This week, Scotts Valley City Council was set to give direction on more than $9 million in capital spending for fiscal year 2026-27, which was supported by the Planning Commission on May 14.
The total amount of $9,426,650 includes $8,536,150 in “major capital projects” (related to larger infrastructure items) and $890,500 in “capital outlay projects” (for equipment, vehicle replacements, deferred maintenance and smaller facilities).
The Capital Improvement Plan also sets a course for where to direct money, through 2031.
“The proposed CIP focuses on maintaining and improving core public infrastructure, advancing projects that support Council priorities and identifying future funding needs,” Public Works Director Rodolfo Onchi wrote in a May 20 report to Council. “Staff will continue to evaluate grant opportunities, restricted funding sources, development impact fees and other available funding to advance projects as resources become available.”
Highlights include:
- Wastewater system improvements, including treatment plant reliability, collection system upgrades, lift station improvements and the Wastewater Master Plan.
- Transportation improvements: annual street resurfacing, Scotts Valley Drive and Mount Hermon Road corridor improvements, Granite Creek Overpass work, pedestrian safety lighting and traffic signal upgrades.
- Storm drain improvements, including culvert and drainage repairs, trash capture improvements and stormwater master planning.
- Parks and facility improvements, including the Shugart Park buildout, public works facility planning, Siltanen Park improvements and public safety radio equipment upgrades.
Project funding will be appropriated through the FY 2026-27 budget adoption process or through separate Council actions.
However, several projects remain partially or fully unfunded down the line in future years.
One of the biggest lifts will be shifting the wastewater facility from a well-worn tertiary treatment system to a Membrane Bioreactor (MBR) plant. MBR uses microfiltration (or so-called “ultrafiltration”) and integrates a biological process—such as a “suspended growth” bioreactor.
Back in May 2024, the Council directed staff to move away from the tertiary treatment system and develop an Alternatives Analysis and Conceptual Design featuring a MBR package plant.
In 2026, staff has proposed the City spend $561,000 on the project, followed by $1.56 million in 2027-28. That brings the planned total for wastewater projects to $1.83 million in 2026-27 and $4.79 million in 2027-28, then $2 million in 2028-29.
For transportation, staff pitched $3.96 million this year, followed by $5.14 million next year, then $2.3 million in 2028-29, followed by $250,000 in 2029-30 and $666,667 in 2030-31.
The first projects on the list are Mount Hermon Road renovations, Scotts Valley Drive improvements and the Granite Creek Overpass work.
Traffic signal upgrades are marked down for half-a-million dollars.
The Lockhart Gulch Pavement Rehab Project is not on the agenda until 2028-29, but it’s currently unfunded. The Glen Canyon Carbonera Creek Overcrossing work is also unfunded, but is at $1.79 million for next year.
There’s $737,000 in the CIP for storm drains for 2026-27. The Shugart Park Buildout is down for $1.2 million, with money coming from a Parks budget.
And there’s $817,000 to go toward facilities this year, including $137,000 for the Siltanen Restroom upgrade and $682,000 for the “Public Safety Answering Point Radio Equipment Upgrade.”
The Planning Commission asserted the CIP “supports key City priorities including infrastructure maintenance and improvement, multimodal transportation enhancements, stormwater management and water quality protection, park and facility improvements and continued investment in public safety and emergency preparedness.”
Council was set to discuss the matter on Wednesday, after the Banner’s press deadline.
