Watsonville City Council
June 23, 2026

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o Canvassed 3,637 single-family
homes and offered direct installation
services to 117 multi-family residential
properties.
o Installed 1.5 gpm showerheads, 1
gpm bathroom faucet aerators, and 1.5 gpm
kitchen aerators in 1,258 homes, including
26 home day care businesses. o Upgraded 42
residential clothes washers and 14
residential dishwashers to
Energy Star most-efficient models.
o Upgraded 32 multi-family
commercial clothes washers to Energy Star
most- efficient models.
o Fixed nine egregious leaks wasting
more than 24 gallons/day.
o Referred residents to City toilet
replacement and landscape efficiency
rebate programs.
o Offered direct installation services
to 226 commercial kitchens and installed
low-flow, pre-rinse spray nozzles and faucet
aerators at 103 restaurants, grocery stores,
and PVUSD cafeterias.
o Upgraded six commercial
dishwashers to Energy Star models.
o Referred businesses to utility rebate
programs and local green business
programs.
• Toilet Rebates and Retrofits: Over
the last five years, the City has offered
rebates to all customers that install highefficiency toilets that replace toilets using more than 1.6 gallons per flush. The City
picks up the old toilet to ensure that it
qualifies for the rebate and also to ensure it
does not get re-installed at any location. The
rebate amount is $100. Over the last five
years, 329 toilet rebates were provided. In
the last two years, the City has seen a decline
in demand for this program, and therefore,
it will be discontinued moving forward.
• The City has also been sponsoring a
direct-install toilet replacement program in
partnership with Central Coast Energy
Services. The City’s toilet rebate and toilet
replacement programs are available to all
customers, and there is not a limit on the
number of toilets per location. The toilet
rebate and toilet replacement programs do
not have income restrictions. Over the last
five years, 76 toilets were replaced through
this program. This program will continue and
will target underserved residents, ensuring
that low-income households do not
experience financial barriers to water
savings due to the cost of installation by a
licensed plumbing contractor.
• Coordination with Local Retailers:

The City ensures that the toilet and washer
rebate information is available at the point
of sale. City staff meets with staff at local
retailers such as Home Depot, Orchard
Supply, K-Mart, and Ace Hardware to
provide “shelf talkers” and rebate
applications and update store employees on
new water conservation programs. This
component of the rebate program will most
likely get modified to fit new conservation

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rebates offered by the City.
• Landscape Water Conservation
Rebate: Since 2014, the City has been
offering a $0.75 per square foot rebate for
customers to replace high water use lawns
with drought-tolerant, permeable
landscaping. Residential customers are
eligible for a maximum rebate of up to $500,
and multi-family, commercial, or
institutional customers are eligible for a
maximum rebate of $1,000. The City plans
on increasing the rebate to $1.00 per square
foot with the same limitations of rebating up
to 1,000 square feet for single-family
residences and 5,000 square feet for multifamily and commercial. The City hopes to encourage more lawn conversions by
offering a higher rebate. Over the last five
years, 297 residents have taken advantage
of the turf replacement rebate. The City has
reimbursed water customers $100,425 to
offset costs of replacing 237,549 square feet
of lawn with climate-appropriate landscapes
through the Landscape Water Conservation
Rebate program. During the reporting
period, the program is estimated to have
reduced landscape water demand by 20.37
acre-feet annually.

Proposed New Rebate Programs
• Stormwater Run-off Redirection
Rebate: The City is proposing a new rebate
program that would help residents and
businesses redirect stormwater run-off from
impervious surfaces away from the
municipal storm drain system or public
water bodies (river, creek, seasonal
drainage, wetland, etc.) into a rain barrel,
cistern, rain garden, bio-swale, dry creek
bed, or other passive bio-retention feature
in their landscape. The program is still in the
development phase and will be piloted to
see interest and effectiveness. The program
would provide qualifying applicants with a
$1.00 per square foot (of the impervious
area) rebate, up to a maximum of $1,000
(single family) or up to $2,000 (commercial).

It would only apply to properties 2,500
square feet and less and not to new
developments. This rebate would require a
pre-approval inspection and a postinstallation inspection. • Submetering Rebate: Multi-family
and commercial properties who install submeters for individual residences or landscape irrigation would qualify for up to
$150 per sub-meter installed at apartment
complexes, condominiums, mobile homes,
commercial complexes, and landscapes. A
pre- and post-construction inspection would
be required. This program is still in the
development phase and will be piloted when
the City has all the necessary tools and
equipment in place to do so.

9.4.5. DMM No. 5: Programs to Assess
and Manage Distribution System
Real Loss
The City routinely conducts distribution
system water audits, leak detection, and
repair. The City has permanently

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incorporated these programs into its utility
operations. System losses are calculated by
comparing the volume of water pumped
from City wells and the surface water system
to the volume of water delivered to
customers. As noted in Section 7.1.

In addition to monitoring water losses,
starting in 2014, the City has redoubled its
efforts to replace aging water infrastructure.

The Watsonville City Council has recognized
and supported adjustment to water rates to
allow for expediting of the main
replacement program.

The City recognizes that as infrastructure
continues to age, service connections and
water main breaks will continue to increase.

The City actively looks for and, in a timely
fashion, fixes leaks and breaks to minimize
water loss.

9.4.6. DMM No. 6: Water Conservation
Program Coordination and Staffing
Support
The City employs an Environmental Projects
Manager who serves as the water
conservation coordinator. Tasks include
oversight and implementation of extensive
conservation programs, program reporting,
and communication of water conservation
issues within the City organization and to the
public. This manager is assisted by the
Environmental Outreach Team that consists
of three full-time and two part-time
employees. In addition to the water
conservation program, this manager also
oversees outreach in the areas of solid
waste, recycling, wastewater, stormwater,
and climate change. This team provides
educational and outreach of water
conservation measures to all residents,
businesses, and the youth. Under this
organizational structure, this robust team is
able to direct resources to priority issues.

For example, during drought years, the
Outreach Team will redouble its efforts on
water conservation. The Environmental
Projects Manager also receives additional
support from various divisions within the
Public Works and Utilities Department,
including the Water Operations, Customer
Service (metering), and Engineering
Divisions. In addition, the City contracts
consultation services from licensed
landscape irrigation specialists who provide
technical assistance to City facilities, local
businesses, and residents and help
implement the City’s Landscape
Consultation Program, the Lawn
Replacement Rebate Program, the Green
Gardener program, and the MWELO.

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9.4.7. DMM No. 7: Other Demand
Management Measures
Conservation Programs for Commercial,
Industrial, and Institutional Accounts
The City’s Water Pollution Prevention Source
Control Program works with commercial and
industrial users to reduce water use. Annual
inspections of the larger industrial facilities
(those with wastewater flows more than
25,000 GPD) focus on pollution prevention
and water conservation. Water use by
industrial and large commercial users is
measured monthly.

Water Conservation on City Properties
The irrigation systems at the City’s parks,
open space, and municipal buildings have
undergone complete water use audits.

Repairs and improvements are being made
to systems on an annual basis with a goal to
reach current MWELO standards for
irrigation equipment. Weather-based
irrigation controllers have been installed at
four City parks. A 20 percent reduction in
park irrigation was implemented during the
drought and is ongoing for the future. Over
the last five years, the City has also
retrofitted over 50,000 square feet of turf
grass and antiquated sprinkler irrigation
systems at multiple City properties, including
replacing 34,400 square feet of irrigated turf
grass in medians along a ¾-mile stretch of
Bridge Street with mulch, low-water use
perennials, and low-volume irrigation. The
program is estimated to have reduced
landscape water demand by 7.24 acre-feet
annually.

9.5. CONTINUED IMPLEMENTATION
As described in Section 6.5 the City's per
capita water use in 2025 was 83.9 GPCD,
which demonstrates that the City continues
to meet its 2020 urban water use target of
117 GPCD. Although the City has met its
target year water use, the City plans to
continue its conservation efforts described
herein for at least the next five (5) years. The
City will continue to track all program
activities. Program effectiveness and per
capita water use will be monitored through
the billing system. For example, the City can
measure impacts of infrastructure, repairs,
and replacements, including leaking mains,
by comparing apparent water losses from
the previous month. For this reason, the City
will continue to develop its AMI system as a
tool to measure effectiveness of all the
DMMs.

APPENDICES A – P

Appendix A: Council Resolution Adopting 2025 UWMP
City of Watsonville 2025 Urban Water Management Plan

Appendix B: Council Resolution Adopting 2025 WSCP
City of Watsonville 2025 Urban Water Management Plan

Appendix C: UWMP Act
City of Watsonville 2025 Urban Water Management Plan

Appendix D: Dept. of Water Resources UWMP Checklist
City of Watsonville 2025 Urban Water Management Plan

Appendix E: Dept. of Water Resources UWMP Data Tables
City of Watsonville 2025 Urban Water Management Plan

Appendix F: Dept. of Water Resources SBx7-7 Tables
City of Watsonville 2025 Urban Water Management Plan

Appendix G: UWMP Notices: 60-Day Notice, 2-Week and 1
Week Notices
City of Watsonville 2025 Urban Water Management Plan

Appendix H: Final Transmittals to County and State Library City of Watsonville 2025 Urban Water Management Plan

Appendix I: ULARA Judgment
City of Watsonville 2025 Urban Water Management Plan

Appendix J: Rockhaven Well Operation & Water Sale
Agreement
City of Watsonville 2025 Urban Water Management Plan

Appendix K: CVWD Water Conservation Program
City of Watsonville 2025 Urban Water Management Plan

Appendix L: 2021 Crescenta Valley Water District Hazard Mitigation Plan
City of Watsonville 2025 Urban Water Management Plan

Appendix M: 2025 Recycled Water Feasibility Study
City of Watsonville 2025 Urban Water Management Plan

Appendix N: Crescenta Valley Water District Staff Report (Rosemont Preserve)
City of Watsonville 2025 Urban Water Management Plan

Appendix O: Riverside County Multi-Jurisdictional Local Hazard Mitigation Plan (Ch. 4 to 5.3.1)
City of Watsonville 2025 Urban Water Management Plan

Appendix P: Final Transmittals to County and State Library City of Watsonville 2025 Urban Water Management Plan

1 Reso No. ______ (CM)
Meeting Date: 062326 SWZ ______ TV ______ PWU ______
RESOLUTION NO. (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE APPROVING THE CITY OF WATSONVILLE 2025

WATER SHORTAGE CONTINGENCY PLAN, INCLUDED IN THE CITY
OF WATSONVILLE 2025 URBAN WATER MANAGEMENT PLAN
WHEREAS, pursuant to Section 10620 of the California Water Code mandates that every supplier providing water to more than 3,000 customers prepare and adopt an Urban Water Management Plan (UWMP), that has as its primary objective the conservation and efficient use of water; and
WHEREAS, previously the Water Shortage Contingency Plan (“Plan”) was included as part of the UWMP. California Water Code now requires that the Plan be a stand-alone plan that can be updated at any time, outside of the UWMP update process; and
WHEREAS, the Plan must be adopted, along with the UWMP by July 1, 2026, after it is first made available for public inspection and a public hearing is noticed and held, and it must be filed with the California Department of Water Resources within thirty (30) days of adoption; and
WHEREAS, notice has been properly given as required by and according to the provisions of Section 6066 of the Government Code; and
WHEREAS, on April 6, 2026, the City of Watsonville provided notice to the County of Santa Cruz on the development of the 2025 Urban Water Management Plan (UWMP) and 2025 Water Shortage Contingency Plan (WSCP) in compliance with the Urban Water Management Planning Act; and
WHEREAS, the City of Watsonville advertised notice of the public hearing in the Pajaronian on June 12, 2026, and June 19, 2026; and
WHEREAS, the UVMP and WSCP are available to the public at the City’s

2 Reso No. ______ (CM)
Meeting Date: 062326
Administrative Offices, 275 Main Street, Top Floor, Watsonville CA 95076. An electronic (PDF) copy may also be obtained by request; and
WHEREAS, on June 23, 2026, the Council afforded every interested person an opportunity to comment on the Plan either in writing or orally.

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

1. That the Council finds and determines that adoption of the City of Watsonville 2025 Water Shortage Contingency Plan is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to California Water Code Section 10652.

2. That the City of Watsonville 2025 Water Shortage Contingency Plan, a copy of which is attached hereto and incorporated herein by this reference, is hereby approved.

3. That the Public Works Director, or her designee, is hereby directed to submit a copy of this Plan as part of the 2025 City of Watsonville Urban Water Management Plan, no later than thirty (30) days after adoption to the California Department of Water Resources (DWR), the California State Library, and the County of Santa Cruz, pursuant to Subsection (a) of Section 10644 of the California Water Code. ****************************

2025

WATER SHORTAGE

CONTINGENCY PLAN
City of Watsonville, CA
500 Clearwater Lane, CA 95076
(831) 768-3170, Fax: (831) 763-3170
PWS No. CA4410011
June 2026
(Draft)
Prepared by:

West & Associates Engineering, Inc.
78 Anacapa Ct. Foothill Ranch, CA
(949) 716-7670

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Section 8: Contingency Planning .................................... 112

8.1. INTRODUCTION ........................................................................................................... 112

8.2. NEED FOR CONTINGENCY PLANS ................................................................................ 113

8.2.1. Recent California Water Code Amendments .................................................................. 113

8.3. LEGAL AUTHORITY ...................................................................................................... 114

8.4. WATER SUPPLY RELIABILITY ANALYSIS ....................................................................... 114

8.4.1. WSCP Re-Adoption ......................................................................................................... 114

8.5. City Staff Response ..................................................................................................... 115

8.6. ANNUAL WATER SUPPLY AND DEMAND ASSESSMENT PROCEDURES ....................... 117

8.7. WATER SHORTAGE CONTINGENCY PLANNING ........................................................... 117

8.8. WATER SUPPLY RELIABILITY ANALYSIS ....................................................................... 118

8.9. ANNUAL WATER SUPPLY AND DEMAND ASSESSMENT PROCEDURES ....................... 119

8.9.1. Decision Making Process ................................................................................................ 119

8.9.2. Data and Methodologies ................................................................................................ 119

8.10. SIX STANDARD WATER SHORTAGE STAGES ............................................................ 119

8.11. SHORTAGE RESPONSE ACTIONS ............................................................................. 120

8.11.1. Demand Reduction Actions ............................................................................................ 120

8.11.2. Supply Augmentation ..................................................................................................... 126

8.11.3. Operational Changes To Address Water Shortages ........................................................ 127

8.11.4. Additional Mandatory Restrictions ................................................................................. 127

8.11.5. Emergency Response Plan .............................................................................................. 127

8.11.6. Shortage Response Action Effectiveness ........................................................................ 128

8.12. COMMUNICATION PROTOCOLS ............................................................................. 128

8.13. COMPLIANCE AND ENFORCEMENT ........................................................................ 129

8.14. LEGAL AUTHORITIES ................................................................................................ 130

8.15. FINANCIAL CONSEQUENCES OF WSCP ................................................................... 131

8.16. MONITORING AND REPORTING .............................................................................. 131

8.17. WSCP REFINEMENT PROCEDURES .......................................................................... 132

8.18. SPECIAL WATER FEATURE DISTINCTION ................................................................. 132

8.19. WSCP ADOPTION, SUBMITTAL, AND AVAILABILITY ................................................ 132

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8.1. INTRODUCTION
In addition to prolonged droughts that can
gradually decrease water supplies, water
supplies may be interrupted in a number of
sudden, catastrophic ways. Sudden
catastrophes may include earthquakes,
power outages, pumping equipment failures,
or spikes in groundwater contaminants that
cannot be remedied quickly. Water shortages
can also be a result of intentional or accidental
manmade catastrophes, such as acts of
terrorism or chemical spills into nearby canals
or groundwater spreading grounds. It is
important that the City has a plan in place to
manage its water system during short or longterm water shortages. Long term, water shortages can be addressed through
conservation and supply augmentation.

Short-term water shortages are best handled
though a “Contingency Plan.” A Water
Shortage Contingency Plan (WSCP) is a
required component of the City’s UWMP,
which provides guidance on stages of action
to be undertaken by the City in response to
water supply shortages. A WSCP is an
independent document that is incorporated
into the City’s UWMP.

This Section serves as the City’s WSCP. The
City's response to water shortages will be a
coordinated effort between City staff and
other local and regional water agencies.

During a water shortage emergency, the City
will activate this WSCP. The intent of the plan
is to reduce the effect of shortages on the
City’s customers. In compliance with the
Water Code requirements, this plan has six
8 Section 8:

Contingency Planning
Diesel-powered
pumps can provide
emergency water
supplies during
sudden
catastrophes.

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water shortage levels (up to 10-, 20-, 30-, 40-,
50-percent, and greater than fifty percent
(50%) shortage compared to the normal
reliability condition).

8.2. NEED FOR CONTINGENCY PLANS
The recent drought of 2020-2022 significantly
depleted the State’s supply of water and
posed a challenge to many agencies
throughout the State. Following the drought,
the State experienced a wet winter in 2022.

Climate-driven weather extremes, long-term
water supply uncertainty, and aging
infrastructure are stressing a system built for
a different era. The modernized California
Water Plan 2028 is allowing the state’s
opportunity to respond with a clear,
actionable, and durable approach to
statewide water planning.

The WSCP is the City’s operational plan in the
event of a water shortage. Water shortages
would occur when available water supplies
are insufficient to meet normal customer
water demands. Various causes can bring
about a water shortage, including population
growth, climate change, drought, natural
disasters, and other catastrophic events.

The WSCP shall address the following ten
elements:

1. Water supply reliability analysis

2. Annual water shortage assessment
procedures

3. Six standard water shortage stages

4. Shortage response actions

5. Communication protocols

6. Compliance and enforcement

7. Legal authorities

8. Financial consequences of WSCP
implementation

9. Monitoring and reporting

10. WSCP refinement procedures
In addition, the modernization of the
California Water Plan 2028 is being directed
by Senate Bill 72 (SB 72). This legislation
provides a clear directive: move statewide
water planning from description to direction.

The California Water Plan 2028 will be
modernized to:
• Identify and evaluate effective water
management strategies, informed by
economic considerations
• Quantify beneficial uses of water at a
watershed scale throughout California
• Expand engagement across all sectors as
DWR develops the Water Plan
• Establish clear water supply targets that
help align state, regional, and local actions

8.2.1. Recent California Water Code
Amendments
There have been minor changes to the
California Water Code (CWC) affecting the
2025 UWMPs, with only some affecting
WSCPs. The changes are described in Section

1.3. In addition, the following measures were
taken in recent years that affect WSCPs:

Starting January 1, 2025, major water
suppliers were required to significantly

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reduce water delivery by 2040 to build
drought resilience into everyday life.

The 2025 update to Title 24 (including the
forthcoming enforcement beginning January
1, 2026 for many permit-applications)
introduces a number of changes targeting
reducing water consumption and improving
system efficiency. Among the most important
provisions:
• Lower maximum flow-rates for toilets,
showerheads, and faucets (for example,
toilets continue to be capped at
approximately 1.28 gallons per flush in
many cases).
• Requirements to reduce pipe sizing and
hot-water wait times to reflect lowervolume fixtures and shorter delivery distances.
• Enhanced documentation and compliance
measures: designers must show that
plumbing layouts meet both water
efficiency and energy criteria under Title
24 Part 6 and CALGreen (Title 24, Part 11).
• Greater emphasis on seismic bracing of
plumbing and efficient plumbing system
design, reflecting California’s dual
challenges of drought and quake-risk.

The SWRCB has adopted emergency
regulations to encourage Californians to use
water wisely and make conservation a way of
life.

8.3. LEGAL AUTHORITY
As indicated by Sections 8.2, the City has the
legal obligation to prepare and implement a
WSCP during times of drought or sudden
supply interruptions. This WSCP includes a
listing of shortage response actions per CWC
§ 10632 (a)(3)(A), including the means by
which the City will declare a water shortage
and authorize response actions. The
remaining Sections of this WSCP describe the
City’s response actions in greater detail.

8.4. WATER SUPPLY RELIABILITY ANALYSIS
Southern California is expected to experience
an increase in regional demands in the years
2030 through 2050 as a result of population
growth. Although increases in demand are
expected, future demands are effectively
limited due to the requirements of SBx7-7. It
can be reasonably expected that the majority
of agencies have met or were near their
compliance targets for 2020 and will continue
to meet, or will soon meet, their per-capita
usage limit in the future.

Section 7 describes the water availability
during single and multiple dry year scenarios.

Table 7.1 through 7.7 summarize the supply
and demand comparisons during normal,
single-dry year, and multiple dry year,
respectively. As shown, the City is capable of
providing a reliable supply of water to meet
the future demands.

8.4.1. WSCP Re-Adoption
Once the WSCP is revised, the City Council will

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be required to re-adopt the revised WSCP.

This will require a public hearing to receive
public comments on the WSCP. The revised
WSCP will replace the former WSCP, and will
then remain effective until the City elects to
update the WSCP.

A WSCP previously submitted in 2020 or later
may be reused; however, it must first be
reviewed, and if no updates are needed, it can
be readopted as is. It must be indicated in the
UWMP that a review was conducted and that
a previous WSCP is being readopted. Even
when no changes are made, the WSCP must
undergo a new review and adoption process
as part of the 2025 UWMP document. Section
7 of the 2025 UWMP may be used as a
reference to the readopted WSCP.

8.5. City Staff Response
The City has completed a planning process to
prepare for the impacts of hazards that could
impact the City’s service area. The City
worked with its neighbors and stakeholders to
prepare a detailed, multi-hazard plan and to
identify steps to be taken in advance to
mitigate impacts from those hazards. Through
the hazard mitigation planning process, the
City engaged its customers to inform them
about risk and seek their input on ways that
the City can reduce that risk and become
more resilient.

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Routine
Water Quality Test
Wellhead Sampling
Detection of Constituents
Above MCL
Determine Type of Constituent and
Identify Source
Temporarily
Shut Down Well
Short-Term Duration
(Days or Weeks)
Flush & Test Well
Determine if Flushing is Sufficient or
if Aquifer Zones Need to be Isolated
Determine if Well Needs
Rehab or
Well-Head Treatment
OR Determine if Depth of Well Pump
Intake Needs to be Adjusted to Avoid
Aquifer Zones of High Concentration
No
Flusing in Previous Step
Was Sufficient.

Water Quality is Good.

Return Well to Service
Yes
Keep Well Shut-Down
While Improvements
are Constructed
(Typically Months-Long)
Construct
Improvements
Or Remove Well Pump
and Adjust Depth of
Pump Intake
Re-Active Well
Once Construction
is Complete
End Result is
Fully
Operational
System
Increase Pumping
from Other Wells in the Interim
Until Well is Restored to Service
Figure 8.1 Basic Overview of
Water Quality Contamination
Response for City Wells

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8.6. ANNUALWATER SUPPLY AND

DEMAND ASSESSMENT PROCEDURES
Under CWC Section 10632(a)(2), beginning by
July 1, 2022, each urban water supplier is
required to prepare their annual water supply
and demand assessment (Annual Assessment)
and submit an Annual Water Shortage
Assessment Report to DWR. The Annual
Water Shortage Assessment Report will be
due by July 1 of every year, as required by
CWC Section 10632.1.

This section outlines CVWD’s procedures used
in conducting an Annual Assessment,
including the following: 1) written decisionmaking process for determining water supply reliability; and 2) key data inputs and
assessment methodology for evaluating the
water supply reliability for the current year
and one dry year.

As of 2022, City staff has reviewed water
production data and water consumption data
starting in January of that year, with the intent
to prepare an Annual Water Shortage
Assessment Report to the City Council of
Directors by May each year.

Figure 8.2: Sample Annual Assessment Decision-Making Process Timeline

8.7. WATER SHORTAGE CONTINGENCY

PLANNING
The City first developed a Water Shortage
Contingency Plan (WSCP) in 1995. The WSCP
serves as a flexible framework of planned
response measures to mitigate current or
expected water supply shortages. The WSCP
was prepared in accordance with the
following guiding principles:
• Shared contribution: All customers
will share the burden of reducing
water use.
• Meet basic health and safety needs:

Highest priority given to essential
uses.
• Prioritize reducing nonessential
water uses: Focus on eliminating

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outdoor water and other nonessential uses.
• Minimize economic impacts to
businesses: Minimize actions that
would have a substantial impact on
the local economy.
• Communication at every level to
ensure customer response and
confidence.

Previously, the WSCP was included as part of
the UWMP. California Water Code (CWC)
now requires that the WSCP be a standalone plan that can be updated at any time, outside of the UWMP Update process.

8.8. WATER SUPPLY RELIABILITY

ANALYSIS
A water shortage may occur due to a number
of reasons, such as population growth,
climate change, drought, and catastrophic
events. A water shortage means that the
water supply available is insufficient to meet
the normally expected water use at a given
point in time.

Drought, regulatory action constraints, and
natural and man-made disasters may occur
at any time. The WSCP is the City’s operating
manual to prevent catastrophic service
disruptions through proactive, rather than
reactive, management. This way, if and
when shortage conditions arise, the WSCP
allows the City Council, City staff, and the
public to identify and implement predetermined steps to manage a water shortage.

In Section 7.6 the Water Supply Reliability
Analyses includes the following of note:
• During the second year of a drought,
the City’s surface water source is not
likely to be available. The primary
source of water would be
groundwater. This is not a problem in
and of itself—the City typically relies
on groundwater for 90–100 percent
of its water.
• The City experienced a three-year
drought in 2007–2009 and a five-year
drought in 2012–2016. During the
first two years of the droughts, water
usage increased considerably. It was
not until year four of the five-year
drought that water usage declined.
• The Drought Risk Assessment
reviews the possibility that 2026–
2030 will be a five- year drought..

A more serious or lengthy drought, a
catastrophic event such as an earthquake, or
an extended regional power outage could
temporarily impact the City’s ability to
produce water and/or maintain adequate
system water pressure. Minimum water
pressure is required to ensure water quality
and water supply for potable water and fire
suppression demands.

In addition, the State of California has and

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could again declare an emergency drought
water shortage, requiring implementation of
the City’s WSCP.

This WSCP outlines the efforts that the City
will take in the event that it faces a water
shortage or potential water shortage.

8.9. ANNUAL WATER SUPPLY AND

DEMAND ASSESSMENT PROCEDURES
The City will prepare an Annual Water
Shortage Assessment Report (Annual
Assessment) of water demand and supply,
which must be submitted to the California
Department of Water Resources each year.

Additional assessments may be performed
as warranted. This section outlines the
process required for the Annual Assessment.

The Final Report can then be submitted to
DWR by July 1 of each year, which are shown
on DWR’s WUE Portal:
wuedata.water.ca.gov/wsda_plans

8.9.1. Decision Making Process
The Public Works Director and/or Water
Operations Manager or his/her assigns shall
perform the Annual Assessment. Additional
assessments may be submitted throughout
the year as necessary to address changing
drought conditions. The Annual Assessment
will be submitted to the California State
Department of Water Resources by July 1 of
each year.

In the event that a water shortage exists or a
water shortage is predicted to occur, the
Public Works Director shall present the data
to the City Council, and the City Council shall
vote to enact appropriate Water Shortage
Stage Level conservation requirements, as
further described below.

8.9.2. Data and Methodologies
The Annual Assessment will include at a
minimum the current year and one dry year;
that is, it will assume that the next year will
be a dry year. The dry year must assume that
the water shortage is at least level one (one–
10 percent water shortage). Additional
information/assumptions to be included are:
• Locally applicable evaluation criteria
• Description of water supply
• Quantification of water supply –
current year supply and one dry year
supply
• Customer water demand – current
year unconstrained demand and one
dry year
• Existing infrastructure capabilities
and plausible constraints (e.g.,
anticipated capital projects and/or
repairs that may constrain supplies
or add capacity).

8.10. SIX STANDARD WATER SHORTAGE
STAGES

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California Water Code requires that urban
water suppliers define six stages of water
supply shortage levels: up to 10 percent, 10–
20 percent, 20–30 percent, 30–40 percent,
40–50 percent, and greater than 50 percent
shortage. Per the Urban Water Management
Plan Guidebook of 2020 (Guidebook), the
shortage levels were standardized “to
provide a consistent regional and statewide
approach to convey the relative severity of
water supply shortage conditions.”
The Water Code further allows that an
existing water shortage contingency plan
that uses different water shortage levels
may comply with the requirement by
developing and including a cross-reference
relating existing water shortage levels to the
newly established six standard water
shortage levels. The City’s 2015 WSCP
defined four stages of water supply
shortage. These have been cross-referenced
to the six stages of water supply, as shown in
Figure 8.3.

Figure 8.3: Water Shortage Levels, 2015
And Current WSCP Cross Reference
The water shortage level will be determined
based on supply conditions, including
changes in groundwater levels or voluntary
or mandatory conservation measures
implemented by the State of California.

8.11. SHORTAGE RESPONSE ACTIONS
Multiple factors, including drought, regional
power outages, disasters, or a water supply
system failure, could cause a reduction in the
City’s water supply. As discussed below, the
City’s primary approach to a shortage is to
manage demand; augmenting supply is not
feasible in the short-term. However, the City
has redundancy in its water supply network
that may be used to address certain types of
short-term shortages.

8.11.1. Demand Reduction Actions
The following sections describe the actions
the City will take to respond to water
shortages of various levels. The City will
implement the appropriate stage when the
City’s annual water supply is reduced by the

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specific levels: up to 10 percent, 10–20
percent, 20–30 percent, 30–40 percent, 40–
50 percent, and greater than 50 percent.

Shortage levels, water supply reduction
levels, and stages of shortage response
actions are shown in Table 8.1.

Table 8.1 Water Shortage Contingency Plan Levels

SHORTAGE
LEVEL

PERCENT

SHORTAGE
RANGE
STAGE

LEVEL SHORTAGE RESPONSE ACTIONS
1 Up to 10% 1 Implement Stage 1 Water Shortage Contingency Plan 2 Up to 20% 2 Implement Stage 2 Water Shortage Contingency Plan 3 Up to 30% 3 Implement Stage 3 Water Shortage Contingency Plan 4 Up to 40% 3 Implement/Continue Stage 3 Water Shortage Contingency Plan 5 Up to 50% 4 Implement Stage 4 Water Shortage Contingency Plan 6 >50% 4 Implement/Continue Stage 4 Water Shortage Contingency Plan Stage 1: Up to 10 Percent Water Shortage
During shortages of up to 10 percent, the
City will take the following actions:
• Expand existing efforts to promote
conservation – intensify water
conservation public information and
outreach programs.
• Allocate additional funds to water
conservation staffing, rebates, and
outreach programs.
• Stepped up enforcement of
landscape water use per the MWELO
and previously approved water
allowances.
• Reduce potable water supplement to
reused water by 25 percent.

Stage 2: 10 to 20 Percent Water Shortage
Stage 2 includes all Stage 1 actions and
initiates several mandatory water use
restrictions and requirements:
• Washing paved or hard surfaces is
prohibited, except by bucket or to
prepare a surface for painting, to
maintain solar panels, or for health
and safety reasons.
• At-home vehicle washing is
prohibited, except by bucket.
• Watering or irrigating landscapes is
restricted as follows:
o Prohibited between 9:00 a.m.
and 5:00 p.m. (except by
bucket or hand-held hose
with shut-off nozzle).
o Allowed only two days per
week as scheduled and
posted by the City.
o Prohibited for more than 15
minutes per allowed day and
method (except for drip
irrigation).

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• Using potable water to fill decorative
water features is prohibited, except
to sustain aquatic life.
• Draining and refilling of private
swimming pools is prohibited, unless
necessary for health and safety or
leak repair.
• Constructing or installing and
operating new commercial car
washes and commercial laundry
systems that do not use waterrecirculating technologies is prohibited.
• Irrigation of landscaping on street
medians and narrow strips in and
alongside of public streets is
prohibited.
• Using potable water for construction
needs is prohibited when recycled
water is readily available.
• Water-conserving dishwashing spray
valves are required in restaurants
and other commercial kitchens.
• Hotels must offer guests the option
to reuse sheets and towels.
• Water use in training exercises is
prohibited.
• Customers are required to repair
broken or defective water systems
within five days.
• Reduce potable water supplement to
reused water by 50 percent.

As an alternative to the restrictions limiting
irrigation days and duration, large landscape
customers may instead limit irrigation to a
set percentage of their water budget, as
determined by the City based on the severity
of the water shortage.

Stage 3: 20 to 40 Percent Water Shortage
Stage 3 includes all Stage 1 and Stage 2
actions plus the following additional
restrictions:
• Landscape watering is limited to one
day per week for 15 minutes
(includes all types of irrigation,
including sprinkler, drip, and hand
watering).
• Irrigation of public parks, public
buildings, and playing fields,
including school grounds, is
prohibited.
• Using potable water to fill swimming
pools and spas is prohibited.
• Repair of leaks and malfunctions in
customer’s water system is required
within 48 hours.
• Allows for implementation of water
rationing if target reduction is not
met.
• Additional staff may be hired to
address outreach enforcement and
leak repair.
• Reduce potable water supplement to
reused water by 75 percent.

Stage 4: Greater than 40 Percent Water
Shortage

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Stage 4 includes all Stage 1, Stage 2, and
Stage 3 actions, plus the following additional
restrictions:
• Prohibits irrigation of any landscape
except for fire prevention, erosion
control, or environmental mitigation.
• Mandates a water rationing system
with financial penalties for violations.
• Prohibits all home vehicle washing,
including bucket method.
• Requires repair of broken or
defective customer water systems
within 24 hours.
• The City may intensify restrictions in
previous stages or add new
restrictions.
• No letters of water availability will be
issued by the building department.
• Cease all potable water supplements
to reused water.

Some of the above actions are also
considered standardized approaches by the
State of California Department of Water
Resources. The City’s Demand Reduction
Actions are listed in Table 8.2—those that
are not included in the DWR’s standardized
list are included under “Other.” Water
savings from each action are estimated, but
it should be noted that these are rough
estimates

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Table 8.2 Water Shortage Contingency Plan Levels
Shortage
level
Demand reduction
actions
How much
isthis going
to reduce
The
shortage
gap?
Additional
explanation or
Reference
Penalty, charge,
or other
Enforcement?
1 Expand Public
Information
Campaign
Estimated
4% No
1 Other 182 AFY
Reduce potable
water supplement
to reused
water by 25%
No
1 Other Estimated
4% See narrative No
2 Landscape – Limit
landscape irrigation
to specific times
Estimated

1.5% Yes
2 Landscape – Limit
landscape irrigation to
specific days
Estimated

1.5% Yes
2 Landscape – Other
landscape
restriction or
prohibition
Estimated
1%
Watering or
irrigating limited
to 15 minutes per
day and method
(except for drip
irrigation)
Yes
2 CII – Lodging
establishment must offer
opt out of linen
service
Estimated

0.2% Yes
2 CII – Commercial
kitchensrequired to use
pre-rinse spray
valves
Estimated

0.2% Yes
2 Other – Customers
must repair leaks,
breaks, and
malfunctions in a
timely manner
Estimated

0.2% Within 5 days Yes

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2 Water Features – Restrict
water use for decorative
water features, such as
fountains.

Estimated

0.1% Yes
2 Prohibit draining and
refilling of private
swimming pools, unless
necessary for health and
safety or
leak repair
Estimated

0.1% Yes
2 Other – Prohibit use of
potable water for
washing hard surfaces
Estimated

0.2% Yes
2 Other 365 AFY
Reduce potable
water supplement
to reused
water by 50%
No
2 Other Estimated
3%
See narrative Yes
3-4
Landscape – Limit
landscape irrigation
to specific days
Estimated
1% Yes
3-4
Landscape – Prohibit
certain types of
landscape irrigation
Estimated
3% Yes
3-4
Other – Customers
must repair leaks,
breaks, and
malfunctions in a
timely manner
Estimated
.1%
Within 48
hours Yes
3-4 Other 547 AFY
Reduce potable
water supplement
to reused
water by 75%
No
3-4 Other Estimated 1% See narrative Yes
5-6
Landscape – Prohibit all
landscape irrigation
Estimated

2.5% (total of Yes

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5% with
drought
surcharge/rati
oning
system)
5-6
Implement or Modify
Drought Rate Structure or
Surcharge
Estimated

2.5% (total of
5% with
landscape
irrigation
prohibition)
Yes
5-6
Other – Customers must
repair leaks, breaks, and
malfunctions in a
timely manner
Estimated
.1%
Within 24 hours Yes
5-6
Moratorium or Net Zero
Demand Increase on
New
Connections
0% No
5-6 Other 729 AFY
Reduce potable water
supplement to reused
water by 100%
No
5-6 Other Estimated 2.9% See narrative Yes
NOTE: Shortage gap estimates for each shortage level are additive to those in the prior level.

8.11.2. Supply Augmentation
The City relies on two sources of water—the
Pajaro Valley Subbasin (groundwater) and
the Corralitos and Browns creeks (surface
water). Groundwater provides 90–100
percent of the City’s needs, because the
ability to treat the surface water is limited by
the high turbidity of the creek. When
available, surface water use is considered
normal and is not an augmentation source.

There are no short-term augmentation
sources available as shown on Table 8.3.

Table 8.3 Short-Term Supply Augmentation and Other Actions Shortage level Supply augmentation methods and other
Actions by water supplier
How much is this going to
Reduce the shortage gap?
1-6 No short-term augmentation supplies
available
n/a

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8.11.3.Operational Changes To Address
Water Shortages
The City has made a number of preparations
to provide water during emergencies.

Historically, the most common emergencies
have been regional power outages and
earthquakes.

While there are no short-term water
augmentation sources available, the City
manages water supply risk through
redundancies designed into the City’s water
transmission and distribution system. The
system is designed as a network so that if
one source of water or zone is damaged,
water can be supplied from another area of
the City. Additionally, most areas within the
service system are served by more than one
source, thus limiting dependence on a single
supply source.

Nearly all source water sites are equipped
with emergency back-up generators and fuel
tanks that will keep the system operational
during emergencies for at least one to three
days depending on the site; this time can be
extended indefinitely by refilling fuel tanks.

8.11.4. Additional Mandatory Restrictions
As discussed in the Demand Reduction
Actions, in a severe water shortage, the City
may implement mandatory restrictions. The
City may also change the Demand Reduction
Actions as necessary to address water supply
shortages.

8.11.5. Emergency Response Plan
The City addresses emergency response
planning through the 2020 City of
Watsonville Local Hazard Mitigation Plan,
Water Emergency Response Plan (ERP), the
Risk Assessment Summary Report for City of
Watsonville (Risk and Resilience Report) and
other periodic vulnerability assessments,
and education and training:
• The 2020 City of Watsonville Local
Hazard Mitigation Plan (LHMP) was
formulated to identify hazards of
concern; develop a public outreach
strategy; identify critical facilities;
perform and review risk and
vulnerability assessments; develop
mitigation actions; integrate
Community Rating System (CRS)
credits; and develop a plan for
monitoring, maintenance, and
evaluation. Critical facilities included
water system assets. The LHMP
addressed a multitude of hazards,
including climate change, dam
failure, drought, earthquake (seismic
risk), flood, high winds, landslide,
liquefaction, and wildfire.
• The ERP is being developed to
address planning and response to
potential emergencies, including

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earthquakes, flooding, and wildfire.

As an example, earthquake planning
included:
o Planning: Review agreements
and contracts with other
agencies and vendors, reach
out to Emergency
Management Agencies (Fire
Department, Police
Department, Sheriff’s
Department, and California
Highway Patrol, etc.), check
equipment, and conduct
incident response drills.
o Updating Seismic Risk
Assessment and Mitigation
Plans: Review maintenance
procedures to defend against
potential damage, add new
facilities as necessary,
remove decommissioned
facilities, and update
procedures for changing field
conditions. Conducting
Earthquake Drills.
• The Risk and Resilience Report and
other vulnerability assessments
review risks to water infrastructure,
identify the highest priority assets,
and establish a plan for risk reduction
through redundancies and/or
hardening/protection of high value
assets.
• Education and training of City
employees and City Council
members for emergency planning
occurs on an ad hoc basis, often
following Federal, State, and County
funding and course availability. State
and National trade associations—
such as the American Water Works
Association, Water Environment
Federation, and American League of
Cities, to name a few—also provide
staff with valuable training
opportunities via conferences with
continuing education credits.

8.11.6. Shortage Response Action
Effectiveness
In the event of a shortage, shortage action
effectiveness will be reviewed monthly and
compared to same month water demand in
previous years. If conservation measures are
not meeting the goals established in Table

8.2, the City may, at its option, implement
additional Demand Reduction Measures,
including those from higher shortage levels.

8.12. COMMUNICATION PROTOCOLS
External communications related to this
WSCP are generally done for the following
reasons:

1. General – educational, financial,
regulatory, etc.

2. A change in water shortage level
(Current Shortage) or a statewide
emergency conservation
requirement

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3. An expected future water shortage
level (Predicted Shortage)

4. Emergency (e.g., a sudden drop in
water supplies/water pressure)
Expected communications approaches that
will be used for each category of
communications are listed in
Table 8.4.

Table 8.4 Short-Term Supply Augmentation and Other Actions General
Current
shortagechange in
shortage
Level
Current
shortagechange in
stage
Level
Predicted
shortage Emergency
Social Media and City Web Site     
Sandwich Boards and Electric
Signage in Affected
Neighborhoods

Press Release (Radio, Television,
and Newspaper)
  
Bill Inserts  TBD  
Written and Phone Alerts to PV
Water
  
Written Alert to State and Local
Government, if required
    
Community Center/School
Outreach/Field Trips
    
Community Events/Festivals     
Each change in Water Stage Level (that is,
from Stage 1 to Stage 2) will precipitate a
new round of communications to alert
customers and other affected parties of
current or predicted water shortages. A
change in Water Shortage Level will likely
require State notification. To avoid
confusion, the public may not be notified of
a change in Water Shortage Level unless the
Water Stage Level also changes. Additional
communications may occur as appropriate.

When a communication alert is triggered by
a Current Shortage or Predicted Shortage,
the Public Works Director shall initiate and
ensure completion of the appropriate
communications.

8.13. COMPLIANCE AND ENFORCEMENT
Public Works and Utilities Customer Service
enforce the City’s water conservation
regulations. Initial enforcement is focused
on soliciting cooperation from water
customers who are unaware of the
restrictions or have failed to comply. If
discussions with the customer are
unsuccessful in obtaining compliance, the

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City’s Municipal Code includes fines,
doubling of water rates, and as a last resort,
discontinuance of water service (City
Municipal Code 6-3).

Reports of water wasting in the City service
area are handled by the Customer Services
Division through a “hotline” via email and
phone. Customer Service Technicians are
dispatched to respond to reports of water
waste and other violations. City staff offers
free technical assistance to customers to
help address water wasting. If measures are
not corrected, notices of violation are issued
and a timeline is given to correct the water
wasting. Fines are implemented for chronic
offenders.

Customers can appeal under City Municipal
Code 6-3.702 – Appeals to the City Manager:

Any person affected by any administrative or
compliance order, cease and desist order,
emergency suspension, or termination of
service, may file a written appeal to the City
Manager. Notwithstanding any other
provision of this Code, this appeal must be
filed with the City Manager within ten (10)
calendar days of the date of service of the
order or of the suspension notification, or
the date of service termination. The City
Manager shall provide notice and shall hear
the appeal and render a decision no later
than thirty (30) calendar days from the date
of submission of the appeal to the City
Manager. Failure to submit an appeal to the
City Manager within the ten (10) calendar
days of the date of service shall be
considered a waiver of the right to appeal
and the person shall be required to comply
with all requirements immediately. The City
Manager’s decision in such matters shall be
final.

8.14. LEGAL AUTHORITIES
The City’s Municipal Code provides the legal
authority to implement this Water Shortage
Contingency Plan through Section 6-3.202 of
the City’s Municipal Code:

In order to conserve water and lessen the
impact on limited water resources, it is
necessary that the City implement water
conservation programs and rate structures
that provide incentives to conserve and
prevent waste of water.

The City will declare a water shortage
emergency whenever it finds and
determines that without additional
conservation measures, the ordinary
demands and requirements of its water
consumers could deplete water supply to
the extent that there could be insufficient
water for human consumption, sanitation,
and fire protection.

In addition, the City will coordinate with any
city or county within which it provides water
supply services for the possible
proclamation of a local emergency under

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California Government Code, California
Emergency Services Act (Article 2, Section
8558).

8.15. FINANCIAL CONSEQUENCES OF WSCP
The City’s water rates are designed to fully
fund ongoing annual costs and maintain an
adequate reserve. Water rates are
composed of a flat fee and tiered per-unit
fee for water consumed for residential
customers. Nonresidential customers pay a
uniform rate for each volume of water used.

Development of the City’s water rate
structure included the potential for reduced
water consumption due to drought
conditions. The rate structure was designed
to generate sufficient revenue to support
ongoing water enterprise fund costs with
reduced water use and the ongoing water
conservation practices and programs that
the City is implementing.

During the Statewide Drought Emergency
declared in 2014, the City imposed
mandatory water restrictions. Due to proper
rate structuring, this did not produce a
negative financial impact. However, a severe
water shortage resulting in a water demand
decrease of more than 20 percent and
lasting more than a year would likely
precipitate the need for a new rate study
and potentially increased rates.

In addition to the rate structure, the City
may prohibit excessive water use by
residential customers. During a local drought
and/or statewide, regional, or local drought
emergency, the City may establish
fines/excessive use charges. Excessive use is
identified through water meters. Under
State law, Chapter 3.3 (commencing with
Section 365) of Division 1, a fine may include,
but is not limited to, “up to five hundred
dollars ($500) for each hundred cubic feet of
water, or 748 gallons, used above the
excessive water use threshold established by
the urban retail water supplier in a billing
cycle.” Excessive use fines are not expected
to provide significant revenue.

8.16. MONITORING AND REPORTING
Under normal water supply conditions,
automated flow meters and a computer
network record potable water production
figures continuously; these records are
periodically reviewed by the Water
Operations Manager. Irrigation use for the
City’s largest landscapes is monitored
monthly by Parks staff and annually by the
Water Conservation program using the
landscape water budget.

During a supply shortage, staff will continue
to monitor water use on at least a monthly
basis to determine the effectiveness of the
WSCP’s water use restrictions.

The State Water Board is updating
regulation for monthly reporting of water
production and other water uses, along with
associated enforcement metrics. As

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necessary, the City is prepared to meet new
reporting regulations and update this WSCP
for monitoring and reporting requirements.

8.17. WSCP REFINEMENT PROCEDURES
The City will review its WSCP during any
change in Stage Level, and more often as
necessary, to ensure that its shortage risk
tolerance is adequate and that appropriate
water shortage mitigation strategies are
implemented as needed. The Public Works
Manager or the Water Operations
Supervisor may instigate a revision to the
WSCP at the request of City staff, Council, or
residents, as appropriate.

8.18. SPECIAL WATER FEATURE

DISTINCTION
Swimming pools and spas are considered a
separate category from water features, such
as ponds, lakes, waterfalls, and fountains. As
noted in Table 8.2, water use for decorative
features, such as fountains, is prohibited
during Stages 2 through 4.

There are no plans to supply reused water
for special water features; there is more
than sufficient demand by agriculture for
reused water.

8.19. WSCP ADOPTION, SUBMITTAL, AND

AVAILABILITY
The CWC requires that the WSCP be made
available for public review within 30 days
after adoption of a new or revised plan;
however, this WSCP was made available
before adoption. On June 8, 2021, and June
15, 2021, the City informed the public via the
local newspaper, the Santa Cruz Sentinel,
that the 2021 WSCP and the 2020 Urban
Water Management Plan (UWMP) were
available for review. The City also informed
the following agencies:
• Pajaro Valley Water Management
Agency
• Santa Cruz County
• Aromas Water District
• Community Foundation Santa Cruz
County
• Pajaro/Sunny Mesa Community
Services District
These notifications also included the date of
a public hearing, June 22, 2021, the location
and time, and encouragement of the public’s
participation. In addition, the City’s website
offered the same information.

The Public Hearing and subsequent City
Council adoption of the WSCP and UWMP
were held on June 22, 2021.

The WSCP will be submitted to the California
State Department of Water Resources by
July 1, 2026 A copy of the WSCP will be made
available to the public and the Santa Cruz
County within 30 days after this submission.

2025 URBAN WATER MANAGEMENT PLAN
2025 WATER SHORTAGE CONTINGENCY PLAN
June 23, 2026

CITY OF WATSONVILLE

2025 Urban Water Management Plan
 Demonstrates reliable supply of water
 Highlights responsible water practices
 Allows the City to compete and be eligible for
Grants

Plan Overview
 Service Area
 Water Sources and Supply
 Water Quality
 Water Use
 Climate Change
 Conservation Measures
 Water Shortage Contingency Plan

 Includes Watsonville,
Corralitos, Freedom,
Pajaro Dunes
 65,000 customers
Service Area

Water Sources and Supply
 Groundwater
 Surface Water
 Reservoirs
 Recycled Water for Agriculture

Water Quality
 Water quality will meet
all requirements set forth
by the State Division of
Drinking Water.
 Cr6+, PFAS

Water Use
 City already meets the
State per capita goals for
our region.
 City already achieved
20% water reduction
targets set for 2020.

Climate Change
 Drought
 Flood
 Wildfire
Image courtesy of Pajaro River Watershed Resilience Program

Conservation Measures
 Plumbing retrofits
 Water audits
 Landscape conservation programs
 Washing machine rebates
 Education (Public/School)
 Commercial conservation
 Toilet replacement

Water Shortage Contingency Plan
 City’s response to potential water supply shortages

2025 UWMP and WSCP
 Staff recommends that the City Council adopt the
2025 Urban Water Management Plan and the
2025 Water Shortage Contingency Plan

 Questions?
 Thank you

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, June 23, 2026
TO: CITY COUNCIL
RECOMMENDED BY: ADMINISTRATIVE SERVICES DIRECTOR DURAN
APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: RECOMMENDED BUDGET PLAN FOR FISCAL YEAR 2026-2027 RECOMMENDATION:

Staff will present the proposed Budget Plan for Fiscal Year 2026-2027 for your consideration and direction.

We are also recommending updates to select fees and reintroduction of certain fees that were omitted from the fee schedule previously presented to City Council.

It is recommended that the City Council and Successor Agency and Successor Housing Agency Boards of the City of Watsonville review the proposed FY 2026-2027 Budget Plan and take the following actions and any appropriate motions:

DISCUSSION:

Appropriate motions:

The City Council and Successor Agency and Successor Housing Agency Board of the City of Watsonville will consider the following actions at its June 23, 2026, meeting:
1) Approve a resolution adopting the Fiscal Year 2026-27 Budget, including the associated transfers of funds, and approve the Five-Year Capital Improvement Program and position changes as highlighted and summarized in the staff report. 2) Resolution establishing the “Total Annual Appropriations” pursuant to State Constitution Article XIIIB for Fiscal Year FY 2026-27 (Proposition 4 GANN spending limit) 3) Ordinance instructing Santa Cruz County to levy and collect property tax on taxable property within the City of Watsonville for the fiscal year beginning July 1, 2026, to June 30, 2027, at the levy rate of

0.077% and allocating proceeds to the Retirement Fund
4) Successor Housing Resolution authorizing the expenditure of low and moderate-income housing funds.

2 5) 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. 6) Approve a resolution adopting various rates and fees. 7) Approve a resolution authorizing the purchase of (1) Smeal Type 1 Engine for Watsonville Fire Department through the National Joint Powers Agreement, in the amount not to exceed $1,353,359.08. Directing the City Manager to execute the purchase agreement with Fire Apparatus Solutions.
8) Approve an ordinance increasing the compensation for each member of the City Council from $1,679.50 to $1,729.59 and Mayor from $2,099.37 to $2,159.48, per month, which includes a $10 per month contribution by the City for life insurance benefits, as permitted by Government Code Section 36516.

Budget appropriations for fiscal year 2026-27 are $311,429,389, including $136,820,195 dedicated toward capital improvement projects. This budget represents a continuation of investment made by the Council last year in providing high-quality services, while reflecting comprehensive budget strategies including revenue enhancement, careful spending reductions, government efficiencies, and management of liabilities and reserves. The City is in its second year of a 2-year budget plan. This report was prepared to provide new and updated information and to allow for an expedited budget review and adoption process, including the February mid-year review. It includes 419.50 full-time equivalent (FTE) positions across 12 departments, providing a range of public safety, infrastructure, and support services. The City was awarded the Distinguished Budget Presentation award for our FY 25/26 and FY 26/27 biennial budget. This recognition reflects our commitment to transparency and long-term planning.

This draft budget has been updated to reflect the results of the recently completed utility rate study for our utility enterprise funds. Revenue projections have been adjusted to align with the study’s recommendation and updated financial forecasts. We have also reduced planned carryforward appropriations in the Landfill Closure Fund for projects that no longer require funding to be carried forward into the upcoming fiscal year. The proposed changes are detailed in attachment 4.

The budget aligns with the City Council’s strategic priorities and goals while continuing to support the well-being of our community through a wide array of essential services and programs. The budget reflects a commitment to maintaining core services, promoting long-term financial stability, investing in infrastructure, and enhancing residents' quality of life. This is a balanced budget that maintains Councilapproved reserves.

Table 1: Fiscal Year FY 2026-27 Budget Summary

3 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 the next fiscal year. The Charter requires the budget to include:
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 expenditure is recommended by the City Manager for each office, department, or agency for the year that 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 Council the authority 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
The proposed General Fund Budget for the next fiscal year totals $116,015,447, which includes $51,223,531 dedicated to capital improvements. The capital investment next year includes grant and bond funds totaling $30,211,987. We have reviewed the previously budgeted revenues and expenditures presented in our biannual budget for FY 25/26 through FY 26/27. In FY 26/27, despite increases in revenue, our operational expenditure exceeded revenue growth. The city experienced increased revenues exceeding the originally budgeted biannual amount by approximately $3.8MM.

Ongoing operational costs rose by $3.9MM. We balanced the budget by increasing revenues and controlling costs. We are proposing a balanced budget for your consideration.

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 2025, those were provided

4 assuming a CalPERS investment return rate of 6.8%. However, the revised amount now payable for the upcoming fiscal year is based on the investment rate of return of 9.3%. This worked in our favor and resulted in a lower payment than expected next fiscal year, with an increase of $0.5MM, or 6.8% from last fiscal year. The annual payment on the Unfunded Actuarial 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. Unfunded PERS liability costs are expected to remain high through 2032. At which point, there should be some relief, as the Public Employees’ Pension Reform Act (PEPRA) formula provides some relief in costs. We also saw higher costs in contract services, which include the Animal Shelter and 911 Joint Powers Authority (JPA), increased costs, as well as the addition of the Regional Interoperable NextGeneration (RING) Radio System Initiative, for public safety. The total City’s share, including capital, operations and maintenance is about $5.6MM, or roughly 9% of the total cost. In this current fiscal year, the new cost was $83k, however it is expected to range within $334k to $543k in the next five fiscal years. This added cost will create additional budget pressure.

Revenues:

The following chart illustrates the composition of revenues in the general fund for FY 2026-27.

Chart 1: General Fund Revenues by Type for Fiscal Year 2026-27 Sales Tax – The category of Sales Tax represents 34% of General Fund revenues, which is now the largest revenue source following voter approval 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.

5 Over the past few years, sales tax has experienced robust growth. In this upcoming fiscal year, car sales are expected to be the primary driver of growth in this revenue source. We are expecting an increase of 7 percent over the collections of fiscal year 25/26. The table below shows the City’s share of the County’s 9.75% sales tax:

Table 2: Breakdown of County of Santa Cruz sales tax.

Property Tax- We are budgeting base property tax to be 3.8% higher than the estimated collections for FY 2026-27 resulting in a total of $16,626,472. Property taxes are collected based on County Assessor rolls that were formally closed in January of 2026. Although Prop 13 limits annual assessed value growth on existing properties, local property tax revenues are projected to grow by 4.5% because of property sales and reassessments.

Hotel Tax – Hotel tax represents a relatively smaller proportion of the City’s overall revenue mix. Hotel Tax is projected to remain flat in the next fiscal year 2026-27.

Utility User Tax- Utility User Tax represents about 10% 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 growth of 8% in the next budget year.

Community Development Department Revenues – The Community Development Department recently completed a fee study, and we are monitoring revenues the first half of the fiscal year. We are optimistic that this may lead to higher revenue projections. We will be reporting back our review of fees at the mid-year budget review. Additionally, the department is currently experiencing a high workload due to two major projects: the General Plan update and the Housing Element. The general plan update revises the community’s long-term development vision, while the housing element specifically addresses housing needs and policies.

6 Parks and Community Services Revenues – Revenues for the Parks and Community Services Department are projected to remain relatively flat. Ramsay Park, including the renovated Family/Nature Center, is scheduled to reopen towards the end of 2026. It is anticipated that the sports fields and the Center will begin to generate new revenue in 2027 through programs and rentals; the extent of this is difficult to predict. Most programs that were located at Ramsay prior to construction were relocated and may see a bump in participation as they return to the newly renovated park. The new synthetic turf field and lights on the natural turf field will bring additional rental opportunities beginning in spring 2027. Some of this new revenue may be offset by the loss of rental revenue from joint-use school sites as PVUSD begins managing them in-house in July 2026. The rental space at the Family Center will also be 50% smaller as the new Nature Center is constructed within the facility, making it difficult to predict how popular it will be as a rental venue.

Other smaller General Fund revenues have remained relatively stable, and we currently do not anticipate significant fluctuations. We will continue to monitor trends throughout the fiscal year, but current budget projections remain consistent with expectations. This includes items like business licenses and parking permits, franchise fees, lease revenues, and interest. Each item was analyzed separately.

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 Department FY 2027 Budget FY 2026 Bugdet Difference
Property Tax 16,626,472 15,661,030 965,442
Sales Tax-General 22,217,791 20,705,313 1,512,478
Hotel Room Tax 1,610,000 1,610,000 -
Utility User Tax 5,100,000 4,532,000 568,000
Transfers In 4,624,507 4,487,890 136,617
Other Taxes 1,527,000 1,523,000 4,000
Total Taxes and Transfers 51,705,770 48,519,233 3,186,537 CDD 1,885,400 1,706,400 179,000
Police 1,698,117 1,707,297 (9,180)
Fire 509,592 509,592 -
PW 337,000 362,000 (25,000)
PCS 874,163 875,163 (1,000)
Other 8,476,899 8,048,449 428,450
Total General Fund Revenue 65,486,941 61,728,134 3,758,807

7 assets set aside to fund those obligations. Though this is still a major driver for the increased costs, salaries and insurance costs have also seen steep increases. We received a 10% increase in Worker’s Compensation, Liability and Health Insurance. The City has demonstrated prudent fiscal planning, and we have remained focused on maintaining reserves and anticipating future needs.

Salaries– Salaries and benefits make up 75% percent of General Fund operating expenditures, and therefore our budget is largely driven by personnel costs. As a result, salaries and benefits have a significant impact on the overall budget. The proposed budget reflects contractual salary increases for all our bargaining units; rising CalPERS contribution rate increases and continued growth in healthcare costs.

Unfunded Actuarial Liability (UAL) – The City’s UAL costs pose an ongoing challenge. In the upcoming FY 2026-27 UAL costs will represent 13% of the general fund operating budget. The total of $7.823 MM represents a $497k increase from the prior year. Pension costs remain a significant long-term budget pressure. Costs are projected to increase every fiscal year until about 2032. At which point, there will be some relief because of a new retirement formula the City implemented in FY 2013, known as 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 MM 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. Over the last 2 fiscal years we have generally had healthcare premium increases of over 10% annually. The premiums have increased due to higher prescription costs, labor shortages in healthcare and inflation impacting the overall health system.

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. The City is also planning on joining the Regional Interoperable Next-Generation (RING) Radio System Initiative, which is a countywide partnership among the County of Santa Cruz, the four incorporated cities (Santa Cruz, Capitola, Scotts Valley, and Watsonville), and University of California Santa Cruz (UCSC). The goal is to replace an aging and fragmented public-safety radio network that serves law enforcement, fire, emergency medical, public works, and field operations throughout the region. The total City’s share, including capital, operations and maintenance, is about $5.6 MM, or roughly 9% of the total cost. The annual payment ranges from $82,873 to $543,264 annually.

Select Department Changes
All departments are impacted by the citywide impacts described above. Table 4 shows the proposed General Fund operating budget by department.

Table 4: General Fund Operating Budget by Department

8 Below is the graph that shows the breakdown of the General Fund expenditures:

Chart 2: General Fund Expenditures by Department for Fiscal Year 2026-27

9 Chart 3: General Fund Operational Expenditures by Type Approximately 75 percent of the City of Watsonville’s operating revenues are allocated to personnel costs across all departments. We provide essential public services through our workforce, the largest share supports Public Safety services, followed by Parks & Community Services and lastly the City’s Internal Support Departments. However, it also means that the budget is highly sensitive to increases in labor-related costs and benefits.

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 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 on ways to leverage resources to better serve 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. There are 12 departments in the city, 10 of which are supported by general revenues, such as taxes, charges for service, departmental revenues and grants.

Five Year Outlook

10 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, economic conditions change, new priorities arise, and decisions are made to keep the City’s budget in balance. Table 7 reflects the General Fund’s five-year outlook with major assumptions described below.

Table 6: General Fund Five-Year Outlook
Property Tax: Based on historical averages, we are projecting a 3% increase in each of the next years.

Sales Tax: FY 2026-27 sales tax is expected to increase by 3% over the last fiscal year. In the years beyond the current proposed budget, we have received estimates from our sales consultants for our percentage growth, assuming normal growth.

Other Non-Department and Departmental Revenues: Are projected to grow between 1% and 2% in each of the out years, assuming a normal level of inflation.

Salaries: In the last three years, we assume salaries have grown very gradually, at 3%.

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 10% 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 5% for Water, 16% for Wastewater, and 2% for Solid Waste.

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

Capital Plan- In our 5-year capital plan, we are budgeting capital just over $20 MM in General Fund and Measure R in FY 2026-27. The City has quite a bit of unfunded capital needs, including building and facilities repairs and street repairs. We continue to look for outside funding sources to meet those needs. However, budgeting a realistic amount of capital to maintain our facilities is imperative to preventing projects from becoming larger and more expensive replacement projects.

Select Special Revenue Funds
Table 7: Select Special Revenue Funds
Library Fund
The Library Fund is supported through a county levied special sales and use tax and general fund. It is anticipating modest revenue growth, however, increases in personnel related expenses continue to outpace those revenues. While the Library Fund is currently projected to use fund balance to support operations, this is primarily driven by two factors. Revenues have been relatively flat in prior years, and the City is in the final year of a repayment obligation to the County, which has placed additional pressure on the fund. Staff will continue to closely monitor the Library Fund throughout this fiscal year to minimize the use of fund balance.

Measure Q

12 This measure is a new parcel tax that provides dedicated funding to support (this is an excerpt from the measures permitted uses);
 Establishment, repair, construction, or maintenance of safe and clean parks.  Establishment, repair, construction, or maintenance of river parkways and other trails, restrooms, picnic areas, and public recreation facilities.  Park cleanliness, beautification, and litter removal.  Equitable access to nature through increased mobility and public transportation services to local parks.
 After school and recreation programs, including sports and aquatic facilities, senior citizens programs, and high-quality environmental education and cultural programs.  Visitor services for parks and open space preserves to protect natural resources, enhance visitor safety and enjoyment, and support volunteerism and environmental education However, we are currently facing uncertainty with Measure Q Funds. An initiative recently circulated by the Howard Javis Taxpayers Association and called “Save Prop 13” which appears to have received enough signatures to be placed on the November 2026 ballot. The signatures are still being verified. The initiative will have the name California Two-Thirds Vote Requirement for Special Taxes and Charter City Real Estate Transfer Tax Prohibition Initiative (25-0006A1) on the ballot.

In 2017, the California Supreme Court ruled in CALIFORNIA CANNABIS COALITION V. CITY OF UPLAND that citizen-initiated tax measures only need 50% vote +1 to pass, not the two-thirds threshold usually required for special taxes. Since then, several property-based taxes have passed with less than 2/3 because they were citizen-initiated. The initiative expected to be on the November 2026 ballot would invalidate those taxes as of December 31, 2028.

If successful, the ballot measure would require the governing body to approve new taxes by two-thirds vote. Measure Q 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 the voters would reapprove a new tax measure. The threat of losing this revenue kept us from preparing an expenditure plan for this new revenue stream. It is projected that the City will receive $457k in the budget year. If this revenue measure is not repealed, we will return with a proposed expenditure plan at midyear.

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.

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. Measure Y revenues are projected to remain stable and continue supporting voter approved community priorities. The proposed budget focuses on maintaining core funding and maintaining core services. This tax allows Fire, Police and Parks departments to increase their expenditures on their respective operating budgets. The Fire and Police Department can fund

13 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.

Select Enterprise Funds
The Utility Enterprises Funds of Wastewater, Water, and Solid Waste continue to take a comprehensive approach to long term financial and infrastructure planning through the development of a five-year capital improvement plan that aligns with the recently adopted rate study. The revenue projections have been revised to reflect the rates approved through the recently adopted rate study for all the utility enterprise funds. These planning efforts helps ensure that future utility revenues are strategically invested into maintaining reliable services, addressing aging infrastructure and meeting regulatory requirements. Key projects over the next five years include critical water, wastewater and system reliability upgrades. Replacing the Cogen, Headworks, the Main Switchgear and Energy Recovery Electrical System Improvement, and Chromium 6 and are largest cost drivers for these increases in spending for the Enterprise Funds.

The Airport Fund is supported through three revenue streams, leasing 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 budget continues to prioritize the safe and reliable operation of airport facilities while balancing ongoing maintenance, operational cost and long-term capital needs.

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 0710 0720 0730 0740 0741
Projected Resources 2026-27

WASTE WATER WATER AIRPORT SOLID WASTE LANDFILL

CLOSURE
Enterprise
Total
Revenues 58,506,314 32,836,797 4,863,663 20,871,365 - 117,224,989 Transfer In - - - - 250,000 250,000
Total Gross Resources 58,506,314 32,836,797 4,863,663 20,871,365 250,000 117,474,989 Operations 19,900,403 19,352,976 4,597,396 17,835,415 200,000 61,963,434 Capital 40,586,884 21,121,201 677,035 4,737,530 100,000 67,222,650 Transfer Out 103,785 18,354 5,056 275,446 402,641
Debt Service -
Grand Total 60,591,072 40,492,531 5,279,487 22,848,391 300,000 129,588,725

14 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.

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 align 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.
5) Table 9: Capital Improvement Program by Funding Source

15 General Fund
Based on the above criteria, the General Fund new funding is $11.5MM in FY 2026-27, this number includes a public safety fire engine, police cars, fence and street repair work. The total General fund’s capital expenditure is about $51.2MM, this includes grant funds and bonds in the amount of $30.2MM.

Most of the carryforwards budget is for Parks projects this year, particularly Ramsay Park which is slated to open in October 2026 and has been under construction since 2024. The project will include a full-sized turf soccer field, proposed trail, picnic areas, and an all-inclusive playground amongst many other improvements.

16 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
Next year, the largest capital investment will be in the Wastewater Treatment Facility Plant (WWTF), where the budgeted projects focus on replacing critical aging infrastructure. Replacing our Headworks and Influent Pump Station, estimated at a total cost of $37MM will begin, however there is only $2MM budgeted for the next year. We have secured a low interest loan aimed to spread the costs over time.

The WWTF receives all sewage collected throughout the City and three surrounding sewer Districts within the service area. Headworks provides initial pumping, screening, and treatment of raw sewage and is a critical component of the treatment process. The WWTF's existing headworks structure suffers from severe concrete corrosion that is beyond the point of repair. The existing influent pump station has similar concrete corrosion, and the electrical equipment that provides power to these processes is over 35 years old and at the end of its useful life. This project will replace the existing Headworks station process.

We will also begin work on replacing cogeneration equipment. The WWTF cogeneration engine has reached end of useful life requiring replacement with a new energy recovery technology to convert digester gas into electricity. The energy savings can be leveraged to address additional critical facility improvements including dewatering, digester mixing, and aeration improvements. This project is estimated at $20MM. Finance is working on issuing a low-cost loan to the project, allowing the City to spread the costs over time and reduce the immediate financial impact.

The main electrical switchgear and backup generation system that provides power and emergency backup power to all equipment in the wastewater treatment plant is reaching the end of its service life. The estimated budget for this project is $6MM. This critical equipment was identified in the WWTF Hazard Assessment as vulnerable to flood and seismic hazards. This project will replace this critical equipment and mitigate against future flood or seismic hazards so the WWTF will continue to provide safe and effective wastewater treatment for the communities it serves.

Water Fund
Among the top projects is the launch of the Chromium 6 treatment plant, marking an important step toward improving water quality. 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 ensure long-term regulatory compliance.

17 Also proposed are projects such as repairs and improvements to reservoirs, water meter main replacements and various other projects.

Solid Waste
The Solid Waste capital program this next fiscal year is largely driven by the costs purchasing of new collection vehicles, these trucks experience extremely heavy wear and tear from daily operations. A total of $1.9MM is budgeted for this purpose.

Transportation
One of our top capital projects continuing next fiscal year is a pedestrian safety project focused on improving conditions and enhancing safety for those traveling on foot. The City was awarded an Active Transportation Program grant and is budgeting the amount of $10.5 MM for the widening of the bridge at Pajaro Valley High School, which currently serves 1,500 students, many of whom walk to school. The benefit of the bridge widening will be to create a safe space for pedestrians and bicycles that is separated from vehicle traffic by a concrete barrier. Additional pedestrian safety work will be done at various school intersections, which includes upgrading curb ramps and adding high visibility crosswalks.

Green Valley Rd. (between Melwood Way and Pennsylvania Drive) striping will be upgraded to add buffered bike lanes. The schools include Pajaro Valley High, Freedom Elementary, Rolling Hills, Starlight Elementary, Hyde Elementary, Cesar Chavez and Landmark School.

Fees
We are also proposing revisions to certain fees, including reinstatement of fees that were not included in the previous fee schedule presented to the Council. The proposed fees are as follows:
a. Police Department:
a. Class B: Medium rig tows for vehicles under 6,000 pounds to 20,000 gross vehicle weight – Proposed: $400
b. Class C: Big rig tows for vehicles 20,000 pounds or larger gross vehicle weight – Proposed:
$510
b. Finance Department:
a. Garage/Yard Sale Permit - Proposed: $36
c. Airport:
a. Rename Commercial Operator Permit Fee (per event) to Aeronautical Commercial Operator Permit Fee (per event) – Current $154. Proposed: No Change b. Rename Commercial Aeronautical Activities Permit Fee (per event) to Non-Aeronautical Commercial Operator Fee (per event) - Current: $150. Proposed $200 c. Rename Commercial Aeronautical Activity Permit (annual) to Commercial Aeronautical Activity Permit (SASO annual) – Current: $200. Proposed: No Change d. Add Airfield Access Credentials – C. Key Fob, Initial Issuance – Proposed: $50 e. Airfield Access Maintenance Fee (annual) – Current $50. Proposed: $109 d. Community Development Department (Building/Planning/Engineering)

18 a. Technology Surcharge 5% applied to Building/Planning/PW Engineering fees b. General Plan Update Surcharge – 13% applied to Building/Planning/PW Engineering fees In Closing
The FY 2026/2027 Budget reflects a disciplined approach to our current fiscal reality. By prioritizing sustainable financial frameworks, we ensure that our structural obligations do not displace the highquality city services that define our community’s character. This budget bridges fiscal challenges by realizing efficiencies and streamlining administration to ensure the highest value for every taxpayer dollar. Ultimately, we remain committed to preserving critical public services and customer-facing services while also incrementally advancing Council priorities.

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 23, 2026, council meeting.

That the Joint City Council, the City Council in its capacity as the Housing Successor Agency shall:
1) Budget and CIP: approve a resolution adopting the Fiscal Year 2026-27 Budget, including the associated transfers of funds and approve the Five-Year Capital Improvement Program and position changes as highlighted and summarized in the staff report.

That the City Council shall adopt the following resolutions or ordinances:
2) Gann Limit: Resolution establishing the “Total Annual Appropriations” pursuant to State Constitution Article XIII-B for Fiscal Year FY 2026-27 (Proposition 4 GANN spending limit) as shown in Attachment 2; and
3) 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, 2026, to June 30, 2027, at the levy rate of 0.077% and allocating to the Retirement Fund; and
4) Various fees: Approve a resolution adopting various rates and fees as shown in Attachment

3. These are changes to the fee schedule previously presented to City Council. 5) Purchase Order: Approve a resolution authorizing the purchase of (1) Smeal Type 1 Engine for Watsonville Fire Department through the National Joint Powers Agreement in the amount not to exceed $1,353,359.08. Directing the City Manager to execute the purchase agreement with Fire Apparatus Solutions
That City Council in its capacity as the Housing Successor Agency shall adopt:
6) Expenditures of housing funds: That the Housing Successor Agency shall adopt a resolution to authorize the expenditure of low and moderate-income housing funds for planning and

19 general administrative costs for the purpose of producing, improving, and preserving the community's supply of low and moderate-income housing; and 7) Redevelopment Project: Find that the use of taxes allocated from the Watsonville 2000 Redevelopment Project for producing, improving, and preserving the supply of low and moderate-income housing outside the project area will be of benefit to the project area.

STRATEGIC PLAN:

The current balance budget meets Strategic Plan goal 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 2026-27 spending of $311,429,389 across all City’s various funding sources.

ALTERNATIVE ACTION:

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

ATTACHMENTS AND/OR REFERENCES (IF ANY):
1) Budget 26.27 Corrections after draft budget publication, included as Attachment 4.

Attachment - Technical Changes
Budget 26.27 Corrections after draft budget publication Fund Org Object Project Description
Proposed Budget
26/27
Previous Budget
26/27 Change
0710 530 5237 SEWER SERVICE CHARGES (14,970,699.00) (14,127,992.00) (842,707.00) 0710 530 5238 INDUSTRIAL SERVICE CHARGES (2,851,562.00) (1,887,104.00) (964,458.00) 0720 596 5259 WATER SALES (16,672,654.00) (22,008,453.00) 5,335,799.00 0720 596 5294 WATER SALES-COMMERCIAL (4,980,143.00) - (4,980,143.00) 0740 570 5864 WASTE DISPOSAL - DROP BOX (20,621,365.00) (20,581,346.00) (40,019.00) 0741 576 6510 OPERATING TRANSFERS IN (250,000.00) (1,011,401.00) 761,401.00 Total Revenue Changes (60,346,423.00) (59,616,296.00) (730,127.00) 0741 915 7813 14573 LANDFILL GAS WELLS - 101,876.00 (101,876.00) 0741 915 7855 14643 LANDFILL PROPERTY IMPR - 200,000.00 (200,000.00) 0741 915 7855 15042 LANDFILL CLOSURE - 159,525.00 (159,525.00) 0741 915 7855 15042 Landfill Closure - 250,000.00 (250,000.00) 0741 915 7855 14643 LANDFILL PROPERTY IMPR - 100,000.00 (100,000.00) 0740 912 7855 14643 LANDFILL PROPERTY IMPR 100,000.00 - 100,000.00 0740 570 7910 OPERATING TRANSFERS OUT 275,446.00 1,036,847.00 (761,401.00) Total New Appropriation Requests (1,472,802.00)
Grand Total (2,202,929.00)
Attachment 1

Reso No. (CM)
Reso No. (SHA)
Reso No. (SA)
Meeting Date: 062326 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 2026-2027, PROVIDING FOR CERTAIN TRANSFERS OF FUNDS,

AND APPROVING THE FIVE-YEAR CAPITAL IMPROVEMENT
PROGRAM (CIP) FOR FISCAL YEARS 2026-27 to 2030-31
WHEREAS, pursuant to § 1103 of the Charter of the City of Watsonville a proposed budget for fiscal year 2026-27 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: 062326
2 WHEREAS, on May 5, 2026, 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 2026-27 to 2030-31 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 2026-27 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 2026-2027, 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 $311.4 million for the fiscal year ending June 30, 2027.

Section 2. Approval of 2026-2027 Successor Agency Budget. That the Successor Agency for the Former Redevelopment Agency of the City of Watsonville proposed budget for 2026-2027, 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: 062326
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 $1.3 million for the fiscal year ending June 30, 2027.

Section 3. Adoption of 2026-2027 Budget. That the portion of the proposed budget applicable to the 2026-2027 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 $311.4 million for the fiscal year ending June 30, 2027, 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 2026-2027 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: 062326
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 2026-2031, attached as a part of the 2026-2027 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 ************************************

City of Watsonville Budget
Summary of the Budget
S ummary of the Budget
Fund Appropriations
Fund Appropriations
General Fund (0150) 73,989,499
Retirement Fund (0160) 4,489,000
Measure R (0201) 9,070,272
Rda_Obligation Retirement Fund (0202) 420,190
Rda_Housing (0204) 866,568
Community Dev Block Grant (0205) 1,117,700
H.O.M.E. Grants (0209) 625,914
Cal Home Grant (0210) 225,143
Relocation Revolving (0215) 70,000
Affordable Housing (0221) 152,361
Business Development (0225) 186,198
Abondoned Vehicle Authority (0245) 65,564
Civic Center Common Area (0246) 1,310,128
Library (0250) 4,970,512
Special Grants (0260) 31,305,778
Arpa Fund-American Relief Plan (0262) 57,066
Public Education Fee -Cable Tv (0265) 14,800
Special Mobile Home Fund (0266) 130,000
Public Art Fee (0274) 81,830
Park Land Impact Fee (0276) 24,120
Parks Development (0281) 8,714
Llmad-Gonzalez Street (0285) 600
Measure Q Tax (0286) 904,312
Green Building Fee (0290) 3,000
Gas Tax (0305) 2,702,962
Sb 1 - Gas Tax Funding (0306) 4,999,642
Parking Garage (0309) 195,431
Sales Tax Measure Y (0310) 6,371,410
Carbon Fund (0311) 166,000
Measure D -Transportation Fund (0312) 5,910,090
Impact: City-Wide Traffic (0340) 970,468
Exhibit A

City of Watsonville Budget
Summary of the Budget 2
Impact: East Highway 1 Area (0344) 34,134
Impact: Public Facilities (0349) 200,000
Impact: Storm Drain Improveme (0350) 470,000
Llmad (Special Districts Fund) (0354) 60,352
Manabe Ow Impact Fee Fund (0358) 190,000
Llmad Bay Breeze Special Distr (0360) 296,358
Debt Service Fund (0510) 1,588,522
Waste Water (0710) 60,591,072
Water (0720) 40,492,531
Airport (0730) 5,279,487
Solid Waste (0740) 22,848,391
Landfill Closure (0741) 300,000
Msc Internal Service Fund (0760) 3,306,270
Computer Replacement (0765) 125,000
Workers Comp/ Liability (0780) 7,189,844
Health Insurance (0787) 11,854,918
Fiber Optic Fund (0789) 77,244
Information & Technology Isf (0790) 5,108,494
Narcotics Forfeiture Award (0825) 11,500
Total Appropriations 311,429,389
City of Watsonville 310,142,631
Housing Successor Agency of the Former Redevelopment Agency 866,568 Successor Agency of the Former Redevelopment Agency 420,190 Total Appropriations 311,429,389
Fund Appropriations
Exhibit A

Ord. No. ______ (CM)
Meeting Date: 062326 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, 2026, 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, 2026, a property tax which is hereby fixed at the rate of 0.077% (pursuant to Subsection

Ord. No. ______ (CM)
Meeting Date: 062326
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. ***********************************

Retirement
System Costs
Police Department
Police PERS 1,824,528
Police PERS Unfunded Liability 3,986,249
Police Social Securiy &/or Medicare 314,456
Alternate 457 for Temporary employees 70,980
Fire Department
Fire PERS 778,727
Fire Employee PERS Unfunded Liability 2,048,051
Fire Social Security &/or Medicare 73,528
Alternate 457 for Temporary Employees 8,320
General Fund-Remaining Departments
PERS 901,528
Employee PERS Unfunded Liability 1,789,226
Social Security 809,070
Alternate 457 for Temporary employees 136,984
Administration Fee Allocation Costs -
Grand Total Needed 12,741,647
Less: Allowance for Turnover (300,000)
Estimated General Fund Pension Costs $ 12,441,647
Less: Estimated Levy Proceeds (36% of total costs) (4,486,000) Amount supported by General Fund $ 7,955,647

CITY OF WATSONVILLE
Final Retirement Tax Calculations
with Levy Rate of 0.077%
Fiscal Year 2026-27
General Fund Public Safety Departments
Exhibit A

Police Department $ 6,196,213
Fire Department 2,908,626
Other non-safety departments 3,636,808
Grand Total Needed 12,741,647
Less: Allowance for Turnover (300,000)
Estimated General Fund Pension Costs: $ 12,441,647
Estimated Levy Proceeds (37% of total costs) $ (4,486,000) Amount supported by General Fund $ 7,955,647

CITY OF WATSONVILLE
Final Retirement Tax Calculations
with Levy Rate of 0.077%
Fiscal Year 2026-27
General Fund Retirement Program Costs
Exhibit A

Reso No. (CM)
Meeting Date: 062326 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 2026-2027
[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 2026-2027 is $196,403,616; the amended budget subject to the spending limit is $45,206,909 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 2026-27
Spending Limit Calculation
[a] 2025-26 Limit 188,516,347 $
Calculation of Growth Factor
Change in Population 4.950%
Non-resident, New Const. Assessment Growth
Change in California Per Capita Person Income
[b] Growth Factor (1.0495 *0.9927) 1.04183865
[c] 2026-27 Limit ( [a] multiplied by [b] ) $ 196,403,616 2026-27 Gann Limit Proposed Spending
Proposed General Fund Spending 63,066,027 $
Less Non-tax General Fund Revenues:

Transfers In (non-tax) (4,624,507)
Use of Money and Property (4,192,524)
Fees (9,042,087)
In-lieu Charges -
Other non-tax revenue -
[d] Spending Subject to the Gann Limit 45,206,909 $
Remaining Capacity ( [d] subtracted from [c] ) $ 151,196,707

Reso No. (CM)
Reso No. (SHA)
Meeting Date: 062326
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: 062326
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: 062326
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. (SHA)
Meeting Date: 062326 SWZ ______ TV ______ Finance ______1 RESOLUTION NO. __________ (SHA)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE IN ITS CAPACITY AS THE SUCCESSOR TO THE

HOUSING ASSETS AND FUNCTIONS OF THE FORMER

REDEVELOPMENT AGENCY OF THE CITY OF WATSONVILLE FINDING

THAT THE USE OF FUNDS FROM THE LOW AND MODERATE INCOME

HOUSING ASSET FUND FOR PLANNING AND GENERAL

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

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

Reso No. (SHA)
Meeting Date: 062326 2
WHEREAS, as the Housing Successor, the City holds the former Agency’s housing funds and assets; and
WHEREAS, as required by CRL section 34176(d), the City has created among the City’s accounts a “Low and Moderate Income Housing Asset Fund” (“LMIHAF”) and has deposited the former Agency’s housing funds (and income from the former Agency’s housing assets) into the LMIHAF; and
WHEREAS, CRL Section 34176 provides that the funds in the LMIHAF may be used only in accord with the CRL’s applicable housing-related provisions; and WHEREAS, the City, as Housing Successor, proposes to expend funds from the LMIHAF for the purposes allowed under the CRL’s housing-related provisions, including for planning and administrative expenses directly related to programs and activities authorized by CRL Section 33334.2(e) and Section 33334.3(e); and WHEREAS, in accordance with CRL Section 33334.3(d), the Housing Successor may expend money from the LMIHAF for planning and general administrative activities directly associated with the development, improvement and preservation of affordable housing which is not disproportionate to the amount actually spent for the costs of the production, improvement, or preservation of that housing; and WHEREAS, CRL Section 33334.3(d) requires that the Housing Successor determine annually that the planning and administrative expenses paid for with housing funds are necessary for the production, improvement, or preservation of low- and moderate-income housing.

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

OF WATSONVILLE IN ITS CAPACITY AS THE SUCCESSOR TO THE HOUSING

Reso No. (SHA)
Meeting Date: 062326 3

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

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

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

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

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

Reso No. ______ (CM)
Meeting Date: 062326 SWZ ______ TV ______ Finance ______ 1 RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE AMENDING USER FEES FOR THE WATSONVILLE

MUNICIPAL AIRPORT, COMMUNITY DEVELOPMENT, POLICE

DEPARTMENT, AND FINANCE DEPARTMENT

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

1. This action does not meet CEQA’s definition of a “project”, because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.

2. That the City Council hereby approves the amended Rate and Fee Schedule for the Watsonville Municipal Airport, Community Development, Police and Finance Department as listed in Exhibit “B”, attached hereto and incorporated herein by this reference.

3. Fees will be adjusted annually by the Consumer Price Index (CPI) beginning on July 1, 2027, to keep the fees aligned with the increases in costs; The amount of the adjustment to the fees shall not exceed the corresponding proportional change in the April to April Consumer Price Index for All Urban Consumers in the San Francisco-Oakland-San Jose Area, published by the Bureau of Labor Statistics of the United States Department of Labor (CPI).

4. The amended fees, all fees will become effective July 20, 2026, for Airport, Police and Finance Fees and August 11th for Community Development fees, which is 60 days after final action by the City Council; and

Reso No. (CM)
Meeting Date: 062326 2

5. That the aforementioned amended fees, rates, and charges shall supersede any and all fees of the City inconsistent therewith and shall be effective immediately.
*********************************

AIRPORT
Fee Category Current Fee Proposed Fee
Aeronautical Commercial Operator Permit Fee (per event) $154 $154 Non-Aeronautical Commercial Operator Fee $150 $200
Commercial Aeronautical Activity Permit (SASO annual) $200 $200 Airfield Access Credentials - C. Key fob, Initial Issuance N/A $50 Airfield Access Maintenance Fee (Annual) $50 $109

FINANCE
Fee Category Current Fee Proposed Fee
Garage/Yard Sale Permit $0 $36
POLICE
Fee Category Current Fee Proposed Fee
Class B. Medium rig tows for vehicles 6,000 pounds to 20,000 $0 $400 Class C. Big rig tows for vehicles 20,000 pounds or larger gross $0 $510

COMMUNITY DEVELOPMENT
Fee Category Current Fee Proposed Fee
General Plan Maintenance Fee - Surcharge $0 5%
Technology Fee - Surcharge $0 13%
Exhibit B

Reso No. ______ (CM)
Meeting Date: 062326 SWZ ______ TV ______ WFD ______
1 RESOLUTION NO. (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE AUTHORIZING THE PURCHASE OF ONE (1) SMEAL
TYPE 1 ENGINE FOR THE WATSONVILLE FIRE DEPARTMENT

THROUGH THE NATIONAL JOINT POWERS AGREEMENT, IN AN
AMOUNT NOT TO EXCEED $1,353,359.08; AUTHORIZING AND

DIRECTING THE CITY MANAGER TO EXECUTE PURCHASE

AGREEMENT WITH FIRE APPARATUS SOLUTIONS, INCLUDING ANY

EXTENSIONS OR AMENDMENTS THEREOF IN ORDER TO IMPLEMENT
THIS AGREEMENT; AND AUTHORIZING THE CITY MANAGER WITH

THE ADVICE OF THE ADMINISTRATIVE SERVICES DIRECTOR AND

FIRE CHIEF, TO SIGN NECESSARY CHANGE ORDERS NOT
EXCEEDING FIFTEEN (15%) PERCENT OF THE $1,353,359.08 BASE PRICE
WHEREAS, competitive bidding requirements for the purchase of supplies, equipment and non-personal contractual services and the sale of personal property are set forth in Chapter 5 of Title 3 of the Municipal Code; and WHEREAS, subdivision (e) of § 3-5.210 exempts purchases made cooperatively with one (1) or more units of government through cooperative purchasing programs substantially the same as the City of Watsonville’s; and WHEREAS, the City and Fire Apparatus Solutions are members of the National Joint Powers Agreement (NJPA); and
WHEREAS, NJPA creates national cooperative contract purchasing solutions on behalf of its member agencies; and
WHEREAS, City staff selected this purchase because there is a Sourcewell Contract pricing being used and determined that it fits within the City’s purchasing policy process is similar to that of the City of Watsonville.

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

Reso No. (CM)
Meeting Date: 062326
2 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 approving the purchase of one (1) Smeal Type 1 Engine 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 because the action constitutes organizational or administrative activities of governments that will not result in direct or indirect physical changes 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. This purchase is exempt from the purchasing procedures of Chapter 5 of Title 3 of the Municipal Code as a purchase made cooperatively with one (1) or more units of government under subdivision (e) of § 3-5.210 of the Municipal Code.

3. That the Council hereby authorizes the purchase of one (1) Smeal Type 1 Engine and specified equipment for the Watsonville Fire Department from Fire Apparatus Solutions, through the National Joint Powers Agreement, in an amount not to exceed $1,353,359.08.

4. That the City Manager is hereby authorized and directed to execute a Purchase Agreement with Fire Apparatus Solutions, in an amount not to exceed $1,353,359.08, including any extensions or amendments thereof in order to implement this Agreement for the Watsonville Fire Department, a copy of which Agreement is attached hereto and incorporated herein by this reference, is hereby approved.

Reso No. (CM)
Meeting Date: 062326
3 3. That the City Manager with the advice of the Administrative Services Director and Fire Chief is hereby authorized to sign necessary change orders not exceeding 15% of the $1,353,359.08 base price.
****************************************

City of Watsonville Fire Department
Sales Rep: Roy Cobb
1762 South Sycamore Ave, Rialto, CA 92376
(1) Smeal Type 1 Engine
(916) 677-9837 [email protected]

$1,233,129.00 x 1 $1,233,129.00
$1,233,129.00 x 1 $1,233,129.00

9.750% $120,230.08 x 1 $120,230.08
$1,353,359.08 x 1 $1,353,359.08
Tax rates are subject to change and the tax will be determined at the time of registration. Any changes to the price will be documented on a Change Order which may increase or decrease the price during the build process.

California Tire Fee is included. FAS will register the Vehicle. Pricing is good for 34 days. Fire Apparatus Agreement and or a Purchase Order needs to be submitted to Fire Apparatus Solutions. Signature below represents agreement to the Pricing and Terms listed above.

PROPOSAL
The expected build completion time is 750 days.

This purchase will be made via the Sourcewell Contract#082025-RVG.

Pretax Total
Sales Tax @
Total Purchase
$1,353,359.08
(1) Smeal Type 1 Engine
Signing this agreement constitutes the purchase of (1) Smeal Type 1 Engine for the total cost of:

City of Watsonville Fire Department Fire Apparatus Solutions Roy Cobb 5/27/2026
Roy Cobb 5/27/2026

1 Reso No. ______ (CM)
Meeting Date: 062326 SWZ ______ TV ______ Finance ______ ORDINANCE NO. (CM)

AN UNCODIFIED ORDINANCE OF THE CITY OF WATSONVILLE

INCREASING THE COMPENSATION FOR EACH MEMBER OF THE

CITY COUNCIL, AND THE MAYOR, PER MONTH, AS PERMITTED BY CALIFORNIA GOVERNMENT CODE SECTION 36516
Amends Ordinance No. 1479-25 (CM)
WHEREAS, on August 22, 2025, the City Council enacted Ordinance No. 1479- 25 (CM), in which it increased City Council compensation. The increase comprised an increase in salary from $1,600 per month to $1,679.50 per month, which included a $10 per month contribution by the City for the provision of a term life insurance policy for all Council Members and the Mayor; and
WHEREAS, Government Code Section 36516(a)(4) provides that a city council may enact or amend an ordinance increasing compensation provided that the increase shall not exceed an amount equal to five percent (5%) for each calendar year from the operative date of the last adjustment of the salary when the ordinance or amendment is enacted, and that no ordinance shall be enacted or amended to provide automatic future increases in salary; and
WHEREAS, Government Code Section 36516(d) provides that any amounts paid by a city for retirement, health and welfare, and federal social security benefits shall not be included for purposes of determining salary, provided that the same benefits are available and paid by the city for its employees; and
WHEREAS, all Council Members and the Mayor receive a life insurance benefit that is also provided to City employees. The City pays that benefit on behalf of the Council, at a cost of $10 per month. This amount is included in the salary paid to Council Members; and

2 Reso No. (CM)
Meeting Date: 062326
WHEREAS, pursuant to City of Watsonville Charter Section 502, the Mayor shall receive an additional 25% of that amount as compensation for services as mayor.

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

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

SECTION 1. ENACTMENT.

That the salaries of the Mayor and Council Members shall be increased by 3%, from $1,679.50 to $1729.59 per month for each City Council Member, including the Mayor. These compensation amounts include a $10 per month contribution by the City for a life insurance benefit. The Mayor shall also receive supplemental compensation as permitted by Section 502 of the City Charter. These amounts shall include a $10 per month contribution by the City for a life insurance benefit for a total compensation amount of $2,159.48, increasing from the prior monthly amount of $2,099.37. All increases shall be effective December 19, 2026.

SECTION 2. RECITALS.

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

SECTION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT.

The City Council finds that this Ordinance is exempt from the provisions of the California Environmental Quality Act (“CEQA”) pursuant to Section 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines, because it will not result in a direct or

3 Reso No. (CM)
Meeting Date: 062326
reasonably foreseeable indirect physical change in the environment and is not a “project,” as defined in Section 15378 of the CEQA Guidelines.

SECTION 4. SEVERABILITY.

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

SECTION 5. PUBLICATION.

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

SECTION 6. EFFECTIVE DATE.

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

UPDATED
1 Ord No. (CM)
Meeting Date: 062326
ORDINANCE NO. (CM)

AN UNCODIFIED ORDINANCE OF THE CITY OF WATSONVILLE

INCREASING THE COMPENSATION FOR EACH MEMBER OF THE

CITY COUNCIL, AND THE MAYOR, PER MONTH, AS PERMITTED BY CALIFORNIA GOVERNMENT CODE SECTION 36516
Amends Ordinance No. 1479-25 (CM)
WHEREAS, on August 22, 2025, the City Council enacted Ordinance No. 1479- 25 (CM), in which it increased City Council compensation. The increase comprised an increase in salary from $1,600 per month to $1,679.50 per month, which included a $10 per month contribution by the City for the provision of a term life insurance policy for all Council Members and the Mayor; and
WHEREAS, Government Code Section 36516(a)(4) provides that a city council may enact or amend an ordinance increasing compensation provided that the increase shall not exceed an amount equal to five percent (5%) for each calendar year from the operative date of the last adjustment of the salary when the ordinance or amendment is enacted, and that no ordinance shall be enacted or amended to provide automatic future increases in salary; and
WHEREAS, Government Code Section 36516(d) provides that any amounts paid by a city for retirement, health and welfare, and federal social security benefits shall not be included for purposes of determining salary, provided that the same benefits are available and paid by the city for its employees; and
WHEREAS, all Council Members and the Mayor receive a life insurance benefit that is also provided to City employees. The City pays that benefit on behalf of the Council, at a cost of $10 per month. This amount is included in the salary paid to Council Members; and

UPDATED
2 Ord No. (CM)
Meeting Date: 062326
WHEREAS, pursuant to City of Watsonville Charter Section 502, the Mayor shall receive an additional 25% of that amount as compensation for services as mayor.

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

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

SECTION 1. ENACTMENT.

That the salaries of the Mayor and Council Members shall be increased by 5%, from $1,679.50 to $1,762.98 per month for each City Council Member, including the Mayor. These compensation amounts include a $10 per month contribution by the City for a life insurance benefit. The Mayor shall also receive supplemental compensation as permitted by Section 502 of the City Charter. These amounts shall include a $10 per month contribution by the City for a life insurance benefit for a total compensation amount of $2,201.22, increasing from the prior monthly amount of $2,099.37. All increases shall be effective December 19, 2026
SECTION 2. RECITALS.

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

SECTION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT.

The City Council finds that this Ordinance is exempt from the provisions of the California Environmental Quality Act (“CEQA”) pursuant to Section 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines, because it will not result in a direct or

UPDATED
3 Ord No. (CM)
Meeting Date: 062326
reasonably foreseeable indirect physical change in the environment and is not a “project,” as defined in Section 15378 of the CEQA Guidelines.

SECTION 4. SEVERABILITY.

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

SECTION 5. PUBLICATION.

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

SECTION 6. EFFECTIVE DATE.

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

LOGO
City of Watsonville
Finance Department
June 23, 2026
Proposed Budget
FY 2026-27

2 Finance Department
Appropriate Motions:

That the Joint City Council, the City C10ouncil in its
capacity as the Successor Agency and Successor
Housing Agency Board of the City of Watsonville shall
adopt the following resolutions, tonight, June 23, 2026, meeting:

Approve a resolution adopting the Fiscal
Year 2026-27 Budget, including the associated
transfer of funds, and approve the Five-Year
Capital Improvement Program and position
changes as highlighted and summarized in the
staff report.

Resolution establishing the “Total
Annual Appropriations” pursuant to
State Constitution Article XIII-B for Fiscal
Year FY 2026-27 (Proposition 4 GANN
spending limit).

Ordinance instructing Santa Cruz County to
levy and collect property tax on taxable
property within the City of Watsonville for the
fiscal year beginning July 1, 2026, to June 30,
2027, at the levy rate of 0.077% and allocating
proceeds to the Retirement Fund.

Successor Agency Resolution
authorizing the expenditure of low and
moderate-income housing funds.

Successor Housing 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.

Approve a resolution adopting various
rates and fees
Approve a resolution authorizing the
purchase of (1) Smeal Type 1 Engine for
Watsonville Fire Department through the
National Joint Powers Agreement, in the
amount not to exceed $1,353,359.08.

Directing the City Manager to execute the
purchase agreement with Fire Apparatus
Solutions.

Approve an ordinance increasing the
compensation for each member of the
City Council from $1,679.50 to $1,762.98
and Mayor from $2,099.37 to $2,201.22,
per month, which includes a $10 per
month contribution by the City for life
insurance benefits, as permitted by
Government Code Section 36516.

City of Watsonville June 23, 2026, Meeting

Budget Schedule
• June 2025 – Biennial Budget
FY 25/26 and 26/27 including
Strategic Plan Adoption
• February 2026 – Mid-Year
• June 2026 – Budget Revise for
FY 26/27

Budget Overview

General Fund

General Fund
37%
Special Revenue
Funds
12%
Debt Service Funds

0.51%
Enterprise Funds
42%
Internal
Service Funds
9%
Private Purpose
Trust Fund

0.13%
Budget by Fund

All Funds Expenditure by Category

SALARIES,

BENEFITS, &
CalPERS, $89,253,
50%

TRANSFERS
IN/OUT, $6,828, 4%

OPERATING

EXPENSES,
$83,215, 46%
All Funds – ($ IN THOUSANDS)

General Fund Expenditure by Category

SALARIES,

BENEFITS, &
CalPERS, $48,259,
75%

OPERATING

EXPENSES,
$14,562, 23%

TRANSFERS IN/
OUT, $1,582, 2%
GENERAL FUND - ($ IN THOUSANDS)

General Fund

General Fund Revenues
Department FY 2027 Budget FY 2026 Bugdet Difference
Property Tax 16,626,472 15,661,030 965,442
Sales Tax-General 22,217,791 20,705,313 1,512,478
Hotel Room Tax 1,610,000 1,610,000 -
Utility User Tax 5,100,000 4,532,000 568,000
Transfers In 4,624,507 4,487,890 136,617
Other Taxes 1,527,000 1,523,000 4,000
Total General Fund Revenues 51,705,770 48,519,233 3,186,537 CDD 1,885,400 1,706,400 179,000
Police 1,698,117 1,707,297 (9,180)
Fire 509,592 509,592 -
PW 337,000 362,000 (25,000)
PCS 874,163 875,163 (1,000)
Other 8,476,899 8,048,449 428,450
Total General Fund Revenue 65,486,941 61,728,134 3,758,807

State General Fund
$39.375
County Realignment Mental Health
$15.625
Santa Cruz
Regional
Transportation
$5
Santa Cruz
Metropolitan Transit
District
$5
Santa Cruz
Watsonville
Measure Y
$5
County Public
Safety (prop
172)
$5
Santa Cruz
Watsonville
Measure R
$3
City / County
General Fund
$10
Watsonville
Measure L
(retirement)
$3
Santa Cruz
Measure R
$5
County
Transportation
Fund
$3
For every $100 spent on a taxable purchase in Watsonville,

9.75% is collected in sales tax.

This graphic is a breakdown of that 9.75% into $100
dollars, showing where that sales tax goes. About $23
directly comes back to our City Page 1285 of 1393
Sales Tax

1% Sales Tax

Special Taxes Measure
R/Y/D/L/Library

Property Tax

General Fund Revenues

FINES, FEES, &
CHARGES , $8,476 ,
13%

OTHER REVENUES ,
$1,113 , 2%

OTHER TAXES ,
$8,237 , 13%

PROPERTY TAXES ,
$16,626 , 25%

SALES TAXES ,
$22,218 , 34%

USE OF MONEY AND
PRO , $4,193 , 6%

TRANSFERS IN/OUT ,
$4,625 , 7%
GENERAL FUND - FISCAL YEAR 2026-7
REVENUES ($ IN THOUSANDS)

General Fund Expenditures
Budget by Department
Expenditures FY 2027 Budget FY 2026 Bugdet Difference
City Council 230,062 222,385 7,677
City Manager 2,225,413 1,849,053 376,360
City Clerk 1,619,333 1,548,630 70,703
Community Development 3,123,658 2,821,973 301,685
Finance 2,202,049 2,003,388 198,661
Human Resources 1,207,808 1,099,108 108,700
Social Services 235,000 235,000 -
Parks & Community Services 9,386,896 9,294,136 92,760
Fire 9,836,679 9,434,479 402,200
Library 981,820 887,789 94,031
Non-Department 2,776,004 2,717,042 58,962
Police 26,766,445 24,974,867 1,791,578
Public Works 2,474,860 2,228,431 246,429
Total Expenditures 63,066,027 59,316,281 3,749,746

General Fund by Department
CITY CLERK , $1,619 , 3%

COMMUNITY DEVELOPMENT
, $3,124 , 5%
FINANCE , $2,202 , 3%
FIRE , $9,837 , 16%

GENERAL GOVERNMENT ,
$3,663 , 6%
LIBRARY , $982 , 2% NON DEPARTMENTAL ,
$2,776 , 4%

PARKS & COMM SERVICES ,
$9,387 , 15%
PUBLIC WORKS , $2,475 , POLICE , $26,766 , 42%
4%
SOCIAL SERVICES , $235 ,

0.37%
GENERAL FUND - FISCAL YEAR 2026-27
EXPENDITURES ($ IN THOUSANDS)

General Fund Expenditure changes

Five Year Analysis

Key Items for Balanced Budget

Other Funds
Enterprise
Funds
Internal Service
Funds
Special Revenue
Funds

Special Revenue Funds

24 Finance Department
$457
$904
0 100
200
300
400
500
600
700
800
900
1000
Projected Revenues 2026-27 2026-27 Budget
Measure Q
Projected Revenues 2026-27 2026-27 Budget
• This measure is a new parcel tax to help fund park improvements; cleanliness of parks and other permitted park uses.

• However, we are currently facing uncertainty with Measure Q Funds. The initiative expected to be on the November 2026 ballot would invalidate those taxes as of December 31, 2028.
• The threat of losing this revenue kept us from preparing an expenditure plan for this new revenue stream. It is projected that the City will receive $457k in the budget year. If this revenue measure is not repealed, we will return with a proposed expenditure plan at midyear.

Measure Q

Enterprise Service Funds

Internal Service Funds

Capital Improvement

FY27 Requests
($ in thousands)
FY 26/27 TOP PROJECTS
($ in thousands)
General Fund Requests
Tiller Truck Replacement-Council approved
purchase 06/2025 (FY27 Request)
INVESTING TODAY. BUILDING A BETTER
WATSONVILLE FOR TOMORROW.

These strategic projects strengthen essential services, enhance infrastructure, and improve qualify of life for our community. $2,217
Citywide HVAC System (FY27 Request) $800
$5,181
$0M
$2M
$4M
$6M
FY27 Requests
General Fund
FY27 Requests
$55
Law Enforcement Service Agreements (FY27
Request)
Type 1 Fire Engine Replacement (FY27
Request)
$600
Police Vehicle Replacement (FY27 Request) $446
Streets/Medians (FY27 Request)
70 Airport Blvd. Fence (FY27 Request)
Fire PPE (FY27 Request)
$405
$559
$100

FY27 Requests
($ in thousands)
FY 26/27 TOP PROJECTS
($ in thousands)
Measure R & Civic Requests
Harvest Drive Maintenance (Riverside to
West Beach) (FY27 Request) – Measure R
Fund
INVESTING TODAY. BUILDING A BETTER
WATSONVILLE FOR TOMORROW.

These strategic projects strengthen essential services, enhance infrastructure, and improve qualify of life for our community. 75 Locust Street Maintenance (Riverside to
West Beach) (FY27 Request) – Measure R
Fund
$1,650
$0M
$2M
FY27 Requests
Measure R & Civic Center
FY27 Requests
Book Mobile (FY27 Request) – Measure R
Fund
Trails (FY27 Request) – Measure R Fund
Marchant Street Maintenance (Riverside to
East Beach) (FY27 Request) – Measure R
Fund
Street Signs (FY27 Request) – Measure R
Fund
Maintenance Materials (FY27 Request) –
Civic Center Fund
75 100
250
300
320
530

FY27 Carryforwards
($ in thousands)
FY 26/27 TOP PROJECTS
($ in thousands)
General Fund Carryforwards
INVESTING TODAY. BUILDING A BETTER
WATSONVILLE FOR TOMORROW.

These strategic projects strengthen essential services, enhance infrastructure, and improve qualify of life for our community.

Ramsay Park/ City Plaza $5,916
Wayfinding - Specialized Debt
Equipment
$1,878
$574
$14,180
$0M
$5M
$10M
$15M
Carryforwards
General Fund (Includes Measure R & Civic Center)
Carryforwards
Nature Center Building $1,835
General Plan Update
Street Appropriation $451

Grants Requests & Carryforwards
$4,689
$25,523
$0M
$10M
$20M
$30M
FY27 Requests Carryforwards
Grants Fund
FY27 Requests Carryforwards
FY27 Requests Vs Carryforwards
($ in thousands)
INVESTING TODAY. BUILDING A BETTER
WATSONVILLE FOR TOMORROW.

These strategic projects strengthen essential services, enhance infrastructure, and improve qualify of life for our community.

FY 26/27 TOP PROJECTS
($ in thousands)
HWY 1/Harkins Slough Rd Pedestrian
(Carryover) $10,562
FY27 - $1,800
Carryover - $1,300
Freedom Blvd Improvement – Green
Valley to Airport – (FY27 Request &
Carryover)
Safe Routes to Downtown Watsonville –
(Carryover)
Lee Road Trail Phase 1 – (Carryover) $1,693
Lee Road Trail Phase 2 – (FY27
Request $1,000
Ramsay Park Improvement Bond
– (Carryover) $4,871
$2,251

Enterprise Funds Requests & Carryforwards
FY27 Requests Vs Carryforwards
($ in thousands)
INVESTING TODAY. BUILDING A BETTER
WATSONVILLE FOR TOMORROW.

These strategic projects strengthen essential services, enhance infrastructure, and improve qualify of life for our community.

FY 26/27 TOP PROJECTS
($ in thousands)
Cogen Replacement / Energy Savings
Project (FY27 Request) – Wastewater
Fund
$20,000
Main Switchgear and Energy (FY27
Request & Carryover) – Wastewater
Fund
FY27 - $6,000
Carryover - $9,459
Chromium 6 Treatment Plants (FY27
Request & Carryover) – Water Fund
FY27 - $2,000
Carryover - $2,041
$42,156
$25,067
$0M
$10M
$20M
$30M
$40M
$50M
FY27 Requests Carryforwards
Enterprise Funds
FY27 Requests Carryforwards
Collection Vehicles (FY27
Request & Carryover) – Solid
Waste Fund
FY27 - $1,400
Carryover - $605
Replace Headworks Diversion (FY27
Request & Carryover) – Wastewater
Fund
FY27 - $2,000
Carryover - $538

Fees
Police Department
Class B: Medium rig tows for
vehicles under 6,000 pounds to
20,000 gross vehicle weight
Fee Proposed
Airport
Current Proposed New
Name Fee
Aeronautical
Commercial
Operator Permit
Fee (per event)
Commercial
Operator Permit
Fee (per event) $154 No Change
Commercial
Aeronautical
Activities Permit
Fee (per event)
NonAeronautical
Commercial
Operator Fee
(per event)
$150 $200
Commercial
Aeronautical
Activity Permit
(annual)
Commercial
Aeronautical
Activity Permit
(SASO annual)
$200 No Change
Add Airfield Access
Credentials – C. Key
Fob, Initial Issuance
$50
Airfield Access
Maintenance Fee
(annual)
$50
$109
Community Development
New Surcharges
Technology Surcharge
General Plan Update Surcharge
5%
13%
• Building
• Planning
• PW Engineering fees
Applied to
Class C: Big rig tows for vehicles
20,000 pounds or larger gross
vehicle weight
Finance
Garage/Yard Sale Permit
Fee Proposed
$36
$400
$510

34 Finance Department
Opportunities
Pursue external funding to
support City projects and
services.

Grant Funding
Opportunities
Partnerships
Leverage partnerships to
expand resources and reduce
costs.

Economic Development
Support economic growth to
strengthen future tax
revenues.

Fee Cost Recovery
Review fees to better align
revenues with service costs.

PENSION
COSTS
UAL payments projected
to increase.

INFLATION &

INTEREST RATES
Inflation and higher
interest rates.

NEXTGEN

RADIO SYSTEM
County-wide upgrade
may add $82,873 to
$527,246 in costs over
13 years.

STAFFING
NEEDS
Departments have
additional staffing
needs.

REVENUE

VOLATILITY
Economic uncertainty
impacting sensitive
revenues.

CAPITAL NEEDS
Unfunded capital
needs remain a longterm consideration.

Current Risks

Questions?
Administrative Marissa Duran
Services Director
Telephone
Email
Budget Link
831-768-3471
marissa.duran@
watsonville.gov
watsonville.gov/426/Budgets#doc
access6aef42dc284c290fb86638d70aa6
23ec

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, June 23, 2026
TO: CITY COUNCIL
WRITTEN BY: CONTRACT PLANNER RICHARD SMEATON
RECOMMENDED BY: COMMUNITY DEVELOPMENT DIRECTOR ORBACH
APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: CONSIDERATION OF AN ORDINANCE AMENDING PART 5 OF CHAPTER 14-16 TO ALLOW A 75-FOOT MAXIMUM BUILDING HEIGHT FOR
HOTELS WITHIN THE INDUSTRIAL PARK (IP) ZONING DISTRICT; AND

FINDING THE ACTION EXEMPT FROM REVIEW UNDER THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
RECOMMENDATION:

City Staff recommend the City Council introduce, for first reading only, waiving full reading of the text, an Ordinance amending Part 5 (IP – Industrial Park District) of Chapter 14-16 (District Regulations) of Title 14 (Zoning) of the Watsonville Municipal Code to allow a 75-foot height for hotels within the Industrial Park (IP) zoning district and finding the action exempt from review under the California Environmental Quality Act (CEQA) as it is not a “project,” but if a project, exempt pursuant to CEQA Guidelines section 15061(b)(3).

BACKGROUND:

On July 7, 2025, an application for a Zoning Code Text Amendment adding a 75-foot maximum height limit for hotels in the Industrial Park (IP) zoning district was filed by Prakash Patel, applicant, on behalf of Watsonville Airport Hotel, LP, property owner.

On June 16, 2026, the Planning Commission adopted Resolution No. 12-26 (PC) recommending the City Council approve a zoning code text amendment to Part 5 (IP – Industrial Park District) of Chapter 14-16 (District Regulations) within Title 14 (Zoning) of the Watsonville Municipal Code modifying the "Other requirements" section to include a 75-foot maximum height limit for hotels located on parcels within the Industrial Park (IP) zoning district.

2 The Industrial Park (IP) zoning district, per the use table in WMC Section 14-16.505(c), only permits a new construction with 35-foot maximum height. The applicant is requesting a Zoning Code Text Amendment to add a maximum building height of 75 feet for hotels within the IP zoning district DISCUSSION:

Zoning Code Text Amendments
Pursuant to WMC Section 14-12.801, the text of the adopted Zoning Code may be amended in a manner identical to WMC Section 14-12.701, which outlines the process for General Plan amendments. Any proposed zoning code text amendment shall be reviewed by the Planning Commission at a public hearing for recommendation to the City Council. At the conclusion of the public hearing, the Commission shall adopt a resolution, recommending approval or denial of the proposed amendment, by the affirmative vote of the majority of the Commission members, subject to findings required by WMC Section 14-12.708.

Standard of Review & Appeal Process
The Zoning Text Amendment is a legislative decision that requires City Council approval. The required findings are included as Exhibit A of the Ordinance.

For more information on standard of review and process, see the Standard of Review and Process Overview on the City website.

Proposed Zoning Code Text Amendments
The proposal is to amend WMC § 14-16.505(c) - "Other requirements" to include a 75-foot maximum height limit for hotel uses.

The Industrial Park (IP) zoning district, per the use table in WMC Section 14-16.505(c), only permits a new construction with 35-foot maximum height. In order to permit construction of hotel buildings with building heights typical for national hotel chains, the applicant is proposing the following amendments to WMC Title 14 Zoning. The underlined red text signifies the proposed text changes:
(c) Other requirements.

Maximum building height, except for hotels (unless extended by special exception)
35 feet
Maximum building height for hotels 75 feet
Distance between buildings on the same lot 10 feet
Lot coverage, total structures, not including open parking spaces 60% The required Zoning Code Text Amendment findings are listed below with supportive evidence. a) That the proposed amendment is consistent with the policies embodied in the General Plan.

3 Supportive Evidence: The proposed amendments are consistent with the following policies embodied in the General Plan as described below:
 Goal 4.4 & Policy 4.D Industrial Land Use – Achieve economic diversification, living wage employment, the preservation of the agricultural economic base of the Pajaro Valley, and maintain a balance among jobs, housing, and other urban land uses.

Consistency Findings: Amending the zoning code to allow additional height for hotel uses within the IP zoning district will expand businesses unrelated to the agricultural economy in Watsonville and aligns with General Plan Goal 4.4. New hotel uses will provide transient accommodations for both residents and visitors who will support local businesses, provide economic diversification, and create additional jobs for local residents in an area identified for light industrial uses in the General Plan.
 Goal 4.6 Local Employment – Promote a variety of employment opportunities within the city providing living wage jobs to Watsonville residents. Stimulate creation of 7,500 additional jobs by 2005. Pursue opportunities for job skill training.

Consistency Findings: Amending the zoning code to allow additional height for hotel uses within the IP zoning district will support the development of new hotel uses. New hotels will create additional jobs for local residents.
b) That the proposed amendment is compatible to the extent possible with the actual and general planned use of the adjacent properties.

Supportive Evidence: The proposed text amendment to Chapter 14-16.505(c) (District Regulations) would increase the maximum allowable building height for hotels to 75 feet. This change would allow new hotels to be constructed at heights that are typical for national chain hotels in today’s market.

These findings are included in Exhibit “A” of the ordinance.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

The proposed Zoning Code Text Amendments do not constitute a “project” under CEQA, as they do not have the potential to result in a director or reasonably foreseeable indirect physical change in the environment.

Even if the proposed code amendments were considered a “project,” they would be exempt from CEQA review under the common sense exemption set forth in CEQA Guidelines Section 15061(b)(3), as it can be seen with certainty there is no possibility the activity may have a significant effect on the environment.

Accordingly, no further environmental review is required.

4 STRATEGIC PLAN:

The purpose of the City of Watsonville’s 2025-2027 Strategic Plan is to help the City align its priorities and the community’s needs with the City’s budget and set a clear forward-looking vision for the organization and the services the City delivers.

The 2023-2025 Strategic Plan identifies seven long-term priorities with targeted strategies and actions aimed at achieving measurable results and driving meaningful progress for the community. The priorities include: community engagement and well-being economic development, efficient and well-performing government, fiscal health, housing, infrastructure and environment, and public safety.

The proposed Zoning Code Text Amendment adding a 75-foot height limit for hotels located on parcels within the IP zoning district supports and is consistent with City Council 2025-2027 Strategic Plan priorities #2 (Economic Development) and #4 (Fiscal Health).

FINANCIAL IMPACT:

Adopting the proposed Zoning Code Text Amendment adding a 75-foot height limit for hotels located on parcels within the IP zoning district will increase the likelihood of hotel development within the IP zoning district. Hotels generate Transient Occupancy Taxes (TOT), of which the City receives 100%. Therefore, the proposed Zoning Code Text Amendment could have a positive financial impact on the City budget.

ALTERNATIVE ACTION:

The City Council may consider not adopting the proposed 75-foot height limit for hotels located on parcels within the IP zoning district. This alternative action would keep the maximum building height for all buildings in the IP zoning district, including hotels, at 35 feet. Any project entitlements approved conditionally based on the proposed height increase would not be able to move forward to the building permit stage.

ATTACHMENTS AND/OR REFERENCES:

None.

1 Reso No. ______ (CM)
Meeting Date: 062326 SWZ ______ TV ______ CDD ______
ORDINANCE NO. Introduction (CM)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE AMENDING PART 5 (IP – INDUSTRIAL PARK
DISTRICT) OF CHAPTER 14-16 (DISTRICT REGULATIONS) OF TITLE 14 (ZONING) OF THE WATSONVILLE MUNICIPAL CODE TO ALLOW A 75-FOOT MAXIMUM BUILDING HEIGHT FOR HOTELS LOCATED
WITHIN THE INDUSTRIAL PARK (IP) ZONING DISTRICT; AND FINDING

THE ACTION EXEMPT FROM REVIEW UNDER THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT (CEQA) AS IT IS NOT A PROJECT,

BUT IF A PROJECT, EXEMPT PURSUANT TO CEQA GUIDELINES
SECTION 15061(B)(3)
WHEREAS, Watsonville Municipal Code (WMC) Chapter 14-16 regulates uses and development in specific zoning districts in the City; and WHEREAS, WMC § 14-16.505(c) identifies “Other Requirements” within the Industrial Park (IP) zoning district specifying maximum heights, distance between buildings, and lot coverage; and
WHEREAS, the IP zoning district limits the height of all buildings to thirty-five (35) feet; and
WHEREAS, on July 7, 2025, an application for a Zoning Code Text Amendment adding a 75-foot maximum height limit for hotels to the Industrial Park (IP) zoning district was filed by Prakash Patel; and
WHEREAS, providing additional height for hotels within the IP zoning district supports the City Council Strategic Plan goal of economic development and multiple General Plan goals, policies, and implementation measures related to employment opportunities and revitalization of the City’s commercial core; and WHEREAS, City Staff reviewed the action under the California Environmental Quality Act (CEQA) and determined that the action qualifies for a common sense

2 Reso No. ______ (CM)
Meeting Date: 062326
exemption under California Code of Regulations Title 14, §15061(b)(3) because the proposed zoning text amendment does not have the potential for causing a significant impact on the environment and it can be seen with certainty that there is no possibility that the amendment may have a significant effect on the environment; and WHEREAS, notice of time and place of the hearing to consider the zoning code text amendment was given as required by law and a public hearing was held according to Part 9: Public Hearing Notice Provisions of Chapter 14-10: Administration and Procedure of the WMC; and
WHEREAS, the City Council has considered all evidence received, both oral and documentary, and the matter was submitted for recommendation.

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

SECTION 1: RECITALS
The foregoing recitations are true and correct and are hereby incorporated into this Ordinance.

SECTION 2: ENACTMENT

1. The City Council adopts an ordinance amending Part 5 (IP – Industrial Park District) of Chapter 14-16 (District Regulations) of Title 14 (Zoning) of the Watsonville Municipal Code, attached hereto as Exhibit B, to allow a 75-foot height for hotels located within the Industrial Park (IP) zoning district.

2. The City Council finds that the proposed zoning code text amendments are consistent with the purposes of the General Plan and Municipal Code as set forth in Exhibit A, which is attached hereto and incorporated herein by

3 Reso No. ______ (CM)
Meeting Date: 062326
this reference.

SECTION 3: CEQA
The City Council determined that the proposed Zoning Code Text Amendments are exempt from review under the California Environmental Quality Act (CEQA) under the common sense exemption under CEQA Guidelines Section 15061(b)(3) as it can be seen with certainty that there is no possibility that the amendments to the Zoning Code would have significant effects on the environment because no actual physical project is being proposed at this time.

SECTION 4: PUBLICATION
This ordinance shall be published in the Watsonville Register-Pajaronian and/or Santa Cruz Sentinel in compliance with the provisions of the Charter of the City of Watsonville.

SECTION 5: EFFECTIVE DATE
This ordinance shall take effect thirty (30) days after its final adoption. ***************************************

4 Reso No. ______ (CM)
Meeting Date: 062326
CITY OF WATSONVILLE EXHIBIT “A”

CITY COUNCIL
ZONING TEXT AMENDMENT FINDINGS - WMC §14-16.800
a) That the proposed amendment is consistent with the policies embodied in the General Plan.

Supportive Evidence
The proposed amendments are consistent with the following policies embodied in the General Plan as described below:
 Goal 4.4 & Policy 4.D Industrial Land Use – Achieve economic diversification, living wage employment, the preservation of the agricultural economic base of the Pajaro Valley, and maintain a balance among jobs, housing, and other urban land uses.

Consistency Findings:

Amending the zoning code to allow additional height for hotel uses within the IP zoning district will expand businesses unrelated to the agricultural economy in Watsonville and aligns with General Plan Goal 4.4. New hotel uses will provide transient accommodations for both residents and visitors who will support local businesses, provide economic diversification, and create additional jobs for local residents in an area identified for light industrial uses in the General Plan.
 Goal 4.6 Local Employment – Promote a variety of employment opportunities within the city providing living wage jobs to Watsonville residents. Stimulate creation of 7,500 additional jobs by 2005. Pursue opportunities for job skill training.

Consistency Findings:

Amending the zoning code to allow additional height for hotel uses within the IP zoning district will support the development of new hotel uses. New hotels will create additional jobs for local residents. b) That the proposed amendment is compatible to the extent possible with the actual and general planned use of the adjacent properties.

Supportive Evidence
The proposed text amendment to Chapter 14-16.505(c) (District Regulations) would increase the maximum allowable building height for hotels to 75 feet. This change would allow new hotels to be constructed at heights that are typical for national chain hotels in today’s market.

5 Reso No. ______ (CM)
Meeting Date: 062326
CITY OF WATSONVILLE EXHIBIT “B”

PLANNING COMMISSION
Chapter 14-16

DISTRICT REGULATIONS
Part 5: IP—Industrial Park District
14-16.500 Purpose.

The purpose of the Industrial Park District is to provide a separate and exclusive district for light, non-nuisance industry, business, service, and research work; to promote an industrial business, service, and research area which is not dependent on rail transport and not requiring outdoor storage; to foster and encourage the development of specialized manufacturing, business, service, and research institutions; to promote and protect design and landscape qualities in the district; to minimize traffic congestion through the provision of adequate off-street parking and loading; and to protect the district and surrounding area and any adjacent residential or commercial property from noise, illumination, glare, and unsightliness, including outdoor storage, odors, dust, dirt, litter, smoke, fumes, vibration, heat, fire, and other hazards. (Ord. 506-80 C-M, eff. September 11, 1980, as amended by § 1, Ord. 768-87 C-M, eff.

January 7, 1988)
14-16.501 Principal permitted uses.

All principal permitted and accessory uses shall be subject to the approval of an Administrative Review Permit issued without a public hearing by the Zoning Administrator.

DLU 115 Storage, limited to permitted
IP District uses
121 Vehicles and equipment;
wholesale and retail sales
122 Drugs, chemicals; wholesale
Exclusion: DLU 1229
124 Food distributors; wholesale
126 Electrical goods; wholesale
127 Hardware, plumbing, heating
supply; wholesale
128 Machinery, equipment,
supplies; wholesale
129 Wholesalers, miscellaneous
14 Research and development of
manufacturing firms

6 Reso No. ______ (CM)
Meeting Date: 062326
16 Contractors, general
17 Construction, special trade
contractors
1961 Welding shop
1962 Film, photographic processing
labs, photofinishing
1964 Blueprinting service
202 Dairy products, manufacturing
205 Bakeries, large scale
207 Candy products,
manufacturing
208 Beverage industries
23 Apparel and other products
made from fabrics
25 Furniture and fixtures
26 Paper and allied products
DLU 27 Printing, publishing, and
reproduction
283 Pharmaceutical products,
manufacturing
2097 Ice manufacturing
30 Rubber, plastic and leather
products (excluding 301, 303,
and 3091)
328 Stone cutting, monument
manufacturing
34 Fabricated metal products
manufacturing
357 Machines, business,
manufacturing
358 Machine, service industry,
manufacturing
359 Miscellaneous machinery,
except electrical
36 Electrical machinery,
equipment, and supplies

7 Reso No. ______ (CM)
Meeting Date: 062326
37 Transportation equipment
(excluding 371, 372, 374 and
379)
38 Instruments, photo, optical
goods, watches, clocks,
manufacturing
6232 Blueprinting, microfilming,
service
624 Services to buildings,
machinery, and property
6287 Vocational trade schools
6291 Tool designers/laboratories,
research, development and
testing
6292 Business and management
consulting
6292 Calculating and statistical
services
6292 Data processing services
6292 Electronics consultants
6292 Geological consultants
6292 Marketing research and
analysis
6292 Safety consultants
DLU 6294 Research agencies,
educational and scientific,
nonprofit
6298 Direct selling organizations
6299 Delivery service; packages
and freight
6299 Drafting service
632 Automobile parking facilities
6422 Refrigeration equipment,
repairs and servicing
6423 Electronic equipment, repair
6423 Instrument calibration services
644 Furniture repair and
refinishing

8 Reso No. ______ (CM)
Meeting Date: 062326
644 Upholstering and furniture
repair
6494 Armature rewinding
6494 Electric motors, repair
9 Agricultural interim uses
(existing)
4833 Satellite earth station
antennas
(Ord. 506-80 C-M, eff. September 11, 1980, as amended by § 1, Ord. 664-85 C-M, eff.

February 7, 1985, § 1, Ord. 679-85 C-M, eff. July 25, 1985, § 1, Ord. 768-87, eff.

January 7, 1988, and § 1, Ord. 850-90 C-M, eff. October 11, 1990, Ord. 1153-03 C-M, eff. April 24, 2003)
14-16.502 Accessory uses.
(a) Uses and buildings customarily appurtenant or incidental to a principal permitted use on the same parcel, subject to the general provisions, applicable regulations, and Performance Standards, including service facilities, such as cafeterias, employee recreation facilities, and other similar installations intended solely for use by the occupants of a principal permitted use or uses; and
(b) On-site watchman quarters or caretakers’ residences. (Ord. 506-80 C-M, eff. September 11, 1980, as amended by § 1, Ord. 768-87 C-M, eff.

January 7, 1988, and § 1, Ord. 771-88 C-M, eff. February 11, 1988) 14-16.503 Conditional uses.
(a) The following uses require an Administrative Use Permit: temporary buildings, structures, storage areas, or office uses in conjunction with a valid building permit application for remodeling or new construction.

DLU 115 Cannabis distribution facility
(Type 11 license)
115 Type 9 cannabis delivery for
cultivation/manufacturing
facilities only
2 Cannabis manufacturing (Type
6 or 7 license) volatile and/or
nonvolatile solvents
6291 Cannabis testing lab (Type 8
license)
Electrically charged security
fence
Temporary mobile office

9 Reso No. ______ (CM)
Meeting Date: 062326
4811 Telecommunications sites
4812 Telecommunications facilities
GLU 91 Indoor cultivation of cannabis
up to twenty-two thousand
(22,000) square feet (Type 1A,
2A or 3A license)
91 Cannabis processing
(b) The following uses require a Special Use Permit:

DLU 114 Mini-warehouses, household
goods
129 Wholesale sales
50 Retail cannabis facility (Type
10 license only)
51 Service station
547 Delicatessens
581 Restaurants and coffee
shops Exclusions: Drivethrough facilities
5811 Restaurant with bar
5811 Restaurant with beer and
wine sales
5811 Restaurant with liquor sales
608 Bank service centers
659
and
7924
Health and fitness centers
and related facilities
6801 Hotel
6802 Motel
724 Day care centers
Any building exceeding
thirty-five (35') feet in height
(c) Warehouse sales require a Special Use Permit and are conditioned on:
(1) The area set aside for such sales shall not exceed twenty (20%) percent of floor area of the building,
(2) Adequate parking shall be provided,
(3) Sales shall be incidental to the primary building use, and

10 Reso No. ______ (CM)
Meeting Date: 062326
(4) The sales shall be of a type not usually found in retail zones, or shall be regional in nature.
(Ord. 506-80 C-M, eff. September 11, 1980, as amended by § 1, Ord. 572-82, eff.

January 13, 1983, § 15, Ord. 659-84 C-M, eff. December 27, 1984, § 1, Ord. 768-87 CM, eff. January 7, 1988, § 1, Ord. 771-88 C-M, eff. February 11, 1988, § 1, Ord. 850-90 C-M, eff. October 11, 1990, § 1, Ord. 1095-00 C-M, eff. October 12, 2000, § 1, Ord. 1135-02 C-M, eff. September 10, 2002, Ord. 1153-03 C-M, eff. April 24, 2003, § 1, Ord. 1236-08 (CM), eff. July 10, 2008, § 1, Ord. 1276-11 (CM), eff. August 11, 2011, § 1, Ord. 1327-16 (CM), eff. February 25, 2016, § 1, Ord. 1405-20 (CM), eff. July 23, 2020, and § 2(3) (Exh. A), Ord. 1481-25 (CM), eff. October 9, 2025) 14-16.504 Prohibited uses.

The following manufacturing uses involving the primary production of the following products from raw materials and other uses are specifically prohibited within the IPIndustrial Park District due to the hazardous or undesirable nature of the raw materials involved:
(a) Asphalt, cement, charcoal, and fuel briquets;
(b) Aniline dyes, ammonia, carbide, caustic soda, cellulose, chlorine, carbon black, creosote, hydrogen and oxygen, industrial alcohol, nitrates of an explosive nature, potash, plastic materials, synthetic resins, pyroxylin, rayon yarn, and hydrochloric, nitric, phosphoric, picric, and sulfuric acids;
(c) Coal, coke, and tar products, including their use in other manufacturing, explosive, fertilizers, gelatin, animal glue, and size;
(d) Turpentine, matches, and paint;
(e) Rubber, soaps, including fat rendering;
(f) Flour mills;
(g) The following processes: nitrating of cotton or other materials; magnesium foundry; reduction, refining, smelting, and allowing of metal or metal ores; refining petroleum products, such as gasoline, kerosene, naphtha, and lubricating oil; distillation of wood or bones; and storage, curing, or tanning of raw, green, or salted hides or skins; (h) Stockyards, slaughterhouses, including poultry and waste piles; (i) Storage of fireworks or explosives;
(j) Radioactive materials, or any other similar use producing detrimental effects on electronic equipment;

11 Reso No. ______ (CM)
Meeting Date: 062326
(k) Junk yards, auto wrecking, auto storage;
(l) Petroleum products refining and/or storage pipeline and pipeline facilities, petroleum waste disposal, dewatering plants and/or treatment facilities, accessory crude oil and gas processing users such as storage and staging facilities; and Any other use which is determined by the Zoning Administrator to be of the same general character as any of the uses set forth in this section or the following shall be prohibited.

DLU 541 Convenience store
541 Convenience store with beer
and wine sales
541 Convenience store with liquor
sales
541 Grocery store
541 Grocery store with beer and
wine sales
541 Grocery store with liquor sales
582 Bar
592 Liquor store
496 Waste/Recycle processing and
transfer station
(Ord. 506-80 C-M, eff. September 11, 1980, as amended by § 1, Ord. 768-87 C-M, eff.

January 7, 1988, § 1, Ord. 850-90 C-M, eff. October 11, 1990, § 1, Ord. 1135-02 C-M, eff. September 10, 2002, and § 1, Ord. 1225-07 (CM), eff. November 8, 2007) 14-16.505 District regulations.

The following regulations shall be observed in the Industrial Park District for the use proposed, except as otherwise provided in this title or as modified by Conditional Use Permit:
(a) Minimum lot area and dimensions.

Area (interior lot) 20,000 square feet
Area (corner lot) 20,000 square feet
*Frontage (interior) 100 feet
Frontage (corner) 100 feet
(b) Minimum yard setback requirements.

12 Reso No. ______ (CM)
Meeting Date: 062326
Front yard 25 feet
**Rear yard 0 feet
**Side yard
Interior lot—one side 0 feet
Total both side yards 30 feet
Exterior—street side 15 feet
Exterior—property side 0 feet
Total both side yards 30 feet
* Special consideration for lesser frontage shall be allowed on irregularly shaped lots holding one hundred (100') feet at the rear of the front setback. ** Where the IP District abuts a residential district, the rear and/or side yard setback shall be thirty (30') feet.
(c) Other requirements.

Maximum building height, except for
hotels, (unless extended by special
exception)
35 feet
Maximum building height for hotels 75 feet
Distance between buildings on the
same lot
10 feet
Lot coverage, total structures, not
including open parking spaces
60%
(d) Exceptions.
(1) All types of public utility installations; and
(2) Special exceptions may be considered for uses directly related to permitted or accessory uses which are not listed and which, by their nature, would prohibit a permitted use to function if not allowed.
(e) Special conditions.
(1) All uses permitted by this part, except for administrative, executive, and financial offices, and permitted retail commercial uses shall be subject to review in accordance with the Performance Standards procedure. (2) All manufacturing uses shall be conducted wholly within a completely enclosed building, except for off-street parking, loading facilities, and testing

13 Reso No. ______ (CM)
Meeting Date: 062326
functions. Testing functions not conducted in a building shall first be approved by the Zoning Administrator.
(3) Manufacturing and industrial processes shall use only solar, gas, or electricity as a fuel; provided, however, oil burning equipment may be installed for standby or emergency purposes only.
(4) In an IP District directly across a street or thoroughfare, not including a freeway, from any R District, the parking and loading facilities shall be distant at least twenty (20') feet from said street and the buildings and structures at least thirty (30') feet from said street.
(5) All portions of the front yard not used for parking and access shall be landscaped and provided with adequate sprinklers or appropriate automatic irrigation devices. Street trees shall be provided as part of an approved site plan.

Any parking in the front yard area shall be screened with a landscaped strip no less than five (5') feet in width. Parking in a front yard shall be limited to eight (8) spaces or twenty (20%) percent of the required off-street parking, whichever is greater. No loading or unloading shall be permitted in the front yard setback area. (6) Provide auditory separation when the IP District is adjacent to an R District. (7) All uses within the IP District shall be subject to site plan review and other special conditions as may be deemed by the Zoning Administrator to be necessary to comply with the purpose of the IP District. (Ord. 506-80 C-M, eff. September 11, 1980, as amended by § 1, Ord. 768-87 C-M, eff.

January 7, 1988, and § 2(3) (Exh. A), Ord. 1481-25 (CM), eff. October 9, 2025) 14-16.506 Industrially related uses.

Any other use which is determined by the Zoning Administrator to be of the same general character as any of the uses allowed in the IP District shall be permitted. (§ 1, Ord. 768-87 C-M, eff. January 7, 1988)

Zoning Code Text Amendment
Proposed Change to Watsonville Municipal Code
Section 14-16.505(c) Industrial Park (IP) Zoning District – Other Requirements

Background
• A request for a Zoning Code Text Amendment to allow
for a 75-foot maximum height limit for hotels in the
Industrial Park (IP) zoning district was filed as part of a proposal to build a hotel at 375 Technology Drive.
• The Planning Commission recommended approval of
Zoning Code changes to the City Council on June 16,
2026.
• The proposed changes would only be applicable to
properties within the Industrial Park (IP) zoning district and not the General Industrial (IG) zoning district

Industrial Park (IP)
Zoning District

Zoning Text Amendment
The Industrial Park (IP) zoning district "Other requirements" table in WMC Section 14-16.505(c) currently only permits new
construction with a 35-foot maximum height. The following amendments to WMC Title 14 Zoning are proposed. The
underlined bolded red text signifies the proposed text changes:
(c) Other requirements.

Maximum building height, except for hotels (unless
extended by special exception) 35 feet
Maximum building height for hotels 75 feet
Distance between buildings on the same lot 10 feet
Lot coverage, total structures, not including open
parking spaces
60%

General Plan Consistency
Goal 4.4: Industrial Land Use
Policy 4.D: Industrial Land Use
Goal 4.6: Local Employment

California Environmental Quality Act (CEQA)
The proposed Zoning Code Text Amendments does not
constitute a “project” under CEQA, as it does not have the potential to result in a director or reasonably foreseeable indirect physical change in the environment.

Also, even if the proposed code amendments were
considered a “project,” it would be exempt from CEQA
review under the Common Sense exemption set forth in
CEQA Guidelines Section 15061(b)(3), as it can be seen with certainty there is no possibility the activity may have a significant effect on the environment.

Staff Recommendation
City Staff recommends the City Council introduce, for first reading only, waiving full reading of the text, an Ordinance amending Part 5 (IP – Industrial Park District) of Chapter 14-16 (District Regulations) of Title 14 (Zoning) of the Watsonville Municipal Code to allow a 75-foot height for hotels within the Industrial Park (IP) zoning district and find the action exempt from the California Environmental Quality Act (CEQA) as it is not a 'project,' but if a project, exempt pursuant to CEQA guidelines Section 15061(b)(3).

June 23, 2026

VIA EMAIL
Honorable Mayor Kristal Salcido and City Council
City of Watsonville
Planning Commission
250 Main Street
Watsonville, California 95076
[email protected]
[email protected]
Re: June 23, 2026, City Council Meeting; Agenda Item # 10.e Consideration of Ordinance Amendment Chapter 14-16 to Allow 75-Foot Maximum Building Height for Hotels Within the Industrial Park Zoning District Dear Mayor Salcido and Members of the Council:

This law firm represents the Watsonville Pilots Association (“WPA”), one of the prevailing parties in Watsonville Pilots Association, et al. v. City of Watsonville (2010) 183 Cal.App.4th 1059 (WPA I). WPA is dedicated to protecting the safety of pilots and members of the public on the ground in and around the Watsonville Airport. WPA objects to the proposed rezoning of to allow 75-foot high hotels in the Industrial Park Zoning District.

WPA just found out about the proposed rezoning referenced above. It was never considered by the Watsonville Airport Advisory Committee, where WPA participates. This proposed rezoning is directly related to a proposal considered by the Planning Commission to allow a hotel to be built at 375 Technology Drive proposed by Prakash Patel, who is mentioned in the staff report before you. The location of this hotel is within Safety Zone 6. (See Exhibit A.) Moreover, since the rezoning will encompass all land zoned “Industrial Park,” it will affect more than the proposed hotel at 375 Technology Drive, and the City has failed to consider other hotels that could be built in the Safety Zones.

The Planning Commission considered a Mitigated Negative Declaration (“MND”) along with the hotel project and recommended the rezoning before you as part of that Project. The MND fails to even mention the Safety Zones, or that the Project is in Safety Zone 6. The Staff Report does not mention that the hotel at 375 Technology Drive is in Safety Zone 6. The height of the proposed structure, or other hotels that now may be located in safety zones, was never considered. Height near an airport is the enemy of pilots, passengers and members of the public.

Watsonville Municipal Code Section 14-16.505(c) – ‘Other requirements’ to include a 75-foot maximum height limit for hotel uses (current maximum is 35 feet for all uses).” However, the staff report is now recommending separately that the rezoning before the Council is exempt from

Honorable Mayor and City Council
Re: Rezoning to Allow 75-Foot Maximum Building Height
June 23, 2026

environmental review because “it is not a ‘project,’ but if a project, exempt pursuant to CEQA Guidelines section 15061(b)(3).” There are three problems with this assertion.

First, the MND considers it part of the hotel project at 375 Technology Drive. The bell cannot be unrung. The rezoning is to facilitate the hotel development at 375 Technology Drive.

CEQA requires the City to consider the environmental impacts of the “whole of the action” and not break a project into component parts to avoid reviewing impacts comprehensively. (Cal. Code Regs., tit. 14, § 15378(a).) The rezoning is part of the hotel project, and the Planning Commission’s actions included recommending that the Council approve the rezoning. The CEQA Guidelines provide that a “‘Project’ means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment….” (Cal. Code Regs., tit. 14, § 15378(a).) This big picture approach to the definition of a project (i.e., including “the whole of an action”) prevents a proponent or a public agency from avoiding CEQA requirements by dividing a project into smaller components which, when considered separately, may not have a significant environmental effect. (Nelson v. County of Kern (2010) 190 Cal.App.4th 252, 271.)
The court in County of Ventura v. City of Moorpark (2018) 24 Cal.App.5th 377, 385 (“County of Ventura”) explained:

A project refers to “the whole of an action”, not each individual component [citation], thus, where two activities are “part of a coordinated endeavor”, “among the ‘various steps which taken together obtain an objective’”, or otherwise “related to each other”, they constitute a single project for purposes of CEQA. It is only “where the second activity is independent of, and not a contemplated future part of, the first activity, [that] the two activities may be reviewed separately.” (Internal citations omitted.) Where one action “legally compels or practically presumes completion of another action,” both actions are considered a single project. (Banning Ranch Conservancy v. City of Newport Beach (2012) 211 Cal.App.4th 1209, 1223.)
Second, the rezoning is a “project.” (See for example, Union of Medical Marijuana Patients, Inc. v. City of San Diego (2019) 7 Cal.5th 1171.) Third, the rezoning is not exempt under CEQA Guidelines section 15061(b)(3), the socalled “common sense exemption.” The common sense exemption states, “Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.” (14 Cal. Code Regs. § 15061(b)(3) (emphasis added).) The common sense exemption can be used “only in those situations where its absolute and precise language clearly applies.” (Myers v. Board of Supervisors (1976) 58 Cal.App.3d 413, 425.) “If legitimate questions can be raised about whether the project might have a significant impact and there is any dispute about the possibility of such an impact, the agency cannot find with certainty that a project is exempt.” (Davidon

Honorable Mayor and City Council
Re: Rezoning to Allow 75-Foot Maximum Building Height
June 23, 2026

Homes v. City of San Jose (Davidon Homes) (1997) 54 Cal.App.4th 106, 117.) An agency abuses its discretion if there is no basis in the record for its determination that the exemption applies. (Id. at 114; McQueen v. Board of Directors (1988) 202 Cal.App.3d 1136, 1149 (overruled on other grounds).) The agency has the burden of showing that the project is exempt. (Davidon Homes, supra, 54 Cal.App.4th at 116.) “Imposing the burden on members of the public in the first instance to prove a possibility for substantial adverse environmental impact would frustrate CEQA’s fundamental purpose of ensuring that government officials ‘make decisions with environmental consequences in mind.’” (Id., citing Bozung v. Local Agency Formation Com. (19705) 13 Cal.3d 263, 283.)
The City Council must first consider the adequacy of the MND in order to approve the rezoning since this is what the Planning Commission relied on for its recommendation. The City Council cannot avoid its consideration of the environmental review for the rezoning reviewed by the Planning Commission because the City Council is the decisionmaking body for the rezoning.

And the Council cannot require an appeal of the Planning Commission decision related to the MND and the Council’s consideration of the rezoning. (See, Browning-Ferris Industries v. City Council (1986) 181 Cal.App.3d 852, 859-861.) Nevertheless, in our view, the MND is woefully inadequate because it does not even mention the safety zones, which it is required to do, or consider what parcels in the safety zones will be impacted by the rezoning.

Crucially, the rezoning cannot be approved until the City has converted the Airport Land Use Handbook into mandatory provisions in its General Plan. State law establishes Airport Safety Zones around airports and makes compliance mandatory as to the Watsonville Airport.

The WPA has successfully defended these mandatory Airport Safety Zones in Court twice to date: in WPA I and in Watsonville Pilots Association v. City of Watsonville, Case No. CV176416 (“WPA II”) where the Superior Court found that a revised 2030 General Plan again violated the Aeronautics Act because, among other reasons, it granted the City discretion in a no procedure county.

In addition, this letter is to once again remind the City that it does not currently have the authority to issue permits for this application as the City’s General Plan does not yet comply with the Public Utilities Code as required by WPA I. Therefore, the rezoning must be denied. While Judgment is not final in two related cases, the Santa Cruz Superior Court has found that the City has continued to violate the State Aeronautics Act. (WPA v. City of Watsonville, et al. (Ortiz) Santa Cruz Superior Court Case No. 21CV02343; WPA v. City of Watsonville, et al. (Crocker’s Lockers) Santa Cruz Superior Court Case No. 23CV00425.) The proposed rezoning would again violate orders of the Superior Court and Sixth District Court of Appeal.

As a reminder, in 2006, WPA filed a petition for writ of mandate challenging the City’s adoption of an updated City General Plan (the 2030 General Plan). (Santa Cruz Superior Court Case No. 154571.) The Santa Cruz Superior Court found that the City had violated both the State Aeronautics Act and CEQA, because, inter alia, the 2030 General Plan unlawfully modified Airport Safety Zone 3 and land use compatibility guidelines, and the EIR inadequately analyzed

Honorable Mayor and City Council
Re: Rezoning to Allow 75-Foot Maximum Building Height
June 23, 2026

aviation impacts and traffic impacts and failed to consider a reasonable range of alternatives. The Court of Appeal upheld this judgment in WPA I.

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

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

Notably, the City also agreed in a Joint Stipulation and Order Re Partial Return to Writ of Mandate Enabling City Approval of Athletic Field Project and Auditorium Project for Pajaro Valley High School (“Stip and Order Re Partial Return”) that both WPA I and WPA II “ordered the CITY, inter alia, to comply with the State Aeronautics Act and this Court’s respective Statements of Decision and to take no action on development proposals within the Airport Influence Area until the CITY has duly incorporated the provisions of the Airport Handbook into the CITY General Plan.” (Stip and Order Re Partial Return, 8:24-28, attached to Letter from Wittwer Parkin to Planning Commission, dated December 5, 2022.) Moreover, this Stipulation and Order also states that “the CITY remains mandated to incorporate the Airport Handbook into its General Plan as ‘nondiscretionary’ standards, and utilize the most stringent of those Airport Handbook standards….” (Stip and Order Re Partial Return, 10:13-17.) The issues identified by City Staff with regards to the Pajaro Valley High School Auditorium Project remain an issue here: because the General Plan is still noncompliant with the State Aeronautics Act, no permits or any other land use approvals may be authorized at this time.

See Camp v. Board of Supervisors (1981) 123 Cal. App. 3d 334, 353 (stating that because a subdivision map was approved “at a time when there existed no adequate general plan, the Board . . . could not have legally found the subdivision consistent with the requisite general plan and thus that approval was unlawful and must be set aside.”). Thus, without a valid general plan, the City must take the position that it will not issue permits or otherwise make new land use decisions. See also Neighborhood Action Group v. County of Calaveras (1984)156 Cal.App.3d 1176, 1184-1185 (stating that a conditional use permit issued on the basis of invalid general plan is thereby itself invalid, to the extent that the “permitted use implicates a defective policy or

Honorable Mayor and City Council
Re: Rezoning to Allow 75-Foot Maximum Building Height
June 23, 2026

standard in the general plan,” continuing on to state that “the scope of authority of the agency to enact a general plan and zoning ordinances and to apply them is governed by the requirements of state law. A permit action taken without compliance with the hierarchy of land use laws is ultra vires as to any defect implicated by the uses sought by the permit”) (emphasis added); Friends of “B” Street v. City of Hayward (1980) 106 Cal.App.3d 988, 998 (“City approval of a proposed subdivision, construction of public improvements, and private sale of subdivided lots may be enjoined for lack of consistency of the subdivision map with the general plan.”) For the foregoing reasons, the City Council cannot approve this Project.

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

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

Thank you for your consideration of these comments.

Very truly yours,

WITTWER PARKIN
/S/
William P. Parkin
cc: Client
Samantha Zutler, Esq.

Kevin Siegel, Esq.

EXHIBIT A
Exhibit A

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, June 23, 2026
TO: CITY COUNCIL
WRITTEN BY: POLICE CAPTAIN RADICH
RECOMMENDED BY: POLICE CHIEF SHAB
APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: INTRODUCTION AND FIRST READING OF ORDINANCE MODIFYING

CAMPING ORDINANCE
RECOMMENDATION:

Introduce for first reading only, waiving full reading of the text, modifications and additions to Title 5- Public Welfare, Morals, and Conduct, Chapter 36- Camping, to the Watsonville Municipal Code, to define restrictions specific to camping in the City.

BACKGROUND:

On June 28, 2024, the U.S. Supreme Court issued its decision in Johnson v. City of Grants Pass, Oregon, where, among other things, the United States Supreme Court held that the Eighth Amendment does not prohibit cities from enforcing laws regulating camping on public property. On July 25, 2024, California Governor Gavin Newsom issued Executive Order N-1-24, which, among other things, explained that California is experiencing a homelessness crisis decades in the making and highlighted the potential dangers associated with encampments, including subjecting unsheltered occupants to extreme weather, fires, predatory and criminal activity, and widespread substance abuse. The Governor’s order highlighted the Supreme Court’s Johnson decision and encouraged local governments to act “with urgency” to remove encampments from public spaces, “prioritizing those encampments that most threaten the life, health, and safety of those in and around them.” On May 12, 2025, the Governor released a “Model Ordinance: Addressing Encampments with Urgency and Dignity.” City Staff regularly field complaints from business owners, property owners, and residents regarding the impacts of illegal camping on public and private property. The current Municipal Code provisions that address camping in Watsonville were enacted in 1987. One of the key actions identified under the

2 Policy & Budget section of the City’s 2025 Homelessness Strategic Plan was to update the City’s Camping Ordinance.

The City is obligated to protect public health and safety, and its natural resources, by maintaining clean, safe, and accessible City properties for all residents to enjoy, including parks, open spaces, and the public right-of-way.

DISCUSSION:

Currently, the Public Works Field Services Utility Crew performs cleanups of illegal campsites and litter/debris removal throughout the City on a weekly basis, mainly on our levee system, waterways and trail system. Those cleanups are necessary to address public safety, public health, and environmental concerns. The City currently provides written 72-hour Notices to Vacate prior to all encampment cleanups. While those cleanups take place, the Utility Crew is accompanied by a Police Officer who ensures the campsites are vacated, and the Officer remains on-site for the safety of the crew while the cleanup work is being done. When campsites are vacated in the slough areas prior to the Utility Crew’s work commencing, campers will often simply move all of their belongings to a new area of the slough outside of the daily work zone to establish a new campsite, which requires the issuance of a separate 72-hour Notice to Vacate.

To address these circumstances, staff recommends the City establish and codify our Municipal Code “No Encampment Zones” in the City. The addition of “No Encampment Zones” would allow the City to be more efficient during encampment cleanups while providing better protection for sensitive or critical infrastructure, discrete areas, or landmarks of historical, cultural, or ecological significance. “No Encampment Zones” would be designated on zone maps for each particular area, and would have signage posted warning that camping is strictly prohibited there. If someone were to set up a campsite within that zone, the City could clean the campsite without any further notice. Information on how and where to collect retained belongings would be included on the signage. Many of the signs would be affixed to existing poles and gates. The recommended “No Encampment Zones” are designated on a map attached as an exhibit. If Council moves forward with this Ordinance, staff will bring back the map for adoption by resolution at the second reading of the Ordinance. Staff have also updated the Public Works Department’s procedures for cleaning encampment sites to align with the Governor’s Order and Model Ordinance. The updated policy is also attached as an exhibit. “No Encampment Zones” can only be established on City-owned properties; trespassing laws already exist for private property, and Trespass Letters are offered by our Police Department for property owners. Other City-owned properties that are not designated as “No Encampment Zones” would default to the existing 72-hour Notice to Vacate, if campsites are encountered on them.

We are recommending the City Council to designate the City-owned portions of our levee system, waterways, trail system, and the City Plaza Gazebo and Fountain on the attached map as “No Encampment Zones.” Additionally, we recommend that the City Council allow the designation of “No Encampment Zones” around homeless shelters or low-barrier navigation centers, as needed, to preserve the physical accessibility, sanitation, safety, and orderly operations of such facilities.

Consistent with the Supreme Court’s Johnson decision, Governor Newsom’s Executive Order N-1-24 and Model Ordinance, and other applicable laws, the purpose of this Ordinance is to modernize and clarify

3 the City’s ability to help protect the public health, safety and welfare to the fullest extent as authorized by law.

The recommended ordinance updates Watsonville Municipal Code, Title 5-Public Welfare, Morals and Conduct, Chapter 36 Camping as follows (Additions are reflected by underline, and deletions are reflected by strikethrough):

Chapter 36

CAMPING
Sections:
5-36.01 Camping prohibited.
5-36.02 Camping permittedProcedures for Enforcement.
5-36.03 Special eventsExceptions.
5-36.04 Penalties: Single offenses.
5-36.05 Penalties: Subsequent offenses within 48 hours. 5-36.01 CAMPING PROHIBITED.

It shall be unlawful for any person to camp anywhere in the City, whether on public or private property, except as expressly permitted in this chapterChapter. For the purposes of this sectionChapter, “to camp” shall mean to do any of the following:
(a) Sleeping or reposing: 6.00 p.m. to 8:00 a.m. To sleep or repose at any time between the hours of 6:00 p.m. and 8:00 a.m. in any of the following places or manners:
(1) Outdoors with or without bedding, tent, hammock, or other similar protection or equipment; (2) In, on, or under any structure not intended for human occupancy, whether with or without bedding, tent, hammock, or other similar protection or equipment; and (3) In, on, or under any parked vehicle, including an automobile, bus, truck, camper, trailer, or recreational vehicle; To construct, place, or maintain on any semi-permanent structure, including but not limited to hand-built sheds and structures with metal or other heavy roofing and siding materials, for the purpose of sheltering one or more persons. (b) To set up bedding: 6.00 p.m. to 8:00 a.m. To establish or maintain outdoors or in, on, or under any structure not intended for human occupancy, at any time between the hours of 6:00 p.m. and 8:00 a.m., a temporary or permanent place for sleeping by setting up any bedding, sleeping bag, blanket, mattress,

4 tent, hammock, or other sleeping equipment in such a manner as to be immediately usable for sleeping purposes; and To use, place or maintain a tent, sleeping bag, blanket, or other materials for the purpose of sleeping, lying, or sheltering one or more persons. Camping shall be deemed to occur regardless of whether a full night is actually spent occupying any specific location. (c) Setting up camp sites anytime. To establish or maintain outdoors or in, on, or under any structure not
intended for human occupancy, at any time during the day or night, a temporary or permanent place for cooking or sleeping by setting up any bedding, sleeping bag, blanket, mattress, tent, hammock, or other sleeping equipment, or by setting up any cooking equipment, with the intent to remain in such location overnight. To engage in any digging or earth-breaking activities for the purpose of creating or improving a
shelter.
(d) To store or leave unattended personal property on public property, including but not limited to clothing, sleeping bags, bedrolls, blankets, sheets, luggage, backpacks, tents, kitchen utensils, and cookware.
(e) To make or use any fire, for purpose of heating or cooking, or using any flame, grill, portable stove, or similar flame producing device for cooking of meals on public property, except for in City parks with designated barbeque and cooking areas while using City provided cooking facilities designed for such purposes. (f) To sleep or repose at any time in, on, or under any parked vehicle, including an automobile, bus, truck, camper, trailer, or recreational vehicle.
5-36.02 CAMPING PERMITTEDPROCEDURES FOR ENFORCEMENT.

Camping shall be permitted in the City only in the following circumstances:
(a) Camping in public areas specifically set aside and clearly marked for public camping purposes as provided in Section 10-2.11 of Chapter 2 of Title 10 of this Code;

5 (b) Camping events sponsored and conducted by and under the direction and control of the Recreation Department;
(c) Camping events authorized by the Council pursuant to Section 5-36.03 of this chapter; and (d) Camping on private property when such person is the property owner, tenant in possession, lineal relative to the property owner or tenant in possession, or holds in immediate possession a written consent issued by the property owner or tenant in possession. Such person shall present the written consent for examination upon the demand of any peace officer enforcing the provisions of this chapter.

No camping on private property shall exceed fourteen (14) consecutive days or be permitted more than once within any ninety (90) day period of time.

In addition to penalties imposed by Sections 5-36.04 and 5-36.05, violations of this Chapter shall be enforced in accordance with this Section.
(a) Definitions. For purposes of this Section, the following definitions apply:
(1) “Enforcement officer” means any city employee designated by the City Manager or their designee.
(2) “Exigent circumstances” means circumstances involving an imminent threat to life, safety, health, or infrastructure.
(3) “Personal property” means:
(i) Non-perishable items with an apparent value of $50 or more; and (ii) Non-perishable items with apparent personal value, including, but not limited to: eyeglasses, operational wheelchairs, walkers, crutches, other medical equipment, habitable tents, personal papers (such as photographs, albums, forms of identification, bank statements, and legal papers), backpacks, containers, and operational bicycles, scooters, and strollers. (b) Pre-Enforcement Notice.
(1) Except in exigent circumstances or within zones established pursuant to Section 5-

36.02(e), the enforcement officer shall provide at least 72 hours of pre-enforcement notice by either serving the notice to any readily apparent owner or posting written notices on or near any personal property left unattended on public property. Where exigent circumstances require less

6 than 72 hours pre-enforcement notice, the enforcement officer shall provide as much advance notice of enforcement as reasonably possible under the circumstances.

Where there is no readily apparent owner, the pre-enforcement notice shall be conspicuously posted in at least two locations on or around the personal property, such as on the property itself or on nearby telephone poles. The enforcement officer shall return at the time and date specified in the pre-enforcement notice to collect and impound any remaining unattended personal property pursuant to Section 5-36.02(c).
(2) The pre-enforcement notice shall feature large print and state the following:
(i) The anticipated time and date of the enforcement action; (ii) Information on local housing and shelter resources; (iii) An advisement that impounded personal property will be discarded after sixty (60) days if not claimed; an
(iv) An advisement that there are no fees imposed for storage or retrieval of personal property and that the property owner assumes the risk of any loss or damage to the impounded property.
(c) Impoundment of Personal Property.
(1) The enforcement officer shall provide any readily apparent owner of personal property thirty (30) minutes to remove their personal property from public property. After thirty (30) minutes, any personal property remaining on public property shall be collected, tagged, and stored for sixty (60) days following an enforcement action. (2) The Public Works Director shall establish written policies and procedures for the collection and impoundment of personal property pursuant to this Section. (d) Post-Enforcement Notice.

After impounding personal property pursuant to this Section, the enforcement officer shall immediately provide a post-enforcement notice to the readily apparent owner, or conspicuously post a postenforcement notice at the location where impounded personal property was located. Where exigent circumstances prevent the enforcement officer from immediately leaving a post-enforcement notice, the enforcement officer shall provide a post-enforcement notice in accordance with this Section as soon as possible once the exigent circumstances have subsided.

7 The post-enforcement notice shall feature large, conspicuous print and state the following:
(1) The location of where the personal property was located; (2) The date and time notice was served or posted;
(3) An advisement that the City has impounded the personal property, and that the personal property will be discarded after sixty (60) days if not claimed; (4) The impoundment facility’s name, address, phone number, and operating hours; (5) An advisement that there are no fees imposed for storage or retrieval of personal property and that the property owner assumes the risk of any loss or damage to the impounded property;
(6) Information on local housing and shelter resources. (e) Designation of “No Encampment Zones.”
The City may designate “No Encampment Zones” around (1) sensitive or critical infrastructure or discrete areas or landmarks of historical, cultural, or ecological significance in order to protect such infrastructure, areas, or landmarks; or (2) homeless shelters or low barrier navigation centers in order to preserve the physical accessibility, sanitation, safety, and orderly operations of such facilities. All individuals within “No Encampment Zones” will be considered to have received pre-enforcement notice and post-enforcement notice pursuant to this Section and may be subject to an immediate enforcement action pursuant to Section 5-36.02(c).

Either within and/or around the entrance(s) to such zones, the City shall post conspicuous signs that describe or illustrate the bounds of the zone. Such signs shall contain the following:
(1) An advisement that camping within the zone is subject to immediate enforcement; (2) An advisement that impounded personal property will be discarded if not claimed within sixty (60) days;
(3) The impoundment facility’s name, address, phone number, and operating hours; (4) The information a claimant must provide in order to reclaim personal property from the impoundment facility;

8 (5) An advisement that there are no fees imposed for storage or retrieval of personal property and that the property owner bears the risk of any loss or damage to the impounded property;
(6) Information on services, including shelter, that are immediately available. 5-36.03 SPECIAL EVENTSEXCEPTIONS.

The Council, by resolution, may authorize overnight camping on City-owned property as a special event sponsored by a nonprofit community service organization. Any organization seeking such authority from the Council shall file with the Director of Recreation a written request setting forth detailed information concerning the proposed event. The Director of Recreation may require certain additional information in writing as deemed necessary or appropriate for the evaluation of the request. When complete information has been submitted, the Director of Recreation shall confer with the City Manager, and they shall jointly prepare and submit to the Council a report with their recommendations for approval, conditional approval, or denial of the request.

This Chapter shall not apply in the following circumstances:
(a) Camping in public areas specifically set aside and clearly marked for camping purposes; (b) Camping events sponsored and conducted by and under the direction and control of the Parks and Community Services Department;
(c) Camping on private property when activity is undertaken by the property owner, tenant in possession, lineal relative to the property owner or tenant in possession, or an individual who holds in immediate possession a written consent issued by the property owner or tenant in possession. Such person shall present the written consent for examination upon the demand of any peace officer enforcing the provisions of this Chapter. No camping on private property shall exceed fourteen (14) consecutive days or be permitted more than once within any ninety (90) day period of time. (d) When the Council, by resolution, authorizes overnight camping on City-owned property as a special event sponsored by a nonprofit community service organization. Any organization seeking such authority from the Council shall file with a written request with the Parks and Community Services Director or designee, setting forth detailed information concerning the proposed event.

The Parks and Community Services Director or designee may require certain additional information in writing as deemed necessary or appropriate for the evaluation of the request. When complete

9 information has been submitted, the Parks and Community Services Director shall confer with the City Manager, and they shall jointly prepare and submit to the Council a report with their recommendations for approval, conditional approval, or denial of the request. 5-36.04 PENALTIES: SINGLE OFFENSES.

Any person violating any section of this chapter shall be deemed guilty of an infraction and, upon conviction thereof, shall be punishable as provided in Chapter 2 of Title 1 of this Code. 5-36.05 PENALTIES: SUBSEQUENT OFFENSES WITHIN 48 HOURS.

Notwithstanding the provisions of Chapter 2 of Title 1 of this Code, any person violating any section of this chapter, and who is cited for such violation, and who, within forty-eight (48) hours after receiving such citation, again violates the same section shall be deemed guilty of a misdemeanor.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

This ordinance is exempt from the California Environmental Quality Act (“CEQA”) because the ordinance does not qualify as a project and will not result in a direct or reasonably foreseeable indirect physical change in the environment. (CEQA Guidelines, §§15060, subds. (c)(2), (c)(3), 15061, subd. (b)(3)).

STRATEGIC PLAN:

Efficient and Well-performing Government
Infrastructure & Environment
Public Safety
FINANCIAL IMPACT:

About one-hundred (100) custom signs would need to be posted within the recommended “No Encampment Zone” areas to advise anyone entering them that camping is strictly prohibited there. The signs have a general cost of about $250 each, which would come to a total of $25,000 and would be funded by Measure R – Trail Maintenance Budget, account 201-975-7837-15154. The signs would be installed by our Public Works crew.

ALTERNATIVE ACTION:

The City Council could choose to not implement this ordinance at this time; our enforcement and cleanup efforts would remain the same as they have been for the past decade or so.

ATTACHMENTS AND/OR REFERENCES (IF ANY):

1. Map of Recommended No Encampment Zones

1 2. Bi-Lingual Encampment 72-Hour Notice to Vacate

3. Public Works Encampment Site Cleanup Policy (updated)

Attachment 1

City of Watsonville

PUBLIC WORKS & UTILITIES DEPARTMENT
1 WARNING

YOU ARE HEREBY NOTIFIED TO VACATE AND CLEAN UP
PROPERTY LOCATION: DATE OF CLEAN UP:

DATE POSTED: Click or tap here to enter text.

POSTED BY: PUBLIC WORKS
CONTACT INFORMATION: QUESTIONS & PROPERTY 831-768-3133 – POLICE 831-471-1151 THIS NOTICE IS YOUR OPPORTUNITY TO COLLECT YOUR ITEMS AND RELOCATE.

Nature and Purpose of Cleanup: The City of Watsonville (“City”), will clear:
___________________________________________________________________ (“Property”) of vehicles, personal property, and persons in violation of the following City and State regulations: Watsonville Municipal Code (“WMC”) Title 5, Chapter 36, and California Penal Code Sections 647(e) and 602(m).

The unauthorized use of City of Watsonville property for camping purposes and the storage of personal property thereon has been determined to pose serious health, welfare and safety risks to the persons living in the encampment.

WARNING: You are ordered to vacate the property as soon as possible and no later than XXXXXX XX, XXXX, at 7 a.m. Any items or belongings remaining on this property at this time will be collected, removed from the property, and any person remaining on this property at that time may be cited or arrested.

Items with an apparent value of $50 or more and items of apparent personal value will be collected and stored. There are no fees imposed for storage or retrieval of personal property. The property owner assumes all risk of any loss or damage to the impounded property. Property that is unsafe, hazardous, or perishable will be discarded. You may retrieve collected and stored personal property at 320 Harvest Dr., Watsonville, CA 95076 between 8 a.m. and 3:30 p.m., Monday through Friday. Property that is not claimed within 60 days will be permanently disposed. To retrieve your property, you must provide proof of ownership by (1) describing the location where your property was when it was collected, (2) the date and time it was collected, and/or (3) a description of the specific items that were collected.

You are encouraged to call or visit the contacts in the attached resource list. To the extent you require assistance in locating resources, such as shelter, the City and/or other agencies may be able to assist you.

Attachment 2

City of Watsonville

PUBLIC WORKS & UTILITIES DEPARTMENT
2 ADVERTENCIA

POR LA PRESENTE SE LE NOTIFICA QUE DEBE DESALOJAR Y LIMPIAR UBICACIÓN DE LA PROPIEDAD: FECHA DE LA LIMPIEZA:

FECHA DE PUBLICACIÓN Click or tap here to enter text.

PUBLICADO POR DEPARTAMENTO DE OBRAS PÚBLICAS
INFORMACIÓN DE CONTACTO: PREGUNTAS Y PROPIEDAD 831-768-3133 – POLICÍA 831-471-1151 ESTE AVISO ES SU OPORTUNIDAD DE RECOGER SUS ARTÍCULOS Y REUBICARSE.

Naturaleza y propósito de la limpieza: La Ciudad de Watsonville (“Ciudad”) limpiará:
_______________________________________________________________________________ (“Propiedad”) de vehículos, propiedad personal y personas que infrinjan las siguientes regulaciones de la Ciudad y del Estado: Código Municipal de Watsonville (“WMC”) Título 5, Capítulo 36, y Código Penal de California Secciones 647(e) y 602(m).

Se ha determinado que el uso no autorizado de la propiedad de la ciudad de Watsonville para acampar y el almacenamiento de pertenencias personales en ella representan graves riesgos para la salud, el bienestar y la seguridad de las personas que viven en el campamento.

ADVERTENCIA: Se le ordena desalojar la propiedad lo antes posible y, a más tardar, el XX de XXXXXXXX de XXXX a las 7 a. m. Cualquier objeto o pertenencia que permanezca en la propiedad en ese momento será recogido y retirado, y cualquier persona que permanezca en la propiedad en ese momento podrá ser multada o arrestada.

Los artículos con un valor aparente de $50 o más, así como los de valor personal aparente, serán recogidos y almacenados. No se cobran tarifas por el almacenamiento ni por la recuperación de los bienes personales. El propietario de los bienes asume todo riesgo de pérdida o daño que los artículos incautados puedan sufrir. Los bienes que sean inseguros, peligrosos o perecederos serán desechados. Usted puede recuperar los bienes personales recogidos y almacenados en el 320 de Harvest Dr., Watsonville, CA 95076, a partir de las 8 a. m. y las 3:30 p. m., de lunes a viernes. Todo bien que no sea reclamado dentro de un plazo de 60 días será desechado de forma permanente. Para recuperar sus pertenencias, deberá presentar pruebas de su titularidad mediante: (1) la descripción del lugar donde se encontraban sus bienes al momento de su recogida; (2) la fecha y hora en que fueron recogidos; y/o (3) una descripción de los artículos específicos recogidos.

Attachment 2

City of Watsonville

PUBLIC WORKS & UTILITIES DEPARTMENT
3 Le recomendamos que llame o visite a los contactos que figuran en la lista de recursos adjunta. En caso de que requiera asistencia para localizar recursos —tales como refugio—, la Ciudad y/u otras agencias podrían brindarle ayuda.

Attachment 2

4914-0763-6381 v2

PUBLIC WORKS AND UTILITIES DEPARTMENT │ POLICY AND PROCEDURES

CITY OF WATSONVILLE
I. PURPOSE AND APPLICABILITY
The Field Services Division (FSD) is tasked with cleaning up and maintaining City-owned open spaces, protected habitats, and several waterways. This Policy sets forth the procedures governing cleanups of illegal dumping and encampment sites undertaken by FSD Staff (Staff) as part of the City’s enforcement of Watsonville Municipal Code (WMC) Title 5, Chapter 36 and Title 10, Chapter 1, Section 10-1.050(o).

This Policy applies to all Staff and is intended to provide Staff with an understanding of their job scope and responsibilities in relation to encampment site cleanups. This Policy divides tasks and procedures into three categories: Pre-Cleanup Tasks (Section II), Cleanup Tasks (Section III), and Post-Cleanup Tasks (Section IV).

This Policy prescribes certain notice procedures for the cleanup of encampments outside of No Encampment Zones; for sites outside of No Encampment Zones that constitute both an illegal dumpsite and an encampment, Staff shall apply the notice procedures applicable to encampments. Illegal dumpsites are characterized by the presence of large, high-volume, or bulk waste, including industrial waste, construction debris, tires, electronic waste, old furniture, and hazardous materials (paints, chemicals). Encampments are characterized by signs of present or recent human occupation, including the presence of tents, food waste, household trash, and items constituting “personal property” as defined under Section III of this Policy.

Prior to undertaking any cleanup, Staff should verify that all pre-cleanup tasks have been completed accordance with this Section. Staff is not permitted to store, discard, or otherwise remove personal property from encampments without following the procedures outlined in this Policy.

II. PRE-CLEANUP TASKS
Establish Cleanup Teams, Review Team Guidelines, and Individual Team Member Responsibilities Staff should establish cleanup teams of 2 to 5 people. A staff member will be assigned to serve as an Incident Commander for each cleanup team. The Incident Commander is responsible for:
 Ensuring that the cleanup team completes all necessary tasks and operates according to the procedures set out in this Policy;
 Carrying the radio, camera, work phone when out in the field; to complete on site documentation.

Date Created: 11/1/2017

FIELD SERVICES DIVISION
Created By: John Moreno
Revised Date: 6/16/2026
Encampment Site Cleanup Policy
Approved By: Director of Public Works
Attachment 3

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PUBLIC WORKS AND UTILITIES DEPARTMENT │ POLICY AND PROCEDURES

CITY OF WATSONVILLE
 Coordinating with the Police Department (PD), when necessary, throughout the cleanup process.

Conduct Site Assessment and Identify Site Classification At least 72 hours prior to the cleanup, two Staff members will visit the site to complete a Site Assessment. The Site Assessment will be completed on the workorder form. For the Site Assessment, Staff will notate the following on the workorder form:
 Whether the site constitutes an encampment, illegal dumpsite, or both;  The type and amount of equipment needed for the cleanup;  Whether any graffiti cleanup is needed;
 Whether there is overgrown vegetation on the property;  Whether property and fencing repairs are necessary;
 Whether weed abatement is necessary;
 Any other relevant information.

Order Necessary Equipment
Requests for dumpsters shall be placed with Customer Service when completing site assessment.

Review Applicable Vegetation Management Guidelines and Contact Proper Authorities, If Applicable If Staff anticipates that the cleanup will involve any brush clearing, Staff should review and be prepared to follow the guidelines established by the Storm Water and Watsonville Wetlands Trail System Vegetation Management and Maintenance Manual. For significant brush clearing, Staff should call Watsonville Wetlands Watch staff to complete a wildlife monitoring assessment.

Deliver Pre-Cleanup Notice to Encampments Outside of a “No Encampment Zone” At least 72 hours prior to the cleanup of an encampment located outside of a “No Encampment Zone,” two Staff members will visit the encampment and do the following:
 Post the standard “Notice to Vacate” and “Watsonville Resources List” forms (Notices) in at least two conspicuous areas; and
 Take pictures of the posted Notices and ensure that such pictures are dated and time stamped.

Staff should carry extra copies of the Notices to hand directly to any campers present at the site. If campers request assistance or resources, Staff should refer them to the PD Homeless Resource List, the 2-1-1 hotline, or partner agencies.

Attachment 3

4914-0763-6381 v2

PUBLIC WORKS AND UTILITIES DEPARTMENT │ POLICY AND PROCEDURES

CITY OF WATSONVILLE
Print Post-Enforcement Notice(s) for Cleanups Outside of “No Encampment Zones” If the encampment is located outside the boundaries of a “No Encampment Zone,” Staff must provide campers with a standard Post-Enforcement Notice upon collecting their property. If there is no readily apparent owner of collected property, Staff must post a Post-Enforcement Notice at location where the property was located.

Review Safety Protocols for Encampment Cleanups
Prior to going out into the field for an encampment cleanup, Staff should review the following safety protocols:
 Follow HAZWOPER policy and procedure
 Follow Bloodborne pathogen exposure control plan
 Follow Workplace violence prevention program
 Follow Vehicle use policy and Commercial Driver License laws and regulations  Follow temporary Traffic Control laws and regulations  Follow Sharps safety training
 Follow CA boating laws and regulations
 Follow working over or near water safety training
 Follow all heavy equipment specific training including all safety operation, inspections and maintenance per the manual
 Establish a work zone and keep all non-staff out of work zone  Don’t unload or start clean up if work zone is unsafe. Wait for police to clear work zone.  Never enter or work within an encampment alone, regardless of whether it is occupied.  Never conduct a cleanup in an occupied encampment site unless a Police Officer has cleared it.  When navigating and cleaning up encampments, remain aware of one’s surroundings and keep an eye out for holes, uneven terrain, slippery conditions, and overhead hazards.  For unoccupied encampments, if campers return and a Police Officer is not present, staff must leave the site and request a Police Officer to standby by calling the non-emergency Police dispatch number: 831-471-1151.
 Staff should call 911 for any emergency.

Attachment 3

4914-0763-6381 v2

PUBLIC WORKS AND UTILITIES DEPARTMENT │ POLICY AND PROCEDURES

CITY OF WATSONVILLE
III. CLEANUP TASKS
Inspect Vehicles
Prior to being taken out into the field:
 The dump truck, front loaders, excavators, or other equipment all must be inspected before being taken into the field, and such inspections will be recorded on inspection forms and/or the required commercial driver’s vehicle inspection report.  Trailers must be inspected to ensure that the electrical, tires, mounting equipment, jack, and doors are functioning, and such inspection will be recorded on the appropriate inspection form.

Drive Vehicles
Staff may only use equipment which they have been trained on how to operate and are licensed to use (when applicable).

Only Staff with a Class A or B commercial driver’s license may operate commercial vehicles. Only trained Staff may operate and transport loaders, excavators, container trucks, and other heavy equipment.

Off-road driving should remain at a maximum speed of 5 mph. 4 x 4 gear should be used in sandy or muddy areas and removed when driving on the paved road. When in low visibility or backing up any vehicle, Staff must be guided by another Staff member.

Unload Equipment and Set-Up
Incident commanders will distribute personal protective equipment (PPE) and personal cleanup equipment to their teams, including garbage cans lined with garbage bags, a garbage picker, and/or any necessary landscaping equipment (chainsaw, hedge trimmer, loppers etc.). All cleanup team members must wear the following PPE at all times during the cleanup:
 Puncture/Cut Resistant Gloves
 Eye Protection
 Steel toed boots or rubber boots
 Safety Vest
 Hard Hat
 Disposable coveralls
 Other protective gear, as appropriate
Take Pre-Cleanup Photos
Staff shall take pictures of the condition of the site prior to cleanup and ensure that such photos are dated and time stamped.

Attachment 3

4914-0763-6381 v2

PUBLIC WORKS AND UTILITIES DEPARTMENT │ POLICY AND PROCEDURES

CITY OF WATSONVILLE
For All Encampments: Collect and Tag Personal Property
Police officer will clear the Work Zone and follow the Impoundment of Personal Property section.

Staff must collect and tag any personal property remaining on public property. Personal property will be stored at the Municipal Service Center (MSC) for 60 days. Staff may rip open any garbage bags found at the cleanup site so that Staff can sort through the contents and determine whether it contains collectable personal property. Staff shall place any collectable property into a new trash bag. “Personal property” includes:
 Items of apparent value of $50 or more; and
 Items of apparent personal value, including, but not limited to: eyeglasses, operational wheelchairs, walkers, crutches, other medical equipment, habitable tents, personal papers (such as photographs, albums, ID's, bank statements, and legal papers), backpacks, containers, operational bicycles, scooters, suitcases, duffle bags, and strollers.

Staff shall place a tag on collected personal property and issue a receipt. Both the tag and receipt shall contain the following information: an identification number, a description of the property, the date and location of collection, and the initials of the staff member who collected item.

If the readily apparent owner of collected personal property is present, Staff shall provide the owner with either a receipt, or a post-enforcement notice. If there is no readily apparent owner of collected personal property, Staff shall (1) file the place receipt and conspicuously post a post-enforcement notice at the location where collected personal property was removed from. Where exigent circumstances prevent Staff from immediately leaving a post-enforcement notice outside of a No Encampment Zone, Staff shall provide a post-enforcement notice as soon as possible once the exigent circumstances have subsided.

Stored items will be discarded after 60 days. If an item is discarded, Staff shall note on the item’s receipt that it was discarded. Receipts shall be filed and stored in the office.

Remove Structures, Sort Materials, and Load Up Container(s)/Vehicle(s) Staff should remove structures and sort materials into separate piles. Heavy equipment should be used to pick up the piles and load them onto the designated container/vehicle.

Except for mattresses and shopping carts, Staff will sort and separate materials into the following categories:
 Garbage
 Construction Debris
 Clean wood
 Metal
Attachment 3

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PUBLIC WORKS AND UTILITIES DEPARTMENT │ POLICY AND PROCEDURES

CITY OF WATSONVILLE
 Recyclables
 Clean cardboard
 Household hazardous materials
If placing materials in a garbage bag, Staff should ensure that bags are not packed too heavily. Garbage bags must be light enough to be easily picked up and tossed into vehicles/containers. To avoid tearing and contact with body. Be cautious of unknown pre-filled bags that may contain sharps or hazardous chemicals.

Staff must remove, count, and record mattresses on both the workorder form and the mattress form provided by the Public Drop-Off (PDO) at the MSC.

Damaged or shopping carts full of garbage should be picked up and taken to the PDO and disposed of according to PDO’s instructions. Empty shopping carts must be removed from site and placed near sidewalks or trail entrances. Once removed and placed elsewhere, make note of the location and number of carts, and call the contractor for pick up.

Dispose of Trash, Debris, or Immediate Threats to Public Health or Safety Staff should dispose of any items that are perishable or constitute trash, debris, or an immediate threat to public health or safety. Items that constitute an immediate threat to health or safety include, but are not limited to:
 Toxic sharps: needles, scissors, knives;
 Chemicals: bleach, paint, oils, etc.;
 Items (including bedding and clothing) soiled by infectious materials, including human waste and bodily fluids;
 Moldy, mildewed items;
 Items that may be infested by rodents and insects, including rats, mice, fleas, lice, bed bugs;  Items that pose a risk of fire or explosion, combustibles and propane tanks; batteries; any item containing fuel or corrosives or other unidentified liquids;  Illegally dumped, stored, or abandoned vehicles or items that require special handling will be reported to police officer for removal or disposal.

If personal property is co-mingled or littered with needles, human waste, or other immediate health or safety risks, the entire pile of property may be disposed of. The presence of clothing in a backpack or container shall not be the sole reason to discard the backpack or container.

Items that constitute evidence of a crime or contraband may be seized by police officer.

Attachment 3

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PUBLIC WORKS AND UTILITIES DEPARTMENT │ POLICY AND PROCEDURES

CITY OF WATSONVILLE
Protocols for Handling Items That Are a Threat to Public Health and Safety Contraband and controlled substances should be handled by trained professionals and consistent with applicable law. Both HAZWOPER and bloodborne pathogen procedures must be followed at all times during cleanups. Be aware of training limitations and be ready to call 911 when needed.

All FSD vehicles must carry sharps containers. Staff must place any sharps found during a site cleanup inside the sharps container. Staff must replace sharps containers regularly. Once the sharps container is full, Staff shall take the container to hazardous materials section for proper disposal.

III. POST-CLEANUP TASKS
Conduct Post-Cleanup Site Assessment
Staff shall take pictures of the condition of the site after the cleanup, as well as pictures of the filled containers/vehicles, and ensure that such photos are dated and time stamped.

On the workorder form, Staff shall note how many yards of debris were picked up from the cleanup site.

Offload Materials
Staff shall follow PDO procedures when off-loading at the PDO when unloading trucks and trailers.

When in doubt of where to dump material, Staff should ask for clarification from PDO attendant Clean Equipment and Evaluate Damage and Inventory
Once Staff has arrived back to MSC after each site cleanup, Staff must:
 Complete post inspection for all equipment
 Wash and sanitize all equipment in the truck wash;
 Fill out a service order (shop pink slip) for any damage or necessary repairs to equipment and notify a supervisor of such damage or necessary repairs; and  Perform an inventory of supplies and materials and notify a supervisor of any supplies or materials that need to be re-stocked.

Attachment 3

1 Reso No. ______ (CM)
Reference: Ord. No. 722-87 (CM) (Amend)
Meeting Date: 062326 SWZ ______ TV ______ WPD ______
ORDINANCE NO. Introduction (CM)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE AMENDING CHAPTER 36 (CAMPING) OF TITLE 5
(PUBLIC WELFARE, MORALS AND CONDUCT) TO THE

WATSONVILLE MUNICIPAL CODE PERTAINING TO CAMPING
WHEREAS, the City of Watsonville (“City”) is authorized by California Constitution, Article XI, Section 7 to make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws; and WHEREAS, the City is committed to protecting the life, health, and safety of its residents and all people within the geographical boundaries of the City; and WHEREAS, City streets, sidewalks, and parks are intended for safe and sanitary shared use by a diverse community of users including businesses, government, and the general public for gathering, recreating, movement of people, maintenance, and cleaning, and are frequently used by people relying on a variety of mobility devices; and WHEREAS, the City is obligated to protect public health and safety and its natural resources by maintaining clean, safe, and accessible City properties for all residents to enjoy, including parks, open space, and the public right of way; and WHEREAS, on June 28, 2024, the U.S. Supreme Court issued its decision in Johnson v. City of Grants Pass, Oregon, where, among other things, the United States Supreme Court held that the Eighth Amendment does not prohibit cities from enforcing laws regulating camping on public property; and
WHEREAS, on July 25, 2024, Governor Gavin Newsom issued Executive Order N-1-24, that, among other things, explained that California is experiencing a homelessness crisis decades in the making, and highlighted the potential dangers

2 Reso No. ______ (CM)
Reference: Ord. No. 722-87 (CM) (Amend)
Meeting Date: 062326
associated with encampments, including subjecting unsheltered occupants to extreme weather, fires, predatory and criminal activity, and widespread substance abuse; and WHEREAS, the Governor’s order highlighted the Supreme Court’s Johnson decision and encouraged local governments to take action “with urgency” to remove encampments from public spaces, “prioritizing those encampments that most threaten the life, health, and safety of those in and around them;” and WHEREAS, Title 5, Chapter 36 of the Watsonville Municipal Code prohibits camping on public or private property, except as expressly authorized by that chapter; and
WHEREAS, consistent with the Supreme Court’s Johnson decision, Governor Newsom’s Executive Order N-1-24, and other applicable law, the purpose of this Ordinance is to modernize and clarify the City’s tools in order to help protect the public health, safety and welfare to the fullest extent as authorized by law.

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

SECTION 1. FINDINGS
The City Council of the City of Watsonville does hereby find that the above referenced recitals are true and correct and incorporated into this Ordinance.

SECTION 2. CHAPTER 36 OF TITLE 5 OF THE WATSONVILLE MUNICIPAL CODE Chapter 36, Camping of Title 5, is amended in its entirety to read as set forth in Exhibit A, attached hereto and incorporated herein by reference. Additions are reflected by underline, and deletions are reflected by strikethrough.

SECTION 3. ENVIRONMENTAL REVIEW

3 Reso No. ______ (CM)
Reference: Ord. No. 722-87 (CM) (Amend)
Meeting Date: 062326
The adoption of this Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the amendments to the camping regulations adopted by this Ordinance will have a significant effect on the environment, therefore the adoption of this Ordinance is not subject to CEQA.

SECTION 4. SEVERABILITY
If any section, subsection, sentence, clause or phrase or word of this Ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance.

SECTION 5. PUBLICATION
This ordinance shall be published in the Watsonville Register-Pajaronian and/or Santa Cruz Sentinel in compliance with the provisions of the Charter of the City of Watsonville.

SECTION 6. EFFECTIVE DATE
This Ordinance shall take effect thirty (30) days after passage by the City Council.

4 Reso No. ______ (CM)
Reference: Ord. No. 722-87 (CM) (Amend)
Meeting Date: 062326

EXHIBIT A
Chapter 36

CAMPING
Sections:
5-36.01 Camping prohibited.
5-36.02 Camping permittedProcedures for Enforcement.
5-36.03 Special eventsExceptions.
5-36.04 Penalties: Single offenses.
5-36.05 Penalties: Subsequent offenses within 48 hours. 5-36.01 Camping prohibited.

It shall be unlawful for any person to camp anywhere in the City, whether on public or private property, except as expressly permitted in this chapterChapter. For the purposes of this sectionChapter, “to camp” shall mean to do any of the following:
(a) Sleeping or reposing: 6.00 p.m. to 8:00 a.m. To sleep or repose at any time between the hours of 6:00 p.m. and 8:00 a.m. in any of the following places or manners:
(1) Outdoors with or without bedding, tent, hammock, or other similar protection or equipment; (2) In, on, or under any structure not intended for human occupancy, whether with or without bedding, tent, hammock, or other similar protection or equipment; and (3) In, on, or under any parked vehicle, including an automobile, bus, truck, camper, trailer, or recreational vehicle; To construct, place, or maintain on any semi-permanent structure, including but not limited to hand-built sheds and structures with metal or other heavy roofing and siding materials, for the purpose of sheltering one or more persons. (b) To set up bedding: 6.00 p.m. to 8:00 a.m. To establish or maintain outdoors or in, on, or under any structure not intended for human occupancy, at any time between the hours of 6:00 p.m. and 8:00 a.m., a temporary or permanent place for sleeping by setting up any bedding, sleeping bag, blanket, mattress, tent, hammock, or other sleeping equipment in such a manner as to be immediately usable for sleeping purposes; and To use, place or maintain a tent, sleeping bag, blanket, or other materials for the purpose of sleeping, lying, or sheltering one or more persons. Camping shall be deemed to occur regardless of whether a full night is actually spent occupying any specific location. (c) Setting up camp sites anytime. To establish or maintain outdoors or in, on, or under any structure not intended for human occupancy, at any time during the day or night, a temporary or permanent place for

5 Reso No. ______ (CM)
Reference: Ord. No. 722-87 (CM) (Amend)
Meeting Date: 062326
cooking or sleeping by setting up any bedding, sleeping bag, blanket, mattress, tent, hammock, or other sleeping equipment, or by setting up any cooking equipment, with the intent to remain in such location overnight. To engage in any digging or earth breaking activities for the purpose of creating or improving a shelter.
(d) To store or leave unattended personal property on public property, including but not limited to clothing, sleeping bags, bedrolls, blankets, sheets, luggage, backpacks, tents, kitchen utensils, and cookware.
(e) To make or use any fire, for purpose of heating or cooking, or using any flame, grill, portable stove, or similar flame producing device for cooking of meals on public property, except for in City parks with designated barbeque and cooking areas while using City provided cooking facilities designed for such purposes. (f) To sleep or repose at any time in, on, or under any parked vehicle, including an automobile, bus, truck, camper, trailer, or recreational vehicle.
5-36.02 Camping permittedProcedures for Enforcement.

Camping shall be permitted in the City only in the following circumstances:
(a) Camping in public areas specifically set aside and clearly marked for public camping purposes as provided in Section 10-2.11 of Chapter 2 of Title 10 of this Code; (b) Camping events sponsored and conducted by and under the direction and control of the Recreation Department;
(c) Camping events authorized by the Council pursuant to Section 5-36.03 of this chapter; and (d) Camping on private property when such person is the property owner, tenant in possession, lineal relative to the property owner or tenant in possession, or holds in immediate possession a written consent issued by the property owner or tenant in possession. Such person shall present the written consent for examination upon the demand of any peace officer enforcing the provisions of this chapter. No camping

6 Reso No. ______ (CM)
Reference: Ord. No. 722-87 (CM) (Amend)
Meeting Date: 062326
on private property shall exceed fourteen (14) consecutive days or be permitted more than once within any ninety (90) day period of time.

In addition to penalties imposed by Sections 5-36.04 and 5-36.05, violations of this Chapter shall be enforced in accordance with this Section.
(a) Definitions. For purposes of this Section, the following definitions apply:
(1) “Enforcement officer” means any city employee designated by the City Manager or their designee.
(2) “Exigent circumstances” means circumstances involving an imminent threat to life, safety, health, or infrastructure.
(3) “Personal property” means:
(i) Non-perishable items with an apparent value of $50 or more; and (ii) Non-perishable items with apparent personal value, including, but not limited to:
eyeglasses, operational wheelchairs, walkers, crutches, other medical equipment, habitable tents, personal papers (such as photographs, albums, forms of identification, bank statements, and legal papers), backpacks, containers, and operational bicycles, scooters, and strollers. (b) Pre-Enforcement Notice.
(1) Except in exigent circumstances or within zones established pursuant to Section 5-

36.02(e), the enforcement officer shall provide at least seventy-two (72) hours of pre-enforcement notice by either serving the notice to any readily apparent owner, or posting written notices on or near any personal property left unattended on public property. Where exigent circumstances require less than seventy-two (72) hours pre-enforcement notice, the enforcement officer shall provide as much advance notice of enforcement as reasonably possible under the circumstances.

Where there is no readily apparent owner, the pre-enforcement notice shall be conspicuously posted in at least two locations on or around the personal property, such as on the property itself or on nearby telephone poles. The enforcement officer shall return at the time and date specified in the pre-enforcement notice to collect and impound any remaining unattended personal property pursuant to Section 5-36.02(c).
(2) The pre-enforcement notice shall feature large print and state the following:

7 Reso No. ______ (CM)
Reference: Ord. No. 722-87 (CM) (Amend)
Meeting Date: 062326
(i) The anticipated time and date of the enforcement action; (ii) Information on local housing and shelter resources; (iii) An advisement that impounded personal property will be discarded after sixty (60) days if not claimed; an
(iv) An advisement that there are no fees imposed for storage or retrieval of personal property and that the property owner assumes the risk of any loss or damage to the impounded property.
(c) Impoundment of Personal Property.
(1) The enforcement officer shall provide any readily apparent owner of personal property thirty (30) minutes to remove their personal property from public property. After thirty (30) minutes, any personal property remaining on public property shall be collected, tagged, and stored for sixty (60) days following an enforcement action. (2) The Public Works Director shall establish written policies and procedures for the collection and impoundment of personal property pursuant to this Section. (d) Post-Enforcement Notice.

After impounding personal property pursuant to this Section, the enforcement officer shall immediately provide a post-enforcement notice to the readily apparent owner, or conspicuously post a post-enforcement notice at the location where impounded personal property was located.

Where exigent circumstances prevent the enforcement officer from immediately leaving a postenforcement notice, the enforcement officer shall provide a post-enforcement notice in accordance with this Section as soon as possible once the exigent circumstances have subsided.

The post-enforcement notice shall feature large, conspicuous print and state the following:
(1) The location of where the personal property was located; (2) The date and time notice was served or posted;
(3) An advisement that the City has impounded the personal property, and that the personal property will be discarded after sixty (60) days if not claimed; (4) The impoundment facility’s name, address, phone number, and operating hours;

8 Reso No. ______ (CM)
Reference: Ord. No. 722-87 (CM) (Amend)
Meeting Date: 062326
(5) An advisement that there are no fees imposed for storage or retrieval of personal property and that the property owner assumes the risk of any loss or damage to the impounded property;
(6) Information on local housing and shelter resources. (e) Designation of “No Encampment Zones.”
The City may designate “No Encampment Zones” around (1) sensitive or critical infrastructure or discrete areas or landmarks of historical, cultural, or ecological significance in order to protect such infrastructure, areas, or landmarks; or (2) homeless shelters or low barrier navigation centers in order to preserve the physical accessibility, sanitation, safety, and orderly operations of such facilities. All individuals within “No Encampment Zones” will be considered to have received pre-enforcement notice and post-enforcement notice pursuant to this Section and may be subject to an immediate enforcement action pursuant to Section 5-36.02(c).

Either within and/or around the entrance(s) to such zones, the City shall post conspicuous signs that describe or illustrate the bounds of the zone. Such signs shall contain the following:
(1) An advisement that camping within the zone is subject to immediate enforcement; (2) An advisement that impounded personal property will be discarded if not claimed within sixty (60) days;
(3) The impoundment facility’s name, address, phone number, and operating hours; (4) The information a claimant must be provide in order to reclaim personal property from the impoundment facility;
(5) An advisement that there are no fees imposed for storage or retrieval of personal property and that the property owner bears the risk of any loss or damage to the impounded property;
(6) Information on services, including shelter, that are immediately available. 5-36.03 Special eventsExceptions.

The Council, by resolution, may authorize overnight camping on City-owned property as a special event sponsored by a nonprofit community service organization. Any organization seeking such authority from the Council shall file with the Director of Recreation a written request setting forth detailed information

9 Reso No. ______ (CM)
Reference: Ord. No. 722-87 (CM) (Amend)
Meeting Date: 062326
concerning the proposed event. The Director of Recreation may require certain additional information in writing as deemed necessary or appropriate for the evaluation of the request. When complete information has been submitted, the Director of Recreation shall confer with the City Manager, and they shall jointly prepare and submit to the Council a report with their recommendations for approval, conditional approval, or denial of the request.

This Chapter shall not apply in the following circumstances:
(a) Camping in public areas specifically set aside and clearly marked for camping purposes; (b) Camping events sponsored and conducted by and under the direction and control of the Parks and Community Services Department;
(c) Camping on private property when activity is undertaken by the property owner, tenant in possession, lineal relative to the property owner or tenant in possession, or an individual who holds in immediate possession a written consent issued by the property owner or tenant in possession. Such person shall present the written consent for examination upon the demand of any peace officer enforcing the provisions of this Chapter. No camping on private property shall exceed fourteen (14) consecutive days or be permitted more than once within any ninety (90) day period of time. (d) When the Council, by resolution, authorizes overnight camping on City-owned property as a special event sponsored by a nonprofit community service organization. Any organization seeking such authority from the Council shall file a written request with the Parks and Community Services Director or designee, setting forth detailed information concerning the proposed event.

The Parks and Community Services Director or designee may require certain additional information in writing as deemed necessary or appropriate for the evaluation of the request. When complete information has been submitted, the Parks and Community Services Director shall confer with the City Manager, and they shall jointly prepare and submit to the Council a report with their recommendations for approval, conditional approval, or denial of the request.
5-36.04 Penalties: Single offenses.

Any person violating any section of this chapter shall be deemed guilty of an infraction and, upon conviction thereof, shall be punishable as provided in Chapter 2 of Title 1 of this Code.

10 Reso No. ______ (CM)
Reference: Ord. No. 722-87 (CM) (Amend)
Meeting Date: 062326
5-36.05 Penalties: Subsequent offenses within 48 hours.

Notwithstanding the provisions of Chapter 2 of Title 1 of this Code, any person violating any section of this chapter, and who is cited for such violation, and who, within forty-eight (48) hours after receiving such citation, again violates the same section shall be deemed guilty of a misdemeanor.

June 22, 2026
Subject: Letter of Support for City of Watsonville’s Proposed Ordinance Modifying Camping
Dear City of Watsonville Councilmembers:

As the Executive Director of the Pajaro Regional Flood Management Agency (PRFMA), I am writing to share PRFMA’s support for the City of Watsonville’s proposed ordinance that will improve public safety and environmental conditions within the impacted waterways of the lower Pajaro River watershed.

PRFMA is a joint powers authority composed of five local jurisdictions: County of Monterey, County of Santa Cruz, City of Watsonville, Monterey County Water Resources Agency, and the Santa Cruz County Flood Control and Water Conservation District. PRFMA is responsible for overseeing the operation and maintenance of the levees that were constructed in 1949 by the US Army Corp of Engineers. As a JPA that operates under a limited annual fiscal budget, PRFMA’s primary function is to preserve the integrity of critical flood risk reduction infrastructure along the lower Pajaro River, including levees and floodway, to better protect the communities in the Pajaro Valley including the City of Watsonville. Illegal encampments along these watercourses pose both a public safety and environmental concern to the greater community, and compromise PRFMA’s ability to maintain this infrastructure.

PRFMA understands this proposed ordinance will support a more effective and streamlined approach to protect the Pajaro River within the City of Watsonville limits.

At the same time, this ordinance will provide the responsible public health and safety departments with the necessary additional tools to more promptly address illegal encampments.

Protecting the Pajaro River through effective enforcement of illegal encampments ensures PRFMA can continue to focus its efforts on necessary routine maintenance of the levee system and floodway. PRFMA is fully supportive of the City’s proposed ordinance change and will continue to effectively collaborate with the City to address the multi-faceted challenges posed by illegal camping in the Pajaro River and levee system. Should the Council have any additional questions for PRFMA, please feel free to contact me at [email protected].

Sincerely,
Dr. Mark Strudley
Executive Director

Introduction & First Reading of Ordinance
Modifying Camping Ordinance
Danielle Green – Public Works & Utilities Director
Radovan Radich – Police Captain
Erica Griggs – City Attorney's Office
June 23, 2026

Recommendation
Introduce for first reading only, waiving full reading of the text, modifications and additions to Title 5 - Public Welfare, Morals, and Conduct, Chapter 36 - Camping, to the Watsonville Municipal Code, to define restrictions specific to the camping in the City.

Background
June 2024: U.S. Supreme Court in City of Grants Pass, Oregon v. Johnson ruled that the Eighth Amendment does not prohibit cities from enforcing laws regulating camping on public property.

July 2024: Governor Newsom issued Executive Order N-1-24, recognizing California's homelessness crisis and the health and safety risks associated with encampments, encouraging local governments to humanely remove encampments from public spaces.

May 2025: The Governor released a "Model Ordinance: Addressing Encampments with Urgency and Dignity."

 Ongoing community concerns about illegal
camping
 Existing ordinance dates back to 1987
 Recommended action in the 2025 Homelessness
Strategic Plan
 Supports public health and safety, and the
environment, as well as access to parks, open
spaces, and public rights-of-way
Background – Cont’d

Discussion
 City crews conduct weekly encampment and debris
cleanups along levees, waterways, and trails
 Cleanups are necessary to address public safety,
public health, and environmental concerns
 The City provides a 72-hour Notice to Vacate before
each cleanup
 Police Officers on overtime accompany crews to
ensure sites are vacated and to provide security during cleanup operations
 Individuals often relocate nearby during and after a
cleanup, requiring a new notice and delaying
enforcement efforts Page 1381 of 1393
Focus on Public and Environmental Health
 The City is highly regulated by State and
Federal agencies to help ensure compliance
with the Clean Water Act and other laws
 Unfortunately, many encampments occur in
and around our sloughs, levees, or other
sensitive habitats that are directly
connected to waterways
 This ordinance update focuses on protecting
these natural resources and associated
infrastructure with ecological significance, and
areas of historical or cultural importance
 Protecting these habitats protects public
health

Proposed No Encampment Zone Details
"No Encampment Zones" Recommendation
 Designate zones around sensitive or critical infrastructure or discrete areas or landmarks of historical, cultural, or ecological significance in order to protect such infrastructure, areas, or landmarks
 These areas would be clearly marked with signs that include zone maps  Camping would be prohibited within these zones, allowing immediate cleanup without additional notice
 Signage would include shelter information, along with how to retrieve retained belongings  Applies only to City-owned property, not private property Areas Outside "No Encampment Zones"
 Existing 72-hour Notice to Vacate process would remain in place  Continue to follow current cleanup procedures
 Trespass Laws apply on Private Property: Trespass Letters are offered by PD

Discussion - Cont’d
Staff Recommendation
 Designate City-owned levees, waterways, sloughs, trails and the City Plaza Gazebo and Fountain as "No Encampment Zones"
 Final Zone Map would return to City Council for adoption by resolution at the second reading of the ordinance
 Allow future "No Encampment Zones" around homeless shelters or navigation centers, when needed, to maintain accessibility, sanitation, safety, and operations.  No shelter-related zones are currently proposed; any future additions would require Council approval of an updated Zone Map
 Public Works cleanup procedures have been updated to align with the Governor's Executive Order and Model Ordinance.

Modifications to Existing Ordinance
and Section by Section Status
Section Current Title Proposed Title Status
5-36.01 Camping Prohibited (Unchanged) Rewritten
5-36.02 Camping Permitted Procedures for
Enforcement
Renamed & Rewritten
5-36.03 Special Events Exceptions Renamed & Rewritten
5-36.04 Penalties – Single Offense (Unchanged) (Unchanged) 5-36.05 Penalties – Subsequent Offenses
Within 48 Hours
(Unchanged) (Unchanged)
Consistent with Supreme Court's Grants Pass decision, the Governor's guidance, and applicable laws, this ordinance modernizes and clarifies the City's ability to protect public health, safety, and the environment, while providing clear and effective tools for managing encampments and maintaining public spaces.

Modifications to Existing
Ordinance – Cont’d
5-36.01 CAMPING PROHIBITED
Consolidates existing regulations into a single, clearly defined section
Prohibited activities include:
• Constructing or maintaining shelters or semi-permanent structures • Using tents, sleeping bags, blankets, or similar materials for sleeping or shelter
• Digging or altering the ground to create or improve a campsite • Storing or leaving personal belongings unattended on public property
• Using fires for heating or cooking on public property outside designated areas
• Sleeping in parked vehicles, RVs, campers, trailers, or similar vehicles Page 1387 of 1393
Modifications to Existing
Ordinance – Cont’d
5-36.02 PROCEDURES FOR ENFORCEMENT
• Establishes formal enforcement and encampment cleanup procedures • Creates and defines "No Encampment Zones"
• Defines key terms, including Enforcement Officer, Exigent Circumstances, and Personal Property • Requires 72-hour notices before enforcement actions and provides housing and shelter resource information
• Establishes procedures for collecting, storing, and returning personal property • Requires post-cleanup notices explaining how to retrieve stored property • Provides individuals 30 minutes to remove personal belongings before collection • Collected property is tagged and stored for 60 days at no charge • Requires written Public Works policies for property impoundment and storage

Modifications to Existing
Ordinance – Cont’d
5-36.02 PROCEDURES FOR ENFORCEMENT
The City may designate "No Encampment Zones" around:
• Sensitive infrastructure and areas of historical, cultural, or ecological significance • Homeless shelters or navigation centers to maintain accessibility, safety, sanitation, and operations (none are proposed at this time)
How "No Encampment Zones" Work
• Posted signs clearly identify zone boundaries
• Individuals within these zones are considered to have received notice • Encampments may be subject to immediate enforcement and cleanup • Signage includes information on shelter services through 24/7 Santa Cruz County 2-1-1 resources

Draft Signage & Updated Notices to Vacate

Modifications to Existing Ordinance – Cont’d
 5-36.03 EXCEPTIONS
 Consolidates existing “Camping Permitted”
and “Special Events” sections under one
section. Removes references to old Parks
Municipal Codes that were revised/removed
in 2025.
 5-36.04 PENALTIES – SINGLE OFFENSE
 Unchanged
 5-36.05 PENALTIES – SUBSEQUENT
OFFENSES WITHIN 48 HOURS
 Unchanged

CEQA, Strategic Plan &
Fiscal Impact
 CEQA
 Ordinance is exempt from CEQA
 Strategic Plan Alignment
 Efficient & Well-Performing Government
 Infrastructure & Environment
 Public Safety
 Implementation Cost
 Approximately 100 signs required for No Encampment Zones  Estimated cost: $25,000 ($250 per sign)
 Funded through the Measure R Trail Maintenance Budget  Sign installation performed by Public Works crews Page 1392 of 1393 Questions?