Action Pajaro Valley Progress Report 2012 by SantaCruzSentinel

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									 Action Pajaro Valley
Progress Report 2012


             December 2012

                              Action Pajaro Valley   1
Action Pajaro Valley (APV) would like to thank the Advisory Board and the Board of
Directors for all their hard work.

2012 Board of Directors

Mark E. Myers             APV Co-Chair, Pajaro River Task Force Chair
Carlos Palacios           APV Co-Chair
Rachel Mayo               APV Secretary
Betty Bobeda              APV Treasurer
Al Walters                Growth Management Strategy Committee Co-Chair
Amy Newell                Director
Bob Culbertson            Director
Ellen Pirie               Director
Jorge Reguerin            Director
Gretchen Regenhardt       Director
Dobie Jenkins             Director
Martin Guerrero           Director
Lou Calcagno              Director
Kimberly Petersen         Director

                                                          Action Pajaro Valley   2
     Action Pajaro Valley's Growth Management Strategy “Progress Report”
       Action Pajaro Valley's "Progress Report," looks at APV’s Growth Management
Strategy and current data indicators at the 10-year mark of the 20-25 year strategy.

      Action Pajaro Valley, a non-profit organization, was formed by a diverse group of
community leaders in 1999 in an effort to bring collaboration and consensus to various land
use and river planning efforts within the region.

       Action Pajaro Valley has served this purpose during the intervening years including
enacting a ‘vision process’ for the region, facilitating discussions on water supply for the
Pajaro Valley, organizing Community Education Forums, developing a Growth Management
Strategy, educating the public about Measure U – the Orderly Growth & Agricultural
Protection initiative for the city of Watsonville and establishing working committees to help
reach consensus on Pajaro River issues.

       The Action Pajaro Valley Progress Report details the implementation of the Growth
Management Strategy at its half-way point and provides a snapshot of related community

Many of the objectives in the Strategy have been implemented, such as:
   Agreement among diverse stakeholder groups on the growth management strategy
   Endorsement by the Watsonville City Council and Santa Cruz County Supervisors
   Passage of Measure U – the Orderly Growth and Agricultural Protection ballot
      measure in 2002
   Annexation of Villages Senior housing area in 2002
   Expansion of slough trails and wetlands protection
   Annexation of Manabe-Ow into the city of Watsonville in 2006
   Integration of policy recommendations into the current draft of the Watsonville
      General Plan 2030

Some objectives have not yet been met, such as:
    Adoption of the Watsonville General Plan 2030
    Development of the industrial job area Manabe-Ow
    Agreement about the development in and around Atkinson Lane, Airport
      and Buena Vista areas
    Development of workforce housing
    Implementation of infill goals

       Action Pajaro Valley has provided a safe place for the community to be in dialogue
with local government staff and officials about their opinions and beliefs about the future of
the Pajaro Valley.

     The Board of Directors express their appreciation for the dedication of countless
community members and the vision and commitment from our supporters.

                                                                Action Pajaro Valley   3
                                        Table of Contents
Introduction ………………………………………………………………………....................... 5

Review of Urban Growth Areas …………………………………………………............... 7

         1.        Green Valley Designated Community ……………………………... 8
         2.        Town of Pajaro Designated Community …………………………... 8
         3.        Watsonville ………………………………………………………….............. 9
         4.        Area A: Buena Vista ………………………………………………........... 10
         5.        Area B: Atkinson Lane …………………………………………….......... 11
         6.        Area C: West of East Lake …………………………………………....... 12
         7.        Area D: East of East Lake …………………………………………........ 12
         8.        Area E: “Villages” Housing for Seniors ……………………………. 13
         9.        Area F: Manabe/Burgstrom Industrial Area ……………………. 13
         10.       Area G: West of Highway 1 ………………………………………....... 14

Lessons Learned ………………………………………………………………….................... 16

Indicator Issues and Data ………………………………………………………….............. 18

         A.        Actual vs. Projected Population
         B.        Job Commuting In and Out of the Pajaro Valley
         C.        Residential Vacancy Rates
         D.        Evidence of Overcrowding
         E.        Foreclosures
         F.        Availability of Developable Land
         G.        Number of Acres Annexed
         H.        Number of Land Divisions Approved
         I.        Number and Type of Building Permits Approved
         J.        Progress in Meeting Fair Housing Goals
         K.        Degree to Which Design Goals Met
         L.        Adequacy of Educational Facilities
         M.        Adequacy of Community Facilities
         N.        Adequacy of Recreational Facilities
         O.        Adequacy of Health Facilities
         P.        Adequacy of Public Infrastructure
         Q.        Evidence of Protecting and Preserving Valley’s Agricultural Resources
         R.        Quality of Life Indicators and Performance Measures

Conclusion …………………………………………………………………………....................... 29

Exhibit 1 – APV Growth Management Strategy............................................ 31
Exhibit 2 – Indicator Issues Data................................................................... 66

                                                                                       Action Pajaro Valley   4
                      ACTION PAJARO VALLEY
               Executive Summary


The beautiful Pajaro Valley is located on the central coast of California on the
shore of the Monterey Bay. The Pajaro River flows through the valley, originating
in San Benito and Santa Clara Counties to the east and emptying into the Bay
and the valley contains agricultural land of exceptional fertility. The north side of
the Pajaro Valley is in Santa Cruz County and the south side is Monterey County.
Along with the river, there are sloughs that are home to hundreds of species of
plants and animals. The only city in the valley is Watsonville, a community of
51,200 (2010 Census). There are other urbanized areas in unincorporated parts
of the valley, including the North Monterey County town of Pajaro, which bring
the population of the Pajaro Valley to approximately 82,500. The primary
economic force is agriculture, however, the economy in Watsonville is diverse,
and includes manufacturing, food processing, and many nationally known
companies as well as regionally and locally significant employers.

Over the years as Watsonville grew, the city has gradually moved onto
increments of agricultural land in order to address needs for job growth and
housing to support its growing and youthful population. This expansion has
raised concerns about future agricultural opportunities. Environmental concerns
also surfaced and restricted both the city’s growth and certain agricultural
practices. As the valley struggled to strike a balance among various land use
needs, there have been significant disagreements within the community about
growth and the future of the Pajaro Valley. At the same time there was a desire
in many quarters to end these fights and move to more constructive ways of
managing land use in the valley.

Action Pajaro Valley was formed in 1999 for the purpose of facilitating dialogue
among stakeholders in the Pajaro Valley. Action Pajaro Valley (APV) conducted
a “visioning” process in the community and provided a neutral forum for the
gathering and discussion of information and perspective. In 2001, with the
participation of agricultural, governmental, environmental and community
representatives, APV developed a Growth Management Strategy that had the
support of a wide and diverse set of stakeholders.

                                                              Action Pajaro Valley   5
The Growth Management Strategy (GMS) is a document that summarized the
current conditions in the valley and described many of the difficult issues facing
the people and the environment. The GMS also proposed an urban growth
boundary and identified six specific areas for urban growth in the next 20 to 25
years. The GMS document is included in this report as Exhibit 1.

After the creation of the GMS, the voters of Watsonville adopted Measure U in
2002. Following the strategy of the GMS, Measure U officially created an Urban
Limit Line (ULL) beyond which the city could not grow for 20 to 25 years.
Measure U also adopted the specific growth areas identified in the GMS that
were outside the current city limits but within the ULL.

The GMS also included a list of “indicator” issues or data about the Pajaro Valley
and directed that APV monitor and evaluate both the community’s progress on
the urban growth areas and the status of the indicator issues. The purpose of
this progress report is to follow through with that directive. The Data Indicators
are included in the report as Exhibit 2.

This report will:

       a.      Review the urban growth areas identified in the GMS and describe
            the progress made and the obstacles encountered, and

       b.      Provide current information on the indicator issues, to the extent
            that information is available.

       c.      Provide GMS document.

       d.      Provide more detailed data indicators.

                                                               Action Pajaro Valley   6
In identifying specific growth areas, the GMS made a number of assumptions,
not all of which turned out to be accurate. For example, the population estimates
were higher than actual population growth and the demand for housing was less
than expected. The deep recession that the country entered in 2007 had a
profound impact on the price of existing housing and the development of new
housing. Until the housing market recovers, the development of the residential
growth areas is likely to be slow. Similarly, the difficult national and local
economic situation impacted the commercial growth area.

The GMS Urban Growth Areas included land both within the city limits of
Watsonville and outside the city limits. It included sites in Santa Cruz County, as
well as in Monterey County. Below is a map of all the designated growth areas.
The growth areas outside the city limits are outlined with a tan colored line. The
progress in each urban growth area will be discussed separately following the

                                                             Action Pajaro Valley   7
1. The Green Valley Designated Community

   The Green Valley Designated Community is an area in unincorporated
   Santa Cruz County located between Pinto Lake and the west side of
   Green Valley Road. In 2002 it was a very lightly populated, rural farming
   area. However, directly across Green Valley Road is a relatively dense
   residential neighborhood of small single family homes and multifamily

   In the GMS, Santa Cruz County committed to conducting a planning
   process “to pursue land use options” in the next three years, i.e. by 2005.
   The planning process was slated to involve the Green Valley Road
   residents to help identify the needs that could be met by commercial or
   mixed uses adjacent to their neighborhood. This planning process was to
   be conducted in conjunction with the next Santa Cruz County General
   Plan update.

   However, the County has not initiated an update of the County General
   Plan and the Green Valley area planning process has not taken place.
   The County’s General Plan was last updated in 1994 and the expectation
   in 2002 was that an update would take place within the next few years.
   The difficult fiscal realities for California counties and Santa Cruz County
   in particular, have driven the County to defer the costly General Plan
   update process. It is not known when the County will begin the update or
   the Green Valley planning process.

2. The Town of Pajaro Designated Community

   In conjunction with the Monterey County General Plan update process,
   Monterey County committed to pursuing housing infill, redevelopment and
   expansion opportunities in the unincorporated town of Pajaro. Monterey
   County did update its General Plan and included Pajaro as a “Community
   Area” likely to receive future growth. The expectation was that the Pajaro
   Redevelopment Area would be available to fund the improvements to
   infrastructure necessary for growth. It was also anticipated that
   Redevelopment Agency funds would assist in the creation of new housing
   and related amenities.

   Unfortunately, the State of California abolished Redevelopment Agencies
   and thereby eliminated the funds to pursue growth and development in the
   town of Pajaro. In addition, the updated Monterey County General Plan is
   the subject of several lawsuits filed by groups dissatisfied with the Plan.
   Some affordable housing was refurbished and money set aside for a
   community park in Pajaro prior to the demise of the Redevelopment

                                                          Action Pajaro Valley    8
3. Watsonville

   The GMS projected that Watsonville would add 1,921 units of new
   housing within its existing city limits between 2001 and 2012. The City
   has added 1,728 units of new housing in that time frame, nearly all of
   which was built prior to the difficult economic environment of the past 5
   years. As mentioned earlier, the national recession hindered the ability to
   meet housing needs and made the development of new housing difficult
   and financially unrewarding for private housing developers. Due to
   evolving conditions, the long-term needs for affordable and market-rate
   housing will need to be understood and addressed.

   In addition to the infill housing, several unincorporated areas were
   identified for Watsonville growth. The growth areas were to be pursued
   with a phased approach. A map of those areas appears below.

                                                         Action Pajaro Valley   9
4. Area A: Buena Vista

   The Buena Vista area is a rural area to the north of the city of Watsonville
   and the Watsonville Airport. Although outside of the city limits, the Buena
   Vista area was within the City’s “sphere of influence.” This was the largest
   of the designated growth areas (over 395 acres) and was expected to be
   annexed by the City in three stages (A1, A2 and A3) over the following 20
   years. The GMS anticipated approximately 1,687 new housing units in the
   Buena Vista area, as well as neighborhood commercial development,
   schools, parks and open space.

   The development of the Buena Vista area has been the subject of much
   debate and disagreement between the City, the residents of the area and
   the users of the adjacent airport. Residents objected to the urbanization
   of their rural neighborhood. They were particularly concerned when the
   City’s updated General Plan projected even more housing (2,250 units
   total) than that projected in the GMS (1,687 units). The neighborhood
   group (Friends of Buena Vista) and the Watsonville Pilots Association filed
   a lawsuit challenging the General Plan, and in particular the adequacy of
   the environmental review, and prevailed.

   The lawsuit also contended that the housing and other development
   around the airport would create safety hazards and negatively impact
   future use of the airport. The court agreed and required revisions to the
   General Plan to provide enhanced airport safety zones.

   Watsonville has since revised the Watsonville Vista 2030 General Plan by
   reducing the projected housing units in the Buena Vista area to 1,300, re-
   establishing airport safety zones and making other changes to the
   environmental review of the Plan. The hope is that these changes will
   reduce or eliminate opposition to growth in the Buena Vista area and allow
   the GMS Buena Vista planned growth area to proceed. However, much of
   the most developable area of Buena Vista is now off-limits, and economic
   feasibility of the projected new development has not been analyzed.
   Certainly, the economic recession will have to end before the costs of
   infrastructure and new buildings can be supported by new housing, and
   even then feasibility of development is not assured given the topography,
   limited infrastructure and the costs of development.

                                                        Action Pajaro Valley   10
                       Buena Vista Growth Area

5. Area B: Atkinson Lane

   The Atkinson Lane area encompasses 65 acres on the eastern edge of
   Watsonville between the city limits and Corralitos Creek. The GMS
   identified this as a residential area, with at least 50% of the units being
   affordable workforce housing. The expectation was that this housing
   would be developed over a 25 year period.

   The City and the County of Santa Cruz partnered on a planning effort for
   development of the Atkinson Lane area. The County sought to use 10
   acres of the property to satisfy its affordable housing obligation under
   state law but ultimately the entire site would be annexed to the City. That
   joint planning effort resulted in a development plan for the housing and an
   Environmental Impact Review (EIR).

   This plan also met with opposition by neighbors who felt that their interests
   had not been represented in the GMS discussions and the joint
   City/County planning process. In addition, the Santa Cruz County Farm
   Bureau, which had endorsed the GMS, objected to aspects of the specific
   plan and challenged the EIR in a lawsuit. The City, County and Farm
   Bureau reached a settlement of the lawsuit that allowed the County to

                                                         Action Pajaro Valley    11
   proceed with the development of 200 units of affordable housing. The
   settlement agreement requires that the City do additional environmental
   review before any further development or annexation can proceed.

   Although the annexation of the Atkinson Lane area may be well off into the
   future, the planning for the construction of a significant portion of the
   planned housing is underway.

6. Area C: West of East Lake

   This area is outside the Urban Limit Line adopted in Measure U. The
   GMS classified it as an agricultural reserve area that would not be
   considered for development for a minimum of 25 years. This area
   remains consistent with the stated intent.

7. Area D: East of East Lake

   Similar to Area C above, this area, south of Salsipuedes Creek, was
   identified as an agricultural reserve that would not be considered for
   development for a minimum period of 20 years. This area is also outside
   the ULL and the area remains consistent with the agricultural reserve

                                                      Action Pajaro Valley   12
8. Area E: “Villages” Housing for Seniors

   This 14.4 acre area on the southeastern edge of Watsonville was
   identified in the GMS as an area for affordable housing for senior citizens.
   The expectation was that approximately 150 units of housing would be
   built over the next 20 years. This land was annexed to Watsonville in
   2002 and 78 units of senior housing were built in 2005.

9. Area F: Manabe/Burgstrom Industrial Area

   This urban growth area of 95 acres (of which 53 acres are developable) is
   located on the western edge of Watsonville, just to the east of Highway 1.
   The GMS identified this area for industrial and/or other job-generating land
   uses over the next 20 years. This property is now known as the
   Manabe/Ow Business Park.

   This area was successfully annexed in 2006 with tremendous community
   support but has had many challenges since. One of the conditions for
   annexation was that the area could not be used for auto dealerships or
   “big box” retail stores. These restrictions have limited the development
   possibilities. The City prepared a specific plan for the area that included
   light industrial uses, office flex space and some workforce housing units,
   as well as protections and enhancements for 25 acres of the Watsonville
   Slough. The current economic recession has made development of the
   area very difficult and the loss of the

                                                        Action Pajaro Valley   13
      Watsonville Redevelopment Agency has created an additional hurdle.
      The City’s plan for the development of up to 2,100 new jobs is anticipated
      to occur over the next 20 years. Needed infrastructure is in the planning
      phases, but no funding for infrastructure is currently available. As with
      Buena Vista, the feasibility of development will depend on whether the
      new development can support the costs when the economy improves. A
      limited amount of development (up to 130,00 square feet) on the northern
      portion of the Ow property can be accessed from Loma Vista, however, no
      development can occur beyond that without the construction of substantial
      new infrastructure, including a new bridge over Watsonville Slough and
      substantial soils remediation and flood mitigation on the Manabe property.

      The slough restoration work has proceeded and has greatly enhanced the
      slough environment to the benefit of all.

   10. Area G: West of Highway 1

This area is outside the city limits, outside the ULL and covered by a
Memorandum of Understanding (MOU) between the City, the County and the
California Coastal Commission. The MOU, which permitted the building of
Pajaro Valley High School on the ocean side of Highway 1, established a barrier
to any other future development on that side of Highway 1, with the exception of
Green Farm and the Chevron Station property next to it.

                                                          Action Pajaro Valley   14
The GMS provided that if the MOU were no longer in effect for any
reason, this area would nevertheless remain undevelopable for a
minimum of 25 years.

This area remains in agriculture and a significant portion of the area has
been purchased by the Santa Cruz County Land Trust. In addition, some
of these lands have conservation easements, which eliminate uses other
than agriculture and open space.

                                                    Action Pajaro Valley   15
Lessons Learned
An important part of documenting the progress in implementing the GMS is to
consider whether there are lessons to be learned from the process. Where this
effort to describe and implement the community’s vision of the future was
successful, it should be noted. If some mistakes were made, they should be
identified in the hopes that they won’t be repeated. It would be impossible to list
every success achieved and every misstep made along the way, but some
lessons to be learned are:

    1. Involve the community, both the larger community and those who will be
       most impacted by changes. APV did an excellent job of pulling into the
       conversation a diverse group of stakeholders such as growers, land
       owners, environmentalists, seniors, business people, developers, elected
       officials and local government staff. Engagement of local residents in the
       Buena Vista and Atkinson Lane areas was insufficient. Whether more
       involvement by concerned neighbors and airport interests would have
       changed those outcomes in a positive way is impossible to say for sure.
       But it’s always better to have community members be a contributing part
       of a planning effort rather than feeling like someone else’s plan is being
       forced on them.

    2. The GMS is seen as an agreement made among all those who
        participated in creating and endorsing the document. The question now
        is whether the GMS should be continued as-is or modified in some
        manner. In either case, it is important that those involved in the original
        agreement be invited to participate in any process in which changes are
        being considered. It is essential that the good faith and hard work of the
        original participants be respected and used as a model of
        comprehensiveness and engagement of multiple perspectives.

    3. Move as quickly as possible because memories fade, people move on
       and the situation changes. Support at a general plan or GMS level of
       planning is difficult to maintain when specific project plans are under
       consideration and new information and participants emerge.

    4. Just because a community group agrees to a plan doesn’t mean that the
       opinion of the group won’t change as the membership changes.

    5. When preparing environmental documents, assume they will be
       challenged and strive to make them “bulletproof.” Be thorough. Involve
       the community. Take no shortcuts. Hire the best experts. While CEQA
       challenges often seem unavoidable, if there are challenges they are less
       likely to be successful.

                                                             Action Pajaro Valley   16
 6. Understand that many things - including the economy, the courts and the
    decisions of elected bodies - may not align with expectations. Plan in
    ways that maximize flexibility and/or have contingencies given the
    inherent uncertainties.

 7. When the property owners and other stakeholders are involved and
    committed to finding solutions to difficult problems, agreements can be
    achieved. The successful annexations of the Villages area and the
    Manabe/Ow property are good examples.

 8. Pay more attention to technical details. For example. The development
    assumptions in the GMS for Buena Vista did not accurately account for
    state requirements for airport safety planning, and therefore proved
    overly optimistic.

 9. Pay attention to economic feasibility when planning. Just annexing a
    property does not assure development will work, and the time and costs
    of the annexation process can also drag down economic viability.
    Assumptions about development potential should be tested for financial
    viability; otherwise plans might be little more than wishful thinking.

10. Sometimes unexpected bonuses arise from community consensus, such

      a. the opportunity to purchase the Tai property west of Highway 1,
         which would not have happened without the Pajaro Valley High
         School agreement and Measure U growth boundary due to
         effectively taking the development potential off the table; and

      b. the good working relationship and joint effort by the City and
         County of Santa Cruz to develop the Atkinson MOU and Specific

      c. the expansion of wetlands and slough trails. The attention to
         focusing on livable and walkable community design has benefitted
         the community.

                                                       Action Pajaro Valley   17
                      INDICATOR ISSUES AND DATA
Reporting on the implementation of the growth strategies is only one part of the
APV monitoring and evaluation process. APV also committed to review certain
data and related issues that would indicate the health and well-being of the
Pajaro Valley and its people. Seventeen (17) specific measures were identified,
but additional information that might be useful was also invited.

While a great deal of interesting data is available, finding complete, accurate and
comparable data was difficult for a number of the indicators. Nevertheless, to the
extent possible, information was compiled on each indicator measure and
additional measures. They are included in Exhibit 2. A short summary of the
current status of each issue is given below. Please consult Exhibit 2 for
additional information, source data, charts, tables and other documentation.

   A. Actual Versus Projected Population

Population statistics for the Pajaro Valley are difficult to compile because the
boundaries of the valley don’t necessarily align with the areas being counted.
For example, the zip code that includes most of the valley also includes some
communities that are clearly not part of the Pajaro Valley. The fact that the valley
is shared by two counties adds to the confusion.

The data portion of this report includes population statistics from a variety of
sources such as the U.S. decennial census, the Pajaro Valley Water
Management Agency, the Association of Monterey Bay Area Governments
(AMBAG) and others. Wherever possible, this report uses 2000 and 2010 U.S.
census data for the 95076 zip code area.

That data is not perfect since it includes some communities that are not
considered a part of the Pajaro Valley, such as La Selva Beach, and does not
include others that are clearly part of the valley, such as Freedom. However, it
does include the vast majority of the valley’s population, and the differences
resulting from the inclusion or exclusion of some small areas are not critical.

An additional factor leading to a likely undercount of the population is the valley’s
large immigrant population, some of whom are undocumented and therefore
reluctant to be identified and counted. That undercount probably existed to the
same degree in 2000 as it did in 2010. So while the population statistics may
show fewer residents than there actually are, that undercount is consistent
across years so it’s reasonable to compare different year’s numbers.

In 2002, the GMS estimated that the population of the Pajaro Valley would be
approximately 87,411 by the year 2010. The actual population was in fact only
82,474 according to the 2010 census, a growth over ten years of only 2%. The
State of California, AMBAG and other planning entities also overestimated the
population growth that would occur in the valley.

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   B. Job Commuting In and Out of the Pajaro Valley

This is an issue for which it was very difficult to get meaningful data. We do
know that 80% of the Pajaro Valley population works within their home county,
i.e. Santa Cruz County or Monterey County. We also know that about 42% travel
less than 10 miles to their place of work and 73% commute less than 25 miles
from home to work.

Unfortunately, we do not have good historical data for the valley that would allow
a comparison between the current commute patterns and those of ten or more
years ago. Anecdotal evidence indicates that the new housing developments in
Watsonville in the last 10 years have led to more north and mid-county residents
moving to more affordable Watsonville. It’s likely that those new residents
retained their employment in other parts of Santa Cruz or Monterey counties
even though they moved to the Pajaro Valley. If that is the case, then it is likely
that the percentage of valley residents who commute outside of the valley for
work has increased over the past decade.

   C. Residential Vacancy Rates

In 1990, the Pajaro Valley residential vacancy rate was approximately 8.4%. In
the late 90s and first half of the 2000 decade, the housing situation tightened
significantly, resulting in a residential vacancy rate of approximately 6.4%. The
demand for affordable housing for working families went through the roof and the
jurisdictions responded by supporting the construction of new affordable housing.

The City of Watsonville approved 24 new housing subdivisions and saw the
construction of 1,730 new housing units between 2000 and 2010. Of those, 30%
were guaranteed to be affordable to low income homeowners or renters for a
minimum of 30 years. The remainder of the projects provided market rate

There was far less effort to provide market rate housing outside the Watsonville
city limits, but good success in building affordable housing. Santa Cruz County
approved five affordable housing projects in the valley during this time [San
Andreas Farm Labor Housing, Minto Court, Villas del Paraiso (formerly the
Marmo’s trailer park on Pinto Lake), Jardines del Valle (formerly known as
Murphy’s Crossing) and Corralitos Creek]. These housing projects provided 299
units of housing affordable to low income residents. The San Andreas project,
Jardines del Valle and Villas del Paraiso were reconstruction projects that
demolished old, substandard housing and replaced it with new housing and
increased the number of units.

The economic downturn of 2007 to 2012 saw home values collapse in the Pajaro
Valley. Many people were unable to afford the mortgage payments and lost their

                                                            Action Pajaro Valley   19
homes to foreclosure. Those homes were then sold at far less than recent
purchase prices, sometimes half of the previous sale price. In many cases,
market rate homes sold for the same prices as price-restricted affordable homes.
Rental costs, however, did not fall.

   D. Evidence of Overcrowding

Overcrowded housing was a significant problem in the early 2000s throughout
both counties and the state, and the problem was particularly acute in the Pajaro
Valley. However, by 2010 the U.S. census data shows that overcrowded
housing conditions had fallen almost by half.

As would be expected, the evidence of overcrowding did not fall as significantly
within the city limits as it did in other parts of both counties. In 2000, 35% of
housing units in Watsonville were overcrowded. By 2010, 20% of housing units
in Watsonville were considered overcrowded.

The average household sizes in Watsonville and Pajaro are also significantly
larger than the statewide average. In California, the average household consists
of 2.87 people. In Watsonville, the average is one-third larger at 3.84 people per
household. And in Pajaro, there are 5.28 people per household…184% of the
California average.

   E. Foreclosures

California has experienced a housing and foreclosure crisis over the last five
years, but some areas have been harder hit than others. For the most part,
Santa Cruz County and Monterey County have not had the extremely high
foreclosure rate seen in inland counties such as Fresno, Kern, San Bernardino
and others.

However, the Pajaro Valley, and Watsonville in particular, is one of those areas
that suffered a great deal. The Pajaro Valley has consistently had the highest
foreclosure rate in Santa Cruz County. In August 2012, one in every 369
housing units in south Santa Cruz County was in
foreclosure, compared with one in every 469 units in Aptos and one in every 854
in the city of Santa Cruz area. Fortunately, the foreclosure trend in both counties
and the Pajaro Valley is downward and the number of housing units being
foreclosed each month is slowly dropping.

   F. Availability of Developable Land

There are 140 acres of developable land within the city of Watsonville zoned for
commercial or industrial uses, including the Manabe/Ow Business Park. A
significant portion of this land is subject to significant development constraints
due to lack of infrastructure and other environmental and site specific issues

                                                            Action Pajaro Valley   20
(location in the flood plain, soil conditions, hazardous materials, etc.). There is
no vacant land in the unincorporated Santa Cruz County portion of the Pajaro
Valley that is zoned for such uses.

Within unincorporated Santa Cruz County, there are 497 parcels of vacant land
on which housing could be built. Watsonville has increased its available vacant
residential land from 14 acres in 2004 to 25 acres in 2012. In the
Pajaro/Monterey County area of the Pajaro Valley, there are 9 vacant properties
that could hold 264 housing units.

   G. Number of Acres Annexed

The City of Watsonville annexed 244.1 acres of land into the city limits between
2000 and 2010. In 2000, 134 acres of mostly urbanized land around Freedom on
the north side of the city were annexed. In 2002, 14.4 acres of prime agricultural
land were annexed for a senior housing development (Villages) in accordance
with the APV Growth Management Strategy. Finally in 2006, 95.7 acres of prime
agricultural land were annexed for the Manabe/Ow Business Park. A significant
portion of that land is dedicated to wetlands restoration and conservation.

   H. Number of Land Divisions Approved

In Watsonville, there have been two industrial land subdivisions and six
residential subdivisions approved between 2005 and 2010, resulting in 40 new

In the Santa Cruz County portion of the Pajaro Valley, there have been only four
minor land divisions for a total of six new parcels between 2007 and 2010.

   I. Number and Type of Building Permits Approved

A total of 640 building permits were issued by the City between 2005 and 2010,
including a variety of commercial and residential construction. In the Pajaro
area, a total of 357 building permits were issued by Monterey County from 2000
to 2009. A third of those were for mobile
homes in 2005. In Santa Cruz County, 867 building permits were issued in the
95076 zip code between 2000 and 2009.

   J. Progress in Meeting Fair Housing Goals

The State of California requires that all local governments create a plan to meet
their share of the Regional Housing Needs Allocation (RHNA). The State tells
each region the number and type of housing needed in their area and how those
needs can be met from a land use planning perspective. For example, a local
government can “meet” its State housing obligation for low income residents by

                                                              Action Pajaro Valley    21
zoning vacant land for housing at a density of 20 housing units per acre. The
State is not concerned about whether the housing is actually built or, if it is built,
what it actually costs the renter or purchaser.

Once a local government has created a land use plan that shows the ability to
accommodate the RHNA in accordance with the State’s requirements, the State
“certifies” the Housing Element of the local government’s General Plan and the
local government is considered to have met its goal. In the Pajaro Valley, all
three local governments (Watsonville, Santa Cruz County and Monterey County)
have had their Housing Elements certified by the State of California.

In spite of what the State says, the reality is that there is an enormous unmet
need for affordable housing in the Pajaro Valley. All three local governments
worked diligently to get affordable housing built, with some success, but the need
far outstrips their ability to meet that need.

All affordable housing developments require some public funds in order to pay
the land, construction and management costs. The 2011 loss of Redevelopment
Agencies in California has been a harsh blow to the efforts of local governments
to provide funding for affordable housing. In addition, the difficult economic
situation has both reduced the ability of private developers to build housing and
the ability of local governments to contribute financially. So while a fair amount
of affordable housing was built before 2010, the outlook for the future is not
encouraging. The trend of fewer affordable housing units and more market rate
housing units being built is likely to accelerate as the local economy improves.

   K. Degree to Which Design Goals Met

The City of Watsonville adopted the GMS Design Standards as its Livable
Community Guidelines in 2002 and has consistently applied those standards to
new developments within the city. While individual single family homes are not
subject to design review, all multi-family developments are reviewed by City staff
for compatibility with design standards and other ordinances.

   L. Adequacy of Educational Facilities to Serve the Current and Projected

The Pajaro Valley Unified School District is the K–12 public school system
serving the Pajaro Valley. The school district’s capacity is 21,253 students and
the 2012-13 enrollment is 20,039 students, so there is adequate classroom
space for current students. The school system struggles with inadequate State
funding and a large English-learning population.

This indicator may have been intended to call for an assessment of the quality of
the school district’s facilities and programs in addition to information about space.
However, that type of review and evaluation is beyond the scope of this progress

                                                               Action Pajaro Valley   22
   M. Adequacy of Community Facilities to Serve the Current and Projected

This indicator calls for a “big picture” assessment of the availability of services
and facilities in the Pajaro Valley. It’s not possible in the context of this report to
fully assess the adequacy of community facilities. However, it is possible to note
some of the changes that have occurred in the past decade.

Pajaro/Monterey County:

According to the 2003 Development Support Plan, Pajaro lacks civic facilities and
community services such as community meeting spaces, medical and dental
clinics, a youth center and adequate childcare facilities. The Monterey
Redevelopment Agency (RDA) proposed the Pajaro Commons Community
Center, which would include affordable housing, a childcare center, a community
meeting space, a public park and small playground, as well as County offices.
However, the funds to design and construct that facility are not currently available
and no plan is in place to secure the funds. The loss of the RDA may well mean
the end of this project.

A project that would convert a portion of the senior center at the Porter Vallejo
mansion into a medical clinic and childcare center has been approved but will be
small (1,570 square feet) and will not fully serve the needs of the Pajaro

Pajaro is a community with many needs. The population is largely Latino, very
low-income and many are monolingual Spanish speakers. There is also a
growing Mixteco-speaking population for whom Spanish is a second
language.The community needs improved parks, infrastructure, transportation,
health care and public services. Its proximity to Watsonville is helpful since some
of the needs of the population can be partially met there.


Over the past decade Watsonville has added parks, housing, streets and bridges
and public facilities. Its new civic center includes an expanded public library,
community meeting rooms, city offices and council chambers, a parking garage,
new courtrooms and offices for other non-city agencies. The services and
facilities available to Watsonville residents have clearly improved.

The County of Santa Cruz has partnered with the City to provide expanded and
improved services to the population. The new civic center was a joint effort by
the City and County. In addition, the County has increased the health and
welfare services being offered in Watsonville.

                                                               Action Pajaro Valley   23
Santa Cruz County:

The County’s efforts to improve community facilities in the Pajaro Valley have
focused on services within the city limits since most of the population is located
there. For example, the construction of the new Watsonville Civic Center brought
greatly enhanced court facilities and District Attorney offices to South County.
The remodeled and enlarged public health facilities on Freedom Boulevard
enable Pajaro Valley residents to get critical services locally.

   N. Adequacy of Recreation Facilities to Serve Current and Projected

The City of Watsonville has expanded existing parks and created new parks to
serve its growing population. The City has adopted a Parks and Facilities Master
Plan, which is a roadmap for future park development and improvement. It also
has a very active Parks and Community Services Department which supports
recreational activities for its residents. In general, Watsonville’s park system
offers an abundance of recreational opportunities. However, the City’s projected
growth will necessitate the development of new parks for its many new residents.

Unusual elements of the Watsonville park system are its slough trail system and
its emphasis on environmental education. Its partnership with Watsonville
Wetlands Watch has been very productive.

The Monterey County side of the Pajaro Valley is “park poor” and there are few
recreational opportunities. Again, the loss of the RDA will hinder future park
development in Pajaro. Fortunately, Pajaro residents can avail themselves of
recreational activities in Watsonville. However, neighborhood parks are sorely

Santa Cruz County has not added any new parks to its holdings in the Pajaro
Valley in the last ten years. It has expanded Pinto Lake Park to include a disc
golf course, a new playground and a dog park. The new amenities, as well as
the park itself, are heavily used by the suburban residential community around
Green Valley Road. Improvements have also been made to the Mesa Village
Park. The slow growth in the unincorporated county has limited the pressure to
add new recreational opportunities.

   O. Adequacy of Health Facilities to Serve Current and Projected Populations

Between the public health clinics, the non-profit community health clinics (such
as Salud Para La Gente, Santa Cruz Women’s Health Center and Planned
Parenthood) and Watsonville Community Hospital, the Pajaro Valley has
adequate health care facilities to serve the population. The problem is that many
people have neither health insurance nor the ability to pay for health care. A
2007 survey found that over 30% of Pajaro Valley residents lacked health

                                                           Action Pajaro Valley   24
insurance, compared to only 8% of other Santa Cruz County residents.
Furthermore, although many residents qualify for and receive Medi-Cal coverage,
undocumented residents are ineligible for the program. As a result, many people
in need of medical services simply don’t receive them.

   P. Adequacy of Public Infrastructure to Serve the Current and Projected

       1.     Roads

While the number and location of the existing county and city streets and roads
are adequate to serve the current and projected populations of the Pajaro Valley,
in some cases the road width and/or road condition is not adequate. The City
has repaired and expanded its roads and they are in good condition. The
addition of Ohlone Parkway and the reconstruction of Harkins Slough Road and
bridge have improved the flow of traffic significantly. The City has used RDA
funds to improve its infrastructure in recent years and the loss of those funds will
be felt in the future.

The counties have struggled to maintain their roads. Santa Cruz County has not
had RDA funds, and county roads reflect the lack of funding. Problems that
should be repaired exist on a number of county roads, such as Beach Road,
Browns Valley Road, Eureka Canyon Road, Amesti Road and many others.

Like Santa Cruz and many other counties, Monterey County has insufficient
funds to maintain all its rural roads in good condition. However, the addition of a
new Highway 1 interchange at Salinas Road will be completed soon and will
make the traffic flow in that area much smoother and safer

       2.     Water Supply

As has been the case for many years, more groundwater is used every year in
the Pajaro Valley than is naturally replenished, thereby creating a significant
overdraft of the aquifer. The current estimated annual overdraft is 12,000 acre
feet per year. In addition, the overdraft is causing saltwater intrusion into the
aquifer. Over the years many efforts have been made to address these
problems, with varying degrees of success. The politics around water supply in
the valley are complicated and difficult, to say the least.

The Pajaro Valley Water Management Agency (PVWMA) was created by state
law in 1984 to solve the overdraft and water supply shortfall. PVWMA has built
projects that reduce the overdraft but has not been able to eliminate this
condition. Many of PVWMA’s efforts have resulted in lawsuits and ballot
measures aimed at stopping projects or repealing revenue measures, making
meeting its statutory mandate very difficult.

                                                             Action Pajaro Valley   25
Currently two efforts are ongoing to reach agreement within the community on
how to address both the overdraft and saltwater intrusion. PVWMA’s Basin
Management Plan Ad Hoc Committee and a privately led group called the
Community Water Dialogue are hoping to reach a community-wide consensus on
solving these difficult issues. Both groups are reported to be making good

       3.     Wastewater Disposal

All homes and businesses in Watsonville are connected to sewer lines and the
effluent is transported to the Watsonville wastewater treatment plant located west
of the city along the Pajaro River. Likewise, homes and businesses located
within the Pajaro County Sanitation District, the Freedom County Sanitation
District and the Salsipuedes County Sanitation District are sewered and the
effluent is treated at the Watsonville plant. Most of the effluent is treated to a
secondary level of treatment, which is sufficient to allow it to be released into the
Pajaro River. The capacity of the wastewater treatment plant is adequate to
serve the projected population of the area.

The Watsonville wastewater treatment plant has been upgraded to have the
capacity to treat up to 4,000 acre feet per year of wastewater to a tertiary level.
Once treated, that water is delivered to agricultural fields by PVWMA to reduce
the amount of groundwater pumped from the aquifer near the coast.

In the outlying rural areas of the Pajaro Valley, the homes and businesses are
not on sewer lines but instead use septic systems. For many people those
systems are completely satisfactory. However, there are areas where either
population density or soil composition makes the use of septic systems less than
ideal from a public health perspective. Additional sewer capacity will need to be
built in the future to serve rural residential neighborhoods, such as the Amesti
Road area.

       4.     Water Quality

Water quality in the Pajaro Valley is impacted by saltwater intrusion, nitrates and
other chemical runoff from agricultural practices, animal facilities and septic
systems. The City treats drinking water between the pumping and the delivery
and, therefore, delivers high quality water. Watsonville has extended its water
service to some communities beyond the city limits, such as to Pajaro Dunes and
Sunset Beach where well water was inadequate.

The rest of the homes, businesses and agricultural operations in the valley rely
on wells, most of which provide good quality water. However, the quality of the
water from these wells varies greatly depending on location and depth. Coastal
wells are frequently impacted by saltwater intrusion.

                                                              Action Pajaro Valley    26
The regulatory efforts of the Regional Water Quality Control Board to restrict and
monitor agricultural water quality runoff has been contentious. This issue will
continue to be addressed through that process.

      5.      Flood Protection

The Pajaro Valley does not have adequate flood protection and has not had it for
many years. The Pajaro River levee system was built by the United States
Corps of Engineers in 1949 but was overtopped shortly thereafter in the
Watsonville flood of 1955. Subsequent flooding in 1995 and 1998 reminded the
community of its vulnerability.

Both counties and the City have been working with the U.S. Army Corps of
Engineers for many years to design and build replacement levees. Those efforts
have been extremely unsatisfactory and frustrating for the community and local
government because the decision making authority rests with the Army Corps of
Engineers, not the local community. The Corps has been working on the design
of the levee system for more than a decade and has spent over $15 million
dollars on planning. The current levee system provides limited flood protection,
currently estimated at protection up to an 8-year storm event.

      6.      Transit Service

The Pajaro Valley is served by both the Santa Cruz Metropolitan Transit District
(Metro) and by Monterey Salinas Transit (MST). The bus service is good
compared to other communities of similar size, but not adequate considering the
needs of the residents. Effective in September 2012, Metro is reinstating some
service that had been eliminated in 2011.

In Santa Cruz County the transit service is supported by a ½ cent sales tax,
passenger fares and state and federal grants. The local sales tax money
enables Metro to provide far more service to transit dependent residents than
would otherwise exist. Its dependence on state and federal funding means that it
is subject to the whims of the national economy and the desires of elected
bodies, both of which can be unpredictable.

Many Pajaro Valley residents use Metro to commute to work in mid or north
county. Heavy traffic on Highway 1 often delays buses and makes the commute
and public transportation experience long and unpleasant.

MST serves the Pajaro Valley with three routes that connect to Salinas, Marina
or Monterey. MST uses Metro’s Watsonville Transit Center to pick up and return
passengers, in addition to stops in north Monterey County.

   Q. Evidence of Protecting and Preserving the Valley’s Agricultural

                                                           Action Pajaro Valley   27
It’s clear that the Pajaro Valley and the Counties of Monterey and Santa Cruz
value the valley’s agricultural resources and work to protect them. Those efforts
have two primary targets: preserving agriculturally zoned land and protecting the
water supply.

In many communities, land zoned for agriculture is seen as undeveloped land
just waiting for the right development proposal. In Santa Cruz and Monterey
Counties, agricultural lands are viewed as important economic, environmental
and cultural resources worthy of preservation and protection. Some of the efforts
to protect agricultural land in the Pajaro Valley include:

       -      Measure J in Santa Cruz County

       -      The sale and purchase of conservation easements;

       -     The purchase of agricultural land by the Land Trust of Santa Cruz
           County and other resource conservation entities;

       -      The adoption of an Urban Limit Line around the city of Watsonville;

       -      Strict limits on the rezoning or division of agricultural land.

An adequate supply of high quality water is also essential to preserving
agriculture. The ultimate goal of having the aquifer “in balance” has not been
achieved. However, serious efforts to protect the valley’s water supply include:

       -      Two ongoing, serious efforts aimed at reducing the use of water
           and increasing the replenishment of the aquifer;

       -      Conservation by water users, both the City and agricultural users;

       -      Water projects by PVWMA, which include conservation, water
           recycling, water distribution and groundwater recharge.

Threats to agriculture include the cost and quality of water, food safety
regulations, urban sprawl and a shortage of workers.

   R. Quality of Life Indicators and Performance Measures

The final indicator category included in the Growth Management Strategy is a
general category that attempts to pick up any available data that would provide
information about the quality of life in the Pajaro Valley. As mentioned earlier,
finding data that include all of the valley but not areas outside of the valley is
difficult. However, statistics on educational attainment, employment and poverty
in Watsonville or Pajaro are very revealing.

                                                               Action Pajaro Valley   28
For example, 46% of the labor force in the valley does not have a high school
diploma. That means that nearly half of the work force would be unable to find
work other than unskilled labor. When the fact that many of those workers do not
speak, read or write English is added to the equation, the difficulties they face
living in the Pajaro Valley become apparent.

The unemployment rate for the city of Watsonville is far higher than the rest of
Santa Cruz County. In March 2011, the Watsonville unemployment rate was
29%, more than twice as high as the rest of the county. In 2000, the Watsonville
unemployment rate was only 12%, which was still double the rate in Santa Cruz
County as a whole.

As a result of high unemployment and low educational attainment, the average
annual income in Watsonville and Pajaro is also significantly lower than the state
average. Watsonville’s per capita income is 58% of the state average and
Pajaro’s is only 44%.

The mean annual salary in Santa Cruz County was $61,499 in 2010, but in
Watsonville it was $47,526. The mean annual salary in Monterey County in 2010
was $58,448, while in Pajaro it was only $35,043. Of even more concern is the
fact that the mean annual salary is increasing far more slowly in the Pajaro Valley
than in other parts of both counties. Salaries increased by 66% between 1990
and 2010 in Santa Cruz County but only increased by 47% in Watsonville.
Similarly, salaries increased by 61% in Monterey County but only 39% in Pajaro.

The Pajaro Valley also has experienced problems with criminal gangs. The
Watsonville Police Department, the Santa Cruz County Sheriff’s Department and
the Santa Cruz County Probation Department place a high priority on monitoring
and reducing gang-related crime. Social service agencies are also heavily
involved in efforts to solve gang and drug addiction problems. These problems
persist nevertheless and contribute to a high level of community concern about
public safety.

There are also positive quality of life indicators for the Pajaro Valley. The air is
clean, the slough system is recovering its health, the community is working
together to solve its water supply problem and to plan its future growth, residents
have access to healthy food, the population is young and many people are
bilingual. The future of the Pajaro Valley is promising but there are issues that
need to be addressed.


The Action Pajaro Valley Growth Management Strategy process brought unity
and consensus to the Pajaro Valley on difficult issues around land use. Many
residents who had never been involved in the public process before participated
and helped shape the future of the community. The APV-led effort was far more

                                                             Action Pajaro Valley   29
successful than any past effort to reach community-wide consensus. APV
brought groups together that no one would have thought would ever agree on

Over the succeeding years, we’ve learned that planning is the easy part, and that
a plan is just a plan. It’s not reality until it’s built and there are many events and
issues that can prevent a plan from being built. Sometimes those issues or
events are obstacles outside anyone’s control…the economy, natural disasters,
the ebbs and flows of the housing market and such. Sometimes the obstacles
are placed in the way by affected residents or property owners who do not agree
with the community consensus. Since they are critically important stakeholders,
special efforts should always be made to gain their support.

The snapshot of conditions provided by the Progress Report shows that some
elements of the Growth Management Strategy were more successful than others.
The question going forward is what, if any of the strategy should be

Some would say that the strategy is fine as is and just needs more time to be
implemented. Others would argue that the strategy’s reliance on Buena Vista and
Manabe Ow for housing and job growth was overly optimistic, that development
on those properties is likely to be limited at best, necessitating a re-visitation of
both the GMS goals and the means of achieving them.

Overall, it is important to remember that without Action Pajaro Valley’s GMS,
community consensus would not have been reached, in all likelihood the groups
and individuals that reached consensus would still be distrustful, and the
progress that has occurred would not have been made.

At the same time, there are pressing problems of unemployment, shortages of
affordable housing, severe overcrowding and concerns about whether the plans
that are in place will be capable of addressing these needs in the foreseeable

The Progress Report provides an opportunity for Action Pajaro Valley to pause
and re-examine its role in future planning, the strength and commitment of its
coalition, its composition, and its representativeness of the population of
Watsonville and the Pajaro Valley.

APV has been a vehicle for community engagement and collaboration. Future
policy making will be done by new leaders who will also be seeking to find
common ground and collaboration among diverse interests.

                                                              Action Pajaro Valley   30
Exhibit 1

            Action Pajaro Valley
            Growth Management
                March 2002

                            Action Pajaro Valley   31
Introduction and Overview

In May 1998, members of the Pajaro Valley community
came together to begin a visioning process about the future
of the Valley. This broad-based group of residents, business,
agricultural, environmental, and government agency
representatives created the non-profit group, Action Pajaro
Valley, in 1999. The group developed a constructive,
collaborative process for planning and creating a positive
future for all residents of the Pajaro Valley. This Growth
Management Strategy is the result of that process.

A Valley of Opportunity and Challenges
The Pajaro Valley is a community as rich in culture as it is in
natural resources. Its location along California’s central
coast, its diverse population, and its agricultural economy all
contribute to the area’s distinctiveness and appeal. The
Pajaro Valley has an environmental, social and economic
identity distinct from the areas that surround it. As a
discrete sub-watershed within the Monterey Bay region, the
Pajaro Valley is a special place with many assets that have
attracted both people and business throughout its history.
The Valley faces both challenges and opportunities as it
enters the new century. Providing well-paying jobs for the
Valley’s diverse population, ensuring equitable access to
safe, affordable housing, and protecting the Valley’s unique
environmental and agricultural resources are among the
most critical challenges.
     From Conflict to Collaboration
In recent history, development issues in the Pajaro Valley
have been highly contentious. Plans that have supported
development of land in the Valley have often been met
with contention and distrust from environmental and
agricultural stakeholders. Other planning efforts have been
unsuccessful in gaining the local government and agency
support necessary to implement them. This Growth
Management Strategy has been created in an effort to
move beyond this traditional conflict and lack of
coordination between the Pajaro Valley’s diverse interests.
    A Unified Approach to Planning
While General Plan efforts have occurred independently in
the City of Watsonville, and in Santa Cruz and Monterey
counties, there has not been a unified land use plan for the
Pajaro Valley as a whole. Many

                                                            Action Pajaro Valley   32

                   community members have viewed previous land use plans
                   as piecemeal, and short sighted. Those plans often resulted
                   in skepticism and disagreement in the community.

                   This Growth Management Strategy incorporates a unified
                   set of land use policies for the Pajaro Valley as a
                   consolidated ecological region. These policies balance the
                   Valley’s economic interests, environmental resources, and
                   socioeconomic needs for the next 20-30 years.
                   The Growth Management Strategy embodies the shared
                   vision of many of the Pajaro Valley residents. The policies
                   and principles outlined in this document are based upon
                   future population and demographic projections,
                   infrastructure constraints and opportunities, sensitive
                   environmental and agricultural areas, and political
                   acceptability. The Strategy strives to preserve and enhance
                   the Valley’s economy and environment, while improving the
                   quality of life for its people. The goal is to enhance the life of
                   Pajaro Valley residents through tangible, implementable
                   strategies and action plans that can serve as a guide for the
                   community in the future.

                                                       Action Pajaro Valley   33
                                                                          INTRODUCTION AND

The policies, recommendations, and strategic directions
identified in this document will require a variety of
implementation techniques. Implementation steps are
described in the final section of this document.

This Growth Management Strategy is based upon
three principle characteristics:

   A Bioregional Approach to Land Use

Rather than being confined by traditional political and
jurisdictional land use boundaries, this Growth
Management Strategy looks at the Pajaro Valley bioregion
as a complete ecological subunit, the lower Pajaro River
Watershed. With a project area that spans two counties
and the City of Watsonville, the region is defined by its
watershed, allowing for a comprehensive, sustainable
approach to land use issues in the Valley as a whole.
   A Multi-jurisdictional Effort

The creation of the Pajaro Valley Growth Management
Strategy involved active participation and representation
from multiple agencies having jurisdiction in the Pajaro
Valley. In a unique collaboration, representatives from the
City of Watsonville, Santa Cruz County, and Monterey
County, along with representatives from other governmental
agencies, citizen groups, and special interest groups helped
to create the policies outlined in this document. This multi-
jurisdictional model of participation helps to ensure the
political commitment essential to implementing the Growth
Management Strategy.
     Community Coalition Process
The Pajaro Valley Growth Management Strategy embodies
the shared vision of a diverse group of Pajaro Valley
residents. The Strategy was created by a community
coalition with representatives from a wide variety of
community interests including business, government,
agriculture, labor, education, health and environmental

                                                            Action Pajaro Valley   34

                   Overview of the Visioning Process
                   Visioning is the process by which a community comes
                   together to create a long-range plan that will define the
                   future social, economic and physical development of their
                   community. The visioning process in Pajaro Valley was
                   begun in 1998. It was initiated by a wide variety of
                   community interests including business, government,
                   agriculture, labor, education, health and environmental
                   stakeholders. Representatives from these diverse interests
                   came together to form Action Pajaro Valley, a non-profit
                   organization that is sponsoring the visioning and growth
                   management strategy process. In order to involve all of the
                   Valley’s diverse, multicultural community, Action Pajaro
                   Valley facilitated a number of community outreach activities
                   for the visioning process that were wide reaching and
                   bilingual in nature. These activities included a Vision Festival
                   and community workshops in which residents of the Pajaro
                   Valley were asked to identify key issues and challenges,
                   assets and opportunities, and visions for the future.
                   The visioning process was based upon an open, inclusive
                   community dialogue that was focused on getting all parts of
                   the community involved in sharing ideas about the future of
                   the Pajaro Valley.

                    The results of these outreach activities are summarized in a
                    Vision Document, produced in March 2000 (available on the
                    APV website: The Vision
                    Document synthesizes and analyzes the results of an
                    extensive community outreach effort that involved over
                    1,200 community members throughout the Pajaro Valley.
                    The document includes the following major findings.
                          Key Issues and Challenges
                   Throughout the visioning process, community members of
                   the Pajaro Valley identified the major issues and
                   challenges for the future. The major themes of this
                   community discussion are summarized below.
                            Land Use/Transportation
                   Balancing the desire for urban development to support the
                   Valley’s economy and growing population with the desire to
                   preserve the Valley’s agricultural lands and natural
                   resources is a complicated yet imperative issue. Planning for
                   the future in the Pajaro Valley will require an efficient
                   infrastructure system including transportation, water and
                   municipal services. In addition, protecting the Valley’s vast
                   environmental resources, including wetlands and streams,
                   beaches and open spaces, wildlife habitats and other biotic
                                                      Action Pajaro Valley   35
                                                                            INTRODUCTION AND

resources, is central to preserving the quality of life for
Valley residents.

With a mild climate and naturally fertile soil, the Pajaro
Valley is home to some of the most productive agricultural
land in the world. As the major land use designation,
agricultural land in the Valley is connected to several
important issues. Preserving agricultural lands, the use of
pesticides, salt water intrusion, and water consumption are
all important issues related to agricultural land and
production. Attracting agricultural laborers and ensuring
adequate housing and amenities for these workers are also
major challenges.

      Education and Workforce Development
The need for more comprehensive workforce development
and an expanded educational system were two of the most
widely recognized issues in the Pajaro Valley. Ensuring
adequate facilities and funding for a quality educational
system and increasing the attainment level of the Valley’s
youth are major challenges. In addition, addressing the need
for workforce training and development in attracting higher
paying, high skill jobs to the area is an issue throughout the
Pajaro Valley community.
    Neighborhoods, Housing and Community Design
Providing comfortable and affordable housing and creating
livable and safe neighborhoods are two important indicators
of community well being. Creating neighborhoods that
accommodate seniors, farmworkers and community
members of all income levels is a community-wide issue.
Furthermore, adhering to neighborhood and community
design strategies that foster a sense of community unity
and preserve the Valley’s unique aesthetic is an important
component of this issue.
            Economic Development
As the economy of the Pajaro Valley grows, there are
several important issues to consider. Determining the mix of
economic growth in the markets that would best serve the
Valley’s population is a challenge. In addition, ensuring a
diverse and plentiful job market with livable wages is a
major issue for the future of the Valley. The need to
revitalize downtown Watsonville and other centers of
economic activity and provide the infrastructure for
economic development throughout these areas is another
issue for consideration.
                                                              Action Pajaro Valley   36

                           Finally, assessing the role of tourism and eco-tourism in
                           supporting the Valley’s economy and providing the
                           amenities to support that role is a component of the
                           area’s economic development issues.
                                     Diversity, Arts and Culture
                           Diversity, arts, and culture play significant roles in
                           community building. The need to celebrate and foster the
                           ethnic and cultural diversity that exists in the Pajaro Valley
                           emerged as a major challenge for the future. This includes
                           issues of citizenship, race relations, identity perceptions,
                           and integration. A related issue involves the role of arts and
                           culture in the Pajaro Valley Community. An appropriate
                           level of funding and resources for all types of artistic and
                           cultural expression must be provided.
                                     Community Services
                           As the population of the Pajaro Valley increases, the ability
                           to provide the necessary services to the community is
                           essential. These services include healthcare, recreation,
                           social services and municipal services. Ensuring that these
                           amenities are accessible and affordable to all of the Pajaro
                           Valley population is an important issue for consideration.
                                            Young People
                           The need to provide opportunities and assistance to the
                           Valley’s growing youth population is important. The need
                           for recreational venues, educational opportunities, job
                           training skills, mentoring programs, leadership
                           development opportunities, and crime and gang
                           prevention programs as well as programs to address the
                           high youth pregnancy rate are all significant.

                               Interagency and Regional Collaboration

                           The Pajaro Valley is under the jurisdiction of multiple
                           governing agencies. As a result, many issues involving
                           governmental and agency collaboration emerged
                           throughout the visioning process. A regional approach
                           involving government and agency coordination is the only
                           way to achieve social and economic equity within the
                           Pajaro Valley.
           The supply and distribution of water are critical issues in the Pajaro Valley.
           The Pajaro Valley’s water supply is essential in supporting the agricultural
           industry, a growing population and many rare wildlife habitats. More than
           95% of the developed supply is pumped groundwater. Water quality,
           consumption and management are essential. Flooding in the Pajaro Valley
           must be addressed.

                                                              Action Pajaro Valley   37
                                                                      INTRODUCTION AND

 Assets and Opportunities

 One result of the visioning process is the identification of
 the Valley’s Assets and Opportunities. The following
 section, further described in the Vision Document, helps to
 define the approach taken in developing the Growth
 Management Strategy.

         Unique Natural Environment
The climate, beaches, hillsides, sloughs, lakes, river, creeks,
wetlands and open spaces comprise the unique ecosystem
of the Pajaro Valley. The scenic qualities of this environment
attract people from all over to the Pajaro Valley. In addition,
these features provide a healthy environment for the
Valley's residents and opportunities for recreation space and
outdoor activities. Finally, this unique natural environment
provides an important habitat for the Valley's diverse
             A Diverse Community
The Pajaro Valley is made up of people of many different
ethnicities, age groups and socioeconomic classes. This
diversity provides the opportunity for social understanding
as well as appreciation of our similarities and differences. In
addition, a diverse community can celebrate and enrich
itself through the artistic and cultural activities that come
with multiculturalism.
        A Strong Agricultural Economy

The Pajaro Valley is home to some of the most fertile and
productive agricultural land in the world. The fruits,
vegetables and flowers that are farmed on this land are the
driving forces behind the Valley's vast and thriving
agricultural economy. Recent developments include organic
farming and eco-tourism. The agricultural economy is an
important asset for the Valley in bringing jobs and revenue
to the Valley's residents.

         A Growing Youth Population

As the median age of the Pajaro Valley community
becomes younger, there is an opportunity for the Valley to
capitalize on the assets that young people bring to the
community. The Valley's young people can contribute to
an expanding workforce and bring energy and vitality to
the community.

                                                               Action Pajaro Valley   38

                     Community Character and Sense of Community

                   Residents of Pajaro Valley have a strong identity and
                   sense of community. As a result, the Pajaro Valley has
                   retained a "small town" feel, local character and many
                   historic and cultural features.

                           Strong Industrial Base
                   Several industrial and manufacturing firms are
                   headquartered in the Pajaro Valley. Frozen food, food
                   processing, construction materials manufacturing,
                   construction, and many other business sectors contribute
                   greatly to the Valley's economy. The strong industrial base
                   provides economic opportunities including jobs for Valley
                                Labor Force
                   One of the Valley's most important assets is a large and
                   growing labor force. The availability of workers and
                   employment training programs offer opportunities to attract
                   economic development and to strengthen support for the
                   Valley's existing economy.

                                                    Action Pajaro Valley   39
Visions for the Future

A vision is a desired end state—an ideal future. A vision may not be achievable all at once
or even for many years. A community vision is only possible through the efforts of many
individuals and institutions. The following vision statements represent the input and
discussion of over a thousand community members in the Pajaro Valley.

A Well-Planned Community

The Pajaro Valley community wants a well-conceived, well-coordinated set of plans to guide
decision-making and resource allocation. Neighborhood organizations, local and regional
agencies, government, and the private sector all work together in a process of continuous
planning and improvement.

A Sense of Place
The Pajaro Valley retains its character as an attractive coastal community and agricultural valley
by growing slowly and sustainably and by emphasizing its history, diversity, and natural
environment. The Valley offers a balance of land uses including housing, places of employment,
places for shopping, parks and open space, and agricultural land. A vibrant downtown draws
residents to shop and stroll. The Valley’s infrastructure, including transportation, utilities and
facilities, efficiently serves these places and the community at-large.

A Healthy Natural Environment
The Pajaro Valley is a model of an environmentally responsible community. Development in the
Valley balances economic vitality, social well-being, and ecological health for current and future
generations. The Valley community maintains the natural environment and protects the natural
character of its beaches, ocean, hillsides, river, sloughs, creeks, wetlands and other
environmental resources, while providing a diverse range of recreation opportunities for Valley
residents and habitat for wildlife.

A Strong Agricultural Base
The Pajaro Valley retains a viable, healthy agricultural economy. The community supports the
agricultural industry and its workforce by providing the necessary services and amenities.

A Viable Water Supply
The Pajaro Valley community recognizes the importance of water to the area’s economic,
environmental and social well-being. The Valley is engaged in regional planning efforts in order
to ensure that there is adequate water for the Valley’s economy and community, an effective
flood control plan, and environmental protection measures that ensure clean rivers and sloughs
and vital wildlife habitats.

                                                                        Action Pajaro Valley   40
Affordable, Accessible, and Comfortable Housing
The Pajaro Valley provides a range of housing opportunities that respond to the diverse needs of
its residents. Housing is available and accessible to all segments of the Pajaro Valley population
including seniors, farmworkers, and community members of all income levels. Growth in the
housing supply matches job growth, ensuring that those who work in the Pajaro Valley are also
able to live there. Housing is both affordable and safe. New housing design fosters a sense of
community and the natural aesthetic of the Pajaro Valley.

Healthy, Safe and Secure Neighborhoods
Children, youth, families and seniors feel safe and secure in the Pajaro Valley. A wide range of
recreational opportunities and community services is available to all of the Valley’s residents. The
Valley’s youth population feels valued and cared for. The community helps people during good
times and times of crisis. All residents have access to quality and affordable health and social

A Balanced Economy
The Pajaro Valley offers high quality employment and entrepreneurial opportunities. The economy
is prosperous and stable while maintaining the Valley’s “small town” feel and protecting its natural
resources. The Valley maintains a healthy downtown and neighborhood centers. The community
promotes private economic development that can support the public services and amenities that
ensure a high quality of life for the Valley’s residents. Diverse employment opportunities exist for
the Valley’s workforce. Private and public sectors within the Pajaro Valley cooperate to enhance
economic vitality and participate in regional economic development efforts.

A Strong Community Identity
The Pajaro Valley is an inclusive, diverse and tolerant community that welcomes and celebrates all
people. The community supports and is enriched by the arts and its diverse cultural opportunities.
Community building, cross-cultural and intergenerational understanding, and neighborhood pride
are all features of the Pajaro Valley’s community identity.

                                                                      Action Pajaro Valley   41
                                                                                GROWTH MANAGEMENT
                                                                                 STRATEGY PROCESS
Overview of the Growth Management Strategy
        Following the conclusion of the visioning process in May
        2000, the Action Pajaro Valley (APV) Advisory Board
        decided to focus its immediate efforts on the
        development of a Growth Management Strategy for the
        Pajaro Valley. The strategy addresses land use,
        transportation, housing, environmental constraints, and
        community revitalization.
        Based on the extensive public input during the visioning
        process and the direction by the APV Advisory Board, it
        became clear that this Growth Management Strategy must
        contain more than a line on a map or a quota for building
        permits. It must also address issues dealing with the quality,
        type, location, and amount of development, as well as the
        broad visions for preservation of agriculture, environmental
        protection, housing affordability and job creation.

Designing a Growth Management Strategy for the
Pajaro Valley
        Several approaches to growth management were initially
        analyzed for the Pajaro Valley—qualitative approaches,
        quota systems, geographic limits, adequate infrastructure,
        and jobs/housing balance. Additionally, the APV Advisory
        Board established that any type of strategy must include
        qualitative features (design principles, neighborhood
        prototypes, etc.) in order to address the quality and type of
        development desired and relate it to the social and
        economic fabric of the community.

        Many of the land use issues faced by the Pajaro Valley are
        those that can be mapped—preservation of agricultural
        land, protection of sensitive environmental areas, land for
        possible industrial or residential expansion, and land
        subject to flooding or earthquakes. Therefore, a
        geographic approach combined with development policies
        and principles appeared to be the strongest approach. The
        process graphic on the following page outlines the process
        used in working toward a Growth Management Strategy.

                                                                   Action Pajaro Valley   42

        The diagram above identifies the major process elements that led to the creation
        of this Growth Management Strategy. Based upon the community vision and an
        analysis of future population growth projections, the Action Pajaro Valley
        Advisory Board considered a variety of development suitability factors, including
        environmental constraints, infrastructure availability and community
        acceptability. From this analysis, a set of growth management principles were
        developed under the following headings:

        Policy Area 1: Designated Communities and Growth Areas: A set of maps
        specifies the communities that could efficiently and sustainably accept some
        future growth. These maps include a proposed Urban Growth Area for the City of
        Watsonville and a rationale and description of growth areas included in this

        Policy Area 2: Development Inside Designated Communities:

        These policies address design principles and prototypes promote livability and
        sustainability in areas where growth will occur. Examples of these principles are
        further described in this document.

                                                               Action Pajaro Valley   43

Policy Area 3: Development Outside Designated Communities:

This policy area identifies acceptable land uses outside of designated communities,
including agriculture, habitat protection, and recreational uses.

Policy Area 4: Environmental Resources: These policies address the need to
promote and sustain a healthy natural environment throughout the Valley by using
resources efficiently.

                                                          Action Pajaro Valley    44
Analysis of Future Population Growth

Population, housing, employment, and land consumption
projections are important indicators for making decisions
about future land use needs. According to recent Census
data (2000), approximately 81,000 people reside in the
Pajaro Valley. This number will increase over the next two
decades, creating greater demands for housing, resources,
and jobs in the Pajaro Valley. If past trends are any guide,
it is clear that in the foreseeable future, the total demand
for growth will likely exceed the Valley’s capacity for
accommodating that growth. An examination of possible
growth scenarios will help ensure that the growth
management strategy adequately addresses the Valley’s
future needs efficiently and sustainably.

As part of the Growth Management Strategy process, the
Action Pajaro Valley Advisory Board studied various growth
scenarios for the Pajaro Valley. The scenarios were
hypothetical and were used to provide general direction in
identifying the Valley’s major population, housing, and
economic needs over the next 2-3 decades. They provided a
framework for discussion and assisted in the development
and evaluation of the growth management strategy.

                                                           Action Pajaro Valley   45

                             Projections for the Pajaro Valley
         According to both the Association of Monterey Bay Area Governments and local
         government projections, population in the Pajaro Valley will grow at a rate
         somewhere between 0.75% and 1.8% over the next 2 decades. This rate varies
         both by location, with higher growth rates projected in the urbanized areas, and
         by variations in what some local governments consider reasonable.

         The Association of Monterey Bay Area Governments (AMBAG) computes
         population forecasts for Monterey and Santa Cruz counties, including the City
         of Watsonville, based upon data from the national census, State Department of
         Finance, and planning agencies. The 1997 Regional Population and
         Employment Forecast for Monterey, San Benito and Santa Cruz Counties Final
         Report (AMBAG, 1997) is the agency’s most recent set of population
         projections. This report is expected to be updated in Spring of 2002.

         The table below includes AMBAG forecasts for the Pajaro Valley area. The last
         column reflects the population numbers within the Pajaro Valley Water
         Management Agency (PVWMA) service area, an area that closely approximates
         the Pajaro Valley study area defined by Action Pajaro Valley. According to the
         table, the population within the PVWMA is projected to increase from
         approximately 71,300 (1990) to approximately 98,200 (2020). This represents
         an average annual growth rate of about one percent per year. 92 percent of the
         total growth projected for the PVWMA service area is projected to occur within
         the City of Watsonville/Sphere of Influence.

             AMBAG 1997, as reported by the Pajaro Valley Water Management Agency,
               Revised BMP Draft EIR 2001

                                                              Action Pajaro Valley   46
                                                            ANALYSIS OF FUTURE POPULATION

Results and Conclusions
The population projections help determine if the potential
growth areas identified in the Growth Management Strategy
will accommodate some future population growth. Even
without this Growth Management Strategy in effect, future
growth will most likely be limited due to:
         Infrastructure constraints;
         Sensitive environmental and agricultural areas;
         Political and community

The Pajaro Valley can accommodate some future growth
          Infill, redevelopment, and intensification;
          Expansion of agreed upon designated communities.

It is estimated that the policies and proposed growth areas included in the
Growth Management Strategy could provide approximately 4,120 additional
residential units within the City of Watsonville over the next 20-25 years.
Forty-seven percent (47%) of this growth would occur on land within the
existing city limits of Watsonville.

                                                             Action Pajaro Valley   47
Growth Policies

The policies outlined in the Growth Management Strategy
are intended to establish general and specific direction for
future land use decisions in the Pajaro Valley. The policies
were developed through the discussion and deliberation of
the APV Advisory Board and through numerous public
meetings and workshops. A growth policy sub-committee,
the Process and Policy Task Force refined the policy
language. The policies respond to the Pajaro Valley
community vision described in the introduction of this
document. The implementation mechanisms for these
policies are described later in this document, and will be
further established in the next phase of the growth strategy
process. Local jurisdictions will be encouraged to include
this policy direction in their General Plans.

The Growth Management Policies included in this chapter are
grouped into the following policy areas identified in the diagram

                                                            Action Pajaro Valley   48

                                Overview of Assumptions

           The growth management strategy policies are based on the following assumptions:

   A1     Areas where growth is allowed or encouraged (designated communities) will be
   designated on maps (see Policy Area 1 for maps). These maps are not intended to
   replace existing zoning, but may result in changes to current zoning.

  A2     Expansion areas, if any, for designated communities will be based on factors such
  as preservation of agricultural lands, protection of sensitive environmental areas with
  appropriate buffer, natural hazards such as flooding and earthquakes, availability of
  infrastructure, access to transportation system, adjacency to existing developed areas,
  and community acceptability and needs. These factors are weighted by the extent to
  which they can be mitigated. (See the APV At-A-Glance Document for development
  suitability maps).
  A3      Areas outside of designated communities and any expansion areas will be
  limited, in accordance with existing zoning codes, to the agricultural purposes defined in
  this growth management strategy or, if environmentally sensitive lands, to natural and
  recreational uses consistent with their environmental values. Emphasis will be placed on
  non-urban uses to the extent possible within current zoning laws.

  A4     Urban/agricultural buffers for the proposed growth areas are 200 ft. Allowable
  uses within the growth areas will be agreed upon in future policy.

  A5      More efficient development will be encouraged and/or required within
  redevelopment areas. This development should be compatible with existing uses. (See
  also City of Watsonville Livable Community Residential Design Guidelines June 2001)

  A6     Emphasis will be placed on building neighborhoods and communities as the
  organizing principle for new growth. This emphasis will include community needs,
  such as education, recreation, and social services.

 A7     The Growth Management Strategy may satisfy the fair share allocation
 requirements for housing as determined by AMBAG.

 A8    Sites and related opportunities to address farm worker and low-income family
 housing needs will be aggressively pursued.

 A9    Land, within some reasonable limit, will be made available for skill-appropriate
 job creation activities that meet community needs.

 A10    A process will be established for monitoring and amending growth
 management policies as needed, as specified in Monitoring and Implementation

                                                                 Action Pajaro Valley   49
Policy Area 1:     Designated Communities and Growth
1.1 Proposed designated communities described below are
    shown on map

                                           Action Pajaro Valley   50
City of Watsonville
The City of Watsonville will incorporate the urban growth area
specifications in Policy 1.2


                                               Action Pajaro Valley   51
Green Valley Designated Community
Santa Cruz County commits to a planning process involving Green
Valley residents to pursue future land use options in the next 3
years (initiate this discussion in conjunction with the upcoming
County of Santa Cruz General Plan update process).

Town of Pajaro Designated Community

In conjunction with Monterey County General Plan update
process, the Town of Pajaro shall pursue housing infill,
redevelopment and expansion opportunities with a range of
product types.

City of Watsonville

1.2 The City of Watsonville shall have a growth area within
    which it can accommodate some growth for a period of 20-
    25 years. This urban growth area is described below and
    shown on “Map: Urban Growth Area for the City of
Area A (AI, AII, and AIII): Buena Vista

This growth area could be a planned development area primarily for
residential uses with some neighborhood commercial, open space, schools,
and parks. The area could be developed in phases and would add a total of
approximately 395.2 gross acres and 344.2 net acres to the City of
Watsonville over the next 20 years. The phasing would include 2 triggers
that, when either of which was complete, would allow the development of
AIII to proceed: Trigger 1: 50% of the gross acreage of AII has received
development entitlements; or Trigger 2: 14 years has passed since the
Urban Growth Area was ratified. This entire Area A would net an
approximate 1,687 new residential units over the next 20 years.

                                                     Action Pajaro Valley   52
Area B: End of Atkinson Lane
This growth area could be developed as residential, with a significant
portion (at least 50% of the units) as affordable workforce housing, with
emphasis on housing for agricultural workers. The growth area would add a
total of 65 gross acres and 30 net acres to the City of Watsonville and a net
of approximately 363 residential units over a 25-year period.

Area C: West of East Lake

Area C West of East Lake, south of Corralitos Creek, could be classified as an
agricultural reserve area that would not be considered for development for
a minimum period of 25 years.

Area D: East of East Lake

Similarly to Area C described above, this area, south of Salsipuedes Creek,
could also be classified as an agricultural reserve area that would not be
considered for development for a minimum period of 20 years.

Area E: “Villages” Housing for Seniors

This 14.4 acre area of land will be developed as affordable residential units
for senior citizens. The area will net approximately 150 residential units
over the next 20 years.

Area F: Manabe/Burgstrom Industrial Area

This area includes a total of 94.3 gross acres and 53 net acres that would be
developed as industrial and/or other job-generating land uses over the next
20 years. The area is adjacent to existing industrial uses.

                                                        Action Pajaro Valley   53
Area G: West of Highway 1
This area currently remains undevelopable as specified by a memorandum
of understanding between the City of Watsonville, Santa Cruz County, and
the California Coastal Commission. However, should that MOU be
terminated for any reason, the area west of Highway 1 would remain
undevelopable in accordance with this growth management strategy for a
minimum of 25-years.

Area H: Infill

                                                     Action Pajaro Valley   54
Policy Area 2:        Development Within Designated Communities
2.1     Development within designated communities should focus on building attractive and safe
residential neighborhoods and promoting a sense of community identity. Development within designated
communities should adhere to the following principles:
 •      Design neighborhoods that promote community and neighborhood centers, create parks
        public open space, and focus on pedestrian orientation.
 •      Ensure that neighborhoods have adequate community facilities, including schools,
        health facilities, community centers, parks, etc.
 •      Provide a wider range of residential opportunities that emphasize both public and
        private open space.
 •      Focus on infill and redevelopment that fits into the context of existing neighborhoods.
 •      Design for increased density without decreased quality of development and amenities.
 •      Provide transit accessibility in and around neighborhood centers.
 •      Improve roads, sidewalks, and neighborhood connections.

2.2    Development within designated communities should promote employment centered
development consistent with the following principles:
•       Promote mixed use within commercial and industrial areas
•       Encourage appropriate neighborhood commercial development.
•       Design for increased development intensity without decreased quality and amenities.
•       Provide transit accessibility in and around commercial and industrial centers.
•       Improve roads, sidewalks, and neighborhood connections.

2. 3    Development should ensure comfortable, safe and affordable housing for all residents.
Some   approaches are as follows:
•       Link housing to neighborhood revitalization
•       Focus on providing housing suitable for local workforce
•       Integrate affordable housing for families into the community
•       Provide senior citizen housing
•       Promote home ownership
•       Increase range of housing types, including some higher-end housing
•       Ensure that housing fits within a neighborhood and community context.

2. 4    Larger communities, such as Watsonville and Pajaro, should have identifiable and
healthy downtowns and/or centers. Some approaches are as follows:
•      Provide a greater diversity of businesses
•      Encourage a wider range of retail activities
•      Encourage multi-cultural activities and retail opportunities
•      Provide for permanent farmer’s markets
•      Encourage pedestrian-oriented downtowns
•      Encourage infill, redevelopment and mixed-use development
•      Provide for more residential opportunities
•      Preserve historic buildings and heritage trees
•      Encourage local entrepreneurs
•      Ensure that adequate parking or transit services are available
•      Support downtown plazas, public spaces, public art, and cultural exhibits.
2.5    In order to ensure that neighborhoods support trip reduction and provide necessary
amenities for the immediate residents, smaller communities are encouraged to have
community centers that would offer some retail, space for community meetings and events,
and, in some situations, farm worker housing and local schools.

                                                                      Action Pajaro Valley   55
Policy Area 3:       Development Outside Designated
3.1    Lands outside of designated communities shall be restricted to agricultural,
habitat protection, watershed protection, recreational, necessary infrastructure (water,
wastewater, solid waste, stormwater control) to support designated communities, or
other non-urban types of uses.

3.2    Both Santa Cruz and Monterey Counties shall maintain existing zoning policies
with regards to additional development outside of designated communities.

3.3   Arrangement of structures necessary for agricultural production, including farm
worker housing, shall be clustered in order to maximize the amount of contiguous land
available for actual production.

3.4  Schools and other civic facilities should be located such that they support
community cohesion and do not induce growth outside of designated communities.

Policy Area 4:       Environmental Resources

4.1    In order to ensure planning practices that promote biotic diversity inside and
outside the designated urban communities, development strategies should focus on
protection, enhancement, and restoration of the Pajaro Valley’s environmental
resources. To achieve this end, we encourage the following:
•      Concentration of urban development away from sensitive habitats
•      Establishment of habitat set asides
•      Restoration of wetland, river, and stream habitats
•      Maintenance or improvement of scenic viewsheds
•      Ensure proper transition between land uses.
•      Encourage improved standards and procedures for the control and treatment of
       storm water runoff from developed areas.

4.2    Development within designated communities should focus on making efficient
use of resources.
•      Promote land use patterns that conserve energy and minimize the need for
       costly infrastructure.
•      Encourage development that produces minimal or no waste byproducts.
•      Encourage development that uses materials from renewable sources.
•      Ensure that development provides for maximum practical energy efficiency.
•      Ensure that development incorporates water savings features.

                                                              Action Pajaro Valley   56
Design Principles

This section addresses qualitative and prototypical
neighborhood design elements that contribute to a livable
environment. Early on in the visioning and growth strategy
process, it became clear that a successful growth
management strategy must include qualitative features,
such as design principles, in order to address the quality
and type of development desired and relate it to the social
and economic fabric of the community. This section of the
Growth Management Strategy is designed: to ensure
efficient and sensitive use of the Valley’s land; to foster
community and promote livability; and to maintain the
unique character of the Valley.

                                                          Action Pajaro Valley   57

                    Design Principles for Livability
                    The design principles described in the section below are
                    meant to flexible, yet effective means of protecting and
                    enhancing the unique character of communities within the
                    Pajaro Valley. The principles provide a framework that will
                    guide public and private development and redevelopment
                    in order to create and sustain a livable community.
                    Community and Neighborhood Planning Principles

                    The principles described below respond to many of the
                    issues outlined on the previous page. The photographs are
                    meant to illustrate some key design concepts.

                    Community Centers: Communities should have a center
                    focus that combines commercial, civic, cultural and
                    recreational uses. Regional institutions and services
                    (government, stadiums, museums, etc.) should be located
                    in the urban core.
                    Community and Neighborhood Diversity: Provide a
                    broad range of housing types and price levels to bring
                    people of diverse ages, races, and incomes into daily
                    interactions—strengthening the personal and civic bonds
                    essential to an authentic community.
                    Community Edge: Each community or cluster of
                    communities should have a well-defined edge, such as
                    agricultural greenbelts or wildlife corridors,
                    permanently protected from development.

                    Compact Neighborhoods: Neighborhoods are compact,
                    pedestrian-friendly, and mixed use with many activities of
                    daily life available within walking distance (1/4 mile radius of
                    the neighborhood center). New development should help
                    repair existing neighborhoods or create new ones and should
                    not take the form of an isolated “project” inwardly focused,
                    private development.
                    Neighborhood Connections: Neighborhoods should be
                    connected to local patterns of transportation and land use,
                    to open space, and to natural systems.

                    Resource Conservation: The community design should
                    help conserve resources and minimize waste. Communities
                    should provide for the efficient use of water through the use
                    of natural drainage, drought tolerant landscaping and
                    recycling. The street orientation, the

                                                       Action Pajaro Valley   58
                                                                           DESIGN PRINCIPLES

placement of buildings and the use of shading should
contribute to the energy efficiency of the community.

Landscape Character: Wherever possible, the natural
terrain, drainage and vegetation of the community should
be preserved with superior examples contained within
parks or greenbelts.

Neighborhood Centers: Neighborhoods should have a
school and park as a center focus that provides easy and
safe access for residents within a quarter mile radius.

Mixed Use Development: The creation of mixed use
neighborhoods should be promoted that supports the
functions of daily life: employment, recreation, retail, and
civic and educational institutions.
Infill Development: Reclaim and repair blighted and
abandoned areas within existing neighborhoods by using
infill development strategically to conserve economic
investment and social fabric.
Public Open Space: The interconnected network of streets
and public open space should provide opportunities for
recreation and appropriate settings for civic buildings.
Frequent use of squares, greens and parks in both day and
night should be encouraged through placement and design.
Streets: The primary task of all urban architecture and
landscape design is the physical definition of streets and
public spaces as places of shared use. Neighborhoods should
have an interconnected network of streets and public open
Transit Orientation: All infill development and new
projects should be designed and oriented to take advantage
of public transportation systems (buses, trains, shuttles,
light-rail, etc.) both exiting and planned for in the future.
Access to transit stops should be integrated into the site
and building design of projects and promote the use of
public transportation.

Pedestrian and Bicycle Use: Streets, pedestrian paths and
bike paths should contribute to a system of fully connected and
interesting routes to all destinations. Their design should
encourage pedestrian and bicycle use by being small and
spatially defined by buildings, trees and lighting; and by
discouraging high speed traffic. As many activities as possible
should be located within easy walking distance of transit stops.

                                                           Action Pajaro Valley   59

                    Site Design Principles

                    The following are site-specific design principles that
                    address some of the issues and constraints identified. The
                    photographs are meant to illustrate some key design

                     Pedestrian Orientation: Site design and layout should be
                     oriented first to the pedestrian environment with auto
                     spaces, streets, parking and driveways providing a service
                     and supporting role. Site design should provide for safe,
                     accessible and attractive pedestrian and bicycle access and
                     circulation throughout the site with connections to area and
                     regional bicycle and pedestrian systems. Pedestrian spaces
                     should be separated from auto circulation with raised
                     sidewalks, curbs and gutters, and minimize auto pedestrian

                     Open Space: Each site should provide for private,
                     common and public open spaces connected to a network of
                     neighborhood and regional open spaces, parks and
                     recreation facilities and schools. Private open spaces
                     should be provided for each residential unit in the form of
                     ground floor yards, or patios, and decks for upper floor
                     units. Common open space facilities should be provided for
                     larger residential developments such as swimming pools,
                     outdoor play equipment for children of different ages,
                     picnic, and barbeque areas, and open turf areas for play
                     and recreation and common indoor recreation facilities.

                     Eyes on the Street: The relationship of buildings and
                     streets should create a safe and stable neighborhood by
                     providing “eyes on the street” and should encourage
                     community interaction. Security is enhanced by providing
                     for visual surveillance of all public spaces on the site and
                     street from adjoining buildings. Buildings adjacent to the
                     street should provide windows, entries and activity areas
                     facing the street and public spaces.

                     Private and Public Spaces: Site design and layout
                     should provide a clear definition of public and private
                     realms through block and street design and building
                     locations and forms.

                                                      Action Pajaro Valley   60
                                                                             DESIGN PRINCIPLES

Building Design Principles
The following are building-specific design principles that
contribute to a more livable community. The photographs
are meant to illustrate some key design concepts.

Accessibility: Buildings should be designed to be
accessible and visible while respecting the traditional
urban fabric.

Architectural Character: The image and character of new
development should respond to the best traditions of
residential and mixed-use architecture in the area.
Materials and methods of construction should reflect those
in the area, exhibiting a continuity of history and culture
and compatibility with the climate to encourage the
development of local character and community identity.

Indoor-Outdoor Orientation: Buildings spaces should
take advantage of the Watsonville extraordinary climate,
views and natural resources and provide for indoor-outdoor
connections to private and public open spaces and yards.

Neighborhood Fit: New infill development should fit the
context of their surrounding neighborhood and fit the
scale, size and massing of surrounding buildings and uses.
Building scale should reflect the traditions of the
surrounding neighborhood and community in which they
are located.

                                                             Action Pajaro Valley   61

        A well-defined program for implementation is essential in bringing the
        recommendations in this Growth Management Strategy to fruition. Defining
        implementation principles as well as possible actions will help to ensure that
        the Growth Management Strategy will work toward creating a positive future in
        the Pajaro Valley. This chapter summarizes these implementation elements.

               Enforcement of the Designated Communities and the
                              Urban Growth Areas

    The following implementation actions will help to ensure that this
    growth management strategy is enforceable:

         A diverse list of stakeholder representatives will formally endorse the Growth
          Management Strategy via an agreement.
              Stakeholder agreement was signed by a representative on behalf
                of each organization listed

        The residents of the unincorporated part of the Pajaro Valley will have the
         opportunity to sign an endorsement card to show support for the growth
         management strategy.
             Individual endorsement cards submitted
         The urban growth area will be subject to a vote of the people of Watsonville.
              Measure U approved by voters November 2002

         The City of Watsonville and Santa Cruz County will sign an agreement stating
          their commitment to the urban growth area.
              City of Watsonville and Santa Cruz County endorsed the Growth
                 Management Strategy

         The Urban Growth Area will be proposed to be included in the City of
          Watsonville’s and Santa Cruz County’ s general plan.
              No Santa Cruz County General Plan update has occurred

        A change or an amendment to the urban growth area can only be accomplished
         by a vote of the people of Watsonville and by the appropriate jurisdictions.
             A citizen led ballot measure to amend Measure U proposes to add
               additional acres to the Measure U boundary.

        Action Pajaro Valley will work with the Town of Pajaro on developing its
         Community Plan.
             Pajaro Community Area included in the Monterey County
               General Plan

                                                                     Action Pajaro Valley   62
                                     Pajaro Valley
                              Growth Management Strategy

                  S t a k e h o l d e r         A g r e e m e n t

Whereas a diverse coalition of members of the Pajaro Valley community have been
meeting since 1998 to establish an overall community vision and have been meeting
since 2000 to develop a Growth Management Strategy. This plan embodies the shared
vision of the Pajaro Valley residents including economic stability, social equity, and
smart growth policies which balance the need for housing while preserving farmland
and protecting the environment. The members of the Advisory Board for Action Pajaro
Valley, a not-for-profit organization, hereby endorse the provisions of the Growth
Management Strategy on behalf of the organizations they represent.

Therefore, the members of the Advisory Board and the organizations they represent
agree to the following positions:
          Support the Growth Policies, Design Principles and Prototypes, and
           Growth Boundary provisions contained in the Growth Management
           Strategy for the Pajaro Valley, (as seen in the accompanying
           presentation and document,) including portions of Santa Cruz
           County and North Monterey County;
          Support an initiative to establish an urban growth area for the City
           of Watsonville for 20-25 years; and
          Encourage the governing bodies of the City of Watsonville and the
           County of Santa Cruz to enter an agreement to support the
If the voters of the City of Watsonville approve the initiative, the members of the
Advisory Board and the organizations they represent therefore agree to the following
          Support efforts by the governing bodies of the City of Watsonville, the
           County of Santa Cruz and the County of Monterey to adopt general
           plan amendments and other changes to policies and regulations that
           serve to implement the provisions of the Growth Management
          Support annexations by the City of Watsonville, provided such
           annexation proposals are consistent with the adopted urban growth
           area and the overall Growth Management Strategy;

                                                                 Action Pajaro Valley   63
    Adhere to the Urban Growth Boundary throughout the term of this
     agreement; and
    Support the provisions for the development, implementation and
     monitoring of the impacts of the Growth Management Strategy.
    Support the policies that aim to concentrate future growth and
     development in designated communities in order to build community-
     oriented neighborhoods, provide for economic development, and
     protect the Valley’s natural and agricultural resources.

 The undersigned representatives and their organizations agree with the
 provisions of the Growth Strategy, and will support the positions stated
 above in this Stakeholder Agreement:

                               Endorsed by:

                     Santa Cruz County Farm Bureau

                       Watsonville Wetlands Watch

               Monterey Bay Central Labor Council, AFL-CIO

                   Watsonville Association of Realtors

            Pajaro Valley Chamber Commerce and Agriculture

                 Community Alliance with Family Farmers

League of United Latin American Citizens of Watsonville/Santa Cruz County

                         Watsonville City Council

                 Santa Cruz County Board of Supervisors

                     Land Trust of Santa Cruz County

                                                         Action Pajaro Valley   64

                                Monitoring and Evaluation

Performance evaluation of the overall Growth Management Strategy, as well as the
urban growth area, is critical for continued progress toward the community’s vision.
The following monitoring and evaluation criteria are recommended as part of the
implementation of this Growth Management Strategy.

Action Pajaro Valley or a similarly constituted organization recognized by local
jurisdictions, shall provide an advisory function on the progress of the Growth
Management Strategy including and producing a progress reprint at least once every
5 to 10 years. The report shall address at least the following:
  •      Actual versus projected population

  •      Job commuting in and out of the Pajaro Valley

  •      Residential vacancy rates

  •      Evidence of overcrowding

  •      Availability of developable land for next five years

  •      Average density of approved residential development over preceding five years

  •      Average intensity of approved non-residential development over preceding five years

  •      Number of acres annexed

  •      Number of land divisions approved

  •      Number and type of building permits approved

  •      Progress in meeting fair housing goals

       General assessment of the degree to which built development over preceding five years
  met adopted design principles.

  •      Adequacy of educational facilities to serve the current and projected population

  •      Adequacy of community, recreation, and health services to serve the current and
  projected population

  •      Adequacy of public infrastructure—roads, transit, water, wastewater, storm drainage—
  to serve the current and projected population.

  •      Evidence of protecting and preserving the Valley’s agricultural and natural resources.

  •    Community adopted quality of life indicators and performance measures (e.g.,
  community assessment projects from Santa Cruz and Monterey counties).

  •      Based on the performance report, new or improved policies may need to be established

                                                                 Action Pajaro Valley   65
Exhibit 2



                         Action Pajaro Valley   66
Actual Vs. Projected Population
For Pajaro Valley:


1990         71,268                PVWMA Service Area,
                                   Source GMS Pg. 16

2000         85, 870               (2000 Census by Zip)

2010         77,150                (Census for 2010 CCD
                                   numbers; )1


2000         82,431                (GMS page 14)

2010         87,411a               a
                                    GMS page 14
             89,820b               b
                                    AMBAG projected
                                   applied to 2000 actual

2020         98,172                PVWMA Service Area,
                                   Source GMS Pg. 16

                                                 Action Pajaro Valley   67
1 AMBAG 1997, as reported by the Pajaro Valley Water Management Agency, Revised
BMP Draft EIR 2001

Population Growth Trends
Jurisdiction     Population                                         Percentage Change
                 1980       1990         2000        2010           1980- 1990- 2000-
                                                                    1900 2000 2010
Capitola         9,095       10,171      10,033      9,918          12%    -1%     -1%
Santa Cruz       41,483      49,040      54,593      59,946         18%    11%     10%
Scotts Valley    6,891       8,615       11,385      11,580         25%    32%     2%
Watsonville      23,662      31,099      44,265      51,199         31%    42%     15.50%
Unincorporated   107,010     130,809     135,326     129,739        22%    3%      -4%
Santa Cruz       188,141     229,734     255,602     262,382        22%      11%    3%
County Total

Monterey         290,444     355,660     401,762     415,057        22.5% 13%       3.3%
Pajaro           1,495       3,332       3,384       3,070          123%     1.60% -9.3%
State of CA      23,667,765 29,760,021 33,871,648 37,253,956 25.7% 13.8% 10%

                                                            Action Pajaro Valley   68
   Population growth has slowed

          Pajaro Valley
1990         71,268   PVWMA Service Area,
                      Source GMS Pg. 16

2000         81,136   (2000 Census by Zip

2010         82,474   (2010 Census by Zip
                      95076 )


                           Action Pajaro Valley   69
Jobs Commuting in and out of Pajaro Valley
“The average trip length (in miles) is an indicator of the dispersal of jobs and housing.
Longer trip lengths indicate longer distances between housing and commercial and
employment areas. It would be expected, as the region grows, that many of the
resident’s jobs would remain outside of Watsonville, and that growth in the edges of the
city would increase the distance between neighborhoods and commercial areas. Hence,
the average trip length is estimated to increase about 2 miles over the 30 year period.”
(Source: Bradley Olin, City of Watsonville)

The majority of Watsonville’s resident travel between 5 and 25 minutes to their place of
employment (over 60 percent). A smaller proportion of residents commute between
than 45 and 90 minutes (12 percent), and a very small proportion commutes greater
than 90 minutes (3 percent). Average commute travel times for Watsonville are almost
identical to those of commuters in Santa Cruz County as a whole. (Watsonville Vista
     See Error! Reference source not found.Where Watsonville residents work for map

                                      From AMBAG

Pajaro/N. Monterey County:
In 2000, there were a total of 4,947 jobs that required traveling from home. 2,633 (or
53%) people have a commute time of 25 min or more, which makes for a good estimate
considering it takes about that time to travel well outside of Pajaro Valley. The average
commute time to work is 24.9 min. (Source: 2000 Census)

                                                                Action Pajaro Valley   70
Distance/Direction Report - Home Census Block to Work
Census Block

                                                      Jobs by Distance - Home Census Block
                                                      to Work Census Block
                                                                                                  Count     Share
                                                              Total Primary Jobs                  28,665 100.0%

                                                              Less than 10 miles                  12,004 41.9%

                                                              10 to 24 miles                       8,860    30.9%

                                                              25 to 50 miles                       3,330    11.6%

                                                              Greater than 50 miles                4,471    15.6%

Source: U.S. Census Bureau, OnTheMap Application and LEHD Origin-Destination Employment Statistics
(Beginning of Quarter Employment, 2nd Quarter of 2002-2009)
1. Race, Ethnicity, and Educational Attainment statistics are beta release results and only available for 2009
2. Educational Attainment is only produced for workers aged 30 and over.

                        Pajaro Valley Commuters (going IN)

                                                                                    Action Pajaro Valley            71
Distance/Direction Report - Work Census Block to Home
Census Block

                                                      Jobs by Distance - Work Census Block
                                                      to Home Census Block
                                                                                                  Count     Share
                                                              Total Primary Jobs                  23,383 100.0%

                                                              Less than 10 miles                  11,877 50.8%

                                                              10 to 24 miles                       5,911    25.3%

                                                              25 to 50 miles                       1,070    4.6%

                                                              Greater than 50 miles                4,525    19.4%

Source: U.S. Census Bureau, OnTheMap Application and LEHD Origin-Destination Employment Statistics
(Beginning of Quarter Employment, 2nd Quarter of 2002-2009)
1. Race, Ethnicity, and Educational Attainment statistics are beta release results and only available for 2009
2. Educational Attainment is only produced for workers aged 30 and over.

                              Pajaro Valley Commuters OUT

                                                                                      Action Pajaro Valley          72
Commuting In and Out of Area

80% of people work in county of residence

20% of people work outside county of residence

24 minutes is the mean travel time to work for
Watsonville residents

 Source: AMBAG


 Commuting In and Out of Area


                                            Action Pajaro Valley   73
Residential Vacancy Rates
                                1990                                       2000
  Zip Code      Housing        Vacant          Percent Housing Vacant Percent
                units          units                   Units   Units

  95019         1564           76              4.9               1,247    20           1.6

  95076         19701          1719            8.7               23,045   1,536        6.7

  Combined 21265               1795            8.4               24292    1556         6.4

1990, 2000 Census data   1

                                     Vacancy Rates
                             Vacancy rates are at 1990 levels

                         6     8.4                       8.1
                                            6.4                                  Vacancy Rate
                              1990           2000         2010
                         Source: 1990, 2000, 2010 US Census


                                                                                         Action Pajaro Valley   74
Evidence of Overcrowding

          Pajaro and Watsonville surpasses overcrowding in
          the two county region and the state



                   % overcrowded units

                                         40                                                               1990
                                         30                                                               2010



                                              Watsonville   Pajaro   Santa Cruz   Monterey   California
                                                                      County       County

   Source: US Census Data 1990, 2000 & 2010 – based on
  tenure by occupants per room 1.01 +


*1990 and 2000 US Census Data

                                                                                                             Action Pajaro Valley   75
                Household Size

Watsonville: average household size is 3.84
34% higher than the state average of 2.87.

Pajaro: average household size is 5.28
54% higher than the state average of 2.87.

Source: Pajaro Watershed IRWM planning document 2006


                                                       Action Pajaro Valley   76
Action Pajaro Valley   77
March 2012 Foreclosure Rate Heat Map

                                       Action Pajaro Valley   78
Geographical Comparison - Watsonville, CA June 2012

Foreclosure Activity Counts - Santa Cruz county, CA
Compare Areas

                                                      Action Pajaro Valley   79
Availability of Developable Land
Santa Cruz County:

Vacant residential land of one acre or more in the 95076 zip code: 497 parcels that can
be developed with single family homes and second units. There is no commercial zoned
acreage available. (Source: Santa Cruz County)

Monterey County has identified nine vacant and underutilized properties which can
yield 264 units, adequate to accommodate the County’s remaining RHNA (Regional
Housing Needs Allocation) of 174 units.” See the “Progress in meeting fair housing
goals” section for more on the RHNA. (Source: Monterey County Housing Element 2009-
2014, Adopted June 15, 2010)

 2030 GP Land Use Designation                  Acreage
 EM (Environmental Management)                  21.978
 GC (General Commercial)                        16.460
 I (Industrial)                                 29.184
 NCMU (Neighborhood Commercial Mixed
 Use)                                            7.369
 PQP (Public/Quasi Public)                      10.023
 RHD (High Density Residential)                  1.342
 RLD (Low Density Residential)                   6.081
 RMD (Medium Density Residential)               17.580
 SPA (Specific Plan Area)                       87.148

                                                               Action Pajaro Valley   80
                          Developable Land
                                   Limited acreage is available
              • Santa Cruz County – 497 parcels of record in 95076 zip code that can be
              developed with single family and second units – source #1
              • Monterey County/Pajaro - 9 vacant properties that could yield 264 units
              per RHNA (Regional Housing Needs Allocation) – source #2
              • Watsonville – see chart below

     Source #1 – County staff
     Source #2 – Monterey County
     Housing Element 2009-2014


(From Watsonville Vista 2030)

                                                                    Action Pajaro Valley   81
Vacant Industrial Buildings Hard to Find in Watsonville

                                        Action Pajaro Valley   82
Few Office Spaces Available in Watsonville

                                      Action Pajaro Valley   83
Number of Acres Annexed
In 2000, 134 acres of urbanized land around Freedom were annexed. In 2002, 14.4 acres
of prime agricultural land were annexed for a senior housing development (Villages). In
2006, 95.7 acres (Manabe-Ow property) of prime agricultural land was annexed for
business development and wetland conservation.

From 2000 to 2010, 244.1 acres have been annexed by Watsonville.

Source: LAFCo 2010, SC County

                                                               Action Pajaro Valley   84
Number of Land Divisions Approved

Relatively few land divisions have been completed in the unincorporated portions of
Santa Cruz County in the past few years.

From 2007 to 2010, 4 rural minor land divisions have been completed for a total of 6
new parcels. One urban minor land division created three new parcels.

(SC County Planning Dept)

For Watsonville, there were two industrial subdivisions and six residential subdivisions
approved between 2005 and 2010. (Source: Bradley Olin, City of Watsonville)

                                                                 Action Pajaro Valley   85
Number and Type of Building Permits Approved

A total of 640 building permits issued between 1/1/05 and 1/1/10 with the majority
being residential permits. (The full list of these permits is available electronically as a
PDF in the GMS folder; Source: Bradley)


A total of 357 building permits were issued from 2000-2009 in Pajaro (a third of which
were for mobile homes in 2005). (Source: Pajaro data packet. For breakdown of type per
year, see data binder)

Santa Cruz County:

867 building permits were issued between 2000 and 2009 in Santa Cruz County with the
boundaries of 95076 and 95077 zip code areas. (See the data binder for the breakdown)

                                                                    Action Pajaro Valley      86
Progress in Meeting Fair Housing Goals
Low and Very Low income housing units made up 33% of the RHNA between 2002 and
2007, they only made up 15% of actual units built in that time. Compare this with Above
Moderate income housing making up 48% of the RHNA, but making up 63% of actual
units built. This was not the case in 1989-1996 when production met the community’s
needs. Considering the fact that 19.1% of Watsonville residents are below the poverty
level (6.7% above the national average).

For Monterey County as a whole, Low and Very low housing production is only ~1/6 of
the RHNA while Above Moderate Income housing production is twice as much as the

The overall trend is that low-income housing is not being built to meet the demand
while excessive above moderate income housing is being built.

Also see:

For Watsonville,
          1989-1996 RHNA             Units Actually Completed              Difference
Very Low:        249 (17%)                           189 (26%)                    60
Low:             102 (7%)                             40 (6%)                     62
Moderate:        411 (27%)                           117 (16%)                   294
Above Moderate: 702 (49%)                            368 (52%)                   374
TOTAL:            1504                               714                         790

                         2002-2007 RHNA versus Units Built 2001-2007
 Income/affordability                            Number of new units
                            2002-2007RHNA                                    Difference
      Category                                         built
      Very Low                 484 (21%)              68 (4%)                   -416
        Low                    284(12%)              175(11%)                   -109
      Moderate                 428(19%)              353(22%)                    -75
   Above Moderate              1087(48%)            1017(63%)                    -70
        Total                    2,283                 1613                  -670 (29%)

                        Watsonville’s Regional Housing Need, 2007-2014

                                                                   Action Pajaro Valley   87
         Housing Affordability
                   14% of very low income goal met
                   62% of low income goal met
                   94% of above moderate goal met

                           2002-2007 RHNA
                        Watsonville- % of total by   Number of new units built   % of RHNA goal met

      Very Low                  484 (21%)                     68 (4%)                   14%

         Low                    284(12%)                     175(11%)                   62%

      Moderate                  428(19%)                     353(22%)                   82%

   Above Moderate              1087(48%)                    1017(63%)                   94%

        Total                     2,283                        1613                  -670 (71%)

Source: 2002-2007 RHNA versus Units Built 2001-2007 – provided by City of Watsonville


    Income Category as
    a percent of County                     Number of                 Percentage
     Median Household                         Units                    of Units
    Extremely Low                               103                      11%
    Very Low                                    103                      11%
    Low                                         155                      17%
    Moderate                                    175                      19%
    Above Moderate                              387                      42%
    Total                                       923                     100%

                                                                           Action Pajaro Valley       88
                         Housing Production in Watsonville by Type,
                             January 2007 through March 2009
   Project             Status:       Total    Units by Income Level         Methodology of
 Name/Address       (A)pproved,      Units                                   Affordability
                       (B)uilt,                                             Determination
                     (P)ending,                                                (1) Sales Price
                      (U)nder                                               (2) Rent Price
                    Construction              VL     L      M AM            (3) Type of Subsidy
  Pennsylvania           (U)           6       -      -     -      6                1
 134 East Beach          (P)           5       -      -     -      5                2
  Chappel Loop           (U)           6       -      -     -      6                1
     24 White            (A)           2       -      -     -      2                2
 131 West Fifth          (U)           3       -      -     -      3                2
     484 Beck            (P)           8       -      -     -      8                2
  157 Riverside          (A)          16       1     1      -     14                2
   Transitional          (A)          12       4     4      4       -               3
   201 Pacifica          (A)           23      2      2     1     18                2
 30 West Beach           (P)           74      5      5     5     69                2
    36 Airport           (A)           19      1      1     1     16                1
    60 Blanca            (A)           13      1      1     -     11                2
    55 Airport           (P)            5      -      -     -      5                2
    119 Roach            (P)            3      -      -     -      3                2
       Total              -           195     14     14    11    166                -

        Estimated Capacity and Affordability of New Housing on Remaining Housing Sites
                                                   Affordability Distribution
Location of
                  Unit                                                               Above
 Housing                     Extr. Low Very Low               Low          Mod.
                Capacity                                                              Mod.
   Sites                        (8%)            (8%)        (20%)         (20%)
                   276            22              22           56            56        120
  Family           195            16              16           40            40         83
  Family           543            44              44          109           109        237
 ADUs and
                   105            12              40           53             0          0
Other Infill
Total Units       1119            94             122          258           205        440

                                                                 Action Pajaro Valley   89
           Remaining Need Based on Units Approved/Under Construction

                                           Credits Toward RHNA
             Affordability                   Units
             Distribution     RHNA                     Remainder
                                          since 2008
              Very Low          206           13           193
                Low             155           13            142
             Moderate           175           13            162
           Above Moderate       387          127            260
             Total Units        923          166            757

For Monterey County,

                                                         Action Pajaro Valley   90
Figure 4.34: AMBAG Regional Housing Needs Allocation for the 2007-2014
                          Planning Period
   Income Group          Total      Above     Moderate      Low           Very Low
                        Housing    Moderate   Income      Income        Income Units
                         Units     Income      Units       Units
                        Required    Units
Required Percentage      100%        42%        19%         17%              22%

  Regional Total         15,130      6,335      2,870      2,545             3,380
 Monterey County         11,915     4,989+      2,260      2,004             2,662
 Santa Cruz County       3,215      1,346        610        541               718
Unincorporated Santa     1,289       539         245        217               288
    Cruz County
  City of Capitola        143        60          27          24               32
 City of Santa Cruz       672        282         127        113               150
City of Scotts Valley     188        78          36          32               42
City of Watsonville       923        387         175        155               206

      (From Santa Cruz County Housing Element, Adopted Jan 2010)

                                                                   Action Pajaro Valley   91
General Assessment of Degree to which Built
Development has met Design Goals
Watsonville - Over the past 5 years, the City of Watsonville has overseen development
according to codified development standards and commercial and residential design
guidelines. While the construction of single family homes is not subject to design
review, all multi-family and commercial construction is reviewed by City staff for
compatibility with both the Zoning Ordinance and General Plan.

In addition, the design review process is directed by the City’s Livable Community
Guidelines adopted in 2002. The guidelines address neighborhood and residential design
using local photos and diagrams and various case studies. As a result, developers have
been able to build residential projects, which meet the community’s expectation with
greater certainty and predictability. (Source: City of Watsonville, 2008-2013 Housing

Watsonville Livable Communities Residential design guidelines- there's 201 Pacifica, the
new affordable housing rental project, and then the condos behind that on Pacifica.
 There's also Vista Montana, which includes school, parks, and green energy. Then
there's the transit housing at 120 West Beach Street.

                                                                Action Pajaro Valley   92
Adequacy of Educational Facilities to serve the Current
and Projected Populations
Current Pajaro Valley Unified School District student enrollment is approximately 19,364
and the student capacity is 23,473. The projected student population for 2013/14 is
20,456, still under the current student capacity of PVUSD facilities. (See Pajaro Valley
Unified School District Facility Master Plan 2008 in data binder for more details)

See Appendix II: Educational Facilities

                         PVUSD Capacity
                       PVUSD approaching capacity

                • Total enrollment projected
                for 2012-2013 school year
                is 20,039

                • District capacity at 21,253
                  Source: PVUSD Facility Master Plan 2008


                                                               Action Pajaro Valley   93
Adequacy of Community Facilities to serve the Current
and Projected Populations

According to the 2003 Development Support Plan, Pajaro lacks civic facilities and
community services such as community meeting spaces/plazas, medical/dental/eye
clinics, youth center, and adequate childcare facilities. In the RDA’s 2005-2010 5-yr Plan,
plans are proposed for the Pajaro Commons Community Center. This would include 42-
45 dwelling units and a 4,000 square foot community center. The community center
would include a childcare center, a tot lot, park and parking, as well as county offices.
The Monterey County Redevelopment Agency has set aside $1.15 million for this
project. As of now, this project has not been completed, nor is it listed on the Feb 2010
list of active planning projects for the Monterey County Planning Dept.

Recently, a project that would convert a portion of the senior center at the Porter
Vallejo mansion into a medical clinic as well as childcare center has been approved. This
facility would only be 1,570 square feet and would not adequately serve the current or
projected populations of Pajaro.

                                                                 Action Pajaro Valley   94
Adequacy of Recreation Facilities to serve the Current
and Projected Populations


In fall of 2009, the Watsonville City Council adopted the final Parks and Facilities Master
Plan which outlines goals and strategies for prolonged success over the course of the
next several decades. The plan incorporated parks tour, completed in 2009, to identify
the overall condition of existing park amenities and facilities and to evaluate the park
system according to its strengths and weaknesses. The Parks and Community Services
Department provides a variety of parks and facilities that support diverse recreation
experiences for many residents in the City. Generally speaking, Watsonville’s park
system offers an abundance of recreational opportunities for residents. Residents tend
to frequent their local neighborhood parks. (Source: Bradley)

Forecasted population growth will increase the demand for recreational facilities
dramatically. Watsonville’s population is expected to increase by 46 percent (nearly
23,000 new residents) by 2030. Figure 9.3 summarizes the acreage of existing parks and
the demand for future parks when City standards are applied to projected population
growth. School playgrounds are not factored into this calculation although they provide
significant opportunities for community recreation. Until a formal agreement between
the City and Pajaro Valley School District is established for long- term operation and
maintenance, the City will not count these areas towards the community’s open space
demand. (Source: Watsonville Vista 2030)

                                             Parks & Trails
                               More parks are needed to meet demand

   Source: Catalyst Park Analysis, 2004. Based on existing park data provided by the
   City of Watsonville and the AMBAG population growth forecast.

                                                                                       Action Pajaro Valley   95
Parks & Trails

            Action Pajaro Valley   96

According to the 2003 Development Support Plan, Pajaro lacks community park facilities
suitable or recreational pursuits and other outdoor activities. In the RDA’s 2005-2010 5-
yr Plan, the RDA planned to set aside $449,000 by 2010 to facilitate in park and
recreation facility construction.

Currently, the Pajaro Neighborhood Park is in its early stages of development. The land
(4.9 acres) has been set aside and a final EIR has been written. The Redevelopment
Agency has set aside $450,000 and has recently received a $5 million state grant for
construction. Construction would most likely begin in 2012.

It is standard to have 5 acres of park for every 1000 people. This would mean with the
4.9 acre park, Pajaro would still not have adequate recreational facilities to meet the
needs of its current or future populations. (Pajaro Community Plan – Principal Findings

                                                                Action Pajaro Valley   97
                  Air Quality
The Watsonville, CA air quality index is a median value which
considers the most hazardous air pollutants. The Watsonville,
CA air quality index is 27.6% less than the California average
and 5.4% less than the national average.

The Watsonville, CA pollution index is the sum of the most
hazardous air pollutants displayed in pounds. The Watsonville,
CA pollution index is 76% less than the California average and
18% less than the national average.

Air quality information - Measurement
Total Days measured 306
Days with good air quality 293
Days with moderate air quality 13
Days w/ poor A.Q. for sensitive groups 0
Days with unhealthy air quality 0

                                                 Action Pajaro Valley   98
Adequacy of Health Facilities to serve the Current and
Projected Populations
“Only 7.9% of Santa Cruz County residents indicated having no health insurance, while
30.6% of Pajaro Valley respondents reported having no health insurance. The increasing
costs of care and diminishing health insurance coverage are putting strains on the ability
of Pajaro Valley residents to receive care. Fourteen percent (14.7%) of Pajaro Valley
residents were unable to obtain health care when needed, in contrast to only five
percent (5.8%) of residents in the rest of the County. The two primary reasons stated for
why Pajaro Valley residents were unable to obtain needed health care were lack of
insurance coverage and the cost of receiving care. Pajaro Valley residents were also far
more likely (21.5% vs. 2.7%) to get their medical care at a community clinic, such as
Salud Para La Gente, Planned Parenthood, Santa Cruz Women’s Health Center, or the
County Clinic.” (Pajaro Valley Community Health Trust 2007 Community Assessment

In addition to the community clinics, the Watsonville Community Hospital provides
immediate care, a birthing center, etc. The bottom line is that facilities are adequate,
but many Pajaro Valley Residents don’t have access to higher quality care because they
do not have health insurance.

                                                                 Action Pajaro Valley   99
                                   KEY FINDINGS
         Survey provided by the PAJARO VALLEY COMMUNITY HEALTH TRUST

• Over twenty six percent (26.6%) of Pajaro Valley (PV) respondents reported that their
overall health is only fair to poor compared to 13.8% of the Balance of Santa Cruz
County (BOSCC). Also, PV respondents who reported having a disability increased from
16.8% in 2007 to 19.8% in 2011.

Access to Healthcare
• The number PV respondents with dental insurance coverage decreased in the PV area
from 68.7% in 2007 to 57.9% in 2011. Similarly, the BOSCC, coverage decreased from
61.3% in 2007 to 57% in 2011. One factor for this decline is the elimination of Denti-Cal
benefits. This finding demonstrates that the insurance coverage itself is shrinking in
scope; for example, the proportion of insurance policies that include dental coverage
fell from 68.7% in 2007 to 57.9% among PV respondents.
• The number of PV respondents that needed healthcare, but were unable to receive it,
decreased from 14.7% in 2007 to 9.5% in 2011, a positive trend.

Fruit and Vegetable Consumption
• Fruit and vegetable consumption remained constant in the PV and the BOSCC from
2007 to 2011. In PV, 60.4% of respondents said they eat five of more fruits and
vegetables per day while 54.5% of the BOSCC respondents said they eat five of more
fruits and vegetables per day.

Fast Food Consumption
• In 2011, 50% of PV respondents reported they consumed fast food one or more times
in the past seven days in comparison to only 33% of the BOSCC.

Physical Activity/Diabetes
• Physical activity has decreased in both PV residents as well as the BOSCC, which also
coincides with the increase in BMI. There was also an increase in those diagnosed with
diabetes or pre-diabetes; PV respondents increased from 13.6% in 2007 to 17% in 2011
compared to the BOSCC which increased from 6.6% in 2007 to 10.9% in 2011.

• In 2011, 64.3% of PV respondents reported they are overweight or obese while 53.3%
of the BOSCC residents reported the same.

• The percentage of PV respondents who felt they are better off financially this year
compared to previous years decreased from 43.8% in 2007 to 25.3% in 2011. This trend
is also true for the BOSCC.

                                                               Action Pajaro Valley   100
• In 2011, 60.7% of PV respondents said they felt the impact of gangs in their
neighborhoods while only 31.5% of respondent in the BOSCC responded the same. This
is a significant difference.

• In 2011, 17.4 % of PV respondents felt that racism in Santa Cruz County was a big
problem compared to 8.1% of the BOSCC. This is a significant difference.
• In 2011, 88.9% of PV respondents feel that people in their neighborhood help one
another while 92.3% of the BOSCC felt the same.

• Overall satisfaction with the local education system dropped among PV respondents
from 35.6% in 2007 to 27.4% in 2011. The BOSCC respondents reported an increase in
satisfaction rates from 21.4% in 2011 to 24.1% in 2011

                                                              Action Pajaro Valley    101
Adequacy of Roads to serve the Current and Projected

The operational performance of the City’s roadway system is expressed using “Levels of
Service.” Level of service (LOS) is a measure of the quality of the overall operating
characteristics of a street or highway as perceived by the motorist. Traffic conditions are
typically measured through the evaluation of peak hour levels of service that
characterize traffic conditions associated with varying levels of traffic. Levels of service
range from LOS A to LOS F. Figure 6.2 describes traffic flow quality for different levels of
service. Level of Service D provides an acceptable level of operation for urban areas and
is generally used for planning purposes. The City's general plan requires street
improvements when traffic volumes exceed LOS D on roadway segments and at
signalized intersections except for those accepted to operate at less than a LOS D in the
2004–2030 Major Streets Master Plan as updated in 2005. Maintaining a minimum LOS
D may require roadway improvements that anticipate future growth within the City and
the region. This level of service standard is not applicable at unsignalized intersections
where peak hour operations may exceed LOS D, but a traffic signal is not warranted.
Unsignalized intersections that operate worse than LOS D should be evaluated for
feasible improvements to improve operations.

(Source: Watsonville Vista 2030)

                                                                 Action Pajaro Valley   102
(Source: City of Watsonville Vista 2030 Draft General Plan)

Santa Cruz County:

“Santa Cruz County’s local street and road system is reaching a point of crisis. A 2009
assessment of local streets and roads found that on a scale of zero (failed) to 100
(excellent). The statewide average pavement condition index is 68 (“at risk category.”)
Santa Cruz County’s average pavement condition is currently rated at 50, the edge of
“poor” which is a rating of 49. Santa Cruz County also has the dubious distinction of
being among the top five counties in the State with the worst road conditions. * To
maintain the current pavement index would require $10 to $12 million a year”

(*California Statewide Local Streets and Roads Needs Assessment, 2009)

                                                               Action Pajaro Valley   103
Adequacy of Transit to serve the Current and Projected
The Santa Cruz County Transportation Commission estimates that 2-3% of the daily trips
taken in the Watsonville area are via transit – either fixed route buses or demand
responsive Para transit.

Twenty years ago, a survey of Watsonville transit users showed a trend which mirrors
the County as a whole: Watsonville transit riders are generally transit-dependent,
meaning that they do not have a car available to them for daily, personal use. To some
extent this trend remains true today. However, with ever-increasing congestion and
new more reliable services, transit is a viable and competitive form of transportation.

Local bus service is provided by the Santa Cruz Metropolitan Transit District (SCMTD).
Bus service to the Salinas/Prunedale and Castroville/ Marina areas in Monterey County
are available via the Watsonville transit center on Monterey- Salinas Transit (MST).
Regional service to and from Watsonville is provided by Greyhound. Limited Amtrak bus
service is also available between Watsonville and San Jose. Private taxi cab service and a
number of senior and social service agencies provide door-to-door transportation,
primarily for elderly and/or disabled persons.

(Source: City of Watsonville Vista 2030 Draft General Plan)

              • Strong economic growth in the Bay Area with higher
              paying jobs combined with relatively lower cost
              housing in Santa Cruz County creating a surge in inter-
              county commuting

              • Land use patterns that promote driving

              • Lack of funding at the federal, state, and local level
              for transportation improvements

              • Lack of public and agency consensus on
              transportation options and solutions.

               Source: Watsonville Vista General Plan 2030                       45

                                                               Action Pajaro Valley   104
Adequacy of Water Supply to serve the Current and
Projected Populations
Analysis of 2005 water records in the City of Watsonville indicates that new residential
development generates water demand of approximately .25 acre feet per dwelling unit
and new commercial/industrial development generates water demand of approximately
1.1 acre feet/acre. Given the infill mixed use land use scenarios contemplated by the
plan, it is likely that the actual water usage will be less. In 2005, baseline water use
within city limits totaled 5,306 acre feet per year. Based on this analysis it is estimated
that approximately 2,000 acre feet of new municipal water supply will be required to
serve the 5,700 units and 7,500 jobs estimated to be generated through 2030 for a total
gross requirement of 7,328 acre feet per year. However, with aggressive water
conservation efforts and ground water basin savings it is anticipated that overall
demand in the service area will increase by only 22 acre feet per year.

Based on recent water management practices, current water demand within City limits
in 2009 was actually reduced from 2005 baseline figures to 5,268 acre feet per year, a
reduction of 28 acre feet. Additionally, the City recently completed construction of a
new Recycled Water Facility adjacent to the City’s existing Wastewater Treatment Plant
in conjunction with the PVWMA BMP. The City and PVWMA were able to secure grant
funding for the design and construction of the Recycled Water Facility. The facility has
the ability to produce 7,000 acre feet of treated water that needs to be blended with
well water to go to local farmers for crop irrigation. The facility currently provides 4,000

                                                                 Action Pajaro Valley   105
acre-feet per year to local farmers for crop irrigation, that will help reduce groundwater
overdraft and related seawater intrusion, and to reduce treated effluent discharge to
the Monterey Bay. These figures were not used to reduce water demand figures for city
water use. (source: City of Watsonville)

Water demand projections for the PVWMA service area through 2025 can be found in
the following table. Projected demand exceeds the estimated sustainable yield of the
groundwater basin.

Recently, the Pajaro Valley Water Management Agency (PVWMA) developed funding for
and developed a Basin Management Plan Ad Hoc Committee to find consensus in the
community on local water supply solutions. The PVWMA Basin Management Plan Ad
Hoc Committee is the leading process for public engagement, technical project
development and preliminary funding analysis. The Ad Hoc Committee is made up of a
broad range of stakeholders which has delivered a draft Basin Management Plan for the
PVWMA Board to review.

Another group called the Community Water Dialogue, led by a prominent agricultural
company and the Santa Cruz County Resource Conservation District, involves growers
and members of the community in developing water reduction and supply solutions.
This effort is focusing on water use best management practices such as reduced
irrigation and managed aquifer storage projects. The Dialogue effort has representation
on the PVWMA Basin Management Plan Ad Hoc Committee.
With existing measures in place, the average overdraft of the aquifer is estimated at
12,000 acre feet per year. Until projects identified and funded in the new BMP are in
place, salt water intrusion will continue to reduce fresh water storage capacity of the
Pajaro Valley aquifer.

                                                                Action Pajaro Valley   106
               Water Supply
•The Pajaro Valley water supply has salt water
intrusion at the coast due to groundwater

•To stop salt water intrusion and balance the
basin, PV needs 12,300 acre feet per year

• Potential solutions include:
   •Demand management/conservation
   •Increased recycled water demand
   •Harkins Slough recharge
   •Increased recycled water storage
   •Watsonville Slough recharge
   •College Lake with Inland Pipeline
 Source: PVWMA Basin Management Plan Ad Hoc Committee presentation June 2012

                                                                  Action Pajaro Valley   107
Adequacy of Wastewater to serve the Current and
Projected Populations
According to the County of Santa Cruz General Plan: Housing Element, 2009:

The City of Watsonville Wastewater treatment Plant has a total capacity of 16.5 million
gallons per day (mgd). This treatment capacity is shared among the Freedom County
Sanitation District, Salsipuedes Sanitation District, Pajaro County Sanitation District and
the City of Watsonville. The Watsonville Plant provides advanced secondary treatment.
Through the Freedom, Salsipuedes, and Pajaro County Sanitation Districts, the County
has wastewater treatment entitlement to 3.201 mgd at the City of Watsonville
Treatment Plant, of which it currently uses 2 mgd. Sufficient capacity exists to meet the
future growth of the County General Plan.

According to Santa Cruz County Housing Element 2006:

In 1998 the City completed improvements to the Sewer treatment plant that were
designed to process 12 million gallons of effluent per day at a secondary level of
treatment. In 2004 the average daily flow was 7.7 million gallons per day. The City
recently upgraded the wastewater treatment plant, to include the water recycling
facility, which treats up to 4,000 acre-feet per year of wastewater to the tertiary
treatment level. This water is supplied to the Pajaro Valley Water Management Agency
which will distribute the water to coastal farmers, as part of the Agency’s Basin
Management Plan developed to control seawater intrusion

According to City of Watsonville:

Watsonville provides wastewater treatment for the incorporated City, the Freedom and
Salsipuedes Sanitation, both operated by Santa Cruz County, Pajaro Sanitation District in
Monterey County. The plant has undergone several expansions and is adequate to meet
existing and future wastewater flows.

                                                                 Action Pajaro Valley   108
Adequacy of Storm Drainage to serve the Current and
Projected Populations

Following the 1995 flood, Monterey County RDA (with the cooperation of the Dept of
Public Works) prepared and adopted the “Pajaro Master Drainage Plan” which was
ultimately completed. The system was designed to deal with 10-25 year storm events,
and observations have confirmed noticeable improvements in drainage.

                                                            Action Pajaro Valley   109
Adequacy of Flood Protection to serve the Current and
Projected Populations

The Pajaro River has suffered several major floods over the past few decades due to
inadequate capacity of the existing levee system and the maintenance management of
the channel. As the population living and working near the river increases and the
economic impacts of floods grow, finding solutions to the capacity and maintenance
challenges becomes even more pressing. The U.S. Army Corps of Engineers (Corps) and
local partners, including the counties of Monterey and Santa Cruz, are developing a plan
for the levee system of the Pajaro River. The Levee Reconstruction Project is the local
and federal response to address the immediate and future flood protection needs of the

Until the Levee Reconstruction Project is completed, the Lower Pajaro River area will be
alarmingly under-protected. While the present levee capacity is estimated to be just
22,000 cfs, the fully implemented Levee Reconstruction Project will provide flood
conveyance of the 100-year flood (44,400 cfs). The current design capacity is 19,000 cfs.
The problem of inadequate flood conveyance capacity within the Pajaro River levee
system is documented in the U.S. Army Corps of Engineers, San Francisco District report:
Pajaro River at Watsonville , CA; Preconstruction Engineering and Design Phase General
Reevaluation Report Pre-Conference Materials for F3 Milestone feasibility Scoping
Meeting (November 2000).

The threat of significant flooding is the primary problem that has been identified in the
study area. The City of Watsonville, the unincorporated Town of Pajaro, and
surrounding agricultural areas in Monterey and Santa Cruz Counties are subject to
flooding from the Pajaro River (Main stem). Total expected annual damage results from
the HEC-FDA risk based-analysis for the without project condition are estimated at $63.6
million. The expected annual exceedance probabilities (probability weighted averages
incorporating uncertainties associated with hydrologic, hydraulic, and levee failure in all
of the model simulations) are estimated to be 6.5 to 7.8 percent (15- to 13-year events)
on the Pajaro River Main stem (in the 12 mile long levee portion of the river below
Murphy Road Crossing).

The March 1995 flood, with peak flows of 21,500 cfs, caused approximately $95 million
of damage. $67 million was due to damage to the agricultural fields. The Town of Pajaro
suffered $28 million of non-agricultural damage (Alternative Formulation Briefing
Document, Corps 2004 Page 22).

Completion of the project will qualify the area to potentially be mapped out of the
FEMA 100-year flood plain and the requirement for NFIP insurance (Alternative
Formulation Briefing Document, April 2004, Page 46 ). This is especially important to the
area due to its low economic status. The project was first federally authorized by the
Flood Control Act of 1966, and the Water Resources Development Act (WRDA) of 1990,

                                                                Action Pajaro Valley   110
with WRDA 1986 cost sharing ratios. Recently, the project’s planning has made great
progress towards a local consensus for set-back levees and attention to natural river

One financing scenario for the Levee Reconstruction Project has already been defined.
The share split for the entire project (Phase 1 and Phase 2) is approximately 75% federal
and 25% local. The local sponsor counties will pay for land easements, rights of way,
relocations, and disposals (LERRDs).

A bill has been passed and signed into law (AB 2348) that would authorize the state to
cost-share in the Levee Reconstruction Project. This would reduce the local share by
50%. Assemblyman John Laird (27th District) introduced this bill because of the flood
threat to essential farmland and the communities of Watsonville and Pajaro. AB 2348
enables the State Subvention funds to be applied to the match required for federal cost
sharing and likely used for the LERRDs.

A critical step towards implementation of the Levee Reconstruction Project is to reach
consensus on the design and environmental considerations of the project. Action Pajaro
Valley (APV) is leading the stakeholder consensus and public education process. The
APV project is comprised primarily of consensus building, stakeholder coordination,
public education and outreach, developing community acceptable local funding
mechanisms for the larger Levee Reconstruction Project, and analyzing governance
alternatives for the Levee Reconstruction Project.

Local funding for flood protection cannot be raised without the support of property
owners and individuals in the project area. This area is home to a wide cross section of
people with varying interest’s and socio economic circumstances, as well as several
endangered species including the steelhead.
An important “interim” solution has been developed. The bench excavation project,
began in 2012, is considered a much needed maintenance project that will provide for
the excavation of excess sediment from select location along the upper terrace benches
inside the Pajaro River levees in order to improve the flood carrying capacity and flood
plain function within the levee system along the mainstem. Up to 336,000 cubic yards of
sediment will be excavated over the course of two years. The project is intended to
improve the capacity for higher frequency flow events in a range between a two-year
storm and a twenty-year storm. It does not improve upon lower frequency high flow

APV’s web site is a valuable resource for the community to
access information, current news, and calendar announcements of activities going on in
the watershed. The web portal presents a one-stop look at the integration of water
issues in the Pajaro Valley and up-stream in the watershed as well.

See for more information about the project proposals being

                                                               Action Pajaro Valley   111
                        Flood Risk
    The “no-project” option shows major flooding


              Flood Protection
Current flood project option will cost locals $50 million

   Source: Santa Cruz County Flood Control and Water Conservation District staff


                                                                                   Action Pajaro Valley   112
Adequacy of Water Quality to serve the Current and
Projected Populations
According to the County of Santa Cruz General Plan: Housing Element, 2009:

Water quality in the south county area is impacted by seawater intrusion as well as
nitrate and other chemicals from agricultural practices, animal facilities and septic
systems. The PVWMA completed a project at Harkins Slough that provides ground water
storage and recovery in the shallow aquifer in that area. PVWMA and the City of
Watsonville recently completed the construction of an advanced tertiary treatment
facility to provide recycled water for agricultural irrigation on coastal farms, which could
help to relieve some of the seawater intrusion issues by limiting groundwater pumping
in these areas.

                    Water Quality Issues

               • Nitrates
               • Saltwater Intrusion
               • Agricultural runoff
               • Sediment


                                                                 Action Pajaro Valley   113
Evidence for Protecting and Preserving the Valley’s
Agricultural Resources

Agriculture faces many challenges in the Pajaro Valley.

      The effect of saltwater intrusion has had a significant impact on the industry and
       solutions being developed will require more conservation, use of recycled water
       as well as supply projects that will have a cost to the landowners.

      Potential flooding from the Pajaro River is a threat to growers as well. With the
       current 12 year storm protection within the levee system, landowners are at risk.
       The Army Corps of Engineers is developing a levee project in conjunction with
       the two county local sponsors and there is a bench excavation project about to
       break ground. However, the cost of the levee project to landowners and
       residents will cause an impact.

      Emerging Food Safety rules have an impact on agriculture. Not only due to on
       farm practices but if there is a flood, the damages for the amount of time that

                                                               Action Pajaro Valley   114
        product will remain out of market and the potential for brand name degradation
        are great.

       The issue of agricultural water quality runoff waiver at the Regional Water
        Quality Control Board level has been contentious and is now being addressed in
        the courts. Cooperation among growers and resource managers may shift
        depending on the results of that process.

       Local growers are saying that there is a labor shortage in the Pajaro Valley. Some
        growers are calling for a comprehensive immigration reform package that
        facilitates the need for seasonal labor.

Department of Water Resources (DWR) land use surveys were collected for Monterey
and Santa Cruz Counties for 1966, 1975, 1982, 1989, and 1997. Urban land use
increases have generally resulted from the conversion of native vegetation land, not
agricultural land. Urban land use has increased consistently from only 4,800 acres in
1966 to nearly 12,900 acres in 1997. This increase reflects general population growth
trends throughout the State of California over the last several decades. The total
agricultural land area has remained relatively constant from 1989 onward. In 1997,
approximately 30,200 acres of irrigated agricultural land were within the PVWMA
service area. Figure 2-6 shows the 1997 breakdown for the land uses within the
PVWMA service area.

Yellow: Native vegetation
Green: Agriculture
Red: Urban
(IRWMP Section 2- Regional Description)

                                                                Action Pajaro Valley   115
Santa Cruz County:

653 agricultural acres have been converted for urban use from 2000-2006. The majority
of those acres (59%) were considered “Prime Farmland.” (Source: Santa Cruz County
Community Assessment, 2009)

                                                            Action Pajaro Valley   116
      Major Employers

Year 2010   Employer                   Industry                      Number of Employees

            Pajaro Valley Unified School
1                                        Government/Education        2061

            Watsonville Community
2                                      Health & Human Services       693

3           Fox Racing Shox            Sporting Goods                400

4           City of Watsonville        Government                    374

                                       Nautical and Maritime
5           West Marine                                              279

                                       Food Processing &
6           S. Martinelli & Co.                                      180

7           Target, Inc.               Retail                        211

                                       Alcoholic Beverage
8           Couch Distributing                                       170

9           Salud Para La Gente        Health & Human Services       160

10          Mi Pueblo Food Center      Grocery/Retail                144

                                                               Action Pajaro Valley   117
Action Pajaro Valley   118
Unemployment by Industrial Sector

The following graphs show EDD’s employment changes by industry sector for Santa Cruz
County and Monterey County. We can expect that unemployment will increase in
declining industries. The fastest growing industry sectors for both counties are
Education Services, Health Care and Social Assistance, and Government. The farm
industry is expected to grow substantially Monterey County, generating 5,700 jobs.

                                                           Action Pajaro Valley   119
EDD, 2010 for Santa Cruz County

EDD, 2010 for Monterey County

                                  Action Pajaro Valley   120
Santa Cruz County                         Monterey County
Occupational projections for the          Occupational projections for the
period 2008 to 2018 forecast:             period 2008 to 2018 forecast:
• Approximately 11,600 new jobs from      • Approximately 17,900 new jobs from
industry growth,                          industry growth.
• About 26,000 job openings from Net      • About 44,900 job openings from Net
Replacements,                             Replacements.
• A combined total of nearly 37,600       • A combined total of nearly 62,900
job openings.                             job openings.

Nonfarm employment, which makes           Farm employment, which makes up
up about 84 percent of total              about 23 percent of the county’s total
employment, is expected to grow by        employment in 2008, is expected to
9.8 percent. Approximately 7,600 jobs     grow by 13.2 percent. Approximately
will be created in the following          11 percent of California’s total farm
industry sectors: Government (4,100       employment is in Monterey County.
jobs), Education Services, Health Care,
and Social Assistance (2,500 jobs) and    Nonfarm employment, which makes
Leisure and Hospitality (1,000 jobs).     up about 68 percent of total
The Manufacturing sector is expected      employment in 2008, is expected to
to continue its downward trend over       grow by 6.9 percent. Approximately 74
the projection period.                    percent or 6,600 jobs will be created in
                                          the following industry sectors:
                                          Education Services, Health Care and
                                          Social Assistance (3,400 jobs) and
                                          Government (3,200 jobs). The industry
                                          sector with the largest decrease is
                                          Manufacturing, which is expected to
                                          lose about 700 jobs.
Source: EDD

                                                               Action Pajaro Valley   121
Educational Attainment: Watsonville CCD, Santa Cruz County, California
Total:                                                                   42,939
Less than high school graduate                                           17,271
High school graduate (includes equivalency)                              8,838
Some college or associate's degree                                       10,168
Bachelor's degree                                                        4,437
Graduate or professional degree                                          2,225
Born in state of residence:                                              14,859
Less than high school graduate                                           1,914
High school graduate (includes equivalency)                              3,942
Some college or associate's degree                                       5,769
Bachelor's degree                                                        2,382
Graduate or professional degree                                          852
Born in other state in the United States:                                6,635
Less than high school graduate                                           727
High school graduate (includes equivalency)                              1,482
Some college or associate's degree                                       2,203
Bachelor's degree                                                        1,244
Graduate or professional degree                                          979
Native; born outside the United States:                                  205
Less than high school graduate                                           18
High school graduate (includes equivalency)                              20
Some college or associate's degree                                       106
Bachelor's degree                                                        44
Graduate or professional degree                                          17
Foreign born:                                                            21,240
Less than high school graduate                                           14,612
High school graduate (includes equivalency)                              3,394
Some college or associate's degree                                       2,090
Bachelor's degree                                                        767
Graduate or professional degree                                          377

Source: U.S. Census Bureau, 2006-2010 American Community Survey

                                                          Action Pajaro Valley      122
                Educational Attainment
               Watsonville has low education levels

                   Watsonville CCD, Santa
                   Cruz County, California Estimate

                  Total:                        42,939
                  Less than high school
                  High school graduate
                  (includes equivalency)
                  Some college or associate's
Source: 2010
US Census         Bachelor's degree             4,437
                  Graduate or professional


                                                         Action Pajaro Valley   123
Unemployment Rate over Time
The most recent unemployment data released by EDD shows that CDP’s (including
Watsonville) in South County have approximately twice the total County’s rate of

         Monthly Labor Force Data for Cities and Census Designated Places (CDP)
                               March 2011 - Preliminary
                             Data Not Seasonally Adjusted

                                Labor     Employ-    Unemployment

Area Name                       Force      ment    Number     Rate
Santa Cruz County               147,200    125,600   21,700    14.7%

Amesti CDP                        1,400      1,000      400     25.6%
Aptos CDP                         5,500      5,200      300      5.9%
Aptos Hills Larkin Valley CDP     1,300      1,200      100      4.6%
Ben Lomond CDP                    1,400      1,300      100      6.2%
Boulder Creek CDP                 2,800      2,300      500     16.9%
Capitola city                     6,300      5,800      500      8.5%
Corralitos CDP                    1,400      1,400        0      2.1%
Day Valley CDP                    2,000      1,800      200     10.5%
Felton CDP                          600        600        0      0.0%
Freedom CDP                       3,200      2,300      800     25.5%
Interlaken CDP                    4,200      3,000    1,200     29.4%
Live Oak CDP                      9,400      8,300    1,200     12.3%
Opal Cliffs CDP                   4,100      3,600      500     12.3%
Rio del Mar CDP                   5,600      5,100      500      9.1%
Santa Cruz city                  31,800     27,800    3,900     12.3%
Scotts Valley city                5,700      5,300      400      7.2%
Soquel CDP                        3,200      2,800      400     11.3%
Twin Lakes CDP                    3,400      3,000      400     11.4%
Watsonville city                 24,100     17,000    7,100     29.4%

The trend has been consistent for the past decade. Watsonville had twice the
unemployment as the County as a whole.

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                            Unemployment Rate Over Time


Unemployment Rate



                                                                   SC County

                     1990     2000                        2010

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Watsonville maintained a higher rate of unemployment compared to surrounding areas
in the 90’s:

         Unemployment Rate Over Time
       Watsonville unemployment has doubled since 2000
            - 24% (2010) up from 12% (2000)
       Watsonville unemployment is more than double the County average

        (Source: Santa Cruz County Community Assessment Project, 2010)

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Industry Cluster Employment

Source: IMPLAN CW Santa Cruz County employment database for calendar years

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       Total Jobs in Santa Cruz
          Total job numbers have decreased
          Paid Employees down by 15%

                                             First-quarter      Annual
                Industry code for pay period                                     Total
                                                 payroll        payroll
                  description    including                                  establishments
                                                ($1,000)       ($1,000)
                                 March 12

               Total for all
2010                                    68,106       661,563    2,856,153            6,781

               Total for all
                                        79,260       609,170    2,580,194
2000           sectors                                                               6,972

   Source: 2000 & 2010 MSA Business Patterns NAICS

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Mean Annual Salary (instead of hourly wages)

                        1990                             2000         2010

Santa Cruz County       37,112                           53,998       61,499

Monterey County         36,223                           48,305       58,448

Watsonville             32,171                           36,617       47,526

Pajaro                  25,195                           38,315       35,043

                               Poverty Level

         • 20% of population of Watsonville estimated to
         be below poverty level

         • 13.5% of population of California estimated to
         be below poverty level

              Source: US Census American Community Survey 2008-2010


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            Disadvantaged Community
A “disadvantaged community” is defined as a community with an annual median
household income (MHI) that is less than 80% of the statewide annual median household
                                                      City of Watsonville,
                                                      Santa Cruz County
                                                      MHI: $37,617 = 79.2 % of the State
                                                      MFI: $40,293 = 76 % of the State
Watsonville’s “per capita”
income is 58% of the state average.                   (MFI = Median Family Income)

Pajaro’s “per capita” income is                                   Town of Pajaro,
                                                                  Monterey County
44% of the state average.
                                                                  MHI: $38,315 = 80.7 % of the State
                                                                  MFI: $38,315 = 70 % of the State

    Source: Pajaro Watershed IRWM planning document 2006

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                 Top Economic Crops

                       Top Economic Crops
Crop Report 2002 & 2010
Categories                                                           2010 Total Value            2002 Total Value
•STRAWBERRIES, RASPBERRIES AND OTHER BERRIES                         $324,600,000                $153,167,000
•APPLES, WINE GRAPES AND OTHER TREE AND VINE FRUIT                   $16,698,000                 $ 12,527,000
•VEGETABLES                                                          $61,820,000                 $ 55,607,000
•NURSERY CROPS                                                       $118,786,000                $ 61,004,000
•LIVESTOCK AND ANIMAL PRODUCTS                                       $5,756,000                  $ 2,251,000
•TIMBER AND FIELD CROPS                                              $4,866,000                  $ 4,325,000
TOTAL VALUE                                                          $532,526,000                $288,881,000

There are more than 90 organic growers in Santa Cruz County with over 1600 acres in organic crops.
30% of the total acres of fruits and vegetables grown in Santa Cruz County are grown organically,
valued at over 26.1 million dollars.

In 2002, there were approximately 70 organic growers and over 800 acres in organic crops. No crop values were given.

     Source: Santa Cruz County Ag Commissioner Crop Reports

                               Top Economic Crops
         Crop Report 2000 & 2010
   CATEGORIES                               2011 TOTAL VALUE                            2000 TOTAL VALUE
   •Vegetable Crops                         $2,596,683,000                              $2,216,766,000
   •Fruit & Nuts                            $914,685,000                                $451,625,000
   •Nursery Crops                           $260,703,000                                $194,251,500
   •Livestock & Poultry                     $54,468,000                                 $40,704,850
   •Field Crops                             $16,824,000                                 $11,237,300
   •Seed Crops                              $9,404,000                                  $8,766,000
   •Apiary                                  $228,000                                    $52,550
   TOTAL VALUE                              $3,852,995,000                              $2,923,403,200

   One hundred thirteen farms, totaling approximately 19,863 acres of crop land and 9,929 rangeland, were
   registered in Monterey County in 2011. Utilizing organic principles defined in the California Organic Food Act of
   2003, these farms produce a wide array of commodities, such as: strawberries, spinach, broccoli, salad mix,
   celery, lettuces, cauliflower, raspberries and miscellaneous vegetables.

   The total estimated value of organic production in Monterey County during 2011 was $170,352,183. This
   compares with 2000 where we had an estimated value of $89,853,000.

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Source: Santa Cruz CAP 2010

According to the 2009 Monterey County Crop Report, the top economic crops and their values are
         as follows:

         Strawberries: $756,144,000

         Leaf Lettuce: $736,570,000

         Head Lettuce: $435,952,000

         Nursery Products: $294,572,000

         Broccoli: $272,919,000.

According to the 2009 Santa Cruz County Crop Report, the top economic crops and their values
are as follows:

         Strawberries $172,582,000

         Raspberries $104,265,000

         Indoor Cut Flowers $38,991,000

         Landscape Plants $29,831,000

         Misc. Berries $29,341,000

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Major Revenue Sources

Source: Santa Cruz CAP 2010. Applies to all of SC County.

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Transient Occupancy Tax
             1998      2009         2010                                        2011          %          %
Jurisdiction                                                                    Est.          Change:    Change:
                                                                                              2010-      1998-
                                                                                              2011       2011
Capitola              $286              $605                $592                $662          11.9%      131.2%
Santa Cruz            $2,716            $3,658              $3,195              $3,582        12.1%      31.9%
Scotts Valley         $101              $520                $544                $613          12.6%      505.8%
Watsonville           $281              $626                $617                $600          -2.7%      113.2%
Unincorporated        $3,118            $3,887              $3,627              $3,983        9.8%       27.7%
Santa Cruz            $6,503            $9,297              $9,241              $9,439        10.1%      45.2%
California            $899,720          $1,566,900          $1,363,400          NA            -13.0%     51.5%
Source: Dean Runyan Associates and Local Jurisdictions. State percentage change is for prior year.

See: Santa Cruz County Comprehensive Development Strategy- Annual Update 2011 at
link below

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Appendix I: Commuting Map

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Appendix II: Educational Facilities

Continued on next page…

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Source: PVUSD Facility Master Plan 2008

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Source: 2010 Santa Cruz County CAP

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