-WIDE TRAFFIC 900,000 - - -
MANABE OW IMPACT FEE 190,000 - - -
TOTAL SPECIAL REVENUE FUNDS 6,624,465 16,738,000 12,927,000 4,244,000 4,254,000

ENTERPRISE FUNDS
AIRPORT 756,000 400,000 878,000 345,000 1,437,000
WASTEWATER 12,934,243 26,360,408 14,725,900 1,989,454 450,000 WATER 10,924,374 21,939,070 19,035,743 30,906,045 21,873,996 SOLID WASTE 1,251,000 745,808 931,738 1,319,502 928,949 INFORMATION TECHNOLOGY 80,000 - - - -
TOTAL ENTERPRISE FUNDS 25,945,617 49,445,286 35,571,381 34,560,001 24,689,945 TOTAL 36,904,907 78,411,286 57,003,381 43,831,401 34,578,945

“Spending Priorities"
"Roads, Reading, Recreation & Resiliency"
NATURE CENTER BUILDING $1,838,600.00
STREETS PROJECTS $2,439,428.00
FIELD SERVICES EQUIPMENT/VEHICLES $317,606.00
PARKS PROJECTS $800,000.00
LIBRARY DESIGN DOCUMENTS ARCH $214,000.00
$5,609,634.00

Other Funds

Other Funds
0250 0262 0305 0306 0310 0312

LIBRARY
ARPA FUNDAMERICAN

RELIEF PLAN GAS TAX
SB 1 - GAS
TAX

FUNDING

SALES TAX

MEASURE Y

MEASURE D -

TRANSPORTATIO
N FUND
4,636,759 8,988,031 1,413,546 1,100,000 5,539,100 1,178,000 - - - - - -
4,636,759 8,988,031 1,413,546 1,100,000 5,539,100 1,178,000 4,468,298 622,037 1,050,395 - 5,253,435 -
300,000 10,844,742 1,148,755 3,423,540 2,404,311 5,438,371 163,474 - - - - -
- - - - - -
4,931,772 11,466,779 2,199,150 3,423,540 7,657,746 5,438,371 (295,013) (2,478,748) (785,604) (2,323,540) (2,118,646) (4,260,371) 1,826,435 9,521,252 (35,604) 426,460 331,354 (260,371)

Enterprise Funds
0710 0720 0730 0740 0741 0789
WASTE

WATER WATER AIRPORT
SOLID
WASTE

LANDFILL

CLOSURE

FIBER OPTIC
FUND
Enterprise
Total
36,109,971 26,473,508 4,644,882 22,403,870 - 81,850 89,714,081 - - - - - - -
36,109,971 26,473,508 4,644,882 22,403,870 - 81,850 89,714,081 18,837,126 18,236,112 4,238,345 16,804,739 247,761 77,128 58,441,211 22,998,688 25,738,902 756,000 2,961,304 8,723,954 - 61,178,848 202,513 31,651 5,056 45,836 - - 285,056
485,078 13,888 23,037 733,521 - - 1,255,524
42,523,405 44,020,553 5,022,438 20,545,400 8,971,715 77,128 121,160,639 (6,413,434) (17,547,045) (377,556) 1,858,470 (8,971,715) 4,722 (31,446,558) 4,549,390 10,939,232 122,444 16,074,720 - 279,722 31,965,508 Page 408 of 477 Solid Waste Commercial
Contamination Fee

Hydrant Meter
Deposit & Refund
Upon Return of
Hydrant Meter
The Water Division is requesting an adjustment to the
hydrant meter deposit and refund upon return of hydrant meter in satisfactory condition, both in the amount of
$4,782.77. The new rates will reflect the actual costs (See Figure 1) to build and replace a hydrant meter (assembly) if it is lost, stolen, or added to awaiting inventory. This request should not be affected by Proposition 218 as it does not exceed the cost of the government to provide the service and is a deposit fee that is returned to a
customer/account holder upon the return of a hydrant
meter in satisfactory condition.

Current Risks/Considerations
*Potentially Volatile General Fund
Revenues
*UAL Payments projected to increase
*Currently working on Class and
Compensation Study for all bargaining
groups
*Overtime Costs for Fire and Police

Opportunities

Questions
• Marissa Duran, Finance Director
• 831-768-3471
• [email protected]
• watsonville.gov/DocumentCenter/View/23447/Budget-FY-24-25- DraftPage 413 of 477

6/20/2024 3:35:07 PM
C:\Program Files\eSCRIBE\TEMP\1535180660\1535180660,,,Charter Amendments.docx Agenda Report
MEETING DATE: Tuesday, June 25, 2024
TO: City Council
FROM: CITY CLERK ORTIZ
SUBJECT: RESOLUTIONS PLACING CHARTER AMENDMENTS ON THE
NOVEMBER 5, 2024, BALLOT
STATEMENT OF ISSUES:

The City is proposing amendments to the City Charter for submittal to the voters at the November 5, 2024, General Municipal Election. To do so, the Council must adopt a resolution placing each proposed charter amendment measure on the ballot and requesting that the County administer the election.

RECOMMENDED ACTION:

Adopt the following resolutions:

1. Resolution of the City Council of the City of Watsonville submitting a ballot measure to the voters to amend the City of Watsonville Charter to clarify staff positions and references to City regulations, clarify requirements regarding ordinance publication and hiring attorneys, update qualifications and duties of city manager, modify Council meeting requirements, allow the Council to set compensation for Planning Commissions, make the Board of Library Trustees a commission, allow Council Members to receive employment benefits, adjust the Mayor’s salary, and remove or revisions provisions to be consistent with current law; Ordering an election; Requesting the Santa Cruz County Elections Department conduct the election and consolidate it with the general statewide election to be held on November 5, 2024.

2. Resolution of the City Council of the City of Watsonville submitting a ballot measure to the voters to amend the City of Watsonville Charter to remove voter registration requirements for service on the Library Board of Trustees and the Parks and Recreation Commission; Ordering an election; Requesting the Santa Cruz County Elections Department conduct the election and consolidate it with the general statewide election to be held on November 5, 2024.

DISCUSSION:

The City of Watsonville Charter was adopted by the voters in 1960. Since that time, it has been amended several times, with the most recent revision in 2014. In 2023, thenMayor Montesino requested that staff explore options for updating the City’s Charter to modernize outdated language. On June 27, 2023, the City Council appointed a

6/20/2024 3:35:07 PM
C:\Program Files\eSCRIBE\TEMP\1535180660\1535180660,,,Charter Amendments.docx subcommittee to conduct the charter review. This Charter Review Subcommittee, composed of Council Members Dutra, Orozco, and Salcido, was tasked with proposing Charter amendments to the full Council, focusing on inclusivity, removing gender specific language, improving options for public participation, and addressing compensation challenges for the City Council and Commissioners.

The Charter Review Subcommittee met throughout 2023 and into 2024 and, ultimately, proposed multiple amendments to the full City Council. The Council considered the Subcommittee’s proposed amendments at public meetings on February 13, March 26, and April 23, 2024. On April 23, 2024, the Council approved the following proposed ballot measures:

Measure #1: Shall the measure amending the Charter of the City of Watsonville to clarify staff positions and references to City regulations, clarify requirements regarding ordinance publication and hiring attorneys, update qualifications and duties of City Manager, modify Council meeting requirements, allow the Council to set compensation for Planning Commissioners, make the Library Board a Commission, allow Councilmembers to receive employment benefits, adjust the Mayor’s salary, and remove or revise provisions to be consistent with current law be adopted?
Measure # 2: Shall the measure amending the Charter of the City of Watsonville to modify the eligibility requirement for appointment to the Parks and Recreation Commission and the Board of Library Trustees from registered voter to resident of the City of Watsonville be adopted?
Each Measure requires a simple majority of affirmative votes to pass.

Measure 1 – Charter Update Measure
The chart below, which was also included in the April 23, 2024, staff report, highlights the substantive revisions to the Charter. After the April 23 meeting, the Public Works Department presented an additional amendment to Charter Section 1117 to clarify the publication requirement for bids. A summary of that proposed amendment is included in the chart below.

Other amendments not included in the chart are non-substantive and update the language to use gender neutral language, clarify otherwise vague language, and update references to applicable law.

Charter Section Summary of Changes
Section 405 - Compensation Allow Councilmembers to receive employment benefits in addition to salary.

Section 408 – Meetings of
the Council
Allow Council to hold 1 regular or special meeting per month, rather than requiring council to hold 1 regular meeting each month.

6/20/2024 3:35:07 PM
C:\Program Files\eSCRIBE\TEMP\1535180660\1535180660,,,Charter Amendments.docx Section 409 – Participation Strike the word “citizen” from provision regarding participation in Council meetings.

Section 502 - Salary Mayor to receive 25% more in salary than remainder of Council.

Section 607 – Publication of
Ordinances
Update language to allow publication in any newspaper or as permitted by Sate Law.

Section 700 – City Manager Modify qualifications for City Manager candidates.

Candidates for City Manager shall have a minimum of one (1) year previous experience as a City Manager or two (2) years previous experience as an Assistant City Manager, or a
minimum of five (5) years of senior level municipal
management experience in a public service setting with
extensive experience working with City Council or County Board of Supervisors.

Section 703 – City Manager
Powers and Duties
Include requirement to meet with Council Members and
assign role of City Emergency Operations Center (EOC)
Director.

Section 804 – City Attorney
Powers and Duties
Clarify City’s abilities to hire additional attorneys.

Section 900 - Commissions Remove reference to Commissions and make Library Board a Commission. General cleanup of language.

Separately, create a ballot question to allow residents not registered to vote to be appointed to Board of Library Trustees and Parks and Recreation Commission.

Section 905 – Planning
Commission Compensation
Grant Council the ability to consider compensation for
Planning Commissioners.

Section 910 – Board of
Library Trustees
Change Library Board to a Commission.

Section 1001 – Competitive
and General Service
Clarify General Service staff positions.

Section 1002 – Personnel
Rules and Regulations
Delete due to lack of relevance.

6/20/2024 3:35:07 PM
C:\Program Files\eSCRIBE\TEMP\1535180660\1535180660,,,Charter Amendments.docx Section 1004 – Suspension,
Demotion, and Dismissal
Add reference to City Rules and Regulations.

Section 1106 – Tax Levy Delete due to lack of relevance.

Section 1113 – Funds:

Capital Outlays Fund
Remove non-enforceable language.

Section 1117 – Public Bid
Requirements.

Replace requirement that bids be published in the “official newspaper” with requirement that bids be published in “a newspaper of general circulation in the City or in accordance with State law when such a newspaper does not exist”.

Section 1118 – Contracts for
Official Advertising
Remove entire section as it is unnecessary and impractical.

Section 1122 – Tax Limits Remove Section 1122 (a) and Section 1122(b)(1) as not authorized post Proposition 13.

Section 1202 – Franchise
Terms, Condition, and
Procedures
Remove requirement to establish general terms and
conditions for franchises through ordinance and instead consider franchises individually.

Section 1504 – Violations Replace “shall” with “may” to allow flexibility in imposing violations.

Section 1506 – Publicity of
Records
Include language to refer to State policy regarding public records requests.

Measure 2 – Commission Service Measure
Currently, Section 900 of the Charter limits service on City boards and commissions to registered voters in the City. The Charter Review Subcommittee proposed removing the voter registration requirement for service on the Board of Library Trustees and Parks and Recreation Commission. Consistent with Council direction at the April 23, 2024, meeting, the Commission Service Measure, as currently drafted, would remove the voter registration requirement for service on the City’s Library Board and Parks and Recreation Commission.1 Any resident of the City could serve on either of these bodies. The voter registration qualification would still be imposed on candidates for the Planning Commission and Personnel Commission.

1 The Commission Service Measure refers to the Board of Library Trustees, rather than the Library Board, as proposed by the Charter Update Measure. If the Commission Service Measure passes, but the Charter Update Measure does not, the name of the Board of Library Trustees would remain unchanged. Therefore, the Commission Service Measure retains the current name of the Library Board. However, if both measures pass, the Commission Service Measure includes a provision directing the City Clerk to change the name of the Library Board of Trustees in Section 900, as amended by the Commissioner Service Measure to “Library Commission.”

6/20/2024 3:35:07 PM
C:\Program Files\eSCRIBE\TEMP\1535180660\1535180660,,,Charter Amendments.docx STRATEGIC PLAN:

The Election will allow voters to consider and adopt or reject amendments to the City Charter, supporting Strategic Priority 5-Community Engagement & Well-Being and ensuring Priority 7 - Efficient and High Performing Government.

FINANCIAL IMPACT:

The County of Santa Cruz Elections Department estimates the cost between $2.50 to $4.50 per voter. The City of Watsonville currently has approximately 23,000 registered voters.

Therefore, the cost could range from $57,500 to $103,500.

ALTERNATIVE ACTION:

The City Council may revise or amend the measures. The deadline for submitting measures to the County is August 9, 2024.

1 Reso No. 133-24 (CM)
Meeting Date: 06/25/24
RESOLUTION NO. 133-24 (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE SUBMITTING A BALLOT MEASURE TO THE VOTERS

TO AMEND THE CITY OF WATSONVILLE CHARTER TO CLARIFY

STAFF POSITIONS AND REFERENCES TO CITY REGULATIONS,

CLARIFY REQUIREMENTS REGARDING ORDINANCE PUBLICATION

AND HIRING ATTORNEYS, UPDATE QUALIFICATIONS AND DUTIES

OF CITY MANAGER, MODIFY COUNCIL MEETING REQUIREMENTS,

ALLOW THE COUNCIL TO SET COMPENSATION FOR PLANNING

COMMISSIONS, MAKE THE BOARD OF LIBRARY TRUSTEES A

COMMISSION, ALLOW COUNCIL MEMBERS TO RECEIVE
EMPLOYMENT BENEFITS, ADJUST THE MAYOR’S SALARY, AND

REMOVE OR REVISE PROVISIONS TO BE CONSISTENT WITH
CURRENT LAW; ORDERING AN ELECTION; REQUESTING THE

SANTA CRUZ COUNTY ELECTIONS DEPARTMENT CONDUCT THE

ELECTION AND CONSOLIDATE IT WITH THE GENERAL STATEWIDE
ELECTION TO BE HELD ON NOVEMBER 5, 2024
WHEREAS, on or about February 16, 1960, the voters of the City of Watsonville adopted the City Charter; and
WHEREAS, the Charter of the City of Watsonville has not been reviewed or amended since 2014; and
WHEREAS, on June 27, 2023, the City Council established a subcommittee of three Councilmembers (“Charter Review Subcommittee”) to review the City Charter and provide Council with proposed amendments; and
WHEREAS, the Charter Review Subcommittee focused on inclusivity, removing gender specific language, improving options for public participation, adjusting compensation for the City Council and City Commissions to broaden access to public service, creating opportunities for more civil engagement, and modernizing City practices, and recommended certain amendments consistent with this approach; and DocuSign Envelope ID: BF40760B-89FF-49A5-9DCE-6E5B3DE4401C 5198

2 Reso No. 133-24 (CM)
Meeting Date: 06/25/24
WHEREAS, the City Council considered possible amendments to the Charter and held public hearings throughout 2023 and 2024, including on February 13, March 26, and April 23, 2024, to receive public input and discuss the Charter Review Subcommittee’s proposed amendments to the Charter; and
WHEREAS, as a result of the work of the Charter Review Subcommittee, robust discussion of the City Council, and input from the community, the City Council has determined that amendments to clarify staff positions and references to City regulations, clarify requirements regarding ordinance publication and hiring attorneys, update qualifications and duties of City Manager, modify Council meeting requirements, allow the Council to set compensation for Planning Commissioners, make the Library Board a Commission, allow Councilmembers to receive employment benefits, adjust the Mayor’s salary, and remove or revise provisions to be consistent with current law should be placed before the voters of the City of Watsonville for their consideration; and WHEREAS, on June 25, 2024, by Resolution No. 123-24 (CM) , the City Council called and gave notice of a General Municipal Election on Tuesday, November 5, 2024, to be consolidated with the election to be conducted by the County of Santa Cruz on the same date; and
WHEREAS, the City Council is authorized by the California Constitution, Elections Code section 1415, and Watsonville Charter Section 1505 to submit to the voters at the election a measure amending the City Charter.

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

DocuSign Envelope ID: BF40760B-89FF-49A5-9DCE-6E5B3DE4401C

3 Reso No. 133-24 (CM)
Meeting Date: 06/25/24
Section 1. Call for Election and Ballot Language. Pursuant to its right, power, and authority under the California Constitution, the laws of the State of California, and the City of Watsonville Charter, the City Council on its own motion hereby orders submitted to the voters at the General Municipal Election to be held on November 5, 2024, a ballot measure designated by letter of the Santa Cruz County Registrar of Voters proposing to amend the Charter of the City of Watsonville, to appear on the ballot in substantially the following form:

CHARTER AMENDMENT MEASURE NO. ___
Shall the measure amending the Charter of the City of Watsonville to clarify staff positions and references to City regulations, clarify requirements regarding ordinance publication and hiring attorneys, update qualifications and duties of City Manager, modify Council meeting requirements, allow the Council to set compensation for Planning Commissioners, make the Library Board a Commission, allow Councilmembers to receive employment benefits, adjust the Mayor’s salary, and remove or revise provisions to be consistent with current law be adopted?
YES
NO
Section 2. Text of Measure. The full text of the proposed amendments to be submitted to the voters is set forth in Attachment 1 and incorporated herein by reference as if set forth in full (the “Charter Update Measure”). The City Council hereby approves the proposed Charter Update Measure, the form thereof, and its submission to the voters of the City at the November 5, 2024, election. The text of the Charter Update Measure shall be printed in the ballot materials and available for public inspection in the City Clerk’s office and on the City’s website at www.watsonville.gov. The proposed Charter Update Measure shall not take effect unless approved by a vote of the majority of the voters voting on the question.

DocuSign Envelope ID: BF40760B-89FF-49A5-9DCE-6E5B3DE4401C

4 Reso No. 133-24 (CM)
Meeting Date: 06/25/24
Section 3. Publication of Measure. The City Council directs the City Clerk to publish the Charter Update Measure in accordance with Section 12111 of the California Elections Code.

Section 4. Request to Consolidate and Conduct Election and Canvass Returns.
(a) The City Council hereby requests that the Santa Cruz County Board of Supervisors consolidate the election called by this Resolution with the statewide election to be conducted on November 5, 2024 and order the election to be conducted by the Registrar of Voters. The City Clerk is directed to file a certified copy of this Resolution with the Board of Supervisors of Santa Cruz County and the Registrar of Voters of Santa Cruz County on or before August 9, 2024.
(b) The election on the Charter Update Measure set forth in Section 2 shall be held and conducted, the voters canvassed, and the returns made, and the results ascertained and determined as provided herein. The election shall be held in accordance with the Elections Code of the State of California. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. In all particulars not recited in this resolution, the election shall be held and conducted as provided by Resolution No. 124-24 (CM) , the City of Watsonville Charter, and State law for holding municipal elections.
(c) The election on the Charter Update Measure set forth in Section 2 shall be held in Santa Cruz County in the City of Watsonville on November 5, 2024, as required by law, and the Board of Supervisors of Santa Cruz County is authorized to canvass the returns of the election with respect to the votes cast in the City of Watsonville and certify DocuSign Envelope ID: BF40760B-89FF-49A5-9DCE-6E5B3DE4401C

5 Reso No. 133-24 (CM)
Meeting Date: 06/25/24
the results to the City Council of the City of Watsonville. (d) At the first regular meeting of the City Council of the City of Watsonville occurring after the returns of the election for the Charter Update Measure set forth in Section 2 have been canvassed and the results have been certified to the City Council, or at a special meeting called for such purpose if required by law, the City Council shall cause to be entered in its minutes a statement of the results of the election. (e) The City Council acknowledges that the consolidated election will be held and conducted in the manner prescribed in Elections Code section 10418.

Section 5. Submission of Ballot Arguments.
(a) The deadline for filing direct arguments for or against the measure shall be 5:00 p.m. August 16, 2024, based upon the consolidation of the election as contemplated in Elections Code Section 10400. All such arguments shall not exceed three hundred (300) words and shall be filed with the Watsonville City Clerk. (b) The City Clerk, upon receipt of arguments and after the filing deadline, shall immediately transmit copies to any known opposing parties who may then submit rebuttals no later than August 23, 2024. The Council appoints a subcommittee of Mayor Pro Tempore Orozco, Councilmember Salcido and Councilmember Dutra to draft the argument in favor of the referenced measure.
(c) If more than one argument is submitted in favor or against the measure, the Clerk shall select the argument based upon the priorities set forth in Elections Code 9287, and if more than one argument shares the same highest priority, the City Clerk shall use a random selection methodology. Arguments received prior to the deadline shall be confidential until the deadline.

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(d) The deadline for filing rebuttal arguments for or against the ballot measure shall be 5:00 p.m. August 23, 2024 and all such arguments shall be filed with the Watsonville City Clerk, and shall not exceed 250 words in length. Arguments received prior to the deadline are confidential until the deadline. The City Council is not releasing the ability to draft a rebuttal argument for this measure.

Section 6. Impartial Analysis. The City Council hereby authorizes and directs the City Attorney to prepare an impartial analysis of the ballot measure showing the effect of the measure on the existing law and operation of the measure. The impartial analysis shall be submitted by the City Attorney to the City Clerk on or before August 16, 2024, at 5:00 p.m., shall not exceed 500 words in length, and otherwise shall comply in all respects with the applicable provisions of the Elections Code of the State of California.

Section 7. Effect of Additional Ballot Measure Amending Charter on the Same Ballot. By Resolution No. 132-24 (CM) , the City Council places additional amendments to the Charter of the City of Watsonville on the ballot for the November 5, 2024 general statewide election (“Commission Service Measure”). The Commission Service Measure and this Charter Update Measure do not conflict. The measures amend different portions of Watsonville Charter Section 900. Thus, should either or both measures receive a majority of votes, the measure or measures that receive a majority shall go into effect. If both measures receive a majority of votes, the term “registered voter” in Section 24 of the Charter Update Measure shall be replaced with “resident” pursuant to the Commission Service Measure.

Section 8. California Environmental Quality Act. Adopting this Resolution, in which the Council calls for an election, places a measure on the ballot, and takes other DocuSign Envelope ID: BF40760B-89FF-49A5-9DCE-6E5B3DE4401C

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necessary actions regarding the election, is not subject to review under the California Environmental Quality Act (“CEQA”) pursuant to Public Resources Code Section 21000, et seq.) and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.), including without limitation, Public Resources Code section 21065 and California Code of Regulations 15378(a) as this is not a “project” that may cause a direct, or reasonably foreseeable indirect, physical change in the environment. If it is a “project” it is exempt under the common sense exception (12 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.

Section 9. Services of City Clerk. The City Clerk is hereby directed to file a certified copy of this Resolution with the Santa Cruz County Board of Supervisors and the Registrar of Voters of the County of Santa Cruz and take all necessary steps to place the Charter Update Measure on the ballot and to cause the Charter Update Measure to be printed. A copy of the Charter Update Measure shall be made available to any voter upon request.

Section 10. Severance. Should any section, subsection, clause or provision of this Resolution for any reason be held to be invalid, then the remainder of the Resolution shall be deemed valid, it being expressly declared that this Resolution, and each and every section, subsection, clause and phrase hereof would have been prepared, proposed, approved, adopted and/or ratified even if any other section, subsection, sentence, clause or phrase of this Resolution were declared invalid.

Section 11. Effective Date. This Resolution shall take effect upon its adoption.

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Attachment 1
Text of Proposed Charter Update Measure to be Submitted to the Voters: Proposal to Amend the Charter of the City of Watsonville to clarify staff positions, update the qualifications and duties of City Manager, allow Councilmembers to receive employment benefits, adjust the Mayor’s salary, modify Council meeting requirements, allow the Council to set compensation for Planning Commissioners, make the Library Board a Commission, clarify requirements regarding ordinance publication and hiring attorneys, clarify references to City regulations, and remove or revise provisions to be consistent with current law should be placed before the voters of the City of Watsonville for their consideration.

PART 1. AMENDMENTS TO CITY OF WATSONVILLE CHARTER. The Council of the City of Watsonville hereby submits to the registered qualified electors of the City for their adoption or rejection, the following proposal to amend the Charter of the City of Watsonville, with amended text shown in underlined text, and deleted text shown in strikeout text.

Section 1. Section 404 of the City Charter be amended to read as follows:

Section 404. Council Member to Hold No Other Office.

No member of the Council shall hold any other public office or City employment except as is otherwise provided in this Charter. No member of the Council shall be appointed to any City position, office or employment during the term of office for which he DocuSign Envelope ID: BF40760B-89FF-49A5-9DCE-6E5B3DE4401C

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was elected or appointed until one (1) year after the expiration of the term for which he was elected or appointed except to fill a vacancy in the office of Mayor. Nothing in this Section shall prevent a Council Member or the Mayor from resigning his office to accept either an elective or appointive office under the government of a county, state or of the United States, or any governmental agency, other than the City of Watsonville. Nor shall the provisions of this Section prohibit any such officer from being a Notary Public or a member of the armed services of this State or of the United States.

Section 2. Section 405 of the City Charter is amended to read as follows:

Section 405. Compensation.

The members of the Council shall receive reimbursement for expenses incurred while performing official business of the City as authorized and approved by the Council.

In addition, each member of the Council shall receive such an amount as may be fixed by ordinance, not to exceed the amount provided in the schedule set forth in Section 36516(a) of the Government Code, and as may be amended. Such amount shall constitute total compensation which may include fringe benefits. Council Members shall be eligible for benefits in addition to salary as permitted by the Government Code.

Absence of a member of the Council from all regular and special meetings of the Council during any calendar month shall render such Council Member ineligible to receive the allowed compensation for such calendar month unless such absence is with the permission of the Council expressed in its official minutes.

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Section 3. Section 406 of the City Charter is amended to read as follows:

Section 406. Vacancies.

California Government Code Section 1770 as it now exist or may hereafter be amended lists the conditions upon which a vacancy is created., upon the occurrence of, create a vacancy. If a vacancy shall occur in the office of a Council Member, then the vacancy shall be filled only by the election of a new Council Member to be held at either a General Municipal Election or a Special Municipal Election which the Council must cause to be held no later than ninety (90) days from the date of the occurrence of the vacancy.

A Council Member elected to fill a vacancy shall serve for the remaining period of the unexpired term of office that the new Council Member was elected to fill.

Section 4. Section 407 of the City Charter is amended to read as follows:

Section 407. Interference in Administrative Matters Prohibited Neither the Council nor any of its members shall interfere with the execution by the City Manager’s execution of his powers and duties, or order or request, directly or indirectly, the appointment by the City Manager, or by any of his subordinates, of any person to any office or employment, or theirhis removal therefrom. Except for the purpose DocuSign Envelope ID: BF40760B-89FF-49A5-9DCE-6E5B3DE4401C

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of obtaining information, the Council and its members shall deal with the administrative branch of the City government solely through the City Manager, or thehis designated deputy, and neither the Council nor any member thereof shall give orders to any subordinate of the City Manager, either publicly or privately.

Section 5. Section 408 of the City Charter is amended to read as follows:

Section 408. Meetings of the Council.

The Council shall provide for the time, place and manner of holding its meetings by ordinance, not inconsistent with the provisions of this Section. Copies of such ordinances shall be kept on file in the office of the City Clerk where they shall be available for public inspection. Except as is otherwise provided by the laws of this State, all meetings of the Council shall be open to the public, and all persons shall be permitted to attend any meeting thereof. The Council shall hold at least one (1) regular meeting each month.

A special meeting may be ordered at any time by the Mayor whenever in his opinion the public business may require it, or upon the written request of any three (3) members of the Council. Whenever a special meeting shall be called, notice of such meeting shall be given as provided in Chapter 9, Part 1, Division 2, Title 5 of the Government Code of the State of California.

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Section 6. Section 409 of the City Charter is amended to read as follows:

Section 409. Citizen Participation.

Within the established rules for the conduct of its official proceedings, no person citizen shall be denied the right personally, or through counsel, to present grievances or offer suggestions for the betterment of municipal affairs at any regular meeting of the Council.

Section 7. Section 501 of the City Charter is amended to read as follows.

Section 501. Powers and Duties.

The Mayor shall be recognized as the official head of the City for all political, representative and ceremonial purposes, by the Courts for the purposes of serving civil processes, and by the Governor for military purposes. In time of public danger or emergency, the Mayorhe may direct the administration of the City government through the City Manager.

The Mayor shall be charged with the duty of making recommendations to the Council on all matters of policy and program which require Council decision, provided, that if the Mayor he recommends any increases in the City budget, hethe Mayor shall recommend the method of financing such expenditures; and provided further, that if he proposes the Mayor proposes such recommendations and thehis reasons therefore shall DocuSign Envelope ID: BF40760B-89FF-49A5-9DCE-6E5B3DE4401C

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be specific. The Mayor shall have the primary, but not exclusive, responsibility for interpreting the policies, programs and needs of the City government to the community.

HeThe Mayor may also, on his own account, inform the community on any matters of policy or program which heis believesd to be for the welfare of the community makes necessary. It shall be the duty of the Mayor to represent the Council in its relationships with civic groups within the City, and by direction of the Council, he shall represent the City in its relationships with other governmental agencies on matters of policy and program.

The Mayor shall preside at meetings of the Council and shall have a vote as a member of the Council, but. He shall have no power to veto any ordinance or resolution adopted by the Council.

The Mayor shall have authority to preserve order at all Council meetings and to move or cause the removal of any person from any meeting of the Council for disorderly conduct, to enforce the rules of the Council, and to determine the order of business under the rules of the Council.

The Mayor shall exercise such other powers and perform such other duties as may be prescribed by the Council, not inconsistent with this Charter.

Nothing in this Section shall be construed in any way as an infringement or limitation on the powers and duties of the City Manager as chief administrative officer and head of the administrative branch of the City government as prescribed in other sections of this Charter. The Mayor shall possess only such authority over the City Manager and the administrative branch as he possesses as one member of the Council.

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Section 8. Section 502 of the City Charter is amended to read as follows:

Section 502. Salary.

In addition to the renumeration authorized by Section 405, the Mayor shall receive an additional 25% of that amount as compensation for services as Mayor. The Mayor shall receive as compensation for his services as such the sum of One Hundred and no/100th ($100.00) Dollars per month which shall be in addition to his remuneration as a member of the Council.

Section 9. Section 607 of the City Charter is amended to read as follows:

Section 607. Publication of Ordinances.

The City Clerk shall cause at least the title and a summary of each proposed ordinance, with the exception of those ordinances which take effect upon adoption referred to in this Article or as permitted by State law, to be published in a newspaper of general circulation in the City at least three (3) days prior to its adoption or if there is none the Clerk shall cause it to be posted or published as otherwise allowed in accordance with State law. The City Clerk shall cause at least the title and a summary of each ordinance which takes effect upon adoption to be published at least once in the official newspaper of the City within fifteen (15) days after its adoption.

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Section 10. Section 700 of the City Charter is amended to read as follows:

Section 700. City Manager.

There shall be a City Manager who shall be the chief executive officer and head of the administrative branch of the City government. HeThe City Manager shall be chosen on the basis of his executive and administrative qualifications with special reference to his actual experience in, or his knowledge of, accepted practices with respect to the duties of histhe office as hereinafter set forth. He shall have at least one (1) year's previous experience as a City Manager, or three (3) years' previous experience as an Assistant City Manager in a city of comparable or larger size.Candidates for City Manager shall have a minimum of one (1) year previous experience as a City Manager or two (2) years previous experience as an Assistant City Manager, or a minimum of five (5) years of senior level municipal management experience in a public service setting with extensive experience working with City Council or County Board of Supervisors.

No member of the Council shall be eligible for appointment to the office of City Manager during their term for which he shall have been elected or appointed nor within one (1) year thereafter.

Section 11. Section 701 of the City Charter is amended to read as follows:

Section 701. Appointment and Removal.

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The Council shall appoint the City Manager for an indefinite term and may remove him such person by a resolution adopted by at least four (4) affirmative votes.

Section 12. Section 702 of the City Charter is amended to read as follows:

Section 702. Compensation.

The City Manager shall be paid a salary commensurate with his the responsibilities as chief executive officer of the City which salary shall be established by the Council.

Section 13. Section 703 of the City Charter is amended to read as follows:

Section 703. Powers and Duties.

The City Manager shall be responsible to the Council for the proper administration of all affairs of the City. Without limiting the foregoing general grant of powers, responsibilities and duties, the City Manager shall have power and be required to:
(a) Take a continuing interest in the effectiveness and economy of all administrative arrangements throughout the City;
(b) Insure that administrative activities with which two (2) or more departments are concerned are effectively coordinated;
(c) Appoint, suspend and/or remove, subject to the personnel provisions of this Charter, all department heads, officers and employees of the City except DocuSign Envelope ID: BF40760B-89FF-49A5-9DCE-6E5B3DE4401C

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those department heads and officers appointment of whom is vested in the Council. The City Manager may authorize the head of any department or office to appoint or remove subordinates in such office; (d) Prepare the budget annually, submit it to the Council, and be responsible for its administration after its adoption;
(e) Prepare and submit to the Council as of the end of the fiscal year a comprehensive report on the finances and administrative activities of the City for the preceding year;
(f) Make and execute contracts on behalf of the City involving expenditures budgeted or appropriated by the Council, subject to such rules or regulations as may be adopted by the Council by ordinance or resolution; (g) Regularly meet with and communicate with a Council Member on various topics or agenda items, if requested by the Council Member; (hg) Keep the Council advised of the financial condition and future needs of the City and make such recommendations on any matter as may to him seem desirable;
(ih) See that the laws of the State pertaining to the City, the provisions of this Charter and the ordinances of the City are enforced;
(ji) Submit a monthly report to the Council covering significant activities of City agencies, offices and departments under his supervision and any significant changes in administrative rules and procedures promulgated by him;
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(kj) Submit special reports in writing to the Council in answer to any requests for information when requested of him by the Council; and (l) Act as Director of Emergency Services pursuant to Watsonville Municipal Code section 4-2.03, as may be amended from time to time; and (mk) Perform such other duties consistent with this Charter as may be required of him by the Council.

Section 14. Section 704 of the City Charter is amended to read as follows:

Section 704. Participation in Official Proceedings.

The City Manager shall be accorded a seat at the Council table and at all meetings of boards and commissions and shall be entitled to participate in their deliberations but shall not have a vote. The City ManagerHe shall attend all regular and special meetings of the Council unless physically unable to do so or unless he has receivedupon prior approval for such absence from the Council.

Section 15. Section 800 of the City Charter is amended to read as follows:

Section 800. City Administrative Organization.

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The Council shall provide by ordinance, not inconsistent with this Charter, for the organization, conduct and operation of the several offices, departments and other agencies of the City. It may further provide by ordinance for the creation of additional departments, divisions, offices and agencies or for their alteration or abolition or for their assignment and reassignment to departments. Each new department so created shall be headed by an officer as department head who shall be appointed by the City Manager and may be suspended and removed by the City Manager, except as otherwise provided by this Charter. Subject to the provisions of this Charter, the Council shall provide by ordinance or resolution for the number, titles, qualifications, powers, duties, and compensation of all officers and employees.

The Council by ordinance may assign additional functions or duties to officers, departments or other agencies established by this Charter, but shall not discontinue or assign to any other office, department, or any other agency any function or duty assigned by this Charter to a particular office, department or agency. No office provided in this Charter to be filled by appointment by the City Manager shall be combined with an office provided in this Charter to be filled by appointment by the Council. When the positions are not incompatible, the Council may combine in one person the powers and duties of two (2) or more offices.

The City Manager, within the earliest practicable time following the effective date of this Charter, shall cause to be prepared and submitted to the Council, and the Council, by ordinance, shall adopt an administrative code. Such code shall provide for a complete plan of administrative organization of the City government, and provide for the powers, duties, responsibilities, obligations and procedures of the officers and employees of the DocuSign Envelope ID: BF40760B-89FF-49A5-9DCE-6E5B3DE4401C

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City, including rules and regulations of the City departments adopted by ordinance. Such code may be adopted by reference.

Rules and regulations governing administrative procedures of the City government, such as those covering personnel, budgeting, accounting and purchasing methods, shall be included in the administrative code. The code shall be amended by ordinance as necessary or advisable to keep it up to date. Sufficient copies shall be available for all officers of the City and other interested citizens persons.

Notwithstanding the foregoing, the Council may transfer or consolidate functions of the City government to or with appropriate functions of the State or County government and in case of any such transfer or consolidation, the provisions of this Charter providing for the function of the City government so transferred or consolidated shall be deemed suspended during the continuance of such transfer or consolidation, to the extent that such suspension is made necessary or convenient and is set forth in the ordinance establishing such transfer or consolidation. Any such transfer or consolidation may be repealed by ordinance.

Section 16. Section 801 of the City Charter is amended to read as follows:

Section 801. Enumeration.

The officers of the City shall consist of the Mayor, the Councillmen Members, the City Manager, the City Attorney, the City Clerk and such other officers, assistants, deputies and employees as the Council may provide.

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Section 17. Section 802 of the City Charter is amended to read as follows:

Section 802. Appointment and Removal.

The City Attorney and City Clerk shall be appointed by and may be removed by the affirmative votes of at least four (4) members of the Council. Except as otherwise provided in this Charter, all other officers, department heads and employees of the City shall be appointed by the City Manager and shall serve at his pleasure.

Section 18. Section 803 of the City Charter is amended to read as follows:

Section 803. City Clerk.

The City Clerk shall have the power and be required to:
(a) Attend all meetings of the Council and be responsible for the recording and maintaining of a full and true record of all the proceedings of the Council in books that shall bear appropriate titles and be devoted to such purpose;

(b) Maintain separate books, in which shall be recorded respectively all ordinances and resolutions, with the certificate of the Clerk annexed to each thereof stating the same to be the original or a correct copy, and as to an DocuSign Envelope ID: BF40760B-89FF-49A5-9DCE-6E5B3DE4401C

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ordinance requiring publication, stating that the same has been published in accordance with this Charter;
(c) Maintain separate books, in which a record shall be made of all written contracts and official bonds;
(d) Keep all aforementioned books documents properly indexed and open to public inspection when not in actual use;
(e) Be the custodian of the seal of the City;
(f) Administer oaths or affirmations, take affidavits and depositions pertaining to the affairs and business of the City and certify copies of the official records;
(g) Have charge of all City elections;
(h) Be responsible for the publication of all official advertising of the City; and (i) Perform such other duties consistent with this Charter as may be required of him by the Council.

Section 19. Section 804 of the City Charter is amended to read as follows:

Section 804. City Attorney: Powers and Duties.

The City Attorney shall have power and be authorized and required to:
(a) Represent and advise the Council and all City officers in all matters of law pertaining to their offices;
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(b) Represent and appear for the City in any or all actions and proceedings in which the City is concerned or is a party, and represent and appear for any City officer or employee or former City officer or employee in any or all actions and proceedings in which any such City officer or employee is concerned or is a party, for any action arising out of his employment or by reason of this official capacity;
(c) Attend all meetings of the Council and give his advice or opinion in writing whenever requested to do so by the Council or by any of the boards or officers of the City as authorized by Council;
(d) Approve the form of all bonds given to and all contracts made by the City, endorsing his approval thereon in writing;
(e) Prepare all proposed ordinances, contracts and other legal instruments for the City;
(f) Prosecute on behalf of the City all cases for violation of the Charter, City ordinances and other City laws and regulations;
(g) Perform such other legal duties consistent with this Charter as may be required of him by the Council; and
(h) Upon vacating the office, surrender to histhe successor all books, papers, files and documents pertaining to the City's affairs.

To become eligible for appointment as City Attorney, the appointee shall have been admitted to practice as an attorney at law before the Supreme Court of the State of DocuSign Envelope ID: BF40760B-89FF-49A5-9DCE-6E5B3DE4401C

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California, and shall have been engaged in the practice of law for at least two (2) years immediately prior to his appointment.

Nothing stated herein shall prohibit the Council from employing other attorneys to take charge of any litigated matter or to assist the City Attorney therein. The Council shall have control of all legal business and proceedings and may employ other attorneys to take charge of any litigation or matter or to assist the City Attorney therein.

Section 20. Section 805 of the City Charter amended to read as follows:

Section 805. Compensation.

The compensation of all City officers and employees, except as otherwise provided in this Charter, shall be by salary to be fixed by ordinance or resolution. No officer or employee shall be allowed any fees, perquisites, emoluments, rewards or compensation for the performance of histheir official duties aside from the salary or compensation as fixed by the Council, but all fees received by himthem in connection with theirhis official duties shall be paid by him into the City treasury. The provisions of this Section shall not preclude officers and employees from being reimbursed for actual and necessary expenses incurred while performing official business of the City when said expenses have been authorized or approved by the Council or the City Manager.

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Section 21. Section 806 of the City Charter is amended to read as follows:

Section 806. Oath of Office.

Each officer of the City, before entering upon the duties of thehis office, shall take the oath of office as provided for in the Constitution of this State, and shall file the same with the City Clerk.

Section 22. Section 807 of the City Charter is amended to read as follows:

Section 807. Administering Oaths.

Each department head and his deputy shall have the power to administer oaths and affirmations in connection with any official business pertaining to thathis department.

Section 23. Section 810 of the City Charter is amended to read as follows:

Section 810. Nepotism.

The Council shall not appoint to a salaried position under the City government any person who is a relative by blood or marriage within the second degree of any one or more of the members of such Council nor shall any department head or other officer DocuSign Envelope ID: BF40760B-89FF-49A5-9DCE-6E5B3DE4401C

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having appointive power appoint any relative of his within such degree to any such position.

Section 24. Article IX and Section 900 of the City Charter are amended to read as follows:

Article IX. Boards and Commissions.

Section 900. Boards and Commissions: Intents and Purposes.

Except as otherwise provided in this Article, the appointive boards and commissions established by or pursuant to this Charter are intended to serve as advisory bodies to the Council and the City Manager in carrying out their respective duties.

Membership on such bodies shall be representative of the entire community insofar as that is possible, and members on such boards commissions shall be willing to serve as a civic responsibility. No member of any advisory board or commission shall hold any paid office or employment in the City Government. In order to be eligible for appointment to any board or commission, a person shall be a qualified registered electorregistered voter of the City. In addition to those boards and commissions herein provided, the Council may create by ordinance such advisory boards or commissions as in its judgment are required and may grant them such powers and duties as are consistent with the provisions of this Charter. In addition, the Council by motion adopted by at least four (4) affirmative votes, or the City Manager with the consent of the Council, may appoint from time to time such DocuSign Envelope ID: BF40760B-89FF-49A5-9DCE-6E5B3DE4401C

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temporary committees as are deemed advisable to render counsel and advice to the appointing authorities on any designated matters or subject within the jurisdiction of such authorities.

Any vacancies in on any board or commission, from whatever cause arising, shall be filled by appointment by the Council except as otherwise provided in this Article. Upon a vacancy occurring leaving an unexpired portion of a term, any appointment to fill such vacancy shall be for the unexpired portion of such term. The provisions of Section 1770 of the Government Code of the State of California as they now exist or may hereafter be amended shall govern the existence of a vacancy except that if a member of a board or commission absents himselfis absent from three (3) consecutive regular meetings of such board or commission, unless by permission of such board or commission expressed in its official minutes, histhat office shall become vacant and shall be so declared by the Council.

Section 25. Section 901 of the City Charter is amended to read as follows:

Section 901. Appropriations.

The Council shall include in the annual budget such appropriations of funds as in its opinion shall be sufficient for the efficient and proper functioning of such boards and commissions.

Section 26. Section 902 of the City Charter is amended to read as follows:

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Section 902. Appointments.

The appointive boards and commissions created by or pursuant to this Charter shall be composed of seven (7) members. Each member of the Council shall appoint one member to each such board or commission subject to approval by resolution of the Council adopted by at least four (4) affirmative votes.

The members of each such board or commission shall be subject to removal by resolution of the Council adopted by at least four (4) affirmative votes. Except as otherwise provided by Charter or by Ordinance, the members thereof shall serve for a term of four (4) years and until their respective successors are appointed and qualified.

No person shall serve more than two (2) consecutive full terms on the same board or commission. No person who has served two (2) consecutive full terms on any board or commission shall be eligible for reappointment to the same board or commission until four years after the expiration of their second term. For purposes of this Section, a full term shall include one-half or more of any term.

Commencing December 1, 1994, members appointed to such boards and commissions shall be classified according to the term of office of the member of the Council making such appointment so that term of four (4) members would commence on December 1, 1994, and the term of three (3) members would commence on December 1, 1996. The respective terms of office of the four (4) and three (3) members of such boards and commissions in existence on either December 1, 1994, or December 1, 1996, DocuSign Envelope ID: BF40760B-89FF-49A5-9DCE-6E5B3DE4401C

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as the case may be, shall terminate upon said date or until their respective successors are appointed and qualified. Their successors shall be appointed for a full term.

Section 27. Section 903 of the City Charter is amended to read as follows:

Section 903. Existing BoardsCommissions.

The respective terms of office of all members of the boards and commissions in existence at the time the amendment of Section 902 of this Charter takes effect shall terminate upon the effective date of said amendment to this Charter.

Section 28. Section 904 of the City Charter is amended to read as follows:

SECTION 904. Meetings: Chairmen.

As soon as practicable following their original appointment, and following the first day of January of each year thereafter, each of such boards and commissions shall organize by electing one of its members to serve as presiding officer at the pleasure of such board or commission. Each board or commission shall hold regular meetings as provided by resolution of the Council and such special meetings as such board or commission may require. Except as is otherwise provided by the laws of this State, all proceedings shall be open to the public.

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The affirmative or negative vote of a majority of the entire membership of such board or commission shall be necessary for it to take action.

Unless otherwise provided, the City Manager shall provide a secretary for the recording of the minutes of each of such boards and commissions who shall keep a record of its proceedings and transactions. Each board or commission may prescribe its own procedural rules and regulations which shall be consistent with this Charter and copies of which shall be kept on file in the office of the City Clerk where they shall be available for public inspection. Each board or commission shall have the same power as the Council to compel the attendance of witnesses, to examine them under oath, to compel the production of evidence before it and to administer oaths and affirmations in any investigation or proceeding pending before it.

Section 29. Section 905 of the City Charter is amended to read as follows:

Section 905. Compensation.

The members of boards and commissionsthe Planning Commission shall receive compensation as established by resolution of the Council, which may be amended from time to time. All other commission members shall serve without compensation for their services as such but shall receive reimbursement for necessary traveling and other expenses incurred on official duty when such expenditures have been authorized by the Council.

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Section 30. Section 908 of the City Charter is amended to read as follows:

Section 908. Personnel Commission: Established.

There shall be a Personnel Commission consisting of seven (7) members none of whom, while a member of the Commission, or for a period of one (1) year after the termhe has ceased for any reason to be a member, shall be eligible for appointment to any salaried office or employment in the service of the City.

Section 31. Section 910 of the City Charter is amended to read as follows:

Section 910. Board of Library TrusteesLibrary Commission Established: Powers and Duties.

There shall be a Board of Library TrusteesLibrary Commission consisting of seven (7) members which shall have the power and duty to:
(a) Have charge of the administration ofAct in an advisory capacity to the City Council and City Manager in all matters pertaining to City libraries and make and enforce such by-laws, rules and regulations as may be necessary therefore;
(b) Designate its own secretary;
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(cb) Consider the annual budget for library purposes during the process of its preparation and make recommendations with respect thereto to the Council and the City Manager;
(dc) Purchase and acquireRecommend and set policy for acquisition of books, journals, maps, publications and other supplies peculiar to the needs of the library, subject, however, to the limitations of the budget for such purposes.

The expenditure and disbursement of funds for such purchases shall be made and approved as elsewhere in the Charter provided; (de) Accept money, personal property or real estate donated to the City for library purposes, subject to the approval of the Council and City Manager; (fe) Contract with schools, county or other governmental agencies to render or receive library services or facilities, subject to the approval of the Council; and
(fg) Perform such other duties relating to library matters as may be prescribed by the Council not inconsistent with the provisions of this Charter.

Section 32. Section 1001 of the City Charter is amended to read as follows:

Section 1001. Competitive and General Service.

The administrative service of the City shall be divided into the General Service and the Competitive Service.
(a) The General Service shall comprise the following offices and positions:

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(1) All elective offices;
(2) All members of boards and commissions;
(13) The City Manager, the City Clerk, the City Attorney, and head of each department;
(24) Persons employed for a special or temporary purpose; and positions of any class or grade exempted from the competitive service for a maximum period of six (6) months in any calendar year;
(35) Persons employed retained to render professional, scientific, technical or expert services of an occasional or exceptional character;
(46) Part time positions or employments, school crossing guards, and voluntary personnel.Persons employed on a part-time basis and all volunteers.
(b) The Competitive Service shall consist of all positions in the City administrative service which are not in the General Service.

Section 33. Section 1003 of the City Charter is repealed in its entirety.

Section 1003. Status of Existing Employees.

Any person who, on the effective date of this Charter, holds a position or employment included in the Competitive Service as defined by this Charter, and who has DocuSign Envelope ID: BF40760B-89FF-49A5-9DCE-6E5B3DE4401C

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been performing the duties of a certain classification for a period of at least six (6) months immediately prior thereto, shall acquire competitive status in said classification.

Any person who, on the effective date of this Charter, holds a position or employment not included in the Competitive Service by the provisions of this Charter, and who has been performing the duties of said position for a period of at least six (6) months immediately prior thereto, shall be entitled, upon request, to assume regular status in the Competitive Service under this Charter in a position the duties of which shall be prescribed by the Council. All other persons who, on the effective date of this Charter, hold a position or employment included in the Competitive Service as defined by this Charter shall have a probationary status in the personnel system.

Section 34. Section 1004 of the City Charter is amended to read as follows:

Section 1004. Suspension, Demotion, and Dismissal.

An officer or employee holding a regular position in the Competitive Service may be suspended without pay, demoted or removed from theirhis position for malfeasance, misconduct, incompetence, inefficiency, or for failure to perform the duties of his their position or to observe the established rules and regulations in relation thereto, or to cooperate reasonably with his superiors or fellow employees, or as may be otherwise provided in the Personnel Rules and Regulations, but subject to the right to a hearing before Personnel Commission in the manner set forth herein.

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Upon his request an officer orAn employee who is suspended, demoted or removed shall be given in writing the reasons for his suspension, demotion or removal.

He The employee shall be allowed a reasonable time for answering the same and may demand a public hearing upon the charges before the Personnel Commission. Such hearings shall be held in accordance with procedures established thereforein the City’s Personnel Rules and Regulations.

The findings and recommendations of the Personnel Commission with respect to hearings shall be transmitted to the appointing authority for final decision.

Section 35. Section 1006 of the City Charter is amended to read as follows:

Section 1006. Pension and Retirement System
The City, its Council and its several officers and employees are hereby vested with the power to do and perform any act, and to exercise any authority granted, permitted or required under the provisions of the State Employees' Retirement ActPublic Employees’ Retirement Law, as it now exists or hereafter may be amended, to enable the City to continue as a contracting City under the State Employees' Retirement SystemCalifornia Public Employees Retirement System, and, in addition, to participate in any pension system now or hereafter existing under the laws of the United States of America to which municipal officers and employees are eligible.

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Participation in any such plan or retirement benefits shall not be extended to any officer or employee theretofore retired except by approval of the Council; provided, however, that no person heretofore retired shall be deprived of his existing pension rights.

No retirement or pension plan, heretofore or hereafter established, may be discontinued or terminated except under authority granted by an ordinance adopted by a majority vote of the electors of the City voting on such proposition at an election at which such proposal is presented, unless such action has been approved by a majority vote of the members affected.

Section 36. Section 1007 of the City Charter is amended to read as follows:

Section 1007. Compulsory Arbitration for Fire Department Employee Disputes It is hereby declared to be the policy of the City of Watsonville that strikes by firefighters are not in the public interest and should be prohibited, and that a method should be adopted for peacefully and equitably resolving disputes that might otherwise lead to such strikes.

If any firefighter employed by the City of Watsonville willfully engages in a strike against the City, said employee shall be dismissed from his or her employment and may not be reinstated or returned to City employment except as a new employee. No officer, board, council or commission shall have the power to grant amnesty to any employee firefighter charged with engaging in a strike against the City.

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The City, through its duly authorized representatives, shall negotiate in good faith with the recognized fire department employee organization on all matters relating to the wages, hours, and other terms and conditions of City employment, including the establishment of procedures for the resolution of grievances submitted by either employee organization over the interpretation or application of any negotiated agreement including a provision for binding arbitration of those grievances. Unless and until agreement is reached through negotiations between the City and the recognized employee organization for the fire department or a determination is made through the arbitration procedure hereinafter provided no existing benefit or condition of employment for the members of the fire department bargaining unit shall be eliminated or changed, except as to individual employee discipline.

All disputes or controversies pertaining to wages, hours, or terms and conditions of employment, which remain unresolved after good faith negotiations between the City and the fire department employee organization shall be submitted to a three-member Board of Arbitrators upon the declaration of an impasse by the City or by the recognized employee organization involved in the dispute.

Representatives designated by the City and representatives of the recognized employee organization involved in the dispute, controversy or grievance, shall each select one arbitrator to the Board of Arbitrators within three (3) days after either party has notified the other, in writing, that it desires to proceed to arbitration. The third member of the Arbitration Board shall be selected by agreement between the two arbitrators selected by the City and the employee organization, and shall serve as the neutral arbitrator and Chairman of the Board. In the event that the arbitrators selected by the City and the DocuSign Envelope ID: BF40760B-89FF-49A5-9DCE-6E5B3DE4401C

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employee organization cannot agree upon the selection of the third arbitrator within ten (10) days from the date that either party has notified the other that it has declared an impasse, then either party may request the State of California Conciliation ServiceCalifornia State Mediation & Conciliation Service to provide a list of seven (7) persons who are qualified and experienced as labor arbitrators. If the arbitrators selected by the City and the employee organization cannot agree within three (3) days after receipt of such list on one (1) of seven (7) to act as the third arbitrator, they shall alternatively strike names from the list of nominees until only one name remains and that person shall then become the third arbitrator and chairman of the Arbitration Board.

Any arbitration convened pursuant to this section shall be conducted in conformance with, subject, and governed by Title 9 of Part 3 of the California Code of Civil Procedure.

At the conclusion of the arbitration hearings, the Arbitration Board shall direct each of the parties to submit, within such time limit as the Board may establish, a last offer of settlement on each of the issues in dispute. The Arbitration Board shall decide each issue by majority vote by selecting whichever last offer of settlement on that issue it finds most nearly conforms with those factors traditionally taken into consideration in the determination of wages, hours, and other terms and conditions of public and private employment, including, but not limited to, changes in the average consumer price index for goods and services, the wages, hours, and other terms and conditions of employment of other employees performing similar services, and the financial condition of the City and its ability to meet the cost of the award.

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After reaching a decision, the Arbitration Board shall mail or otherwise deliver a true copy of its decision to the parties. The decision of the Arbitration Board shall not be publicly disclosed and shall not be binding until ten (10) days after it is delivered to the parties. During that ten-day period the parties may meet privately, attempt to resolve their differences, and by mutual agreement amend or modify any of the decisions of the Arbitration Board. At the conclusion of the ten-day period, which may be extended by mutual agreement between the parties, the decision of the Arbitration Board together with any amendments or modifications agreed to by the parties shall be publicly disclosed and shall be binding upon the parties. The City and the recognized employee organization shall take whatever action is necessary to carry out and effectuate the award.

The expenses of any arbitration convened pursuant to this section, including the fee for the services of the Chairman of the Arbitration Board, shall be borne equally by the parties. All other expenses which the parties may incur individually are to be borne by the party incurring such expense.

Section 37. Section 1104 of the City Charter is amended to read as follows:

Section 1104. Budget: Public Hearing
Upon receipt of the proposed budget from the City Manager, the Council shall proceed to consider the proposed budget and may increase, decrease or omit any item or insert new items therein. Before adopting the budget, the Council shall fix the time and place for holding a public hearing on the proposed budget and shall cause a notice thereof DocuSign Envelope ID: BF40760B-89FF-49A5-9DCE-6E5B3DE4401C

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to be published not less than ten (10) days prior to said hearing in a newspaper of general circulation in the City or if there is none, the Clerk shall cause it to be posted or published as otherwise allowed according to State law. by at least one (1) insertion in the official newspaper of the City. Copies of the proposed budget shall be available for inspection by the public in the office of the City Clerk at least ten (10 ) days prior to said hearing. At the time and place so advertised, or at any time and place to which such public hearing shall from time to time be adjourned, the Council shall hold a public hearing on the proposed budget at which interested persons desiring to be heard shall be given such opportunity.

Section 38. Section 1106 of the City Charter is amended to read as follows:

Section 1106. Tax Levy.

The Council shall determine the amount of money required to be raised by a tax sufficient to meet the obligations of the City to the State Employees’ Retirement System, or other system for the retirement of City Employees, as described in Section 1122 herein.

The tax shall not exceed 7.7 cents on each One Hundred and no/100th ($100.00) Dollars of assessed value. ad valorem municipal property taxation and shall fix the ad valorem municipal tax rate on or before August 31 of each year and certify the same to the County authorities if the County system of ad valorem assessment and tax collection is used by the City.

Section 39. Section 1110 of the City Charter is amended to read as follows:

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Section 1110. Budget Message. Capital Program.

The City Manager shall also include in the message, or attach thereto, a program of proposed public improvements for the ensuing five (5) year period prepared by the Planning Commission in accordance with Section 907 (b), together with his comments thereon.

Section 40. That Section 1113 of the City Charter is amended to read as follows:

Section 1113. Funds: Capital Outlays Fund.

A fund for capital outlays generally is hereby created to be known as the "Capital Outlays Funds". The Council may create by ordinance or resolution a special fund or funds for a special capital outlay purpose. The Council may levy and collect taxes for capital outlays and may include in the annual tax levy a levy for such purposes in which event it must apportion and appropriate to any such fund or funds the moneys derived from such levy. It may not, in making such levy, exceed the maximum tax rate provided for in this Charter unless authorized by the affirmative votes of a majority of the electors voting on the proposition at any election at which such question is submitted. The number of years in which such increased levy is to be made shall be specified in such proposition.

The Council may transfer to any such fund any unencumbered surplus funds remaining on hand in the City at any time.

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Once created such fund shall remain inviolate for the purpose for which it was created; if for capital outlays generally, then for any such purposes, and if for a special capital outlay, then for such purpose only, unless the use of such fund for some other capital outlay purpose is authorized by the affirmative votes of a majority of the electorate voting on such proposition at a general or special election at which such proposition is submitted.

If the purpose for which any special capital outlay fund has been created has been accomplished, the Council may transfer any unexpended or unencumbered surplus remaining in such fund to the fund for capital outlays generally, established by this Charter..

Section 41. Section 1117 of the City Charter is amended to read as follows:

Section 1117. Public Bid Requirements.

Every expenditure of City moneys for public works construction as hereafter defined of more than that amount set forth in Section 20162 of the Public Contracts Code of the State of California shall be let to the lowest responsible bidder after notice of publication in a newspaper of general circulation in the City, or in accordance with state law when such newspaper does not exist, the official newspaper by one (1) or more insertions, the first of which shall be at least ten (10) days before time for opening bids; provided, however, that upon adoption of ordinance by the Council the "Uniform Public DocuSign Envelope ID: BF40760B-89FF-49A5-9DCE-6E5B3DE4401C

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Construction Cost Accounting Act" set forth in Chapter 2 (commencing with Section 221000) to Part 3 of Division 2 of the Public Contracts Code, an alternative public bidding procedure, shall be enacted to have the City be subject to such procedure notwithstanding other procedure set forth in this Section.

The Council may reject any and all bids presented and may re-advertise in its discretion. The Council after rejecting bids, or if no bids are received, may declare and determine that, in its opinion, based on estimates approved by the City Manager the work in question may be performed better or more economically by the City with its own employees and after the adoption of a resolution to this effect by at least five (5) affirmative votes of the Council may proceed to have said work done in the manner stated, without further observance of the provisions of this Section.

Such expenditures may be made without advertising for bids, if such expenditures shall be deemed by the Council to be of urgent necessity for the preservation of life, health or property and shall be authorized by resolution passed by at least five (5) affirmative votes of the Council and containing a declaration of the facts constituting the urgency.

All bids for public works construction shall be accompanied by either a certified or cashier's check or a bidder's bond executed by a corporate surety authorized to engage in such business in California made payable to the City. Such security shall be in an amount not less than that specified in the notice inviting bids or in the specifications referred to therein, or if no amount be so specified, then in an amount not less than ten (10%) percent of the aggregate amount of the bid. If the successful bidder neglects or refuses to enter into the contract within the time specified in the notice inviting bids or specifications referred to therein, the amount of the bidder's security may be declared DocuSign Envelope ID: BF40760B-89FF-49A5-9DCE-6E5B3DE4401C

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forfeited to the City and may be collected and paid into its General Fund and all bonds so forfeited shall be prosecuted and the amount thereof collected and paid into such fund.

For the purposes of this Section, public works construction shall be defined as a project for the erection or improvement of public buildings, streets, drains, sewers, parking lots, parks or playgrounds, provided, however, that expenditures for the extension, improvement or development of the City water system shall be excepted from the requirements of this Section. Maintenance or repair of public buildings, streets, drains, sewers, parking lots, parks or playgrounds shall not be considered as public works construction. The provisions of this Section shall not apply to materials, supplies or equipment obtained or purchased from any governmental agency, or for materials, supplies or equipment which can be obtained from only one vendor.

All bids shall be sealed and be filed with the officer in charge of the purchasing function no later than the opening time specified in the notice inviting bids, who shall receive and be custodian of such bids and keep the same confidential until they are opened and declared.

All bids shall be publicly opened and declared at the time and the place fixed in the notice inviting bids.

Thereafter, the bids shall be tabulated and analyzed by the officer in charge of the purchasing function, who shall submit them, together with recommendations thereon, to the City Manager. The City Manager shall review the bids and submit them to the Council, along with his recommendations, at the next regular meeting of the Council.

The Council shall have the right to waive any informality or minor irregularity in a bid.

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Section 42. Section 1118 of the City Charter is repealed in its entirety.

Section 1118. Contracts for Official Advertising.

The Council shall let annually contracts for the official advertising of the City for the ensuing fiscal year. In the event there is more than one daily newspaper of general circulation published and circulated in the City, the Council shall advertise for one (1) day, in one (1) or more such papers, setting forth distinctly and specifically the work contemplated to be done, and asking for sealed proposals therefore. The proposals shall specify the type and spacing to be used at the rate or rates named in the bids. The Council shall let the contracts for such official advertising to the lowest responsible bidder publishing a daily newspaper in the City which is a newspaper of general circulation and has been in existence at the time of awarding the contract at least one (1) year; provided that the Council may reject any or all bids and advertise for new bids.

Section 43. Section 1122 of the City Charter is amended to read as follows:

Section 1122. Tax Limits
(a) General. The Council shall not levy a property tax for municipal purposes in excess of One and fifty five/100ths ($l.55) Dollars on each One Hundred and no/100ths ($100.00) Dollars of the assessed value of taxable property DocuSign Envelope ID: BF40760B-89FF-49A5-9DCE-6E5B3DE4401C

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in the City, except as otherwise provided in this Section, unless authorized by the affirmative votes of a majority of the electorate voting on a proposition to increase such levy at any election at which the question of such increased levy for municipal purposes is submitted to the electors. The number of years for which such increased levy is to be made shall be specified in such proposition.
(ab) Additional Taxes. There shall be levied and collected, as additional taxes, at the time and in the same manner as other property taxes for municipal purposes are levied and collected if no other provision for the same is made:
(1) A tax sufficient to meet all liabilities of the City for principal and interest of all bonds or judgments due and unpaid, or to become due during the ensuing fiscal year, which constitute general obligations of the City; and
(12) A tax sufficient to meet all obligations of the City to the State Employees' Retirement System, or other system for the retirement of City employees, due and unpaid or to become due during the ensuing fiscal year.
(23) The tax provided for in Subdivision (b)(2) of this section shall not be collected at a rate exceeding 7.7 cents on each One Hundred and no/100th ($100.00) Dollars of assessed value.

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Section 44. Section 1200 of the City Charter is amended to read as follows:

Section 1200. Franchises to Operate.

No person, firm or corporation shall exercise any public utility franchise right or privilege in the City except insofar as he or itthey may be entitled to do so by direct grant by the Constitution of the State of California or of the United States of America, unless he or itthey shall have obtained a grant therefore in accordance with the provisions of this Article of this Charter and in accordance with the procedure prescribed by ordinance. Until such a procedural ordinance shall hereafter be adopted, the method provided by any law of the State relative to the granting of a franchise of the character of that for which application is being made shall apply. Nothing contained in this Article shall be construed to invalidate any lawful franchise heretofore granted nor to necessitate the obtaining of a new franchise for a use for which a franchise holder shall have a valid unexpired franchise. Nothing contained in this Article shall be construed as applying to or requiring the operators of refrigeration or storage utilities or the carriers of freight or passengers not operating over a fixed route to obtain a franchise to operate within the City unless required so to do by ordinance of the City of Watsonville.

Section 45. Section 1202 of the City Charter is amended to read as follows:

Section 1202. Franchise Terms, Conditions, and Procedures.

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The Council, by ordinance, shall prescribe the terms and conditions under which franchises will be granted, subject to the provisions of this Charter, and the procedure for granting franchises; provided, however, that such procedural ordinance or ordinances shall make provisions for the giving of public notice of franchise applications, for protests against the granting of such franchise and for public hearings on such applications.

The Council, in granting franchises, shall prescribe the terms and conditions of such franchises in accordance with the applicable provisions of this Charter and any ordinance adopted pursuant thereto, and may in such franchise impose such other and additional terms and conditions not in conflict with said Charter or ordinances, whether governmental or contractual in character, as in the judgment of said Council are in the public interest or as the people, by initiative, indicate they desire to have so imposed.

Section 46. Section 1503 of the City Charter is amended to read as follows:

Section 1503. Definitions.

Unless the provisions or the context otherwise require, as used in this Charter:
(a) "Shall" is mandatory, and "may" is permissive;
(b) "City" is the City of Watsonville and "department", "board", "commission", "agency", "officer" or "employee" is a department, board, commission, agency, officer or employee, as the case may be, of the City of Watsonville; (c) "Council" is the City Council of the City of Watsonville; DocuSign Envelope ID: BF40760B-89FF-49A5-9DCE-6E5B3DE4401C

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(d) A "member of the Council" means any one of the seven (7) members of the Council, including the Mayor;
(e) A "Councilman" or "Council Member" means any one of the seven (7) members of the Council, including the Mayor;
(f) "County" is the County of Santa Cruz;
(g) "State" is the State of California;
(h) "Newspaper of general circulation within the City" is as defined by Section 6000 of the Government Code of the State of California; (i) "He", "Him", "His" or any word in this Charter importing the masculine gender shall extend to and be applied to females as well as males; (ji) "District" means any one of seven geographical areas of the City divided for the purpose of electing members of the Council.
(jk) “Vacancy” means empty or unoccupied. A “vacancy” cannot begin or be in effect until there is no one in actual existence discharging the duties of the office.

Section 47. Section 1504 of the City Charter is amended to read as follows:

Section 1504. Violations.

The violation of any provision of this Charter mayshall be deemed a misdemeanor and be punishable upon conviction by a fine of not exceeding One Thousand ($1,000.00) DocuSign Envelope ID: BF40760B-89FF-49A5-9DCE-6E5B3DE4401C

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Dollars or by imprisonment for a term of not exceeding six (6) months or by both such fine and imprisonment."
Section 48. Section 1506 of the City Charter is amended to read as follows:

Section 1506. Publicity of Records.

All records and accounts of every office, department or other agency of the City shall be open to inspection by any citizenperson, any representative of an citizens' organization, or any representative of the press at all reasonable times and under reasonable regulations established by the City Manager, except records and documents the disclosure of which would tend to defeat the lawful purpose which they are intended to accomplish, or as otherwise exempted from disclosure pursuant to State law.

We do further certify and declare that the foregoing constitutes a true and correct statement of the actions and proceedings had by the City of Watsonville and the Board of Aldermen of said City, in the matter of the framing, proposal and submission of said proposed Charter for the government of the City of Watsonville, and in the calling, voting upon, and canvassing the returns and declaring the results of said election.

PART 2. BALLOT DESCRIPTION. As provided in Government Code section 34458.5, the following ballot description is included in this Proposed Charter Update Measure:

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The proposed Charter Update Measure amends City of Watsonville Charter Sections 404 through 409, 501, 502, 607, 700 through 704, 800 through 807, 810, 900 through 905, 908, 910, 1001, 1003, 1004, 1006, 1007, 1104, 1106, 1110, 1113, 1117, 1118, 1122, 1200, 1202, 1503, 1504, and 1506 to of the Charter of the City of Watsonville.

The amendments provide for certain new City powers as a result of the Charter.

Section 405 would be amended to allow Council Members to consider obtaining fringe benefits, such as health insurance, in addition to their salary. Section 408 would be amended to remove the requirement that the Council hold one regular meeting each month, and to require, instead, either one special or one regular meeting per month.

Section 804 would clarify the City’s ability to hire additional attorneys to assist the City Attorney. Amendments to Section 905 would allow the City Council to consider compensating Planning Commissioners, as established by a resolution of the Council.

Amendments to Section 1004 would add the City’s Personnel Rules and Regulations as a basis for City employee or officer discipline. Section 1117 would revise requirements for posting notices inviting bits to facilitate posting such notices inviting bids in a manner reasonably calculated to reach a broad range of potential bidders and incentivize a competitive bidding process. Section 1202 would be amended to remove the requirement that the City establish general terms and conditions for all franchises through ordinance and, instead, consider franchises individually. Section 1506 would be amended to allow the City flexibility in imposing punishment for violations of the Charter.

The proposed Charter Update Measure also affect the City Council’s power to raise its own compensation or that of other city officials. The amendments to Section 405 DocuSign Envelope ID: BF40760B-89FF-49A5-9DCE-6E5B3DE4401C

52 Reso No. 133-24 (CM)
Meeting Date: 06/25/24
would provide that Councilmembers are eligible for employment benefits in addition to salary. Section 502 would change the Mayor’s compensation, granting the Mayor an additional 25% of the City Council salary in addition to the renumeration granted all Council Members. The proposed amendments to Section 905 allow the City Council to compensate City Planning Commissioners by subsequent resolution.

PART 3. SEVERABILITY. It is the intent of the people that the provisions of this Charter Update Measure are severable and that if any provision of this Charter Update Measure or the application thereof to any person or circumstance, is held invalid then such invalidity shall not affect any other provision or the application of this Chater Update Measure which can be given effect without the invalid provision or application.

PART 4. CERTIFICATION AND FILING. Upon ratification by the voters, the City Clerk is directed to certify to the passage of this Charter Update Measure and to file it in the Office of the Secretary of State forthwith, and to take such other actions required by law as are necessary to give effect to its passage.

PART 5. EFFECTIVE DATE. This Charter Update Measure shall become effective in the manner provided for by law.

DocuSign Envelope ID: BF40760B-89FF-49A5-9DCE-6E5B3DE4401C

53 Reso No. 133-24 (CM)
Meeting Date: 06/25/24
The foregoing resolution was introduced at a regular meeting of the Council of the City of Watsonville, held on the 25th day of June , 2024, by Mayor Pro Tempore Orozco , who moved its adoption, which motion being duly seconded by Mayor QuirozCarter , was upon roll call carried and the resolution adopted by the following vote:

AYES: COUNCIL MEMBERS: Clark, Dutra, Montesino, Orozco, Parker, Salcido, Quiroz-Carter
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
____________________________
Vanessa Quiroz-Carter, Mayor
ATTEST:
_____________________________
City Clerk
_______________________
Date
APPROVED AS TO FORM:
_____________________________
City Attorney

************************************
I, Irwin I. Ortiz, City Clerk of the City of Watsonville, do hereby certify that the foregoing Resolution No. 133-24 (CM) was duly and regularly passed and adopted by the Watsonville City Council at a meeting thereof held on the 25th day of June , 2024, and that the foregoing is a full, true and correct copy of said Resolution. ________________________________
Irwin I. Ortiz, City Clerk
Date__________________________
DocuSign Envelope ID: BF40760B-89FF-49A5-9DCE-6E5B3DE4401C 7/5/2024 | 4:26 PM PDT
7/5/2024 | 4:26 PM PDT

June 7, 2024
Mayor Vanessa Quiroz-Carter, District 2
Mayor Pro Tempore Maria Orozco, District 3
Council Member Casey Clark, District 5
Council Member Jimmy Dutra, District 6
Council Member Eduardo Montesino, District 1
Council Member Ari Parker, District 7
Council Member Kristal Salcido, District 4
City Hall, 275 Main St, Suite 400
Watsonville, CA 95076
RE: City Charter Amendments for Board & Commission Eligibility Dear City Council Members,
We are writing to ask the Watsonville City Council to adopt the original subcommittee and staff charter language recommendation that expands board and commission appointments to all City residents. There is no legal barrier, either at the federal, state, or local level, to adopting this inclusive approach. Allowing this language on the ballot gives voters the option to decide how they want their city to operate and facilitate civic engagement.

Our city governments work best when we have equitable representation, and this requires access to serve on boards and commissions. Ventures, a nonprofit serving the Central Coast since 1989 and headquartered in Watsonville, is dedicated to building a shared and prosperous economic future for all. We work with thousands of Watsonville area residents who share with us the value of belonging and having input into the governance of the city.

All are taxpayers and many are small business owners who through no fault of their own are unable to register to vote. Ensuring all voices are heard strengthens policy and decision-making, improving our local government’s ability to meet the needs of our entire community.

Allowing voters to decide on expanding board and commission appointments to all residents of the city, regardless of voter registration, gives voters an option that creates a

PO Box 2375, Watsonville, CA 95077 | [email protected] | 831.200.1719 | sccvonline.org unified City and aligns the city charter to most chartered cities, state laws, and neighboring jurisdictions.

The currently proposed Measure 2 ballot language fosters division through the creation of a second-class commissioner with limited participation and is reminiscent of a dark history in our country and region where voter registration was used to limit access to governance for communities of color and women.

To provide voters with a genuine and comprehensive choice in November, we ask you to revisit the current proposed language, and instead revert to the language originally proposed through the subcommittee and staff. We also point out that board and commission appointments are made at the leisure of the City Council, just as the City Council retains all oversight of boards and commissions.

We ask you to allow voters to decide for themselves on the level of inclusivity the city should extend across all boards and commissions. Give voters the right to decide on whether they desire to create a more inclusive, representative, and vibrant city that benefits from the diverse perspectives and experiences of all its residents through its boards and commissions.

Sincerely,
Maria Cadenas
Executive Director
cc: Tamara Vides, Interim City Manager, City of Watsonville Irwin I. Ortiz, City Clerk, City of Watsonville
Board of Directors, Ventures

From: City Council
To: Eduardo Montesino; Vanessa Quiroz; Maria Orozco; Kristal Salcido; Casey Clark; Jimmy Dutra; Ari Parker; cityclerk
Subject: FW: City of Watsonville Meeting- Public Comment Agenda Item 9.a Date: Monday, June 24, 2024 4:10:10 PM
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From: Maya Peterson <[email protected]>
Sent: Monday, June 24, 2024 4:09:40 PM (UTC-08:00) Pacific Time (US & Canada) To: City Council <[email protected]>
Subject: City of Watsonville Meeting- Public Comment Agenda Item 9.a Good Afternoon,
The City of Watsonville City Council Meeting Agenda would not allow me to submit public comment via the online portal. Please accept the Community Action Board of Santa Cruz County's public comment on Agenda Item 9.a:

Dear Mayor and Watsonville City Council Members,
The Community Action Board of Santa Cruz County, Inc. (CAB) urges your Council to support amending the City Charter to allow all City residents to serve on City board and commissions, regardless of their voter registration status. We request that the Watsonville City Council adopt the original subcommittee and staff recommendation, which extends eligibility for board and commission appointments to all City residents. As we understand, there is no legal, state, federal, or local barrier to adopt this inclusive and equitable approach.

Our City of Watsonville is made up of a diverse group of community members and it is our vision that everyone, regardless of voter status, has an opportunity to participate in shaping the city's future. It is your responsibility to support what is in the best interest of EVERYONE who makes up our community. This is a wonderful opportunity to give voice to segments of Watsonville who have been traditionally overlooked. Allowing voters to decide to expand boards and commissions to all residents of the city, regardless of voter registration, empowers us to create a unified City and support civic engagement like we have NEVER done before.

This is a groundbreaking opportunity that is based on our City values of Character, Compassion and Communication and we urge you to allow the community to vote on the direction that is best for our future.

As the County’s designated anti-poverty community action agency, CAB strongly believes in the values of equity, inclusion, and service. The decisions made by these bodies affect all

residents, whether they are registered voters or not, so it is essential that everyone has the opportunity to be represented and to participate. This change will enhance community and civic engagement and ensure the inclusion of diverse voices. Thank you for considering this important issue of equity and inclusion.

In Community,
MariaElena De La Garza, CEO
Community Action Board of Santa Cruz County, Inc.

Thank you!
Maya Peterson
Administrative Support Specialist
Community Action Board of Santa Cruz County, Inc.
406 Main Street, Suite 311, Watsonville, CA 95076
Office: 831.535.1395
Community Action Board of Sonia OUz County, Inc.