Watsonville City Council
March 24, 2026

4 customer rate schedules are found in Attachment 1 for the Prop 218 notice to customers. Detailed customer impacts will be discussed in the staff PowerPoint presentation. Typical bill impacts for Single Family Residential (SFR) customers are presented below. The figure showing a low impact SFR represents a household with lower water demands (6 billing units per month) and a smaller trash cart for solid waste service. The figure showing a typical SFR represents 8 billing units of water per month and a larger trash cart. First year bill impacts are estimated at approximately $13 per month and $14 per month respectively. Also presented is a comparison of the cost of providing the three services against neighboring agencies at both current and proposed rates.

5 Communications and Outreach
As part of the comprehensive utility rate study, Raftelis’ strategic communications staff is providing planning and outreach support for the City, including support for messaging rate development and adoption, promotion of water and wastewater infrastructure investments, and assistance with future customer-facing events. Raftelis will continue to work closely with City staff to encourage public participation and two-way communications and to develop presentations, handouts, and website, social media, and other digital platform content. These activities include:
 Rate Engagement Page: A digital platform is being developed to include an educational video series, answers to frequently asked questions, information on public meetings, and a bill calculator for customers to estimate the impacts of proposed rate adjustments on their monthly bill.
 Community Presentations:
o Plans are being developed for a Utility Open House in April 2026 for ratepayers and interested community members to tour facilities and learn about their water, wastewater, and trash services directly from City staff. o Separately, Raftelis and City staff are working to host one or more virtual meetings to communicate the rate study process, discuss critical utility infrastructure investments, and inform ratepayers on what to expect in the coming months and years

6 Proposition 218 Notice & Public Hearing
Under California law, customers must be notified and can protest proposed water, wastewater, and solid waste rate increases. If approved, the Public Notice, in compliance with Proposition 218, will be mailed to all property owners and customers by April 1. The resolution adopting the proposed rates and the Public Hearing will be scheduled for May 26, 2026 and the rates would become effective on July 1, 2026. The Proposition 218 Notice is included as Attachment 1. Additionally, both the Proposition 218 Notice and the Utility Rate Study Report will be publicly available on the City’s website.

In addition to mailing the Proposition 218 Notices, City staff is scheduling facility tours and presentations to ensure that all customers are aware of the proposed rate changes. A schedule of tours and presentations will be available at the City’s website.

Resolution Updating Proposition 218 Procedures
Government Code Sections 53759 et seq., which were established by Senate Bill 323 (2021) and Assembly Bill 2257 (2024) establish a formal objection procedure for ratepayers to raise concerns about proposed rate changes.

The legislation created an exhaustion of administrative remedies procedure that requires ratepayers to bring an objection regarding a proposed property-related water or wastewater fee or charge to the governing body’s attention prior to the deadline established by the agency as part of the rate consideration process. The purpose is to provide an opportunity for the local public agency to address or resolve the objections before its governing body makes a final decision on whether to establish a new, or amend a current, property-related fee pursuant to Proposition 218. It also makes it such that a challenge to new or increased water or wastewater rates must be brought within 120 days if the agency follows certain procedures in adopting those rates.

The City’s Resolution establishing guidelines for the submission and tabulation of protests in connection with water and wastewater rate hearings conducted pursuant to Article XIIID, Section 6 of the California Constitution (Proposition 218). The updated Resolution includes a new Section 13 on Legal Objection Procedures that would allow the City to utilize these provisions of the Government Code.

Attachment 1, the Proposition 218 Notice, includes instructions and deadlines on submitting legal objections in addition to the protests discussed in the previous section.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

The proposed action to authorize proceeding with the Proposition 218 public hearing process for utility rate adjustments is not a project subject to the California Environmental Quality Act (CEQA), as it involves the establishment of utility rates and charges to fund ongoing operations, maintenance, and capital improvements for existing utility services.

STRATEGIC PLAN:

7 Community Engagement & Well-being
Efficient and Well-performing Government
Fiscal Health
Infrastructure & Environment
This item supports the following City Strategic Plan priorities:
 Fiscal Health — The proposed rate adjustments maintain the financial sustainability of the City's three enterprise funds (Water, Wastewater, and Solid Waste). The five-year financial plans establish adequate reserves, maintain debt service coverage targets, and fund critical capital improvements without reliance on the General Fund.
 Infrastructure & Environment — Rate revenue directly funds essential capital projects, including compliance with California's Chromium-6 Maximum Contaminant Level (MCL) standards, the Headworks and Cogeneration Facility rehabilitation at the Water Pollution Control Facility, and organic waste diversion programs mandated by SB 1383. These investments protect public health, safeguard the environment, and extend the useful life of the City's utility infrastructure.  Efficient and Well-performing Government — The rate study follows industry best practices aligned with American Water Works Association (AWWA) and Water Environment Federation (WEF) standards. The cost-of-service methodology ensures rates are proportionate to each customer class's demand on the system, meeting Proposition 218 requirements for transparency and accountability.
 Community Engagement & Well-being — The Proposition 218 process provides residents and property owners with a formal 45-day notice and protest period, ensuring meaningful public participation before any rate adjustments take effect. The proposed rates are designed to maintain reliable, safe utility services that support the quality of life for all residents.

FINANCIAL IMPACT:

There are no direct financial impacts from the current action. The costs to prepare and send the Proposition 218 Notice are included in the adopted Fiscal Year 2026 budget.

The proposed financial plan and associated rate increases will enable the City’s three Enterprise Utilities to meet their current and future fiscal obligations, to properly operate and maintain critical infrastructure, to fund capital projects and meet future debt service obligations, and to comply with new regulations.

There is no impact to the General Fund.

ALTERNATIVE ACTION:

No alternative action is recommended. The proposed utility rate increases are deemed those necessary by staff to ensure the fiscal viability of the three enterprise utilities.

8 The City Council could choose to request changes to any element of the study, including the rate structure or revenue requirements. Impacts would include, at the minimum, delays in the Proposition 218 process schedule and depending on the changes, loss of potential revenues and deferred initiation of capital projects. Potential delays could also negatively impact the water and wastewater fund credit ratings, as those are dependent on an adequate rate structure to support planned capital spending ATTACHMENTS AND/OR REFERENCES (IF ANY):
1) Proposition 218 Notice

DRAFT
Notice of Public Hearing and
Proposed Utility Rate Changes
The City of Watsonville is proposing updates to its
utility rates for water, sewer (wastewater), and solid
waste (trash and recycling). The City last studied
rates in 2021. Since then, the cost to provide safe and reliable services has gone up. The City also faces new
state health and environmental rules that increase
compliance costs.

To help pay for these vital updates, the Watsonville
City Council will hold a public hearing in the City
Council Chambers on May 26, 2026, beginning at
4:30 p.m., or as soon thereafter as is practical, to
consider proposed rate changes. The hearing will be
held in accordance with Proposition 218 (California
Constitution Article XIII D, Section 6), and the public is invited to provide spoken or written comments,
while customers who are property owners or tenants
will also have an opportunity to submit a written
protest or written objection as described in this
Notice. This Notice summarizes the reason for and
amounts of the proposed updates, as well as the
basis for calculating the updated amounts. Additional
information regarding the proposed rate updates is
available at: Watsonville.gov.

If adopted, the proposed new rates will take effect
on July 1, 2026, with annual adjustments each July 1
through 2030 . This Notice identifies each fiscal year
within which the City will receive rate revenue. Thus,
the rates effective on July 1, 2026 are for the fiscal
year “Proposed 2027,” with the last update effective
July 1, 2030 for the fiscal year “Proposed 2031.”
Public Hearing to Consider Updates to Utility
Rates for Water, Sewer (Wastewater), and
Solid Waste (Trash and Recycling)
26 Watsonville City Council Chambers
275 Main Street, Suite 400
Watsonville, CA 95076
Tuesday, May 26, 2026
4:30 p.m.

Why Rate Updates Are Needed
Prices for fuel, labor, and supplies have gone up sharply.

At the same time, much of our wastewater plant is
worn out. It was built in 1961 and is reaching the end of its useful life. We must replace the main facilities now to avoid spills, environmental fines, and public health risks.

What Happens If We Do Not Update Rates?
The City cannot legally operate utilities at a loss. If these rate adjustments are not approved, the City will
face severe consequences:
• Increased Emergency Costs: Failing to replace the
wastewater plant now will force the City to pay
top dollar for emergency repairs when 60-year-old
equipment breaks down.
• Public Health and Environmental Risks: We will
face a higher risk of sewer spills into local waterways and potential fines for failing to meet strict state water quality standards.
• Depleted Funds: Without these adjustments, the
utility funds will not have enough money to cover
basic daily operations or the new state mandates
for clean drinking water and organic waste recy- cling.

System Value, Safety, and the Eenvironment
When you turn on the tap, flush the toilet, or put your bins on the curb, Watsonville’s local teams make sure
everything works perfectly 24 hours a day. Here is what it takes to serve you:
• Water: We maintain 178 miles of pipes, 6 water
tanks, and 12 wells to deliver clean water to 15,000
connections. We are planning required upgrades to
treat drinking water for Chromium-6 to keep your
water safe.
• Sewer (which may also be referred to as
Wastewater): We treat 5.5 million gallons of sewage
every day through 170 miles of pipes and over 20
pump stations. Properly treating this water protects
the Monterey Bay National Marine Sanctuary. We
also treat wastewater from neighboring districts,
who pay their fair share of the costs.
• Trash (Solid Waste): Our 52 solid waste employees
do more than pick up trash. They run the Harvest
Drive drop-off center and sweep more than 10,000
miles of city streets every year. We are also
improving how we collect trash and recycling to
meet the state’s new organic waste laws (SB 1383)
and protect our local environment.

Watsonville.gov
(831) 768-3100
Attachment 1

DRAFT
Cost of Service
Enterprise Funds
By law, the City can only charge what it actually
costs to provide service. There are no profits. These
are “Enterprise Funds.” This means rates only cover
the true cost of providing the service, without using
tax dollars. Utility funds cannot legally be used to
pay for other City services like parks, police, or fire.

Strategic Financing
To protect customers from sudden price spikes, the
City will not fund these massive upgrades entirely
with cash from current customers. Instead, the City
will use loans (including a $37 million, low-interest
state loan) to spread the cost out over time. This
means future residents who benefit from these
50-year upgrades will help pay for them.

Typical Bill Impacts - 2026
Next fiscal year, a typical single-family home will see an estimated monthly increase of about $14 total. Even with these changes, Watsonville customers will still pay the lowest combined utility rates in our region.

Water
$3 to $4 per month
Sewer (Wastewater)
~$9 per month
Trash
$0.75 to $1.50 per month
How Your Bill Is Calculated
The City calculates rates to safely cover the actual
costs of providing your services. Here is how your
bill works:
• Water: Your water charge has two parts. The
first is a fixed monthly fee based on the size of
your water meter. The second part is based on
how much water you actually use. Residential
usage is split into three tiers. The more you use,
the higher the rate.
• Sewer (Wastewater): Residential customers
pay a flat, fixed monthly fee for sewer service.

Commercial and industrial customers pay a
fixed fee plus a charge based on how much
wastewater they produce and the strength of
that waste.
• Trash: Your solid waste rate is a flat monthly
fee based strictly on the size of the trash and
recycling bins you choose to use.

Transparent Process and Public Voice
Approving these proposed adjustments to rates is
the most responsible way to manage the City’s vital
infrastructure. You have a voice. The City is holding
a community webinar and sharing facts clearly so
you can ask questions and share your thoughts
before any decisions are made. We invite you to join
us to learn more:
• Community Webinar: Join us online for a
presentation and Q&A.

Wednesday, April 29th | 5:30 p.m.

Visit the City’s website to register.

Questions & Comments
If you have any questions regarding this notice,
please call (831) 768-3100 between 8 a.m. and
5 p.m., Monday through Friday, or visit the City’s
website at Watsonville.gov.

Utility customers may submit comments in writing
by email to [email protected] or by
regular mail to City Clerk, City of Watsonville, 275
Main Street, Suite 400, Watsonville, CA 95076.

Note: General comments and emails are not counted
as formal legal protests. See the legal notice below
for formal Proposition 218 protest instructions.

Attachment 1

DRAFT
Notice to Property Owners and Customers
This Notice is being furnished to you by the City of Watsonville (City) in accordance with Article XIII-D, Section 6 of the California Constitution (Proposition 218), which requires the City to notify customers and property owners of record of proposed water, wastewater (sewer), and solid waste rate adjustments. This notice is being provided to inform property owners and customers of the proposed changes and their right to submit a written protest or objection. This serves as notice that the Watsonville City Council will conduct a Public Hearing at 4:30 p.m., or as soon thereafter as the matter may be heard, Tuesday, May 26, 2026, at the City of Watsonville City Council Chambers located at 275 Main Street, Watsonville, CA 95076.

All those interested are invited to appear at the time and place of the Public Hearing on May 26, 2026, to give oral or written testimony or to submit written protests regarding the proposed rate adjustments. The City Council will hear and consider oral testimony and written materials submitted regarding proposed rate adjustments at the Public Hearing. The City Council has the authority to adjust the proposed rate changes in response to oral testimony and written materials submitted for consideration, provided any adjustments cannot increase rates beyond those proposed in this Notice. If adopted, proposed rate adjustments would become effective on July 1, 2026, with annual rate adjustments each July 1 thereafter through and including July 1, 2030.

The Utility Rate Study Reports are available at Watsonville.gov and on file at the City Clerk’s Office.

Attachment 1

DRAFT
The proposed rate adjustments are subject to a majority protest process under Proposition 218. Any record owner of a property that receives water, sewer (wastewater), or solid waste service from the City or tenant who is directly liable for payment of the City’s utility service charges (Customer of Record) may submit a written Protest against the proposed rate adjustments. Owners of multiple parcels may file one Protest for each parcel owned within the City’s service area. Only one written Protest against the proposed rate adjustments for the utility service charges per parcel will be counted in determining whether a majority protest exists.

Written Protest Procedures
A written Protest must be submitted to the City in paper form and include all of the following to be counted in
determining whether there is a majority protest (50% + 1):
• Clearly stated opposition to the proposed rate
adjustments for one or more of each service for: water, sewer, and/or solid waste service charges;
• Name of the record property owner or account holder
who is submitting the Protest;
• Identification by street address or assessor’s parcel number of the property for which the protest is made;
and
• Original signature and legibly printed name of the record property owner or customer who is submitting the
Protest.

How to Protest Proposed Rate Adjustments
An electronic (emailed or faxed) or spoken protest
CANNOT be counted.

Written Protests may be delivered to the City at the
City Council Chambers during the Public Hearing (prior
to the close of the hearing). In advance of the Public
Hearing, written Protests may be mailed or personally
delivered to the City at the submittal location shown
below, provided they must be received by City staff
by the end of the public hearing on Tuesday, May 26,
2026. No e-mailed or faxed Protests will be accepted.

Additionally, no late protests will be accepted after the close of the public hearing.

At the Public Hearing, the City Council will accept and consider all written Protests and hear all oral comments on the proposed rate adjustments. However, oral or
emailed comments will not be counted in determining
the existence of a majority protest.

What is a Majority Protest?
A majority protest against any of the three proposed rate adjustments (water, sewer, or solid waste) will exist if at the end of the Public Hearing there are written protests submitted and not withdrawn that represent a majority
of the parcels (50% + 1) that receive the applicable
services (water, sewer, and solid waste). The City cannot adopt a proposed rate adjustment if a majority protest
exists for that service (water, sewer, or solid waste).

Any property owner or tenant who wishes to file a timely written objection to satisfy the requirement to exhaust administrative remedies under AB 2257 (Government Code
Sections 53759.1 and 53759.2) must meet the following
procedural and substantive requirements:
• Be in writing with the printed name and an original
signature from the property owner of record or tenant
directly liable for the payment of the fee/account holder (Customer of Record). Emails must include adequate
proof of authenticity, such as a digital signature.
• Identify the parcel for which the written objection is filed, by street address or assessor’s parcel number.
• Written objections must include the following
information:
• A statement that your communication constitutes a
written objection.
• A description of the nature of the written objection, with sufficient specificity to allow the City to respond in writing. The objection must state the specific facts and grounds for concerns with the proposed water or
sewer rates and why the rates do not comply with
the law, and more specifically, Proposition 218. The
objection should include the desired resolution or
outcome.
• A statement that the proposed water rates violate
Proposition 218 without an explanation as to the
basis of your claim is not sufficient to constitute a
Written Objection Procedures for Water and Sewer (Wastewater) Rates | Exhaustion of Administrative Remedies valid written objection. (See Utility Rate Setting
Procedures, Section 3(c), at Watsonville.gov.
• Be received by the City Clerk by no later than
______p.m., ___NO EARLIER THAN 45 DAYS
AFTER NOTICE IS MAILED____, 2026 at the
SUBMITTAL LOCATION: City Clerk, City of
Watsonville, 275 Main Street, Suite 400, Watsonville,
CA 95076.

Limitations for Legal Challenges to
Water or Sewer Rates
You are hereby notified that, in order to file a judicial action or legal proceeding to challenge the proposed
water or sewer rates described in this Notice, you must file a timely written objection, and you must commence
the action or proceeding within 120 days of the City’s
approval of the rates.

Failure to submit a timely written legal objection bars any right to challenge the proposed water or sewer
rates through a judicial action or legal proceeding.
(Government Code Section 53759.1(b).)
There is a 120-day statute of limitations for judicially challenging the water or sewer rates set forth in this
Notice that runs from the date of the City action to
approve the rates, and any legal action is limited to the issues raised in a timely legal objection. (Government
Code Section 53759.)
Attachment 1

DRAFT
Notificación de audiencia pública y cambios
propuestas en las tarifas de servicios públicos
La ciudad de Watsonville propone actualizaciones
a sus tarifas de servicios públicos de agua,
alcantarillado (aguas residuales) y residuos sólidos
(basura y reciclaje). La ciudad revisó las tarifas
por última vez en 2021. Desde entonces, el costo
de proporcionar servicios seguros y confiables ha
aumentado. La ciudad también enfrenta nuevas
normas estatales de salud y medio ambiente que
incrementan los costos de cumplimiento.

Para ayudar a pagar estas actualizaciones vitales,
el Concejo Municipal de Watsonville llevara a
cabo una audiencia pública en la Sala del Concejo
Municipal el 26 de mayo del 2026 a partir de
las 5:30 p. m. o tan pronto como sea posible
después de esa fecha, para considerar los cambios
propuestas en las tarifas. La audiencia se llevará a
cabo de acuerdo con las normas de la Proposición
218 (Constitución de California. Artículo XIII
D, Sección 6) y se invita al público a presentar
comentarios verbales o escritos, mientras que los
clientes que sean propietarios o inquilinos también
tendrán la oportunidad de presentar una protesta u
objeción por escrito, tal como se describe en esta
Notificación. Esta Notificación resume el motivo y
las cantidades de las actualizaciones propuestas,
así como la base para calcular las cantidades
actualizadas. Hay información adicional sobre las
actualizaciones de tarifas propuestas disponible en:

Watsonville.gov.

Si se adoptan las nuevas tarifas, están entrarán en
vigor el 1 de julio de 2026, con ajustes anuales cada
1 de julio hasta 2030. Esta notificación identifica
cada año fiscal en el que la Ciudad recibirá ingresos
por tarifas. Por lo tanto, las tarifas vigentes a partir del 1 de julio del 2026 corresponden al año fiscal
“Propuesto 2027”, y la última actualización, vigente
a partir del 1 de julio del 2030, corresponde al año
fiscal “Propuesto 2031”.

Notificación de audiencia pública para
considerar actualizaciones en las tarifas de
servicios públicos de agua. alcantarillado
(aguas residuales ) y residuos sólidos (basura y
reciclaje)
26 Salón del Concejo Municipal de Watsonville
275 Main Street, Suite 400
Watsonville, CA 95076
Martes. 26 de mayo del 2026
4:30 p. m.

Por qué son necesarias las actualizaciones de
tarifas
Los precios del combustible, la mano de obra y los materiales han subido considerablemente. Al mismo tiempo, gran parte de nuestra planta de aguas residuales está desgastada. Esta fue construida en 1961 y está llegando al final de su vida útil.

Debemos reemplazar las instalaciones principales ahora para evitar derrames, multas ambientales y riesgos para la salud pública.
¿Qué sucederá si no actualizamos las tarifas?
La ciudad no puede operar legalmente los servicios públicos con pérdidas. Si no se aprueban estos ajustes de tarifas, la ciudad enfrentará graves consecuencias:
• Aumento de los costos de emergencia: Si no se reemplaza ahora la planta de tratamiento de aguas residuales, la ciudad se verá obligada a pagar un alto costo por reparaciones de emergencia cuando el equipo y maquinaria no funcionen.
• Riesgos para la salud pública y el medio ambiente: Nos enfrentaremos a un mayor riesgo de derrames de alcantaril- lado en los cursos de agua locales y a posibles multas por no cumplir con los estrictos estándares estatales de calidad del agua.
• Agotamiento de fondos: Sin estos ajustes, los fondos de los servicios públicos no tendrán suficiente dinero para cubrir las operaciones diarias básicas, ni los nuevos mandatos estatales sobre agua potable limpia y reciclaje de residuos orgánicos.

Valor del sistema, seguridad y medio ambiente
Cuando abra la llave del agua, le baja a el agua del inodoro o saca el bote de la basura, los equipos locales de Watsonville se aseguran de que todo funcione a la perfección las 24 horas del día. Esto es lo que se necesita para prestarle servicio:
• Agua: Mantenemos 178 millas de tuberías, 6 tanques de agua y 12 pozos para suministrar agua limpia a 15,000 conexiones.

Estamos planificando las mejoras necesarias para tratar el agua potable contra el cromo-6 y mantener su agua segura. • Alcantarillado (también conocido como aguas residuales):

Tratamos 5.5 millones de galones de aguas residuales todos los días a través de 170 millas de tuberías y más de 20 estaciones de bombeo. El tratamiento adecuado de esta agua protege el Santuario Marino Nacional de la Bahía de Monterey. También tratamos las aguas residuales de los distritos vecinos, quienes pagan su parte correspondiente de los costos.
• Basura (residuos sólidos): Nuestros 52 empleados de residuos sólidos hacen mucho más que recoger basura. Administran el centro de entrega en la calle Harvest Drive y barren más de 10,000 millas de calles de la ciudad cada año. También estamos mejorando la forma en que recolectamos la basura y reciclamos para cumplir con las nuevas leyes estatales sobre residuos orgánicos (SB 1383) y proteger nuestro medio ambiente local.

Watsonville.gov
(831) 768-3100
Attachment 1

DRAFT
Costo del servicio
Fondos empresariales
Por ley, la ciudad solo puede cobrar lo que realmente
cuesta prestar el servicio. No hay ganancias. Estos son los “fondos empresariales”. Esto significa que las tarifas solo cubren el costo real de prestar el servicio sin utilizar dinero de los impuestos. Los fondos de servicios públicos no pueden utilizarse legalmente para pagar otros servi- cios de la ciudad como parques, policía o bomberos.

Financiación estratégica
Para proteger a los clientes de aumentos repentinos de
precios. la ciudad no financiará estas mejoras masivas
enteramente con el dinero de los clientes actuales. En
su lugar, la ciudad utilizará préstamos (incluyendo un
préstamo estatal de $37 millones a bajo interés) para
distribuir el costo a lo largo del tiempo. Esto significa que los futuros residentes que se beneficien de estas mejoras de 50 años ayudarán a pagarlas.

Impactos típicos en las facturas - 2026
El próximo año fiscal. una vivienda unifamiliar típica experimentará un aumento mensual estimado de unos $14 en total. Incluso con estos cambios. los clientes de Watsonville seguirán pagando las tarifas combinadas de servicios públicos más bajas de nuestra región.

Agua
de $3 a $4 al mes
Alcantarillado (aguas residuales)
~ $9 al mes
Basura
de $0.75 a $1.50 al mes
Cómo se calcula su factura
La ciudad calcula las tarifas para cubrir de manera segura los costos reales de la prestación de sus servicios. Así es como funciona su factura:
• Agua: Su cargo por agua tiene dos partes. La primera
es una tarifa mensual fija basada en el tamaño de
su medidor de agua. La segunda parte se basa en
la cantidad de agua que realmente consume. El
consumo residencial se divide en tres niveles. Cuanto
más consuma, mayor será la tarifa.
• Alcantarillado (aguas residuales): Los clientes
residenciales pagan una tarifa mensual fija por el
servicio de alcantarillado. Los clientes comerciales e
industriales pagan una tarifa fija más un cargo basado
en la cantidad de aguas residuales que producen y la
concentración de esos residuos.
• Basura: Su tarifa de residuos sólidos es una cuota
mensual fija basada estrictamente en el tamaño del
bote de basura y reciclaje que elija utilizar.

Proceso transparente y opinión pública
Aprobar estos ajustes propuestos a las tarifas es la forma más responsable de gestionar la infraestructura vital de la Ciudad. Tienes voz. La Ciudad está realizando un seminario web comunitario y compartiendo los hechos de manera
clara para que puedas hacer preguntas y expresar tus
opiniones antes de que se tomen decisiones. Te invitamos a unirte a nosotros para obtener más información:
• Seminario Web Comunitario: Únete en línea
para una presentación y sesión de preguntas y
respuestas.

Miércoles, 29 de abril | 5:30 p.m.

Visita el sitio web de la Ciudad para registrarte.

Preguntas y comentarios
Si tiene alguna pregunta sobre esta notificación,
llame al (831) 768-3100 entre las 8 a.m. y las 5 p.m.
de lunes a viernes, o visite el sitio web de la ciudad en Watsonville.gov.

Los clientes de los servicios públicos pueden enviar
sus comentarios por escrito por correo electrónico a
[email protected] o por correo postal a City
Clerk, City of Watsonville, 275 Main Street, Suite 400, Watsonville, CA 95076.

Nota: Los comentarios generales y los correos
electrónicos no se consideran protestas legales formales, Consulte el aviso legal a continuación para obtener
instrucciones sobre cómo presentar una protesta formal
contra la Proposición 218.

Attachment 1

DRAFT
Notificación a los propietarios y clientes
La ciudad de Watsonville (la “Ciudad”) le envía esta notificación de acuerdo con el artículo XIII-D, sección 6, de la Constitución de California (Proposición 218), que exige a la Ciudad notificar a los clientes y a los propietarios registrados sobre los ajustes propuestas en las tarifas de agua, aguas residuales (alcantarillado) y residuos sólidos, La presente notificación tiene por objeto informar a los propietarios y a los clientes sobre los cambios propuestas y sobre su derecho a presentar una protesta u objeción por escrito. Por la presente se notifica que el Concejo Municipal de Watsonville llevará a cabo una audiencia pública a las 4:30 p.m., o tan pronto como sea posible después de esa hora cuando se pueda examinar el asunto, el martes 26 de mayo del 2026, en la Sala del Concejo Municipal de la Ciudad de Watsonville, ubicada en 275 Main Street, Watsonville, CA 95076.

Se invita a todas las personas interesadas a comparecer en la fecha y el lugar de la audiencia pública del 26 de mayo del 2026 para presentar testimonios orales o escritos, o para presentar protestas por escrito con respecto a los ajustes de tarifas propuestas. El Concejo Municipal escuchará y considerará los testimonios orales y los materiales escritos presentados con respecto a los ajustes de tarifas propuestas en la audiencia pública. El Concejo Municipal tiene la autoridad de ajustar los cambios de tarifas propuestas en respuesta a los testimonios orales y los materiales escritos presentados para su consideración, siempre que dichos ajustes no aumenten las tarifas más allá de lo propuesto en esta Notificación. Si se adoptan, los ajustes de tarifas propuestas entrarían en vigor el 1 de julio del 2026, con ajustes anuales de tarifas cada 1 de julio a partir de entonces e incluyendo hasta el 1 de julio del 2030.

Los informes del estudio de tarifas de servicios públicos están disponibles en Watsonville.gov y archivados en la Oficina del Secretario Municipal.

Los ajustes de tarifas propuestas están sujetos a un proceso de protesta por mayoría en virtud de la Proposición 218.

Cualquier propietario registrado de una propiedad que
reciba servicios de agua, alcantarillado (aguas residuales) o residuos sólidos de la ciudad, o cualquier inquilino de que sea directamente responsable del pago de los cargos por servicios públicos de la ciudad (cliente registrado), puede presentar una protesta por escrito contra los ajustes de tarifas propuestas. Los propietarios de varias parcelas pueden presentar una protesta por cada parcela de su propiedad dentro del área de servicio de la ciudad. Solo se contará una protesta por escrito contra los ajustes de tarifas propuestas para los cargos por servicios públicos por parcela a la hora de determinar si existe una protesta mayoritaria.

Procedimientos de protesta por escrito
La protesta por escrito debe presentarse a la ciudad en formato escrito e incluir todo lo siguiente para que se tenga en cuenta a la hora de determinar si existe una protesta mayoritaria (50 % + 1):
• Oposición claramente expresada a los ajustes de tarifas propuestas para uno o más de cada servicio de: agua,
alcantarillado, y/o cargos por servicios de residuos
sólidos;
• El nombre del propietario registrado o del inquilino
encargado de la cuenta que presenta la protesta;
• Identificación mediante la dirección o el número de
parcela del asesor de la propiedad para la que se presenta la protesta; y
• La firma original y el nombre escrito de forma legible del propietario registrado o del cliente que presenta la protesta.

Cómo protestar contra los ajustes de tarifas propuestas NO se tendrán en cuenta las protestas verbales y
electrónicas (enviadas por correo electrónico o fax).

Las protestas por escrito pueden entregarse a la ciudad en la Sala del Concejo Municipal durante la audiencia
pública (antes de que finalice la audiencia). Por la
presente se notifica que antes de la audiencia pública, las protestas por escrito pueden enviarse por correo
o entregarse personalmente a la ciudad en el lugar de
presentación que se indica a continuación, siempre
que el personal de la ciudad las reciba hasta el término de la audiencia pública el martes 26 de mayo de
2026. No se aceptarán protestas enviadas por correo
electrónico o fax. Además, no se aceptarán protestas
tardías después de la clausura de la audiencia pública.

En la audiencia pública, el Concejo Municipal aceptará
y considerará todas las protestas escritas y escuchará
todos los comentarios orales sobre los ajustes de
tarifas propuestas. Sin embargo, los comentarios orales o enviados por correo electrónico no se tendrán en
cuenta para determinar la existencia de una protesta
mayoritaria.
¿Qué es una protesta mayoritaria?
Existirá una protesta mayoritaria contra cualquiera de los tres ajustes de tarifas propuestas (agua, alcantarillado o residuos sólidos) si, al final de la audiencia pública, hay protestas escritas presentadas y no retiradas que
representen una mayoría de las parcelas (50 % + 1) que
reciben los servicios pertinentes (agua, alcantarillado y residuos sólidos). La ciudad no puede adoptar un ajuste de tarifas propuesto si existe una protesta mayoritaria para ese servicio (agua, alcantarillado o residuos sólidos).

Attachment 1

DRAFT
Cualquier propietario o inquilino que desee presentar una objeción por escrito dentro del plazo establecido para cumplir con el requisito de agotar los recursos administrativos en virtud de la Ley AB 2257 (Secciones 53759,1 y 53759,2 del Código de Gobierno) debe cumplir con los siguientes requisitos de procedimiento y fundamentales:
• Debe presentarse por escrito con el nombre impreso y
la firma original del propietario registrado o del inquilino directamente responsable del pago de la tarifa/titular de la cuenta (Cliente Registrado). Los correos electrónicos deben incluir una prueba adecuada de autenticidad, tal
como una firma digital,
• Identificar la parcela para la que se presenta la objeción por escrito, mediante la dirección postal o el número de parcela del asesor.
• Las objeciones por escrito deben incluir la siguiente información:
• Una declaración de que su comunicación constituye
una objeción por escrito,
• Una descripción de la naturaleza de la objeción por
escrito, con suficiente especificidad para permitir
que la Ciudad responda por escrito. La objeción
debe indicar los hechos y motivos específicos de las
inquietudes con respecto a las propuestas de agua y
aguas residuales y por qué las tarifas no cumplen con
la ley y, más específicamente con la Proposición 218.

La objeción debe incluir la resolución o el resultado
deseado.
• Una declaración de que las tarifas de agua propuestas infringen la Proposición 218 sin una explicación
sobre el fundamento de su reclamo no es suficiente
Procedimientos de objeción por escrito para las tarifas de agua y alcantarillado (aguas residuales) | Agotamiento de los recursos administrativos para constituir una objeción por escrito válida,
(Revise Procedimientos para la fijación de
tarifas de servicios públicos, Sección 3(c), en
Watsonville.gov.
• Debe ser recibida por el secretario municipal a
más tardar a las ______ p. m. ___NO ANTES
DE 45 DÍAS DESPUÉS DE QUE SE ENVÍE LA
NOTIFICACIÓN POR CORREO____, 2026 en
el LUGAR DE ENTREGA: Secretario Municipal,
Ciudad de Watsonville, 275 Main Street, Suite 400,
Watsonville, CA 95076.

Limitaciones para desafíos legales para
las tarifas de agua o alcantarillado
Por la presente se le notifica que, para presentar una
acción judicial o un procedimiento legal para desafiar las propuestas tarifas de agua y alcantarillado descritas en esta notificación, debe presentar una objeción por escrito a tiempo, y debe iniciar la acción o el procedimiento
dentro de los 120 días siguientes a la aprobación de las tarifas por parte de la Ciudad.

Si no presenta una objeción legal por escrito a tiempo, se perderá cualquier derecho a desafiar las propuestas
tarifas mediante una acción judicial o un procedimiento legal, (Código de Gobierno, Sección 53759.1(b).)
Existe un estatuto de limitación de 120 días para
desafiar judicialmente las tarifas de agua y alcantarillado establecidas en esta notificación, que comienza a
contar a partir de la fecha de la decisión de la Ciudad de aprobar las tarifas, y cualquier acción legal se limita a las cuestiones planteadas en una objeción legal presentada
a tiempo, (Código de Gobierno, Sección 53759.)
Sewer (Wastewater) Rate Tables (Current 2026 and Proposed 2027 to 2031) Tablas de tarifas de alcantarillado (aguas residuales) (actuales para 2026 y propuestas para 2027 a 2031) Wastewater Service Rates /
Tarifas del servicio de aguas
residuales
Current
/ Actual
2026
Proposed /
Propuesta
2027
Proposed /
Propuesta
2028
Proposed /
Propuesta
para 2029
Proposed /
Propuesta
para 2030
Proposed /
Propuesta
para 2031
Residential Monthly Fixed Charge / Cargo fijo mensual residencial Residential (SFR & MFR) /
Residencial (SFR & MFR $61.51 $70.42 $78.87 $83.60 $88.62 $93.94 Commercial Minimum Monthly Fee / Cuota mínima mensual comercial All Commercial Accounts /
Todas las cuentas comerciales $33.93 $35.04 $39.24 $41.60 $44.10 $46.74 Commercial Charges per CCF of Water / Tarifas comerciales por CCF de agua High Strength / Alta potencia
($/CCF) $7.90 $8.50 $9.52 $10.09 $10.70 $11.34
Low Strength / Baja potencia
($/CCF) $4.56 $5.31 $5.95 $6.30 $6.68 $7.08
Industrial Charges / Cargos industriales
Flow / Caudal ($/MG) $3,194.97 $4,359.89 $4,883.08 $5,176.06 $5,486.63 $5,815.82 BOD ($/1,000 lb) $318.28 $528.20 $591.58 $627.08 $664.70 $704.59 TSS ($/1,000 lb) $765.91 $592.23 $663.30 $703.10 $745.28 $790.00 Attachment 1

DRAFT
Water Rate Tables (Current 2026 and Proposed 2027 to 2031) Tablas de tarifas de agua (actual 2026 y propuesta 2027 a 2031) Meter Size Availability Fee ($/
Month) /
Tamaño del medidor Cuota de
disponibilidad ($/mes)
Current
/ Actual
2026
Proposed /
Propuesta
para 2027
Proposed /
Propuesta
para 2028
Proposed /
Propuesta
para 2029
Proposed /
Propuesta
para 2030
Proposed /
Propuesta
para 2031
Inside City / Dentro de la ciudad
5/8” & 3/4” $29.93 $32.16 $33.77 $35.46 $37.23 $39.09
1" $59.43 $65.01 $68.26 $71.67 $75.26 $79.02
1-1/2" $108.61 $119.75 $125.74 $132.02 $138.63 $145.56
2" $167.61 $185.45 $194.72 $204.46 $214.68 $225.42
3" $324.96 $360.64 $378.67 $397.61 $417.49 $438.36
4" $501.98 $557.73 $585.62 $614.90 $645.64 $677.92
6" $993.70 $1,105.20 $1,160.46 $1,218.48 $1,279.41 $1,343.38 8" $1,583.78 $1,762.16 $1,850.27 $1,942.78 $2,039.92 $2,141.92 Outside City / Fuera de la ciudad
5/8" & 3/4” $35.15 $38.92 $40.87 $42.91 $45.05 $47.31
1" $72.48 $81.92 $86.02 $90.32 $94.83 $99.57
1-1/2" $134.71 $153.58 $161.26 $169.32 $177.79 $186.68
2" $209.39 $239.57 $251.55 $264.13 $277.33 $291.20
3" $408.51 $468.88 $492.32 $516.94 $542.79 $569.93
4" $632.52 $726.86 $763.20 $801.36 $841.43 $883.50
6" $1,254.80 $1,443.46 $1,515.63 $1,591.41 $1,670.99 $1,754.53 8" $2,001.52 $2,303.37 $2,418.54 $2,539.47 $2,666.44 $2,799.76 Consumption Charge / Cargo
por consumo ($/CCF)
Current
/ Actual
2026
Proposed /
Propuesta
para 2027
Proposed /
Propuesta
para 2028
Proposed /
Propuesta
para 2029
Proposed /
Propuesta
para 2030
Proposed /
Propuesta
para 2031
Residential and Multi-Residential / Residencial y multi-residencial Tier 1 (0–6 CCF/Month) /
Nivel 1 (0–6 CCF/mes) $4.11 $4.32 $4.54 $4.76 $5.00 $5.25 Tier 2 (7–12 CCF/Month) /
Nivel 2 (7–12 CCF/mes) $5.38 $5.50 $5.78 $6.06 $6.37 $6.69 Tier 3 (over 12 CCF/Month) /
Nivel 3 (más de 12 CCF/mes) $8.33 $7.58 $7.96 $8.36 $8.77 $9.21 Non-Residential / No residencial
Uniform / Uniforme $4.91 $5.08 $5.33 $5.60 $5.88 $6.17
Industrial / Industrial
Uniform / Uniforme $3.91 $4.20 $4.41 $4.63 $4.86 $5.11
Irrigation / Riego
Uniform / Uniforme $7.02 $6.89 $7.23 $7.60 $7.98 $8.37
Fire Service Availability
Charge ($/Month) / Cargo por disponibilidad del servicio de bomberos ($/mes)
Current
/ Actual
2026
Proposed /
Propuesta
para 2027
Proposed /
Propuesta
para 2028
Proposed /
Propuesta
para 2029
Proposed /
Propuesta
para 2030
Proposed /
Propuesta
para 2031
Inside City / Dentro de la ciudad
2" and smaller / 2” y menos $18.23 $18.42 $19.34 $20.31 $21.32 $22.39 4" $39.06 $40.31 $42.33 $44.44 $46.66 $49.00
6" $86.38 $90.04 $94.54 $99.27 $104.23 $109.44
8" $168.00 $175.82 $184.61 $193.84 $203.53 $213.71
10" $290.77 $304.84 $320.08 $336.09 $352.89 $370.53
Outside City / Fuera de la ciudad
2" and smaller / 2” y menos $18.23 $18.42 $19.34 $20.31 $21.32 $22.39 4" $39.06 $40.31 $42.33 $44.44 $46.66 $49.00
6" $86.38 $90.04 $94.54 $99.27 $104.23 $109.44
8" $168.00 $175.82 $184.61 $193.84 $203.53 $213.71
10" $290.77 $304.84 $320.08 $336.09 $352.89 $370.53
Attachment 1

DRAFT
Solid Waste (Organics) Collections / Recolección de residuos sólidos (orgánicos) 68 gal $76.21 $77.63 $79.18 $80.77 $82.38 $84.03
1 cu yd / yarda cúbica $190.84 $194.77 $198.67 $202.64 $206.69 $210.83 2 cu yd / yarda cúbica $363.64 $371.35 $378.78 $386.35 $394.08 $401.96 3 cu yd / yarda cúbica $536.45 $547.94 $558.90 $570.08 $581.48 $593.11 Solid Waste Rate Tables (Current 2026 and Proposed 2027 to 2031) Tablas de tarifas de residuos sólidos (actual 2026 y propuesta 2027 a 2031) Weekly Pickup Service
($/Month) / Servicio de
recolección semanal ($/mes)
Current
/ Actual
2026
Proposed /
Propuesta
para 2027
Proposed /
Propuesta
para 2028
Proposed /
Propuesta
para 2029
Proposed /
Propuesta
para 2030
Proposed /
Propuesta
para 2031
Cart Service / Servicio de bote de basura
32 gal $45.41 $46.16 $47.08 $48.02 $48.99 $49.97
68 gal $76.21 $77.63 $79.18 $80.77 $82.38 $84.03
95 gal $99.32 $101.24 $103.26 $105.33 $107.44 $109.59
Container Service / Servicio de contenedores
1 cu yd / yarda cúbica $190.84 $194.77 $198.67 $202.64 $206.69 $210.83

1.5 cu yd / yarda cúbica $277.23 $283.06 $288.72 $294.50 $300.39 $306.39 2 cu yd / yarda cúbica $363.64 $371.35 $378.78 $386.35 $394.08 $401.96 3 cu yd / yarda cúbica $536.45 $547.94 $558.90 $570.08 $581.48 $593.11 4 cu yd / yarda cúbica $709.24 $724.53 $739.02 $753.80 $768.88 $784.25 6 cu yd / yarda cúbica $1,054.85 $1,077.71 $1,099.26 $1,121.25 $1,143.67 $1,166.55 8 cu yd / yarda cúbica $1,400.47 $1,430.88 $1,459.50 $1,488.69 $1,518.46 $1,548.83 Drop Box Service / Servicio de contenedores
20 cu yd / yarda cúbica $3,474.10 $3,549.94 $3,620.94 $3,693.36 $3,767.22 $3,842.57 25 cu yd / yarda cúbica $4,338.12 $4,432.88 $4,521.54 $4,611.97 $4,704.21 $4,798.29 30 cu yd / yarda cúbica $5,202.14 $5,315.82 $5,422.14 $5,530.58 $5,641.19 $5,754.01 35 cu yd / yarda cúbica $6,066.16 $6,198.76 $6,322.74 $6,449.19 $6,578.17 $6,709.74 40 cu yd / yarda cúbica $6,930.18 $7,081.70 $7,223.33 $7,367.80 $7,515.16 $7,665.46 Compactor Drop Box Service / Servicio de contenedores compactadores 3 cu yd / yarda cúbica $1,573.26 $1,607.47 $1,639.62 $1,672.41 $1,705.86 $1,739.98 4 cu yd / yarda cúbica $2,091.68 $2,137.23 $2,179.97 $2,223.57 $2,268.05 $2,313.41 10 cu yd / yarda cúbica $5,202.14 $5,315.82 $5,422.14 $5,530.58 $5,641.19 $5,754.01 15 cu yd / yarda cúbica $7,794.20 $7,964.64 $8,123.93 $8,286.41 $8,452.14 $8,621.18 20 cu yd / yarda cúbica $10,386.24 $10,613.45 $10,825.72 $11,042.23 $11,263.08 $11,488.34 22 cu yd / yarda cúbica $11,423.07 $11,672.98 $11,906.44 $12,144.57 $12,387.46 $12,635.21 25 cu yd / yarda cúbica $12,978.30 $13,262.27 $13,527.52 $13,798.07 $14,074.03 $14,355.51 30 cu yd / yarda cúbica $15,570.35 $15,911.09 $16,229.31 $16,553.90 $16,884.98 $17,222.68 35 cu yd / yarda cúbica $18,162.41 $18,559.91 $18,931.11 $19,309.73 $19,695.92 $20,089.84 40 cu yd / yarda cúbica $20,754.45 $21,208.73 $21,632.90 $22,065.56 $22,506.87 $22,957.01 Attachment 1

DRAFT
Solid Waste Rate Tables (Current 2026 and Proposed 2027 to 2031) Tablas de tarifas de residuos sólidos (actual 2026 y propuesta 2027 a 2031) Temporary/On-call Services
($/Pickup) / Servicios
temporales/de llamada ($/
recogida)
Current
/ Actual
2026
Proposed /
Propuesta
para 2027
Proposed /
Propuesta
para 2028
Proposed /
Propuesta
para 2029
Proposed /
Propuesta
para 2030
Proposed /
Propuesta
para 2031
Temporary Use Containers / Contenedores de uso temporal 1 cu yd / yarda cúbica $47.72 $48.70 $49.67 $50.67 $51.68 $52.71

1.5 cu yd / yarda cúbica $69.32 $70.77 $72.19 $73.63 $75.10 $76.60 2 cu yd / yarda cúbica $90.92 $92.84 $94.70 $96.59 $98.52 $100.49 3 cu yd / yarda cúbica $134.12 $136.99 $139.73 $142.52 $145.37 $148.28 4 cu yd / yarda cúbica $177.32 $181.14 $184.76 $188.46 $192.23 $196.07 6 cu yd / yarda cúbica $263.73 $269.43 $274.82 $280.31 $285.92 $291.64 8 cu yd / yarda cúbica $350.12 $357.72 $364.87 $372.17 $379.62 $387.21 On-call Drop Box Service ($/Pickup) / Servicio de contenedor de recojer a demanda 20 cu yd (<1/2 full) / 20 yardas
cúbicas (<1/2 lleno) $436.52 $446.02 $454.94 $464.04 $473.32 $482.79 20 cu yd / yarda cúbica $868.53 $887.49 $905.24 $923.34 $941.81 $960.65 25 cu yd / yarda cúbica $1,084.53 $1,108.22 $1,130.38 $1,152.99 $1,176.05 $1,199.57 30 cu yd / yarda cúbica $1,300.54 $1,328.96 $1,355.54 $1,382.65 $1,410.30 $1,438.51 35 cu yd / yarda cúbica $1,516.54 $1,549.69 $1,580.68 $1,612.30 $1,644.54 $1,677.43 40 cu yd / yarda cúbica $1,732.55 $1,770.43 $1,805.84 $1,841.96 $1,878.79 $1,916.37 50 cu yd / yarda cúbica $2,164.56 $2,211.90 $2,256.14 $2,301.26 $2,347.29 $2,394.23 On-call Compactor Drop Box Service ($/Pickup) / Servicio de compactadores a demanda 3 yd Compactor $393.32 $401.87 $409.91 $418.11 $426.47 $435.00 4 yd Compactor $522.93 $534.31 $545.00 $555.90 $567.01 $578.35 10 yd Compactor $1,300.54 $1,328.96 $1,355.54 $1,382.65 $1,410.30 $1,438.51 12 yd Compactor $1,559.74 $1,593.84 $1,625.72 $1,658.23 $1,691.40 $1,725.22 15 yd Compactor $1,948.55 $1,991.16 $2,030.98 $2,071.60 $2,113.03 $2,155.30 20 yd Compactor $2,596.57 $2,653.37 $2,706.44 $2,760.57 $2,815.78 $2,872.09 22 yd Compactor $2,855.77 $2,918.25 $2,976.62 $3,036.15 $3,096.87 $3,158.81 25 yd Compactor $3,244.58 $3,315.57 $3,381.88 $3,449.52 $3,518.51 $3,588.88 30 yd Compactor $3,892.60 $3,977.78 $4,057.34 $4,138.48 $4,221.25 $4,305.68 40 yd Compactor $5,188.62 $5,302.19 $5,408.23 $5,516.40 $5,626.73 $5,739.26 Temporary Special Use Containers(Wood Waste, Yard Trimmings, & Scrap Metal) ($/Pickup) / Contenedores temporales para uso especial* (residuos de madera, recortes de jardin y chatarra) ($/Recogida) 4 cu yd / yarda cúbica $177.32 $181.14 $184.76 $188.46 $192.23 $196.07 6 cu yd / yarda cúbica $263.73 $269.43 $274.82 $280.31 $285.92 $291.64 20 cu yd / yarda cúbica $868.53 $887.49 $905.24 $923.34 $941.81 $960.65 25 cu yd / yarda cúbica $1,084.53 $1,108.22 $1,130.38 $1,152.99 $1,176.05 $1,199.57 30 cu yd / yarda cúbica $1,300.54 $1,328.96 $1,355.54 $1,382.65 $1,410.30 $1,438.51 35 cu yd / yarda cúbica $1,516.54 $1,549.69 $1,580.68 $1,612.30 $1,644.54 $1,677.43 40 cu yd / yarda cúbica $1,732.55 $1,770.43 $1,805.84 $1,841.96 $1,878.79 $1,916.37 Temporary Recycling ($/Pickup) / Reciclaje temporal
3 cu yd / yarda cúbica $134.12 $136.99 $139.73 $142.52 $145.37 $148.28 6 cu yd / yarda cúbica $263.73 $269.43 $274.82 $280.31 $285.92 $291.64 15 cu yd / yarda cúbica $652.53 $666.75 $680.09 $693.69 $707.56 $721.71 30 cu yd / yarda cúbica $1,300.54 $1,328.96 $1,355.54 $1,382.65 $1,410.30 $1,438.51 Attachment 1

DRAFT
275 Main Street, Suite 400
Watsonville, CA 95076
Notice of Public Hearing to
Consider Updates to Utility
Rates for Water, Sewer
(Wastewater), and Solid
Waste (Trash and Recycling)
Tuesday, May 26, 2026, 4:30 p.m. | Martes. 26 de mayo del 2026. 4:30 p. m.

Watsonville City Council Chambers | Salón del Concejo Municipal de Watsonville 275 Main Street, Suite 400, Watsonville, CA 95076
Notificación de audiencia pública
para considerar actualizaciones
en las tarifas de servicios
públicos de agua. alcantarillado
(aguas residuales ) y residuos
sólidos (basura y reciclaje)
Attachment 1

1 Reso No. ______ (CM)
Meeting Date: 032426 SWZ ______ TV ______ PWU ______
RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE ACCEPTING THE RESULTS OF THE FINANCIAL

ANALYSIS AND UTILITY RATE RECOMMENDATIONS, DIRECTING

STAFF TO PROVIDE PUBLIC NOTIFICATION OF THE PROPOSED

UTILITY RATES, AND DIRECTING THE CITY CLERK TO GIVE NOTICE

THEREOF AND FIXING THE TIME FOR PUBLIC HEARING FOR MAY
26, 2026, PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 54354.5 CALIFORNIA CONSTITUTION ARTICLE 13D SECTION 6, AND

THE UTILITY RATE SETTING PROCEDURES RESOLUTION
WHEREAS, the Council adopts utility rates to pay the cost of operating and maintaining the City’s water, wastewater, and solid waste enterprise funds. These funds also pay for capital projects to replace and modernize the City’s infrastructure, including projects such as new water and sewer lines, as well as many types of equipment, such as garbage collection vehicles, water meters, and well pumps. Utility rates have not been considered since 2021; and
WHEREAS, on July 8, 2025, the Council adopted Resolution No. 184-25 (CM), awarding a contract to Raftelis Financial Consultants, Inc., a corporation, to prepare a cost of service analysis and rate study for each of these utilities for the next five fiscal years in order to adequately fund the financial needs of the utility funds; and WHEREAS, the report recommends the City revise and adopt new rates and charges for water, sewer, and solid waste services necessary to meet debt service obligations, increased operational costs, and significant capital costs needed to maintain the current level of service; and
WHEREAS, California Government Code Section 54354.5 and California Constitution Article XIII D, Section 6 (added by Proposition 218), contains certain noticing requirements relating to the adoption and increase of property-related fees and charges; and

2 Reso No. ______ (CM)
Meeting Date: 032426
WHEREAS, any property owner or customer of record who is a customer of the City’s Public Works and Utilities Department may protest the proposed water rates. Only one written protest per parcel, filed by an owner or customer of record will be counted.

Only written and signed protest that include the writer’s address and/or assessor parcel number will be counted to determine whether a majority protest to the proposed water rate increase exists. Written protest may be mailed, or hand delivered to the City Clerk’s Office at 275 Main Street, Fourth Floor, Watsonville, California, CA 95076; and WHEREAS, if a property owner or customer of record opposes the proposed rate increases, Proposition 218 requires that their protest must be submitted in writing to be counted, even if they plan to attend the Public Hearing. To be counted, the protest must:
1) be in writing 2) state opposition to the proposed rate increase; 3) identify the parcel by assessor’s parcel number or street address; 4) include the original signature of the owner of record or a tenant who is a customer of the City’s Public Works and Utilities Department; 5) be received before the conclusion of the Public Hearing set for May 26, 2026; and WHEREAS, concurrently with the City Council’s consideration of this resolution, the City Council also considered adoption of a resolution to establish “Utility Rate Setting Procedures” by which proposed updates to rates for water, wastewater, and solid waste services would be processed in accordance with the requirements of Proposition 218 (including the consideration of “written protests” summarized herein), and proposed updates to water and wastewater rates would also be processed in accordance with the requirements of Government Code Sections 53759 through 53759.2 (the “written objection” procedures under “AB 2257”).

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

3 Reso No. ______ (CM)
Meeting Date: 032426

1. That the Council accepts the results of the financial plan and the proposed rates for the water, wastewater, and solid waste enterprise funds.

2. That the Council directs staff to provide public notification of the new proposed rates in accordance with Proposition 218 and the Utility Rate Setting Procedures resolution.

3. That on Tuesday, May 26, 2026, at 5:30 p.m. or as soon thereafter as is practical, the City Council will conduct a public hearing on the tabulation of the protests and adoption of the proposed fees, rates, and charges for water, sewer, and solid waste services pending the results of the protest. The public hearing will be held at the meeting place of the City Council, located in the City Council Chambers, 275 Main Street, (4th) Fourth Floor, Watsonville, California.

4. That the City Clerk is hereby authorized and directed to give notice of the hearing in accordance with the provisions of the California Government Code Section 54354.5 and California Constitution Article XIII D, Section 6. **********************************

Reso No. ______ (CM)
Meeting Date: 032426 SWZ ______ TV ______ PWU ______
1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE ESTABLISHING UTILITY RATE SETTING

PROCEDURES FOR WATER, SEWER, AND SOLID WASTE RATES
UNDER PROPOSITION 218, AND ASSEMBLY BILL 2257
(GOVERNMENT CODE SECTIONS 53750 THROUGH 53759.2)
WHEREAS, The City of Watsonville (“City”) provides utility services for water, sewer, and solid waste service to property owners (who may also be referred to as “owners”) within the relevant City service area, and establishes the amount of water, sewer, and solid waste rates (collectively “utility rates” or “rates”) to be charged to customers in accordance with Watsonville Municipal Code Title 6, Chapter 3 (See Section 6-3.301) and applicable law; and
WHEREAS, California law authorizes the City to charge a fee to the property owners or property owners’ “tenants” (who may be collectively referred to as “ratepayers” or “customers”) for the proportionate cost of providing water and sewer services to each customer in accordance with the procedural and substantive requirements of the voterapproved ballot measure known as “Proposition 218” (California Constitution Article XIII D; as it is implemented by the Legislature at Government Code sections 53750 – 53759.2; and as it has been judicially interpreted by appellate court decisions). The City refers to those fees as sewer rates (herein referenced as “sewer rates,” or “rate); and WHEREAS, Under Proposition 218, the City’s water, sewer, and solid waste rates are considered to be a “fee” for a “property-related service” (also referred to as a “property-related fee”), subject to the particular requirements of Constitution Article XIII D, Section 6. A property-related fee is one imposed upon any parcel or person as an incident of property ownership. In general, the City may only increase its existing rates if the City (1) calculates the rates in accordance with Proposition 218, (2) conducts a public

Reso No. ______ (CM)
Meeting Date: 032426
2 hearing before the Watsonville City Council (“City Council”), as described in this resolution, and (3) a “timely written protest” is not submitted by property owners representing a majority of the parcels served by the City; and WHEREAS, Under Government Code sections 53759.1 and 53759.2 (“AB 2257”; Chapter 561, Statutes of 2024), the City may establish a supplemental process for objecting property owners to exhaust administrative remedies, also described in this resolution, by which the City will take specified actions in response to any “timely written objection.” However, this supplemental process under AB 2257 only applies to rates for water service or sewer service, and the AB 2257 process does not apply to rates for solid waste services. Under this process, only an owner who submits a timely written objection will have a right to challenge a proposed increase in water or sewer service charges through a legal proceeding. (These supplemental processes were authorized by Assembly Bill No. 2257, Chapter 561, Statutes of 2024, effective January 1, 2025.); and
WHEREAS, the purpose of this resolution is to provide a meaningful opportunity for a property owner to submit a written objection to a proposed new or increased rates before resorting to litigation after the new or increased rates are approved by the City Council; and
WHEREAS, this resolution is intended to provide a procedure for property owners to submit a written objection regarding a new or increased rates to the City’s attention early in the rate consideration process, and to provide an opportunity for the City to address or resolve any objections before the City Council makes a final decision on whether to adopt a proposed rate pursuant to Proposition 218; and

Reso No. ______ (CM)
Meeting Date: 032426
3 WHEREAS, this resolution will identify the process the City will follow in order to implement the administrative remedies to be exhausted by property owners under Government Code sections 53759.1. In general, the City will make available the proposed rates, post the written basis for the proposed rates on its internet website, provide 45 days for a property owner to review the proposed rates and timely submit to the City a written objection to the rates that specifies the grounds for alleging noncompliance with Proposition 218, supplement any Prop 218 notices to property owners with a link to the notice on the agency’s website identifying these requirements, and require the City to consider and respond in writing to timely submitted objections prior to the close of the public hearing described in these recitals; and WHEREAS, for any rates approved by the City implementing the procedures described in this resolution, a person or entity shall be prohibited from bringing a judicial action or proceeding alleging noncompliance with Article XIII D of the California Constitution for those rates, unless that person or entity has timely submitted to the City a written objection to that rate that specifies the grounds for alleging noncompliance with Proposition 218; and
WHEREAS, the City Council hereby intends to adopt the exhaustion of administrative remedies procedure as outlined in Government Code section 53759.1, and the administrative record principles contained in Government Code section 53759.2.

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

1. The City Council hereby adopts the utility rate setting procedures attached hereto as Exhibit “A,” and incorporated herein by reference (“Utility Rate Setting Procedures”). As used in this resolution, the phrase “utility rate” or “rate” shall

Reso No. ______ (CM)
Meeting Date: 032426 SWZ ______ TV ______ PWU ______
4 collectively refer to City water rates, sewer rates, and solid waste rates. The Utility Rate Setting Procedures explicitly incorporate and implement the requirements contained in Proposition 218 for the purpose of any update to water rates, sewer rates, or solid waste rates. Additionally, for water rates and sewer rates only, the Utility Rate Setting Procedures document how property owners are required to exhaust administrative remedies as set forth in Government Code section 53759.1, subdivision (c) (AB 2257).

The AB 2257 procedures do not apply to solid waste rates.

2. For any water or sewer rate adopted or approved by the City implementing the procedures described in this resolution, a person or entity shall be prohibited from bringing a judicial action or proceeding alleging noncompliance with Article XIII D of the California Constitution for those rates, unless that person or entity has timely submitted to the City a written objection to those rates in accordance with this resolution that specifies the grounds for alleging noncompliance with Proposition 218.

3. The City Council hereby adopts the administrative record principles contained in Government Code section 53759.2.

4. This resolution will take effect immediately upon adoption by the City Council, and will apply to any proposed new or increased rates of which notice is provided in accordance with this resolution.

5. The City Council authorizes the City Manager to take such other and additional actions as may be reasonably necessary to implement the purpose of this resolution and implement the exhaustion of administrative remedies procedure adopted herein.

6. To the extent any past resolution or procedure is inconsistent with this resolution, this resolution hereby takes precedent.
**************************************

Utilities Rate Study
City Council – March 24, 2026
City of
Watsonville

Agenda
2 1. Utility Rate Studies Overview

2. Why Rate Adjustments are Needed

3. Utility Infrastructure and Capital Planning

4. Rate Study Results and Recommendations

5. Example Customer Impacts

6. Public Outreach

7. Q&A

3 Utility Rate Studies

Rate Study
Process
04 Rate Setting Framework
Identify financial goals, pricing objectives, and
alternative rate structures for evaluation
01 02
03 05
Financial Plan
Evaluate operating & capital costs; conduct cash
flow & scenario analysis
Rate Design
Conduct rate calculations & customer impact analyses
Study Documentation
Provide documentation & study report; review of
rates by legal counsel
Rate Adoption
Notice customers, host Public
Hearing, collect & count protests,
consider adoption of rates & charges
4 Page 213 of 285
5 CAPITAL PROJECT FUNDING
Funding Mix
(Cash vs. Debt)
Debt
Covenants

ANNUAL CASH FLOW

FISCAL POLICIES AND TARGETS
Cash
Reserves
Debt Service
Coverage

FINANCIAL PLAN INPUTS
• Customer connections
• Billed water use
• Revenues
• Operating expenses
• Capital plan
• Beginning cash position
Utility Financial Planning
Annual Revenue
Requirement

Cost of Service – Water Illustration
6 Revenue
Requirement
SOS
WTP
Pumping
Storage
T&D
Meters Identify
and
Apportion
Costs
Cost of service allows the matching of rates charged with the costs of serving each group Allocate
Costs ($)
Residential
Commercial
Irrigation

7 TIER 1 TIER 2 TIER 3
Residential
(Indoor)
Residential
(Beyond Tier 2)
Residential
(Outdoor)
0 – 6 Units* 6 - 12 Units >12 Units
*Unit = Hundred Cubic Foot (CCF) which is approximately 748 gallons Residential Tiers for Multi-Family connections are per dwelling unit Non-Residential,
Industrial,
Irrigation
Rate Design – Water Illustration
Uniform

8 Why Rate Adjustments
Are Needed

Inflationary Pressures More Stringent Regulatory
Requirements
Significant Challenges Facing Utilities Today
9 Capital Reinvestment
Future Borrowing Terms
and Assumptions
Cash Reserves

10 Utility costs increase much
faster than general inflation.

BUT IT’S MORE THAN

JUST INFLATION
…
11 Page 220 of 285
Water Capital Improvements
Chromium VI Treatment Design
Hexavalent Chromium Treatment Project
 In 2017 California adopted & later rescinded an
even lower state Maximum Contaminant Level
(MCL) of 10 parts per billion (ppb)
 Re-adopted 10 ppb in October 2024
 5 of 11 Wells Require Treatment
 Approved Plan: Compliance by December 2030
 Estimated Cost: $25 million

Water Capital Improvements
New Zone 2 Reservoir
 Construction complete this month!
 $10 million construction cost
New Water Well 4
 Construction complete in October 2026
 $6 million construction cost

Water Capital Improvements
Other Projects Within Rate Study Period
 New well to replace two PFOS Impacted wells:

Estimated $7 million
 Replace Freedom Reservoir Floating Covers:

Estimated $2.2 million
 Poppy Hill Booster Station Improvements:

Estimated $1.1 million
 Airport Reservoir Recoat: Estimated $2 million
 Water Main Replacement: Estimated $2 million/yr

Solid Waste Capital Improvements
 Enterprise Fund is healthy due to landfill project
completion in 2025!
 CIP focus is replacing aging vehicle fleet

Wastewater Capital Improvement Program
2019 WWTF Condition Assessment
• Headworks/IPS was previously identified as highest priority CIP • After assessment, the WWTF electrical system was identified as the highest risk for catastrophic failure of the plant due to antiquated equipment, significant corrosion, and flood risk

Wastewater Capital Improvement Program
Electrical System Hazard Mitigation Project
• Designed 2021 to 2023
• Awarded $17 million FEMA/CalOES HMGP Grant in 2024
• Bid/Construction 2024 through early 2027 ($20 million project)

Wastewater Capital Improvement Program
Headworks & IPS Project
• Designed 2023 to 2026
• Secured $37 million SRF low interest loan in 2026
• $2 million in Lofgren Community Grants

Existing Headworks Condition Since 2018
Added safe access on deteriorated
structure for operators to reach equipment.

Closed access to
unsafe portions of
existing structure.

Performed emergency
repairs to structure and
equipment to survive to
the new project
construction. Page 228 of 285
Dewatering Process
Digester Gas/
Cogeneration Engine
20 Same Story
Throughout the Plant

What Are We Doing About It?
Smaller Projects and Equipment Repairs:
• Gravity Thickener Rehabilitation Project $587,000
• SCADA Replacement Project $877,000
• Boiler Replacement Project $550,000
• Pumps, pumps, and more pumps $173,000
• UV System maintenance overhaul $238,000
• All three filters overhaul $523,000
• Complete rebuild of Belt Press #9 $305,000
• Handrail Installation/Cover Removal Project $78,000
• Underground Storage Tank Code Improvements $23,000

What Are We
Doing About It?
As much as we can with our
excellent maintenance staff!
But we can only do so much…

Critical Moment for Our City
1986 - 1988 2018
WE ARE
HERE
Opportunity to take action to avoid potential community and environmental health emergency

24 Rate Study
Results and
Recommendations

Study Goals and Objectives
25 • Develop Long-Range Financial Plans for the Enterprises › Develop cash flow models to project total expenses, including generational capital investments that require significant external borrowing commitments
• Rate Sensitivity Analysis
› Moderate customer impacts by balancing cash-funding with strategic external borrowing
• Updated Cost of Service and Rate Design
› Ensure up-to-date and appropriate allocation of costs to users and fair and equitable recovery of costs through the utility rates

Funding and Financing Strategy
• Critical capital infrastructure reinvestment drives future rate revenue needs
• Strategy: Utilize external financing for major capital projects › Benefits:
– Spreads costs over time (intergenerational equity between ratepayers) – Reduces near-term cash needs resulting in lower increases • Avoids rate shock for current ratepayers
• Ensures long-term reliability of infrastructure with multi-generational benefits
26 Page 235 of 285
Water Utility – Key Drivers
• Chromium-6 Water Treatment Plants: Significant capital improvements required to meet regulatory standards and
maintain level of service
• Aging Infrastructure: Need for ongoing rehabilitation and replacement including water pipelines, well replacements, and storage reservoirs
• Inflationary Pressures: Rising costs for materials, energy, labor, etc.
• Results of the updated cost of service analysis
27 Page 236 of 285
Results - Water
• Rate revenue adjustments required
› 5% annually for FY 2027 through FY 2031
• Maintain the existing rate structure
› Three tiers for Residential customers
› Uniform for all other classes (Commercial, Industrial, Irrigation) • Customer Impact: $3 to 4 / month for a typical Single Family Residential customer using 6 to 8 units of water per month 28 Page 237 of 285
Wastewater Utility – Key Drivers
• Headworks Project: Essential upgrades at the treatment plant • Cogen Replacement (Energy Savings Project): Critical capital project for energy efficiency and operational reliability • Aging Infrastructure: Need for ongoing rehabilitation and replacement including collection mains and lift stations • Regulatory Compliance: Ensuring continued environmental protection standards
• Inflationary Pressures: Rising costs for materials, energy, and labor
• Balancing service levels with cost control
29 Page 238 of 285
Results - Wastewater
• Rate revenue adjustments required
› 16% in FY 2027,
› 12% in FY 2028, and
› 6% annually for FY 2029 through FY 2031
• Capital Improvement Program funding:
› Use of reserves (cash funding)
› External financing
– ~$37 million SRF for Headworks project,
– ~$20 million financing for Cogen project
• No changes proposed to the rate structure
• Customer Impact: Approximately $9 / month for a Single-Family Residential customer
30 Page 239 of 285
Solid Waste Utility – Key Drivers
• SB 1383 Compliance: Meeting state mandates for organic waste diversion and recycling
• Inflation: Increased operational costs (fuel, labor, fleet maintenance)
• Modernization: Improving collection efficiency and processing • Align rates with the updated cost of service analysis and state mandates
31 Page 240 of 285
Results – Solid Waste
• Rate revenue adjustments required
› 2% annually for FY 2027 through FY 2031
• Cash reserves and proposed rate revenue adjustments are sufficient to meet operating and capital needs
• No changes to rate structure proposed
• Customer Impact: Approximately $0.75 to $1.50 / month for a residential customer
32 Page 241 of 285
33 Sample Customer
Bill Impacts

Combined Services Single Family Residential
Monthly Bill Impacts – Lower Volume
Small SFR: 5/8" meter w/ 6 ccf monthly consumption & 32-gallon cart service 34 Page 243 of 285
Combined Services Single Family Residential
Monthly Bill Impacts – Typical Volume
Typical SFR: 5/8" meter w/ 8 ccf monthly consumption & 68-gallon cart service 35 Page 244 of 285
Regional Rate Survey
Combined Services – Single Family Residential
36 Typical SFR: 5/8" meter w/ 8 ccf monthly consumption & 68 Page 245 of 285 -gallon cart service 37 Public Outreach

Customer
Communications
38 Dedicated Project Webpage
• Why rate adjustments are recommended
• Interactive bill calculator
• Engagement event details
• Neighboring communities comparison
• FAQs
April Webinar
• Recorded virtual presentation and Q&A
Proposition 218 Notice
• Bilingual notice to all customers
Social Media Posts
• In production to be sent after 218 and web
publication. Reminders and details
Farmers’ Market Booth
• Rate study information, and reminder of
public hearing

Proposed Study Schedule
• March 24, 2026: Authorize staff to proceed with a Proposition 218 Hearing • April 1, 2026: Print and postmark Proposition 218 notices to affected property owners and tenant account holders
› 45-day minimum protest period, plus AB 2257 Objection window • April – May 2026: Public outreach and engagement activities • May 26, 2026: Conduct a Proposition 218 Public Hearing to consider and adopt rates
• July 1, 2026: New rates in effect
39 Page 248 of 285
40 +

March 24, 2026

Citywide LED
Streetlight
Replacement Project
The LED streetlight retrofit is 70%
complete, with about 1,856 of 2,757
lights installed.

Upcoming
Road Work
• 2025 Pavement Maintenance (Part 2)
• Caltrans Hwy 129 & 152
• Union Street
• Roache (Well 4)
• Lawrence/Magnolia/Rialto
• Lee Road
• Freedom Blvd
• PV High Bridge Project

Egg Hunt
Eggstravaganza
Who else is egg-cited?
Hop on over to Franich Park on
Saturday, April 4 from 1-4pm
Enjoy a fun-filled day with arts & crafts,
games, music, yummy food, and so
much more. And don't forget to snap a
picture with the Easter Bunny.
795 Vista Montana Drive
Ages 3-13 can hunt for eggs!
*Please bring your own basket
(or container) for the egg hunt.

𝙉𝙉𝙚𝙚𝙬𝙬 𝘽𝘽𝙞𝙞𝙯𝙯
𝙤𝙤𝙣𝙣 𝙩𝙩𝙝𝙝𝙚𝙚 𝘽𝘽𝙡𝙡𝙤𝙤𝙘𝙘𝙠𝙠!
We’re excited to give a warm Watsonville
welcome to three new businesses that just
opened their doors in our community.

The following businesses are ready to
serve you:

Benjamin Moore Golden State Paint
1405 Freedom Boulevard
Planet Fitness
1702 Freedom Boulevard
Angry Chickz
975 Main Street, Suite 5

City Plaza Update
Construction contract on today’s
agenda.

Groundbreaking in May, pending
approval.

Public Works Project
Bidding Overview
March 24, 2026
City Council Informational Presentation

Public Works Code
Requirements

Public Contracts
Code (PCC) 20162
& 21000
(California Uniform
Public
Construction Cost
Accounting Act)
• Purpose of the Code:
• Clarify competitive bidding requirements
• Protect the public from misuse of public funds
• Provide all qualified bidders a fair opportunity to
enter the bidding process, thereby stimulating
competition in a manner conductive to sound fiscal
practices
• Eliminate favoritism, fraud, and corruption in the
awarding of public contracts

Public Contract Award Requirements
Requires award of bid to the lowest responsible, responsive bidder Requires the City to confirm contractor compliance during construction with Department of Industrial Relations and Department of Apprenticeship standards on all public works projects

Public Works Project Requirements - DIR
Department of Industrial Relations (DIR): Establishes
prevailing wage rate paid by all contractors on all public works projects (includes hourly rate, pension, vacation pay, training pay)

Public Works Project Requirements - DAS
Department of Apprenticeship Standards (DAS): Establishes the required training and use of apprentices by all contractors on all public works projects:
• Notify apprenticeship committees of project award
• Make minimum training fund contributions
• Employ apprentices at the minimum ratio
• Provide worker’s comp benefits to apprentices employed

Public Works Bid Award
Requirements

Public Works Bid Award
Requirements
Per PCC a Responsive Bid: Indicates
compliance without material deviation from
the requirements of the solicitation and the
terms and conditions of the proposed contract.
• Bidder completed all required bid forms
completely
• Bid submitted on time
• Submitted information is accurate
• No added conditions on bid
• 10% Bid bond fully executed and faithfully
provided

Public Works
Bid Award
Requirements
Per PCC a Responsible Bidder: Demonstrated the
attribute of trustworthiness, as well as quality, fitness, capacity, and experience to satisfactorily perform the work • Valid State Contractor License: Not debarred from
Federal or State bidding
• Registered Public Works Contractor with the
Department of Industrial Relations and in good
standing meaning:

No delinquent unpaid wage or penalty assessments
owed to employee or enforcement agency (i.e.

Contractor maintains compliance with DIR and
DAS requirements)

Public Works
Bid Award
Requirements
Per PCC a Responsible Bidder: Demonstrated the
attribute of trustworthiness, as well as quality, fitness, capacity, and experience to satisfactorily perform the
work
Public Agency can determine other requirements for
contractor to demonstrate they are a responsible bidder Typically:
• Similar completed project
experience
• Safety record
• References on completed
projects
• Financial capacity

Bidder Experience
Requirements

Bidder Experience Requirements
Why are bidder experience requirements important? For example, a plumbing contractor may have very different project experience.

Reduced experience requirements = more risk to City since PCC requires selection of low bidder
VS

City’s Standard Experience Bid Form
Requires the following level of experience in the last seven (7) years:
• Two (2) projects of equal construction value and similar nature and complexity as the project being bid
• Five (5) projects of 50% of construction value and similar nature and complexity as the project being bid

EJCDC Qualification Form
Engineers Joint Contract Documents Committee
Qualification Form (C-451) recommends:
• Bidder’s organizational
structure
• Licensing
• Business certifications
• Safety history
• Financial statements
• Insurance coverage
• Claims history
• Previous experience with similar
projects

EJCDC Qualification Form
Experience-specific requirements:
• List all similar contracts and amounts held by bidder still in progress with more than 10% of work remaining to be completed • A minimum of five (5) and maximum of ten (10) projects completed in the last 10 years, similar in type and cost to the project being bid
• Identify and provide resumes on the key individuals whom the bidder intends to assign to the project if awarded

Comparison to Other Local Agencies
Reviewed other local agencies including other full-service and utility special districts:
• City of Santa Cruz
• County of Santa Cruz
• Monterey One Water
• Caltrans

City Bidder Responsiveness
City’s standard and project-specific experience forms align with or are less stringent than other local agencies
City bid data past three years indicates an average of 3 bidders across all bids, with a success rate of 73% overall

City Bid Period Data

Public Works Bid Period Requirements
• Public Contract Code – PCC 22307 requires that the
notice inviting formal bids is publicly advertised at
least 14 calendar days prior to bid opening
• Industry Average – No set industry standard,
generally 30-45 days is considered reasonable for a
successful bid
• City Engineering – Aim for at least a 30-day bid
period or longer
• Potential bidders can request a time extension
prior to bid opening
• Typically granted it unless there are limiting
project funding timeline requirements.

City Public Works Bid
Period Data
Reviewed all projects bid over last
three (3) years across all project types
• Average bid period across all projects
was 34 Days, well within industry
standard
• Average bid success (award) rate
across all project types 73%

City Bid Period Data
Data varied by project type:
• Water/Wastewater projects had a longer average bid period and a lower success rate • All other project types had a shorter average bid period with a higher success rate

INDICATES LONGER BID PERIOD DOES NOT INCREASE BID SUCCESS # Projects Bid Avg. Bid Period Bidding Success Rate
All Projects 33 34 Days 73%
Water/Wastewater 14 39 Days 64%
All Other Project Types 15 30 Days 79%

City Bidding Portal
OpenGov

Live Demo
https://procurement.opengov.com/governments/3921/projects

Questions?