Santa Cruz County applies for nearly $13.7 million in federal disaster-recovery grants for storm-resilient infrastructure

Santa Cruz County Board of Supervisors · February 10, 2026

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Summary

The board authorized applications for Community Development Block Grant-Disaster Recovery funds to repair storm damage and fund resilience projects — including Paulson Road reconstruction, culvert replacements, flood-wall improvements, water main upgrades in Davenport and upgrades to multiple community resiliency centers — and voted 5-0 to proceed.

The Santa Cruz County Board of Supervisors on Feb. 10 authorized staff to apply for Community Development Block Grant-Disaster Recovery (CDBG-DR) funds tied to the January and March 2023 storm disasters, seeking roughly $13.7 million to support infrastructure repair, mitigation and resilience projects.

County planners and general services staff presented a package of projects selected for eligibility under the state27s HCD action plan for DR4699 (March 2023 storms) and DR4683 (January 2023 storms). The package includes: a comprehensive Paulson Road reconstruction (raise approaches, improve drainage and fish passage); Leona Creek culvert restoration under Capitola Road; a countywide culvert-replacement program; Davenport drinking-water main upsizing and meters to enable fire protection and drought resiliency; upgrades to community resilience centers (Watsonville and Santa Cruz veterans halls, South County Government Center warehouse for commodity distribution, the County Fairgrounds water system and kitchen); and a plan to repurpose Juvenile Hall during emergencies after roofing improvements.

Staff emphasized program constraints tied to federal CDBG-DR rules (funds must address disaster-related infrastructure needs or urgent community needs, and overhead/administrative costs are capped), and explained they will return to the board with final award details and a plan to cover limited overhead costs prior to signing any state master agreement. Public-works staff and regional partners (Pajaro Regional Flood Management Agency) discussed flood-protection betterments for Reach 5 of the Pajaro River levee and how increased height on the proposed flood wall could remove roughly 100 homes from FEMA special flood hazard zones.

Public comment included support from residents and local stakeholders who pointed to frequent storm-related road closures, threats to school access, and the value of geographically distributed resiliency centers. Several board members, particularly Supervisor Hernandez whose district includes the Pajaro Valley, highlighted Paulson Road27s significance as an emergency route and supported allocating funding to high-priority local projects.

Outcome: The board voted 5-0 to adopt resolutions authorizing applications for $6.964 million (DR4699 infrastructure total shown in presentation) and $2,299,303 (DR4683 mitigation/resilience) and to certify urgent-need objectives for qualifying projects; staff will finalize project lists and return to the board before signing any grant agreements.

Quote: "This funding represents a major opportunity, nearly $13.7 million, to invest in infrastructure that is critical to public safety, emergency access, and flood protection," Supervisor Hernandez said.

Ending: Staff will refine budgets and funding for limited overhead before returning with a final awarded-project list and agreements; if awarded, projects will shift from planning to design and procurement with multi-year performance windows under HCD.