Agenda packet — Capitola City Council, January 13, 2022

City of Capitola Regular City Council
Meeting Agenda
Thursday, January 13, 2022 – 7:00 PM
City Council Chambers
420 Capitola Avenue, Capitola, CA 95010
Mayor: Sam Storey
Vice Mayor: Margaux Keiser
Council Members: Jacques Bertrand, Yvette Brooks, Kristen Petersen Closed Session – 6 PM
Closed Sessions are not open to the public and held only on specific topics allowed by State Law (noticed below). An announcement regarding the items to be discussed in Closed Session will be made in the City Hall Council Chambers prior to the Closed Session. Members of the public may, at this time, address the City Council on closed session items only. There will be a report of any final decisions in City Council Chambers during the Open Session Meeting.

LIABILITY CLAIM (Gov’t Code § 54956.95)
Claimant: Gina Cavuoto
Agency claimed against: City of Capitola
CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to § 54956.9(d)(2) One potential case
_____________________________________________________
Regular Meeting of the Capitola City Council – 7 PM
All correspondences received prior to 5:00 p.m. on the Wednesday preceding a Council Meeting will be distributed to Councilmembers to review prior to the meeting. Information submitted after 5 p.m. on that Wednesday may not have time to reach Councilmembers, nor be read by them prior to consideration of an item.

1. Roll Call and Pledge of Allegiance
Council Members Jacques Bertrand, Yvette Brooks, Margaux Keiser, Kristen Petersen and Mayor Sam Storey.

2. Presentations
Presentations are limited to eight minutes.

A. Introduction of new Capitola Police Officers Abraham Camacho, Jaime Ponciano, Noah Sherin, and Daniel Vasquez
B. Presentation of the 2021 Officer of the Year – Herb Ross Award to Officer Jackie Yeung

3. Report on Closed Session

4. Additional Materials
1 Regular City Council Meeting Agenda – January 13, 2022 City of Capitola Page 2
Additional information submitted to the City after distribution of the agenda packet.

5. Additions and Deletions to the Agenda

6. Oral Communications by Members of the Public
Please review the Notice of Remote Access for instructions. Oral Communications allows time for members of the Public to address the City Council on any “Consent Item” on tonight’s agenda, or on any topic within the jurisdiction of the City that is not on the “General Government/Public Hearings” section of the Agenda. Members of the public may speak for up to three minutes, unless otherwise specified by the Mayor. Individuals may not speak more than once during Oral Communications. All speakers must address the entire legislative body and will not be permitted to engage in dialogue. A maximum of 30 minutes is set aside for Oral Communications.

7. Staff / City Council Comments
Comments are limited to three minutes.

8. Consent Items
All items listed as “Consent Items” will be enacted by one motion in the form listed below.

There will be no separate discussion on these items prior to the time the Council votes on the action unless members of the City Council request specific items to be discussed for separate review. Items pulled for separate discussion will be considered following General Government. Note that all Ordinances which appear on the public agenda shall be determined to have been read by title and further reading waived.

A. Consider the December 1 and December 9 City Council Meeting Minutes Recommended Action: Approve the minutes.

B. Approval of City Check Registers Dated November 19, November 24, December 10, December 17 and December 30.

Recommended Action: Approve check registers.

C. FY 2020-21 Audit Report
Recommended Action: Receive report.

D. Revised Information Technology Specialist Job Description Recommended Action:1) Authorize the City Manager to Sign Side Letter with Confidential Employees Group; and 2) Approve Amended Information Systems Specialist Job Description
E. Liability Claim of Gina Cavuoto
Recommended Action: Reject liability claim.

F. Receive Update on Pandemic Response and Consider Adopting Proposed Resolution Allowing for the Continuation of Teleconferencing
Recommended Action: 1) Make the determination that all hazards related to the worldwide spread of coronavirus (COVID-19) as detailed in Resolution No 4168 adopted by the City Council on March 12, 2020, still exist and there is a need to continue action; and 2) adopt the proposed resolution authorizing the Capitola City Council (along with the Planning Commission and all advisory bodies) to continue to conduct teleconferencing meetings.

9. General Government / Public Hearings
2 Regular City Council Meeting Agenda – January 13, 2022 City of Capitola Page 3
All items listed in “General Government / Public Hearings” are intended to provide an opportunity for public discussion of each item listed. The following procedure pertains to each General Government item: 1) Staff explanation; 2) Council questions; 3) Public comment; 4) Council deliberation; 5) Decision.

A. Capitola Branch Library Project Notice of Completion Recommended Action: Approve the Notice of Completion for the Capitola Branch Library Project constructed by Otto Construction at a final cost of $13,190,813 and direct the Public Works Department to 1) record the Notice of Completion and 2) release the retention held in escrow of $369,724.39.

B. Presentation Regarding Proposed City of Santa Cruz Onstreet Parking Programs Recommended Action: Receive a report regarding how the City of Santa Cruz is addressing oversized vehicles and an update on City of Capitola practices.

C. Authorize Purchase of a New Street Sweeper for the Department of Public Works Recommended Action: Authorize the expenditure of up to $350,000 for the purchase of a new Global Regenerative Air streetsweeper for the Public Works Department.

D. Amend FY 2021-22 City Fee Schedule
Recommended Action: Adopt the proposed resolution amending the fee schedule for Fiscal Year (FY) 2021-22.

E. Appoint Representative to the Housing for Health Partnership Policy Board Recommended Action: Appoint the City Manager to a two-year term on the Continuum of Care (CoC) Board, known as the Housing for Health Partnership Policy Board, as nominated by the Mayor.

10. Adjournment
_____________________________________________________
Notice of Remote Access
In accordance California Senate Bill 361, the City Council meeting is not physically open to the public and in person attendance cannot be accommodated.

To watch:
- Online http://cityofcapitola.org/meetings
- Spectrum Cable Television channel 8
Join Zoom by Computer or Phone:
- Click this meeting link:
https://us02web.zoom.us/j/81492483812?pwd=bnJJN25aYkRhRHlUajAzM3o1cnpDQT09 - Or call one of these phone numbers:
- 1 (669) 900 6833
- 1 (408) 638 0968
- 1 (346) 248 7799
- Meeting ID: 814 9248 3812
- Meeting Passcode: 426714
3 Regular City Council Meeting Agenda – January 13, 2022 City of Capitola Page 4
Public Comment: One comment (via phone or email, not both), per person, per item is allowed.

If you send more than one email about the same item, the last received will be read. - Zoom Meeting (Via Computer or Phone):

If using computer: Use participant option to “raise hand” during the public comment period for the item you wish to speak on. Once unmuted, you will have up to 3 minutes to speak If called in over the phone: Press *9 on your phone to “raise your hand” when the mayor calls for public comment. Once unmuted, you will have up to 3 minutes to speak - Send Email: During the meeting, send comments via email to [email protected] - Emailed comments on items will be accepted after the start of the meeting until the Mayor announces that public comment for that item is closed.
- Emailed comments should be a maximum of 450 words, which corresponds to approximately 3 minutes of speaking time.
- Each emailed comment will be read aloud for up to three minutes and/or displayed on a screen. - Emails received by [email protected] outside of the comment period outlined above will not be included in the record.

Note: Any person seeking to challenge a City Council decision made as a result of a proceeding in which, by law, a hearing is required to be given, evidence is required to be taken, and the discretion in the determination of facts is vested in the City Council, shall be required to commence that court action within ninety (90) days following the date on which the decision becomes final as provided in Code of Civil Procedure §1094.6. Please refer to code of Civil Procedure §1094.6 to determine how to calculate when a decision becomes “final.” Please be advised that in most instances the decision become “final” upon the City Council’s announcement of its decision at the completion of the public hearing. Failure to comply with this 90-day rule will preclude any person from challenging the City Council decision in court.

Notice regarding City Council: The City Council meets on the 2nd and 4th Thursday of each month at 7:00 p.m. (or in no event earlier than 6:00 p.m.), in the City Hall Council Chambers located at 420 Capitola Avenue, Capitola.

Agenda and Agenda Packet Materials: The City Council Agenda and the complete Agenda Packet are available for review on the City’s website: www.cityofcapitola.org and at Capitola City Hall prior to the meeting. Agendas are also available at the Capitola Post Office located at 826 Bay Avenue Capitola. Need more information? Contact the City Clerk’s office at 831-475-7300.

Agenda Materials Distributed after Distribution of the Agenda Packet: Pursuant to Government Code §54957.5, materials related to an agenda item submitted after distribution of the agenda packet are available for public inspection at the Reception Office at City Hall, 420 Capitola Avenue, Capitola, California, during normal business hours.

Americans with Disabilities Act: Disability-related aids or services are available to enable persons with a disability to participate in this meeting consistent with the Federal Americans with Disabilities Act of 1990.

Assisted listening devices are available for individuals with hearing impairments at the meeting in the City Council Chambers. Should you require special accommodations to participate in the meeting due to a disability, please contact the City Clerk’s office at least 24 hours in advance of the meeting at 831-475- 7300. In an effort to accommodate individuals with environmental sensitivities, attendees are requested to refrain from wearing perfumes and other scented products.

Televised Meetings: City Council meetings are cablecast “Live” on Charter Communications Cable TV Channel 8 and are recorded to be rebroadcasted at 8:00 a.m. on the Wednesday following the meetings and at 1:00 p.m. on Saturday following the first rebroadcast on Community Television of Santa Cruz County (Charter Channel 71 and Comcast Channel 25). Meetings are streamed “Live” on the City’s website at www.cityofcapitola.org by clicking on the Home Page link “Meeting Agendas/Videos.” Archived meetings can be viewed from the website at any time.
4 Capitola City Council
Agenda Report
Meeting: January 13, 2022
From: Police Department
Subject: Presentation of the 2021 Officer of the Year – Herb Ross Award to Officer Jackie Yeung
Background: The Herb Ross Officer of the Year Award is presented to a Capitola Police Officer each year. This honor is named after past Capitola Police Sergeant Herb Ross, a man who stood for integrity, professionalism, and hard work. Sergeant Ross worked for the Capitola Police Department from 1973 until 2001 and during this time was a mentor to so many. He was responsible for developing several community outreach programs, such as the first Drug Abuse Resistance Education Program, the Juvenile Diversion Program, Cops Reading to Kids, and the Safe Ride Home Program. Sergeant Ross received a Capitola Mayor's proclamation for his service in 1996 and the following year was named Citizen of the Year by the Capitola Chamber of Commerce. The Herb Ross Award is a way to honor Sergeant Ross and Capitola Police Officers who go above and beyond to serve our City and greater community.

Discussion: Officer Jackie Yeung has been selected as our department’s 2021 “Officer of the Year”. Officer Yeung grew up in Santa Cruz County and attended Harbor High School. While attending high school, Officer Yeung volunteered his time at Capitola PD as a police explorer.

After serving as a police explorer, Officer Yeung took an opportunity with Sacramento Police to attend their police academy and serve as an officer. After finishing the police academy, Officer Yeung worked for Sacramento Police for about a year, when he then made the wise decision to return to the Santa Cruz region and was hired by the City of Capitola in 2015.

In 2021, Officer Yeung obtained his second stolen vehicle award. To receive this award, an officer must locate 12 stolen vehicles (3 of the recoveries must be of vehicles still occupied by a suspect) in a 12-month period. Officer Yeung completed this task two years in a row and has also received the California Highway Patrol 1085 Award. Officer Yeung continues to be a high performer and has been selected to be the next CIU Detective. Besides his patrol duties, officer Yeung is a Field Training Officer and Firearm Instructor. Officer Yeung has helped develop our firearms training and continues to train our officers in tactics.

In addition to his work commitments, Officer Yeung continues to support the Special Olympics by participating in Police in Pursuit; a funding raising event to benefit Special Olympics Northern California. Throughout his years of service, Officer Yeung has demonstrated the highest level of professionalism and dedication to Capitola residents, our community, and his fellow employees.

The selection process for this award was peer nomination followed by the unanimous vote from the supervisory and command staff of the Police Department. Please join the City in introducing Officer Jackie Yeung as the 2021 recipient of the prestigious Herb Ross Award - Officer of the Year.

Report Prepared By: Andrew Dally, Chief of Police
Reviewed By: Chloé Woodmansee, City Clerk
Approved By: Jamie Goldstein, City Manager
5 Item 2 B.

Capitola City Council
Agenda Report
Meeting: January 13, 2022
From: City Manager Department
Subject: Consider the December 1 and December 9 City Council Meeting Minutes
Recommended Action: Approve the minutes.

Background/Discussion: Attached for Council review and approval are draft minutes from the special City Council meeting held on December 1 and the regular City Council meeting held on December 9, 2021.

Attachments:

1. Attachment 1: Draft minutes 12/1/2021

2. Attachment 2: Draft minutes 12/9/2021
Report Prepared By: Chloé Woodmansee, City Clerk
Reviewed By: Chloé Woodmansee, City Clerk
Approved By: Jamie Goldstein, City Manager
6 Item 8 A.

CAPITOLA CITY COUNCIL

DRAFT SPECIAL MEETING MINUTES
WEDNESDAY, DECEMBER 1, 2021 - 6 PM

1. ROLL CALL AND PLEDGE OF ALLEGIANCE
Council Member Jacques Bertrand: Remote, Council Member Kristen Petersen: Remote, Vice Mayor Sam Storey: Remote, Mayor Yvette Brooks: Remote, Council Member Margaux Keiser: Remote.

2. ADDITIONAL MATERIALS
A. Item 5.A – 4 public comment emails

3. ADDITIONS AND DELETIONS TO THE AGENDA – NONE

4. STAFF / CITY COUNCIL COMMENTS
Council Member Bertrand shared a story about a coworker visiting Capitola.

City Manager Goldstein apologized about the technical issues experienced at the previous City Council meeting and announced that the meeting is live-streaming on YouTube.

5. GENERAL GOVERNMENT / PUBLIC HEARINGS
A. Outdoor Dining Ordinance
RECOMMENDED ACTION:

1. Consider Planning Commission recommendations regarding the draft outdoor dining ordinance and either:
a. Provide direction on the draft ordinance and consider a schedule for a first reading and adoption, or
b. Introduce by title only, waiving further reading of the text, an ordinance of the City Council of the City of Capitola repealing and replacing Municipal Code Sections 17.96.170 and amending Municipal Code Section 17.120.030, related to outdoor dining in the public right of way; or

2. Consider options to extend, terminate, or modify the temporary outdoor dining program, currently scheduled to end on January 3, 2022.

Council Member Keiser recused herself due to financial conflict. Community Development Directory Herlihy presented a staff report.

Director Herlihy explained the lottery system in response to a question from Council Member Petersen. Council Member Petersen asked how long the prototype design process is expected to take and Director Herlihy predicted about a month after the design process begins.

Vice-Mayor Storey asked about the prototypes in relation to angled parking and bicycles. Director Herlihy explained that the proposed in-lieu program would alleviate the potential bike-parking issue. She confirmed that restaurants currently participating in the temporary outdoor dining program needed proof of insurance.

Police Chief Dally briefly outlined some City parking permit programs in response to Vice-Mayor Storey’s questions.

City Manager Goldstein highlighted that once adopted, changing this ordinance would be an 7 Item 8 A.

CAPITOLA CITY COUNCIL SPECIAL MEETING MINUTES
December 1, 2021
City of Capitola Page 2 Updated 12/8/2021 2:19 PM
extensive process as this would require approval from the coastal commission. He said that the administrative policy related to outdoor dining program could be changed at any time at the discretion of the Council.

Council Member Bertrand confirmed that the prototype designs will be standardized but with customizable options so that variety in the Village is still possible.

Mayor Brooks checked that when surveyed on their desire to participate in an outdoor dining program, the restaurant owners were aware they’d need to pay for the spaces. She also asked about potential changes in restaurant ownership; Director Herlihy said this would be addressed in the administrative policy.

Council Member Bertrand emphasized that safety should be considered in parklet designs.

In public comment, Randy Zoucha spoke against the outdoor dining ordinance. Linda Smith spoke in favor of the ordinance.

MOTION: PASS FIRST READING OF ORDINANCE INCLUDED IN THE PACKET AS “VERSION 2”: AN ORDINANCE REPEALING AND REPLACING
CAPITOLA MUNICIPAL CODE SECTIONS 17.96.170 AND AMENDING MUNICIPAL CODE SECTION 17.120.030, RELATED TO OUTDOOR

DINING IN THE PUBLIC RIGHT OF WAY
RESULT: AMENDED AS BELOW
MOVER: Kristen Petersen
SECONDER: Jacques Bertrand
Vice Mayor Storey suggested an amendment to the motion:

DINING IN THE PUBLIC RIGHT OF WAY
AMENDMENT: INCLUDE CAPITOLA AVENUE AS A LOCATION THAT ALLOWS SIDEWALK DINING [STOREY]
RESULT: PASSED [4 TO 0]
MOVER: Kristen Petersen
SECONDER: Jacques Bertrand
AYES: Jacques Bertrand, Kristen Petersen, Sam Storey, Yvette Brooks RECUSED: Margaux Keiser
Council discussed the current COVID-19 temporary outdoor dining permits, which expire on January 3, 2022.

In public comment, Linda Smith recommended extending the temporary program past Memorial Day. Eric Fawcett emailed against extending the temporary program.

Council Member Petersen confirmed that applicants who successfully receive parklet spots through the lottery (under the permanent outdoor dining program) begin paying rent to the City immediately, not upon completion of their parklet construction. 8 Item 8 A.

CAPITOLA CITY COUNCIL SPECIAL MEETING MINUTES
December 1, 2021
City of Capitola Page 3 Updated 12/8/2021 2:19 PM
MOTION: CONTINUE THE ALLOWANCE OF COVID-19 TEMPORARY OUTDOOR DINING PERMITS THROUGH MAY 31, 2022
RESULT: APPROVED [4 TO 0]
MOVER: Sam Storey
SECONDER: Kristen Petersen
AYES: Jacques Bertrand, Kristen Petersen, Sam Storey, Yvette Brooks RECUSED: Margaux Keiser
B. Mandatory Organics Waste Disposal Reduction Ordinance RECOMMENDED ACTION: Introduce for first reading, by title only, waiving further reading of the text, an ordinance repealing Capitola Municipal Code Chapter 8.04:

Garbage and enacting Chapter 8.04: Solid Waste and Edible Food Recovery.

Assistant to the City Manager Laurent presented a staff report.

Council Member Bertrand asked if waste processing will be different; Assistant Laurent responded that Monterey Regional will handle any changes and continue to process the City’s waste. Assistant Laurent clarified that ordinance language maintains that burying garbage is not allowed.

There was no public comment.

RESULT: PASS THE FIRST READING OF AN ORDINANCE REPEALING MUNICIPAL CODE SECTION 8.04: GARBAGE AND ENACTING
CHAPTER 8.04: SOLID WASTE AND EDIBLE FOOD RECOVERY
[UNANIMOUS]
MOVER: Jacques Bertrand
SECONDER: Sam Storey
AYES: Bertrand, Petersen, Storey, Brooks, Keiser
C. New State of California Housing Legislation and Community Development Department Housing Workplan
RECOMMENDED ACTION: Accept staff presentation on recent housing legislation and the Community Development Department’s workplan.

Community Development Director Herlihy presented a staff report.

In response to a question from Council Member Bertrand, Director Herlihy explained that an updated housing element must be submitted by 2023.

There was no public comment.

Council Member Petersen emphasized the significance of this new State legislation and Council Member Bertrand confirmed that protections exist against down-zoning.

RESULT: RECEIVE REPORT

6. ADJOURNMENT
The meeting was closed at 8PM to the next regular City Council meeting on December 9, 2021. 9 Item 8 A.

CAPITOLA CITY COUNCIL SPECIAL MEETING MINUTES
December 1, 2021
City of Capitola Page 4 Updated 12/8/2021 2:19 PM
_____________________
Yvette Brooks, Mayor
ATTEST:
__________________________
Chloé Woodmansee, City Clerk
10 Item 8 A.

CAPITOLA CITY COUNCIL

DRAFT REGULAR MEETING MINUTES
THURSDAY, DECEMBER 9, 2021 - 6 PM
CLOSED SESSION – 5 PM
CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to § 54956.9(d)(2) (one potential case)
REGULAR MEETING OF THE CAPITOLA CITY COUNCIL - 6 PM

2. REPORT ON CLOSED SESSION
City Attorney Zutler announced that no action was taken.

3. ADDITIONAL MATERIALS
A. Item 8.B – one staff memo and report

4. ADDITIONS AND DELETIONS TO AGENDA – NONE

5. ORAL COMMUNICATIONS
Tom Brady announced that RPM Training selected Capitola Junior Guards as a beneficiary of their annual fundraising campaign.

6. STAFF / CITY COUNCIL COMMENTS
Community Development Director Herlihy updated Council on the economic development grants designed for local business rent relief and said that due to less businesses qualifying than originally projected, Staff intends to double the funding amount for those that do qualify.

Council Member Petersen reminded Staff and Council about the upcoming RHNA housing allocations.

7. CONSENT ITEMS
RESULT: APPROVED, ADOPTED, PASSED, AND DETERMINED AS RECOMMNDED [UNANIMOUS]
MOVER: Jacques Bertrand
SECONDER: Sam Storey
AYES: Bertrand, Petersen, Storey, Brooks, Keiser
A. Consider the Minutes from the November 23 Regular City Council Meeting RECOMMENDED ACTION: Approve the minutes.
11 Item 8 A.

CAPITOLA CITY COUNCIL REGULAR MEETING MINUTES
December 9, 2021
City of Capitola Page 2 Updated 12/10/2021 10:39 AM
B. Adopt a Resolution Setting the Interest Rate for Tenants' Security Deposits for 2022 at Zero Percent (0.00%)
RECOMMENDED ACTION: Adopt proposed resolution.

C. Update Hourly and Seasonal Salary Schedule
RECOMMENDED ACTION: Adopt the proposed resolution amending the hourly and seasonal Pay Schedule.

D. Mandatory Organics Waste Disposal Reduction Ordinance RECOMMENDED ACTION: Pass ordinance repealing Capitola Municipal Code Chapter 8.04: Garbage and enacting Chapter 8.04: Solid Waste and Edible Food Recovery.

E. Consider an Outdoor Dining Ordinance, a Resolution for Coastal Commission Certification, and Update Administrative Policy I-36
RECOMMENDED ACTION:

1. Pass an ordinance of the City of Capitola repealing and replacing Municipal Code Sections 17.96.170 and amending Municipal Code Section 17.120.030, related to outdoor dining in the public right of way.

2. Adopt the proposed resolution authorizing staff to submit the Zoning Code Update/Local Coastal Plan Update to the Coastal Commission for Certification.

3. Approve the updated Administrative Policy I-36 for the Village Outdoor Dining Program.

F. Receive Update on Pandemic Response and Consider Adopting Proposed Resolution Allowing for the Continuation of Teleconferencing RECOMMENDED ACTION: 1) Make the determination that all hazards related to the worldwide spread of the coronavirus (COVID-19) as detailed in Resolution No. 4168 adopted by the City Council on March 12, 2020, still exist and that there is a need to continue action; and 2) Adopt the proposed resolution authorizing the Capitola City Council (along with the Planning Commission and all advisory bodies) to continue to conduct teleconferencing meetings.

8. GENERAL GOVERNMENT / PUBLIC HEARINGS
A. Council Reorganization for 2022
RECOMMENDED ACTION: Select and vote to approve a new Mayor and ViceMayor.

In public comment, Larry and Sedona Brooks congratulated Mayor Brooks on her year as Mayor and wished her a happy Birthday.

Mayor Brooks thanked the City Manager and staff for their resilience and hard work, thanked her family, and thanked the rest of Council for all they do for the community. Lastly she thanked community members.
12 Item 8 A.

CAPITOLA CITY COUNCIL REGULAR MEETING MINUTES
December 9, 2021
City of Capitola Page 3 Updated 12/10/2021 10:39 AM
MOTION: NOMINTATE SAM STOREY AS CITY COUNCIL’S 2022 MAYOR RESULT: ADOPTED [UNANIMOUS]
MOVER: Kristen Petersen
SECONDER: Jacques Bertrand
AYES: Bertrand, Petersen, Storey, Brooks, Keiser
Council thanked Mayor Brooks for her leadership and work during 2021.

MOTION: NOMINATE MARGAUX KEISER AS CITY COUNCIL’S 2022 VICE-MAYOR RESULT: ADOPTED [UNANIMOUS]
MOVER: Kristen Petersen
SECONDER: Jacques Bertrand
AYES: Bertrand, Petersen, Storey, Brooks, Keiser
B. Receive a Report on Bids Received for the 2021 Road Repair Project and Consider Awarding a Contract
RECOMMENDED ACTION: Receive a report on construction bids received on Wednesday December 8, 2021, for the 2021 Road Repair Project and consider award of contract.

Public Works Director Jesberg thanked Mayor Brooks for her support of past Public Works projects and presented a staff report on upcoming road repair.

Council Member Bertrand asked about future work at the intersection of Capitola Road and Bay Avenue, in hopes that the area could be under construction a single time. Director Jesberg said that any round-about work is several years away.

There was no public comment.

RESULT: RECEIVE REPORT

9. ADJOURNMENT
The meeting was closed at 6:45PM to the next regular City Council meeting on January 13, 2022. _____________________
Yvette Brooks, Mayor
ATTEST:
______________________
Chloé Woodmansee, City Clerk
13 Item 8 A.

Capitola City Council
Agenda Report
Meeting: January 13, 2022
From: Finance Department
Subject: Approval of City Check Registers Dated November 19, November 24, December 10, December 17 and December 30.

Recommended Action: Approve check registers.

Account: City Main
Date Starting Check # Ending Check # Payment
Count Amount
11/19/2021 99311 99353 44 $ 109,934.40
11/24/2021 99355 99379 32 $ 255,132.35
12/10/2021 99380 99512 138 $ 530,251.88
12/17/2021 99513 99567 56 $ 76,844.86
12/30/2021 99568 99625 64 $ 402,952.67
The main account check register dated November 12, 2021, ended with check #99310. Check #99354 was re-issued for original check #98398.

Account: Library
Date Starting Check # Ending Check # Payment
Count Amount
12/10/2021 295 295 1 $ 240.00
12/17/2021 296 296 1 $ 960.00
The library account check register dated November 5, 2021, ended with check #294.

Account: Payroll
Date Starting
Check/EFT #
Ending
Check/EFT #
Payment
Count Amount
11/19/2021 5754/18236 5754/18320 86 $ 162,256.22
12/10/2021 18321 18404 84 $ 159,929.11
12/17/2021 18405 18495 91 $ 235,921.10
12/30/2021 5755 5755 1 $ 530.94
The payroll account check register dated November 12, 2021, ended with check #5753.

Following is a list of payments issued for more than $10,000 and descriptions of the expenditures:

Check/
EFT Issued to Dept Description Amount
99321 Community Bridges CD CDBG CV1 meals on
wheels/life line grant $ 21,200.01
99337 PG&E PW November gas & electricity $ 16,824.76
14 Item 8 B.
1238 IRS FN Federal tax & Medicare final
paychecks $ 10,891.22
99359 Burke Williams and
Sorensen LLP CM Legal services $ 42,950.07
99360 Capitola-Soquel Chamber
of Commerce FN Quarterly TOT transfer $ 13,030.47
99363 Folsom Lake Ford PD 2021 Ford Explorers (2) $ 77,894.06 1240 CalPERS Member
Services FN PERS contributions PPE 11/13/21 $ 54,481.24 1242 IRS FN Federal taxes & Medicare PPE
11/13/21 $ 27,875.00
99395 Boys & Girls Clubs of
Santa Cruz County CM Community grants $ 10,000.00
99396 Burke Williams and
Sorensen LLP CM Legal services $ 20,208.00
99398 Cabrillo College CM Local govt. fellowship program $ 10,000.00 99400 Cale America Inc. PD Pay station keyboard adapter board and modem upgrades $ 10,552.70
99403 CASA CM Community grants $ 10,000.00
99422 Granite Rock Company PW Peery Park bridge repairs $ 49,754.13 99444 NAMI Santa Cruz County CM Community grants $ 10,000.00 99465 Children’s Museum of
Discovery CM Community grants $ 10,000.00
99466 Santa Cruz AuditorController PD November citation processing $ 11,221.50 99474 Second Harvest Food
Bank CD CDBG CV1 grant $ 19,193.74
99476 Seniors Council of Santa
Cruz County CM Community grants $ 10,000.00
99492 United Way CM Community grants $ 10,000.00
99501 Volunteer Centers of Santa
Cruz County CM Community grants $ 10,000.00
1246 CalPERS Member
Services FN PERS contributions PPE 11/27/21 $ 53,797.81 1248 IRS FN Federal taxes & Medicare PPE
11/27/21 $ 27,804.50
1251 CalPERS Health CM December health insurance $ 53,063.17 99532 Kimley Horn & Assoc. PW
Clares St. traffic calming,
Capitola Rd. striping, Park
Ave. traffic calming, traffic
signal adaptive control
engineering
$ 20,089.23
99568 PG&E PW December gas & electricity $ 14,221.25
99576 Burke Williams and
Sorensen LLP CM Legal services $ 24,512.50
99610 Santa Cruz Regional 911 PD Operating contribution & SCRMS $ 125,222.25
15 Item 8 B.
1254 CalPERS Member
Services FN PERS contributions PPE 12/11/21 $ 54,848.78 1255 Employment Development
Dept. FN State taxes PPE 12/11/21 $ 19,675.03
1256 IRS FN Federal taxes & Medicare PPE
12/11/21 $ 60,949.27
1258 Voya Financial FN Employee 457 contributions
PPE 12/11/21 $ 49,204.46
Attachments:

1. 11-19-21 Check Register

2. 11-24-21 Check Register

3. 12-10-21 Check Register

4. 12-17-21 Check Register

5. 12-30-21 Check Register
Report Prepared By: Mark Sullivan
Reviewed By: Chloé Woodmansee, City Clerk; Jim Malberg, Finance Director Approved By: Jamie Goldstein, City Manager
16 Item 8 B.
17 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
99311 11/19/2021 $438.07
Invoice Date Amount
1FPM-1CP6-1FHT 11/11/2021 $419.55
17M9-QCLX-PJKT 11/11/2021 $18.52
99312 11/19/2021 $817.35
Invoice Date Amount
1480 10/28/2021 $646.80
14221 10/28/2021 $170.55
1310 - Gas tax fund
99313 11/19/2021 $351.00
Invoice Date Amount
BA111521 11/15/2021 $351.00
99314 11/19/2021 $1,575.00
Invoice Date Amount
1375 11/03/2021 $1,575.00
1313 - General Plan
99315 11/19/2021 $51.47
Invoice Date Amount
1635490 11/10/2021 $51.47
99316 11/19/2021 $245.00
Invoice Date Amount
543889 11/03/2021 $245.00
99317 11/19/2021 $6,834.00
Invoice Date Amount
CALOES102621 10/26/2021 $6,834.00
1200 - CIP
99318 11/19/2021 $3,799.00
Invoice Date Amount
CBF-10-2021 11/03/2021 $3,799.00
5552 - Housing Successor
99319 11/19/2021 $219.00
Invoice Date Amount
CT110221 11/02/2021 $219.00

AMAZON CAPITAL SERVICES
Description

BECKY ADAMS
Description
Instructor payment
Description
October traffic signal maintenance services - routine
October traffic signal maintenance services - response
Work boots
iPhone charger
BEAR ELECTRICAL SOLUTIONS INC.

CA DEPARTMENT OF JUSTICE
Description
Employee fingerprinting

BIG CREEK LUMBER
Description
Skate park lumber

BEN NOBLE URBAN AND REGIONAL PLANNING
Description
Outdoor dining ordinance

CATHERINE THRASHER
Description
Building inspector test reimbursement

CAROLYN FLYNN
Description
October affordable housing program management

CAL OES
Description
Park Ave. storm damage PW#169 de-obligation refund
City of Capitola
City Checks Issued November 19, 2021
Pages: 1 of 6
18 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued November 19, 2021
99320 11/19/2021 $2,781.01
Invoice Date Amount
CAB082721 08/27/2021 $525.33
CAB101821 10/18/2021 $50.74
CAB093021 10/18/2021 $2,204.94
5552 - Housing Successor
99321 11/19/2021 $21,200.01
Invoice Date Amount
CBCV193021 11/08/2021 $21,200.01
1351 - CDBG program income
99322 11/19/2021 $1,675.80
Invoice Date Amount
DSC111521 11/15/2021 $1,675.80
99323 11/19/2021 $240.00
Invoice Date Amount
DOD110421 11/04/2021 $240.00
99324 11/19/2021 $1,352.86
Invoice Date Amount
21-423079 11/11/2021 $1,352.86
99325 11/19/2021 $3,203.83
Invoice Date Amount
GE111521 11/15/2021 $3,203.83
99326 11/19/2021 $341.88
Invoice Date Amount
9645478 11/09/2021 $47.61
2012582 11/16/2021 $58.27
8011782 11/10/2021 $95.39
8610235 11/10/2021 $140.61
99327 11/19/2021 $3.49
Invoice Date Amount
55Y1227125 11/11/2021 $3.49
99328 11/19/2021 $8,465.00
Invoice Date Amount
20056539 10/31/2021 $8,465.00
1200 - CIP
Description
CDBG CV1 meals on wheels/life line grant

DAVID SCOTT COBABE
Sept. mortgage assistance
Sept. emergency housing assistance

COMMUNITY BRIDGES

COMMUNITY ACTION BOARD
Description
July emergency rental assistance
Description
272 gallons gasoline

GINA ENRIQUEZ
Description
New employee medical exams

FLYERS ENERGY LLC
Description
Instructor payment

DOCTORS ON DUTY
Broom, dust pan, bench brush, bucket
Vacuum tool
KBA Document Solutions LLC
Description
Mud pan, bucket, drywall sponge, joint knife & tape
Glue, wall adhesive, adhesive applicator
Description
Instructor payment

HOME DEPOT CREDIT SERVICES
Description
October Clares St. traffic calming
Description
Recreation copier usage charges

KIMLEY HORN AND ASSOCIATES INC
Pages: 2 of 6
19 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued November 19, 2021
99329 11/19/2021 $45.04
Invoice Date Amount
A0317609 11/16/2021 $45.04
99330 11/19/2021 $665.33
Invoice Date Amount
26-161910 11/12/2021 $665.33
99331 11/19/2021 $162.04
Invoice Date Amount
ML111521 11/15/2021 $162.04
99332 11/19/2021 $259.60
Invoice Date Amount
93418 11/08/2021 $259.60
99333 11/19/2021 $203.04
Invoice Date Amount
515875050 11/10/2021 $33.65
515903479 11/15/2021 $75.00
515875051 11/10/2021 $94.39
99334 11/19/2021 $3,387.25
Invoice Date Amount
764809 11/12/2021 $3,387.25
1200 - CIP
99335 11/19/2021 $30.00
Invoice Date Amount
211110 13 11/15/2021 $30.00
99336 11/19/2021 $815.55
Invoice Date Amount
E34929 11/09/2021 $22.86
E37707 11/15/2021 $5.44
E34764 11/09/2021 $18.93
E34634 11/09/2021 $146.52
E37803 11/15/2021 $621.80
Description
Green recycle tray, 2.5 in. excalibur, butyl drop

LABORMAX STAFFING
KING'S PAINT AND PAPER INC.

Description
November record storage

MISSION LINEN SUPPLY
Description
Instructor payment
MILLER'S TRANSFER & STORAGE CO.

Description
Seasonal labor 11/8 - 11/12

MICHAEL G LEW
Wharf permitting, bid & construction support

MONTEREY BAY ANALYTICAL SERVICES INC
Description
Corp. yard uniform cleaning

MOFFATT AND NICHOL
Description
Description
Fleet uniform cleaning, towels
Recreation mats, mops, towels
Bucket, flashlight, crimp wire wheel, gloves, mag tool holder Tools for new employee
Marking spray
Epoxy
Stop rust spray, spray paint
Soquel creek lagoon beach monitoring

OUTDOOR SUPPLY HARDWARE
Description
Pages: 3 of 6
20 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued November 19, 2021
99337 11/19/2021 $16,824.76
Invoice Date Amount
PGE101221-acct0 10/12/2021 ($7.55)
PGE111021-acct0 11/10/2021 $9.65
PGE111321-acct5 11/13/2021 $984.70
PGE111321-acct9 11/13/2021 $13,508.03
PGE111421-acct7 11/14/2021 $2,329.93
1000 - General Fund $7,689.31
1300 - SLESF $110.29
1310 - Gas tax $6,732.65
1311 - Wharf $2,292.51
99338 11/19/2021 $960.00
Invoice Date Amount
2109-091 10/13/2021 $960.00
1308 - SB1 $480.00
1309 - RTC $480.00
99339 11/19/2021 $1,672.44
Invoice Date Amount
PC080189324 11/10/2021 $1,239.42
PC080189355 11/11/2021 $109.15
PC080189377 11/12/2021 $323.87
99340 11/19/2021 $97.09
Invoice Date Amount
55-0685731 11/15/2021 $97.09
99341 11/19/2021 $84.36
Invoice Date Amount
14508-425021 11/09/2021 $84.36
99342 11/19/2021 $377.37
Invoice Date Amount
SCMU103121 10/31/2021 $377.37
99343 11/19/2021 $142.45
Invoice Date Amount
06-14476-0110321 11/03/2021 $142.45
99344 11/19/2021 11/19/2021 $0.00
Voided Amount
$0.00

PACIFIC GAS & ELECTRIC
PAVEMENT ENGINEERING INC.

Description
FY21-22 pavement management system update
Pacific Cove parking lot utilities
November gas & electricity
November library gas & electricity
Description
Wharf Road Rispin Mansion utilities
Wharf Road Rispin Mansion utilities
Description
Rustoleum, spray paint, bucket, tape
SANTA CRUZ AUTO PARTS INC.

Filters
Paint, filters

SAN LORENZO LUMBER

PETERSON CATERPILLAR
Description
Fuel element, filter, breather kit
Description
430 Kennedy Drive water service
SWANK MOTION PICTURES INC.

Description
October water service for medians

SOQUEL CREEK WATER DISTRICT
Description
Oil filters, air filters

SANTA CRUZ MUNICIPAL UTILITIES
Description
Check voided, incorrect amount entered
Pages: 4 of 6
21 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued November 19, 2021
99345 11/19/2021 $1,357.99
Invoice Date Amount
652103870 11/10/2021 $1,357.99
99346 11/19/2021 $2,668.00
Invoice Date Amount
00014 11/01/2021 $2,668.00
1321 - BIA
99347 11/19/2021 $2,022.88
Invoice Date Amount
667067 11/08/2021 $876.81
667075 11/09/2021 $1,146.07
1310 - Gas tax
99348 11/19/2021 $250.00
Invoice Date Amount
12981 11/15/2021 $250.00
1321 - BIA
99349 11/19/2021 $117.88
Invoice Date Amount
4170520 11/10/2021 $117.88
99350 11/19/2021 $8,453.31
Invoice Date Amount
WF110321 11/03/2021 $8,453.31
1000 - General Fund $7,619.86
2211 - IT Fund $833.45
Purchases over $500:

In Savage Training $957.00 Training
Uplift Desk $1,968.54 Ergonomic desk
Indeed $503.52 Recruiting
Long Beach BMW $693.53 Motorcycle emergency lights
Indeed $508.01 Recruiting
99351 11/19/2021 $139.60
Invoice Date Amount
9325808 11/01/2021 $69.80
9325809 11/01/2021 $69.80
99352 11/19/2021 $681.18
Invoice Date Amount
94951 11/05/2021 $681.18
Description
November BIA marketing, website management, media boost TRANSPORTATION ALLIANCE BANK INC.

Description
Janitorial supplies

TODD HANSON

THE HOME DEPOT PRO

WE ALL RIDE SANTA CRUZ
Description
BMW motorcycle oil filter, oil

VISIT SANTA CRUZ COUNTY
Description
BIA web listing
Description
Sweeper pub covers
Sweeper blended filaments, GB set, dirt deflector, nozzle Speed signs
November turnouts rodent control
ZUMAR INDUSTRIES INC.

Description

WESTERN EXTERMINATOR COMPANY
Description
November City Hall rodent control

WELLS FARGO BANK
Description
October credit card charges
Pages: 5 of 6
22 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued November 19, 2021
99353 11/19/2021 $500.00
Invoice Date Amount
21-0304 11/09/2021 $500.00
$95,510.93
1237 11/15/2021 $3,532.25
Invoice Date Amount
0-442-400-672 11/12/2021 $3,532.25
1001 - Payroll
1238 11/15/2021 $10,891.22
Invoice Date Amount
60190562 11/12/2021 $10,891.22
1001 - Payroll
$14,423.47
Main City Totals Count Total
Checks 42 $95,510.93
EFTs 2 $14,423.47
All 44 $109,934.40
Payroll Totals
Checks 1 $389.45
EFTs 85 $161,866.77
All 86 $162,256.22
Grand Totals:

Checks 43 $95,900.38
EFTs 87 $176,290.24
All 130 $272,190.62
EFT Totals:

INTERNAL REVENUE SERVICE
Description
Federal tax & Medicare employee final paychecks

EMPLOYMENT DEVELOPMENT DEPARTMENT
Description
State taxes employee final paychecks
Tree deposit refund
Check Totals:

EFT
Leilani Apperley
Description
Pages: 6 of 6
23 Item 8 B.
24 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
99355 11/24/2021 $713.76
Invoice Date Amount
1C41-NC31-F139 11/23/2021 $713.76
99356 11/24/2021 $184.14
Invoice Date Amount
000017334226 11/13/2021 $184.14
1000 - General Fund $134.30
2211 - IT Fund $49.84
99357 11/24/2021 $1,187.84
Invoice Date Amount
000017334894 11/13/2021 $1,187.84
99358 11/24/2021 $191.77
Invoice Date Amount
914774257 11/22/2021 $191.77
99359 11/24/2021 $42,950.07
Invoice Date Amount
276168 10/29/2021 $23,387.07
276169 10/29/2021 $556.50
276170 10/29/2021 $3,206.50
276171 10/29/2021 $7,598.00
276172 10/29/2021 $116.00
273519 08/31/2021 $8,086.00
99360 11/24/2021 $13,030.47
Invoice Date Amount
CSCC103121 11/22/2021 $13,030.47
1305 - Restricted TOT
99361 11/24/2021 $351.00
Invoice Date Amount
CF112321 11/23/2021 $351.00
99362 11/24/2021 $2,293.95
Invoice Date Amount
1253745 10/11/2021 $2,293.95
1001 - Payroll

AMAZON CAPITAL SERVICES
Description
November T-1 access

BSN SPORTS LLC
Description
November telephone service
AT&T/CALNET 3
Description
Sign frames
AT&T/CALNET 3
Description
Sept. legal services
Housing updates
July city attorney services
Sept. legal services
Code enforcement
Planning legal services
Field marking paint

BURKE WILLIAMS AND SORENSEN LLP
Description

EQUITABLE
Description
November life, STD, LTD, AD&D insurance

CLAUDIO FRANCA
Description
Instructor payment

CAPITOLA-SOQUEL CHAMBER OF COMMERCE
Description
July - Oct. TOT transfer
City of Capitola
City Checks Issued November 24, 2021
Pages: 1 of 4
25 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued November 24, 2021
99363 11/24/2021 $77,894.06
Invoice Date Amount
FL1356 11/10/2021 $38,947.03
FL1326 11/10/2021 $38,947.03
2212 - Equipment Replacement
99364 11/24/2021 $537.73
Invoice Date Amount
019771644 11/15/2021 $537.73
99365 11/24/2021 $549.57
Invoice Date Amount
JS111821 11/18/2021 $549.57
99366 11/24/2021 $156.86
Invoice Date Amount
55Y1228693 11/17/2021 $156.86
2211 - IT Fund
99367 11/24/2021 $1,786.20
Invoice Date Amount
LA112321 11/23/2021 $1,786.20
99368 11/24/2021 $1,030.40
Invoice Date Amount
FD4935 11/19/2021 $1,030.40
1001 - Payroll
99369 11/24/2021 $1,843.30
Invoice Date Amount
NAOA112321 11/23/2021 $1,843.30
99370 11/24/2021 $5,113.70
Invoice Date Amount
EIA42440 11/01/2021 $5,113.70
1000 - General Fund $184.20
1001 - Payroll $4,929.50
99371 11/24/2021 $186.37
Invoice Date Amount
SN110521 11/05/2021 $186.37
Ballistic helmet

JENNY SHELTON
Description
2021 Ford Explorer VIN GC23226

GALLS LLC
Description

FOLSOM LAKE FORD
Description
2021 Ford Explorer VIN GC23196
Instructor payment

LIUNA PENSION FUND
Description
City Hall copier usage charges

LAURA ALIOTO
Description
Plein Air supplies reimbursement
KBA Document Solutions LLC
Description
November dental & vision insurance

SCOTT NEWTON
Description
Instructor payment
PREFERRED BENEFIT INSURANCE ADMIN.

Description
November LIUNA dues

NATIONAL ACADEMY OF ATHLETICS
Description
Field officer training school reimbursement
Pages: 2 of 4
26 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued November 24, 2021
99372 11/24/2021 $480.00
Invoice Date Amount
RG 3108205 11/08/2021 $480.00
99373 11/24/2021 $20.00
Invoice Date Amount
UW113021 11/19/2021 $20.00
1001 - Payroll
99374 11/24/2021 $847.50
Invoice Date Amount
UPEC113021 11/10/2021 $847.50
1001 - Payroll
99375 11/24/2021 $1,500.00
Invoice Date Amount
BT111921 11/19/2021 $1,500.00
1315 - Public Art
99376 11/24/2021 $250.00
Invoice Date Amount
CH111921 11/19/2021 $250.00
99377 11/24/2021 $250.00
Invoice Date Amount
DW111921 11/19/2021 $250.00
99378 11/24/2021 $509.00
Invoice Date Amount
2005443.002 11/22/2021 $509.00
99379 11/24/2021 $800.00
Invoice Date Amount
SM111921 11/19/2021 $800.00
1315 - Public Art
$154,657.69
1239 11/24/2021 $135.00
Invoice Date Amount
0001422535-IN 10/31/2021 $135.00
Employee United Way contributions
UPEC LIUNA LOCAL 792
Description
Movie license

UNITED WAY OF SANTA CRUZ COUNTY
Description
SWANK MOTION PICTURES INC.

Description
Plein Air peoples choice
Durre Waseem
Description
Plein Air first place
Coraly Hanson
Description
November UPEC dues
Barbara Tapp
Description
Plein Air 2nd place
Check Totals:

EFT
Facility rental deposit refund
Steven McDonald
Description
Plein Air artist's choice
Sheila Vaughn
Description
WEX HEALTH INC.

Description
October COBRA and FSA admin.

Pages: 3 of 4
27 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued November 24, 2021
1240 11/22/2021 $54,481.24
Invoice Date Amount
1001988537-40 11/19/2021 $54,481.24
1001 - Payroll
1241 11/22/2021 $8,368.51
Invoice Date Amount
1-546-330-208 11/19/2021 $8,368.51
1001 - Payroll
1242 11/22/2021 $27,875.00
Invoice Date Amount
63544512 11/19/2021 $27,875.00
1001 - Payroll
1243 11/22/2021 $652.61
Invoice Date Amount
37826016 11/19/2021 $652.61
1001 - Payroll
1244 11/22/2021 $8,950.04
Invoice Date Amount
VOYA111321 11/19/2021 $8,950.04
1001 - Payroll
1245 11/22/2021 $12.26
Invoice Date Amount
82943973 11/19/2021 $12.26
1001 - Payroll
$100,474.66
Main City Totals Count Total
Checks 25 $154,657.69
EFTs 7 $100,474.66
All 32 $255,132.35
EFT Totals:

INTERNAL REVENUE SERVICE
Description
Medicare for employee final paycheck

VOYA FINANCIAL
Description
Employee 457 contributions PPE 11/13/21

STATE DISBURSEMENT UNIT
Description
Employee garnishments PPE 11/13/2021

INTERNAL REVENUE SERVICE
Description
Federal taxes & Medicare PPE 11/13/2021

EMPLOYMENT DEVELOPMENT DEPARTMENT
Description
State taxes PPE 11/13/2021
CalPERS Member Services Division
Description
PERS contributions PPE 11/13/21
Pages: 4 of 4
28 Item 8 B.
29 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
99380 12/07/2021 12/07/2021 $0.00
VOIDED
99381 12/07/2021 $50.00
Business license refund
99382 12/10/2021 $185.31
Invoice Date Amount
21417889 11/15/2021 $107.37
21501505 11/17/2021 $77.94
1311 - Wharf
99383 12/10/2021 $267.29
Invoice Date Amount
ADT112921 11/29/2021 $267.29
99384 12/10/2021 $1,315.58
Invoice Date Amount
174003 12/03/2021 $1,315.58
1001 - Payroll
99385 12/10/2021 $1,083.85
Invoice Date Amount
11996970 12/02/2021 $356.42
11996971 12/02/2021 $382.50
11996951 12/02/2021 $344.93
99386 12/10/2021 $322.83
Invoice Date Amount
52989 11/15/2021 $4.99
52993 11/15/2021 $190.79
53488 11/29/2021 $127.05
99387 12/10/2021 $207.50
Invoice Date Amount
61480 11/18/2021 $207.50
2211 - IT Fund
99388 12/10/2021 $493.40
Invoice Date Amount
1MFT-1NTX-DGRD 11/24/2021 $54.49
1VY6-MDT3-H6X4 11/30/2021 $53.14
1QRR-CFXC-CF36 12/01/2021 $17.28
17HN-LQK9-LDMP 12/02/2021 $176.70
1QYR-1PPP-PFVJ 12/02/2021 $39.24
1G1R-3NG7-NXMV 12/04/2021 $152.55
1000 - General Fund $421.63
2211 - IT Fund $71.77
City of Capitola
City Checks Issued December 10, 2021
ABC SUPPLY CO INC - MBA 742
Description
Wharf rubber coating, caulk

CURRENT ELECTRIC

CURRENT ELECTRIC
November supplemental insurance

ALLIED UNIVERSAL
Description
Corp. yard & museum ADT monitoring
AFLAC
Description
Rubber coating
ADT SECURITY SERVICES INC.

Description
PD lockset, labor
PD restroom lock, labor

ALVAREZ TECHNOLOGY GROUP INC

ALLSAFE LOCK COMPANY
Description
Keys
December McGregor skate park foot patrol
December Esplanade park foot patrol
December Jade St. foot patrol
Display port to DVI adapter
Work gloves (10 pairs)
Backpack
Description
5 port gigabit switch
Towelettes
Description
December antivirus

AMAZON CAPITAL SERVICES
Boots
Description
Description
Pages: 1 of 15
30 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 10, 2021
99389 12/10/2021 $5,000.00
Invoice Date Amount
ACOSC120721 12/07/2021 $5,000.00
99390 12/10/2021 $40.00
Invoice Date Amount
21464 11/22/2021 $40.00
1311 - Wharf
99391 12/10/2021 $1,526.74
Invoice Date Amount
485852 11/22/2021 $563.39
486286 12/01/2021 $963.35
99392 12/10/2021 $6,000.00
Invoice Date Amount
BBSC120721 12/07/2021 $6,000.00
1305 - Restricted TOT
99393 12/10/2021 $849.68
Invoice Date Amount
1639320 11/17/2021 $849.68
1311 - Wharf
99394 12/10/2021 $2,270.10
Invoice Date Amount
INV485963 11/30/2021 $2,270.10
99395 12/10/2021 $10,000.00
Invoice Date Amount
BG120721 12/07/2021 $10,000.00
1305 - Restricted TOT
99396 12/10/2021 $20,208.00
Invoice Date Amount
277384 11/29/2021 $58.00
277385 11/29/2021 $15,953.00
277387 11/29/2021 $132.50
277388 11/29/2021 $43.00
277389 11/29/2021 $344.50
277390 11/29/2021 $232.00
277386 11/29/2021 $3,445.00
99397 12/10/2021 $407.41
Invoice Date Amount
481336949 11/12/2021 $407.41
99398 12/10/2021 $10,000.00
Invoice Date Amount
CC120721 12/07/2021 $10,000.00
November wharf meter reading

B & B SMALL ENGINE REPAIR
Description
Community grants

AUTOMATION TEST ASSOCIATES
Description

ARTS COUNCIL OF SANTA CRUZ COUNTY
Description
Description
Wharf lumber, drill bit, nail puller, screws, saw blades BIOBAG AMERICAS INC.

Description
Community grants

BIG CREEK LUMBER
Chainsaw, saw blade, chain
Blower, belt bag, pruner, gloves, hedge shears, battery

BIG BROTHERS BIG SISTERS OF SC COUNTY
Description
November labor legal services
October legal services
Description
Community grants

BURKE WILLIAMS AND SORENSEN LLP
Description
Dog waste bags

BOYS AND GIRLS CLUBS OF SANTA CRUZ COUNTY
Description
FY21/22 water rights fee

CABRILLO COLLEGE
Housing updates
Planning legal services

CA DEPT OF TAX AND FEE ADMINISTRATION
PD legal services
COVID-19 legal services
October legal services
Description
Local govt. fellowship program
Pages: 2 of 15
31 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 10, 2021
99399 12/10/2021 $9,000.00
Invoice Date Amount
CCSC120721 12/07/2021 $9,000.00
99400 12/10/2021 $10,552.70
Invoice Date Amount
167048 11/17/2021 $351.09
167039 11/17/2021 $10,201.61
99401 12/10/2021 $2,954.50
Invoice Date Amount
POA111321 11/19/2021 $1,459.00
POA120321 12/03/2021 $1,495.50
1001 - Payroll
99402 12/10/2021 $3,770.00
Invoice Date Amount
CBF-11-2021 11/30/2021 $3,770.00
5552 - Housing Successor
99403 12/10/2021 $10,000.00
Invoice Date Amount
CASA120721 12/07/2021 $10,000.00
1305 - Restricted TOT
99404 12/10/2021 $156.00
Invoice Date Amount
CF113021 11/30/2021 $156.00
99405 12/10/2021 $5,719.92
Invoice Date Amount
28806 11/30/2021 $5,719.92
1000 - General Fund $4,901.48
1311 - Wharf Fund $818.44
99406 12/10/2021 $437.00
Invoice Date Amount
71675 11/30/2021 $437.00
99407 12/10/2021 $6,211.00
Invoice Date Amount
CAB111721 11/17/2021 $106.54
CAB111721-2 11/17/2021 $854.46
CAB120721 12/07/2021 $5,250.00
1000 - General Fund $5,250.00
5552 - Housing Successor $961.00
99408 12/10/2021 $1,118.00
Invoice Date Amount
3020 11/29/2021 $1,118.00
Description
Paystation keyboard adapter board
Modem upgrade for pay stations
Description
Community grants
CALE AMERICA INC.

CABRILLO COLLEGE STROKE CENTER
November affordable housing program management

CASA OF SANTA CRUZ COUNTY
Description
POA & gym dues PPE 11/27/21

CAROLYN FLYNN
Description

CAPITOLA PEACE OFFICERS ASSOCIATION
Description
POA & gym dues PPE 11/13/2021
November janitorial services

CODE PUBLISHING COMPANY INC
Description
Instructor payment
CLEAN BUILDING MAINTENANCE CO.

Description
Community grants

CLAUDIO FRANCA
Description

COMMUNITY TELEVISION OF SANTA CRUZ COUNTY
Description
October televised meetings
October mortgage assistance
October emergency housing assistance
Community grants
Municipal code web update

COMMUNITY ACTION BOARD
Description
Pages: 3 of 15
32 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 10, 2021
99409 12/10/2021 $50.70
Invoice Date Amount
CW120621 12/06/2021 $50.70
99410 12/10/2021 $183.50
Invoice Date Amount
CSW113021 11/30/2021 $183.50
99411 12/10/2021 $5,448.96
Invoice Date Amount
B211740 11/01/2021 $5,448.96
99412 12/10/2021 $611.00
Invoice Date Amount
CK120621 12/06/2021 $611.00
99413 12/10/2021 $859.83
Invoice Date Amount
285993 11/30/2021 $621.13
285994 11/30/2021 $119.35
285995 11/30/2021 $119.35
99414 12/10/2021 $4,562.23
Invoice Date Amount
10539614582 11/05/2021 $4,562.23
2211 - IT Fund
99415 12/10/2021 $1,600.00
Invoice Date Amount
DCDC120721 12/07/2021 $1,600.00
99416 12/10/2021 $180.00
Invoice Date Amount
35297 12/01/2021 $180.00
99417 12/10/2021 $1,391.23
Invoice Date Amount
9614837 12/01/2021 $1,391.23
99418 12/10/2021 $215.16
Invoice Date Amount
646209 11/15/2021 $215.16
99419 12/10/2021 $6,662.38
Invoice Date Amount
21-424399A 11/17/2021 $1,463.71
CFS-2823606 11/15/2021 $181.28
21-426342 11/18/2021 $313.89
21-426341 11/18/2021 $1,982.35
21-434437 12/03/2021 $2,224.52
21-434438 12/03/2021 $496.63
CSG Consultants Inc.

Description
October plan review services
CRYSTAL SPRINGS WATER CO.

Description
November drinking water
CRAIG R. WILSON
Description
Instructor payment
Jade St. park hand wash station rental
Cortez park hand wash station

DELL MARKETING LP

D & G SANITATION
Description
Skate park hand wash station, portable toilets

CYNTHIA KASKEY
Description
Instructor payment
Description
Elevator quarterly lube and inspection
FERGUSON ENTERPRISES LLC #795
Description
Community grants
ELEVATOR SERVICE COMPANY INC.

Description
Five desktops

DIENTES COMMUNITY DENTAL CARE
Description
Bulk oil
Fuel
Description
Community Center quarterly intrusion system monitoring

FLYERS ENERGY LLC
Description
Jade St. faucets

FIRST ALARM
100 gallons diesel
62 gallons diesel
396 gallons gasoline
468 gallons gasoline
Pages: 4 of 15
33 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 10, 2021
99420 12/10/2021 $362.90
Invoice Date Amount
019873380 11/30/2021 $177.65
019873388 11/30/2021 $185.25
99421 12/10/2021 $290.99
Invoice Date Amount
10668283 12/01/2021 $290.99
99422 12/10/2021 $49,754.13
Invoice Date Amount
997386 10/31/2021 $49,754.13
1200 - CIP
99423 12/10/2021 $1,685.24
Invoice Date Amount
SIN013297 12/02/2021 $1,685.24
99424 12/10/2021 $2,173.66
Invoice Date Amount
9621661 11/19/2021 $69.17
0520713 11/18/2021 $18.50
8014260 10/21/2021 $311.74
8513602 10/21/2021 $13.60
1644283 10/28/2021 $49.48
7625456 11/01/2021 $63.82
5634979 11/03/2021 $44.37
0510912 11/08/2021 $89.81
1061024 10/28/2021 $670.16
9610074 11/09/2021 $106.68
8011863 11/10/2021 $62.94
8511318 11/10/2021 $22.79
6034078 11/12/2021 $25.24
2512254 11/16/2021 $29.92
2611069 11/16/2021 $25.77
0520699 11/18/2021 $103.14
9013109 11/19/2021 $6.47
9013163 11/19/2021 $30.95
5612104 11/23/2021 $86.35
5032005 12/03/2021 $342.76
1000 - General Fund $1,727.76
1311 - Wharf Fund $445.90
99425 12/10/2021 $2,500.00
Invoice Date Amount
HSCC120721 12/07/2021 $2,500.00
99426 12/10/2021 $102.28
Invoice Date Amount
HUB113021 11/30/2021 $102.28
Wool shirt, trousers
Boots

GARDAWORLD

GALLS LLC
Description
Description
Sales tax audit services

HOME DEPOT CREDIT SERVICES
Description
Peery Park bridge repairs

HINDERLITER DELLAMAS AND ASSOCIATES
Description
December armored car service

GRANITE ROCK COMPANY
Stain, steel stakes
Tire stop supplies
Caution tape, concrete mix, I-beam level
Wet patch, trowel, blue tarps
Leaf rake
Rollers, wiping cloths, pet tray liner, brushes
Description
Face shield, goggles, sand
Backing pad for disc
Poly rolls, brush set, stain
Wharf supplies
Putty knives
Steel staples, adhesive
Flooring knife, hook blades, chisel tip marker
Combo stencils, standard wire, wiring tool
Caution tape, tools, battery, sponges, utility knife
Pail liners, bucket, plastic drop, caulk
Floor flanges, utility knife, supplies

HUB INTERNATIONAL
Description
November event insurance
HOSPICE of SANTA CRUZ COUNTY
Description
Community grants
Bucket, spray bottle, flap discs
Batteries, gloves, sakrete sand, ball bearings
Wharf tools and supplies
Pages: 5 of 15
34 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 10, 2021
99427 12/10/2021 $30.00
Invoice Date Amount
090795 11/20/2021 $7.50
090731 10/31/2021 $22.50
99428 12/10/2021 $346.89
Invoice Date Amount
JR120621 12/06/2021 $346.89
99429 12/10/2021 $357.50
Invoice Date Amount
JM113021 11/30/2021 $357.50
99430 12/10/2021 $70.00
Invoice Date Amount
147206 11/29/2021 $70.00
99431 12/10/2021 $52.08
Invoice Date Amount
55Y1232756 12/02/2021 $52.08
1000 - General Fund $43.00
2211 - IT Fund $9.08
99432 12/10/2021 $795.36
Invoice Date Amount
A0317693 11/18/2021 $208.67
A0317736 11/19/2021 $54.28
A0317742 11/19/2021 $49.78
A0317884 11/24/2021 $75.90
A0317891 11/24/2021 $70.83
A0317968 11/29/2021 $189.71
A0318098 12/02/2021 $44.38
A0318218 12/06/2021 $101.81
1000 - General Fund $670.25
1311 - Wharf Fund $125.11
99433 12/10/2021 $900.00
Invoice Date Amount
LA113021 11/30/2021 $432.00
LA120621 12/06/2021 $468.00
99434 12/10/2021 $2,520.00
Invoice Date Amount
33748 12/02/2021 $2,520.00
99435 12/10/2021 $469.28
Invoice Date Amount
67320652 11/22/2021 $210.02
67598557 12/02/2021 $259.26
Instructor payment

JEANI MITCHELL
Description
October car washes

JANET RUSSELL
Description

HUMBOLDT PETROLEUM LLC
Description
Car wash
Monthly copier usage charges
KING'S PAINT AND PAPER INC.

Description
PD background checks
KBA Document Solutions LLC
Description
Instructor payment
JOHNSON ROBERTS & ASSOCIATES INC.

Description
Jade St. paint, rust stopper
Curb paint, tray liner

LAURA ALIOTO
Drop cloths, tape, paint, gold pro mini wooster
Wharf paint, microfiber roller, versa tray
Paint
Jade St. paint, putty
Wharf paint, tray, tape, roller, chip brush
Jade St. paint, supplies
LINDE GAS & EQUIPMENT INC.

Description
Acetylene rental
LEWIS TREE SERVICE INC.

Description
Cortez park tree pruning
Description
Instructor payment
Instructor payment
Helmet, face shield, welding gloves & supplies
Pages: 6 of 15
35 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 10, 2021
99436 12/10/2021 $1,174.58
Invoice Date Amount
208495 11/08/2021 $1,174.58
99437 12/10/2021 $876.52
Invoice Date Amount
LL103121 10/31/2021 $876.52
99438 12/10/2021 $187.53
Invoice Date Amount
MC103121 10/31/2021 $187.53
99439 12/10/2021 $223.75
Invoice Date Amount
MID-1507841 11/12/2021 $223.75
99440 12/10/2021 $490.48
Invoice Date Amount
515919942 11/17/2021 $33.65
515979511 11/24/2021 $33.65
516016220 12/01/2021 $33.65
515919943 11/17/2021 $101.71
515979512 11/24/2021 $105.51
516016221 12/01/2021 $107.31
515995956 11/29/2021 $75.00
99441 12/10/2021 $5,000.00
Invoice Date Amount
MS120721 12/07/2021 $5,000.00
99442 12/10/2021 $30.00
Invoice Date Amount
211118_07 11/29/2021 $30.00
99443 12/10/2021 $5,000.00
Invoice Date Amount
MBNMS120721 12/07/2021 $5,000.00
99444 12/10/2021 $10,000.00
Invoice Date Amount
NSCC120721 12/07/2021 $10,000.00
99445 12/10/2021 $43.66
Invoice Date Amount
6841-069577 11/18/2021 $43.66
99446 12/10/2021 $1,400.00
Invoice Date Amount
NAR120721 12/07/2021 $1,400.00
October uniform cleaning

MASTER CLEANERS
Description
2008 Ford F450 tires

LUXLAUNDER
Description

LLOYDS TIRE SERVICE
Description
Fleet uniform cleaning, towels
Fleet uniform cleaning
Fleet uniform cleaning
Bearing kit, oil, gloves, primer, sanding discs

MISSION LINEN SUPPLY
Description
October uniform cleaning

MID COUNTY AUTO SUPPLY
Description
Community grants

MONTEREY BAY ANALYTICAL SERVICES INC
Description
Community center towels, mats, mops

MONARCH SERVICES
Description
Corp. yard uniform cleaning, mats, towels
Corp. yard uniform cleaning, mats, towels
Corp. yard uniform cleaning
Community grants

NAPA AUTO PARTS
Description
Community grants

NAMI SANTA CRUZ COUNTY
Description
Lagoon water sample

MONTEREY BAY NATIONAL MARINE SANCTUARY
Description
Community grants
Oil

NATIVE ANIMAL RESCUE
Description
Pages: 7 of 15
36 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 10, 2021
99447 12/10/2021 $1,400.00
Invoice Date Amount
2506 11/26/2021 $1,400.00
99448 12/10/2021 $102.65
Invoice Date Amount
283539 11/30/2021 $102.65
99449 12/10/2021 $3,400.00
Invoice Date Amount
OSO120721 12/07/2021 $3,400.00
99450 12/10/2021 $294.79
Invoice Date Amount
2763-247125 11/18/2021 $35.52
2763-245956 11/12/2021 $85.37
2763-247805 11/22/2021 $64.53
2763-249193 11/30/2021 $109.37
99451 12/10/2021 $1,807.95
Invoice Date Amount
E39560 11/18/2021 $43.59
E39297 11/18/2021 $16.55
E39283 11/18/2021 $53.36
E39273 11/18/2021 $115.45
E39783 11/19/2021 $54.48
E27062 10/26/2021 $30.25
E27857 10/27/2021 $71.89
E28134 10/28/2021 $53.03
E28695 10/29/2021 $51.20
E28601 10/29/2021 $196.07
E31939 11/04/2021 $43.58
E31823 11/04/2021 $14.48
E34037 11/08/2021 $117.06
E34892 11/09/2021 $39.84
E37957 11/15/2021 $12.40
E37838 11/15/2021 $82.53
E37703 11/15/2021 $139.04
E37690 11/15/2021 $37.10
E28215 10/28/2021 $416.15
E42167 11/23/2021 $41.39
E46472 12/01/2021 $45.07
E47798 12/03/2021 $133.44
99452 12/10/2021 $408.11
Invoice Date Amount
628207-0 11/16/2021 $36.94
628069-0 11/15/2021 $251.76
628000-0 11/15/2021 $155.15
C628480-0 12/02/2021 ($35.74)
Arborist services

NORTH BAY FORD
Description

NIGEL BELTON
Description
Disc pad set
Gasket, air filter, cabin filter, oil filter
Cop coil
Community grants

O'REILLY AUTO PARTS
Description
Transmission fluid

O'NEILL SEA ODYSSEY
Description
Lamp, light bulb, supplies
Tarp, light
Rat traps
Waste basket
Paint brushes
Putty knife, chisel, punch pin kit
Semi-met pad, transmission filter, belt

OUTDOOR SUPPLY HARDWARE
Description
Garden hose, nozzle, rust stopper, screwdriver, caulk, tool Spackling, rustoleum, rust stopper
Rust stopper
Batteries
Tote latch
Joint compound, latex caulk
Wrenches, spray paint
Paint pail, pipe caps, pliers
Magnet, batteries, mechanical pickup
Gloves, cup, brushes, wrench set, sprayer, degreaser

PALACE BUSINESS SOLUTIONS
Description
Batteries
Rotary file, rust remover, flap disc
Paint, graffiti removal
Brush, sand paper, paint
Sand paper, bucket, spray paint, rust stopper
Paint cup, roller, clips bucket, paint pail
Returned desk pad
Desk pad
Desk pad, paper, steno books, folders, notebooks
Paper, envelopes, folders, pencils, pens
Pages: 8 of 15
37 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 10, 2021
99453 12/10/2021 $7,400.00
Invoice Date Amount
PCSC120721 12/07/2021 $7,400.00
1305 - Restricted TOT
99454 12/10/2021 $3,200.00
Invoice Date Amount
PAST111721 11/17/2021 $3,200.00
99455 12/10/2021 $1,181.17
Invoice Date Amount
12062021A 12/06/2021 $1,181.17
2211 - IT Fund
99456 12/10/2021 $35.84
Invoice Date Amount
PC080189448 11/17/2021 $65.67
PR080019582 11/18/2021 ($29.83)
99457 12/10/2021 $5,343.02
Invoice Date Amount
102021070 11/16/2021 $5,343.02
99458 12/10/2021 $123.19
Invoice Date Amount
446038 11/16/2021 $123.19
99459 12/10/2021 $193.00
Invoice Date Amount
464287 10/14/2021 $193.00
99460 12/10/2021 $20.69
Invoice Date Amount
20969102 11/15/2021 $20.69
99461 12/10/2021 $100.00
Invoice Date Amount
RMP110821 11/08/2021 $100.00
99462 12/10/2021 $2,034.25
Invoice Date Amount
1783-02-0721 08/20/2021 $2,034.25
99463 12/10/2021 $147.10
Invoice Date Amount
55-0687566 11/22/2021 $71.60
63-0622308 11/23/2021 $75.50
Community grants

PAST CONSULTANTS LLC
Description

PARENTS CENTER OF SANTA CRUZ
Description
Filters
Returned filter

PHOENIX GROUP INFORMATION SYSTEMS
Police Department Emergency phones upgrade

PETERSON CATERPILLAR
Description
1410 Prospect Ave. SOI standards compliance report

PEAK COMMUNICATIONS
Description
Description
Taser target frames

QUILL CORPORATION
Description
Safety glasses

PROFORCE LAW ENFORCEMENT
Description
October citation processing

PK SAFETY SUPPLY
Description
#21-0122 Hotel design project kickoff & conceptual review

SAN LORENZO LUMBER
Description
Parking citation admin. hearings

RRM DESIGN GROUP
Description
Name tags

ROBERT M PATTERSON
Description
Safety glasses, polyester cover, brushes, roller covers Sealant, DAP, marker
Pages: 9 of 15
38 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 10, 2021
99464 12/10/2021 $426.74
Invoice Date Amount
14508-425932 11/18/2021 $154.25
14508-421426 10/04/2021 $248.33
14508-425847 11/17/2021 $2.69
14508-426478 11/24/2021 $21.47
1000 - General Fund $178.41
1310 - Gas Tax $248.33
99465 12/10/2021 $10,000.00
Invoice Date Amount
SCCM120721 12/07/2021 $10,000.00
1305 - Restricted TOT
99466 12/10/2021 $11,221.50
Invoice Date Amount
SCC113021 11/30/2021 $11,221.50
99467 12/10/2021 $653.17
Invoice Date Amount
2055272 12/02/2021 $653.17
99468 12/10/2021 $6,999.26
Invoice Date Amount
2056942 12/02/2021 $6,999.26
99469 12/10/2021 $3,033.89
Invoice Date Amount
2055458 12/02/2021 $3,033.89
1311 - Wharf
99470 12/10/2021 $716.89
Invoice Date Amount
33023 10/25/2021 $20.00
33031 10/25/2021 $159.54
33026 10/29/2021 $48.00
33024 10/25/2021 $90.00
33032 10/29/2021 $399.35
99471 12/10/2021 $120.00
Invoice Date Amount
1911 12/01/2021 $120.00
99472 12/10/2021 $800.00
Invoice Date Amount
9270 12/01/2021 $800.00
1321 - BIA
99473 12/10/2021 $797.99
Invoice Date Amount
SR120421 12/04/2021 $797.99
Sweeper supplies
Oil filter
Aircraft remover
SANTA CRUZ AUTO PARTS INC.

Description
Epoxy activator, epoxy primer

SANTA CRUZ COUNTY TAX COLLECTOR
Description
City Hall sanitation district charges

SANTA CRUZ COUNTY AUDITOR-CONTROLLER
Description
November citation processing

SANTA CRUZ CHILDREN'S MUSEUM OF DISCOVERY
Description
Community grants
SANTA CRUZ FIRE EQUIPMENT CO.

Description
PD fire extinguisher service

SANTA CRUZ COUNTY TAX COLLECTOR
Description
Wharf sanitation district charges

SANTA CRUZ COUNTY TAX COLLECTOR
Description
Esplanade sanitation district charges
New hire live scans

SANTA CRUZ WAVES
Description
PW vehicles fire extinguisher service
SANTA CRUZ LIVE SCAN INC.

Description
Corp. yard fire extinguisher service
Museum fire extinguisher service
City Hall fire extinguisher service
SLI training reimbursement
BIA advertising

SARAH RYAN
Description
Pages: 10 of 15
39 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 10, 2021
99474 12/10/2021 $19,193.74
Invoice Date Amount
SHFBCV1 11/19/2021 $19,193.74
1351 - CDBG Program Income
99475 12/10/2021 $7,500.00
Invoice Date Amount
SNS120721 12/07/2021 $7,500.00
99476 12/10/2021 $10,000.00
Invoice Date Amount
SCSC120721 12/07/2021 $10,000.00
99477 12/10/2021 $101.40
Invoice Date Amount
SEG113021 11/30/2021 $101.40
99478 12/10/2021 $1,868.73
Invoice Date Amount
08-15299-0111021 11/10/2021 $131.93
08-15562-0111021 11/10/2021 $44.04
09-15964-0111021 11/10/2021 $834.24
13-10919-0111821 11/18/2021 $44.04
10-16317-0111521 11/15/2021 $200.44
10-16315-0111521 11/15/2021 $64.57
10-16316-0111521 11/15/2021 $99.34
13-18567-0111821 11/18/2021 $450.13
99479 12/10/2021 $50.00
Invoice Date Amount
222231 11/16/2021 $50.00
99480 12/10/2021 $3,862.72
Invoice Date Amount
0000178120121 12/01/2021 $3,862.72
1000 - General Fund $1,682.42
2211 - IT Fund $2,180.30
99481 12/10/2021 $278.46
Invoice Date Amount
8064249981 11/13/2021 $268.33
8064083459 10/30/2021 $10.13
99482 12/10/2021 $7,067.00
Invoice Date Amount
SW-0216993 11/23/2021 $7,067.00
99483 12/10/2021 $193.71
Invoice Date Amount
TM112121 12/02/2021 $193.71
CDBG CV1 grant
SENIOR NETWORK SERVICES INC.

Description

SECOND HARVEST FOOD BANK
Description
Instructor payment

SOQUEL CREEK WATER DISTRICT
Description
Community grants

SESE EGAN GEDDES
Description
Community grants

SENIORS COUNCIL OF SC COUNTY
Description
426 Capitola Ave. water
2005 Wharf Rd. water

SOUTH BAY REGIONAL TRAINING
2000 Wharf Road water service
420 Capitola Ave. water
504 Beulah Dr. water
Monterey Ave. water
Cliff and Fairview water service
Monterey Ave. Esplanade water
Description
Stamp, paper towels, pens, knives, cups
Cleaning supplies
Description
December internet service

STAPLES ADVANTAGE
Description
Training cancellation fee

SPECTRUM BUSINESS

T MOBILE
Description
November cell phone usage

STATE WATER RESOURCES CONTROL BOARD
Description
FY 21/22 annual permit fee
Pages: 11 of 15
40 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 10, 2021
99484 12/10/2021 $3,000.00
Invoice Date Amount
TDC120721 12/07/2021 $3,000.00
99485 12/10/2021 $2,358.07
Invoice Date Amount
653718338 11/18/2021 $1,797.28
655338903 11/30/2021 $560.79
99486 12/10/2021 $179.03
Invoice Date Amount
TM110521 11/05/2021 $179.03
99487 12/10/2021 $1,551.20
Invoice Date Amount
150378654-0 11/23/2021 $1,551.20
1000 - General Fund $837.40
2211 - IT Fund $713.80
99488 12/10/2021 $1,690.25
Invoice Date Amount
667123 11/10/2021 $42.56
667456 12/02/2021 $1,647.69
1310 - Gas Tax
99489 12/10/2021 $500.00
Invoice Date Amount
83928 12/02/2021 $500.00
1321 - BIA
99490 12/10/2021 $1,439.12
Invoice Date Amount
713131 12/01/2021 $1,439.12
99491 12/10/2021 $285.58
Invoice Date Amount
200481618-001 11/17/2021 $285.58
99492 12/10/2021 $10,000.00
Invoice Date Amount
UW120721 12/07/2021 $10,000.00
99493 12/10/2021 $5,000.00
Invoice Date Amount
UW120721-2 12/07/2021 $5,000.00
1305 - Restricted TOT

THE DIVERSITY CENTER
Description
Community grants
FTO training meals reimbursement

TPX COMMUNICATIONS
Description
Janitorial supplies

TONY MENDOZA
Description

THE HOME DEPOT PRO
Description
Janitorial supplies
Description
Palm tree xmas lights

UNISAFE INC
Sweeper flat spray nozzle
Sweeper dirt shoe, blended filaments, GB set
TRIAD ELECTRIC INC.

November phone service
TRANSPORTATION ALLIANCE BANK INC.

Description
Description
Community grants 211 helpline & community assessment project

UNITED WAY OF SANTA CRUZ COUNTY
Description
Mini excavator rental

UNITED WAY OF SANTA CRUZ COUNTY
Description
Nitrile gloves
UNITED RENTALS (NORTH AMERICA) INC.

Description
Community grants - youth action network
Pages: 12 of 15
41 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 10, 2021
99494 12/10/2021 $22.34
Invoice Date Amount
0000954791481 11/27/2021 $11.20
0000954791491 12/04/2021 $11.14
99495 12/10/2021 $315.01
Invoice Date Amount
458983699 11/26/2021 $315.01
2210 - Stores Fund
99496 12/10/2021 $174.40
Invoice Date Amount
458702438 11/23/2021 $174.40
2210 - Stores Fund
99497 12/10/2021 $313.41
Invoice Date Amount
PARS120321 12/03/2021 $313.41
1001 - Payroll
99498 12/10/2021 $460.68
Invoice Date Amount
PARS111921 11/19/2021 $460.68
1001 - Payroll
99499 12/10/2021 $2,925.51
Invoice Date Amount
9892547924 11/10/2021 $2,925.51
99500 12/10/2021 $4,500.00
Invoice Date Amount
VCB120721 12/07/2021 $4,500.00
99501 12/10/2021 $10,000.00
Invoice Date Amount
VCSCC120721 12/07/2021 $10,000.00
99502 12/10/2021 $125.72
Invoice Date Amount
103061 11/08/2021 $125.72
99503 12/10/2021 $682.05
Invoice Date Amount
4170613 11/17/2021 $545.87
4170612 11/17/2021 $136.18
99504 12/10/2021 $650.00
Invoice Date Amount
T14238 11/23/2021 $650.00

US BANK EQUIPMENT FINANCE
Description
City Hall copier leases
Description
PD shipping
PD shipping
UPS
US BANK PARS Acct 6746022400
Description
PARS contributions PPE 11/13 & final paycheck
US BANK PARS Acct 6746022400
Description
PARS contributions PPE 11/27/21

US BANK EQUIPMENT FINANCE
Description
City Hall copier leases

VOLUNTEER CENTERS OF SC COUNTY
Description
Community grants

VISTA CENTER FOR THE BLIND
Description
Community grants

VERIZON WIRELESS
Description
November telephone charges
Motorcycle oil filter, oil
WITMER TYSON IMPORTS INC.

Description

WE ALL RIDE SANTA CRUZ
Description
Motorcycle oil filter, oil

WATSONVILLE BLUEPRINT
Description
41st Ave. signal plans
October K9 training
Pages: 13 of 15
42 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 10, 2021
99505 12/10/2021 $76.20
Invoice Date Amount
66585853 11/16/2021 $76.20
99506 12/10/2021 $500.00
Invoice Date Amount
19-0627 11/19/2021 $500.00
99507 12/10/2021 $41.00
Invoice Date Amount
200137503 11/17/2021 $41.00
99508 12/10/2021 $500.00
Invoice Date Amount
21-0243 11/19/2021 $500.00
99509 12/10/2021 $90.51
Invoice Date Amount
20210332 11/19/2021 $90.51
99510 12/10/2021 $96.00
Invoice Date Amount
500123735 11/24/2021 $96.00
99511 12/10/2021 $500.00
Invoice Date Amount
21-0097 11/19/2021 $500.00
99512 12/10/2021 $186.24
Invoice Date Amount
2057394r 12/09/2021 $186.24
$378,987.91
1246 12/06/2021 $53,797.81
Invoice Date Amount
1001997795-8 12/03/2021 $53,797.81
1001 - Payroll
1247 12/06/2021 $8,468.13
Invoice Date Amount
0-837-955-680 12/03/2021 $8,468.13
1001 - Payroll
1248 12/06/2021 $27,804.50
Invoice Date Amount
43762034 12/03/2021 $27,804.50
1001 - Payroll
Tree deposit refund 1408 41st Ave.

Daniel Brodovich
Description
First aid supplies
Allen Property Group Inc.

Description
ZEE MEDICAL SERVICE CO.

Description
Permit 20210332 partial refund
Laramie Juretich
Description
Tree deposit refund 1750 42nd Ave.

Keith Schuler
Description
Citation refund
Karen Parks
Description
Description
PERS contributions PPE 11/27/21
Library sanitation district charges
Check Totals:

EFT
Tree deposit refund 505 Hill St.

SANTA CRUZ COUNTY TAX COLLECTOR
Description
Citation refund
William & Patricia Waldron
Description

INTERNAL REVENUE SERVICE
Description
Federal taxes & Medicare PPE 11/27/21

EMPLOYMENT DEVELOPMENT DEPARTMENT
Description
State taxes PPE 11/27/21
CalPERS Member Services Division
Pages: 14 of 15
43 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 10, 2021
1249 12/06/2021 $652.61
Invoice Date Amount
37985311 12/03/2021 $652.61
1001 - Payroll
1250 12/06/2021 $7,477.75
Invoice Date Amount
VOYA120321 12/03/2021 $7,477.75
1001 - Payroll
1251 12/06/2021 $53,063.17
Invoice Date Amount
1001997835 12/03/2021 $53,063.17
1000 - General Fund $3,313.29
1001 - Payroll $49,749.88
$151,263.97
295 12/10/2021 $240.00
Invoice Date Amount
160707-63 11/30/2021 $240.00
$240.00
Main City Totals Count Total
Checks 132 $378,987.91
EFTs 6 $151,263.97
All 138 $530,251.88
Payroll Totals
Checks 0 $0.00
EFTs 84 $159,929.11
All 84 $159,929.11
Library Totals
Checks 1 $240.00
EFTs 0 $0.00
All 1 $240.00
Grand Totals:

Checks 133 $379,227.91
EFTs 90 $311,193.08
All 223 $690,420.99
Description
Library project management
Library Totals:

Library
BOGARD CONSTRUCTION INC.

EFT Totals:

CalPERS Health Insurance
Description
December health insurance

VOYA FINANCIAL
Description
Employee 457 contributions PPE 11/27/21

STATE DISBURSEMENT UNIT
Description
Employee garnishments PPE 11/27/21
Pages: 15 of 15
44 Item 8 B.
45 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
99513 12/17/2021 $1,160.00
Invoice Date Amount
740668 09/02/2019 $750.00
753986 03/02/2020 $410.00
99514 12/17/2021 $178.15
Invoice Date Amount
AH121321 12/13/2021 $178.15
99515 12/17/2021 $9.20
Invoice Date Amount
ATT120121 12/01/2021 $9.20
1000 - General Fund $4.53
2211 - IT Fund $4.67
99516 12/17/2021 $231.10
Invoice Date Amount
000017475512 12/13/2021 $231.10
1000 - General Fund $179.52
2211 - IT Fund $51.58
99517 12/17/2021 $1,187.84
Invoice Date Amount
000017476180 12/13/2021 $1,187.84
99518 12/17/2021 $879.90
Invoice Date Amount
14430 11/28/2021 $233.10
14431 11/28/2021 $646.80
1310 - Gas Tax
99519 12/17/2021 $211.00
Invoice Date Amount
548418 12/03/2021 $32.00
549840 12/03/2021 $179.00
99520 12/17/2021 $5,768.46
Invoice Date Amount
166755 11/26/2021 $1,829.00
164888 07/13/2021 $3,269.80
164887 07/13/2021 $669.66
99521 12/17/2021 $1,200.67
Invoice Date Amount
57465 12/08/2021 $1,200.67
99522 12/17/2021 $1,287.62
Invoice Date Amount
CH120921 12/09/2021 $1,287.62
1321 - BIA
Lawy Way lift station maintenance
PD HVAC maintenance

ADRIENNE HARRELL

ACCO ENGINEERED SYSTEMS
Description
City of Capitola
Description
December telephone & T1 service
AT&T/CALNET 3
Description
December long distance charges
AT&T/CALNET 3
Description
Instructor payment
AT&T

CA DEPARTMENT OF JUSTICE
Description
November fingerprinting
Description
November traffic signal maintenance - response
November traffic signal maintenance - routine
Description
December T-1 access
BEAR ELECTRICAL SOLUTIONS INC.

CAPITOLA SELF STORAGE
Description
Museum unit 1229 rent
November CALE pay stations
Paystation paper and parts
Paystation keypads
Employee fingerprinting
CALE AMERICA INC.

Description

CARIN HANNA
Description
BIA storage, website, mailings, printing, supplies reimbursement City Checks Issued December 17, 2021
Pages: 1 of 7
46 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 17, 2021
99523 12/17/2021 $7,491.35
Invoice Date Amount
6751 12/14/2021 $7,491.35
99524 12/17/2021 $330.00
Invoice Date Amount
1805 12/06/2021 $330.00
99525 12/17/2021 $800.00
Invoice Date Amount
DOD120421 12/04/2021 $800.00
99526 12/17/2021 $906.75
Invoice Date Amount
HF121321 12/13/2021 $906.75
99527 12/17/2021 $600.00
Invoice Date Amount
SIN013378 12/10/2021 $300.00
SIN013379 12/10/2021 $300.00
99528 12/17/2021 $107.10
Invoice Date Amount
9515683 12/09/2021 $107.10
99529 12/17/2021 $30.00
Invoice Date Amount
090823 11/30/2021 $30.00
99530 12/17/2021 $583.47
Invoice Date Amount
PC121721 12/15/2021 $583.47
99531 12/17/2021 $3.94
Invoice Date Amount
55Y1234820 12/10/2021 $3.94
99532 12/17/2021 $20,089.23
Invoice Date Amount
20140454 11/30/2021 $6,615.00
20140456 11/30/2021 $720.00
20140458 11/30/2021 $720.00
097763118-1121 11/30/2021 $12,034.23
1200 - CIP $19,369.23
1308 - SB1 $360
1309 - RTC $360
99533 12/17/2021 $16.32
Invoice Date Amount
A0318289 12/08/2021 $16.32

CRITICAL REACH
Description
APBnet annual support fee
COMPLETE MAILING SERVICE INC.

Description
Winter recreation mailing

HINDERLITER DELLAMAS AND ASSOCIATES
Description
District sales tax auditing services

HANYA FOJACO
Description
Instructor payment

DOCTORS ON DUTY
Description
New employee testing
November car washes

JIM MALBERG - PETTY CASH CUSTODIAN
Description
Respirator, gloves, lumber, brass elbow

HUMBOLDT PETROLEUM LLC
Description
District sales tax auditing services

HOME DEPOT CREDIT SERVICES
Description
Clares St. traffic calming
Capitola Rd. striping
Park Ave. traffic calming
Recreation copier usage charges

KIMLEY HORN AND ASSOCIATES INC
Description
Petty cash expenditures
KBA Document Solutions LLC
Description
Jade St. paint
Traffic signal adaptive control engineering
KING'S PAINT AND PAPER INC.

Description
Pages: 2 of 7
47 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 17, 2021
99534 12/17/2021 $400.00
Invoice Date Amount
1771 11/30/2021 $400.00
99535 12/17/2021 $662.79
Invoice Date Amount
208787 12/03/2021 $662.79
99536 12/17/2021 $41.59
Invoice Date Amount
MID-1534321 12/07/2021 $41.59
99537 12/17/2021 $259.60
Invoice Date Amount
93451 12/01/2021 $259.60
99538 12/17/2021 $108.65
Invoice Date Amount
516053785 12/08/2021 $33.65
516082832 12/13/2021 $75.00
99539 12/17/2021 $4,467.00
Invoice Date Amount
765426 12/07/2021 $4,467.00
1200 - CIP
99540 12/17/2021 $46.16
Invoice Date Amount
283587 12/07/2021 $46.16
99541 12/17/2021 $47.92
Invoice Date Amount
2763-249259 11/30/2021 $47.92
99542 12/17/2021 $713.60
Invoice Date Amount
2719 10/14/2021 $713.60
1321 - BIA
99543 12/17/2021 $10.01
Invoice Date Amount
PGE121021-acct0 12/10/2021 $10.01
99544 12/17/2021 $153.43
Invoice Date Amount
629818-0 12/02/2021 $105.48
629380-0 11/30/2021 $47.95
Employee psychological assessment

LLOYDS TIRE SERVICE
Description
LAW ENFORCEMENT PSYCHOLOGICAL SERVICES INC.

Description
December record storage

MISSION LINEN SUPPLY
Description
Spark plugs
MILLER'S TRANSFER & STORAGE CO.

Description
2011 Ford F250 tires

MID COUNTY AUTO SUPPLY
Description
Description
Ignition coil assembly

O'REILLY AUTO PARTS
Description
Wharf final permits, bid & construction support

NORTH BAY FORD
Fleet uniform cleaning, towels
Recreation mops, mats, towels

MOFFATT AND NICHOL
Description
Wharf Road Rispin Mansion utilities

PALACE BUSINESS SOLUTIONS
Description
BIA Sip N Stroll stemless goblets

PACIFIC GAS & ELECTRIC
Description
Spark plugs

OUTSIDE-IN
Description
Paper, cartridges
Cartridge
Pages: 3 of 7
48 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 17, 2021
99545 12/17/2021 $447.57
Invoice Date Amount
29869 12/13/2021 $447.57
99546 12/17/2021 $776.20
Invoice Date Amount
000264 12/08/2021 $776.20
99547 12/17/2021 $218.59
Invoice Date Amount
220669 10/19/2021 $218.59
99548 12/17/2021 $1,593.01
Invoice Date Amount
387508 12/06/2021 $1,593.01
99549 12/17/2021 $655.71
Invoice Date Amount
SCC120621 12/06/2021 $655.71
99550 12/17/2021 $50.00
Invoice Date Amount
SCCLECA121021 12/10/2021 $50.00
99551 12/17/2021 $961.60
Invoice Date Amount
0001316882 11/30/2021 $961.60
99552 12/17/2021 $671.45
Invoice Date Amount
SR110621 11/06/2021 $671.45
99553 12/17/2021 $286.00
Invoice Date Amount
SS121321 12/13/2021 $286.00

PHOENIX GROUP INFORMATION SYSTEMS
Description
Bluetooth printer
PHIL ALLEGRI ELECTRIC INC.

Description
3045 Capitola Rd. panel re-wiring

SANTA CRUZ COUNTY INFORMATION SERVICES
Description
November open query scan charges

RYDIN DECAL
Description
Parking permits

PRINTING SYSTEMS INC
Description
Business license envelopes

SARAH RYAN
Description
SLI training reimbursement

SANTA CRUZ SENTINEL
Description
November legal ads
SANTA CRUZ COUNTY LAW ENFORCEMENT CHIEFS ASSOC.

Description
2022 membership dues

SHANTA SHENOY
Description
Instructor payment
Pages: 4 of 7
49 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 17, 2021
99554 12/17/2021 $3,548.40
Invoice Date Amount
06-14476-0120221 12/02/2021 $127.18
42-14952-0112421 11/24/2021 $141.17
42-15297-0112421 11/24/2021 $136.94
42-15751-0112421 11/24/2021 $59.08
42-15969-0112421 11/24/2021 $81.15
42-16122-0112421 11/24/2021 $70.50
42-10504-0112421 11/24/2021 $59.08
42-11090-0112421 11/24/2021 $136.94
42-11467-0112421 11/24/2021 $1,149.68
42-11517-0112421 11/24/2021 $136.94
42-14404-0112421 11/24/2021 $59.08
42-16130-0112421 11/24/2021 $59.08
42-16136-0112421 11/24/2021 $463.74
42-16407-0112421 11/24/2021 $59.08
34-18508-0112421 11/24/2021 $33.68
42-14431-0112421 11/24/2021 $656.54
42-17688-0112421 11/24/2021 $59.46
42-18238-0112421 11/24/2021 $59.08
1000 - General Fund $3,084.66
1311 - Wharf Fund $463.74
99555 12/17/2021 $141.00
Invoice Date Amount
142186 11/23/2021 $141.00
99556 12/17/2021 $424.94
Invoice Date Amount
8064386702 11/27/2021 $95.43
8064325466 11/20/2021 $329.51
99557 12/17/2021 $126.71
Invoice Date Amount
127195 12/01/2021 $126.71
99558 12/17/2021 $3,522.99
Invoice Date Amount
77462 11/16/2021 $450.63
77389 11/11/2021 $873.91
77390 11/11/2021 $873.91
77392 11/11/2021 $450.63
77391 11/11/2021 $873.91
99559 12/17/2021 $412.50
Invoice Date Amount
37972 11/23/2021 $412.50
Cortez Park irrigation
426 Capitola Ave irrigation
2005 Wharf Road irrigation

SOQUEL CREEK WATER DISTRICT
Description
430 Kennedy Drive water service
Monterey Ave. Nobel Gulch Park irrigation
Wharf Road irrigation
1400 Wharf Road irrigation
Capitola Road irrigation
Jade Street park irrigation
41st Avenue irrigation
Lawn Way irrigation
Esplanade fountain irrigation
Cliff Drive irrigation
Description
PC 832 laws of arrest class

STAPLES ADVANTAGE
Lawn Way irrigation
Capitola Road irrigation

SOUTH BAY REGIONAL TRAINING
Bay Ave. irrigation
1510 McGregor Drive water service
Monterey Ave irrigation

SUMMIT UNIFORMS
Description
Jacket, hat

STATE STEEL COMPANY
Description
Steel
Description
Desk pad, pens
Tape, wipes, Purell, wall clips, dust-off, scissors
Chevron, Sgt. CPL and hashmark patches
Vest

THE EMBLEM AUTHORITY
Description
Vest
Vest
Jacket, hat
Pages: 5 of 7
50 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 17, 2021
99560 12/17/2021 $180.34
Invoice Date Amount
655642973 12/01/2021 $180.34
99561 12/17/2021 $2,696.35
Invoice Date Amount
00015 12/01/2021 $2,696.35
1321 - BIA
99562 12/17/2021 $171.22
Invoice Date Amount
66897 12/14/2021 $171.22
99563 12/17/2021 $4.00
Invoice Date Amount
0000954791501 12/11/2021 $4.00
99564 12/17/2021 $103.57
Invoice Date Amount
459512596 12/03/2021 $103.57
99565 12/17/2021 $26.06
Invoice Date Amount
459512802 12/03/2021 $26.06
99566 12/17/2021 $288.83
Invoice Date Amount
459513024 12/03/2021 $288.83
99567 12/17/2021 $8,425.42
Invoice Date Amount
WF120321 12/03/2021 $8,425.42
1000 - General Fund $6,800.63
2211 - IT Fund $1,624.79
Purchases over $500:

Ben Davis $513.48 Uniform pants 10 pairs
FMS Solutions $1,226.00 Flashlight, baton holders, rifle mount Indeed $517.44 Job posting
Carhartt $659.29 Uniform pants
PDNC Inc. $1,624.79 IT consulting
$75,715.31
1252 12/13/2021 $1,129.55
Invoice Date Amount
WF121321 12/13/2021 $1,129.55
$1,129.55

THE HOME DEPOT PRO
Description
Description
Year end forms W2, 1095, 1099
UPS
Description
December BIA marketing, website management, media boost

TYLER BUSINESS FORMS
Description
Soap dispenser

TODD HANSON
Description
Library
EFT Totals:

WELLS FARGO BANK
Description
December client analysis charges
November credit card purchases
Check Totals:

EFT
PD copier lease

WELLS FARGO BANK
Description
Recreation copier lease

US BANK EQUIPMENT FINANCE
Description
Recreation copier leases

US BANK EQUIPMENT FINANCE
Description
Missing PLD fees

US BANK EQUIPMENT FINANCE
Pages: 6 of 7
51 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 17, 2021
296 12/17/2021 $960.00
Invoice Date Amount
20140457 11/30/2021 $960.00
$960.00
Main City Totals Count Total
Checks 55 $75,715.31
EFTs 1 $1,129.55
All 56 $76,844.86
Payroll Totals
Checks 0 $0.00
EFTs 91 $235,921.10
All 91 $235,921.10
Library Totals
Checks 1 $960.00
EFTs 0 $0.00
All 1 $960.00
Grand Totals:

Checks 56 $76,675.31
EFTs 92 $237,050.65
All 148 $313,725.96
Description
Library driveway improvements
Library Totals:

KIMLEY HORN AND ASSOCIATES INC
Pages: 7 of 7
52 Item 8 B.
53 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
99568 12/27/2021 $14,221.25
Invoice Date Amount
PGE121421-acct9 12/14/2021 $14,221.25
1000 - General Fund $5,122.39
1300 - SLESF $113.50
1310 - Gas Tax $6,715.73
1311 - Wharf Fund $2,269.63
99569 12/30/2021 $123.71
Invoice Date Amount
22310812 12/14/2021 $123.71
99570 12/30/2021 $1,136.50
Invoice Date Amount
46271250 12/27/2021 $1,136.50
99571 12/30/2021 $129.55
Invoice Date Amount
1LCH-CDDP-VLWJ 12/15/2021 $57.75
1PQY-W1LX-PV3T 12/16/2021 $18.40
1V4W-WXPR-67V7 12/22/2021 $53.40
1000 - General Fund $53.40
2211 - IT Fund $76.15
99572 12/30/2021 $40.00
Invoice Date Amount
21517 12/22/2021 $40.00
1311 - Wharf Fund $40.00
99573 12/30/2021 $130.00
Invoice Date Amount
44533 12/15/2021 $130.00
99574 12/30/2021 $140.80
Invoice Date Amount
1633301 11/05/2021 $140.80
99575 12/30/2021 $30.00
Invoice Date Amount
85693 12/22/2021 $30.00
December gas & electricity
ABC SUPPLY CO INC - MBA 742
Description

PACIFIC GAS & ELECTRIC
Description
Webcam, wired headset
Monitor cables
Refrigerator water filter
FY22 budget reports (15)

AMAZON CAPITAL SERVICES
Description
Flash tape foil

ALPHA GRAPHICS
Description

BIG CREEK LUMBER
Description
Cedar rail and split end post
BAYSIDE OIL II INC.

Description
Used oil recycling

AUTOMATION TEST ASSOCIATES
Description
December wharf meter reading

BRINKS AWARDS & SIGNS
Description
Tags for lockers
City of Capitola
City Checks Issued December 30, 2021
Pages: 1 of 9
54 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 30, 2021
99576 12/30/2021 $24,512.50
Invoice Date Amount
278724 12/28/2021 $927.50
278725 12/28/2021 $742.00
278726 12/28/2021 $768.50
278722 12/28/2021 $14,734.00
278723 12/28/2021 $7,340.50
99577 12/30/2021 $1,495.50
Invoice Date Amount
POA121121 12/17/2021 $1,495.50
1001 - Payroll
99578 12/30/2021 $1,040.00
Invoice Date Amount
3036 12/27/2021 $1,040.00
99579 12/30/2021 $675.00
Invoice Date Amount
136 12/09/2021 $675.00
99580 12/30/2021 $2,574.91
Invoice Date Amount
1257251 11/11/2021 $2,574.91
1000 - General Fund $336.08
1001 - Payroll $2,238.83
99581 12/30/2021 $171.59
Invoice Date Amount
EG120721 12/07/2021 $171.59
99582 12/30/2021 $732.25
Invoice Date Amount
9637760 12/14/2021 $732.25
99583 12/30/2021 $250.83
Invoice Date Amount
655941 12/15/2021 $250.83
99584 12/30/2021 $2,303.68
Invoice Date Amount
21-441877 12/20/2021 $2,303.68
Police legal services
November legal services
November legal services

BURKE WILLIAMS AND SORENSEN LLP
Description
Recreation legal services
November televised meetings

CRAIG FEENEY
Description
POA & gym dues PPE 12/11/21

COMMUNITY TELEVISION OF SANTA CRUZ COUNTY
Description
Planning legal services

CAPITOLA PEACE OFFICERS ASSOCIATION
Description
Febreze, face masks, disinfecting wipes, Lysol
FERGUSON ENTERPRISES LLC #795
Description
December LTD, STD, AD&D, life insurance

ESMERALDA GONZALEZ
Description
HVAC maintenance

EQUITABLE
Description
478 gallons gasoline
Evidence room quarterly monitoring

FLYERS ENERGY LLC
Description
Esplanade bathroom parts

FIRST ALARM
Description
Pages: 2 of 9
55 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 30, 2021
99585 12/30/2021 $144.37
Invoice Date Amount
019910881 12/03/2021 $144.37
99586 12/30/2021 $1,146.25
Invoice Date Amount
GM122221 12/22/2021 $1,146.25
99587 12/30/2021 $3,941.16
Invoice Date Amount
3525231 12/15/2021 $29.41
1010240 12/07/2021 $144.92
5033388 12/13/2021 $82.46
4516386 12/14/2021 $158.29
5505975 11/23/2021 $59.34
6622097 11/22/2021 $17.49
6741946 11/22/2021 $36.61
8014505 11/30/2021 $36.40
8632704 11/30/2021 $9.83
5631903 11/23/2021 $43.56
8612939 11/30/2021 $64.60
7014747 12/01/2021 $651.74
5514789 12/03/2021 $63.47
6014831 12/02/2021 $22.87
0624645 12/08/2021 $72.95
1283775 12/07/2021 $45.52
1524001 12/07/2021 $39.69
9010625 12/09/2021 $120.88
6031848 12/02/2021 $209.43
2624246 12/06/2021 $86.89
2062940 12/16/2021 $145.71
2340592 12/16/2021 $48.40
2525356 12/16/2021 $64.15
4615140 12/14/2021 $29.87
4615210 12/14/2021 $32.00
8010804 12/10/2021 $233.21
1063041 12/17/2021 $579.27
6621082 12/22/2021 $67.04
6634863 12/22/2021 $28.30
7517308 12/21/2021 $11.94
7613418 12/21/2021 $47.57
8034293 12/20/2021 $22.04
8620779 12/20/2021 $145.93
8034333 12/20/2021 $489.38
1000 - General Fund $3,919.12
1311 - Wharf Fund $22.04

GALLS LLC
Description
Gloves, sakrete
Sakrete, pallet fee
City Hall repairs
Bay St. & Peery park maintenance, Noble Gulch ivy treatment

HOME DEPOT CREDIT SERVICES
Description
Wool pants, command shirt
GEORGE McMENAMIN
Description
Putty knives, utility blades
Putty knives, wax rings, joint knife
Pine board, lumber, screws, level, fan
Spray handle, brush set, air fresheners
Loctite, poly rollers, glue epoxy
Storage hangers, wood screws
Sakrete, flap discs, sanding discs, epoxy, rustoleum
Jade St. water bubbler
Putty knives, brush
Joint compound, lumber, drywall, wet/dry vac, pliers, pencils Pine board, lumber, hex bit
Battery
Mulch
Screw driver set, quikrete, bucket
Rafter square, impact socket, deadbolts
T-square, foil, gloves, pencil pull holder
Propane tank
Lumber, pine board, tool backpack
Braided supply lines, couplings, adapters
Flex seal
Scour pad, supplies
Powersquid, wall plate, wall base adhesive
Funnel, paint thinner, DeWalt jig saw tool
Vanity, drain, plumber's putty, bath mirror, plumbing supplies Plywood for Christmas wreath
Paint cups, Esplanade bathroom supplies
Roller pail, putty knife, impact nut driver set
Transfer pumps, extension cords, flex seal, voltage tester, Cutoff discs, electrical box
Wharf sakrete
Hose, klean strip, utility knife, wet patch
Pages: 3 of 9
56 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 30, 2021
99588 12/30/2021 $82.50
Invoice Date Amount
090670 10/10/2021 $37.50
090699 10/20/2021 $37.50
090853 12/15/2021 $7.50
99589 12/30/2021 $252.59
Invoice Date Amount
120118315 12/13/2021 $252.59
99590 12/30/2021 $164.07
Invoice Date Amount
55Y1236391 12/16/2021 $164.07
2211 - IT Fund
99591 12/30/2021 $348.79
Invoice Date Amount
A0318695 12/28/2021 $77.83
A0318696 12/28/2021 $241.22
A0318517 12/16/2021 $29.74
99592 12/30/2021 $214.06
Invoice Date Amount
67897342 12/22/2021 $214.06
99593 12/30/2021 $706.98
Invoice Date Amount
LL113021 11/30/2021 $706.98
99594 12/30/2021 $151.13
Invoice Date Amount
MC113021 11/30/2021 $151.13
99595 12/30/2021 $830.57
Invoice Date Amount
416704 12/21/2021 $830.57
99596 12/30/2021 $196.46
Invoice Date Amount
516190229 12/29/2021 $33.65
516144632 12/22/2021 $33.65
516053786 12/08/2021 $95.51
516104472 12/15/2021 $33.65
October car washes
October car washes
December car wash

HUMBOLDT PETROLEUM LLC
Description
KING'S PAINT AND PAPER INC.

Description
Jade St. paint
KBA Document Solutions LLC
Description
City Hall copier usage charges

INTERSTATE BATTERY SYSTEM OF SAN JOSE INC
Description
Batteries
Description
November uniform cleaning

MASTER CLEANERS
Description
Acetylene rental

LUXLAUNDER
Esplanade bathroom paint
PD supplies
LINDE GAS & EQUIPMENT INC.

Description
Fleet uniform cleaning, towels
Fleet uniform cleaning, towels
Description
PD copier usage charges

MISSION LINEN SUPPLY
Description
November uniform cleaning

MBS BUSINESS SYSTEMS
Corp. yard uniform cleaning, towels
Fleet uniform cleaning, towels
Pages: 4 of 9
57 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 30, 2021
99597 12/30/2021 $191.65
Invoice Date Amount
6841-071655 12/16/2021 $191.65
99598 12/30/2021 $206.08
Invoice Date Amount
283570 12/06/2021 $158.41
283641 12/10/2021 $47.67
99599 12/30/2021 $175.89
Invoice Date Amount
2763-250599 12/08/2021 $157.98
2763-251817 12/15/2021 ($157.98)
2763-253011 12/21/2021 $103.14
2763-253359 12/22/2021 $6.27
2763-254489 12/29/2021 $66.48
99600 12/30/2021 $362.70
Invoice Date Amount
E50866 12/07/2021 $13.06
E50931 12/07/2021 $42.68
E45894 11/30/2021 $5.93
E50176 12/06/2021 $32.71
E51037 12/07/2021 $8.26
E52630 12/10/2021 $6.53
E56337 12/16/2021 $35.61
E58909 12/20/2021 $158.66
E59633 12/21/2021 $59.26
99601 12/30/2021 $3,922.18
Invoice Date Amount
PGE121521-acct7 12/15/2021 $2,589.23
PGE121421-acct5 12/14/2021 $1,332.95
99602 12/30/2021 $358.58
Invoice Date Amount
631281-0 12/14/2021 $301.91
631747-0 12/21/2021 $56.67
99603 12/30/2021 $114.47
Invoice Date Amount
PC080189929 12/17/2021 $114.47
99604 12/30/2021 $8,194.24
Invoice Date Amount
112021070 12/16/2021 $8,194.24
Description
Switch assembly
Motor assembly
Description
Carb kit, gauge, paint stripper, hardware, windshield wash

NORTH BAY FORD

NAPA AUTO PARTS
Thermostat

OUTDOOR SUPPLY HARDWARE
Description
Returned brake rotors
Starter, cutting pad, battery cables
Starter, core return

O'REILLY AUTO PARTS
Description
Brake rotors
Screw driver, jumbo roller
Bucket, spray paint, sand paper, routing bit, grinding wheel Brush cleaner, wire, fasteners, flap wheel
Rustoleum, spray paint
Fence post
Teflon lube
Spray paint
Wire rope, pruners
Fasteners
Drawer pedestal, hanging folders
Paper

PETERSON CATERPILLAR
Pacific Cove parking lot utilities

PALACE BUSINESS SOLUTIONS
Description

PACIFIC GAS & ELECTRIC
Description
Library gas and electricity
Description
November citation processing
Description
926M belt

PHOENIX GROUP INFORMATION SYSTEMS
Pages: 5 of 9
58 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 30, 2021
99605 12/30/2021 $2,349.10
Invoice Date Amount
PB121921 12/19/2021 $2,349.10
2210 - Stores Fund
99606 12/30/2021 $4,748.20
Invoice Date Amount
EIA42767 12/01/2021 $4,748.20
1000 - General Fund $184.20
1001 - Payroll $4,564.00
99607 12/30/2021 $462.13
Invoice Date Amount
55-0690808 12/07/2021 $462.13
1311 - Wharf Fund
99608 12/30/2021 $279.92
Invoice Date Amount
14508-428570 12/20/2021 $146.25
14508-427804 12/10/2021 $133.67
99609 12/30/2021 $330.18
Invoice Date Amount
SCMU113021 11/30/2021 $330.18
99610 12/30/2021 $125,222.25
Invoice Date Amount
SCR121521 12/15/2021 $125,222.25
99611 12/30/2021 $1,998.55
Invoice Date Amount
10-16317-0121621 12/16/2021 $249.84
13-10919-0121721 12/17/2021 $44.04
09-15964-0120921 12/09/2021 $902.36
08-15562-0120921 12/09/2021 $54.04
08-15299-0120921 12/09/2021 $143.85
10-16315-0121621 12/16/2021 $53.41
10-16316-0121621 12/16/2021 $99.34
13-18567-0121721 12/17/2021 $451.67
99612 12/30/2021 $96.49
Invoice Date Amount
8064470007 12/04/2021 $18.52
8064546262 12/11/2021 $77.97
Description
City Hall postage machine refill and rental
PREFERRED BENEFIT INSURANCE ADMIN.

PITNEY BOWES
Description
Battery
Gloves, mixing cup, brake pads
Description
Wharf entrance lumber
SANTA CRUZ AUTO PARTS INC.

Description
December dental and vision

SAN LORENZO LUMBER

SOQUEL CREEK WATER DISTRICT
Description
420 Capitola Ave. water
SANTA CRUZ REGIONAL 911
Description
Regional 911 operating contribution & SCRMS

SANTA CRUZ MUNICIPAL UTILITIES
Description
November water service for medians
2005 Wharf Rd. water

STAPLES ADVANTAGE
Description
Monterey Ave. water
504 Beulah Dr. water
426 Capitola Ave. water
2000 Wharf Road water service
Monterey Ave. Esplanade water
Cliff and Fairview water service
Stamp
Disinfecting wipes, Lysol
Pages: 6 of 9
59 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 30, 2021
99613 12/30/2021 $1,205.31
Invoice Date Amount
77223 11/04/2021 $272.34
77982 12/16/2021 $932.97
99614 12/30/2021 $442.46
Invoice Date Amount
4446945 12/23/2021 $442.46
99615 12/30/2021 $193.71
Invoice Date Amount
TM122121 12/21/2021 $193.71
99616 12/30/2021 $2,447.79
Invoice Date Amount
658645163 12/16/2021 $399.92
659803423 12/22/2021 $348.65
658379714 12/15/2021 $1,339.53
658564497 12/15/2021 $143.98
657237269 12/08/2021 $215.71
99617 12/30/2021 $1,817.37
Invoice Date Amount
151534701-0 12/23/2021 $1,817.37
1000 - General Fund $1,069.14
2211 - IT Fund $748.23
99618 12/30/2021 $129.52
Invoice Date Amount
713131-2 12/01/2021 $129.52
99619 12/30/2021 $20.00
Invoice Date Amount
UW121721 12/17/2021 $20.00
1001 - Payroll
99620 12/30/2021 $752.50
Invoice Date Amount
UPEC123121 12/17/2021 $752.50
1001 - Payroll
99621 12/30/2021 $6.90
Invoice Date Amount
0000954791511 12/18/2021 $6.90

SUPERIOR PRESS
Description
AP checks
Description
Boots
New employee uniform and supplies

SUMMIT UNIFORMS
Janitorial supplies
Janitorial supplies
Smoke alarm

THE HOME DEPOT PRO
Description
Janitorial supplies

T MOBILE
Description
December cell phone usage
Sales tax on nitrile gloves

UNITED WAY OF SANTA CRUZ COUNTY
Description
December phone service

UNISAFE INC
Description
Nitrile gloves

TPX COMMUNICATIONS
Description
PD shipping
December UPEC dues
UPS
Description
December United Way employee contributions
UPEC LIUNA LOCAL 792
Description
Pages: 7 of 9
60 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 30, 2021
99622 12/30/2021 $502.99
Invoice Date Amount
PARS121121 12/17/2021 $502.99
1001 - Payroll
99623 12/30/2021 $2,919.76
Invoice Date Amount
9894776759 12/10/2021 $2,919.76
99624 12/30/2021 $139.60
Invoice Date Amount
3035300 12/01/2021 $69.80
3035301 12/01/2021 $69.80
99625 12/30/2021 $10.00
Invoice Date Amount
500124444 12/16/2021 $10.00
$217,487.52
1253 12/23/2021 $135.00
Invoice Date Amount
0001437854-IN 11/30/2021 $135.00
1254 12/20/2021 $54,848.78
Invoice Date Amount
1002007738-43 12/17/2021 $54,848.78
1001 - Payroll
1255 12/20/2021 $19,675.03
Invoice Date Amount
1-123-993-696 12/17/2021 $19,675.03
1001 - Payroll
1256 12/20/2021 $60,949.27
Invoice Date Amount
55687925 12/17/2021 $60,949.27
1001 - Payroll
1257 12/20/2021 $652.61
Invoice Date Amount
38131944 12/17/2021 $652.61
1001 - Payroll
US BANK PARS Acct 6746022400
Description
Check Totals:

December City Hall rodent control
December turnouts rodent control
Heidi Thomas
December telephone charges

WESTERN EXTERMINATOR COMPANY
Description
PARS contributions PPE 12/11/21

VERIZON WIRELESS
Description
Employee garnishments PPE 12/11/21
Federal taxes & Medicare PPE 12/11/21

STATE DISBURSEMENT UNIT
Description
State taxes PPE 12/11/21

INTERNAL REVENUE SERVICE
Description
PERS contributions PPE 12/11/21

EMPLOYMENT DEVELOPMENT DEPARTMENT
Description
November COBRA and FSA admin.

CalPERS Member Services Division
Description
EFT
WEX HEALTH INC.

Description
Description
Citation refund
Pages: 8 of 9
61 Item 8 B.

Check
Number Invoice Number Invoice Date Description Payee Name Transaction
Amount
City of Capitola
City Checks Issued December 30, 2021
1258 12/28/2021 $49,204.46
Invoice Date Amount
VOYA121721 12/17/2021 $49,204.46
1001 - Payroll
$185,465.15
Main City Totals Count Total
Checks 58 $217,487.52
EFTs 6 $185,465.15
All 64 $402,952.67
Payroll Totals
Checks 1 $530.94
EFTs 0 $0.00
All 1 $530.94
Grand Totals:

Checks 59 $218,018.46
EFTs 6 $185,465.15
All 65 $403,483.61
Employee 457 contributions PPE 12/11/21
EFT Totals:

VOYA FINANCIAL
Description
Pages: 9 of 9
62 Item 8 B.

Capitola City Council
Agenda Report
Meeting: January 13, 2022
From: Finance Department, Jim Malberg
Subject: FY 2020-21 Audit Report
Recommended Action: Receive report.

Background: The City of Capitola is required by state statute to publish a complete set of financial statements presented in conformity with generally accepted accounting principles and audited in accordance with generally accepted auditing standards. The audit must be conducted by a firm of licensed certified public accountants.

The City’s Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2021, has again received an “unmodified” opinion, which indicates the auditor believes the financial statements are presented fairly in all material respects. The City’s annual audit and ACFR meet all state and federal requirements and will be available to the public at City Hall as well as on the City’s website.

Discussion: The financial report presents the financial condition, results of operations, and current economic condition for the City and component units’ Fiscal Year ended June 30, 2021. Financial information for the Successor Agency is presented as a separate Private Purpose Trust Fund within the ACFR.

The independent audit firm Eide Bailly LLP issued the following opinion on the City’s financial records, found on page two of the ACFR: “In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Capitola, California, as of June 30, 2021, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.”
The Fiscal Year (FY) 2020-21 ACFR has been submitted to the Government Finance Officers’ Association for the Excellence in Financial Reporting Award. The City’s ACFR has received this prestigious award for the last nine fiscal years. Previously, the City had received the California Society of Municipal Finance Officers Award for the Outstanding Financial Reporting every year since FY 2000.

In addition to the ACFR, the auditor also issues a Management Letter and the Letter of Required Disclosures to the Governing Body and Statement of Auditing Standards (SAS) 114. The Management Letter discusses the City’s internal control over financial reporting and makes recommendations, if necessary, of controls that need to be strengthened. The SAS 114 Letter is a document that discusses, among other matters, any significant audit findings. Neither document identified any areas of concern.

Fiscal Impact: The following are key financial highlights of the FY 2020-21 ACFR:
63 Item 8 C.
 Net Position
o Current and other assets $ 26,419,144
o Capital assets 33,947,364
o Total Assets $ 60,366,508
o Total Deferred Outflows of Resources $ 6,261,262
o Other Liabilities $ 1,222,910
o Long-term liabilities
 Due in one year 496,959
 Due in more than one year 30,221,897
o Total Liabilities $ 31,941,766
o Total Deferred Inflows of Resources $ 1,565,469
o Net Position:
o Net investment in capital assets $ 32,052,715
o Restricted 12,055,063
o Unrestricted (10,987,243)
o Total Net Position $ 33,120,535
 Revenues
o General Revenues:
o Taxes:
 Sales and use taxes $ 7,705,348
 Property taxes 2,793,549
 Transient occupancy taxes 1,529,015
 Franchise taxes 561,969
 Business license taxes 291,590
o Motor vehicle in-lieu 232,475
o Investment income 335,472
o Miscellaneous revenue 203,806
o Program Revenues:
 Charges for services 2,418,654
 Operating grants and contributions 3,124,803
 Capital contributions and grants 1,167,294
o Total Revenues $ 20,363,975
 Expenses
o General Government $ 3,736,255
o Public Safety 7,236,650
o Community Development 978,887
o Culture and Recreation 1,106,517
o Public Works 3,092,354
o Interest and other charges 66,645
o Total Expenses $ 16,217,308
o Change in Net Position 4,146,667
o Beginning Net Position 28,973,868
o Ending Net Position $ 33,120,535
64 Item 8 C.
 General Fund
o Fund balance:
o Non-spendable:
 Prepaid items $ 0
o Assigned:
 Emergency Reserve 1,374,206
 Contingency Reserve 2,584,176
 PERS Retirement Trust 1,015,553
o Unassigned 6,338,927
o Total Fund Balance $ 11,312,862
 Capital Assets:
o Land $ 4,883,789
o Building & Improvements 2,398,168
o Equipment 4,217,845
o Infrastructure 33,990,293
o Construction in Progress 16,580,592
o Total Capital Assets $ 62,070,687
o Less Depreciation 28,123,323
o Capital Assets Net of Depreciation $ 33,947,364
 Long-Term Debt / Liability
o Pacific Cove Capital Lease 934,557
o Beach & Village Parking Lease 960,092
o Compensated Absences 981,426
o Net OPEB Obligation 1,731,223
o Net Pension Liability 26,111,558
o Total Long-Term Debt $ 30,718,856
The next opportunity to review the City’s financial picture, including updated revenue and expenditure forecasts, will be at the Mid-Year Budget Review in late January.

Attachments:

1. Attachment 1: City of Capitola FY 2020-21 ACFR

2. Attachment 2: Governance Communication Letter

3. Attachment 3: Internal Control Compliance Report
Report Prepared By: Jim Malberg, Finance Director
Reviewed By: Chloé Woodmansee, City Clerk; Samantha Zutler, City Attorney Approved By: Jamie Goldstein, City Manager
65 Item 8 C.
1 December 30, 2021
To the Honorable Members of the City Council of
City of Capitola
Capitola, California
We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information for City of Capitola (City), California, as of and for the year ended June 30, 2021, and have issued our report thereon dated December 30, 2021. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit under Generally Accepted Auditing Standards and Government Auditing Standards and our Compliance Audit under the Uniform Guidance As communicated in our planning letter dated June 1, 2021, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of its respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process.

However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

We have provided our comments regarding internal controls during our audit in our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards dated December 30, 2021.

Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.

What inspires you, inspires us. | eidebailly.com
4040 Campbell Ave., Ste. 200 | Menlo Park, CA 94025-1053 | T 650.522.3400 | F 650.645.7393 | EOE 66 Item 8 C.
2 Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the engagement, if applicable, have complied with all relevant ethical requirements regarding independence.

Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during 2021. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.

The most sensitive accounting estimates affecting the financial statements are related to the City Pension and Other Postemployment Benefits (OPEB) liabilities.

Management’s estimate of these is based on actuarial estimated performed by management specialists.

We evaluated the key factors and assumptions used to develop these actuarial estimates and determined that it is reasonable in relation to the basic financial statements taken as a whole.

Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to: the Discount rates used in estimated pension and OPEB liabilities.

Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.
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3 Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit.

There was no corrected or uncorrected misstatement.

Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the financial statements or the auditor’s report. No such disagreements arose during the course of the audit.

Representations Requested from Management
We have requested certain written representations from management, which are included in the attached letter dated December 30, 2021.

Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the entity, and operating plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors.

Modification of the Auditor’s Report
We have made no modification to our auditor’s report.

Other Information in Documents Containing Audited Financial Statements Pursuant to professional standards, our responsibility as auditors for other information in documents containing the City’s audited financial statements does not extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information.

However, in accordance with such standards, we will review the information inputted into the data collection form and will consider whether such information, or the manner of its presentation, is materially consistent with the financial statements.
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4 Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.

This report is intended solely for the information and use of the governing board and management of the City and is not intended to be and should not be used by anyone other than these specified parties.

Menlo Park, California
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1 INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Members of the City Council of the City of Capitola Capitola, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Capitola (City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 30, 2021.

Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control.

Accordingly, we do not express an opinion on the effectiveness of the City's internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

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4040 Campbell Ave., Ste. 200 | Menlo Park, CA 94025-1053 | T 650.522.3400 | F 650.645.7393 | EOE 70 Item 8 C.
2 Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Menlo Park, California
December 30, 2021
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Annual Comprehensive
Financial Report
City of Capitola, California
Fiscal Year Ended June 30, 2021
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CITY OF CAPITOLA,

CALIFORNIA

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Prepared by the Capitola Finance Department
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City of Capitola
Comprehensive Annual Financial Report
Year Ended June 30, 2021

TABLE OF CONTENTS
Page
INTRODUCTORY SECTION:

Letter of Transmittal ................................................................................................................... i List of Principal Officials ............................................................................................................ xii Organizational Chart ................................................................................................................ xiii Awards for Financial Reporting ................................................................................................ xiv FINANCIAL SECTION:

Independent Auditor's Report......................................................................................................1 Management's Discussion and Analysis .....................................................................................4 Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position....................................................................................................17 Statement of Activities.........................................................................................................18 Fund Financial Statements:

Balance Sheet – Governmental Funds................................................................................20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .................................................................................................22 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ........................................................................................................23 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ..............................25 Statement of Fiduciary Net Position ....................................................................................26 Statement of Changes in Fiduciary Net Position..................................................................27 Index to Notes to Financial Statements...................................................................................28 Notes to Financial Statements ................................................................................................29 Required Supplementary Information:

Schedule of Changes in Net OPEB Liability and Related Ratios.............................................71 Schedule of OPEB Contributions ............................................................................................72 Schedule of City’s Proportionate Share of the Plan’s Net Pension Liability…………… ...........73 Schedule of Pension Contributions .........................................................................................75 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:

General Fund....................................................................................................................77 Federal Home Loan Reuse Fund......................................................................................78 Capitola Housing Successor Fund ....................................................................................79 RTC Streets Fund.............................................................................................................80 Notes to Required Supplementary Information .......................................................................81 75 Item 8 C.

City of Capitola
Comprehensive Annual Financial Report
Year Ended June 30, 2021
TABLE OF CONTENTS – Continued
Page
Supplementary Information:

Budgeted Other Major Funds:

Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:

Capital Projects Fund ...................................................................................................82 Library Fund .................................................................................................................83 Non-Major Governmental Funds:

Combining Balance Sheet ..................................................................................................86 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .......................................................................................................90 Budgeted Non-Major Funds:

Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:

Road Rehab Fund ....................................................................................................94 Supplemental Law Enforcement Fund..........................................................................95 Gas Tax Fund ..........................................................................................................96 Wharf Fund..........................................................................................................97 Parking Reserve Fund..................................................................................................98 Technology Fees Fund........................................................................................... 99 PEG Cable TV Access Fee Fund ............................................................................... 100 Capitola Village and Wharf BIA Fund...................................................................... 101 CDBG Fund ........................................................................................................... 102 Affordable Housing Fund ........................................................................................ 104 Restricted TOT Fund .............................................................................................. 105 Beach and Village Lot II Debt Financing Fund ............................................................ 106 Pacific Cove Debt Financing Fund........................................................................... 107 76 Item 8 C.

City of Capitola
Comprehensive Annual Financial Report
Year Ended June 30, 2021
TABLE OF CONTENTS – Continued
Page

STATISTICAL SECTION
ACFR Statistical Section - Table of Contents ...................................................................108 Financial Trends Information:

Net Position by Component .......................................................................................110 Changes in Net Position ............................................................................................111 Fund Balances of Government Funds ........................................................................113 Change in Fund Balances of Governmental Funds ...................................................115 General Revenues by Source ....................................................................................117 Revenue Capacity Information:

Net Taxable Assessed Value History..........................................................................118 Assessed Value of Taxable Property..........................................................................119 Direct and Overlapping Property Tax Rates ..............................................................120 Top Ten Property Taxpayers .....................................................................................121 Property Tax Levies and Collections .........................................................................122 Top 25 Sales Tax Taxpayers......................................................................................123 Debt Capacity Information
Ratios of Outstanding Debt by Type...........................................................................124 Ratios of General Bonded Debt Outstanding .............................................................125 Direct and Overlapping Debt ......................................................................................126 Legal Debt Margin Information ...................................................................................127 Pledged - Revenue Coverage ....................................................................................128 Demographic and Economic Information:

Demographic and Economic Statistics ..................................................................... 129 Principal Employers - Top Ten ...................................................................................130 Full-Time and Part-Time City Employees by Function ...............................................131 Operating Information:

Operating Indicators by Function................................................................................132 Capital Asset Statistics by Function............................................................................133 77 Item 8 C.

INTRODUCTORY SECTION
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i
December 30, 2021
Honorable Mayor,
Members of the City Council, and
Citizens of the City of Capitola
SUBJECT: Annual Comprehensive Financial Report - June 30, 2021

REPORT PURPOSE AND ORGANIZATION
State law requires the accounts and fiscal affairs of all municipal entities be audited annually by an independent certified public accountant. The City's independent auditor Eide Bailly LLP has audited the City's financial statements and issued an unmodified opinion that the financial statements for fiscal year ended June 30, 2021, are fairly presented in conformity with generally accepted accounting principles (GAAP). This opinion, along with the basic financial statements of the City, are hereby submitted as the Annual Comprehensive Financial Report (ACFR) for the City of Capitola for the fiscal year ended June 30, 2021 and included in the financial section of this report in fulfillment of the above requirement.

The independent audit of the financial statements is also typically conducted in conjunction with the federally mandated Single Audit. The standards governing the Single Audit require the independent auditor to report on items beyond fair presentation of the financial statements, including internal controls and compliance with legal requirements involving the administration of federal awards. A Single Audit Report on Federal Award Programs was not required or prepared in fiscal year 2021 because the City had less than $750,000 in federal grant expenditures. The City’s last required Single Audit Report is available for the year ended June 30, 2012.

This report consists of City management's representations concerning the finances of the City of Capitola. Consequently, management assumes full responsibility for completeness, accuracy of data, and fairness of presentation, including all footnotes and disclosures. Management believes the data presented are accurate in all material respects and that they are presented in a manner designed to fairly set forth the financial position and results of operations of the City. To provide a reasonable basis for making these representations, City management has established a comprehensive framework of internal controls designed both to protect the City's assets from loss, theft, or misuse and to compile sufficiently reliable information for the preparation of the City's financial statements in conformity with GAAP. Because the cost of internal controls should not exceed their benefits, the City's internal controls have been designed to provide reasonable rather than absolute assurance that the financial statements are free of material misstatements. The audit provides users with reasonable assurance that the information presented is free from material misstatements. As management, we assert that to the best of our knowledge, this financial report is complete and reliable in all material respects. 80 Item 8 C.
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GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found in the Financial Section of this document, immediately following the report of the independent auditor.

CITY OF CAPITOLA PROFILE
The City of Capitola is a small coastal community located in Santa Cruz County that occupies approximately two square miles and serves a population of about 10,250. Located on the northern edge of Monterey Bay, approximately 35 miles north of Monterey and 75 miles south of San Francisco, Capitola enjoys a rich history and offers residents diverse recreational opportunities.

Capitola Village is located along a sandy beach with expansive views of Monterey Bay and is home to numerous craft galleries, boutiques, and restaurants. The City is host to numerous events, including the Capitola Beach Festival, Capitola Art and Wine Festival, and the annual Wharf to Wharf race.

Named the Most Walkable Beach Town in the United States by Elle Décor Magazine, voted one of the best beach locations on the California Coast by Sunset Magazine, and recently named one of the “9 Most Unspoiled Vacation Spots” by the Fishing Booker website, Capitola offers fishing and boating, along with beachfront restaurants, shops and entertainment. Other visitor attractions include the Capitola Historical Museum, Capitola Wharf, and the Capitola Mall.

Although Capitola is considered a central coast beach destination, it is also one of two major retail centers in Santa Cruz County. The Capitola Mall, combined with Brown Ranch and 41st Avenue businesses, is the retail hub of the central county. With major retailers such as Target, Macy’s, Kohl’s, CVS, Ross, and Bed Bath and Beyond, Capitola is a “net regional retail provider” with retails sales several times higher than the retail demand of Capitola city residents. The City also has two major car dealerships.

Capitola is also fortunate to have outstanding educational opportunities. In addition to having New Brighton Middle School within its City limits, both Cabrillo Community College and the University of California, Santa Cruz, are within eight miles of the City. According to the U.S. Census Bureau’s 2010 data, 94% of Capitola residents are high school graduates and 39% possess a Bachelors’ Degree or higher-level degree.

Form of Government
Capitola is a General Law City, which was incorporated on January 11, 1949. The City is subject to the framework and procedures established by State Law and operates under the Council – City Manager form of government. The Council is comprised of four Council Members and a Mayor, all of whom are directly elected by the citizens. The Council Members serve four-year staggered terms; and the Mayor and Vice-Mayor are elected annually by the Council. The Council has the authority to establish all laws and regulations with respect to municipal affairs, subject only to the limitations of the City Municipal Code and the State legislation.

The City Council appoints a City Manager to serve as the City’s chief administrative officer. The City Manager provides direction and leadership to all City departments and ensures that all City Council policies are implemented.
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City Services
The City provides police protection, street, park and facilities maintenance, recreation, building, planning, zoning, administrative, and financial services for Capitola. Independent special districts provide fire protection, water, sewer, and limited drainage services.

The ACFR includes all financial activities of the City and the Successor Agency to the former Redevelopment Agency of the City of Capitola; two separate legal entities. City Council members also serve as the governing board members of the Successor Agency and the City Manager serves as its Executive Director. Financial activities of the Successor Agency are also subject to approval by an independent Oversight Board.

Financial data for all funds through which services are provided by the City have been included in this report based on the criteria adopted by the Government Accounting Standards Board (GASB), which is the authoritative body in establishing United States GAAP for local governments.

Budgetary Policy and Control
The City’s budgetary records are maintained on a modified accrual basis. Revenues are recorded when measurable and available and expenditures are recorded when goods or services are received, and the liability incurred. The City produces a two-year annual budget, which serves as the foundation for the City of Capitola’s financial planning and control. Based on the City’s Financial Management Policies, the City is required to maintain a balanced operating budget; along with using one-time revenues to fund non-recurring expenditures. In the budget development process, the City references the following Budgeting Principles to identify key projects and goals: Fiscal Policy, Public Service, and Public Improvements.

In accordance with the City’s Municipal Code, the budget is adopted by resolution on or before June 30th for the ensuing fiscal year. Expenditures authorized in the final budget resolution are appropriated at the budget unit level. Capital projects are budgeted at the individual project level.

City Council may appropriate, amend, or transfer funds by an affirmative vote of three or more Council members at any regular or special Council meeting.

The Successor Agency’s two-year budget is incorporated into the City’s budget process; however, all obligations are subject to annual approval by the County Oversight Board and the California State Department of Finance.

Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the environment in which the City operates. 82 Item 8 C.
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Local Economy
The City of Capitola had seen the local economy level off after several years of growth. This appeared to be the case again in FY 2020, however with the onset of the global Coronavirus Pandemic (COVID-19) in March 2020 city revenues were severely impacted during the fourth quarter of FY 2020 and throughout FY 2021. The City acted promptly in response to COVID-19 by reducing revenue projections and eliminating all non-essential expenses beginning in midMarch 2020. Additionally, the City froze six vacant positions and began negotiating concessions with all labor groups to address the projected revenue shortfalls. The fiscal impacts from COVID19 were not as severe as originally projected and concessions made with the labor groups were eliminated Dec. 27, 2021, and some expenditures that were eliminated were restored, however, the six frozen vacant positions remained frozen for FY 2021 and were not restored in the Adopted FY 2022 Budget. Due to the proactive and conservative fiscal management by the City, General Fund operations resulted in a net increase in fund balance of approximately $3.6 million.

Revenues were $2.0 million above the amended FY 2021 budget and $2.0 million above the prior year while expenses were $789,400 below the amended budget and were $2.9 million lower than the prior year. With all the unknown fiscal impacts related to COVID-19, a conservative approach was taken in developing the City’s two-year budget plan, with an emphasis placed on navigating through the fiscal impacts of COVID-19 while maintaining core City services without sacrificing the financial future of the City.

The three major sources of General Fund revenue include Sales Tax, Property Tax, and Transient Occupancy Tax (TOT). These three revenues account for approximately 75% of all General Fund Revenues.

Sales tax is the City’s largest source of revenue, accounting for just under 50% of the General Fund Revenues. The City sales tax consists of 1% Bradley Burns, 0.25% Capitola District Tax (Measure O), and a 0.25% Capitola District Tax (Measure F) that is effective from January 1, 2018 through December 31, 2027. In FY 2020/21, the combined sales tax receipts of $7.71 million were $497,847 (6.91%) higher than budgetary estimates and $264,603 (3.56%) above the prior year primarily due to the effects of COVID-19.

Sales tax receipts are volatile and reflect the current local, state, and national economic condition.

Sales Tax collections for the City of Capitola increased year over year after decreasing in the prior year. In FY 2009-10, the economy began to slowly show signs of recovery however sales tax revenues have been relatively flat since FY 2015-16. The following chart shows sales tax trends over the past ten years as well as demonstrates the proportional share of District and Bradley Burns Sales taxes.
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Capitola’s second major source of revenue is property tax. In FY 2019/20 the General Fund received $2.45 million in property tax receipts, prior to inclusion of Documentary Transfer Tax and Residual RDA distributions. This base amount was approximately $91,172 more than the prior year however was $11,121 below the final budgeted amount. Over the last five fiscal years the City has averaged approximately 6% growth in annual property tax collections however in FY 2019/20 the increase was approximately 3.9% over the prior year.

Due to the dissolution of the Capitola Redevelopment Agency (RDA), the RDA’s tax increment revenues are distributed to the Successor Agency Redevelopment Property Tax Trust Fund (RPTTF) in amounts that are only sufficient to fund obligations approved by the independent Oversight Board. Before the RDA dissolution, the City and RDA received over $2 million a year.

FY 2019-20 marked the first year since the dissolution of the RDA that the City did not receive residual distributions of RPTTF revenues. The end of the Required Obligation Payment Schedule (ROPS) is in June 2021 and the City is utilizing approximately $248,000 of existing fund balance to meet the remaining obligations.

The City’s property tax revenues do not respond to economic conditions as quickly as sales tax revenues. This delayed response, along with less volatility, assists the City in adjusting to economic downturns by lessening the immediacy of revenue loss. The following chart includes Property Tax Revenue, as well as Property Tax In-Lieu of Vehicle License Fees. Based on the historical data, property tax revenues have remained relatively consistent due to appreciating property values. Staff anticipates this trend, while showing signs of slowing, will continue into the next fiscal year.
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Transient occupancy tax (TOT) represents approximately 10% of General Fund revenues.

While tourism and economic growth have remained stable, TOT revenue remained flat from FY 2015-16 through FY 2017-18 due to limitations on hotel and vacation rental room inventory. In November 2018 Capitola voters approved an increase in the TOT rate from 10% to 12% with

0.40% dedicated to local business groups and 0.35% dedicated to Early Childhood and Youth programs. While TOT revenues were the most impacted revenues due to COVID-19 and saw a significant reduction during the fourth quarter of FY 2019-20. The chart below provides a 10- year history of TOT revenues.
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Long‐term Financial Planning
In the past, the City has made strategic decisions to help maintain resiliency in difficult economic times. As a continuation of this practice, the City is focusing on the following planning measures:

Planning for Sales Tax Revenues
The City of Capitola sales tax revenue consists of 1% Bradley Burns Sales tax and two 0.25% District taxes. The first District sales tax, Measure O, is a permanent 0.25% sales tax that was approved by voters in November 2012 and went into effect April 1, 2013. Measure O was implemented with the goal of replenishing reserves, funding CIP projects, and providing support for public safety initiatives. The City developed a five-year plan to ensure that Measure O funds were applied to their stated priorities. Each of the district taxes collect approximately $1.0 million in General Fund revenues annually.

The second District tax, Measure F, was passed by voters in 2016 to extend Measure D, a temporary quarter of one percent sales tax, for an additional ten years. The City is committed to using this funding source to protect the wharf and beach from storms and rising sea levels, maintain police services, and improve sidewalks, parks, and bike safety. The adopted FY 2020- 21 budget continued implementing these commitments as Measure F went into effect on January 1, 2018.

Replenishing and Increasing Reserves
The City has been proactive in establishing a stable reserve level. A portion of Measure O revenues were set aside to replenish the Contingency and Emergency Reserve Funds. The City’s reserves were depleted in March of 2011 when an underground storm drain failed, which resulted in damage to the Pacific Cove Mobile Home Park, City Hall, and portions of Capitola Village. As a result, the City paid $1.4 million in flood related costs over a two-year period and assumed a $2.39 million debt to relocate residents of the City-owned Pacific Cove mobile home park. This incident reduced the City’s reserves from $1.87 million in FY 2009-10 to $561,000 in FY 2011-12.

This incident, along with the economic downturn, emphasized the need to review reserve policy levels to ensure the City was maintaining a sufficient balance to effectively manage unforeseen events.

In FY 2012-13 the City increased the Emergency Reserve funding level from 5% to 10% of operating expenditures and the Contingency Reserve funding level from 10% to 15% to ensure sufficient reserves are available to offset the effects of the next economic downturn and unforeseen emergencies.

In FY 2015-16 the City implemented a PERS Contingency Reserve Fund to ensure future funding availability for potential CalPERS contribution increases. The initial funding came from a $300,000 transfer from the General Fund. The City invested the funds with Public Agency Retirement Services (PARS) in a moderately conservative trust fund that allows for a higher rate of return.

During FY 2017-18, the City put an additional $500,000 in the PERS trust fund. 86 Item 8 C.
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Maintain the Facilities Reserve Fund
The City created a Facilities Reserve Fund in FY 2014-15. The purpose of the Facilities Reserve Fund is to create a mechanism to fund future facility maintenance projects. Examples of projects that could be financed through the fund include replacing roofs, painting exteriors, replacing mechanical/electrical equipment, and maintenance of adjoining parking spaces. The Facilities Reserve Fund ended FY 2020/21 with a cash balance of $522,830. The FY 2021-22 budget does not include any funding into the Facilities Reserve Fund to offset anticipated expenditures of $140,000 as the City continues to manage the fiscal impacts from CVOID-19. Staff anticipates restoring annual contributions to the Facilities Reserve in FY 2022-23.

Funding Other Post-Employment Benefits Obligation (OPEB) The City created an OPEB trust fund in FY 2013-14. Before prefunding the OPEB Liability, the City historically contributed the Minimum Employer Contribution required under the Public Employees’ Medical and Hospital Care Act (PEMHCA). The transition from “pay as you go” financing to full funding, reduced the City’s long-term liability from $1,011,800 to $657,500. In May 2014 the Actuarial Standards Board adopted standard number 6 (ASOP 6) requiring the calculation of the “Implicit Rate Subsidy”. The implicit rate is an inherent subsidy of retiree healthcare costs by active employee healthcare costs when healthcare premiums paid by retirees and actives are the same. This was a highly controversial standard and the City’s previous actuary did not include the calculation in prior OPEB actuarial valuations.

Following the advice of the City’s auditors as well as the new Actuarial Consultant, the current OPEB Actuarial Valuation now includes the Implicit Rate Subsidy calculation. This one change caused the Unfunded Actuarial Accrued Liability to increase $1,201,442 increasing the balance from $584,737 on June 30, 2019 to $1,572,208 on June 30, 2020. In the FY 2020-21 Adopted Budget the City reduced funding to the OPEB Trust by $65,000 due to the financial impacts related to COVID-19. The City continued to make the “pay as you go” payments for retiree healthcare premiums and has restored funding to the OPEB Trust to the Annual Required Contribution amount of $60,250 in FY 2021-22.
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Controlling Personnel Costs
Being a service-oriented organization, personnel costs make up the largest General Fund expenditure. The personnel budget comprises approximately 69% of the General Fund.

In FY 2018-19 all bargaining units agreed to multi-year contracts continuing with the cost sharing of CalPERS contributions originally negotiated in FY 2013-14, cost of living adjustments (COLA) based on the Consumer Price Index, and Flex Health Care spending increases. All bargaining units, with the exception of the Police Officers Association (POA), agreed to new two-year contracts through June 30, 2020 while the POA agreed to a new three-year contract through June 30, 2021. Due to COVID-19 the City negotiated concessions with all bargaining units that included reduced salaries from June 26, 2020 through Dec. 26, 2020 and extended all agreements through June 30, 2021.

Recent changes in CalPERS’ risk pools have had a significant negative impact on the City. These changes will result in annual increases in CalPERS costs of 16.5% in FY 2021-22, 11.3% in FY 2022-23, and projected average increases of 5% over the following four years. Understanding that existing employees were already contributing more than the CalPERS-designated “employee share,” the City’s current labor contracts set future employee CalPERS contribution rates at a fixed percentage of compensation to reduce the impact on employees.

The number of positions city-wide decreased 7.25 FTE in FY 2020-21 due to freezing of vacant positions in order to mitigate the fiscal impacts from COVID-19. The total city-wide authorized FTE’s in FY 2020-21 was 67.75 with 60.50 positions budgeted.

Major Initiatives
Capitola Mall Redevelopment
The City has continued to seek redevelopment opportunities to update and upgrade the City’s major retail corridor and mall area. Upgrades to the Capitola Mall are now anticipated with the April 2016 purchase of the Mall by Merlone Geier Partners, a private real estate investment company focused on the acquisition, development, and redevelopment of retail and retail-driven mixed-use properties on the West Coast. The City received a development application from Merlone Geier Aug. 27, 2019, however, due to COVID-19 the project has been put on hold by the developer.

Funding Measure F Commitments
In November 2016 voters of Capitola approved extending an existing quarter of one percent sales tax for an additional ten years. The city has committed this sales tax revenue to protecting the beach and wharf from rising sea levels and storms, supporting bike and pedestrian safety projects, and maintaining police staffing levels.

While the FY 2020-21 adopted budget did not include the allocation of Measure F funding to the Capital Improvement Project (CIP) fund due to COVID-19, the flume reconstruction and jetty reconstruction projects were fully funded and completed in FY 2020-21. Work began on these projects in FY 2017-18 along with the use of Measure F funds to replace the 20-year-old front end loader for beach maintenance. Additionally, the City was awarded a $2 million grant from the State for the Wharf project with construction anticipated to start in late FY 2022-23. 88 Item 8 C.
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New Capitola Branch Library
In 1999 the City of Capitola built a temporary 4,320 square foot library at the corner of Clares Street and Wharf Road. The City’s former RDA entered a contract with the County to construct a permanent library and contributed $2.67 million to a County-held trust fund that would be used to help build the Capitola library. Measure S, which was approved by voters on June 7, 2016, will provide an additional $10 million which is $2 million more than originally anticipated. The current project budget is $15.15 million and is fully funded by the above-mentioned former RDA and Measure S funds as well as General Fund transfers and fundraising by the Capitola Library Capital Campaign Committee. The City broke ground on the new Library on November 9, 2018 and opened to the public on June 12, 2021 with the project coming in under budget by approximately $500,000.

Relevant Financial Policies
Financial Management Policies
The City has developed comprehensive Financial Management Policies to assist with the management of the operating and capital budgeting process and to standardize and rationalize the issuance of debt. This document focuses on Capital Budgeting and Reserves – Issuance of Debt, Operating Budgeting and Reserves and Other Polices, which addresses conformance with Generally Accepted Accounting Principles (GAAP), and Internal Borrowings. This policy requires the City to maintain a balanced operating budget; along with the use of one-time revenues to fund non-recurring expenditures.

A key component of this policy focuses on reserve requirements. Each fiscal year, the final adopted General Fund budget is required to have a Contingency Reserve appropriation equal to 15% of the General Fund operating expenditures and an Emergency Reserve appropriation equal to 10% of the General Fund operating expenditures. The purpose of the Contingency Reserve is to provide a prudent level of financial resources to protect against temporary revenue shortfalls, unanticipated operating costs, and/or to meet short-term cash flow requirements. The purpose of the Emergency Reserve Fund is to protect against one-time significant costs that may arise from major unpredictable emergency events.

Investment Policy
The City’s Investment Policy governs the investment of temporary cash excesses. Investments are prioritized based on the following order of importance: Safety of principal, liquidity, and yield.

Various low risk investments, such as U.S. Treasury bills are permitted. During the year, all excess cash balances, which were not held by a fiscal agent, were invested in the California Local Agency Investment Fund (LAIF) and U.S. Treasury. At no time during the year was the City's cash invested in a manner that violates this policy.
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AWARD FOR EXCELLENCE IN FINANCIAL REPORTING
The Government Finance Officers Association of the United States and Canada (GFOA) also awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Capitola’s ACFR for the fiscal years ended June 30, 2012 through June 30, 2020. This Certificate of Achievement is a prominent national award recognizing conformance with the highest standards for preparation of State and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Annual Comprehensive Financial Report whose contents conform to program standards. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A GFOA Certificate of Achievement is valid for a period of only one year. The City of Capitola believes the FY 2020 ACFR conforms to the Certificate of Achievement program requirements and will be submitting it to GFOA for review.

Prior to receiving the GFOA Award, the City received the Certificate for Outstanding Financial Reporting for its Annual Comprehensive Financial Report (ACFR) by the California Society of Municipal Finance Officers (CSMFO). This award was received consistently since FY 1999/00.

Once a GFOA Award is received, CSMFO prohibits cities from applying and receiving both awards.

ACKNOWLEDGEMENTS
The preparation of this report would not have been possible without the efficient and dedicated services of the entire Finance Department staff. I would like to also express our appreciation to the partners and staff of our auditors for their assistance and support.

I wish to express my thanks and appreciation to the Mayor and members of the City Council for their unfailing leadership and support in planning and conducting the financial operations of the City in a responsible and progressive manner.

Respectfully submitted,
Jamie Goldstein
City Manager
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CITY OF CAPITOLA

LIST OF PRINCIPAL OFFICIALS
FOR
FISCAL YEAR ENDED JUNE 30, 2021

ELECTED OFFICIALS
Mayor – Yvette Brooks
Vice Mayor – Sam Storey
Council Member – Jacques Bertrand
Council Member – Margaux Keiser
Council Member – Kristen Petersen

APPOINTED OFFICIALS
City Manager – Jamie Goldstein
City Attorney – Burke, Williams & Sorensen, LLP

DEPARTMENT HEADS/ADMINISTRATORS
Assistant to the City Manager – Larry Laurent
Chief of Police – Terry McManus
City Clerk – Chloe Woodmansee
Community Development Director – Katie Herlihy
Finance Director – Jim Malberg
Public Works Director – Steve Jesberg
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CITY OF CAPITOLA

ORGANIZATIONAL CHART
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CITY OF CAPITOLA
GFOA Awards
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Capitola
California
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
Executive Director/CEO
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FINANCIAL SECTION
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INDEPENDENT AUDITOR’S REPORT
The Honorable City Council
City of Capitola, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Capitola, California (City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.

Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control.

Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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4040 Campbell Ave., Ste. 200 | Menlo Park, CA 94025-1053 | T 650.522.3400 | F 650.645.7393 | EOE 1 96
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2 Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2021, and the respective changes in financial position, for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis on pages 4 through 16, Schedule of Changes in Net OPEB Liability and Related Ratios, Schedule of OPEB Contributions, Schedule of City’s Proportionate Share of the Plan’s Net Pension Liability, Schedule of Pension Contributions, Schedules of Budgetary Comparison Schedules for the General Fund and each Major Special Revenue Fund, on pages 71 through 80, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements and schedules, are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated in all material respects in relation to the basic financial statements as a whole.

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and, accordingly, we do not express an opinion or provide any assurance on them.
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3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 30, 2021, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Menlo Park, California
December 30, 2021
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4 Management’s Discussion and Analysis
As management of the City of Capitola, California, we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2021. Readers are encouraged to consider the information presented here in conjunction with the accompanying letter of transmittal and the basic financial statements.

FINANCIAL HIGHLIGHTS
Government-Wide Highlights
• Assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $33.1 million (net position).
• Total net position increased by $4.1 million from the prior year. • The City’s net capital assets increased by $4.5 million from the prior year. • The City’s long-term liabilities increased by $2.2 million from the prior year. See Notes 6 and 10 for details.

Fund Highlights
• The City’s governmental funds reported combined fund balances of $25.2 million, a increase of $1.2 million from the prior year. Of the $25.2 million fund balance, $3.2 million is assigned and $8.9 million is unassigned, or available for spending at the City’s discretion. An additional $13.1 million is restricted for specific purposes by their providers through constitutional provisions or by enabling legislation in accordance with generally accepted accounting principles, which is further described in Note 1. • The $1.2 million increase in the combined governmental fund balances was primarily attributable to an increase in grant revenues relating to COVID 19. • The Unassigned fund balance for the General Fund was $8.9 million, or 68% of General Fund operating expenditures, a decrease of 1.0% compared to the prior year. 100
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5 OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as the introduction to the City’s basic financial statements. The City’s basic financial statements are comprised of the following three components: (1) Government-Wide Financial Statements, (2) Fund Financial Statements, and (3) Notes to the Financial Statements. This report also contains supplementary information in addition to the basic financial statements.

Government-Wide Financial Statements
The Government-Wide Financial Statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.

The Statement of Net Position presents information on all the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference between them reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows.

Therefore, some revenues and expenses reported in this statement will result in cash flows in future fiscal periods.

The Government-Wide Financial Statements distinguish functions of the City of Capitola that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, community development, culture and recreation, and transportation. The City does not have any business-type activities.

The Government-Wide Financial Statements include the City of Capitola (known as the primary government).

The Government-Wide Financial Statements can be found on pages 17-18 of this report.

Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities and objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and fiduciary funds.

Governmental Funds are used to account for the same functions reported as governmental activities in the government-wide financial statements. However, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City’s near-term financial requirements. 101
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6 Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental funds Balance Sheet and the governmental funds Statement of Revenues, Expenditures, and Changes in Fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City currently has six major governmental funds: General Fund, Federal Home Loan Reuse Fund, Capitola Housing Successor Fund, RTC Streets Fund, Library Fud and the Capital Projects Fund. Information is presented separately in the governmental fund Balance Sheet and in the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances. Data from the other governmental funds are combined into a single, aggregated presentation. The City maintains six internal service funds that provide goods and services solely for governmental activities. The activities are eliminated at the end of the fiscal year and any residual fund balances are combined with the General Fund.

The City adopts an annual appropriated budget for all funds. A budgetary comparison statement is provided for each of the City’s governmental funds to demonstrate compliance with this budget. This comparison for the General Fund and the Capital Projects Fund is presented in the Required Supplementary Information section of this document. The budgetary comparison statements for Non-Major Governmental Funds and Fiduciary Funds are presented in the Supplementary Information Section of this report. All budget amendments require City Council approval for amounts over $25,000.

The basic governmental fund financial statements can be found on pages 19-27 of this report.

Fiduciary Funds are used to account for resources held for the benefit of parties outside of the government. Fiduciary funds are not reflected in the government-wide financial statements because these resources are not available to support the City’s programs. The City is responsible for ensuring that the assets reported in these funds are used for their intended purpose. The Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position are presented in the Basic Financial Statement section of this document. The Private Purpose Trust Fund includes the Successor Agency to the Capitola Redevelopment Agency.

Notes to the Financial Statements
The Notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the basic financial statements can be found on pages 29-70 of this report.

Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information including the City of Capitola’s net other postemployment benefits liability and contributions for the Healthcare Plan, the schedule of the City’s proportionate share of the plans’ net pension liability and related ratios, the schedule of plan contributions, and budget to actual comparisons, as noted in the table of contents.
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7 GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve as a useful indicator of the City’s financial position. For the fiscal year ended June 30, 2021, assets and deferred outflows exceeded liabilities and deferred inflows of resources by $33.1 million.
2021 2020
Current and other assets $ 26,419,144 $ 26,337,682
Capital assets 33,947,364 29,448,944
Total Assets 60,366,508 55,786,626
Total Deferred Outflows of Resources 6,261,262 6,366,417 Other liabilities 1,222,910 2,331,255
Long term liabilities
Due in one year 496,959 175,959
Due in more than one year 30,221,897 28,384,457
Total Liabilities 31,941,766 30,891,671
Total Deferred Inflows of Resources 1,565,469 2,287,504 Net Position:

Net investment in capital assets 32,052,715 27,367,459
Restricted 12,055,063 14,492,914
Unrestricted (10,987,243) (12,886,505)
Total Net Position $ 33,120,535 $ 28,973,868
Governmental Activities
The largest portion of the City’s net position, $32.1 million, is reflected in its investment in capital assets (e.g., land, buildings, machinery, equipment, and infrastructure), less any related outstanding debt used to acquire those assets. The City uses these capital assets to provide services to its citizens. Consequently, these assets are not available for future spending.

Although the City of Capitola’s investment in capital assets is reported net of related debt, it should be noted that resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used. An additional portion of the City’s net position, $12.1 million, represented resources that were subject to external restrictions on how they may be used. The remaining negative $11.0 million of the City’s net position, were “unrestricted,” and may be used to meet the government’s ongoing obligations to citizens and creditors. The unrestricted portion of net position is negative mainly due to the City’s $27.8 million net pension and OPEB liabilities.

Further analysis is provided in the governmental activities section of this report. 103
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8 Governmental Activities
Governmental activities increased the City of Capitola’s net position by $4.1 million. The increase is due primarily to COVID 19 grants and the inflow of bond funds related to construction of the new Capitola Library. The table below shows the changes between fiscal years 2020 and 2021:
2021 2020
Revenues
Program revenues:

Charges for services $ 2,418,654 $ 2,875,646
Operating grants and contributions 3,124,803 500,949
Capital contributions and grants 1,167,294 7,357,094
General revenues:

Taxes:

Property taxes 2,793,549 2,711,883
Franchise taxes 561,969 556,708
Sales and use taxes 7,705,348 7,440,745
Transient occupancy taxes 1,529,015 1,262,816
Business license taxes 291,590 329,711
Motor vehicle in-lieu, unrestricted 232,475 233,459
Investment income, unrestricted 335,472 699,199
Miscellaneous revenue 203,806 16,383
Total revenues 20,363,975 23,984,593
Expenses
General government 3,736,255 3,876,025
Public safety 7,236,650 7,809,697
Community development 978,887 1,097,095
Culture and recreation 1,106,517 1,792,763
Transportation 3,092,354 3,263,492
Interest and other charges 66,645 68,132
Total expenses 16,217,308 17,907,204
Change in Net Position 4,146,667 6,077,389
Beginning Net Position 28,973,868 22,896,479
Ending Net Position $ 33,120,535 $ 28,973,868
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9 Revenues
As shown in the Statement of Activities, revenues for FY 2021 totaled $20.4 million. The following graph includes program and general revenues and shows the percentage of governmental revenues by source:

Charges for Services,
12%
Operating
Contributions and
Grants, 15%
Capital Contributions
and Grants, 5%
Property Taxes,
14%
Franchise Taxes,
3%
Sales and Use
Taxes, 38%
Transient
Occupancy Taxes,
8%
Business License
Taxes, 2%
Motor Vehicle InLieu, Unrestricted,
1%
Investment Income, 2%
Miscellaneous
Revenue, 2%
Sources of Revenue
Revenues decreased by $2.8 million, or 15.1%, from the prior year. This was primarily due to the following factors:
• Operating grants and contributions – Increased $2,623,854 from the prior year. The increase was primarily due to recognizing COVID19 stimulus revenue. • Property taxes – Increased $81,666 over the prior year. This increase was consistent with property valuation increases provided by the County Auditor Controller. • Sales and use taxes – Increased $264,603 from the prior year primarily due the economic impacts related to COVID-19.
• Capital contributions and grants – Decreased $6,189,800 from the prior year. The decrease was primarily due to the inflow of county wide bond funds related to construction of the new Capitola Branch Library.
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10 Cost of Services
Based on generally accepted accounting principles, program revenues are derived directly from programs or from parties outside the reporting government’s taxpayers or citizenry. These revenues reduce the net cost of the function to be financed from the government’s general revenues. General revenues are all other revenues not categorized as program revenues and include taxes, unrestricted grants, contributions, investment earnings, and miscellaneous revenues. Total program revenues from governmental activities were $6.7 million.

The table below shows the costs and revenues of each of the City’s programs:

Total Cost of Program Net Cost of
Services Revenues Services
General government $ 3,736,255 $ 3,949,065 $ 212,810
Public safety 7,236,650 823,469 (6,413,181)
Community development 978,887 1,061,215 82,328
Culture and recreation 1,106,517 287,596 (818,921)
Transportation 3,092,354 589,406 (2,502,948)
Interest and other charges 66,645 - (66,645)
Totals $ 16,217,308 $ 6,710,751 $ (9,506,557)
A description of each program is listed below:
• General Government expenses comprise approximately 23.0% of all government expenses. This includes City Council, City Manager, City Clerk, City Attorney, Finance, Administrative Services, and Risk Management. These programs are offset by parking meter collections, grants, and administrative support fees. • Public Safety expenses comprise 44.6% of all governmental expenses. Revenues from fines, citations, grants, and animal services partially offset the cost of this program.
• Community Development expenses comprise approximately 6.0% of all governmental expenses. Various building and planning fees, along with grant revenues, assist in funding these program costs.
• Culture and Recreation expenses comprise 6.0% of all governmental expenses.

These programs are primarily funded through recreational classes and sports fees. • Transportation/Public Works expenses comprise 19.1% of all governmental expenses. This includes street, facility, park, and fleet maintenance. Costs are partially offset by motor vehicle fuel taxes and various fees. • Interest expense and other charges comprise 0.4% of all governmental expenses.

This interest expense is used to pay long-term debt obligations. 106
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11 Expenses
As shown in the Statement of Activities, expenses decreased from the prior year by 9.4%. This was primarily due to increased expenses in general government and public safety related to filling previously vacant positions and new recreation programs. It should be noted that due to COVID19 the City ended FY 2021 with six vacant positions.

A distribution of expenses by function is provided below:

General
Government, 23%
Public Safety, 45%
Community
Development, 6%
Culture and
Recreation, 7%
Transportation, 19%
Interest and Other
Charges, 0.4%
Functional Expense
Financial Analysis of the City’s Funds
As noted earlier, the City of Capitola uses fund accounting to comply with finance-related legal requirements.

Governmental Funds
The focus of the City of Capitola’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Capitola’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.
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12 At the end of the current fiscal year, the City of Capitola’s governmental funds reported a combined ending fund balance of $25.2 million, an increase of $1.2 million compared with the prior year. Of this fund balance, $13.1 million is externally restricted for particular purposes, $3.2 million is assigned by the management to multiple priorities, and $8.9 million is available for spending at the City’s discretion.

General Fund - The General Fund is the chief operating fund of the City of Capitola and had a fund balance of $11.3 million at year end. This represents an increase of $4.0 million, or 54.9% from the prior year. Approximately $8.9 million was unassigned fund balance, which was available for spending at the City’s discretion.

A reconciliation of the General Fund operating activities presented in the City budget documents to the Governmental General Fund Financial Statements is presented below:

City Budget
Documents
General Plan /
Open Space /
Donations
Emergency /
Contingency /
Facilities
Reserve / PERS
Internal
Service
Funds
Financial
Statements
Beginning Fund Balance $ 885,934 $ 145,722 $ 4,875,242 $ 1,398,185 $ 7,305,083 Revenues 16,212,083 62,338 98,692 938,013 17,311,126
Expenditures 11,985,507 5,437 - 1,126,721 13,117,665
Net Operating Difference 4,226,576 56,901 98,692 (188,708) 4,193,461 Financing Sources/Uses (766,383) - - 580,701 (185,682)
Net Change 3,460,193 56,901 98,692 391,993 4,007,779
Ending Fund Balance $ 4,346,127 $ 202,623 $ 4,973,934 $ 1,790,178 $ 11,312,862 It should be noted that the presentation of the General Fund for the City’s budget document is different than its presentation in the Governmental Fund Financial Statements. This is primarily due to the consolidation of the following funds for financial statement reporting purposes: General Fund, Contingency Reserve, PARS Contingency, Emergency Reserve, Facilities Reserve, General Plan Update and Maintenance, Stores, Information Technology, Equipment Replacement, Self-Insurance Liability, Workers Compensation, and Compensated Absences.

Federal Home Loan Reuse - The Federal Home Loan Reuse Fund receives loan payments from recipients of HOME Program loans and uses these revenues to fund additional affordable housing activities. All housing funded activities must be within the City and be in accordance with the Federal Home Reuse Guidelines. The revenues represent the receipt of principal and interest payments from loan recipients.
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13 Capitola Housing Successor - This fund is used to account for the assets of the former RDA Lowand Moderate-Income Fund and related housing activities. The funds are restricted in their use, reuse, and repayment pursuant to the original program requirements. As loan payments are received, the revenue generated provides a funding source for new housing assistance programs.

Additional information regarding this transition can be found in Note 14.

Capital Projects Fund – This fund is used to account for financial resources to be used for the acquisition or construction of public facilities. The total cost of a capital project is accumulated in a single expenditures account, which accumulates until the project is completed, at which time the fund ceases to exist.

GENERAL FUND BUDGETARY HIGHLIGHTS
A detailed budgetary comparison schedule for the year ended June 30, 2021, is presented as Required Supplementary Information following the notes to the financial statements. This information can be found on page 77. Key budgetary differences are provided below:

Revenues:

Actual revenues were above final budgeted amounts by $2,134,542. This was primarily due to the fiscal impacts as a result COVID-19 not being as severe as originally anticipated.

Expenses:

Expenses, prior to transfers, were $541,690 below the final budget total due primarily to the city reducing or eliminating all non-essential expenditures in response to COVID-19.

Appropriations:

Variances between the Original and Final budgets are primarily due to the inclusion of continuing appropriations for special projects from the prior year, mid-year adjustments to reflect updated revenue and expenditure estimates, and new funding appropriated for additional CIP projects. 109
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14 Fund Balance:

The General Fund’s ending fund balance was $11.3 million as of June 30, 2021. This amount was approximately $1.62 million less than the final budget projection based on the revenue and expenditure information noted above. A breakdown of General Fund balance is provided below.

An additional discussion of the City’s Contingency and Emergency Reserves can be found in the Financial Management Policies section of the Transmittal letter.

Fund balance:

Restricted:

Retiree benefits $ 1,015,553
Assigned:

Emergency reserve 1,374,206
Unassigned:

Contingencies 2,584,176
Unassigned 6,338,927
Total fund balance $ 11,312,862

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s value of governmental capital assets (net of accumulated depreciation) at the end of FY 2021 was $33.9 million. This investment in capital assets includes land, building, equipment, vehicles and infrastructure. The infrastructure classification typically includes roads, streets, sidewalks, medians, and bridges. The total increase in the City’s investment in capital assets for the current fiscal year was $4.5 million, or 15.3%. The increase is due to an increase in construction in progress related to the Capitola Library project. Additional information on the City of Capitola’s capital assets can be found in Note 4 to the financial statements.

Statement of Net Position
Asset Type
Land $ 4,883,789
Buildings and improvements 2,398,168
Equipment 4,217,845
Infrastructure 33,990,293
Construction in progress 16,580,592
Total Fixed Assets 62,070,687
Less Depreciation (28,123,323)
Capital Assets Net of Depreciation $ 33,947,364
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15 Long-Term Debt
The City’s long-term liabilities other than pension and OPEB at the end of FY 2021 was $2.9 million, a decrease of $.02 compared to FY 2020. The change is due to the scheduled principal payments during the fiscal year. An overview of all long-term obligations is presented below while comprehensive information can be found in Note 6.

Loans payable:

Capital lease payable - Pacific Cove financing $ 934,557 Capital lease payable - Beach and Village financing 960,092 Compensated absences 981,426
Total long-term debt $ 2,876,075
ECONOMIC FACTORS, NEXT YEAR’S BUDGETS AND RATES
On June 11, 2020, the Council adopted the FY 2020-21 Budget with a total appropriation of $17.9 million and a General Fund appropriation of $13.2 million. Adequate resources were projected to be available to fund the proposed expenditures. The General Fund budget reflects a conservative approach to mitigate the fiscal impacts associated with COVID-19 with projected sales tax revenues reduced by approximately 25%, transient occupancy tax revenues reduced 70% and property tax revenues increasing 4.0%. General Fund expenditures are budgeted to exceed General Fund revenues by approximately $140,807 as the City manages the impacts from COVID-19.

The City has negotiated contracts with the Police Officers Association through FY 2020-21 and all remaining bargaining units through FY 2019/20, which include fixed cost of living adjustments (COLA’s). All labor contracts were negotiated to extend through June 30, 2022 with employees making concessions to assist with managing through COVID-19. These concessions were ended Dec. 26, 2021. The City implemented caps on pension costs prior to the FY 2015-16 budget but modified the cap to ensure employees didn’t experience large decreases in net pay due to the projected contribution rate increases. Those caps remain in place under the new contracts.

Prospects for the Future
When the voters of Capitola passed Measure O, a quarter of one percent sales tax for a period of ten years, the City committed to replenishing reserves, maintaining police staffing levels and completing major street improvements during the five-year overlap with Measure D. Measure O sales tax revenues have been utilized to fully fund reserves at the City Council adopted funding levels as well as to increase street projects and maintain police department and public works staffing levels. Measure O expired on December 31, 2017.

In 2016 voters passed Measure F to extend the temporary quarter of one percent sales tax for an additional ten years. The City is committed to using this funding source to protect the wharf and beach from storms and rising sea levels, maintain police services, and improve sidewalks, parks, and bike safety. The adopted FY 2019/20 budget continued implementing these commitments as Measure F went into effect on January 1, 2018.
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16 Opportunities for development include the Capitola Branch Library, Wharf resiliency improvements, flume repair or replacement, and jetty improvements. The new Capitola Branch Library began construction in November 2018, the flume and jetty projects are scheduled to be completed during FY 2020-21 while the wharf project is currently in the permitting phase with an anticipated start date during FY2021-22. The funding for the new library comes from several sources, including the recently passed countywide Measure S, the former RDA trust fund held by the County, fundraising, and contributions from the General Fund for the remainder.

The City has successfully completed all current RDA dissolution and Assembly Bill 1484 (AB 1484) reporting and audit requirements and received approval for repayment of the $618,028 loan made to the former RDA. The final payment was made during FY 2018/19. Additional information can be found in the transmittal letter, as well as Note 14.

Local, State, and National Economy
In 2008 events in the local, state, and national economies led to a significant downturn in financial markets. In FY 2011/12, there were beginning signs of economic recovery, with increased sales tax, TOT, and an increasing demand for building/planning services. This trend continued through FY 2016/17, however, Capitola’s annual sales tax and transient occupancy tax leveled off in FY 2017/18. In November 2018 Capitola voters approved increasing the TOT rate from 10% to 12% with three-quarters of one percent dedicated to local business groups and Early Childhood and Youth programs. Increased home sales and prices have resulted in continued growth in property tax revenue which is consistent with statewide economic conditions.

In March 2020 both Santa Cruz County and the State of California issued Shelter-in-Place orders in response to COVID-19. This had severe negative impacts to City revenues at the end of the 3rd quarter and the entire 4th quarter of FY 2019-20. The City reduced expenditures to the greatest extent possible and negotiated concessions with all labor groups. These actions have helped navigate the fiscal impacts of COVID-19 since the onset of the pandemic and have enabled the City to maintain its reserve funds. Maintaining the reserve funds will assist the City in continuing to navigate the fiscal impacts related to COVID-19 while continuing to provide services to the residents of Capitola.

In early 2017 the CalPERS Board approved a decrease in the discount rate it uses to project future funding needs. The discount rate is the expected rate of return on investments. The decreased discount rate has a major impact to the City’s yearly unfunded actuarial liability (UAL) payment.

The City’s FY 2019/20 UAL payment is approximately $1.5 million which is a 25% increase over the prior year. Current projections show the City’s UAL increasing to $2 million by FY 2021/22 and $2.5 million by FY 2025/26. These rising pension costs will likely pose significant challenges in coming fiscal years.

Requests for Information
This financial report is designed to provide a general overview of the City's finances and to demonstrate the City's accountability for its fiscal activities to citizens, taxpayers, investors, creditors, and any other interested parties. If you have questions about this report or need additional information please contact the Finance Director at 420 Capitola Avenue, Capitola, California 95010.
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BASIC FINANCIAL STATEMENTS
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CITY OF CAPITOLA
Statement of Net Position
June 30, 2021
The accompanying notes are an integral part of these financial statements. 17 Governmental
Activities
ASSETS
Cash and investments $ 15,463,411
Ristricted cash and investments 1,015,553
Accounts receivable 1,409,218
Due from other governments 1,933,976
Loans receivable 6,596,986
Capital assets:

Non-depreciable:

Land 4,883,789
Construction in progress 16,580,592
Depreciable:

Equipment 4,217,845
Buildings and improvements 2,398,168
Infrastructure 33,990,293
Accumulated depreciation (28,123,323)
Total Assets 60,366,508

DEFERRED OUTFLOWS OF RESOURCES
Pension related 5,248,438
OPEB related 1,012,824
Total Deferred Outflows of Resources 6,261,262

LIABILITIES
Accounts payable 428,695
Accrued liabilities 199,933
Interest payable 29,843
Unearned revenue 203,914
Deposits payable 360,525
Noncurrent liabilities:

Due within one year 496,959
Due in more than one year 2,379,116
Net other postemployment liability due in more than one year 1,731,223 Net pension liability due in more than one year 26,111,558 Total Liabilities 31,941,766

DEFERRED INFLOWS OF RESOURCES
Pension related 1,402,461
OPEB related 163,008
Total Deferred Inflows of Resources 1,565,469

NET POSITION
Net investment in capital assets 32,052,715
Restricted for:

Public safety 99,061
Transportation 916,791
Community development 10,821,155
Culture and recreation 218,056
Unrestricted (10,987,243)
Total Net Position $ 33,120,535
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Item 8 C.

CITY OF CAPITOLA
Statement of Activities
Year Ended June 30, 2021
The accompanying notes are an integral part of these financial statements. 18 Net (Expense)
Revenue and
Change in
Net Position
Charges Operating Capital
for Grants and Grants and Governmental
Functions/Programs Expenses Services Contributions Contributions Activities Governmental activities:

General government $ 3,736,255 $ 1,057,228 $ 2,891,837 $ - $ 212,810 Public safety 7,236,650 509,108 195,319 119,042 (6,413,181) Community development 978,887 538,757 - 522,458 82,328
Culture and recreation 1,106,517 274,066 13,530 - (818,921) Transportation 3,092,354 39,495 24,117 525,794 (2,502,948) Interest and other charges 66,645 - - - (66,645)
Total Governmental Activities $ 16,217,308 $ 2,418,654 $ 3,124,803 $ 1,167,294 (9,506,557) General Revenues:

Taxes:

Property taxes 2,793,549
Franchise taxes 561,969
Sales and use taxes 7,705,348
Transient occupancy taxes 1,529,015
Business license taxes 291,590
Motor vehicle in-lieu, unrestricted 232,475
Investment income, unrestricted 335,472
Miscellaneous revenue 203,806
Total General Revenues 13,653,224
Change in Net Position 4,146,667
Net Position, Beginning of Year 28,973,868
Net Position, End of Year $ 33,120,535
Program Revenues
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Item 8 C.

GOVERNMENTAL FUNDS
19 Major Governmental Funds

GENERAL FUND
General Fund - Accounts for all financial resources except those to be accounted for in another fund. It is the general operating fund for the City.

SPECIAL REVENUE FUNDS
Federal Home Loan Reuse Fund - This fund accounts for housing loan principal and interest payments that will be available for a similar future federal program.

Capitola Housing Successor Fund - This fund is used to account for the assets of the former RDA Low and Moderate Income Fund, and related housing activities. The funds are restricted in their use, reuse, and repayment pursuant to the original program requirements. It is anticipated that as loan payments are received, the revenue generated would fund new housing activities.

Regional Transportation Commission (RTC) Streets
Santa Cruz County voters passed a 0.5 percent user sales tax to fund local roads. The RTC Streets fund will be utilized to increase the City’s street program.

CAPITAL PROJECTS FUND
Capital Projects Fund - Accounts for financial resources segregated for the acquisition of major capital facilities and equipment by the City.

Library Fund - This fund accounts for library project financial resources segregated for the acquisition of major capital facilities and equipment by the City.

Non-Major Governmental Funds
Other Governmental Funds - These funds constitute all other governmental funds that do not meet the major fund test of assets, liabilities and deferred inflows of resources, revenues or expenditures for the governmental funds. These funds consist of other Special Revenue Funds, and Debt Service Funds of the City for the year ended.
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Item 8 C.

CITY OF CAPITOLA
Governmental Funds
Balance Sheet
June 30, 2021
20 Federal Capitola
Home Housing
General Loan Reuse Successor RTC Streets
Assets
Cash and investments $ 7,981,484 $ 673,070 $2,107,141 $ 615,289 Restricted cash and investments 1,015,553 - - -
Accounts receivable 1,405,124 - - -
Due from other governments 1,879,404 526 966 29,758
Loans receivables - 3,907,842 2,308,469 -
Total Assets $ 12,320,551 $ 4,581,438 $4,416,576 $ 645,047

LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable $ 266,517 $ 381 $ 2,973 $ -
Accrued liabilities 199,933 - - -
Unearned revenue 203,914 - - -
Deposits payable 337,325 - - -
Total Liabilities 1,007,689 381 2,973 -
Fund Balances
Restricted 1,015,553 4,581,057 4,413,603 645,047
Assigned 1,374,206 - - -
Unassigned 8,923,103 - - -
Total Fund Balances 11,312,862 4,581,057 4,413,603 645,047 Total Liabilities and Fund Balances $ 12,320,551 $ 4,581,438 $4,416,576 $ 645,047 Funds
Special Revenue
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Item 8 C.
21 Non-Major
Capital Governmental
Projects Library Funds Totals
$ 1,891,474 $ 830,053 $ 1,364,900 $ 15,463,411
- - - 1,015,553
- - 4,094 1,409,218
- 1,248 22,074 1,933,976
- - 380,675 6,596,986
$ 1,891,474 $ 831,301 $ 1,771,743 $ 26,458,130
$ 42,270 $ 62,157 $ 54,397 $ 428,695
- - - 199,933
- - - 203,914
7,200 15,000 1,000 360,525
49,470 77,157 94,383 1,232,053
- 754,144 1,716,346 13,125,750
1,842,004 - - 3,216,210
- - (38,986) 8,884,117
1,842,004 754,144 1,677,360 25,226,077
$ 1,891,474 $ 831,301 $ 1,771,743 $ 26,458,130
Capital Projects
Fund
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CITY OF CAPITOLA
Reconciliation of the Balance Sheet of
Governmental Funds to the Statement of Net Position
June 30, 2021
The accompanying notes are an integral part of these financial statements. 22 Fund Balances of Governmental Funds $ 25,226,077
Amounts Reported for Governmental Activities in the Statement of Net Position are Different Because:

Capital assets net of depreciation have not been included in governmental fund activity:

Capital assets 62,070,687
Accumulated depreciation (28,123,323)
Pension related deferred inflows and outflows of resources are not reported in the governmental funds:

Deferred outflows 5,248,438
Deferred inflows (1,402,461)
OPEB related deferred inflows and outflows of resources are not reported in the governmental funds:

Deferred outflows 1,012,824
Deferred inflows (163,008)
Accrued interest payable for the current portion of interest due on long-term debt has not been reported in the governmental funds. (29,843) Long-term liabilities have not been included in the governmental fund activity:

Capital lease financing (934,557)
Lease-back financing (960,092)
Net pension liability (26,111,558)
Compensated absences (981,426)
Net OPEB liability (1,731,223)
Net position of governmental activities $ 33,120,535
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Item 8 C.

CITY OF CAPITOLA
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 2021
The accompanying notes are an integral part of these financial statements. 23 Non-Major
Capital Governmental
Projects Library Funds Totals
$ - $ - $ 225,061 $ 13,063,809
12,414 - 14,042 679,143
- - - 495,572
310,112 522,458 304,862 3,832,173
- - 121,225 1,535,529
- 20,208 125,126 335,472
42,864 89,520 11,086 422,277
365,390 632,186 801,402 20,363,975
- 784,093 (57,396) 3,021,275
- - 91,942 6,074,881
- - 93,957 859,080
- - 79,020 1,026,142
- - 165,752 2,529,300
1,028,373 3,500,416 - 5,410,009
- - 186,836 186,836
- - 66,645 66,645
1,028,373 4,284,509 626,756 19,174,168
(662,983) (3,652,323) 174,646 1,189,807
- - 280,968 323,968
(43,000) - (52,286) (323,968)
(43,000) - 228,682 -
(705,983) (3,652,323) 403,328 1,189,807
2,547,987 4,406,467 1,274,032 24,036,270
$ 1,842,004 $ 754,144 $ 1,677,360 $ 25,226,077
Fund
Capital Projects
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Item 8 C.
24 Non-Major
Capital Governmental
Projects Library Funds Totals
$ - $ - $ 225,061 $ 13,063,809
12,414 - 14,042 679,143
- - - 495,572
310,112 522,458 304,862 3,832,173
- - 121,225 1,535,529
- 20,208 125,126 335,472
42,864 89,520 11,086 422,277
365,390 632,186 801,402 20,363,975
- 784,093 (57,396) 3,021,275
- - 91,942 6,074,881
- - 93,957 859,080
- - 79,020 1,026,142
- - 165,752 2,529,300
1,028,373 3,500,416 - 5,410,009
- - 186,836 186,836
- - 66,645 66,645
1,028,373 4,284,509 626,756 19,174,168
(662,983) (3,652,323) 174,646 1,189,807
- - 280,968 323,968
(43,000) - (52,286) (323,968)
(43,000) - 228,682 -
(705,983) (3,652,323) 403,328 1,189,807
2,547,987 4,406,467 1,274,032 24,036,270
$ 1,842,004 $ 754,144 $ 1,677,360 $ 25,226,077
Fund
Capital Projects
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Item 8 C.

CITY OF CAPITOLA
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
Year Ended June 30, 2021
The accompanying notes are an integral part of these financial statements. 25 Net Change in Fund Balances - Total Governmental Funds $ 1,189,807 Amounts Reported for Governmental Activities in the Statement of Activities are Different Because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciationin the current period.

Capital outlays 5,410,010
Depreciation (911,590)
Repayment of debt service principal and capital lease liabilities are expenditures in the governmental funds but the repayment reduces long-term liabilities in the statement of net position. 186,836 Governmental funds report all contributions as expenditures in relation to Pensions and OPEB, however, in the statement of activities, OPEB and pension expenses are based on the change in these liabilities.

Change in net pension liability and related deferrals (1,203,337) Change in net OPEB (301,946)
Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

Change in compensated absences payable (223,113)
Change in net position of governmental activities $ 4,146,667 125
Item 8 C.

CITY OF CAPITOLA
Fiduciary Funds
Statement of Fiduciary Net Position
June 30, 2021
The accompanying notes are an integral part of these financial statements. 26 Private
Purpose
Trust Fund
ASSETS
Cash and investments $ 165,074
Total Assets 165,074

NET POSITION
Restricted in trust for successor agency and
other purposes 165,074
Total Net Position (Deficit) $ 165,074
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CITY OF CAPITOLA
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
Year Ended June 30, 2021
The accompanying notes are an integral part of these financial statements. 27 Private
Purpose
Trust Fund

ADDITIONS
RPTTF distributions $ -

DEDUCTIONS
Enforceable obligations 29,904
Change in Net Position (29,904)
Net Position, Beginning of Year 194,978
Net Position, End of Year $ 165,074
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Item 8 C.

City of Capitola
Index to Notes to Financial Statements
Year Ended June 30 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES................................................ 29 A. Description of Reporting Entity..................................................................................... 29 B. Basis of Presentation................................................................................................... 29 C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation....... 30 D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Equity........................................................................................... 31 1) Cash and Investments .......................................................................................... 31 2) Receivables and Payables..................................................................................... 32 3) Property Taxes....................................................................................................... 32 4) Capital Assets........................................................................................................ 33 5) Prepaid Items......................................................................................................... 33 6) Deferred Outflows/Inflows of Resources................................................................ 34 7) Compensated Absences........................................................................................ 34 8) Reclassification and Eliminations........................................................................... 34 9) Use of Estimates ................................................................................................... 34 10) Fund Equity ........................................................................................................... 35 11) Pension Plans........................................................................................................ 36 12) Other Post Employment Benefits........................................................................... 36 E. New Accounting Pronouncements……………………………………………………………36 NOTE 2 – CASH AND INVESTMENTS............................................................................................. 40 NOTE 3 – INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS......................................... 45 NOTE 4 – CAPITAL ASSETS............................................................................................................ 46 NOTE 5 – OTHER LONG-TERM RECEIVABLES.............................................................................. 47 NOTE 6 – LONG-TERM LIABILITIES................................................................................................ 47 NOTE 7 – FUND BALANCES ........................................................................................................... 49 NOTE 8 – RISK MANAGEMENT……………………………................................................................ 51 NOTE 9 – JOINT VENTURES........................................................................................................... 52 NOTE 10 – DEFINED BENEFIT PENSION PLANS (CALPERS)......................................................... 53 NOTE 11 – PUBLIC AGENCY RETIREMENT PLAN........................................................................... 62 NOTE 12 – OTHER POST EMPLOYMENT BENEFITS PLAN (OPEB)............................................... 63 NOTE 13 – COMMITMENTS AND CONTINGENT LIABILITIES.......................................................... 67 NOTE 14 – SUCCESSOR AGENCY TO THE FORMER CAPITOLA REDEVELOPMENT AGENCY.. 68 NOTE 15 – RISKS AND UNCERTAINTIES...................................................................................... 70 28 128
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
29 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Description of Reporting Entity
The City of Capitola (the City) was incorporated in 1949 under the laws of the State of California. Capitola is a General Law City and is subject to the framework and procedures established by State law. The City operates under the Council-City Manager form of government. The City provides police protection, street, park and facilities maintenance, recreation, building, planning, zoning, administrative, and financial services for Capitola.

Independent special districts provide fire protection, water, sewer, and limited drainage services.

B. Basis of Presentation
The City’s basic financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Governmental Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.

Government-Wide Financial Statements
The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues. All City activities are governmental; no businesstype activities are reported in the statements.

The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are expenses that are clearly identifiable with a specific program, project, function or segment. Program revenues of the City include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items that are properly not included among program revenues are reported instead as general revenues.

Fund Financial Statements
Separate financial statements are provided for governmental funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements.
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CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
30 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the providers have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collected within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers the majority of revenues to be available if they are collected within 60 days of the end of the current fiscal period. The City’s only exception to this timeline is Sales Tax receipts which are recorded as revenues if received within 90 days.

Expenditures generally are recorded when a liability is incurred, as under accrual accounting.

However, debt service expenditures, as well as expenditures related to compensated absences, pension and other postemployment benefits and claims and judgments, are recorded only when payment is due.

Property taxes, sales taxes, transient occupancy taxes, franchise taxes, and interest associated with the current fiscal period are all considered to be susceptible to accrual, and are therefore recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City.

The City reports the following major governmental funds:

General Fund
The General Fund accounts for all financial resources except those to be accounted for in another fund. It is the general operating fund for the City.

Federal Home Loan Reuse Fund
The Federal Home Loan Reuse Fund accounts for housing loans due to the City from the recipients of previous HOME Program grants. Receipts in the Home Program Reuse Fund are restricted to affordable housing activities in accordance with the federal HOME program re-use guidelines.

Capital Projects Fund
The Capital Projects Fund accounts for financial resources segregated for the acquisition of major capital facilities and equipment by the City.
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CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
31 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation, (continued)
Capitola Housing Successor Fund
This fund is used to account for the assets of the former RDA Low and Moderate Income Fund, and related housing activities. The funds are restricted in their use, reuse, and repayment pursuant to the original program requirements. It is anticipated that as loan payments are received, the revenue generated would fund new housing activities.

Library Fund
This fund accounts for library project financial resources segregated for the acquisition of major capital facilities and equipment by the City.

RTC Streets
This fund accounts for a 0.5 percent user sales tax revenues to fund local roads.

All remaining governmental are aggregated and reported as nonmajor funds.

The City also reports the following fiduciary funds:

Private Purpose Trust Funds
The Private Purpose Trust Fund accounts for the activities of the City of Capitola as Successor Agency to the Capitola Redevelopment Agency. The Successor Agency’s primary purpose is to expedite the dissolution of the former Redevelopment Agency’s assets in accordance with AB X1 26 and AB 1484.

D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity
1) Cash and Investments
Investments are reported in the accompanying balance sheet at fair value, except for nonparticipating certificates of deposit and investment contracts that would be reported at cost because they are not transferable and they have terms that are not affected by changes in interest rates.

Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity, or sale of investments. 131
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
32 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity (continued)
1) Cash and Investments (continued)
The City pools cash and investments of all funds. Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments.

The City pools idle cash from all funds in order to increase income earned through its investment program. Investment income from pooled investments is allocated to those funds that are required by law or administrative action to receive interest. Investment income is allocated on a quarterly basis based on the cash balance in each fund. 2) Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans).

Noncurrent portions of long-term interfund loan receivables are reported as advances and such amounts are offset equally by a fund balance reserve account that indicates they do not constitute expendable available financial resources and therefore are not available for appropriation.
3) Property Taxes
California Constitution Article XIII A, limits the combined property tax rate to one percent of a property’s assessed valuation. Additional taxes may be imposed with voter approval.

Assessed value is calculated at one hundred percent of a property’s fair value, as defined by Article XIII A, and may be increased no more than two percent per year unless a change in ownership occurs. The state legislature has determined the method of distributing the one percent tax levy among the various taxing jurisdictions.

Property tax revenues are recognized in the fiscal year for which taxes have been levied and collected within sixty days of fiscal year end. Property taxes are billed and collected as follows:

Secured Unsecured
Valuation/Lien Date(s) January 1 January 1
Levy Date July 1 July 1
Due Date(s) November 1 (50%) August 1
February 1 (50%)
Delinquency Date(s) December 10 - 1st Installment August 31 April 10 - 2nd Installment
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Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
33 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity, (continued)
3) Property Taxes (continued)
The City adopted an alternative method of property tax distribution (the “Teeter Plan”). Under this method, the City receives 100% of its secured property tax levied in exchange for foregoing any interest and penalties collected on delinquent taxes. The City receives payments as a series of advances made by the County throughout the fiscal year. The secured property tax levy is recognized as revenue upon receipt including the final payment, which generally is received within 60 days after the fiscal year. 4) Capital Assets
All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Contributed capital assets are valued at acquisition value as of the date received. City policy is to capitalize all tangible property with a useful life of five or more years and a cost or assigned valued exceeding $5,000, with the exception of infrastructure valued at $50,000 or more.

The City recorded all its public domain (infrastructure) capital assets placed in service after June 30, 1980, which include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems, in accordance with generally accepted accounting principles.

The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each fiscal year represents that fiscal year’s pro rata share of the cost of capital assets. Generally accepted accounting principles requires that all capital assets with limited useful lives be depreciated over the estimated useful lives. Depreciation is provided using the straight-line method which means the cost of the assets is divided by its expected useful life in years and the result is charged to expense each fiscal year until the assets are fully depreciated. The City has assigned the useful lives listed below to capital assets.

Structures and Improvements 50 years
Equipment 5 – 20 years
Infrastructure 15 – 50 years
5) Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are reported as prepaid items in both government-wide and fund financial statements. The City accounts for such items using the consumption method.
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Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
34 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity, (continued)
6) Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial element, deferred outflows of resources, represents a consumption of net position that applies to future periods and so will not be recognized as an outflow of resources (expense) until then. In addition to liabilities, the statement of net position or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial element, deferred inflows of resources, represents an acquisition of the net position or fund balance that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time. 7) Compensated Absences
In compliance with generally accepted accounting principles, the City has established a liability for accrued vacation in relevant funds. Based on prior MOU language, a sick leave liability is also accrued for one remaining employee. For governmental fund types, the current liability appears in the respective funds, if due and payable, and the long-term liability appears in the government-wide financial statements. This liability is set up for the current employees at the current rates of pay. If vacation and the sick leave balances are not used by employees during the term of employment, compensation is payable to the employee at the time of retirement. Such compensation is calculated at the employee’s prevailing rate at the time of retirement or termination. Each fiscal year, an adjustment to the liability is made based on pay rate changes and adjustments for the current portion. The General Fund is primarily responsible for the repayment of the governmental portion of compensated absences. 8) Reclassifications and Eliminations
Interfund balances must generally be eliminated in the government-wide statements, except for net residual amounts due between governmental activities and business-type activities.

Amounts involving fiduciary funds should be reported as external transactions. Any allocations must reduce the expenses of the function from which the expenses are being allocated, so that the expenses are reported only once - in the function in which they are allocated.
9) Use of Estimates
The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and necessarily include amounts or disclosures based on estimates and assumptions by management. Actual results could differ from those amounts.
134
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
35 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity, (continued)
10) Fund Equity
The City has implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. This statement provides more clearly defined fund balance categories to make the nature and extent of the constraints placed on a government’s fund balance more transparent. These classifications and constraints have been incorporated into the City’s Fund Balance Policy, Administrative Policy III-10.

The following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used:

Nonspendable – Amounts that are not in a spendable form or are legally or contractually required to be maintained intact.

Restricted – Amounts that have constraints placed on them by third-party providers (grantors, bondholders, and higher levels of government) or by law through constitutional provisions or by enabling legislation.

Committed – Amounts constrained to specific purposes by a government itself, using the highest level of decision-making authority. This includes an action by the City Council passing a resolution. The Committed amounts cannot be used for any other purpose unless the City removes or changes the specified use by taking the same type of action it previously employed to commit those amounts.

Assigned – Amounts the City intends to use for a specific purpose but are neither restricted nor committed. Intended use can be established by the City Council, or by a City official designated as having that authority, such as the City Manager or Finance Director.

Unassigned – is the residual classification for the General Fund and residual fund deficits, if any, of other governmental funds. Unassigned amounts are technically available for any purpose.

When an expenditure is incurred for which both restricted and unrestricted (committed, assigned, or unassigned) are available, it is the City's policy to consider restricted amounts first, then unrestricted resources. When an expenditure is incurred for purposes for which amounts in any of the unrestricted fund balance appropriations could be used, it is the City's Policy that committed amounts would be used first, followed by assigned, and then unassigned fund balance classifications.
135
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
36 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity, (continued)
11) Pension Plans
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. CalPERS audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications.
12) Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis as reported by CalPERS. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

CalPERS audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications.

E. New Accounting Pronouncements
Effective this Fiscal Year
GASB Statement No. 84 – In January 2017, GASB issued Statement No. 84, Fiduciary Activities. The objective of this Statement is to improve guidance related to fiduciary activities for accounting and financial reporting purposes and how those activities should be reported.

The requirements of this Statement are effective for reporting periods beginning after December 15, 2019, or the FY 2020/2021. This Statement did not have an impact on the financial statements.
136
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
37 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) E. New Accounting Pronouncements (continued)
Effective this Fiscal Year
GASB Statement No. 90 – In August 2018, GASB issued Statement No. 90, Majority Equity Interest, an amendment of GASB statement No. 14 and No. 61. The objectives of this Statement is to improve how majority equity interest is reported. The Statement specifies that a majority equity interest in a legally separate organization should be reported as an investment using the equity method if a government’s holding of the equity interest meets the definition of an investment and for all other holdings of a majority equity interest in a legally separate organization, a government should report the legally separate organization as a component unit. The requirements of this Statement are effective for reporting periods beginning after December 15, 2019 or FY 2020/2021. This Statement did not have an impact on the financial statements.

GASB Statement No. 98 – In October 2021, GASB issued Statement No. 98, the Annual Comprehensive Financial Report. This Statement establishes the term annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. The requirements of this Statement are effective for reporting periods beginning after December 15, 2021, or the FY 2022/2023. Earlier implementation is encouraged. The City implemented the provisions of this statement effective July 1, 2020.

Effective in Future Fiscal Years
GASB Statement No. 87 – In June 2017, GASB issued Statement No. 87, Leases. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. The Statement is effective for the reporting periods beginning after December 15, 2020, or FY 2021/2022. The City is evaluating the impact of this Statement on the financial statements.
137
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
38 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) E. New Accounting Pronouncements (continued)
Effective in Future Fiscal Years (continued)
GASB Statement No. 89 – In June 2018, GASB issued Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period. The objectives of this Statement is to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (b) to simplify accounting for certain interest costs. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in the financial statements. The requirements of this Statement are effective for reporting periods beginning after December 15, 2020 or FY 2021/2022. The City is evaluating the impact of this Statement on the financial statements.

GASB Statement No. 90 – In August 2018, GASB issued Statement No. 90, Majority Equity Interest, an amendment of GASB statement No. 14 and No. 61. The objectives of this Statement is to improve how majority equity interest is reported. The Statement specifies that a majority equity interest in a legally separate organization should be reported as an investment using the equity method if a government’s holding of the equity interest meets the definition of an investment and for all other holdings of a majority equity interest in a legally separate organization, a government should report the legally separate organization as a component unit. The requirements of this Statement are effective for reporting periods beginning after December 15, 2019 or FY 2020/2021. The City is evaluating the impact of this Statement on the financial statements.

GASB Statement No. 91 – In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations. The objectives of this Statement is to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with commitments extended by issuers, arrangements associated with conduit debt obligations, and related note disclosures by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. The requirements of this Statement are effective for reporting periods beginning after December 15, 2021 or FY 2022/2023. The City is evaluating the impact of this Statement on the financial statements.
138
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
39 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) E. New Accounting Pronouncements (continued)
Effective in Future Fiscal Years (continued)
GASB Statement No. 92 – In January 2020, GASB issued Statement No. 92, Omnibus 2020.

The objectives of this Statement is to establish accounting and financial reporting requirements for specific issues related to leases, intra-entity transfers of assets, postemployment benefits, government acquisitions, risk financing and insurance-related activities of public entity risk pools, fair value measurements, and derivative instruments. The requirements of this Statement are effective for reporting periods beginning after June 15, 2021 or FY 2021/2022, except for the requirement relating to Statement 87 and Implementation Guide 2019-3; reinsurance recoveries, and terminology used to refer to derivative instruments which are effective upon issuance. The City is evaluating the impact of this Statement on the financial statements.

GASB Statement No. 93 – In May 2020, GASB issued Statement No. 93, Replacement of Interbank Offered Rates. The objectives of this Statement is to address those and other accounting and reporting implications resulting from the replacement of an IBOR by providing exceptions for certain hedging derivative instruments to the hedge accounting termination provisions when an IBOR is replaced and providing clarification to the hedge accounting termination provisions, removing LIBOR as a benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap, identifying a Secured Overnight Financing Rate and the Effective Federal Funds Rate as appropriate benchmark interest rates for the qualitative evaluation of the effectiveness of an interest rate swap and providing an exception to the lease modifications guidance in Statement 87, as amended, for certain lease contracts that are amended solely to replace an IBOR as the rate upon which variable payments depend. The requirements of this Statement are effective for reporting periods beginning after June 15, 2021 or FY 2021/2022, except the removal of LIBOR as a benchmark interest rate which is effective for periods beginning after December 31, 2022 or FY 2023/2024. The City is evaluating the impact of this Statement on the financial statements.

GASB Statement No. 94 – In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The objectives of this Statement improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). The requirements of this Statement are effective for reporting periods beginning after June 15, 2022 or FY 2022/2023. The City is evaluating the impact of this Statement on the financial statements.

GASB Statement No. 96 – In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. The objectives of this Statement is to provide guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset— an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. The requirements of this Statement are effective for reporting periods beginning after June 15, 2022 or FY 2022/2023.

The City is evaluating the impact of this Statement on the financial statements. 139
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
40 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) E. New Accounting Pronouncements (continued)
Effective in Future Fiscal Years (continued)
GASB Statement No. 97 – In June 2020, GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans—an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32. The objective of this Statement is (1) to increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. The requirements of this Statement are effective for reporting periods beginning after June 15, 2021 or FY 2021/2022. The City is evaluating the impact of this Statement on the financial statements.

2. CASH AND INVESTMENTS
Cash and investments held by the City at June 30, 2021, are classified in the accompanying financial statement as follows:

Statement of Net Position:

Cash and investments $ 16,478,964
Statement of Fiduciary Net Position:

Cash and investments 165,074
Total cash and investments $ 16,644,038
Cash and investment held by the City consisted of the following:

Petty cash $ 1,444
Demand deposits 1,711,887
Investments with LAIF 12,365,618
Certificates of Deposit 1,549,536
PARS 1,015,553
Total cash and investments $ 16,644,038
140
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
41 2. CASH AND INVESTMENTS (continued)
Investments Authorized by the California Government Code and the City of Capitola's Investment Policy:

Allowable investment instruments are defined in the California Government Code Section 53600, et. seq., as amended. If the Code is further revised to allow additional investments or is changed regarding the limits on certain categories of investments, the City is authorized to conform to these changes, excluding those changes that may be prohibited by this policy. Where the Government Code specifies a percentage limitation for a particular category of investments, that percentage is applicable only at the date of purchase.

The table below identifies the investment types that are authorized by the City’s investment policy and the California Government Code (or the City's investment policy, if more restrictive). The table also identifies certain provisions that address interest rate risk, credit risk, and concentration of credit risk.

Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Type Maturity of Portfolio One Issuer U. S. Treasury Bills 5 years 60% None
Negotiable Certificates of Deposit (CD) 5 years 20% None Local Agency Investment Fund (LAIF) N/A None $75,000,000 141
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
42 2. CASH AND INVESTMENTS, (continued)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment is, the greater the sensitivity of its fair value to changes in interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. As of June 30, 2021, the City had the following investments.

Investment Type Fair Value Less than 1 year 1-5 years
Investments with LAIF $ 12,365,618 $ 12,365,618 $ -
Certificates of Deposit 1,549,536 - 1,549,536
PARS 1,015,553 1,015,553 -
Total Investments $ 14,930,707 $ 13,381,171 $ 1,549,536 Investment Maturities (in Years)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City’s investments in LAIF and in PARS were not rated as of June 30, 2021. Investments in the negotiable certificates of deposit were fully insured by the Federal Deposit Insurance Corporation (FDIC).

Concentration of Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There are no investments in any one issuer that represent 5% or more of total City investments required to be disclosed.
142
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
43 2. CASH AND INVESTMENTS, (continued)
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker/dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local government units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

As of June 30, 2021, the City had deposits with financial institutions in excess of federal depository insurance limits by $1,715,359 that were held in collateralized accounts.

Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF). LAIF was established in 1977 under the California Government Code Section 16429.1 et seq. as an investment alternative for local California governments and cities. LAIF oversight is governed by a five-member board designated by law, with the State Treasurer as Board Chairman. The State Treasurer elected to invest these monies as part of the State’s Pooled Money Investment Account (PMIA) to achieve the maximum rate of return, while maintaining the goals of safety, liquidity, and yield. All LAIF funds are insulated from State borrowing including State General Fund transfers or loans and AB 55 loans. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based on the City’s pro rata share of the fair value provided by LAIF (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded as an amortized cost basis. LAIF is not registered with the Securities and Exchange Commission.

Fair Value Measurements
The City measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles (GAAP). These guidelines recognize a three‐tiered fair value hierarchy as follows:
• Level 1: Quoted prices for identical investments in active markets; • Level 2: Observable inputs other than those in Level 1; and • Level 3: Unobservable inputs.
143
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
44 2. CASH AND INVESTMENTS, (continued)
Fair Value Measurements, (continued)
Debt and equity securities classified as Level 1 are valued using prices quoted in active markets for those securities. Debt and equity securities classified in Level 2 are valued using the following approaches: debt securities are normally valued based on price data obtained from observed transactions and market price quotations from broker dealers and/or pricing vendors; equity securities are valued using fair value per share for each fund. Certificates of deposit classified in level 2 are valued using broker quotes that utilize observable market inputs. Securities classified as Level 3 have limited trade information, these securities are priced or using the last trade price or estimated using recent trade prices.

At June 30, 2021, the City had the following recurring fair value measurements:

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
45 3. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Interfund Transfers
Interfund transfers for the year ended June 30, 2021, are as follows:

Transfer In
Capital Non-Major
General Projects Governmental
Fund Fund Funds Total
General Fund $ - $ - $ 228,682 $ 228,682
Capital Projects Fund 43,000 - - 43,000
Non-Major Governmental Funds - - 52,286 52,286
Total $ 43,000 $ - $ 280,968 $ 323,968
Transfers Out
The General and the Affordable Housing Funds transferred $106,066 to the Beach Village Lot and $88,616 to the Pacific Cover Debt Financing Fund for debt service payments. The General Fund transferred $43,000 to the Capital Projects Funds for various capital projects. In addition, the Nonmajor Transient Occupancy Tax Fund transferred to the Capitola Village and Wharf BIA Fund for Wharf related projects.
145
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
46 4. CAPITAL ASSETS
Capital assets activity for the year ended June 30, 2021, is as follows:

Ending Ending
Balance Balance
Governmental activities:

Capital assets, not being depreciated:

Land $ 4,883,789 $ - $ - $ 4,883,789
Construction in progress 14,494,833 4,381,606 (2,295,847) 16,580,592 Total capital assets, not being depreciated 19,378,622 4,381,606 (2,295,847) 21,464,381 Capital assets, being depreciated:

Equipment 4,170,592 47,252 - 4,217,844
Building and improvements 2,398,168 - - 2,398,168
Infrastructure 30,713,295 3,276,998 - 33,990,293
Total capital assets, being depreciated 37,282,055 3,324,250 - 40,606,305 Less accumulated depreciation for:

Equipment (3,432,432) (239,496) - (3,671,928)
Building and improvements (1,644,685) (48,470) - (1,693,155) Infrastructure (22,134,616) (623,623) - (22,758,239)
(27,211,733) (911,589) - (28,123,322)
Total capital assets, being depreciated, net 10,070,322 2,412,661 - 12,482,983 Total governmental activities capital assets,
net of accumulated depreciation $ 29,448,944 $ 6,794,267 $(2,295,847) $ 33,947,364 Additions Deletions
Depreciation Allocations
Depreciation expense was charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or program were as follows:

Governmental Activities:

General government $ 417,098
Public safety 104,453
Cultural and recreation 40,493
Transportation 349,546
Total Depreciation Expense - Governmental Activities $ 911,590 146
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
47 5. OTHER LONG-TERM RECEIVABLES
Housing and Community Development Loan Program
The City uses Federal Home Loan Reuse, Affordable Housing and CDBG Program Income funds to provide housing loans to eligible applicants. Such loans are made to low and moderate-income households to improve or rehabilitate residences. These loans have been reflected in the financial statements as loans receivable. The City accounts for this program in the Special Revenue Funds.

Total detail of loans receivable of $6.6 million at June 30, 2021, is listed below:

CDBG Federal Capitola
Program Home Loan Housing
Income Reuse Successor Total
Individual Loans $ 380,675 $ 237,301 $ 504,886 $ 1,122,862 Bay Avenue Senior Apartments - 3,518,897 1,803,583 5,322,480 Wharf Road Manor - 151,644 - 151,644
Totals $ 380,675 $ 3,907,842 $ 2,308,469 $ 6,596,986

6. LONG-TERM LIABILITIES
A summary of changes in long-term debt for the fiscal year ended June 30, 2021, was as follows:

Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Capital Lease - Cove Financing $ 1,058,455 $ - $ (123,898) $ 934,557 $ 113,021 Beach and Village Lot II Financing 1,023,030 - (62,938) 960,092 62,938 Compensated Absences 758,313 544,236 (321,123) 981,426 321,000 Totals $ 2,839,798 $ 544,236 $ (507,959) $ 2,876,075 $ 496,959 Capital Leases Payable - Pacific Cove Debt Financing
On March 23, 2012, the City executed a $2.39 million lease/sublease agreement to facilitate relocating the residents of the Pacific Cove Mobile Home Park. The City-owned mobile home park was permanently closed for safety reasons after a pipe failure flooded the park. This lease agreement used the existing City Hall site and the adjacent Upper Pacific Cove Parking lot as the subject lease property. The original lease agreement was for 20 years at 5.14% fixed interest rate for the first 10 years, with a reset to 10-year T-Bill plus 3%. The lease was renegotiated during fiscal year 2012/13 to a tax-exempt lease with a 3.25% interest rate, with a reset in year 10 to a 10-year T-Bill plus 1.5%. As a result of the refinancing, annual loan payments were reduced by approximately $28,000. Savings on interest over the first nine years is estimated to be $350,000.

In FY 2012/13, the City made a decision to apply $500,000 from the disaster recovery insurance settlement to the Pacific Cove Lease. This resulted in a principal reduction of $476,190, with a prepayment penalty of $23,810.
147
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
48 6. LONG-TERM LIABILITIES, (continued)
Capital Leases Payable - Pacific Cove Debt Financing, (continued) Future lease payments under the capital lease as of June 30, 2021, are as follows:

Fiscal Year
Ending June 30, Principal Interest Total
2022 $ 116,724 $ 48,342 $ 165,066
2023 120,548 44,518 165,066
2024 124,498 40,568 165,066
2025 128,577 36,489 165,066
2026 132,789 32,276 165,065
2027-2030 311,421 69,230 380,651
Total $ 934,557 $ 271,423 $ 1,205,980
Capital Leases Payable - Beach and Village Lot II Financing On March 14, 2014, the City of Capitola executed a $1,372,500 low-interest loan with the California Infrastructure and Economic Development Bank (IBank). This loan is considered a lease-lease back obligation with the General Fund as the source of repayment; and the City Public Works Corporation Yard serving as the leased asset. The loan term is 20 years at a fixed 2.26% interest rate.

Future lease payments under the capital lease as of June 30, 2021, are as follows:

Fiscal Year
Ending June 30, Principal Interest Total
2022 $ 64,360 $ 23,851 $ 88,211
2023 65,815 22,187 88,002
2024 67,302 20,485 87,787
2025 68,823 18,745 87,568
2026 70,379 14,884 85,263
2027-2031 376,483 49,555 426,038
2032-2034 246,930 8,454 255,384
Total $ 960,092 $ 158,161 $ 1,118,253
148
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
49 6. LONG TERM LIABILITIES, (continued)
Compensated Absences
Generally Accepted Accounting Principles identifies certain items that should be accrued as a liability as the benefits are earned by the employees but only to the extent it is probable that the employer will compensate the employees for the benefits through cash payments conditioned on the employee’s termination or retirement.

City employees accumulate earned but unused benefits that can be converted to cash at termination of employment. The non-current portion of these vested benefits, payable in accordance with various collective bargaining agreements, totals $981,426 as of June 30, 2021.

7. FUND BALANCES
The details of the fund balances as of June 30, 2021, are presented below:

Federal Capitola
Home Housing Capital
General Fund Loan Reuse Successor Projects
Restricted for:

Public Safety $ - $ - $ - $ -
Transportation - - - -
Community Development - 4,581,057 4,413,603 -
Culture and Recreation - - - -
Retiree benefits 1,015,553 - - -
Assigned to:

Debt Service - - - -
Other Capital Projects - - - 1,842,004
Emergency Reserve 1,374,206 - - -
Unassigned:

Contingencies 2,584,176 - - -
Unassigned 6,338,927 - - -
Total $ 11,312,862 $ 4,581,057 $ 4,413,603 $ 1,842,004
149
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
50 7. FUND BALANCES, (continued)
Non-Major Total
Library RTC Streets Governmental Governmental
Fund Fund Funds Funds
Restricted for:

Public Safety $ - $ - $ 99,061 $ 99,061
Transportation - 645,047 271,744 916,791
Community Development 754,144 - 1,072,351 10,821,155
Culture and Recreation - - 218,056 218,056
Retiree benefits - - - 1,015,553
Assigned to:

Debt Service - - 55,134 55,134
Other Capital Projects - - - 1,842,004
Emergency Reserve - - - 1,374,206
Unassigned:

Contingencies - - - 2,584,176
Unassigned - - (38,986) 6,299,941
Total $ 754,144 $ 645,047 $ 1,677,360 $ 25,226,077
Deficit Fund Balances
The following fund reported deficit fund balances at June 30, 2021:

Beach and Village Lot II Debt Financing Fund $ (38,986) This deficit is expected to be reduced by future revenues or transfers from other funds. 150
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
51 8. RISK MANAGEMENT
The City participates in the Monterey Bay Area Self-Insurance Agency (the Authority), a joint powers agency comprising the City and nine other local jurisdictions, created pursuant to California law for liability and workers compensation insurance services. The Authority’s Board of Directors is elected from representatives of the member governments, and controls operations of the fund, including selection of management and approval of operating budgets.

It is independent of the individual member influence, except for their representation on the board, and is therefore not a component unit of the City for reporting purposes.

The City is exposed to various risks including worker injuries, tort liability, theft, damage or destruction of assets, errors and omissions, and natural disasters. With respect to risks other than workers’ compensation, the City and other pool participants pay an annual premium estimated by the pool administrator to be sufficient to cover all liability claims for which the pool is obligated. If a covered entity’s losses exceed its premiums, there is no individual supplemental assessment, and if a covered entity’s losses are lower than its assessment, it does not receive a refund.

However, annual budget appropriations are experience-based. The pool views its activities in the aggregate and makes overall adjustments to the premiums charged and is therefore intended to be self-sustaining through member contributions (premiums). Risk of loss is retained by the City for general liability claims up to $10,000 per occurrence. The fund carries excess loss coverage for general liability claims between $990,000 and $20,000,000 per insured event and is uninsured for losses in excess of $20,000,000 per event. Unpaid claims at fiscal year-end, as reported by the fund, were not material. There was no reduction in the City’s insurance coverage as compared to the previous fiscal year, nor have there been any losses exceeding coverage during any of the five previous years.

Premium payment amounts are determined by the fund's Board and are charged to the City’s general fund as expenditures when paid.

In the proper course of operation, the Authority issued debt in the aggregate principal amount of $5,150,000 on October 1, 2004. The Authority is required to collect and disburse the loan premiums in accordance with the loan agreement, Article VI, Section 6.03. The Member agencies are required by the Amended and Restated Joint Powers Agreement Relating to the Authority, Article 20 to pay to the Authority their individual debt service amount and associated expenses, as determined by the Authority. Furthermore, the Member Agencies contribution will be payable from any source of available funds of the Member, including amounts on deposit in the general fund of the Member. Audited financial statements of the Authority can be obtained at 1 Civic Center Drive, Scotts Valley, CA 90566.
151
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
52 9. JOINT VENTURES
Santa Cruz Consolidated Emergency Communications Center The City is a member of the Santa Cruz Consolidated Emergency Communications Center, a Joint Powers Authority created to establish and operate a consolidated communications center which provides emergency call receiving and dispatching services. Other members of the Authority include the Cities of Santa Cruz and Watsonville, and the County of Santa Cruz. The members, including the City of Capitola, are responsible for funding the operations of the Authority through annual assessments. The annual assessments are based on percentages calculated for each member. Audited financial statements of the Authority can be obtained at 495 Upper Park Road, Santa Cruz, CA 95065.

In addition, the Authority and member agencies have entered into a Use Agreement relating to the issuance of the Authority’s Santa Cruz County Public Financing Authority 2002 Lease Revenue Refunding Bonds, Series A, in the aggregate principal amount of $5,760,000. These bonds were refunded in May as 2012 Lease Revenue Bonds, Series A with a principal of $3,965,000. The proceeds were used to refinance the existing debt that was used for building costs; purchase additional equipment and make a lease termination payment to the County to acquire space that is currently being used for the Emergency Operations Center (EOC). The term bonds are due on June 15, 2034.

Other Activities
The City participates in other joint activities for the provisions of law enforcement activities, including the Santa Cruz County Narcotics Enforcement Team (SCCNET) and the Criminal Justice Council. None of these activities are conducted as a separate legal entity; therefore, they are not joint ventures, but are cost-sharing arrangements only. No separate financial statements are prepared for these activities, nor is the City exposed to risk of additional costs beyond reimbursement of its share of on-going operating costs. 152
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
53 10. DEFINED BENEFIT PENSION PLANS
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (the Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. The City sponsors four rate plans (two miscellaneous and two safety). Benefit provisions under the Plan are established by State statute and City resolution.

CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS’ website at www.calpers.ca.gov.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plans operate under the provisions of the California Public Employees’ Retirement Law (PERL), the California Public Employees’ Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CalPERS Board of Administration. 153
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
54 10. DEFINED BENEFIT PENSION PLANS, (continued)
Benefits Provided (continued)
The Plan’s provisions and benefits in effect at June 30, 2021, are summarized as follows:

Classic PEPRA
Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 2.5% @ 55 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Earliest retirement age 50 52
Monthly benefits, as a % of eligible compensation 2%-2.5% 1.0%-2.5% Required employee contribution rates 7.95% 6.75%
Required employer contribution rates* 12.36% 7.73%
*Annual employer UAL payment of $835,791 is not included in the rates above Classic PEPRA
Prior to On or after
Membership date January 1, 2013 January 1, 2013
Benefit formula 3.0% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Earliest retirement age 50 50-57
Monthly benefits, as a % of eligible compensation 3.0% 2.0%-2.7% Required employee contribution rates 6.75% 13.00%
Required employer contribution rates* 25.91% 13.04%
*Annual employer UAL payment of $853,670 is not included in the rates above Miscellaneous
Safety
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. For public agency cost-sharing plans covered by either the Miscellaneous or Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer Contributions to the Plan for the fiscal year ended June 30, 2021 for Safety Plan and Miscellaneous Plan were $1,307,218 and $1,024,725, respectively.
154
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
55 10. DEFINED BENEFIT PENSION PLANS, (continued)
Net Pension Liability
The City of Capitola’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.

Actuarial Methods and Assumptions Used to Determine Total Pension Liability Miscellaneous Safety
Valuation Date June 30, 2019 June 30, 2019
Measurement Date June 30, 2020 June 30, 2020
Actuarial Cost Method Entry Age Normal Entry Age Normal Actuarial Assumptions
Discount Rate 7.15% 7.15%
Inflation 2.50% 2.50%
Salary Increases (1) Varies by Entry Age and Service Varies by Entry Age and Service Investment Rate of Return (2) 7.15% 7.15%
Mortality Rate Table (3) Derived using CALPERS' Derived using CALPERS' membership data for all Funds. membership data for all Funds.

Post Retirement Benefit Increase Contract COLA up to 2.5% until Contract COLA up to 2.5% until purchasing power protection purchasing power protection allowance floor on purchasing allowance floor on purchasing power applies, 2.5% thereafter. power applies, 2.5% thereafter. (1) Annual increases vary by category, entry age, and duration of service. (2) Net pension plan investment and administrative expenses; includes inflation. (3) The mortality table used was developed based on CalPERS' 2017 Study using data from 1995 to 2015. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB.

The 2017 Experience Study report can be obtained at CalPERS’ website at www.calpers.ca.gov.
155
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
56 10. DEFINED BENEFIT PENSION PLANS, (continued)
Discount Rate
The discount rate used to measure the total pension liability was 7.15 percent. To determine whether the municipal bond rate should be used in the calculation of the discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. The tests revealed the assets would not run out. Therefore, the current 7.15 percent discount rate is appropriate, and the use of the municipal bond rate calculation is not deemed necessary. The long-term expected discount rate of 7.15 percent is applied to all plans in the Public Employees' Retirement Fund (PERF).

The cash flows used in the testing were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years.

The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB 68 section.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both shortterm and long-term market return expectations as well as the expected pension fund (PERF) cash flows. Taking into account historical returns of all the PERF asset classes (which includes the agent plan and two cost-sharing plans or PERF A, B and C funds), expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and longterm returns. The expected rate of return was then set equal to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. 156
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
57 10. DEFINED BENEFIT PENSION PLANS, (continued)
Discount Rate, (continued)
The following table reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation.

Current Target Real Return Real Return
Asset Class(1) Allocation Years 1–10(2) Years 11+(3)
Global Equity 50.0% 4.8% 6.0%
Fixed Income 28.0% 1.0% 2.6%
Inflation Assets 0.0% 0.8% 1.8%
Private Equity 8.0% 6.3% 7.2%
Real Assets 13.0% 3.8% 4.9%
Liquidity 1.0% 0.0% -0.9%
100.0%
Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities. (1) In the Basic Financial Statements, Fixed Income is included in Global Debt Securities; Liquidities included in Short-Term (2) An expected inflation of 2.00% used for this period. (3) An expected inflation of 2.92% used for this period.

Pension Plan Fiduciary Net Position
Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS’ audited financial statements, which are publicly available reports that can be obtained at CalPERS’ website at www.calpers.ca.gov. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting.

Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value.
157
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
58 10. DEFINED BENEFIT PENSION PLANS, (continued)
Proportionate Share of Net Pension Liability
The following table shows the Plans’ proportionate share of the net pension liability over the measurement period.

Net Deferred Deferred
Pension Outflows Inflows Pension
Liability of Resources of Resources Expense
Miscellaneous plan $ 12,430,057 $ 2,214,693 $ 681,915 $ 1,818,746 Safety plan 13,681,501 3,033,745 720,546 2,175,997
Total pension plans $ 26,111,558 $ 5,248,438 $ 1,402,461 $ 3,994,743 The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2020, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. The City’s proportion of the net pension liability was determined by CalPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CalPERS Public Agency Cost-Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CalPERS’ website at www.calpers.ca.gov.

The City’s proportionate share of the net pension liability for the Plan as of the June 30, 2020 and 2021 was as follows:

Miscellaneous Safety
Proportionate Share of NPL - June 30, 2020 0.290385% 0.200559% Proportionate Share of NPL - June 30, 2021 0.294685% 0.205355% Change - Increase (Decrease) 0.004300% 0.004796%
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 7.15 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.15 percent) or 1 percentage point higher (8.15 percent) than the current rate:

Discount Rate -1% Current Discount Rate Discount Rate +1% (6.15%) (7.15%) (8.15%)
Miscellaneous plan $ 18,059,463 $ 12,430,057 $ 7,778,656 Safety plan 20,003,359 13,681,501 8,493,819
Total pension plans $ 38,062,822 $ 26,111,558 $ 16,272,475 158
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
59 10. DEFINED BENEFIT PENSION PLANS, (continued)
Recognition of Gains and Losses
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.

The amortization period differs depending on the source of the gain or loss:

Difference between
projected and actual earnings
5 year straight-line amortization
All other amounts Straight-line amortization over the average expected remaining service lives of all
members that are provided with benefits
(active, inactive and retired) as of the
beginning of the measurement period
The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost-Sharing Multiple-Employer Plan (PERF C). The EARSL for the Plan is 3.8 years.

Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
For the year ended June 30, 2021, the City incurred a pension expense of $482,521 and $720,816 for the Miscellaneous plan and Safety plan, respectively. 159
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
60 10. DEFINED BENEFIT PENSION PLANS, (continued)
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions, (continued)
As of June 30, 2021, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Deferred
Outflows Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $ 1,024,725 $ - Contributions in excess of proportionate share - (530,380) Changes in assumptions - (88,656)
Difference in expected and actual experience 640,558 -
Adjustment due to differences in proportions 180,155 (62,879) Net differences between projected and actual earnings
on plan investments 369,255 -
Total $ 2,214,693 $ (681,915)
Deferred Deferred
Outflows Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $ 1,307,218 $ - Contributions in excess of proportionate share - (674,973) Changes in assumptions - (45,573)
Difference in expected and actual experience 1,060,931 - Adjustment due to differences in proportions 368,239 -
Net differences between projected and actual earnings
on plan investments 297,357 -
Total $ 3,033,745 $ (720,546)
Miscellaneous Plan
Safety Plan
160
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
61 10. DEFINED BENEFIT PENSION PLANS, (continued)
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions, (continued)
The Contributions subsequent to the measurement date with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Deferred
Fiscal Year Ended Outflows/(Inflows)
June 30: of Resources, Net
2022 $ (97,919)
2023 216,435
2024 212,432
2025 177,105
$ 508,053
Deferred
Fiscal Year Ended Outflows/(Inflows)
June 30: of Resources, Net
2022 $ 175,747
2023 380,389
2024 300,853
2025 148,992
$ 1,005,981
Miscellaneous Plan
Safety Plan
161
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
62 11. PUBLIC AGENCY RETIREMENT PLAN
Overview
The Federal Omnibus Budget Reconciliation Act of 1990 (FOBRA 90), mandated that all publicsector employees not covered by their employers’ existing retirement system(s) as of January 1, 1992, be covered by Social Security or an alternate plan. The City has provided these employees with a plan called The Public Agency Retirement System, which qualifies under Internal Revenue Code Sections 401(a) and 501.

Plan Description
The Public Agency Retirement System (PARS) is a defined contribution plan covering part-time, temporary or seasonal employees and all employees not covered by another retirement plan. The Plan is sponsored and paid for by employees and employer contributions. Members are 100% vested. Benefits are paid to the members in lump sum payments at termination, or if payment is in excess of $3,500, the employee has the option of a lump sum payment at termination or at normal retirement age (60).

The City has the right to terminate or amend the Plan at any time.

Contributions
A total annual contribution of 7.5% of covered earnings is contributed to the PARS account for each eligible employee. The City contributes 1.3% and the employee contributes 6.2%. During the fiscal year ending June 30, 2021, contributions totaled $36,774. The City acts as administrator with a trustee managing the investments and accounts. Fees are charged by the trustee and are paid from member earnings. Employer liabilities under the Plan are limited to the amount of the current contributions.
162
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
63 12. OTHER POST EMPLOYMENT BENEFITS
Plan Description
The City’s defined benefit postemployment healthcare plan, (City of Capitola Retiree Healthcare Plan, CRHP), provides medical benefits to eligible retired City employees and spouses. CRHP is an agent multiple-employer plan administered by California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for participating public employers within the State of California. A menu of benefit provisions, as well as other requirements, is established by State statute within the Public Employees’ Retirement Law. The CRHP’s plan provisions are established and may be amended through negotiation and Memoranda of Understanding between the City Council and the various bargaining units. All contracts with CalPERS are approved through City resolution. CalPERS issues publicly available reports that can be found on the CalPERS’ website at www.calpers.ca.gov.

Employees Covered
At the June 30, 2020 measurement date, the following current and former employees were covered by the benefit terms under the OPEB Plan:

Active employees 71
Inactive employees or beneficiaries currently receiving benefits payments 19 90 Contributions
The obligation of the City to contribute to the plan is based on an actuarial determined rate. For the fiscal year ended June 30, 2021, the City’s cash contributions were in the form implied of subsidy for $36,774. The City makes contributions and participates in the California Employers’ Retiree Benefit Trust (CERBT) Fund for the purpose of prefunding obligations for past services.

Through this plan, the California Public Employees’ Retirement System (CalPERS) Board of Administration has the sole and exclusive control and power over the administration and investment of the prefunding plan.
163
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
64 12. OTHER POST EMPLOYMENT BENEFITS, (continued)
Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2020 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2019 that was based on the following actuarial methods and assumptions:

Discount Rate 7.00%
Inflation 2.75%
Salary Increases 2.75% per annum, in aggregate
Investment Rate of Return 7.00%
Mortality Rate Mortality Rates from 2017
CalPERS Experience Study
Healthcare Trend Rate 5.9% in 2020 dropping to 5.00%
in 2029
The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Target Allocation 5-Year Return
Asset Class (Strategy 2) (Strategy 2)
Global Equity 59% 5.5%
Fixed Income 25% 1.5%
TIPS 5% 1.2%
Real Estate 8% 3.7%
Commodities 3% 0.6%
100%
164
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
65 12. OTHER POST EMPLOYMENT BENEFITS, (continued)
Discount Rate
The discount rate used to measure the total OPEB Liability was 7.00%. The projection of cash flows used to determine the discount rate assumed that the City contribution will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

Changes in Net OPEB Liability
The changes in the net OPEB liability for the City’s Plan are as follows:

Total OPEB
Liability
Plan
Fiduciary Net
Position
Net OPEB
Liability
Balance at June 30, 2020 $ 1,939,917 $ 367,709 $ 1,572,208 Changes recognized for year:

Service Cost 113,292 - 113,292
Interest 140,891 - 140,891
Changes of benefit terms - - -
Difference in expected and actual experience - - -
Changes of assumptions - - -
Contributions - 82,353 (82,353)
Net investment income - 12,995 (12,995)
Administrative expenses - (180) 180
Benefit payments, including refunds of
employee contributions (82,353) (82,353) -
Net changes 171,830 12,815 159,015
Balance at June 30, 2021 $ 2,111,747 $ 380,524 $ 1,731,223 Increase/(Decrease)
165
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
66 12. OTHER POST EMPLOYMENT BENEFITS, (continued)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower (6 percent) or one percentage point higher (8 percent) than the current rate, for measurement period ended June 30, 2020:

Discount Rate
-1% (6%)
Current Discount Rate
(7%)
Discount Rate
+1% (8%)
$1,961,107 $ 1,731,223 $1,533,227
Net OPEB Liability
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage higher than the current rate, for measurement period ended June 30, 2020:

Trend Rate - 1%
(4.9%-3.0%)
Healthcare Cost
Trend Rates
(5.9%-4.0%)
Trend Rate + 1%
(6.9%-5.0%)
$1,471,996 $ 1,731,223 $2,046,427
Net OPEB Liability
OPEB expense and Deferred Items Summary
For the year ended June 30, 2021, the City recognized OPEB expenses of $301,946. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to the OPEB from the following sources:

Deferred Outflows
of Resources
Deferred Inflows
of Resources
OPEB contributions subsequent to measurement date $ 36,774 $ - Changes of Assumptions 964,155 -
Differences between Expected and Actual Experiences - (163,008) Net differences between projected and actual earnings
on plan investments 11,895 -
Total $ 1,012,824 $ (163,008)
166
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
67 12. OTHER POST EMPLOYMENT BENEFITS, (continued)
OPEB expense and Deferred Items Summary, (continued)
For the year ended June 30, 2021, the City reported deferred outflows of resources related to OPEB in the amount of $36,774 for its contributions subsequent to the measurement date. This amount will be recognized as an OPEB expense in fiscal year 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the OPEB will be recognized as OPEB expense as follows:

Year Ended
June 30
2021 $ 102,020
2022 102,019
2023 101,989
2024 101,491
2025 98,906
Thereafter 306,617
Total $ 813,042

13. COMMITMENTS AND CONTINGENT LIABILITIES
Claims and lawsuits have been filed against the City in the normal course of business. The outcome of these matters is not presently determinable. However, in the opinion of management, the resolution of these matters is not expected to have a significant impact on the financial condition of the City.
167
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
68 14. SUCCESSOR AGENCY TO THE FORMER CAPITOLA REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill X1 26 that provided for the dissolution of all redevelopment agencies in the State of California. Most cities in California established a redevelopment agency that was included in the reporting entity of the city as a blended component unit (since the governing board of the city or county in many cases, also served as the governing board for those agencies). The Bill provided that upon dissolution of a redevelopment agency, either the city or another unit of local government could agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 12, 2012, the City Council met and created a Successor Agency in accordance with the Bill as part of City resolution number 3906.

After the law was enacted on June 28, 2011, redevelopment agencies in the State of California could not enter into new projects, obligations or commitments. Upon the date of dissolution, February 1, 2012, significant matters previously controlled by the City Councils of the cities that created each redevelopment agency were now subject to the approval of the seven-member Oversight Board, and typically the California Department of Finance (DOF):
• Sale and distribution of assets
• Any change in obligation of terms
• Prepayment or defeasance of debt
• Acceptance of grants
• Funding of debt service reserves
• Budget for any remaining activities
In the current and future years, successor agencies are only allocated tax revenue in the amount that is necessary to pay the estimated annual payments on approved Recognized Obligation Payment Schedules (ROPS) until all enforceable obligations are paid in full. All obligations listed on the Capitola ROPS were approved by the Successor Agency and the Oversight Board, however the Department of Finance disallowed payment requests on two City/RDA loans. These loans included a $618,028 Loan and Repayment Agreement and a $1.35 million loan to purchase the City-owned Rispin Mansion property.

In June 2012, the California legislature passed AB 1484. This legislation provided clarification regarding the dissolution process and imposed new requirements. AB 1484 declared Successor Agencies are separate legal entities distinct from the sponsoring government, clarified matters pertaining to the affordable housing programs previously performed by the former RDA; and clarified matters pertaining to Enforceable Obligation and Recognized Obligation Payment Schedules (EOPS/ROPS). The legislation also established a requirement for all Successor Agencies to complete a due diligence review, established a process to receive a Finding of Completion that will provide significant benefits to local agencies (allowing them to begin spending debt proceeds and providing a formula for the repayment of money previously borrowed from the sponsoring government); and made a number of other significant changes in the dissolution process and the post-dissolution activities of Successor Agencies. 168
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
69 14. SUCCESSOR AGENCY TO THE FORMER CAPITOLA REDEVELOPMENT AGENCY, (continued)
In FY 2012/13, the Successor Agency completed two Due Diligence Reviews as required by the legislation. The Due Diligence review resulted in a recapture of the residual fund balance in the Successor Agency’s primary operating account of $89,536 and a disallowed payment to the City in the amount of $47,895 for a City/RDA loan. While the Successor Agency and the City disagreed with this determination, the combined amount of $137,431 was remitted to the County AuditorController to maintain compliance. The completion of these two reviews resulted in the Successor Agency receiving a finding of Completion on May 24, 2013.

The Bill also directed the California State Controller to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers was not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller was required to order the available assets to be transferred to the public body designated as the Successor Agency. The Capitola Successor Agency completed the Asset Transfer Review on October 7, 2013. The report findings required the City to return $52,313 to the Successor Agency for an interest payment on a City/RDA loan. The Successor Agency and the City also disagreed with this determination.

The Successor Agency and Oversight Board have approved reinstatement of the $618,028 Loan and Repayment Agreement at a reduced interest rate; however, this reinstatement was initially denied by the Department of Finance. The Department of Finance has indicated that application for this reinstatement should be subject to the timelines established in AB 1484.

The Successor Agency, City, and the Oversight Board approved a resolution to terminate the Rispin Property Purchase Loan in exchange for the return of the property. This would result in the reduction of $1.35 million dollars in Successor Agency debt. The Department of Finance requested the Oversight Board reconsider this decision; and the Oversight Board unanimously reaffirmed their property transfer decision in August. The City did not receive a response from the Department of Finance in relation to this action, and the statutory time to deny the action has elapsed. The City’s RDA attorney believed the action was effective due timing; however, the official property transfer was delayed until after the Successor Agency successfully completed a Long-Range Property Management Plan. This plan was completed on March 21, 2014; followed by the termination of the Rispin Purchase Loan and the City’s acceptance of the property by Resolution on October 10, 2013. This transaction relieved the Successor Agency of all capital assets.

After the date of dissolution, activities of the dissolved redevelopment agency are reported in a fiduciary trust fund (private purpose trust fund) in the financial statements of the City. The assets and liabilities relating to the Successor Agency are provided in the following sections:

Long-Term Debt
In accordance with the provisions of California AB X 1 26 (Bill), the obligations of the former Redevelopment Agency became vested with the funds established for the Successor Agency upon the date of dissolution, February 1, 2012. Former tax increment revenues pledged to fund the debts of the former Redevelopment Agency are distributed to the Successor Agency subject to the reapportionment of such revenues as provided by the Bill. 169
Item 8 C.

CITY OF CAPITOLA
Notes to Financial Statements
Year Ended June 30, 2021
70 15. RISKS AND UNCERTAINTIES
Grants
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the government expects such amounts, if any, to be immaterial.

City/Successor Agency Obligations
Deductions (expenses) incurred by the Successor Agency for the year ended June 30, 2021 (and subsequent years in which the Successor Agency is in operation) are subject to review by various State agencies and the County in which the Successor Agency resides. If any expenses incurred by the Successor Agency are disallowed by the State agencies or County, the City, acting as the Successor Agency could be liable for the repayment of the disallowed costs from either its own funds or by the State withholding remittances normally paid to the City. Over the last fiscal year, the Successor Agency has been successful in receiving funding for all approved obligations, with the exception of City/RDA loans. The amount, if any, of expenses that may be disallowed by the State agencies or County cannot be determined at this time as to be immaterial or not. 170
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171
Item 8 C.

REQUIRED SUPPLEMENTARY INFORMATION
172
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173
Item 8 C.

CITY OF CAPITOLA
Required Supplementary Information
Year Ended June 30, 2021
71 Schedule of Changes in Net OPEB Liability and Related Ratios Last Ten Years*
2021 2020 2019 2018
Total OPEB Liability
Service cost $ 113,292 $ 32,631 $ 27,267 $ 26,537
Interest 140,891 62,516 57,232 51,739
Changes of benefit terms - - - -
Differences between expected and actual experience - (203,258) - - Change of assumptions - 1,202,217 - -
Benefit payments, included refunds of employee contributions (82,353) (28,801) (27,697) (26,632) Net change in total OPEB liability 171,830 1,065,305 56,802 51,644 Total OPEB liability - beginning of year 1,939,917 874,612 817,810 766,166 Total OPEB liability - end of year (a) $ 2,111,747 $ 1,939,917 $ 874,612 $ 817,810 Fiduciary Net Position
Net investment income $ 12,995 $17,834 $ 16,868 $ 15,205 Contributions
Employer 82,353 88,801 87,697 81,540
Employee - - - -
Benefit payments, including refunds of employee contributions (82,353) (28,801) (27,697) (26,632) Administrative expense (180) - (397) (127)
Other - - 31 -
Net change in plan fiduciary net position 12,815 77,834 76,502 69,986 Fiduciary net position - beginning of year 367,709 289,875 213,373 143,387 Fiduciary net position - end of year (b) 380,524 367,709 289,875 213,373 Net OPEB liability - end of year = (a) - (b) $ 1,731,223 $ 1,572,208 $ 584,737 $ 604,437 Fiduciary net position as a percentage of the total OPEB liability 18.02% 18.95% 33.14% 26.09% Covered employee payroll $ 5,757,120 $ 5,567,350 $ 5,361,855 $ 5,787,564 Discount rate 7.00% 7.00% 7.00% 7.00%
Measurement date 6/30/2020 6/30/2019 6/30/2018 6/30/2017 * Fiscal year 2018 was the first year of implementation of the OPEB standards. 174
Item 8 C.

CITY OF CAPITOLA
Required Supplementary Information
Year Ended June 30, 2021
72 Schedule of OPEB Contributions
Last Ten Years*
2021 2020 2019 2018
Actuarially determined contribution $ 36,774 $ 91,600 $ 88,801 $ 86,090 Contributions in relation to
the actuarially determined contribution (36,774) (91,600) (88,801) (86,090) Contribution deficiency (excess) $ - $ - $ - $ -
Covered employee payroll $ 6,145,766 $ 5,757,120 $ 5,567,350 $ 5,361,855 Contributions as a percentage of
covered employee payroll 0.60% 1.59% 1.60% 1.61%
* Fiscal year 2018 was the first year of implementation of the OPEB standards. 175
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176
Item 8 C.

CITY OF CAPITOLA
Required Supplementary Information
Year Ended June 30, 2021
73 Schedule of City’s Proportionate Share of the Plan’s Net Pension Liability and Related Ratios Last 10 Years*
Miscellenaous Plan 2021 2020 2019
Proportion of the Collective Net Pension Liability 0.29469% 0.29039% 0.28641% Proportionate Share of the Collective Net Pension Liability $ 12,430,057 $ 11,628,468 $ 10,793,804 Covered Payroll $ 3,799,393 $ 3,504,309 $ 3,434,216
Proportionate Share of the Collective Net Pension Liability as a Percentage of the Employer's Covered Payroll
327.2% 331.8% 314.3%
Plan's Fiduciary Net Position as a Percentage of the Total Pension Liability 77.7% 77.7% 77.7%
Measurement Date 6/30/2020 6/30/2019 6/30/2018
Discount Rate 7.15% 7.15% 7.15%
Safety Plan 2021 2020 2019
Proportion of the Collective Net Pension Liability 0.20536% 0.20056% 0.19718% Proportionate Share of the Collective Net Pension Liability $ 13,681,501 $ 12,519,942 $ 11,569,787 Covered Payroll $ 2,371,092 $ 2,381,492 $ 2,487,719
Proportionate Share of the Collective Net Pension Liability as a Percentage of the Employer's Covered Payroll
577.0% 525.7% 465.1%
Plan's Fiduciary Net Position as a Percentage of the Total Pension Liability 73.1% 73.4% 73.4%
Measurement Date 6/30/2020 6/30/2019 6/30/2018
Discount Rate 7.15% 7.15% 7.15%
* Fiscal year 2015 was the first year of implementation of the pension standards. 177
Item 8 C.
74 2018 2017 2016 2015

0.27777% 0.27444% 0.27813% 0.23223%
$ 10,949,665 $ 9,533,602 $ 7,630,270 $ 5,739,418
$ 3,370,438 $ 3,245,529 $ 3,147,103 $ 258,938
324.9% 293.8% 242.5% 2216.5%

75.4% 75.9% 79.9% 81.2%
6/30/2017 6/30/2016 6/30/2015 6/30/2014

7.15% 7.65% 7.65% 7.50%
2018 2017 2016 2015

0.19088% 0.19118% 0.18590% 0.17280%
$ 11,405,601 $ 9,901,586 $ 7,660,071 $ 6,481,759
$ 2,402,133 $ 2,308,245 $ 2,283,732 $ 5,207,351
474.8% 429.0% 335.4% 124.5%

71.7% 72.7% 77.3% 78.8%
6/30/2017 6/30/2016 6/30/2015 6/30/2014

7.15% 7.65% 7.65% 7.50%
178
Item 8 C.

CITY OF CAPITOLA
Required Supplementary Information
Year Ended June 30, 2021
75 Schedule of Pension Contributions
Last 10 Years*
Miscellenaous Plan 2021 2020 2019
Contractually Determined Contribution $ 1,024,725 $ 913,110 $ 838,617 Contributions in Relation to the Contractually
Determined Contribution (1,024,725) (913,110) (838,617) Contribution Deficiency (Excess) $ - $ - $ -
Covered Payroll $ 2,040,667 $ 3,799,393 $3,504,309
Contributions as a Percentage of Covered Payroll 50.22% 24.03% 23.93% Safety Plan 2021 2020 2019
Contractually Determined Contribution $ 1,307,218 $ 1,199,415 $ 954,292 Contributions in Relation to the Contractually
Determined Contribution (1,307,218) (1,199,415) (954,292) Contribution Deficiency (Excess) $ - $ - $ -
Covered Payroll $ 2,300,530 $ 2,371,092 $2,381,492
Contributions as a Percentage of Covered Payroll 56.82% 50.58% 40.07% * Fiscal year 2015 was the first year of implementation of the pension standards. 179
Item 8 C.
76 2018 2017 2016 2015
$ 832,631 $ 516,728 $ 448,910 $ 261,550
(832,631) (516,728) (448,910) (261,550)
$ - $ - $ - $ -
$ 3,434,216 $ 3,370,438 $ 3,245,529 $ 3,147,103

24.25% 33% 14% 8%
2018 2017 2016 2015
$ 937,396 $ 536,507 $ 741,692 $ 640,785
(937,396) (536,507) (741,692) (640,785)
$ - $ - $ - $ -
$ 2,487,719 $ 2,402,133 $ 2,308,245 $ 2,283,732

37.68% 33% 32% 28%
180
Item 8 C.

CITY OF CAPITOLA
Required Supplementary Information
General Fund
Budgetary Comparison Schedule
Year Ended June 30, 2021
77 Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Taxes $ 10,542,633 $ 11,896,940 $ 12,838,748 $ 941,808
Licenses and permits 566,100 566,100 652,687 86,587
Fines and forfeitures 482,900 482,900 495,572 12,672
Intergovernmental 62,200 648,041 1,656,018 1,007,977
Charges for services 1,300,830 1,411,603 1,414,304 2,701 Use of money and property 36,500 36,500 179,097 142,597 Other revenue 76,500 134,500 74,700 (59,800)
Total revenues 13,067,663 15,176,584 17,311,126 2,134,542 Expenditures:

Current:

General government:

City council 67,610 74,360 96,777 (22,417)
City manager 848,213 833,976 1,006,133 (172,157)
Personnel 276,594 277,858 (118,259) 396,117
City attorney 255,000 255,000 191,591 63,409
Finance 777,587 745,453 837,290 (91,837)
Community grants - 20,000 281,046 (261,046)
Public safety 6,564,221 6,814,050 5,982,939 831,111
Community development 701,075 947,649 717,370 230,279
Culture and recreation 973,249 1,206,112 947,122 258,990 Transportation 2,344,296 2,419,897 2,294,436 125,461
Capital Outlay 65,000 65,000 881,220 (816,220)
Total expenditures 12,872,845 13,659,355 13,117,665 541,690 Excess (deficiency) of revenues
over (under) expenditures 194,818 1,517,229 4,193,461 1,592,852 Other financing sources (uses):

Transfers In 43,000 43,000 43,000 -
Transfers out 359,383 809,383 (228,682) (1,038,065)
Total Other Financing
Sources (Uses) 402,383 852,383 (185,682) (1,038,065)
Net change in fund balance 597,201 2,369,612 4,007,779 1,638,167 Fund balance, beginning of year 7,305,083 7,305,083 7,305,083 - Fund balance, end of year $ 7,902,284 $ 9,674,695 $ 11,312,862 $ 1,638,167 Budgeted Amounts
181
Item 8 C.

CITY OF CAPITOLA
Required Supplementary Information
Federal Home Loan Reuse Fund
Budgetary Comparison Schedule
Year Ended June 30, 2021
78 Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Use of money and property $ - $ - $ 8,019 $ 8,019
Other revenue - - 97,293 97,293
Total revenues - - 105,312 105,312
Expenditures:

Current:

Community development 3,700 3,700 3,700 -
Net change in fund balance (3,700) (3,700) 101,612 105,312 Fund balance, beginning of year 4,479,445 4,479,445 4,479,445 - Fund balance, end of year $ 4,475,745 $ 4,475,745 $ 4,581,057 $ 105,312 Budgeted Amounts
182
Item 8 C.

CITY OF CAPITOLA
Required Supplementary Information
Capitola Housing Successor Fund
Budgetary Comparison Schedule
Year Ended June 30, 2021
79 Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Use of money and property $ - $ - $ 1,980 $ 1,980
Other revenue - - 106,814 106,814
Total revenues - - 108,794 108,794
Expenditures:

Current:

Community development 80,000 80,000 44,053 35,947
Net change in fund balance (80,000) (80,000) 64,741 144,741 Fund balance, beginning of year 4,348,862 4,348,862 4,348,862 - Fund balance, end of year $ 4,268,862 $ 4,268,862 $ 4,413,603 $ 144,741 Budgeted Amounts
183
Item 8 C.

CITY OF CAPITOLA
Required Supplementary Information
RTC Streets Fund
Budgetary Comparison Schedule
Year Ended June 30, 2021
80 Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Intergovernmental $ 250,000 $ 250,000 $ 1,038,723 $ 788,723 Use of money and property - - 1,042 1,042
Total revenues 250,000 250,000 1,039,765 789,765
Expenditures:

Current:

Transportation 250,000 250,000 69,112 180,888
Net change in fund balance - - 970,653 970,653
Fund balance, beginning of year (325,606) (325,606) (325,606) - Fund balance, end of year $ (325,606) $ (325,606) $ 645,047 $ 970,653 Budgeted Amounts
184
Item 8 C.

CITY OF CAPITOLA
Notes to Required Supplementary Information
Year Ended June 30, 2021
81 BUDGETS AND BUDGETARY ACCOUNTING
The City adheres to the following procedures in establishing the budgetary data reflected in the financial statements:

Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for governmental funds. The City’s budget ordinance requires that in April of each fiscal year, the City Manager must submit a preliminary budget that includes projected expenditures and the means of financing them, to the City Council for the fiscal year commencing the following July 1.

As modified during public study sessions, the preliminary budget becomes the proposed budget.

Following public hearings on the proposed budget, the final annual budget is adopted by the City Council in June of the following fiscal year. After adoption of the final budget, transfers of appropriations within a general fund department, or within each fund can be made by the City Manager. Budget modifications between funds, increases or decreases to a fund’s overall budget, transfers between general fund departments or transfers that affect capital projects must be approved by the City Council or Agency Board. Numerous properly authorized amendments are made during the fiscal year. Appropriations lapse at fiscal year-end.

Budgetary control is enhanced by integrating the budget into the general ledger. Encumbrance accounting is employed (e.g., purchase orders) to avoid over-expenditure. Encumbrances outstanding at fiscal year-end are automatically rebudgeted in the following fiscal year, unless specifically cancelled by Council action. Per Capitola Municipal Code 3.20.060.C: “The appropriation for the uncompleted balance of executory contracts should not lapse at year-end but is automatically appropriated for the succeeding fiscal year unless specifically cancelled by council action”.

There were no excess expenditures over appropriations in the General Fund departments. 185
Item 8 C.

SUPPLEMENTARY INFORMATION
186
Item 8 C.

CITY OF CAPITOLA
Capital Projects Fund
Major Capital Projects Fund
Budgetary Comparison Schedule
Year Ended June 30, 2021
82 Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Licenses and permits $ - $ - $ 12,414 $ 12,414
Intergovernmental - - 310,112 310,112
Other revenue - - 42,864 42,864
Total revenues - - 365,390 365,390
Expenditures:

Capital outlay 775,000 775,000 1,028,373 (253,373)
Net change in fund balance (775,000) (775,000) (705,983) 69,017 Fund balance, beginning 2,547,987 2,547,987 2,547,987 - Fund balance, ending $ 1,772,987 $ 1,772,987 $ 1,842,004 $ 69,017 Budgeted Amounts
187
Item 8 C.

CITY OF CAPITOLA
Capital Projects Fund
Library Fund
Budgetary Comparison Schedule
Year Ended June 30, 2021
83 Variance with
Final Budget
Positve
Original Final Actual (Negative)
Revenues:

Intergovernmental $ 1,962,700 $ 1,962,700 $ 522,458 $ (1,440,242) Use of money and property - - 20,208 20,208
Other revenue - - 89,520 89,520
Total revenues 1,962,700 1,962,700 632,186 (1,330,514)
Expenditures:

Current:

General government: - - 784,093 (784,093)
Capital outlay 1,962,700 1,962,700 3,500,416 (1,537,716) Total expenditures 1,962,700 1,962,700 4,284,509 (2,321,809) Net change in fund balance - - (3,652,323) (3,652,323)
Fund balance, beginning of year 4,406,467 4,406,467 4,406,467 - Fund balance, end of year $ 4,406,467 $ 4,406,467 $ 754,144 $ (3,652,323) Budgeted Amounts
188
Item 8 C.

CITY OF CAPITOLA
Non-Major Governmental Funds
Combining Statements
June 30, 2021
84 NON-MAJOR FUNDS

SPECIAL REVENUE FUNDS
Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.

SB1 Road Rehab Fund - This fund accounts for receipts and expenditures received from the passage of Senate Bill 1 – Road Repair and Accountability Act of 2017.

Supplemental Law Enforcement Fund - This fund accounts for the receipt and expenditure of Supplemental Law Enforcement revenues provided by the State of California.

Gas Tax Fund - This fund accounts for receipts and expenditures of gasoline tax revenues as provided by State law.

Wharf Fund - In accordance with the State law and contractual commitments, this fund accounts for wharf operating revenues and expenditures.

Parking Reserve Fund - This fund accounts for 16% of parking meter revenue from the village area (Parking Meter Zone A1). The fund was established to fund parking improvement projects throughout the village.

Technology Fees Fund - This fund accounts for revenues received from technology fees to be used for new permit processing program.

PEG Cable TV Access Fee Fund - This fund accounts for Public Education and Government (PEG) Cable TV access fees.

Capitola Village and Wharf BIA Fund - This fund accounts for the receipt and expenditure of assessments for the Business Improvement Area.

Community Development Block Grants (CDBG) Fund - This fund accounts for grant revenue applied for and received from the Federal Department of Housing and Urban Development (HUD) through the California Small Cities Grant Program administered by California Department of Housing and Community Development (HCD) to address local community development needs.

CDBG Program Income - This fund accounts for housing loan principal and interest repayments for the Community Development Block Grant (CDBG) Program.

Affordable Housing – This fund accounts for a flexible local source of funding for the creation of new affordable housing, rehabilitation of existing affording housing, funding of local programs to assist lower and moderate income buyers purchase affordable housing, or as leverage of local funds for larger State and Federal grants.

Restricted Transient Occupancy Tax (TOT) Fund - This fund accounts for the 0.75% of restricted Transient Occupancy Tax (TOT) as approved by Capitola voters in 2018. The Restricted TOT Fund is used receive and distribute the 0.40% of restricted TOT revenues for local business groups and the

0.35% of restricted TOT revenue dedicated to early childhood and youth programming. 189
Item 8 C.

CITY OF CAPITOLA
Non-Major Governmental Funds
Combining Statements
June 30, 2021
85 DEBT SERVICE FUNDS
Beach and Village Lot II Debt Financing Fund - This fund accounts for the debt proceeds and the corresponding expenditures for the Beach and Village Lot II project. This fund is also used for the accumulation of resources for, and the payment of, long-term debt principal, interest, and related costs of the long-term debt issued by the City.

Pacific Cove Debt Financing Fund - This fund accounts for the debt proceeds and the corresponding expenditures for the Pacific Cove Mobile Home Park Relocation Plan. This fund is also used for the accumulation of resources for, and the payment of, long-term debt principal, interest, and related costs of the long-term debt issued by the City.
2007 POB Debt Service Fund - Accounts for the accumulation of resources for, and payment of longterm debt principal and interest related to the 2007 Pension Obligation Bonds. This fund did not have an adopted budget.
190
Item 8 C.

CITY OF CAPITOLA
Non-Major Governmental Funds
Combining Balance Sheet
June 30, 2021
86 SB1 Supplemental
Road Rehab and Law Gas
Maintenance Enforcement Tax
ASSETS
Cash and investments $ 184,731 $ 119,022 $ 80,056
Accounts receivable - 798 -
Due from other governments 18,400 86 56
Loans receivables, net - - -
Total Assets $ 203,131 $ 119,906 $ 80,112

LIABILITIES
Accounts payable $ - $ 20,845 $ 12,236
Due to other funds - - -
Deposits payable - - -
Total Liabilities - 20,845 12,236

FUND BALANCES
Restricted 203,131 99,061 67,876
Unassigned - - -
Total Fund Balances 203,131 99,061 67,876
Total Liabilities and Fund Balances $ 203,131 $ 119,906 $ 80,112

SPECIAL REVENUE FUNDS
191
Item 8 C.
87 PEG Capitola
Parking Technology Cable TV Village and
Wharf Reserve Fees Access Fee Wharf BIA CDBG
$ 137,778 $ 737 $ 83,433 $ 80,728 $ 30,924 $ 27,740
- - - - 3,296 -
106 - - 3,108 - -
- - - - - -
$ 137,884 $ 737 $ 83,433 $ 83,836 $ 34,220 $ 27,740
$ 2,664 $ - $ - $ - $ 4,820 $ 750
- - - - - -
1,000 - - - - -
3,664 - - - 4,820 750
134,220 737 83,433 83,836 29,400 26,990
- - - - - -
134,220 737 83,433 83,836 29,400 26,990
$ 137,884 $ 737 $ 83,433 $ 83,836 $ 34,220 $ 27,740

SPECIAL REVENUE FUNDS
192
Item 8 C.

CITY OF CAPITOLA
Non-Major Governmental Funds
Combining Balance Sheet (continued)
June 30, 2021
88 CDBG Ristricted
Program Affordable Transient
Income Housing Occupancy Tax
ASSETS
Cash and investments $ 109,284 $ 373,820 $ 81,524
Accounts receivable - - -
Due from other governments 93 214 -
Loans receivables, net 380,675 - -
Total Assets $ 490,052 $ 374,034 $ 81,524

LIABILITIES
Accounts payable $ - $ - $ 13,082
Due to other funds - - -
Deposits payable - - -
Total Liabilities - - 13,082

FUND BALANCES
Restricted 490,052 374,034 68,442
Unassigned - - -
Total Fund Balances 490,052 374,034 68,442
Total Liabilities and Fund Balances $ 490,052 $ 374,034 $ 81,524

SPECIAL REVENUE FUNDS
193
Item 8 C.
89 Beach & Pacific Non-Major
Village Lot II Cove Governmental
Debt Financing Debt Financing Funds
$ - $ 55,123 $ 1,364,900
- - 4,094
- 11 22,074
- - 380,675
$ - $ 55,134 $ 1,771,743
$ - $ - $ 54,397
38,986 - 38,986
- - 1,000
38,986 - 94,383
- 55,134 1,716,346
(38,986) - (38,986)
(38,986) 55,134 1,677,360
$ - $ 55,134 $ 1,771,743

DEBT SERVICE FUNDS
194
Item 8 C.

CITY OF CAPITOLA
Non-Major Governmental Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended June 30, 2021
90 SB1 Supplemental
Road Rehab and Law Gas
Maintenance Enforcement Tax

REVENUES
Taxes $ - $ - $ 225,061
Licenses and permits - - -
Intergovernmental 185,820 119,042 -
Charges for services - - -
Use of money and property 425 399 223
Other revenue - - -
Total Revenues 186,245 119,441 225,284

EXPENDITURES
Current:

General Government - - -
Public safety - 91,942 -
Community development - - -
Culture and recreation - - -
Transportation - - 165,752
Debt service:

Principal - - -
Interest - - -
Total Expenditures - 91,942 165,752
Excess (Deficiency) of Revenues
over (Under) Expenditures 186,245 27,499 59,532

OTHER FINANCING SOURCES (USES)
Transfers in - - -
Transfers out - - -
Total Other Financing Sources (Uses) - - -
Net change in fund balances 186,245 27,499 59,532
Fund Balances, beginning of year 16,886 71,562 8,344
Fund Balances, end of year $ 203,131 $ 99,061 $ 67,876

SPECIAL REVENUE FUNDS
195
Item 8 C.
91 CDBG Restricted
Program Affordable Transient
Income Housing Occupancy Tax

REVENUES
Taxes $ - $ - $ -
Licenses and permits - - -
Intergovernmental - - -
Charges for services - 77,089 -
Use of money and property 525 839 -
Other revenue - 6,086 -
Total Revenues 525 84,014 -

EXPENDITURES
Current:

General Government - - (71,684)
Public safety - - -
Community development 3,310 - -
Culture and recreation - - -
Transportation - - -
Debt service:

Principal - - -
Interest - - -
Total Expenditures 3,310 - (71,684)
Excess (Deficiency) of Revenues
over (Under) Expenditures (2,785) 84,014 71,684

OTHER FINANCING SOURCES (USES)
Transfers in - - -
Transfers out - (25,000) (27,286)
Total Other Financing Sources (Uses) - (25,000) (27,286) Net change in fund balances (2,785) 59,014 44,398
Fund Balances, beginning of year 492,837 315,020 24,044 Fund Balances, end of year $ 490,052 $ 374,034 $ 68,442

SPECIAL REVENUE FUNDS
196
Item 8 C.

CITY OF CAPITOLA
Non-Major Governmental Funds
Combining Statement of Revenues, Expenditures (continued) and Changes in Fund Balances
Year Ended June 30, 2021
92 CDBG Restricted
Program Affordable Transient
Income Housing Occupancy Tax

REVENUES
Taxes $ - $ - $ -
Licenses and permits - - -
Intergovernmental - - -
Charges for services - 77,089 -
Use of money and property 525 839 -
Other revenue - 6,086 -
Total Revenues 525 84,014 -

EXPENDITURES
Current:

General Government - - (71,684)
Public safety - - -
Community development 3,310 - -
Culture and recreation - - -
Transportation - - -
Debt service:

Principal - - -
Interest - - -
Total Expenditures 3,310 - (71,684)
Excess (Deficiency) of Revenues
over (Under) Expenditures (2,785) 84,014 71,684

SPECIAL REVENUE FUNDS
197
Item 8 C.
93 Beach and Pacific Non-Major
Village Lot II Cove Governmental
Debt Financing Debt Financing Funds
$ - $ - $ 225,061
- - 14,042
- - 304,862
- - 121,225
- 55 125,126
- - 11,086
- 55 801,402
- - (57,396)
- - 91,942
- - 93,957
- - 79,020
- - 165,752
62,938 123,898 186,836
25,478 41,167 66,645
88,416 165,065 626,756
(88,416) (165,010) 174,646
88,616 165,066 280,968
- - (52,286)
88,616 165,066 228,682
200 56 403,328
(39,186) 55,078 1,274,032
$ (38,986) $ 55,134 $ 1,677,360

DEBT SERVICE FUNDS
198
Item 8 C.

CITY OF CAPITOLA
Senate Bill 1 – Road Rehab Fund
Non-Major Governmental Fund
Budgetary Comparison Schedule
Year Ended June 30, 2021
94 Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Intergovernmental $ 193,401 $ 193,401 $ 185,820 $ (7,581) Use of money and property - - 425 425
Total revenues 193,401 193,401 186,245 (7,156)
Expenditures:

Capital Outlay 193,401 193,401 - 193,401
Net change in fund balance - - 186,245 (200,557)
Fund balance, beginning of year 16,886 16,886 16,886 -
Fund balance, end of year $ 16,886 $ 16,886 $ 203,131 $ (200,557) Budgeted Amounts
199
Item 8 C.

CITY OF CAPITOLA
Supplemental Law Enforcement Fund
Non-Major Governmental Fund
Budgetary Comparison Schedule
Year Ended June 30, 2021
95 Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Intergovernmental $ 100,000 $ 100,000 $ 119,042 $ 19,042 Use of money and property 400 400 399 (1)
Total revenues 100,400 100,400 119,441 19,041
Expenditures:

Current:

Public safety 98,000 98,000 91,942 6,058
Net change in fund balance 2,400 2,400 27,499 25,099
Fund balance, beginning of year 71,562 71,562 71,562 -
Fund balance, end of year $ 73,962 $ 73,962 $ 99,061 $ 25,099 Budgeted Amounts
200
Item 8 C.

CITY OF CAPITOLA
Gas Tax Fund
Non-Major Governmental Fund
Budgetary Comparison Schedule
Year Ended June 30, 2021
96 Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Taxes $ 259,800 $ 259,800 $ 225,061 $ (34,739)
Use of money and property - - 223 223
Total revenues 259,800 259,800 225,284 (34,516)
Expenditures:

Current:

Transportation 259,800 259,800 165,752 94,048
Net change in fund balance - - 59,532 59,532
Fund balance, beginning of year 8,344 8,344 8,344 -
Fund balance, end of year $ 8,344 $ 8,344 $ 67,876 $ 59,532 Budgeted Amounts
201
Item 8 C.

CITY OF CAPITOLA
Wharf Fund
Non-Major Governmental Fund
Budgetary Comparison Schedule
Year Ended June 30, 2021
97 Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Use of money and property $ 88,100 $ 88,100 $ 122,022 $ 33,922 Expenditures:

Current:

Culture and recreation 88,100 88,100 79,020 9,080
Net change in fund balance - - 43,002 43,002
Fund balance, beginning of year 91,218 91,218 91,218 -
Fund balance, end of year $ 91,218 $ 91,218 $ 134,220 $ 43,002 Budgeted Amounts
202
Item 8 C.

CITY OF CAPITOLA
Parking Reserve Fund
Non-Major Governmental Fund
Budgetary Comparison Schedule
Year Ended June 30, 2021
98 Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Other revenue $ - $ - $ - $ -
Expenditures:

Current:

Transportation - - - -
Total expenditures - - - -
Other financing sources (uses):

Transfers in 100,000 100,000 - (100,000)
Transfers out (100,000) (100,000) - 100,000
Total Other Financing
Sources (Uses) - - - -
Net change in fund balance - - - -
Fund balance, beginning of year 737 737 737 -
Fund balance, end of year $ 737 $ 737 $ 737 $ -
Budgeted Amounts
203
Item 8 C.

CITY OF CAPITOLA
Technology Fees Fund
Non-Major Governmental Fund
Budgetary Comparison Schedule
Year Ended June 30, 2021
99 Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Charges for services $ 9,000 $ 9,000 $ 14,847 $ 5,847
Expenditures:

Current:

Community development 9,000 9,000 4,649 4,351
Net change in fund balance - - 10,198 10,198
Fund balance, beginning of year 73,235 73,235 73,235 -
Fund balance, end of year $ 73,235 $ 73,235 $ 83,433 $ 10,198 Budgeted Amounts

204
Item 8 C.

CITY OF CAPITOLA
PEG Cable TV Access Fee Fund
Non-Major Governmental Fund
Budgetary Comparison Schedule
Year Ended June 30, 2021
100
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Licenses and permits $ 15,000 $ 15,000 $ 14,042 $ (958) Use of money and property 500 500 452 (48)
Total revenues 15,500 15,500 14,494 (1,006)
Expenditures:

Current:

General government - 21,000 14,288 6,712
Net change in fund balance 15,500 (5,500) 206 5,706
Fund balance, beginning of year 83,630 83,630 83,630 -
Fund balance, end of year $ 99,130 $ 78,130 $ 83,836 $ 5,706 Budgeted Amounts
205
Item 8 C.

CITY OF CAPITOLA
Capitola Village and Wharf BIA Fund
Non-Major Governmental Fund
Budgetary Comparison Schedule
Year Ended June 30, 2021
101
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Charges for services $ 83,356 $ 83,356 $ 29,289 $ (54,067) Use of money and property - - 186 186
Other revenue 8,450 8,450 5,000 (3,450)
Total revenues 91,806 91,806 34,475 (57,331)
Expenditures:

Current:

Community development 84,880 84,880 73,675 11,205
Excess (deficiency) of revenues
over (under) expenditures 6,926 6,926 (39,200) (46,126) Other financing sources (uses):

Transfers In - - 27,286 27,286
Net change in fund balance 6,926 6,926 (11,914) (18,840) Fund balance, beginning of year 41,314 41,314 41,314 -
Fund balance, end of year $ 48,240 $ 48,240 $ 29,400 $ (18,840) Budgeted Amounts
206
Item 8 C.

CITY OF CAPITOLA
CDBG Fund
Non-Major Governmental Fund
Budgetary Comparison Schedule
Year Ended June 30, 2021
102
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Other revenue $ - $ - $ - $ -
Expenditures:

Current:

Community development - - 12,323 (12,323)
Net change in fund balance - - (12,323) (12,323)
Fund balance, beginning of year 39,313 39,313 39,313 -
Fund balance, end of year $ 39,313 $ 39,313 $ 26,990 $ (12,323) Budgeted Amounts
207
Item 8 C.

CITY OF CAPITOLA
CDBG Program Income Fund
Non-Major Governmental Fund
Budgetary Comparison Schedule
Year Ended June 30, 2021
103
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Use of money and property $ - $ - $ 525 $ 525
Expenditures:

Current:

Community development - - 3,310 (3,310)
Net change in fund balance - - (2,785) 3,835
Fund balance, beginning of year 492,837 492,837 492,837 - Fund balance, end of year $ 492,837 $ 492,837 $ 490,052 $ 3,835 Budgeted Amounts
208
Item 8 C.

CITY OF CAPITOLA
Affordable Housing Fund
Non-Major Governmental Fund
Budgetary Comparison Schedule
Year Ended June 30, 2021
104
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Charges for services $ 30,000 $ 30,000 $ 77,089 $ 47,089 Use of money and property - - 839 839
Other revenue - - 6,086 6,086
Total revenues 30,000 30,000 84,014 54,014
Other financing sources (uses):

Transfers out (25,000) (25,000) (25,000) -
Net change in fund balance 5,000 5,000 59,014 54,014
Fund balance, beginning of year 315,020 315,020 315,020 - Fund balance, end of year $ 320,020 $ 320,020 $ 374,034 $ 54,014 Budgeted Amounts
209
Item 8 C.

CITY OF CAPITOLA
Restricted TOT Fund
Non-Major Governmental Fund
Budgetary Comparison Schedule
Year Ended June 30, 2021
105
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Other revenue $ 31,720 $ 31,720 $ - $ (31,720)
Expenditures:

Current:

General government: 24,300 24,300 (71,684) 95,984
Excess (deficiency) of revenues
over (under) expenditures 7,420 7,420 71,684 95,984
Other financing sources (uses):

Transfers out (7,400) (7,400) (27,286) (19,886)
Net change in fund balance 20 20 44,398 76,098
Fund balance, beginning of year 24,044 24,044 24,044 -
Fund balance, end of year $ 24,064 $ 24,064 $ 68,442 $ 76,098 Budgeted Amounts
210
Item 8 C.

CITY OF CAPITOLA
Beach and Village Lot II Debt Financing Fund
Non-Major Governmental Fund
Budgetary Comparison Schedule
Year Ended June 30, 2021
106
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Other revenue $ - $ - $ - $ -
Expenditures:

Debt service expenditures:

Principal 62,938 62,938 62,938 -
Interest 25,478 25,478 25,478 -
Total expenditures 88,416 88,416 88,416 -
Excess (deficiency) of revenues
over (under) expenditures (88,416) (88,416) (88,416) -
Other financing sources (uses):

Transfers in 88,616 88,616 88,616 -
Net change in fund balance 200 200 200 -
Fund balance, beginning of year (39,186) (39,186) (39,186) - Fund balance, end of year $ (38,986) $ (38,986) $ (38,986) $ - Budgeted Amounts
211
Item 8 C.

CITY OF CAPITOLA
Pacific Cove Debt Financing Fund
Non-Major Governmental Fund
Budgetary Comparison Schedule
Year Ended June 30, 2021
107
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:

Use of money and property $ - $ - $ 55 $ 55
Debt service expenditures:

Principal 123,898 123,898 123,898 -
Interest 41,167 41,167 41,167 -
Total expenditures 165,065 165,065 165,065 -
Excess (deficiency) of revenues
over (under) expenditures (165,065) (165,065) (165,010) 55 Other financing sources (uses):

Transfers in 165,066 165,066 165,066 -
Net change in fund balance 1 1 56 55
Fund balance, beginning of year 55,078 55,078 55,078 -
Fund balance, end of year $ 55,079 $ 55,079 $ 55,134 $ 55 Budgeted Amounts
212
Item 8 C.

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213
Item 8 C.

CITY OF CAPITOLA
Comprehensive Annual Financial Report
Statistical Section (Unaudited)
Table of Contents
Fiscal Year Ended June 30, 2021
108
This part of The City of Capitola's Annual Comprehensive Financial Report presents detailed information as context for understanding the information in the financial statements, note disclosures, and required supplementary information and provides additional information useful in assessing the City's economic condition.

Financial Trends
The financial trends shown on the following charts are designed to help the reader understand the City's performance trends and relative well-being over time.

Net Position by Component 110
Changes in Net Position 111
Fund Balances of Government Funds 113
Change in Fund Balances of Governmental Funds 115
General Revenues by Source 117
Revenue Capacity
The sources and relative value of revenues shown on the following charts are designed to assist the reader in assessing the City's most significant sources of revenue and the performance of these sources over time.

Net Taxable Assessed Value History 118
Assessed Value of Taxable Property 119
Direct and Overlapping Property Tax Rates 120
Top Ten Property Taxpayers 121
Property Tax Levies and Collections 122
Top 25 Sales Tax Taxpayers 123
214
Item 8 C.

CITY OF CAPITOLA
Comprehensive Annual Financial Report
Statistical Section (Unaudited)
Table of Contents, Continued
Fiscal Year Ended June 30, 2021
109
Debt Capacity
Debt is a useful tool for financing capital acquisition, construction, and meeting long term financing needs. The following charts present information to help the reader assess the City's current debt levels and capacity for future debt.

Ratios of Outstanding Debt by Type 124
Ratios of General Bonded Debt Outstanding 125
Direct and Overlapping Debt 126
Legal Debt Margin Information 127
Pledged-Revenue Coverage 128
Demographic and Economic Information
The demographic and economic information provided in the charts below is designed to help the reader understand the general socioeconomic environment in which the City's financial activities take place.

Demographic and Economic Statistics 129
Principal Employers - Top Ten 130
Full-time and Part-time City Employees by Function 131
Operating Information
The following charts provide information to show the size and nature of the City's operations in order to assist the reader in understanding the services the City is able to provide and activities it is able to undertake within its available financial framework.

Operating Indicators by Function 132
Capital Asset Statistics by Function 133
Unless otherwise noted, the source of the information noted in the tables below were from the prior year’s City’s Annual Comprehensive Financial Reports. 215
Item 8 C.

CITY OF CAPITOLA, CALIFORNIA
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
110
2012 2013 2014 2015* 2016 2017 2018 2019 2020 2021
Primary Government activities
Net Investment in Capital
Assets $ 11,918 $ 11,521 $ 12,751 $ 11,604 $ 13,154 $ 14,457 $ 15,773 $ 18,563 $ 27,367 $ 32,053 Restricted for
Public Safety 51 101 119 101 98 8 10 17 72 99
Transportation 2,445 1,513 416 393 113 119 420 630 26 917 Community Development 1,141 3,511 3,852 6,357 6,599 8,811 11,191 14,105 14,221 10,821 Culture and Recreation 88 77 116 141 143 159 121 146 175 218 Total Restricted 3,725 5,202 4,503 6,992 6,953 9,097 11,742 14,896 14,493 12,055 Unrestricted 4,134 4,893 5,957 (9,381) (8,884) (9,883) (11,536) (10,563) (12,887) (10,987) Total Primary Government net
position $ 19,777 $ 21,616 $ 23,211 $ 9,215 $ 11,223 $ 13,671 $ 15,978 $ 22,896 $ 28,974 $ 33,121 NOTES: The City of Capitola has no business-type activities; governmental and primary government figures are the same. *FY 2014/15 reflects the first year of the implementation of GASB Statement Nos. 68 and 71, which resulted in a prior period restatement of ($15,436,035) to the Governmental Activities.

Source: City of Capitola Finance Department.
216
Item 8 C.

CITY OF CAPITOLA, CALIFORNIA
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
111
2012 2013 2014 2015*
General government $ 4,851 $ 4,862 $ 3,403 $ 3,582
Public safety 5,491 5,411 5,412 6,181
Community development 3,471 727 741 809
Culture and recreation 1,010 1,398 970 974
Transportation 2,556 2,456 3,070 2,866
Interest and other charges 419 288 211 217
Total primary government expenses 17,798 15,142 13,807 14,629 PROGRAM REVENUES:

Primary government activities
Charges for services:

General government 1,059 948 1,109 1,012
Public safety 759 732 782 806
Community development 1,145 523 683 633
Culture and recreation 751 685 749 765
Transportation 166 145 131 120
Operating grants and contributions 3,131 2,292 313 657
Capital grants and contributions - 3 15 12
Total primary govt program revenues 7,011 5,328 3,782 4,005 NET PRIMARY GOVT REV/(EXP) (10,787) (9,814) (10,025) (10,624)

GENERAL REVENUES AND OTHER
CHANGES IN NET POSITION:

Primary government activities
Taxes:

Property Taxes 2,993 1,778 1,849 2,041
Transaction and Use Tax (.25%) 932 1,510 - -
Sales and Use tax 3,322 4,531 2,036 7,330
Transient occupancy taxes 913 1,074 1,263 1,276
Franchise taxes 483 479 497 508
Business license tax 281 292 287 284
Other taxes
Intergovernmental 947 241 327 265
Investment income 190 131 107 119
Other general revenues 309 497 238 242
Transfers
Extraordinary Item 380 1,118 - -
Total primary government activities 10,750 11,651 6,604 12,065 CHANGES IN NET POSITION:

Total primary government activities $ (37) $ 1,837 $ (3,421) $ 1,441 Source: City of Capitola Finance Department
* Fiscal year 2014-15 reflects the first year of the implementation of GASB Statement Nos. 68 and 71, which resulted in a prior restatment of ($15,436,035) to the Governmental Activities. GASB 75 restatement was refelcted in 2018 for $172,688.

EXPENSES:

Primary government activities
Fiscal Year
217
Item 8 C.

CITY OF CAPITOLA, CALIFORNIA
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
112
2016 2017 2018 2019 2020 2021
$ 3,557 $ 3,975 $ 3,594 $ 3,595 $ 3,876 $ 3,736
6,211 7,462 6,822 7,037 7,810 7,237
1,076 1,090 1,057 956 1,097 979
1,150 1,302 1,228 1,192 1,793 1,107
3,218 3,212 3,382 3,384 3,263 3,092
158 119 77 76 68 67
15,370 17,160 16,161 16,241 17,907 16,217
970 911 1,057 1,132 1,022 1,057
701 597 601 579 554 509
727 637 695 528 619 539
751 640 636 614 633 274
112 116 34 44 47 39
400 3,329 1,832 650 501 3,125
511 146 413 5,678 7,357 1,167
4,172 6,376 5,267 9,224 10,734 6,711
(11,198) (10,784) (10,893) (7,017) (7,174) (9,507)
2,194 2,288 2,498 2,630 2,712 2,794
- - - - - -
7,860 7,959 7,688 8,077 7,441 7,705
1,452 1,458 1,457 1,582 1,263 1,529
524 535 555 545 557 562
298 302 308 308 330 292
226 201 223 224 233 232
227 264 237 450 699 335
424 225 406 119 16 204
- - - - - -
13,205 13,232 13,374 13,935 13,251 13,653
$ 2,007 $ 2,448 $ 2,480 $ 6,918 $ 6,077 $ 4,147
Fiscal Year
218
Item 8 C.

CITY OF CAPITOLA, CALIFORNIA
Fund Balances of Government Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
113
2012 2013 2014 2015 2016

GENERAL FUND
Fund Balance GASB 54
Nonspendable 1,970 2,024 620 618 524
Restricted - - - - 300
Assigned - 570 584 1,049 1,262
Unassigned 2,608 2,846 3,686 4,338 4,599
Total General Fund 4,578 5,440 4,890 6,005 6,685

ALL OTHER GOVERNMENT FUNDS
Fund Balance GASB 54
Nonspendable 586 - - - -
Restricted 1,858 1,497 1,043 985 736
Assigned 1,045 1,046 1,764 2,457 2,745
Unassigned (148) (19) (2) (41) (215)
Total All Other Govt Funds 3,341 2,524 2,805 3,401 3,266 TOTAL $ 7,919 $ 7,964 $ 7,695 $ 9,406 $ 9,951
Source: City of Capitola Finance Department.
219
Item 8 C.
114
2017 2018 2019 2020 2021
426 58 21 - -
300 816 867 917 1,016
1,277 1,277 1,344 1,344 1,374
5,345 4,603 5,627 5,044 8,923
7,348 6,755 7,859 7,305 11,313
- - - - -
834 11,742 14,896 14,493 12,110
1,927 1,633 2,110 2,603 1,842
(39) (39) (39) (365) (39)
2,722 13,336 16,968 16,731 13,913
$ 10,070 $ 20,091 $ 24,826 $ 24,036 $ 25,226
220
Item 8 C.

CITY OF CAPITOLA
Change in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
115
2012 2013 2014 2015
REVENUES:

Taxes $ 9,878 $ 9,607 $11,112 $11,416
Licenses & permits 630 520 703 629
Intergovernmental 2,755 837 637 757
Fines and forfeitures 724 688 731 671
Charges for services 1,907 1,862 2,053 2,078
Use of money and property 403 235 219 228
Other 90 238 128 132
Total revenues 16,387 13,987 15,583 15,911
EXPENSES:

Current:

General government 4,034 3,865 2,749 2,443
Public safety 5,436 5,369 5,838 5,917
Community development 3,458 712 722 823
Culture and recreation 1,041 1,118 966 978
Transportation 2,204 2,157 2,782 2,577
Capital outlay 757 551 3,328 535
Subtotal 16,930 13,772 16,385 13,273
Debt service:

Debt issuance costs 43 38 12 -
Principal retirement 673 1,031 616 699
Interest and agent fees 394 320 210 229
Subtotal 1,110 1,389 838 928
Total expenditures 18,040 15,161 17,223 14,201
Excess/(deficiency) of revenues over/(under) expenditures (1,653) (1,174) (1,640) 1,710 OTHER FINANCING SOURCES/(USES):

Sale of capital assets 2,390 99 - -
Transfers in 2,272 2,151 1,861 2,091
Transfers out (2,272) (2,151) (1,861) (2,091)
Issuance of bonds - - 1,372 -
Total other financing sources/(uses) 2,390 99 1,372 -
Special Items
Flood Disaster loss/recovery (623) 1,118 - -
Gain/Loss on RDA dissolution (190) - - -
Net change in fund balances (76) 43 (268) 1,710
Beginning fund balance, as restated 7,995 7,920 7,963 7,695 Changes in fund balance (76) 43 (268) 1,710
Ending fund balance $ 7,919 $ 7,963 $ 7,695 $ 9,405
Debt Service as a percentage of non-capital expenditures Total Expenditures $18,040 $15,161 $17,223 $14,201
Capitalized Portion of Capital Outlay 824 306 3,809 (153) Total Non-Capitalized Expenditures 17,216 14,855 13,414 14,354 Debt service: Principal and Interest 1,110 1,389 838 928 Debt service as a percentage of noncapital expenditures 6.45% 9.35% 6.25% 6.47% Note: Debt service as a percentage of noncapital expenditures reflects total governmental fund expenditures less the capital outlay shown separately in the Changes in Fund Balances schedule and any expenditures for capitalized assets contained within the functional expenditure categories. The sum of these items is reported in this calculation, as well as appearing as a reconciling item in the reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of the Governmental Funds to the Statement of Activities. 221
Item 8 C.
116
2016 2017 2018 2019 2020 2021
$12,250 $12,436 $12,416 $13,097 $12,307 $13,064
671 626 766 663 726 679
656 560 558 522 520 496
787 1,475 2,250 6,030 7,521 3,832
2,165 1,970 2,007 2,020 1,959 1,536
324 376 237 450 699 335
328 114 406 378 252 422
17,181 17,557 18,641 23,159 23,985 20,364
2,712 3,153 2,824 2,819 2,965 3,021
6,134 6,495 6,333 6,552 6,467 6,075
1,005 976 967 913 963 859
1,039 1,137 1,154 1,130 1,710 1,026
2,744 2,637 2,852 2,981 2,714 2,529
2,074 2,113 1,924 3,770 9,698 5,410
15,708 16,511 16,054 18,165 24,518 18,921
- - - - - -
764 788 829 182 186 187
163 139 95 78 71 67
927 927 924 259 257 253
16,635 17,438 16,977 18,424 24,775 19,174
546 119 1,664 4,735 (790) 1,190
- - - - - -
2,784 1,815 2,865 1,676 1,734 324
(2,784) (1,815) (2,865) (1,676) (1,734) (324)
- - - - - -
- - - - - -
- - - - - -
- - - - - -
546 119 1,664 4,735 (790) 1,190
9,405 9,951 10,070 20,091 24,826 24,036
546 119 1,664 4,735 (790) 1,190
$ 9,951 $10,070 $11,734 $24,826 $24,036 $25,226
$16,635 $17,438 $16,977 $18,424 $24,775 $19,174
2,079 2,231 2,063 3,681 9,535 5,410
14,556 15,207 14,914 14,743 15,240 13,764
927 927 924 259 257 253

6.37% 6.10% 6.19% 1.76% 1.69% 1.84%
Source: City of Capitola Finance Department.
222
Item 8 C.

CITY OF CAPITOLA, CALIFORNIA
General Revenues by Source
Last Ten Fiscal Years
(amounts expressed in thousands)
General Revenue By Source
117
Fiscal
Year
Sales Tax
Revenue (1)
Property
Taxes (2)
Transient
Occupancy
Tax
Franchise
Taxes
Business
Licenses
Investment
Income
Miscellaneous,
Intergovernmental
and Other Revenues
Total General
Revenues
2012 $ 5,200,303 $ 2,993,125 $ 912,851 $ 482,782 $ 281,336 $ 190,390 $ 309,110 $ 10,369,897 2013 6,040,542 1,778,037 1,074,507 478,627 291,642 131,166 398,320 10,192,841 2014 7,179,727 1,849,375 1,263,175 496,759 286,638 107,218 564,801 11,747,693 2015 7,330,443 2,041,248 1,275,716 507,517 284,474 118,770 506,803 12,064,971 2016 7,859,511 2,193,588 1,451,512 524,214 298,020 227,142 650,656 13,204,643 2017 7,959,086 2,288,341 1,457,704 534,513 301,545 264,040 426,525 13,231,754 2018 7,687,959 2,721,299 1,456,899 555,475 308,236 237,383 406,456 13,373,707 2019 8,076,583 2,854,103 1,581,864 545,424 307,930 450,099 119,011 13,935,014 2020 7,440,745 2,945,342 1,262,816 556,708 329,711 699,199 16,383 13,250,904 2021 7,705,348 3,026,024 1,529,015 561,969 291,590 335,472 203,806 13,653,224 NOTES:
(1) A 0.25% District Transactions and Use Tax took effect April 1, 2005 and in 2008 was extended through December 2017. An additional 0.25% Permanent Retail Transactions and Use Tax took effect April 1, 2013, bringing the local tax rate to 0.50%. (2) As of 2006, Property Taxes In Lieu of Vehicle License Fees were included as part of Property Tax distributions by the State of California. Dissolution of California Redevelopment Agencies in February 2012 lowered agency property tax receipts by the size of the previous redevelopment tax increment.

Source: City of Capitola Finance Department.

General Revenue By Source
223
Item 8 C.

CITY OF CAPITOLA, CALIFORNIA
Net Taxable Assessed Value History
Last Ten Fiscal Years
(amounts expressed in thousands)
118
Fiscal
Year Secured Unsecured
SBE
Nonunitary
Total
Assessed
Value % Change
2012 $ 1,717,637 $ 66,695 $ 579 $ 1,784,911 0.72%
2013 1,726,023 71,136 83 1,797,242 0.69%
2014 1,784,629 75,387 84 1,860,100 3.50%
2015 1,906,637 81,887 84 1,988,608 6.91%
2016 2,026,035 76,862 83 2,102,980 5.75%
2017 2,156,464 77,622 84 2,234,170 6.24%
2018 2,294,174 84,389 84 2,378,647 6.47%
2019 2,412,636 87,922 111 2,500,669 5.13%
2020 2,530,955 81,815 111 2,612,882 4.49%
2021 2,657,657 77,632 111 2,735,400 4.69%
NOTES: California Constitution Article 13A establishes a county assessor "full cash value" property valuation formulated on varying base years and not at current fair market value. As a result, there is not a reasonable basis available for estimating actual value of taxable property for the City of Capitola for comparative purposes.

Source: HdL Companies, Santa Cruz County Assessor 2020-21 Combined Tax Rolls.

City of Capitola
224
Item 8 C.

CITY OF CAPITOLA, CALIFORNIA
Assessed Value of Taxable Property
Last Ten Fiscal Years
(amounts expressed in thousands)
119
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Residential $ 1,241,453 $ 1,233,173 $ 1,289,844 $ 1,413,964 $ 1,515,227 $ 1,590,959 $ 1,681,534 $ 1,782,996 $ 1,878,890 $1,981,312 Commercial 369,399 387,425 384,916 379,721 392,427 439,224 476,377 487,098 501,612 523,379 Industrial 14,239 13,869 14,079 14,130 14,437 14,612 19,124 19,557 21,914 22,319 Institutional 14,788 15,078 14,662 14,716 15,134 15,966 15,054 9,927 10,943 9,290 Miscellaneous 6 6 6 6 6 6 267 272 277 283
Recreational 10,197 10,401 10,609 8,844 9,705 9,791 9,996 10,311 10,525 10,592 Vacant 13,303 13,370 13,823 14,934 15,263 16,274 15,393 21,333 19,848 19,308 SBE Nonunitary 579 83 84 84 83 84 84 110 110 111
Cross Reference 54,252 52,701 56,690 60,322 63,836 69,632 76,429 81,138 86,943 91,174 Unsecured 66,695 71,136 75,387 81,887 76,862 77,622 84,389 87,922 81,815 77,632 TOTALS $ 1,784,911 $ 1,797,242 $ 1,860,100 $ 1,988,608 $ 2,102,980 $ 2,234,170 $ 2,378,648 $ 2,500,664 $ 2,612,877 $ 2,735,400 Total Direct
Property Tax Rate 0.17987 0.18035 0.05510 0.05461 0.05456 0.05452 0.05452 0.05438 0.05441 0.05372 NOTES: Exempt values are not included in Total.

In 1978, the voters of the State of California passed Proposition 13, which limited taxes to a total maximum rate of 1%, based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

Source: HdL Companies, Santa Cruz County Assessor 2011-12 and 2020-21 Combined Tax Rolls.

Category
225
Item 8 C.

CITY OF CAPITOLA, CALIFORNIA
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Rate per $100 of taxable value)
120
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Basic Levy (1) 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Redevelopment Rate (2) 1.00000 -2.00000 n/a n/a n/a n/a n/a n/a n/a n/a Total Direct Property Tax Rate (3) 0.17987 0.18035 0.05510 0.05461 0.05456 0.05452 0.05452 0.05438 0.05441 0.05372 Overlapping Property Tax Rates (4)
Santa Cruz High School 0.02602 0.02615 0.02333 0.02087 0.01961 0.01848 0.04461 0.04272 0.03889 0.03800 Soquel Elementary School 0.02406 0.02435 0.02238 0.02045 0.01846 0.01811 0.04539 0.04251 0.03948 0.04140 Live Oak Elementary School 0.05295 0.05514 0.05383 0.05279 0.04600 0.03574 0.01988 0.02117 0.02072 0.02106 Cabrillo College 0.03896 0.04048 0.04047 0.03694 0.03669 0.03260 0.02425 0.02102 0.02117 0.02475 Total Overlapping Property Tax Rate
(3)

0.14199 0.14612 0.14001 0.13105 0.12076 0.10493 0.13413 0.12742 0.12026 0.12521 City Share of 1% levy per Proposition
13 (5) 0.07471 0.07471 0.07471 0.07471 0.07471 0.07471 0.07471 0.07471 0.07471 0.07471 Total Direct Rate (3) 0.17987 0.18035 0.05510 0.05461 0.05456 0.05452 0.05452 0.05438 0.05441 0.05438 Total Direct & Overlapping Rate 1.14199 1.14612 1.14001 1.13105 1.12076 1.10493 1.13413 1.12743 1.12026 1.12519 NOTES:
(1) In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. (2) Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012-13 and years thereafter. (3) Because basic and debt rates vary by tax rate area individual rates cannot be summed. The Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section information. (4) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.
(5) City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. ERAF general fund tax shifts may not be included in tax ration figures.

SOURCE: HdL Companies, Santa Cruz County Assessors Office.

City Direct Property Tax Rates
226
Item 8 C.

CITY OF CAPITOLA, CALIFORNIA
Top Ten Property Tax Payers
Last Ten Fiscal Years
121
Taxpayer
Net Assessed
Valuation Rank
Percent of Total
City Net
Assessed
Valuation
Net Assessed
Valuation Rank
Percent of
Total City Net
Assessed
Valuation
MGP XI Capitola LLC $ 124,068,307 1 4.54%
Santa Cruz Seaside Company 33,016,341 2 1.21%
Aspromonte Hotels LLCFinance LLC 21,051,964 3 0.77%
Target Corporation 19,009,524 4 0.69% $ 10,000,000 6 0.0056 George Ow Jr. Trustees 15,684,387 5 0.57% 13,421,248 4 0.75% Loma Vista Estates Owners Assoc. Inc. 14,167,540 6 0.52% Brown Ranch Properties 12,505,643 7 0.46% 10,805,129 5 0.61% Blai LP 11,787,243 8 0.43%
Melanie Kett Wirtanen Trustee 9,319,724 9 0.34% 7,956,441 7 0.45% 850 Rosedale LLC 9,085,429 10 0.33% 7,756,701 8 0.43%
Macerich Partnership LP 68,041,246 1 3.81%
Macerich Capitola Adjacent LP 14,736,835 2 0.83%
Macquire Capitola Villas INC 14,553,438 3 0.82%
Macy's 7,465,149 9 0.42%
1100 41st Avenue LLC 7,284,451 10 0.41%
$ 269,696,102 9.86% $ 162,020,638 9.09%
Memo: Gross Assessed Value $ 2,735,399,795 100.00% $ 1,784,910,506 100.00% Source: HdL Companies, Santa Cruz County Assessor 2010-11 and 2019-20 Combined Tax Rolls and the SBE Non Unitary Tax Roll. 2020-21 2011-12
227
Item 8 C.

CITY OF CAPITOLA, CALIFORNIA
Property Tax Levies and Collections
Last Ten Fiscal Years
122
Amount
Percent of
Levy
Collections in
Subsequent
Years Amount
Percent of
Levy
2012 $ 1,900,533 $ 1,900,533 100% $ - $ 1,900,533 100%
2013 899,974 899,974 100% - 899,974 100%
2014 927,676 927,676 100% - 927,676 100%
2015 1,060,919 1,060,919 100% - 1,060,919 100%
2016 1,104,034 1,104,034 100% - 1,104,034 100%
2017 1,203,689 1,203,689 100% - 1,203,689 100%
2018 1,331,609 1,331,609 100% - 1,331,609 100%
2019 1,406,900 1,406,900 100% - 1,406,900 100%
2020 1,452,553 1,452,553 100% - 1,452,553 100%
2021 1,420,380 1,420,380 100% - 1,420,380 100%
NOTES: Figures presented include City property taxes and Redevelopment Agency tax increment, as well as amounts collected by the City and Redevelopment Agency that are pass throughs for other agencies, and real and personal property. The figures do not include Property Taxes In Lieu of Vehicle License Fees. In FY 1993-94, Santa Cruz County adopted the Teeter Plan under which the City of Capitola receives its entire tax levy, regardless of delinquencies as long as it qualifies for the Teeter Plan.

Reduction in property taxes levied from 2011 through 2020 reflects the 2/1/2012 State of California dissolution of Redevelopment Agencies and the associated elimination of tax increment received by the City of Capitola.

Fiscal Year Ended
June
30,
Property Taxes
Levied for the
Fiscal Year
Collected within the Fiscal
Year of Levy Total Collections to Date
Source: Santa Cruz County Auditor-Controller, City of Capitola Finance Department. 228
Item 8 C.

CITY OF CAPITOLA, CALIFORNIA
Top 25 Sales Tax Taxpayers
Listed alphabetically
123
TOP 25 SALES TAX TAXPAYERS
As of June 30, 2021
Ajs Fuel Market Of Capitola Service Stations
Bed Bath & Beyond Home Furnishings
BevMo Convenience Stores/Liquor
Capitola Coast Service Stations
Capitola Shell Service Stations
Chevron Service Stations
CVS Pharmacy Drug Stores
Kohls Department Stores
Lucky Grocery Stores
Macys Department Stores
Nob Hill General Store Grocery Stores
O Neill Surf Shop Sporting Goods/Bike Stores
Outdoor Supply Hardware Building Materials
Pizza My Heart Quick-Service Restaurants
Ross Family Apparel
Royal Wholesale Electric Plumbing/Electrical Supplies
Santa Cruz Subaru New Motor Vehicle Dealers
Santa Cruz Toyota New Motor Vehicle Dealers
Sierra Utility Sales Electrical Equipment
Target Discount Dept Stores
Toyota Lease Trust Auto Lease
Trader Joes Grocery Stores
Ulta Beauty Specialty Stores
Whole Foods Market Grocery Stores
Zelda's on the Beach Casual Dining
NOTES:

The list is in alphabetical order and is not indicative of relative nor total sales volume.

Source: HdL
229
Item 8 C.

CITY OF CAPITOLA, CALIFORNIA
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in dollars unless otherwise noted)
124
Fiscal Year
Ended June 30
General
Obligation
Bonds
Lease
Revenue
Bonds Other debt
Tot. Gov't./
Primary Gov't.

Activities
Debt as a %
of Taxable
Assessed
Property
Value
Debt as a %
of Total
Personal
Income
Debt per
Capita
2012 $ 3,375,000 $ - $ 2,428,249 $ 5,803,249 0.33% 1.76% 581 2013 2,890,000 - 1,882,272 4,772,272 0.27% 1.43% 478
2014 2,375,000 - 3,153,788 5,528,788 0.30% 1.55% 545
2015 1,830,000 - 3,000,243 4,830,243 0.24% 1.32% 483
2016 1,255,000 - 2,811,059 4,066,059 0.19% 1.07% 401
2017 645,000 - 2,632,952 3,277,952 0.15% 0.84% 323
2018 - - 2,449,251 2,449,251 0.10% 0.58% 232
2019 - - 2,267,652 2,267,652 0.09% 0.58% 221
2020 - - 2,081,485 2,081,485 0.08% 0.47% 206
2021 - - 1,894,649 1,894,649 0.07% 0.45% 188
Source: City of Capitola Financial Statements.

Government/Total Primary Government Activities
NOTES: The City of Capitola has no business-type activities; governmental and total primary government figures are the same. Details regarding the City's outstanding debt can be found in the notes to the financial statements.

In July 2007, the City of Capitola issued a $5,040,000 Pension Obligation Bond (POB), which was used to pay off the City's CalPERS unfunded pension liability as of that point in time.

Other debt includes tax anticipation notes, county library long term debt, capital leases, notes payable, and RDA deferred pass throughs. Compensated absences, OPEB liability and net pension liability amounts are no longer included per GASB implementation guidelines.
230
Item 8 C.

CITY OF CAPITOLA, CALIFORNIA
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
(amounts expressed in dollars unless otherwise noted)
125
Debt as a %
of Taxable Debt as a %
General Assessed of Total
Fiscal Year Obligation Property Personal Debt per
Ended June 30 Bonds Value Income Capita
2012 $ 3,375,000 0.19% 1.02% $ 338
2013 2,890,000 0.16% 0.87% 289
2014 2,375,000 0.13% 0.67% 234
2015 1,830,000 0.10% 0.50% 183
2016 1,255,000 0.06% 0.33% 124
2017 645,000 0.03% 0.17% 63
2018 - 0.00% 0.00% -
2019 - 0.00% 0.00% -
2020 - 0.00% 0.00% -
2021 - 0.00% 0.00% -
NOTES: The City of Capitola has no business-type activities; governmental and total primary government figures are the same. Details regarding the City's outstanding debt can be found in the notes to the financial statements.

In July 2007, the City of Capitola issued a $5,040,000 Pension Obligation Bond (POB), which was used to pay off the City's CaIPERS unfunded pension liability as of that point in time.

Government/Total Primary Government Activities
231
Item 8 C.

CITY OF CAPITOLA, CALIFORNIA
Direct and Overlapping Debt
Fiscal Year ended June 30, 2019
126
2020-21 Assessed Valuation $ 2,735,653,131
Total Debt City's Share of Debt
OVERLAPPING TAX AND ASSESSMENT DEBT: % Applicable (1) 6/30/2021 6/30/2021 Cabrillo Joint Community College District 5.381% $ 109,958,214 $ 5,916,851 Santa Cruz City High School District 11.610% 150,795,968 17,507,412 Live Oak School District 6.268% 9,718,000 609,124
Soquel Union School District 39.115% 44,940,000 17,578,281 Santa Cruz Libraries Facilities Community Facilities District 5.992% 38,630,000 2,314,710 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 354,042,182 $ 43,926,378 Santa Cruz County Certificates of Participation 5.423% $ 65,060,193 $ 3,528,214 Santa Cruz County Office of Education Certificates of Participation 5.423% 7,790,192 422,462 Santa Cruz City High School District Certificates of Participation 11.610% 1,758,314 204,140 Live Oak School District Certificates of Participation 6.268% 12,013,973 753,036 Santa Cruz City Schools Certificates of Participation 11.610% 860,000 99,846 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $ 87,482,672 $ 5,007,698 TOTAL CITY'S DIRECT DEBT $ 1,894,649
COMBINED TOTAL DEBT $ 48,934,076 (2)
RATIOS TO 2020-21 ASSESSED VALUATION:

Total Overlapping Tax and Assessment Debt 1.61%
Total Direct Debt 0.07%
Combined Total Debt 1.79%
Source: MuniServices, LLC, City of Capitola Finance Department (1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.
232
Item 8 C.

CITY OF CAPITOLA
Legal Debt Margin Information
Last Ten Fiscal Years
(amounts expressed in thousands)
127
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Assessed Valuation $ 1,784,911 $ 1,797,242 $ 1,860,100 $ 1,988,608 $ 2,102,980 $ 2,234,170 $ 2,378,648 $ 2,500,669 $ 2,612,882 $ 2,735,400 RDA Base Valuation 238,631 242,272 246,771 256,500 264,195 272,121 280,284 288,693 297,354 306,274 Adj. assessed valuation 1,546,280 1,554,970 1,613,329 1,732,108 1,838,785 1,962,049 2,098,364 2,211,976 2,315,528 2,429,125 Debt limit percentage 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% Debt limit 231,942 233,246 241,999 259,816 275,818 294,307 314,755 331,796 347,329 364,369 Total net applicable debt
Gen. obligation bonds 3,375 2,890 2,375 1,830 1,255 645 - - - - Legal debt margin $ 228,567 $ 230,356 $ 239,624 $ 257,986 $ 274,563 $ 293,662 $ 314,755 $ 331,796 $ 347,329 $ 364,369 Ratio of Total Net Applicable
Debt to Debt Limit 1.48% 1.25% 0.99% 0.71% 0.46% 0.22% 0.00% 0.00% 0.00% 0.00% Source: Santa Cruz County Auditor-Controller, Santa Cruz County Assessor, City of Capitola Finance Department.

NOTES: The bonded indebtedness of the City may not in the aggregate exceed the sum of fifteen (15%) of the total assessed valuation of property within the City, exclusive of any indebtedness that has been or may hereafter be incurred for the purposes of acquiring, constructing, extending, or maintaining municipally owned assets for which purposes a further indebtedness may be incurred by the issuance of bonds, subject only to the provisions of the City of Capitola bylaws and the State Constitution.
233
Item 8 C.

CITY OF CAPITOLA
Pledged-Revenue Coverage
Last Ten Fiscal Years
(amounts expressed in thousands)
128
Fiscal
Year
Ended Available Tax
June 30, Revenue Principal Interest Coverage Increment Principal Interest Coverage 2012 $ - $ - $ - n/a $ - $ - $ - n/a
2013 - - - n/a - - - n/a
2014 - - - n/a - - - n/a
2015 - - - n/a - - - n/a
2016 - - - n/a - - - n/a
2017 - - - n/a - - - n/a
2018 - - - n/a - - - n/a
2019 - - - n/a - - - n/a
2020 - - - n/a - - - n/a
2021 - - - n/a - - - n/a
Debt Service Debt Service
Other Revenue Bonds
NOTES: The City of Capitola has no tax allocation bonds or other revenue bonds.

SOURCE: City of Capitola Finance Department.

Tax Allocation Bonds
234
Item 8 C.

CITY OF CAPITOLA
Demographic and Economic Statistics
Last Ten Fiscal Years
129
Calendar Year Population
Total Personal
Income (In
Thousands)
Per Capita
Personal
Income Median Age
Unemployment
Rate
2011 9,981 $ 330,271 $ 33,090 42.9 6.9%
2012 9,988 334,029 33,443 41.1 5.5%
2013 10,136 357,112 35,232 40.9 5.0%
2014 10,004 364,656 36,451 41.5 7.0%
2015 10,150 381,027 37,540 43.3 6.0%
2016 10,162 390,369 38,414 42.8 5.5%
2017 10,563 421,494 39,902 42.6 3.3%
2018 10,240 388,326 37,922 42.0 2.2%
2019 10,108 440,760 43,605 42.7 1.4%
2020 10,091 419,398 41,561 42.2 2.1%
Sources: HdL Companies, California State Department of Finance, California Employment Development Department, ESRI, U. S. Census Bureau, American Community Survey.
235
Item 8 C.

CITY OF CAPITOLA
Principal Employers - Top Ten
Current year and nine years ago
130
Employer Ranking
Number of
Employees
% of Total
Employment Ranking
Number of
Employees
% of Total
Employment
Soquel Union School District 1 206 4.38%
Subaru, Toyota, Kia of Santa Cruz 2 181 3.85% 1 180 2.61% Target* 3 171 3.64%
Pacific Coast Manor* 4 150 3.19% 10 90 1.30%
Culinary Enterprises Inc 5 136 2.89% 6 119 1.72%
Whole Foods Market 6 130 2.77% 5 126 1.83%
Gayle's Bakery & Rosticceria 7 123 2.62% 3 141 2.04%
Oceanside Supported Living 8 120 2.55%
Trader Joe's 9 111 2.36% 7 101 1.46%
City of Capitola** 10 96 2.04%
Macy's 2 150 2.17%
Sears 4 135 1.96%
Nob Hill 8 96 1.39%
Kohls 9 95 1.38%
Total Labor Force 4,700 100.00% 6900 100.00%
*Includes full-time and part-time employees.
**Includes full-time and seasonal employees.

SOURCE: MuniServices, LLC
2021 2012
236
Item 8 C.

CITY OF CAPITOLA
Full-time and Part-time City Employees by Function
Last Ten Fiscal Years
131
Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 General government
City Manager 7.75 7.65 7.65 7.65 7.65 6.50 6.50 6.00 7.50 7.50 Finance 4.38 4.38 4.50 4.50 4.50 4.50 3.75 3.75 3.75 3.75 City Attorney 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.00 0.00

13.13 13.03 13.15 13.15 13.15 12.00 11.25 10.75 11.25 11.25 Police
Chief, Captain, Sgts. 6.00 6.00 6.00 6.00 6.00 6.00 6.00 7.00 7.00 7.00 Officers 15.00 15.00 15.00 15.00 16.00 16.00 16.00 15.00 15.00 15.00 CSOs 2.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Parking Enforcement 3.00 2.00 3.00 3.00 3.00 3.00 3.00 2.00 2.00 2.00 Administrative 3.75 4.25 4.65 4.65 4.65 4.50 4.50 4.50 4.50 4.50

29.75 30.25 31.65 30.65 31.65 31.50 31.50 30.50 30.50 30.50 Public Works
Streets 7.33 7.33 8.00 9.00 9.00 11.00 12.00 11.50 10.00 10.00 Parks 3.00 4.00 4.00 4.00 4.00 4.00 3.00 3.00 3.00 3.00 Fleet Maintenance 1.00 1.00 1.00 1.50 1.25 1.00 1.00 1.50 2.00 2.00

11.33 12.33 13.00 14.50 14.25 16.00 16.00 16.00 15.00 15.00 Recreation
Supervisor 1.00 1.00 1.00 2.00 2.00 2.50 2.50 2.50 1.00 1.00 Other - full year 1.50 2.00 2.00 2.25 2.75 1.25 1.25 1.25 4.00 4.00

2.50 3.00 3.00 4.25 4.75 3.75 3.75 3.75 5.00 5.00
Community Development 1.67 2.00 2.50 3.00 3.50 3.50 3.50 3.00 3.00 3.00 Building 2.00 2.00 2.00 2.00 2.00 2.00 2.00 3.00 3.00 3.00 Total City Employees 60.38 62.61 65.30 67.55 69.30 68.75 68.00 67.00 67.75 67.75 NOTES: Full time equivalents (FTE); does not include temporary or seasonal employees.

SOURCE: City of Capitola Finance Department.
237
Item 8 C.

CITY OF CAPITOLA
Operating Indicators by Function
Last Ten Fiscal Years (except as noted)
132
INDICATOR 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Police department
Adult arrests 766 693 856 956 904 939 692 587 503 311
Calls for service (thousands) 20 16 20 18 17 20 19 15 19 15 Public works
Miles paved 26 26 26 26 26 26 26 26 26 26
New construction
Commercial units - - - - 1 2 1 1 - -
Valuation (millions) $ - $ - $ - $ - $ 4 $ 5 $ 2 $ 2 $ - $ - Residential units (1) 7 9 9 3 3 9 6 8 9 9
Valuation (millions) $ 3 $ 3 $ 3 $ 1 $ 1 $ 3 $ 4 $ 3 $ 4 $ 4 Recreation Revenue (thousands)
Classes $ 329 $ 298 $ 338 $ 282 $ 275 $ 260 $ 240 $ 231 $ 214 $ 79 Sports fees 60 53 41 32 19 21 24 23 19 8
Junior Guard 241 240 268 312 328 258 238 244 160 85
Camp Capitola 121 94 103 139 129 100 96 111 100 105
Afterschool/School Support - - - - - - - - 24 48
Net Class Revenue $ 751 $ 685 $ 750 $ 765 $ 751 $ 639 $ 598 $ 609 $ 517 $ 325 Jade St. Rental 6 7 5 7 7 6 8 5 5 -
Net Recreation Rev $ 757 $ 692 $ 755 $ 772 $ 758 $ 645 $ 606 $ 614 $ 522 $ 325 (1) Residential units and associated valuations are total additional, new or substantially new (by code definition) units.

Source: City of Capitola Building, Finance, Police, and Public Works Departments. 238
Item 8 C.

CITY OF CAPITOLA
Capital Asset Statistics by Function
Last Ten Fiscal Years
133
Indicator 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Police
Stations 1 1 1 1 1 1 1 1 1 1
Public works
Streets (miles) 26 26 26 26 26 26 26 26 26 26
Streetlights 71 71 71 71 71 71 71 71 71 71
Traffic signals 8 8 8 8 8 8 8 8 8 8
Parks and recreation
Parks 7 8 8 8 8 8 8 8 8 8
Community centers 1 1 1 1 1 1 1 1 1 1
General
Commercial buildings 2 2 2 2 2 2 2 2 2 2
Source: City of Capitola Public Works Department.
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Item 8 C.

Capitola City Council
Agenda Report
Meeting: January 13, 2022
From: City Manager Department
Subject: Revised Information Technology Specialist Job Description Recommended Action:1) Authorize the City Manager to Sign Side Letter with Confidential Employees Group; and 2) Approve Amended Information Systems Specialist Job Description Background: The City of Capitola Information Systems Specialist position is currently a Fair Labor Standards Act (FLSA) exempt position filled at 40-hours/week. The employee incumbent in this position has requested that she be able to work less than 40-hours/week. To make this adjustment, staff proposes the position be classified as hourly FLSA Non-Exempt.

Discussion: The Information Systems Specialist position provides technical support, configuration, and management of technology resources. The City plans to use contract support to minimize the impact of the proposed reduction of hours. The City has moved many of its applications to the cloud which makes remote support easier than in the past.

Fiscal Impact: No anticipated fiscal impact
Attachments:

1. Side Letter with Confidential Employees

2. Amended Information Systems Specialist Job Description Report Prepared By: Larry Laurent, Assistant to the City Manager Reviewed By: Chloé Woodmansee, City Clerk; Samantha Zutler, City Attorney Approved By: Jamie Goldstein, City Manager
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Item 8 D.

SIDE LETTER BETWEEN CITY OF CAPITOLA AND CAPITOLA

CONFIDENTIAL EMPLOYEES
Pursuant the provisions of the Meyers-Milias-Brown Act (“MMBA”), this Side Letter of Agreement (“Side Letter Agreement”) is entered between the City of Capitola (“City”) and the Capitola Confidential Employees (“CE”) (collectively, “the Parties”).

WHEREAS, the Parties recognize the impacts of the COVID-19 pandemic on the City’s ability to provide essential services; and
WHEREAS, the Parties reaffirm their commitment to collaborative labor relations; and WHEREAS, to meet needs of the incumbent employee, the number of hours worked by the Information Systems Specialist will be reduced.

WHEREAS, due to the reduction in hours, the Information Systems Specialist position will no longer to be FLSA Exempt; and
WHEREAS, the Parties have met and conferred in good faith, in accordance with the MMBA, concerning the terms and conditions of this Side Letter Agreement; IT IS HEREBY AGREED AS FOLLOWS:

Section I.3 of the Confidential Employees MOU shall be amended to read:

Overtime
All Confidential employees other than Human Resources Analyst and Information Systems Specialist, are exempt under
FLSA, and therefore not entitled to overtime compensation. The normal regular work week commences on Sunday and consist of forty (40) hours except that the regular work week of public works department personnel engaged in maintenance activities shall be as approved by the City Manager. Except for employees exempt under the FLSA, overtime will be compensated at the rate of one and one-half times the base rate of pay for all hours worked over 40 hours per week in a workweek. Such additional compensation shall, at the employee’s election, be either in cash or compensatory time off, in accordance with Labor Code section 204.3.

With regard to this section “hours worked” shall not include sick leave.

Nor shall such a definition include vacation or compensated leave time off not scheduled in advance by at least ten working days. “Hours Worked” shall also not include workers compensation time off unless immediate treatment is required on the date of injury for the injury incurred, in which case overtime is allowed providing the 241
Item 8 D.
overtime accrued is an extension of the workday and the hours worked for the week exceed 40 hours.

Section II.3 of the Confidential Employees MOU shall be amended to read:

All Confidential Employees other than Human Resources Analyst and Information Systems Specialist, are entitled to ten days per year of administrative time off.

Administrative Leave is non-cumulative. It may not be converted to cash. One year’s worth of Administrative Leave becomes available on the first day of the calendar year.

The exception is persons hired mid-year, in which case administrative leave is prorated for the applicable period.

Section V.1 of the Confidential Employees MOU shall be amended to read:

Fair Labor Standards Act
All positions other than Human Resources Analyst and Information Systems Specialist included in this Compensation Plan are covered by appropriate sections of the Fair Labor Standards Act of 1935, and are specifically subject to Rule No. 54.118 (salaried executive employees are not paid at a higher rate for what might otherwise be labeled "overtime", correspondingly, their salary is not reduced "for any week in which (s)he performs any work without regard to the number of days or hours worked." Accordingly, bi-weekly time sheets will not result in adjustments to the compensation for the period, but merely for yearly evaluation of whether the position is, after factoring in administrative leave, over or under staffed. However, time off for sick leave purposes shall be reported and reflected in the accumulated sick leave calculations.

This Side Letter Agreement is effective January 23, 2021. This Side Letter Agreement shall supersede any inconsistent provisions in the Parties’ MOU and shall be incorporated into the MOU by this reference.

Capitola Confidential Employees City of Capitola
By: __________________________ By: __________________________ __________________________ City Manager
___________________________ Date: __________________________ 242
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City of Capitola INFORMATION SYSTEMS SPECIALIST Non- Exempt

GENERAL PURPOSE
Performs a variety of complex technical and administrative work in the development, installation, maintenance, and support of municipal information systems.

SUPERVISION RECEIVED
Works under the general direction of the City Manager or designated appointee.

SUPERVISION EXERCISED None

ESSENTIAL DUTIES AND RESPONSIBILITIES
Installs, supports and maintains all City of Capitola information systems hardware and software.

Including, but not limited to, desktops, laptops, servers, switches, routers, databases and telephone systems.

Understand principles of hosted and cloud-based systems.

Manages operations to achieve goals within available resources; plans and organizes workloads and assignments.

Provides leadership and direction in the development of short and long-range information technology plans. Gathers, interprets, and prepares data for studies, reports and recommendations.

Assures that assigned areas of responsibility are performed within budget assists management in preparing annual budget requests; assures effective and efficient use of budgeted funds, materials, facilities, and time.

Prepares and provides information to assist in the decision-making process.

Consults with management to determine information requirements of departments, and determines the technical and functional requirements to meet department needs Confers with department heads involved with proposed projects to ensure cooperation and further define nature of project.

Works with outside agency technical personnel to maintain shared computer systems, Maintains information systems in a secure manner and attempts to following industry best practices.

Documents all hardware and software configurations and modifies as changes occur.

Provides necessary documentation to inform management of project status and deviation from goals.

Coordinates with management staff, support staff, technical personnel, or vendors to solve problems, as required.
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City of Capitola INFORMATION SYSTEMS SPECIALIST Non- Exempt Reviews reports of computer and peripheral equipment production, malfunction, and maintenance to ascertain costs and plan operating changes.

Prepares and solicits proposals for hardware and software solutions.

Responds to technical support requests.

Assists in training staff in the use of computer hardware and software.

Participates in technical projects such as writing equipment specifications Manages 3rd party support relationships.

PERIPHERAL DUTIES
Represents the city at various conferences and meetings.

Serves as a member of various employee committees.

DESIRED MINIMUM QUALIFICATIONS
Education and Experience:

A. Graduation from an accredited four-year college or university with a degree in computer science or a closely related field, or
B. Three (3) years of progressively responsible related experience, or C. Any equivalent combination of education and experience.

Necessary Knowledge, Skills and Abilities:

A. Considerable knowledge of information systems, principles, and practices; considerable knowledge of hardware and software; knowledge of enterprise software systems; knowledge of local and wide area networks.

B. Ability to prepare and analyze complex reports; ability to maintain efficient and effective automated systems; ability to install and troubleshoot information systems; ability to effectively coordinate with staff; ability to establish and maintain effective working relationships with employees, city officials; ability to communicate effective orally and in writing.

SPECIAL REQUIREMENTS
Must be willing to sometimes work outside of standard business hours, including weekends.

Due to access to public safety computer systems, applicant will need to pass comprehensive background check.
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City of Capitola INFORMATION SYSTEMS SPECIALIST Non- Exempt

TOOLS AND EQUIPMENT USED
Personal computer, including word processing and spreadsheet software; network computer system; phone system; copy machine; fax machine.

PHYSICAL DEMANDS
The physical demands described here are representative of those that must be met by an employee to successfully perform the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.

While performing the duties of this job, the employee is frequently required to sit and talk or hear, use hands to handle or feel objects, tools, or controls; and reach with hands and arms. The employee is occasionally required to walk.

The employee must occasionally lift and/or move up to 25 pounds. Specific vision abilities required by this job include close vision and the ability to adjust focus.

WORK ENVIRONMENT
The work environment characteristics described here are representative of those an employee encounters while performing the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.

The noise level in the work environment is usually quiet but can be loud in the data center.

SELECTION GUIDELINES
Formal application, rating of education and experience; oral interview and reference check; job related tests may be required.

The duties listed above are intended only as illustrations of the various types of work that may be performed. The omission of specific statements of duties does not exclude them from the position if the work is similar, related or a logical assignment to the position.

The job description does not constitute an employment agreement between the employer and employee and is subject to change by the employer as the needs of the employer and requirements of the job change.

Due to access to public safety computer systems, applicant will need to pass comprehensive background check.
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Item 8 D.

Capitola City Council
Agenda Report
Meeting: January 13, 2022
From: City Manager Department
Subject: Liability Claim of Gina Cavuoto
Recommended Action: Reject liability claim.

Discussion: Gina Cavuoto has filed a liability claim against the City for an indeterminant amount.

Report Prepared By: Report Prepared By: Larry Laurent
Reviewed By: Chloé Woodmansee, City Clerk
Approved By: Jamie Goldstein, City Manager
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Item 8 E.

Capitola City Council
Agenda Report
Meeting: January 13, 2022
From: City Manager Department
Subject: Receive Update on Pandemic Response and Consider Adopting Proposed Resolution Allowing for the Continuation of Teleconferencing
Recommended Action: 1) Make the determination that all hazards related to the worldwide spread of coronavirus (COVID-19) as detailed in Resolution No 4168 adopted by the City Council on March 12, 2020, still exist and there is a need to continue action; and 2) adopt the proposed resolution authorizing the Capitola City Council (along with the Planning Commission and all advisory bodies) to continue to conduct teleconferencing meetings.

Background: In December 2019, an outbreak of a respiratory illness linked to the novel coronavirus (COVID-19) was first identified. In March 2020, the State of California, the County of Santa Cruz, and the City of Capitola each declared a state of emergency due to the virus. Also in March 2020, the World Health Organization declared COVID-19 a pandemic.

State and local health officers issued health orders to stop the spread of COVID-19; in Santa Cruz County this included March, April, and May 2020 Shelter-In-Place orders that were more restrictive than statewide guidance. Since then, the County Health Officer has incorporated all Orders of the State Public Health Officer, which set baseline statewide restrictions on travel and business activities.

As of January 2022, more than 5.4 million people worldwide have died of COVID-19. This is likely an undercount of all those that have died from the virus. There have been 291 million cases reported worldwide.

Since the beginning of the pandemic in the United States more than 55 million COVID-19 cases have been reported and more than 825,609 people have died from the virus.

Discussion: Since the beginning of the pandemic, 75,847 deaths have been reported in California; there is a daily average of 45 deaths a day due to COVID-19. According to data from December 30, 2021, the average new COVID-19 case count per 100k was 46 (in contrast, the new case count per 100k was 9.2 according to data from December 1).

Boosters
You are eligible for a booster shot if:
1) You got a Pfizer or Moderna vaccine at least 6 months ago 2) If you got a Johnson & Johnson vaccine at least 2 months ago.

Booster shots can be a different vaccine brand than you received before, as long as you completed your original vaccine series (one dose of Johnson & Johnson or two doses of Pfizer or Moderna).

As of January 3, 2022, the total number of vaccinations administered in Santa Cruz County is 247
Item 8 F.
412,219. In the County, there are 211,378 (or 77.4%) people vaccinated with at least one dose, and 194,881 (71.3%) are fully vaccinated.

Omicron Variant & Surge
As stated by the World Health Organization (WHO), “all viruses, including SARS-CoV-2, the virus that causes COVID-19, change over time. Most changes have little to no impact on the virus’ properties. However, some changes may affect the virus’s properties, such as how easily it spreads, the associated disease severity, or the performance of vaccines, therapeutic medicines, diagnostic tools, or other public health and social measures”. On November 26, the WHO designated a new variant, B.1.1.529 as a Variant of Concern (VOC) and named it Omicron.

The WHO has reported that “preliminary evidence suggests an increased risk of reinfection with this variant, as compared to other VOCs.

On November 30, the United States designated Omicron as a variant of concern. On December 1, California reported the first omicron case in the United States; Minnesota quickly followed reporting a case the next day.

As of January 4, the CDC estimates that 95% of the new infections are the Omicron variant, just over four weeks after it was first reported. Case numbers are currently rising at a faster rate than at any other time in the pandemic, however hospitalizations remain below last winter’s peaks.

Local Case Numbers and Statistics in Santa Cruz County
As of November 29, there were 20,864 total known COVID-19 cases in Santa Cruz County. As of January 6, there are 24,017 total known cases of COVID-19.

Rather than the total number of all COVID-19 cases since March 2020, it is helpful to compare the currently active known case count to identify trends and/or a surge. On November 29 there were 517 known active cases in Santa Cruz County; as of January 6, that number had grown to 1,957. As of January 6, 2022, COVID-19 has claimed 230 people’s lives in the County.

City Hall Operations
City Hall has been open to the public since June 2020 in one configuration or another, dependent upon applicable health guidance and local COVID-19 case levels.

City Hall operations have been updated slightly to account for this winter’s Omicron surge. Staff is now staggering their time in shared office spaces. The lobby has been rearranged, with a plexiglass in-person service window installed at the front door. This keeps the lobby and City Hall facilities relatively closed off to non-staff members, while still allowing for in-person service. This recreates how City Hall functioned during last winter’s Delta surge. Members of the public are helped one-at-a-time at the window, and masks are required by everyone to enter City Hall.

Mask Mandates
On November 19, the Santa Cruz County Health Officer issued a new Order requiring the use of face coverings indoors, regardless of vaccination status. The new Order is effective at midnight November 21, 2021, and states that masks must be worn in private settings when non-household members are present. Health Officer Newell stated that “a potential winter surge appears to be a significant threat to the health and safety of our community”. The Order will remain in effect until it is rescinded, superseded, or amended in writing by the Health Officers, considering hospitalizations, variants of concern, and case and vaccination rates. 248
Item 8 F.

Due to rising cases, California Department of Public Health mandated that everyone in California wear a mask in indoor public spaces and workplaces from December 15, 2021, to January 15, 2022. On January 5, this mandate was extended by another month due to the Omicron surge.

If major changes occur between the date of agenda publication and the City Council meeting, further updates on the regional and local coronavirus response will be provided in a verbal report at the meeting.

Continuing Virtual/Teleconferencing Meetings
The Governor signed Assembly Bill 361 on September 16, 2021. The Bill allows cities to continue virtual meetings (much as Capitola City Council Meetings function now) as long as the state is under a proclaimed state of emergency; through 2024 when the bill will sunset. The Bill requires legislative bodies to comply with the requirements set forth in Government Code section 54953(e)(2) to ensure the public can safely participate and observe local government meetings.

One of the requirements is for Council to adopt findings every thirty days. Attached is a resolution that makes the following findings:
1) Find that current conditions authorize teleconference public meetings, based on the Governor’s state of emergency regarding the COVID-19 Pandemic
2) Authorize legislative bodies to conduct teleconference meetings, allowing Capitola City Council, Planning Commission, and other advisory bodies to continue to meet using Zoom.

Fiscal Impact: Fiscal impacts are continually reviewed by Staff as business restrictions and consumer behaviors change in our community. In addition, the City Council has set aside $600,000 to help ensure the City has available resources should the pandemic result in further unforeseen impacts, which remains in the approved FY 2021/22 Budget.

Attachments:

1. Attachment 1: Proposed Resolution
Report Prepared By: Chloé Woodmansee, City Clerk
Reviewed/Approved By: Jamie Goldstein, City Manager
249
Item 8 F.

RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAPITOLA AND ON BEHALF

OF COMMISSIONS AND COMMITTEES CREATED BY THE CITY COUNCIL PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 54952(b) AUTHORIZING TELECONFERENCE MEETINGS IN COMPLIANCE WITH AB 361 (GOVERNMENT CODE SECTION 54953(e)) TO CONTINUE TO ALLOW MEMBERS OF THE PUBLIC TO SAFELY

PARTICIPATE IN LOCAL GOVERNMENT MEETINGS
WHEREAS, the City Council is committed to ensuring public access to observe and participate in local government meetings; and
WHEREAS, all meetings of the City Council and other legislative bodies created pursuant to Government Code Section 54952(b) are open and public, as required by the Ralph M. Brown Act, so that any member of the public may participate in local government meetings; and
WHEREAS, the recently adopted AB 361, codified at Government Code section 54953(e), makes provisions for remote teleconferencing participation in local government meetings, without compliance with the requirements of 54953(b)(3), during a Governorproclaimed state of emergency and if the local legislative body determines, by majority vote, that as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees, and
WHEREAS, on March 4, 2020, Governor Newsom proclaimed a State of Emergency due to the outbreak of respiratory illness due to a novel coronavirus (now known as COVID-19) and that State of Emergency is still in effect in the State of California; and WHEREAS, on March 12, 2020, the Capitola City Council proclaimed the existence of a local emergency due to the worldwide spread of the coronavirus with Resolution No. 4168, pursuant to Section 8.08.020 of the Capitola Municipal Code and Section 8625 of the California Emergency Services Act in response to the COVID-19 pandemic; and WHEREAS, COVID-19 continues to threaten the health and lives of City residents; and WHEREAS, the SARS-CoV-2 Delta Variant (Delta Variant) is highly transmissible in indoor settings; and
WHEREAS, on July 28, 2021, the California Department of Public Health issued guidance calling for the use of face coverings and stating that the Delta Variant is two times as contagious as early COVID-19 variants, leading to increasing infections, the Delta Variant accounts for over 80% of cases sequenced, and cases and hospitalizations of COVID-19 are rising throughout the state; and
WHEREAS, the Delta Variant has caused, and will continue to cause, conditions of imminent peril to the health safety of persons within the City; and WHEREAS, on October 14, November 23, and December 9, 2021, the City Council adopted a resolution proclaiming the need to meet by teleconference pursuant to Government Code Section 54953; and
WHEREAS, the City Council, acting as a legislative body pursuant to Government Code section 54952(a) and for the benefit of the commissions, committees and other bodies that were created by the City Council pursuant to Government Code section 54952(b) (collectively referred to as “Legislative Bodies”), finds that the current conditions meet the circumstances set forth in Government Code section 54953(e)(3) to allow Legislative Bodies to continue to use 250
Item 8 F.
teleconferencing to hold open and public meetings if the Legislative Bodies comply with the requirements set forth in Government Code section 54953(e)(2) to ensure the public can safely participate in and observe local government meetings.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Capitola that the City Council does hereby:

1. Recitals. The Recitals set forth above are true and correct and are hereby incorporated by this reference.

2. Find that Current Conditions Authorize Teleconference Public Meetings of Legislative Bodies. The City Council has reconsidered the circumstances of the state of emergency and finds that based on the California Governor’s continued declaration of a State of Emergency and current conditions, meeting in person would present imminent risks to the health or safety of attendees, such that the conditions continue to exist pursuant to Government Code section 54953(e)(3) to allow Legislative Bodies to use teleconferencing to hold public meetings in accordance with Government Code section 54953(e)(2) to ensure members of the public have continued access to safely observe and participate in local government meetings.

3. Authorize Legislative Bodies to Conduct Teleconference Meetings. The Legislative Bodies are hereby authorized to take all actions necessary to carry out the intent and purpose of this Resolution, including conducting open and public meetings in accordance with Government Code section 54953(e)(2) and other applicable provisions of the Brown Act.

I HEREBY CERTIFY that the foregoing resolution was PASSED and ADOPTED by the City Council of the City of Capitola on the 13th day of January 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Sam Storey, Mayor
ATTEST: __________________
Chloé Woodmansee, City Clerk
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Item 8 F.

Capitola City Council
Agenda Report
Meeting: January 13, 2022
From: Department of Public Works
Subject: Capitola Branch Library Project Notice of Completion Recommended Action: Approve the Notice of Completion for the Capitola Branch Library Project constructed by Otto Construction at a final cost of $13,190,813 and direct the Public Works Department to 1) record the Notice of Completion and 2) release the retention held in escrow of $369,724.39.

Background: Development and reconstruction of the Capitola Branch Library Project has been a city goal for the past decade. The project gained momentum when Measure S was approved by the voters in June 2016, providing most of the funding for the project. The City Council hired the architectural firm of Noll and Tam to design the new building in November 2016. After several public workshops, Planning Commission, and City Council presentations, the City Council approved the final plans in April 2018. Bids were received in June 2018 and a contract awarded to Otto Construction in July 2018. Otto began construction in January 2019 and the building was opened to the public by the Santa Cruz Public Libraries in June 2021. The final items of construction were completed in December 2021.

Opening the building to the public and the official project completion was delayed for a year and half due to site conditions and conflicts with overhead utility lines.

Discussion: The new library is 11,700 square feet, more than twice the size of the old library building which was located on the same site. The new building includes many dedicated areas such as quiet reading areas, a children’s area, study rooms, a teen room, community room, and staff offices. The existing Tot Lot play area was maintained and tied into the new building with a large deck.

A 99-year lease for the building is in place with the County of Santa Cruz who in turn has contracted with the Santa Cruz Public Library System to operate the library. Maintenance of the building and grounds, except for the Tot Lot, will be the responsibility of the County and Library System. The City of Capitola will continue to maintain the Tot Lot. 252
Item 9 A.

Fiscal Impact: The following tables itemize the final revenue and expenditures for the project:

Funding Source Received Final Revenue Amount
Measure S $ 10,476,529
Successor Agency $ 2,624,410
City General Fund $ 1,552,492
Friends (donations) $ 719,128
County Library Funds $ 396,000
Investment earnings $ 213,267
PG&E $ 100,000
Sub-Total $ 16,081,826
Funding Due
Noll and Tam $ 450,000
Total $ 16,531,826
Item Final Expense
Construction $ 13,190,813
Architecture and Engineering $ 1,537,220
Permits/Special Inspections $ 149,816
Project Management $ 323,061
Misc $ 23,860
Furniture, Fixtures, & Equipment $ 421,888
Fundraising & other $ 119,245
Total $ 15,765,903
The remaining project fund balance is $765,923. The allocation of these funds will be discussed with the City Council as part of the mid-year budget review which is scheduled for the next City Council meeting on January 23, 2022.

Attachments:

1. Notice of Completion
Report Prepared By: Steven Jesberg, Public Works Director 253
Item 9 A.

Reviewed By: Chloé Woodmansee, City Clerk; Sam Zutler, City Attorney Approved By: Jamie Goldstein, City Manager
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Item 9 A.

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City of Capitola
Public Works Department
Attn: Steven Jesberg
420 Capitola Avenue
Capitola, California 95010

SPACE ABOVE THIS LINE FOR RECORDER'S USE
THIS INSTRUMENT IS BEING RECORDED FOR THE BENEFIT OF THE CITY OF CAPITOLA.

NO RECORDING FEE IS REQUIRED PURSUANT TO GOVERNMENT CODE §27383.

NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN that the City of Capitola, owner of the property hereinafter described, whose address is 420 Capitola Avenue, Capitola, California, has caused a work of improvements more particularly described as follows:

PROJECT NAME: Capitola Branch Library Project
PROJECT DESCRIPTION: Construction of a new public library building to be constructed on property more particularly described as follows:

DESCRIPTION: City owned property at Wharf Road and Clares Street ADDRESS: 2005 Wharf Road, Capitola, CA 95010
APN: 034-541-34
The work of the improvement was completed by:

CONTRACTOR: Otto Construction
ADDRESS: 1717 Second Street, Sacramento CA 95811
The work of the improvements was actually completed on the 17th day of December 2021, and accepted by the City Council of said City on the 13th day of January 2022 Signature of City Official: _____________________________ The undersigned certifies that he is an officer of the City of Capitola, that he has read the foregoing Notice of Completion and knows the content thereof; and that the same is true of his own knowledge, except as to those matters which are therein stated on information or belief, and as to those matters that he believes to be true. I certify under penalty of perjury that the foregoing is true and correct.

Executed at the City of Capitola, County of Santa Cruz, State of California.

Steven E. Jesberg
Director of Public Works
Signed: ___________________________________
Date: ___________________________________
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Item 9 A.

Capitola City Council
Agenda Report
Meeting: January 13, 2022
From: Police Department
Subject: Presentation Regarding Proposed City of Santa Cruz Onstreet Parking Programs
Recommended Action: Receive a report regarding how the City of Santa Cruz is addressing oversized vehicles and an update on City of Capitola practices.

Background: Santa Cruz County continues to experience an increasing number of oversized vehicles parking for long periods of time on public streets. According to City of Santa Cruz staff reports, this trend is impacting the community, public safety, health, and the environment. During the November 10, 2021 Capitola City Council meeting, staff was directed to provide an overview of the most oversized vehicle parking programs introduced by the City of Santa Cruz. Additionally, staff was directed to provide an overview of our current practices.

Discussion: Balancing the preservation of public safety and health while trying to support a vulnerable population is a challenge facing most jurisdictions. Communities in Santa Cruz County are no different. The purpose of this report is to outline what steps are being considered in the City of Santa Cruz to manage oversized vehicles and the impacts on neighborhoods. The City of Santa Cruz has proposed a “City-Wide Parking Permit” program for oversized vehicles and a three-tiered “Safe Parking” program to assist individuals with transitional housing needs.

In 2015/2016, the City of Santa Cruz proposed an Oversize Vehicle Ordinance (OVO); implementing this ordinance required a Coastal Development Permit (CDP). The CDP was approved by the City of Santa Cruz Zoning Admistrator, but then appealed to the Coastal Commission. The Commission reviewed the permit and found “substantial issue” concerning the ordinances’ consistency with Coastal Act policies. The Coastal Commission did not take action to approve or deny the permit. Because the permit was appealed, and no action was taken at the Coastal Commission, the proposed ordinance stalled and did not move forward.

In September 2021, Santa Cruz City Council created a subcommittee that included a broad list of stakeholders, local representatives, and members of the City Council. The committee proposed the City-Wide Parking Permit program for oversized vehicles and the Safe Parking program for transitional housing.

On October 26, 2021, Santa Cruz City Council held the first reading of Ordinance No. 2021-21, amending the current ordinance and introducing a new City-Wide Parking Permit program for oversized vehicles. Santa Cruz City Council also directed staff to implement a city-operated safe parking program.

The City-Wide Permit program ordinance amendment and policy were developed to provide parameters on the time, place, and manner of parking oversized vehicles on city streets. The goal was to address environmental and public health impacts. The proposed language defines an oversized vehicle as greater than or equal to 20 feet in length, or greater than eight feet in height and seven feet in width. While there are some exceptions for pull trailers and commercial trailers, the proposed ordinance would prohibit oversized vehicles from parking on city streets between the hours of midnight to 5:00 AM; prohibit utility connections; prohibit open fires, prohibit unsafe and unsanitary conditions; and prohibit oversized vehicles from parking within 100 feet of an intersection.
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Item 9 B.

Allowances include resident/visitor permits that are valid for one year. The permit holder can use the permit for four periods of 72-hours per month. If a resident has an out-of-town visitor, a permit can be issued for six periods of 72 hours use per year.

Another exception is participation in a city-operated or sponsored safe parking program. The City will operate, sponsor, or authorize safe parking programs for oversized vehicles on City-owned or leased properties or on city-sanctioned private properties. Site locations would include hygiene stations and information and options for sanitation and black water dumping.

The safe parking framework will take a three-tiered approach:
1) Emergency Safe Parking spaces – A minimum of three emergency safe parking spaces will be provided immediately. Available for up to 72-hours and are designed to assist with registration and repairs.
2) Safe Overnight Parking – City staff will identify safe parking spaces for thirty oversized vehicles and supply overnight monitoring with hygiene units. Resources for transitional sheltering options will be provided at this location.
3) Safe Parking Program – City staff will work closely with County partners from the Human Services and Health departments to expand existing programs and will include case management support to assist individuals. Families with children, seniors, transition-aged youth, veterans, and individuals with disabilities are prioritized. $300-500K for a robust safe parking program and this price does not include ongoing costs of hygiene units.

To implement the proposed ordinance, the City of Santa Cruz will need to process a Coastal Development Permit (CDP). The original appeal is still pending and since the 2016 decision, the Coastal Commission has allowed similar ordinances in other coastal cities. Within the City of Santa Cruz, any modification to permit parking within the Coastal Zone requires approval of a Coastal Development Permit, which can be appealed to the California Coastal Commission. In Capitola, an amendement to Municipal Code Section 10.36 (Stopping, Standing, and Parking), requires an ordinance amendment and certification by the Coastal Commission, since that section of code is within the City’s Local Coastal Program Implenentation Plan.

Some of the issues facing the City of Santa Cruz are also impacting Capitola. The Capitola Police Department has received some complaints from residents about oversized vehicles and their impacts on respective neighborhoods. The police department is committed to seeking the balance between the community’s concerns and this vulnerable population. We have collected the necessary data and continue to utilize our local municipal code and the California Vehicle Code (CVC) to address vehicles on public streets. The police department works closely with property owners to address unwanted behavior in their parking lots by allowing law enforcement to exercise trespassing law under certain provisions. This program allows for property owners to work with the police department to post the property location and allow officers to enforce local regulations on their behalf. The police department will continue to monitor these issues and will work with residents and neighborhoods to address specific concerns.

Financial Impact: None.

Report Prepared By: Andrew Dally, Chief of Police
Reviewed By: Chloé Woodmansee, City Clerk
Approved By: Jamie Goldstein, City Manager
257
Item 9 B.

Capitola City Council
Agenda Report
Meeting: January 13, 2022
From: Public Works Department
Subject: Authorize Purchase of a New Street Sweeper for the Department of Public Works
Recommended Action: Authorize the expenditure of up to $350,000 for the purchase of a new Global Regenerative Air streetsweeper for the Public Works Department.

Background: The Department of Public Works operates a street sweeper five days a week to remove leaves and debris from city streets. Doing so also prevents oils, greases, and other pollutants from washing into the storm drain system and ultimately into the creek and bay. The City operates a single sweeper and keeps an older sweeper in the inventory for backup and parts.

The current sweeper was purchased in 2014 and has 7,000 hours on the engine. Due to the continued use, the sweeper has required extensive reconstructive and maintenance work over the past two years to remain operational. In the past, the City has purchased a new sweeper on a five year cycle, but delayed this purchase to allow staff to complete a review of available sweepers.

Discussion: Public Works recommends the City purchase a Series 3 Sweeper from Global Environmental Products. The Global Series 3 sweeper is a three-wheel sweeper that has proven to be excellent in navigating the narrow and crowded streets of Capitola. Other sweepers on the market are either four-wheel vehicles that have a large turning radius or are too small to be effective.

For this purchase Public Works recommends switching to a generative air vacuum sweeper that relies on suction, rather than mechanical sweeping, to remove the debris. Staff believe this switch will reduce wear on the machine and reduce the annual maintenance and sweeper brooms costs.

The current cost of a new diesel engine powered sweeper is $285,000 (Attachment 1). Global Environmental Products recently released an all-electric sweeper, at the cost of $579,000 (Attachment 2). The Department investigated and received quotes from other street sweeper vendors, but no other vendor had a machine that met the department’s needs.

Staff has reached out to Central Coast Community Energy (3CE) to see if they have a program to cover the additional cost for the electric sweeper. In response to our request, in December the 3CE Operations Board of Directors authorized the development of program to provide $250,000 of funding for member agencies to purchase heavy duty electric vehicles. The program will be discussed at a 3CE Policy Board meeting in February and if approved and funded it could pay most of the cost differential between the diesel sweeper and the electric vehicle.

Staff’s recommendation to authorized up to $350,000 for the sweeper purchase will provide the flexibility of buying the electric sweeper if the 3CE program is approved, or if the program is not approved will pay for the purchase of the diesel sweeper.

Fiscal Impact: The purchase will be made with funding in the Equipment Replacement Internal Service Fund. The fund balance as of June 30, 2021, is $684,836. Approved expenditures include $170,000 for two Police patrol vehicles and a Public Works truck, leaving a balance of $524,836. 258
Item 9 C.

This balance includes $105,000 from FY 2019-20 and $100,000 from FY 2021-22 for the purchase of a new sweeper in addition to $200,000 from FY 2020-21 that was not designated for any specific equipment purchase.

Attachments:

1. Diesel street sweeper quotation from November 2021

2. Electric street sweeper quotation from November 2021 Report Prepared By: Steven Jesberg, Public Works Director Reviewed By: Chloé Woodmansee, City Clerk; Samantha Zutler, City Attorney Approved By: Jamie Goldstein, City Manager
259
Item 9 C.

QUOTATION: R3 REGENERATIVE AIR SWEEPER DATE: 11/18/2021 CUSTOMER: City of Capitola - Sourcewell Terms: 30 Days Net DEALER: Terry Equipment FREIGHT: FOB - San Bernardino, CA QUOTE NO.: OPEN CONTRACT UAO#
GLOBAL R3 S TANDARD EQUIPMENT
High Visibility Cab (Glass Entry Door included) Sealed Beam Headlights 82 dBA In-Cab Noise Level 6.5 cu yd Hopper (Volumetric) Dust & Weather Sealed Cab Hopper Dump Alarm
Multi-Adjustable Suspension Seat 47" dia Gutter Brooms
Tilt & Telescoping Steering Wheel In-Cab Gutter Broom Pressure Adjustment Tinted Safety Windows & Windshield Tuf-Grip Disposable Gutter Broom Segments Left & Right Dual West Coast Mirrors 72” Wide Pick-Up Hoodwith Carbide Dirt Shoes Windshield Wiper/Washer 32” Diamater Impeller ncludes wear-resistant coating Ergonomic Go Pedal Internal Impeller Housing components inc. Rubber Lining Coolant Temp, Oil Pressure & Voltmeter Gauges Two 18 gal Hydraulic Oil Tanks Coolant, Eng Oil Pressure & Low Hyd Oil Warning Lights Hydraulic Manifolds in LH Fender Speedometer, Tachometer & Hourmeter LED Gutter Broom Spotlights Fuel Level Gauge Sealed Beam Headlights
230 gal Polyethylene Water Tank Stop/Tail Lights, Clearance Lights 15' Hydrant Hose with Coupling & Wrench 12.5' Turning Radius with Front Suspension Gutter Broom Water Spray Jets 120 amp Heavy-Duty Alternator Pickup Broom Water Spray Jets All Sheet Metal Surfaces Primer Powder Coated Fan Housing Water Spray Jets Sheet Metal Surfaces Powder Coated Dust Seperator Water Spray Jets Fender Mounted Tool Box Centrifugal Type Dust Seperator Integral Cab Limb Guard Protection Low Water Level Light in Cab Front & Rear Tie Downs with Tow Hooks Front Spray Bar In-cab Pick-Up Hood front Curtain Raise Function Buddy Seat 1 Sweeper Service Manual in English
Dual Front Tires with Front Suspension 1 Sweeper Parts Manual in English Electrical Systems Locker 1 Sweeper Operator Manual in English Manual Safety Props Ergo Switch Standard
Hopper and Fan/Fan Housing Flusher Rear View Camera Standard Stainless Steel Hopper
QTY List Price Contract Price Extended Price
1 $235,820 $224,029 $224,029
*** Powder Coated Paint - White W/ Gray Frame ***
AVAILABLE OPTIONS:

QTY PT NO. DESCRIPTION List Price Contract Price Extended Price 1 K323753 GB Speed Control $1,306 $1,241 $1,241
1 K247011 Dual GB Tilt $5,016 $4,766 $4,766
K247013 GB Tilt, Left Single $2,508 $2,383
K247012 GB Tilt, Right Single $2,508 $2,383
1 K247077 Hopper Access Door $3,094 $2,939 $2,939
K310154 Hopper Coating $5,257 $4,994
1 M3JHE2FS Comfort Glide Rear Suspension $7,494 $7,119 $7,119 Delivery: 90-120 days after receipt of order
SIGNATURE: DATE:

Bernardino, CA All prices are valid for 30 days.
s net. Late payment penalty 1% per month or part thereof.

Form GS-47.doc Rev: C 02/25/2013

DESCRIPTION
GLOBAL R3 SWEEPER, TIER 4FINAL 173 HP ISUZU Eng, High Dump, Hydrostatic Drive, Dual Gutter Broom, A/C, Standard ERGO Sweeping Controls
5405 Industrial Parkway
San Bernardino, CA 92407
Tel : 1 (909) 713-1600
Fax : 1 (909) 713-1613
www.globalsweeper.com
260
Item 9 C.

QUOTATION: R3 REGENERATIVE AIR SWEEPER DATE: 9/30/2021
CUSTOMER: Capitola - Sourcewell Terms: 30 Days Net
DEALER: Terry Equipment FREIGHT: FOB - San Bernardino, CA QUOTE NO.: OPEN CONTRACT UAO#
LABLE OPTIONS (continued):

QTY PT NO. DESCRIPTION List Price Contract Price COMMENTS 1 K325256 AM/FM Radio w/ CD $540 $513 513
1 K901325 Aux Power Plug Adaptor Port $325 $309 309
1 K318806 Seat, High Back, Air $1,111 $1,056 1056
K247172 Heated & Remote Controlled Mirrors with Heavy Duty Brackets $1,803 $1,712 K324458 L.E.D. Stop/Tail/Clearance/Marker Lights $901 $856 1 K325221 Arrowstick (LED) $1,803 $1,712 1712
K325514 Limb Guard (Cab Beacon/Strobe) $286 $271
1 K302224 Fire Extinguisher $300 $285 285
K324815 Daytime Running Lights $225 $214
FBO11122 Additional Front Broom - Joystick Controlled $31,793 $30,203 NPN Hopper Raise/Lower - Rear Fender Upgrade $276 $262
1 NPN Additional 50 Gallon Water Tank $1,654 $1,571 1571 NPN Catch Basin Hose $3,528 $3,352
1 328100 Automatic Safety Props $3,983 $3,784 3784
1 302193 GB Plate - Bolt On $310 $294 294
1 247724 High Speed Hopper Lift/Dump $2,067 $1,964 1964 1 326844 Cab Strobe (LED) $538 $511 511
247632 Rear Flashing (LED) Strobes (mounted in hyd. Towers)(Qty. 2) $538 $511 324158 Front Flood Lights Dual (LED) $469 $445
316607 Rear Flood Lights Dual (LED) $496 $471
248537 Autolube - Full System R3 $5,169 $4,910
1 329822 Remote Grease Block - 8 positions $1,654 $1,571 1571 1 316609 In-Cab Water Tank Gauge $483 $459 459
326517 Battery Master Shutoff $290 $275
1 322420 Microtrap (PM-10 Option) $1,654 $1,571 1571
326566 Additional Rear Dock Bumpers $345 $328
320886 Extended Dock Bumpers (Qty. 2) $483 $459
329514 Spare Wheel/Tire - Front R3 $1,365 $1,297
329515 Spare Wheel/Tire - Rear R3 $1,654 $1,571
319802/3 GB Hour Meter - Dual (Qty. 2) $241 $229
1 324818 Hopper Emergency Lift w/Pump $1,240 $1,178 1178 1 329516 Complete Set of Filters R3 $689 $655 655
1 NPN 41 Gallons - Biodegradable Hydrulic Oil 1716 1630 1630 Contract Price $ 259,156.97
Sales Tax Rate 9% $ 23,234.13
Freight $ 3,500.00
Total Price FOB City of Capitola $ 284,891.10
Delivery: 90-120 days after receipt of order
SIGNATURE: DATE:

Bernardino, CA. All prices are valid for 30 days.
s net. Late payment penalty 1% per month or part thereof.

Form GS-47.doc Rev: C 02/25/2013
5405 Industrial Parkway
San Bernardino, CA 92407
Tel : 1 (909) 713-1600
Fax : 1 (909) 713-1613
www.globalsweeper.com
261
Item 9 C.

QUOTATION: R3AIR EV - ELECTRIC SWEEPER DATE: 11/18/2021 CUSTOMER: City of Capitola - Sourcewell Terms: 30 Days Net DEALER: Terry Equipment FREIGHT: FOB: San Bernardino, CA QUOTE NO.: OPEN CONTRACT UAO#
GLOBAL R3AIR ELECTRIC REGENERATIVE AIR SWEEPER - ELECTRIC EQUIPMENT High Visibility Cab (Glass Entry Door included) Sealed Beam Headlights Dust & Weather Sealed Cab 5.8 cu yd Hopper (Volumetric) Multi-Adjustable Suspension Seat Hopper Dump Alarm
Tilt & Telescoping Steering Wheel 47" dia Gutter Brooms Tinted Safety Windows & Windshield In-Cab Gutter Broom Pressure Adjustment Left & Right Dual West Coast Mirrors Tuf-Grip Disposable Gutter Broom Segments Windshield Wiper/Washer 72” Wide Pick-Up Hoodwith Carbide Dirt Shoes Ergonomic Go Pedal 32” Diamater Impeller ncludes wear-resistant coating Speedometer, Tachometer & Hourmeter Internal Impeller Housing components inc. Rubber Lining 230 gal Polyethylene Water Tank Hydraulic Manifolds in LH Fender 15' Hydrant Hose with Coupling & Wrench LED Gutter Broom Spotlights Gutter Broom Water Spray Jets Sealed Beam Headlights
Pickup Broom Water Spray Jets Stop/Tail Lights, Clearance Lights Fan Housing Water Spray Jets 12.5' Turning Radius with Front Suspension Dust Seperator Water Spray Jets All Sheet Metal Surfaces Primer Powder Coated Centrifugal Type Dust Seperator Sheet Metal Surfaces Powder Coated Low Water Level Light in Cab Fender Mounted Tool Box
Front Spray Bar Integral Cab Limb Guard Protection
Buddy Seat Front & Rear Tie Downs with Tow Hooks
Dual Front Tires with Front Suspension In-cab Pick-Up Hood front Curtain Raise Function Electrical Systems Locker 1 Sweeper Service Manual in English Manual Safety Props 1 Sweeper Parts Manual in English
Hopper and Fan/Fan Housing Flusher 1 Sweeper Operator Manual in English Ergo Switch Standard
Rear View Camera Standard
List Price Contract Price Extended Price
1 578,447 549,525 $ 549,525
*** Powder Coated Paint - Gray/White ***
GLOBAL R3AIR ELECTRIC REGEN SWEEPER- OPTIONAL EQUIPMENT QTY PT NO. DESCRIPTION List Price Contract Price Extended Price 1 K247077 Hopper Access Door 2,946 2,806 $ 2,806
1 M3JHE2FS Comfort Glide Rear Suspension INC INC
1 K323753 GB Speed Control 1,331 1,265 $ 1,265
1 K247011 Dual GB Tilt 5,112 4,856 $ 4,856
SIGNATURE: DATE:

Freight - FOB San Bernardino, CA
Payment is strictly 30 days net. Late payment penalty 1% per month or part thereof.

Form GS-180.doc Rev: 08/09/19

DESCRIPTION
GLOBAL R3AIR ELECTRIC REGEN SWEEPER, 210KW Battery (8-10 Hrs Operating time) High Dump, ELECTRIC DRIVE, Dual Gutter Broom, A/C, Grey/White Powder Coated, Ergo Switch, Rear View Camera System…
5405 Industrial Parkway
San Bernardino, CA 92407
Tel : 1 (909) 713-1600
Fax : 1 (909) 713-1613
www.globalsweeper.com
262
Item 9 C.

QUOTATION DATE: 11/18/2021
GLOBAL R3AIR ELECTRIC EQUIPMENT (continued)
PT NO. DESCRIPTION LIST PRICE CONTRACT PRICE Extended Price 1 K323495-SS Stainless Steel Hopper INC INC
1 K325256 AM/FM Radio w/ CD 551 523 $ 523
K901325 Aux Power Plug Adaptor Port 325 309 $ -
K318806 Seat, High Back, Air 1,132 1,076 $ -
1 K247172 Heated & Remote Controlled Mirrors with Heavy Duty Brackets 1,837 1,745 $ 1,745 1 K325221 Arrowstick (LED) 1,837 1,745 $ 1,745
1 K325514 Limb Guard (Cab Beacon/Strobe) 291 276 $ 276
1 NPN Hopper Raise/Lower - Rear Fender Upgrade 281 267 $ 267 1 326844 Cab Strobe (LED) 548 521 $ 521
1 247632 Rear Flashing (LED) Strobes (mounted in hyd. Towers)(Qty. 2) 548 521 $ 521 NPN Catch Basin Hose 5,250 4,988 $ -
1 316609 In-Cab Water Tank Gauge 492 467 $ 467
1 329822 Remote Grease Block - 8 positions 1,575 1,500 $ 1,500 1 338581 Hopper and Suction Hood Wash Out System 1,575 1,496 $ 1,496 1 320886 Extended Dock Bumpers (Qty. 2) 492 467 $ 467
1 NPN Biodegradable Hydraulic Oil 1,716 1,630 $ 1,630
Contract Price $ 569,611.11
Sales Tax Rate 9% $ 51,264.99
Freight FOB Capitola $ 3,500.00
Total Price FOB City of Capitola $ 578,276.10
Delivery: 240 days after receipt of order
Freight - FOB San Bernardino, CA
Payment is strictly 30 days net. Late payment penalty 1% per month or part thereof.

Form GS-180.doc Rev: 08/09/19
5405 Industrial Parkway
San Bernardino, CA 92407
Tel : 1 (909) 713-1600
Fax : 1 (909) 713-1613
www.globalsweeper.com
263
Item 9 C.

Capitola City Council
Agenda Report
Meeting: January 13, 2022
From: Finance Department
Subject: Amend FY 2021-22 City Fee Schedule
Recommended Action: Adopt the proposed resolution amending the fee schedule for Fiscal Year (FY) 2021-22.

Background: Since the adoption of Resolution No. 4229 adopting the City’s Fee Schedule for FY 2021-22, the City Council adopted Ordinance No. 1048, adding Chapter 9.62: Film Permits to the Capitola Municipal Code. The ordinance states that fees for film permits will be set by City Council.

In addition, City Recreation staff is proposing a clarification to the “per day” fee as it pertains to the Recreation Afterschool Program.

Discussion:

Film Permit: City Staff analyzed the work patterns of the Clerk’s Office; the division that processes film permit applications. Generally, film permit applications fall into two categories; basic film permit requests and major film permit requests, which involve more back-and-forth communication and inter-department collaboration between the Clerk’s Office and the Police and Public Works Departments. The following summarizes costs, and proposed rate for both permit types.

Permit
Type
City Clerk Deputy City
Clerk
Police
Dept
Analyst
Public
Works
Project
Manager
Total
City
Cost
Proposed
Permit
Cost
Basic Film
Permit
n/a 1hr at $107 n/a n/a $107 $50
Major Film
Permit

0.5hrs at
$136 = $68
2hrs at
$107 = $214
1hr at $121 0.5hrs at
$158 = $79
$482 $250
Afterschool Program: The FY 2021-22 Fee Schedule lists the Afterschool Program resident / nonresident daily rate at $15 / $17. This fee is intended to be used to calculate the monthly fee for the Afterschool Program for a given month based on the number of school days for each school based on the individual school’s monthly schedule. The fee was established to recover the cost of providing three hours per school day of afterschool programming. There has been confusion among program participants and recreation staff around minimum school day schedules which increase the number of hours participants are in the Afterschool Program to more than 3 hours for that day.

Staff proposes to amend the daily rate to an hourly rate of $5.00 for residents and $5.67 for nonresidents to calculate the monthly fee based on the number of school days and the number of operating hours including minimum schedule days, in the month. The establishment of an hourly fee allows for participants to pay for the number of hours in program based on their individual 264
Item 9 D.
school schedule while providing staff with some expectations of necessary staffing levels for each month. The Recreation Division will not be offering drop-in or daily al-la carte Afterschool Programming at this time.

Fiscal Impact: The establishment of these new fees is intended to offset the cost of providing these services to the community.

Attachments:

1. Proposed Fee Schedule Resolution

2. FY 2021-22 Amended Fee Schedule

3. FY 2021-22 Animal Service Fees

4. FY 2021-22 Amended Fee Schedule Comparison
Report Prepared By: Jim Malberg, Finance Director
Reviewed By: Chloé Woodmansee, City Clerk; Samantha Zutler, City Attorney Approved By: Jamie Goldstein, City Manager
265
Item 9 D.

RESOLUTION NO. ___

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAPITOLA
AMENDING THE CITY’S FEE SCHEDULE FOR
FISCAL YEAR 2021-22
WHEREAS, the City Council adopted Resolution No. 4229 on June 24, 2021, adopting the City’s Fee Schedule for Fiscal Year 2021-22; and
WHEREAS, since that adoption the City Manager Department is proposing to offer new Film Permits; and
WHEREAS, staff is proposing to amend the Afterschool Program fees; and WHEREAS, the proposed fees do not exceed the cost of providing the related services, NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Capitola does hereby adopt the amended City of Capitola Fee Schedule pursuant to the changes in Exhibit A (Fee Schedule 2021-22) and the unchanged Exhibit B (Animal Service Fees) attached hereto.

BE IT FURTHER RESOLVED that the above fees become effective immediately upon adoption of this resolution.

I HEREBY CERTIFY that the above and foregoing Resolution was passed and adopted by the City Council of the City of Capitola at its regular meeting held on the 13th of January 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Sam Storey, Mayor
ATTEST:
_______________________________
Chloe Woodmansee, City Clerk
266
Item 9 D.

Description 2021/22 Amended Fee Schedule
Administrative Decision Appeal Fee $545
Bingo Permit $65
Capitola Municipal Code 0.15 / page
Capitola Municipal Code Supplement Service (Per
year)
$0
Copies:
1-5 copies $0
6 or more copies (per copy) $0.25 / page
Gov’t Code § 81008 (Political Reform Act)
statements/reports (Per copy)
$0.10 / page
Video Tapes, Flash Drive, CD/DVD Production Cost + $52.49 1st Hour (Minimum) + $26.24 / hour Simple film permit $50.00
Major film permit $250.00
Entertainment Permit Application Fee $40
Single Event Permit $40
Minor Entertainment Permit $169
Regular Entertainment Permit $632
Pet Shops and Kennel License Fee (Municipal Code
§ 5.20.020) set only by ordinance
$23
Returned Check Fee $40
Business License Overpayment Refund Fee
(resolution 3532, ord 871)
0 (Set to -0- by Council in 2011)
Business License Late Payment Penalty Admin. Fee $35 + 10% each month late Business License Application Fee (Reso. 3532) $40
Business License - Disability Access and Education
Fee (State)
$4
Temporary, Publicly Attended Activities,
Application Fee (Municipal Code § 9.36.040)
$34
Public Art (Total Building Valuation $250,000 or
more) (Municipal Code Chapter 2.58)
2% of TBV or 1% in lieu to City
Notice of Intent to Circulate Initiative Petition
(Elections Code § 9103(b))
$200
Bandstand Rental Fee $226 / 4 hrs or $677 all day / deposit $1,500 Notary Service Fees (State Code)
Acknowledgment or proof of a deed, or other
instrument, to include the seal and writing of the
certificate
$15 / signature
Administering an oath or affirmation to one
person and executing the jurat, including the seal
$15 / signature
Credit Card Transaction Fee 3%
Electric Vehicle Charging Fee $0.50 / hour
Cannabis Annual License Fee $2,594
Retail Cannabis Application Fee $1,691

MISCELLANEOUS FEES
267
Item 9 D.

Description 2021/22 Amended Fee Schedule
Special Event Permit $62
Amplified Sound Permit (Municipal Code 9.12.040) $30
DUI Cost Recovery Fee (Res. 3533) Not to exceed $12,000 Copies of reports: Crime Reports, Special Reports, etc. (Regardless of number of pages) $0.25 / page Copies of: Citations, Code sections, Ordinances, etc. $0.25 / page Bicycle Licenses (New) $0
Bicycle Licenses (Renewal) $0
Citation Sign-Offs $0
Photographs $19 + administration fees
VIN verifications $16
Video Tapes, Flash Drive, CD/DVD Production Cost + $52.49 1st Hour (Minimum) + $26.24 / hour
Local Fire Arm dealers (set by state)
New application set by state
Renewal set by state
Second Dealers License (set by state)
Application set by state
Renewal set by state
Taxi Fee per application set by state
Tobacco retail license $265
Civil Subpoena (per case) (set by state) set by state
Parking Permits (separate action by the Council)
Neighborhoods per year (Resolution No. 3733) $25
Village Preferential Permit (Resolution No. 3733) $50 per year Village Employer/Employee Permit (Resolution No. 3733) $50 per year Morning Village Parking Permit (Resolution No. 3715) $50 per year Concealed Weapon Permits (set by state)
Application
Standard set by state
Judicial set by state
Employment set by state
Renewal
Standard set by state
Judicial set by state
Employment set by state
Firearm Surrender Fees (set by state law)
1-5 guns set by state
6+guns set by state
Vehicle Storage per day $27
Administrative fee to release Impounded / Stored Vehicle $133 Surf School Permit Fee $545
Animal Services Fees
See Exhibit B "Animal Services Fees"

POLICE DEPARTMENT FEES
268
Item 9 D.

Description 2021/22 Amended Fee Schedule
Encroachment Permits
Non-Construction Items (includes materials storage within right-of-way road and sidewalk closures $69
Village Sidewalk Encroachment Permit $40
Construction Items
Level A $208
Level B $462
Level C $921
Level D $1,498
Level E $2,076
Residential Blue Curb Application Fee $218
Residential Blue Curb Annual Fee $55
Blanket Permits (repair and maintenance of existing facilities) $2,305 Private Improvement Permits/Encroachment Agreement
Applications for Minor Permits $230
Applications for Major Permits $577
New Memorial Bench $1,044
Replacement Memorial Bench $509
Memorial Plaque $783
Replacement Plaque $254
Memorial Plaque (tree) $500 + Cost of Tree
Memorial Picnic Table $1,671
Seasonal Boat Storage Permits
Seasonal Permit $400 per month
Short Term Permit $15 per day
Stormwater Development Review Fee
Stormwater Plan Review Fee $114
Large Project Plan Review Deposit
Tier 2 $3,460
Tier 3 & 4 $4,613
Research Fee - 1/2 hour minimum charge Cost
Information Technology Fee (Resolution No. 3796 adopted 11/12/09) 5% of Permit Fee Final Map Cost; $3,000 min. deposit

PUBLIC WORKS DEPARTMENT FEES
269
Item 9 D.

Description 2021/22 Amended Fee Schedule
Administration/Documents
Continuance Request - Applicant (2+) $170
Staff Billing Rate Cost
Appeals - by Applicant Cost
Appeals - by City Officials $0
Appeals - by Other $545
Coastal Development Permit Appeal $0
Appeals - Building/Zoning Code Violations $545
Records Search/Research/Special Report Cost
Administrative Permits
Tree Removal - Staff Review $138
Tree Removal - 3 or more trees on a property $296
Tree Installation Deposit (Refundable) $500 deposit
Tree replacement in-lieu fee (if available) $600 per tree Tree removal w/ PC approval $1,000 deposit
Commercial Sidewalk/Parking Lot Sale Permit $82
Tenant Use Permit (MCUP)--Staff approval $83
Transient Rental Occupancy Use Permit $577
Home Occupation Use Permit $173
Fence Permit- Staff approval $46
Fence Permit- PC approval $865
Sidewalk vendor permit $127
Sidewalk vendor annual refuse fee $509
Temporary Sidewalk Dining $83
Temporary Use Administrative Permit $83
Sign Permits
Temporary Signs and Banner Permits $41
Sign permit - Staff Review $139
Sign permit - PC Review $577
Master Sign Program Cost; $3,000 min deposit
Village Sidewalk Sign Permit $71
Design Permits
Residential Single Family/Minor Design Permit - Staff Review $843 Residential Single Family - PC Review $2,884
Residential Multi-Family - PC Review $4,035
Commercial - PC Review $4,000 deposit
Secondary Dwelling Unit- Staff Review $577
Secondary Dwelling Unit- PC Review $1,731
Residential Multi-Family/Minor Design Permit - Staff Review $2,000 deposit Commercial Minor Design Permit $2,000 deposit
Historic In-Kind Replacement Design Permit $500 deposit Use Permits
Master Conditional Use Permit Cost; $3,500 min. deposit Conditional Use Permit/Minor Use Permit - Staff Review $1,701 Conditional Use Permit - PC approval Cost; $3,000 min. deposit Temporary Use Permit $86
Subdivisions
Certificate of Compliance & Lot Merger $577
Boundary Line Adjustment $921
Tentative Parcel Map Cost; $2,000 min. deposit
Tentative Map Cost; $5,000 min. deposit
Revised Map $2,000 deposit
Time Extension $2,000 deposit
Subdivision Modification $2,000 deposit
Plan Amendments
General Plan Amendment Cost; $5,000 min. deposit
Local Coastal Plan Amendment Cost; $5,000 min. deposit
Rezone Cost; $5,000 min. deposit

PLANNING FEES
270
Item 9 D.

Description 2021/22 Amended Fee Schedule
Planned Development Rezone Cost; $3,500 min. deposit
Other Discretionary Permits
Variance $1,731
PC review of minor modifications $1,556
Coastal Development Permit $865
Coastal Permit Exclusion $97
Mobile home Park Change of Use or Closure $5,000 deposit Development Agreement $10,000 min. deposit
Developer agreement annual review $2,500 deposit
Specific Plan Cost; $5,000 min. deposit
Permit Time Extension -Staff Review $577
Permit Time Extension - PC Review $1,731
Permit Amendment (any permit) 50% of original cost
Annexation Costs+ overhead / $3,000 min. deposit
Minor Modification $1,731
Environmental Review
Negative Declaration (and Mitigated ND) Cost; $2,000 min deposit EIR Processing Cost; + 21% of consultant; $10,000 min deposit Mitigation/Condition Monitoring Program Cost + 21%
NEPA Compliance Cost + 21%
Other Permits/Fees
Conceptual Review Fee- PC $1,731
Conceptual Review Fee- PC and CC $2,595
Technical Study Preparation and Review Cost + 21%
NOTE: Third party review costs to be required as necessary Cost + 21% Code Compliance Double Application Fees
Code Compliance confiscated property recovery fee $273
Research Fee - 1/2 hour minimum charge Cost
Pre-Application Review $242
Building Plan Check & Final Inspection 20% of Building Permit Fee Major Development Project Fee Cost; $5,000 min. deposit Historical significance determination $4,250 deposit
Inclusionary Housing
Inclusionary Housing - Unit Sale $577
Inclusionary Housing - Unit Refinance $231
Single Family Residence $2.50 per square foot
Other Fees and Assessments
General Plan Maintenance Fee Total Building Valuation X 0.5% Information Technology Fee (Resolution No. 3786 adopted 11/12/09) 5% of Permit Fee Green Building Educational Resource Fund Fee (Municipal Code 17.10.080) Fee equals .0025 times the overall building permit valuation of the project.

Affordable Housing In-Lieu Fees
For Sale Housing Developments of two to six units (Municipal Code Chapter 18.02/Reso. 3473) :

All Units $10 per sq. ft.

For Sale Housing Developments of Seven or more units
#Units #Units Built
7 1 $0
8-13 1 Total # units minus 7 @ $10 per avg. sq. ft. per unit 14 2 $0
15-20 2 Total # units minus 14 @ $10 per avg. sq. ft. per unit 21 3 $0
22-27 3 Total # units minus 21 @ $10 per avg. sq. ft. per unit 28 4 $0
Rental Multi-Family $6 per sq. ft.
271
Item 9 D.

Description 2021/22 Amended Fee Schedule
NOTES:

1. All Fees are non‐refundable.

2. Deposit accounts are billed on a time and material basis. Additional deposits may be necessary depending on the complexity of the project. Any unused monies in a deposit account will be refunded following case closure.

3. The Community Development Director may reduce the total fee/deposit requirements for applications which are unlikely to require the full deposit amounts established herein.

4. Applications which include a fee and a deposit payment will be processed with a single deposit account.

5. Outside agency fees, including but not limited to County recordation fees, State Fish and Wildlife fees, etc. are charged at cost.

6. The Community Development Director may establish a reasonable fee or deposit amount for permit types required by the Capitola Municipal Code or State law which are not included in the fee schedule.

7. Flat fee applications are entitled up to two public hearings. Additional public hearings shall be charged to the applicant at cost

8. The Community Development Director may designate a project as a Major Development Project if it has a valuation of $2M+ or is considered technically complex or especially controversial.
272
Item 9 D.

Description 2021/22 Amended Fee Schedule
The cost of a “combination building permit” shall be 1.5 times the amounts shown in Table 1-A. A “combination building permit” is defined as a permit for a scope of construction work regulated by two or more of the model codes. The model codes are the building code, the plumbing code, the mechanical code and the electrical code.

The cost of a “building permit”shall be the amounts shown in Table 1-A.

A “building permit” is defined as a permit for a scope of construction work regulated solely by a single model code. The model codes are the building code, the plumbing code, the mechanical code and the electrical code.

TABLE 1-A
Total Valuation FEES
$1.00 to $500.00 $27.11
$501.00 to $2,000.00 $27.11 for the first $500.00 plus $3.52 for each additional $100.00 or fraction thereof.
$2,001.00 to $25,000.00 $79.91 for the first $2,000.00 plus $16.14 for each additional $1000.00 or fraction
thereof.
$25,001.00 to $50,000.00 $451.13 for the first $25,000.00 plus $11.65 for each additional $1,000.00 or fraction
thereof.
$50,001.00 to $100,000.00 $742.38 for the first $50,000.00 plus $8.08 for each additional $1,000.00 or fraction
thereof.
$100,001.00 to $500,000.00 $1,146.38 for the first $100,000.00 plus $6.47 for each additional $1,000.00 or
fraction thereof.
$500,001.00 to $1,000,000.00 $3,734.38 for the first $500,000.00 plus $5.47 for each additional $1,000.00 or
fraction thereof.
$1,000,001.00 and up $6,469.38 for the first $1,000,000.00 plus $2.96 for each additional $1,000.00 or
fraction thereof.

Building Plan Check Fee 65% of Building Permit Fee
Reinspection Fee $127
Resubmitted Plan Check Fee 106.77 / hr.

Building Permit Extension Fee $179
Building Permit Reinstatement Fee 50% of the original, singular building permit fee or combo building permit fee, whichever
is applicable to the permit being reinstated
Stop Work Order Fee 2x the singular building permit fee

BUILDING FEES
273
Item 9 D.

Description 2021/22 Amended Fee Schedule
Greywater System Permit $0
Electric Vehicle Charging Permits (* Note: These fees were added to the fee schedule for FY2011-12, but will be waived per the Green Energy Increntive Program)
a. Level I (120 volts) $0
b. Level II (208-240 volts) $0
c. Level III (480 volts) $0
Solar P.V. System $0
Solar P.V. System (Commercial Sale/Distribution) $0
Solar Hot Water Heater $0
Research Fee - 1/2 hour minimum charge Cost
Information Technology Fee (Resolution No. 3786 adopted 11/12/09) 5% of Permit Fee Temporary Trailer/Mobile Home Occupancy Permit $55
Structural Review of Engineered Plans cost + 21%
Outside Consultant Plan Review cost + 21%
Grading Plan Review Fees
50 cubic yard or less $ -
51 to 100 cubic yard $ 27.11
101 to 1,000 cubic yards $ 42.67
1,001 to 10,000 cubic yards $ 55.37
10,001 to 100,000 cubic yards $55.38 for first 10,000 plus $28.27 for each additional 10,000 cubic yards
100,001 to 200,000 cubic yards $309.79 for first 100,000 plus $15.28 for each additional 10,000 cubic yards
200,001 cubic yards or more $447.29 for first 200,000 plus $8.37 for each additional 10,000 cubic yards
Grading Permit Fees
50 cubic yard or less $ 27.11
51 to 100 cubic yard $ 42.67
101 to 1,000 cubic yards $42.67 for first 100 plus $20.19 for each additional 100 cubic yards
1,001 to 10,000 cubic yards $224.38 for first 1,000 plus $16.72 for each additional 1,000 cubic yards
10,001 to 100,000 cubic yards $374.86 for first 10,000 plus $76.13 for each additional 10,000 cubic yards
100,001 to 200,000 cubic yards $1,060.03 for first 100,000 plus $42.10 for each additional 10,000 cubic yards
274
Item 9 D.

Description 2021/22 Amended Fee Schedule
All fees are evaluated annually to determine if they are competitive with other recreation programs in Santa Cruz County
Classes
Negotiated Instructor Activity Fee (Instructor receives 65% of this fee, Department retains 35%) Registration Fee - Resident (Capitola Residents Only)-Department retains this fee $18 Online Registration fee - Department retains this fee 5.5% of Activity Fee Non-Resident (Anyone residing outside of the City) in addition to Residential Registration FeeDepartment retains this fee $15
Senior Discount 10%
Negotiated Instructor of Private Tennis Lessons Activity Fee (Instructor receives 75% of this fee, Department retains 25%)
Sports
League Fees Costs + 30% admin fee
League fees will change depending upon number and type of leagues offered, number of games per league, number of officials, amount of equipment needed, field/site prep and maintenance, and whether or not playoffs & awards are offered. Fees are calculated based on direct costs + 30% admin fee.

After School - Fees include $30 non-refundable registration fee Resident/non resident $5.00 / $5.67 per hour
* Hourly rate used only to calcuate monthly fee amount
* Scholarships may be available
Late Pick-Up Fee $1 per minute
Junior Guards - Fees include $30 non-refundable registration fee Resident/non resident $278 / $347
U-19 resident/non resident $193
Late Pick-Up Fee $1 per minute
Regionals $95
* Scholarships may be available
Camp Capitola - Fees include $30 non-refundable registration fee All day 2 week session, resident/non resident $308 / $386 1/2 day 2-week session, resident/non resident $156 / $194 All day 1 week session, resident/non resident $156 / $194 All day 1 week teen session, resident/non resident $278 / $347 Junior Leader program $67
Late Pick-Up Fee $1 per minute
Extended Care - daily add on, resident/non resident $11 AM Extended Care - per 2 week session resident/non resident $53 PM Extended Care - per 2 week session resident/non resident $53 Transportation fee to Jr. Guards per session $58
* Scholarships may be available
Family Camp
3 night family camp Adult (13+) / Child (3-12) $328.83 / $224.31 per night Facility Rentals
Field and Courts hourly rental; non profit youth groups/other non profit & Cap residents/all others $14 / $26 / $35 Jade Street Community Center
Rooms A&B hourly rent $45
Room C hourly rent $61
Patio hourly rent $9
Kitchen hourly rent $22
Entire Center hourly rent $159
Non profit discount of Jade Street Facility rents 25%
Community Center Deposit
1 to 50 people $102
51 to 150 people $254
151 to 250 people $509

PARKS AND RECREATION FEES
275
Item 9 D.

Description 2021/22 Amended Fee Schedule
Lost key fee $25
Event vendor fee $102 per event
Field Prep and/or additional staffing required to prepare for or supervise the Sports rentals only $13 / hr Notes: Residents include Soquel Union Elementary School District Costs mean staff costs adjusted for benefits, department overhead, and City overhead as calculated by the City Manager. Costs can also mean direct cost of a consultant. When consultant costs are included 21% of such costs will be charged to cover staff time for contract management. Staff costs do not accrue during an appeal unless appeal is made by applicant.

Deposits are stated as minimums. Actual deposits depend on the evaluation by staff of an individual project or application. The City Manager may lower minimum deposits if the application or project justifies a lower deposit. When an application involves multiple minimum fees the highest minimum fee applies.
276
Item 9 D.

Description 2021/22 Amended Fee Schedule
Research Fee - 1/2 hour minimum charge Cost
Print of an electronically available Photograph in
Collection
$7
Digital Copies of Collection Items $20
Scan High Resolution Tiff File of any collection
item for a customer
$24

HISTORICAL MUSEUM FEES
277
Item 9 D.

Animal Service Fees
Charged by Santa Cruz County
Proposed 2021-22
Adoption Fees
Dogs
Puppies 2-6 months $195
Adults 7 mon-6 yrs $130
Sr. Adult 6 yrs+ $60
Cats
Kittens 2-12 months $120
Adults 1-6 yrs $100
Sr. Adult 6 yrs+ $55
Rabbits $50
Rodents $25
Small caged birds $25
Exotic birds (i.e. parrots) $75
Small Livestock $75
Large Livestock $100
Horse $250
Chicken/Rooster $10
Adoption Hold Fee, until 5:00 p.m. next business day, not applicable to adoption, non-refundable Cat $20
Dog $25
Adoption fee for rescue/non-profit agencies is equal to the cost of the spay/neuter for only adoptable animals Adoption fee for rescue/non-profit agencies for Rabbits $20 Adoption fee for rescue/non-profit agencies include a microchip Impound Fees
Altered * Unaltered
Cat First Impound $ 30 $ 30 + Penalty $ 35
Second Impound $ 50 $ 50 + Penalty $ 50
Third Impound $ 75 $ 75 + Penalty $100
Fourth/Subsequent $ 75 $ 75 + Penalty $100
Dog First Impound $ 75 $ 75 + Penalty $ 35
Second Impound $ 115 $115 + Penalty $ 50
Third Impound $ 195 $195 + Penalty $100
Fourth/Subsequent $ 225 $225 + Penalty $100
*Unaltered animal penalty fee provided under California Food and Agriculture Code section 30804.7 and 31751.7 Livestock: Large: First Impound $200
Second/Subsequent $250
Small: First Impound $75
Second/Subsequent $125
A.C. Officer Services $75 /hour min.2 hours (after hrs) Boarding Fees - Daily
Cats $20/day
Dogs $25/day
Other $25/day
278
Item 9 D.

Animal Service Fees
Charged by Santa Cruz County
Proposed 2021-22
License Fees – Dogs
Altered - one year $29
Unaltered - one year $100 with Unaltered Animal Certificate Late Penalty $15
Senior Citizen (65+) - Altered dog $29
Senior Citizen (65+) - Unaltered dog $100
Potentially Dangerous/Vicious dog $200
Late Penalty for dog licenses for dogs designated $100
Potentially Dangerous, Vicious, Habitual or Public
Nuisance.

Unaltered Animal Certificate (one-time fee) $350
Exemption from Unaltered Animal Certificate $15 plus license fee Administrative fee for mailed licenses $1
Replacement License Tag Fee $5
Failure to License Penalty (per dog, if impounded) $30
License Fees – Cats
Unaltered Animal Certificate $350
Quarantine Fees
Home Quarantine (Field Check) $75
Shelter Quarantine $50 plus board fees
Service Fees
Microchip/walk-in service $15
Microchip for impounded dogs and cats $25
Dog/Cat trap rental N/C
Dog Humane Trap Deposit $255
Cat Humane Trap Deposit $70
Trap Processing Fee $10
Pick-Up Animal in a Trap $75
Pick-Up of Owned Animal $75
Pick-up and Disposal of Deceased Animal on Private Property $85 Use of Livestock Trailer $100/$150 (1st /2nd time)
Medical Fees
Medical groom $25 - $100
Medical nail tirm $15
Medication dispensed $20
Vet procedure $25 - $100
Rabies $14
FVRCP $20
DA2PP $20
Medical bath $20
Wound prep $35
Kitten Package $400
Puppy Package $400
Dental $200 - $800
Owner Surrender of Animal Residing in Santa Cruz County Owner Surrender of Dog $0
Owner Surrender of Cat $0
Owner Surrender of Rabbit $0
Owner Surrender of Exotic $0
(snake, lizard, bird, turtle) $0
small rodents $0
Large livestock $0
small livestock $0
Large Exotic $0
Owner Surrender of Animal Residing Outside of Santa Cruz County 279
Item 9 D.

Animal Service Fees
Charged by Santa Cruz County
Proposed 2021-22
Owner Surrender of Dog $50
Owner Surrender of Cat $35
Owner Surrender of Rabbit $25
Owner Surrender of Exotic $55
(snake, lizard, bird, turtle) $15 - $35
small rodents $10 - $25
Large livestock $100
small livestock $75
Large Exotic $55
Protective Custody Fee
Owner Arrest $75 /hour min.(2 hours after hrs)
Confiscate/Humane $75 /hour min.(2 hours after hrs)
Emergency Hospital $25
Owner Requested Euthanasia $75 Plus Disposal
Disposal of Owned Dead Animals $50
Refund Processing Fee $25
Animal Control Officer Services $75/hour (2 hr minimum after hours)

Field Return of Owned Animal $75
Spay/Neuter Fees for Impounded Animals
Cats $50
Dogs $195
Planned Pethood Spay/Neuter Fees
Dog $190
Cat $25
Rabbit $75
Pit Bulls & Chihuahuas $50
Animals over 100 lbs., in heat, pregnant or cryptorchid add $35 Animals determined obese by veterinarian add $50
Microchip $15
License $29
Rabies $14
Late drop-off fee $20
Late pick-up fee $40/night
Blood panel for dogs over 7 yrs of age and cats over 10 yrs of age $75 Dog $50
Cat $10
Rabbit $50
*Limited income eligibility determined through proof of receipt of government assistance OR through a year-to-date pay stub or W2 tax form that proves the following:
1 person household--maximum of $35,350 annual income
2 person household--maximum of $40,350 annual income
3 person household--maximum of $45,400 annual income
4 person household--maximum of $50,400 annual income
ONE STOP Fees with Purchase of License
Rabies $10
Microchip $15
Fees for Additional Required Services
Planned Pethood Spay/Neuter Fees for Limited Income*
*Animals over 100 lbs., in heat, pregnant or cryptorchid – add $25. Animals determined obese by veterinarian add $50. Animals over 7 years of age are required to receive a blood panel for an additional $55. Late drop-off fee (more than 20 minutes) is $20.

Reschedule fee for missed appointments is $25.
280
Item 9 D.

Animal Service Fees
Charged by Santa Cruz County
Proposed 2021-22
Nuisance Abatement Appeals Fee (County) $75
Non-sufficient Funds Check Fee $40
Puppy Training Deposits $100 - $200
Training Room Rental Fees $22
FINES FOR VIOLATIONS OF ANIMAL ORDINANCE – ADMINISTRATIVE CITATION PROGRAM *Failure to license
First offense in one year $100
Second offense in one year $200
Third offense in one year $500
**Failure to microchip
First offense in one year $100
Second offense in one year $200
Third offense in one year $500
***Failure to provide rabies vaccination
First offense in one year $100
Second offense in one year $200
Third offense in one year $500
Failure to display license (each dog) $50
****Failure to spay or neuter dog or cat over 6 months, unless owner holds unaltered animal certificate First offense $250
Second offense $500
Third offense $750
Dog running at large, first offense $100
Dog running at large, second offense $200
Dog running at large, third offense $250
Dog off leash, first offense $50
Dog off leash, second offense $150
Dog off leash, third offense $250
Safety of animal in parked vehicle $250
Failure of owner to pick up after dog or cat defecating $100 Habitual noisy animals (6.12.090) $100
Permitting livestock to trespass, per offense $200
All first offense recommended penalties not subject to cure will be reduced by 50% if they are paid in full by 5:00 p.m. of the first business day following issuance.
*Citations for failure to license will be dismissed if cured within 7 calendar days, including day of issuance **Citations for failure to microchip will be dismissed if cured within 7 calendar days, including day of issuance. ***Citations for failure to provide rabies vaccination will be dismissed if cured within 7 days, including day of issuance. ****Citations for failure to spay or neuter dog or cat over 6 months, unless owner holds unaltered animal certificate, will be dismissed if ASA receives evidence that animal was spayed or neutered within 30 calendar days, including day of issuance.
281
Item 9 D.

Description 2021-22 Fee Schedule 2021-22 Amended Fee
Schedule
Administrative Decision Appeal Fee $536 $536
Bingo Permit $64 $64
Capitola Municipal Code $677 $677
Capitola Municipal Code Supplement Service (Per
year)
$204 $204
Capitola Municipal Code copies $0.15 / page $0.15 / page 1 – 5 copies
6 or more copies (Per copy)
Gov’t Code § 81008 (Political Reform Act)
statements/reports (Per copy)
$0.10 / page $0.10 / page
Video Tapes, Flash Drive, CD/DVD Production Cost + $51.60 1st Hour (Minimum) + $25.80 / hour
Cost + $51.60 1st Hour (Minimum) +
$25.80 / hour
Simple film permit City Manager discretion not to exceed $3,000
$50
Major film permit City Manager discretion not to exceed $3,000
$250
Entertainment Permit Application Fee $39 $39
Single Event Permit $39 $39
Minor Entertainment Permit $166 $166
Regular Entertainment Permit $621 $621
Pet Shops and Kennel License Fee (Municipal Code
§ 5.20.020) set only by ordinance
$24 $24
Returned Check Fee $39 $39
Business License Overpayment Refund Fee
(resolution 3532, ord 871)
0 (Set to -0- by Council in 2011) 0 (Set to -0- by Council in 2011) Business License Late Payment Penalty Admin. Fee $35 + 10% each month late $35 + 10% each month late Business License Application Fee (Reso. 3532) $39 $39
Business License - Disability Access and Education
Fee (State)
$4 $4
Temporary, Publicly Attended Activities,
Application Fee (Municipal Code § 9.36.040)
$34 $34
Public Art (Total Building Valuation $250,000 or
more) (Municipal Code Chapter 2.58)
2% of TBV or 1% in lieu to City 2% of TBV or 1% in lieu to City Notice of Intent to Circulate Initiative Petition
(Elections Code § 9103(b))
$200 $200
Bandstand Rental Fee $231 / 4 hrs or $692 all day / deposit $1,500
$231 / 4 hrs or $692 all day / deposit
$1,500
Notary Service Fees (State Code) $0 $0
Acknowledgment or proof of a deed, or other
instrument, to include the seal and writing of the
certificate
$15 / signature $15 / signature
Administering an oath or affirmation to one
person and executing the jurat, including the seal
$15 / signature $15 / signature
Credit Card Transaction Fee 3% $0
Electric Vehicle Charging Fee $0.50 / hour $0.50 / hour Retail Cannabis Application Fee $1,662 $1,662
Retail Cannabis License Fee $2,550 $2,550

MISCELLANEOUS FEES
282
Item 9 D.

Description 2021-22 Fee Schedule 2020-21 Amended Fee
Schedule
Special Event Permit $61 $61
Amplified Sound Permit (Municipal Code 9.12.040) $31 $31 DUI Cost Recovery Fee (Res. 3533) Not to exceed $12,000 Not to exceed $12,000 Copies of reports: Crime Reports, Special Reports, etc. (Regardless of number of pages) $0.25 / page $0.25 / page Copies of: Citations, Code sections, Ordinances, etc. $0.25 / page $0.25 / page Bicycle Licenses (New) $11 $11
Bicycle Licenses (Renewal) $8 $8
Citation Sign-Offs $0 $0
Photographs $20 + administration fees $20 + administration fees VIN verifications $16 $16
Video Tapes, Flash Drive, CD/DVD Production Cost + $53.60 1st Hour (Minimum) + $26.80 / hour
+ $53.60 1st Hour (Minimum) + $26.80 / hour
Local Fire Arm dealers (set by state)
New application set by state set by state
Renewal set by state set by state
Second Dealers License (set by state)
Application set by state set by state
Renewal set by state set by state
Taxi Fee per application set by state set by state
Civil Subpoena (per case) (set by state) set by state set by state Parking Permits (separate action by the Council)
Neighborhoods per year (Resolution No. 3733) $25 $25
Village Preferential Permit (Resolution No. 3733) $50 per year $50 per year Village Employer/Employee Permit (Resolution No. 3733) $50 per year $50 per year Morning Village Parking Permit (Resolution No. 3715) $50 per year $50 per year Concealed Weapon Permits (set by state)
Application
Standard set by state set by state
Judicial set by state set by state
Employment set by state set by state
Renewal
Standard set by state set by state
Judicial set by state set by state
Employment set by state set by state
Firearm Surrender Fees (set by state law)
1-5 guns set by state set by state
6+guns set by state set by state
Vehicle Storage per day $27 $27
Administrative fee to release Impounded / Stored Vehicle $131 $131 Surf School Permit Fee $536 $536
Animal Services Fees
See Exhibit B "Animal Services Fees"

POLICE DEPARTMENT FEES
283
Item 9 D.

Description 2021-22 Fee Schedule 2021-22 Amended Fee
Schedule
Encroachment Permits
Non-Construction Items (includes materials storage within right-of-way road and sidewalk closures $68 $68
Village Sidewalk Encroachment Permit $39 $39
Construction Items
Level A $205 $205
Level B $454 $454
Level C $906 $906
Level D $1,473 $1,473
Level E $2,041 $2,041
Residential Blue Curb Application Fee $214 $214
Residential Blue Curb Annual Fee $54 $54
Blanket Permits (repair and maintenance of existing facilities) $2,266 $2,266 Private Improvement Permits/Encroachment Agreement
Applications for Minor Permits $226 $226
Applications for Major Permits $567 $567
New Memorial Bench $1,026 $1,026
Replacement Memorial Bench $500 $500
Memorial Plaque (wharf) $770 $770
Memorial Plaque (Grand Ave) $770 $770
Replacement Plaque $250 $250
Memorial Plaque (tree) $500 + Cost of Tree $500 + Cost of Tree Memorial Picnic Table $1,643 $1,643
Seasonal Boat Storage Permits
Seasonal Permit $400 per month $400 per month
Short Term Permit $15 per day $15 per day
Stormwater Development Review Fee
Stormwater Plan Review Fee $112 $112
Large Project Plan Review Deposit
Tier 2 $3,402 $3,402
Tier 3 & 4 $4,535 $4,535
Research Fee - 1/2 hour minimum charge Cost Cost
Information Technology Fee (Resolution No. 3796 adopted 11/12/09) 5% of Permit Fee 5% of Permit Fee Final Map Cost; $3,000 min. deposit Cost; $3,000 min. deposit

PUBLIC WORKS DEPARTMENT FEES
284
Item 9 D.

Description 2021-22 Fee Schedule 2021-22 Amended Fee Schedule Administration/Documents
Continuance Request - Applicant (2+) $167 $167
Staff Billing Rate Cost Cost
Appeals-by Applicant Cost Cost
Appeals- by City Officials $0 $0
Appeals- by Other $536 $536
Coastal Development Permit Appeal $0 $0
Appeals -Building/Zoning Code Violations $536 $536
Records Search/Research/Special Report Cost Cost
Administrative Permits
Tree Remova l- Staff Review $136 $136
Tree Removal -- 3 or more trees on a property $291 $291 Tree Installation Deposit (Refundable) $500 Deposit $500 Deposit Commercial Sidewalk/Parking Lot Sale Permit $81 $81
Tenant Use Permit (MCUP)--Staff approval $82 $82
Transient Rental Occupancy Use Permit $567 $567
Home Occupation Use Permit $170 $170
Fence Permit- Staff approval $46 $46
Fence Permit- PC approval $851 $851
Temporary Sidewalk Dining $82 $82
Temporary Use Administrative Permit $82 $82
Sign Permits
Temporary Signs and Banner Permits $41 $41
Signs permit - Staff Review $137 $137
Signs permit - PC Review $567 $567
Master Sign Program Cost; $3,000 min deposit Cost; $3,000 min deposit Village Sidewalk Sign Permit $70 $70
Design Permits
Residential Single Family/Minor Design Permit - Staff Review $829 $829 Residential Single Family - PC Review $2,836 $2,836
Residential Multi-Family - PC Review $3,967 $3,967
Commercial - PC Review $4,000 Deposit $4,000 Deposit
Secondary Dwelling Unit- Staff Review $567 $567
Secondary Dwelling Unit- PC Review $1,701 $1,701
Residential Multi-Family/Minor Design Permit - Staff Review $2,000 deposit $2,000 deposit Commercial Minor Design Permit $2,000 deposit $2,000 deposit Use Permits
Master Conditional Use Permit Cost; $3,500 min. deposit Cost; $3,500 min. deposit Conditional Use Permit/Minor Use Permit - Staff Review $1,701 $1,701 Conditional Use Permit - PC approval Cost; $3,000 min. deposit Cost; $3,000 min. deposit Temporary Use Permit $86 $86
Subdivisions
Certificate of Compliance & Lot Merger $567 $567
Boundary Line Adjustment $906 $906
Tentative Parcel Map Cost; $2,000 min. deposit Cost; $2,000 min. deposit Tentative Map Cost; $5,000 min. deposit Cost; $5,000 min. deposit Revised Map $2,000 Deposit $2,000 Deposit
Time Extension $2,000 Deposit $2,000 Deposit
Subdivision Modification $2,000 Deposit $2,000 Deposit
Plan Amendments
General Plan Amendment Cost; $5,000 min. deposit Cost; $5,000 min. deposit Local Coastal Plan Amendment Cost; $5,000 min. deposit Cost; $5,000 min. deposit Rezone Cost; $5,000 min. deposit Cost; $5,000 min. deposit Planned Development Rezone Cost; $3,500 min. deposit Cost; $3,500 min. deposit

PLANNING FEES
285
Item 9 D.

Description 2021-22 Fee Schedule 2021-22 Amended Fee Schedule Other Discretionary Permits
Variance $1,701 $1,701
Coastal Development Permit $851 $851
Coastal Permit Exclusion $96 $96
Mobile home Park Change of Use or Closure $5,000 Deposit $5,000 Deposit Development Agreement Cost; $5,000 min. deposit Cost; $5,000 min. deposit Specific Plan Cost; $5,000 min. deposit Cost; $5,000 min. deposit Permit Time Extension -Staff Review $567 $567
Permit Time Extension - PC Review $1,701 $1,701
Permit Amendment (any permit) 50% of original cost 50% of original cost Annexation Costs+ overhead / $3,000 min. deposit Costs+ overhead / $3,000 min. deposit Minor Modification $1,701 $1,701
Environmental Review
Negative Declaration (and Mitigated ND) Cost; $2,000 min deposit Cost; $2,000 min deposit EIR Processing Cost; + 17% of consultant; $10,000 min deposit Cost; + 17% of consultant; $10,000 min deposit Mitigation/Condition Monitoring Program Cost + 21% Cost + 21% NEPA Compliance Cost + 21% Cost + 21%
Other Permits/Fees
Conceptual Review Fee- PC $1,701 $1,701
Conceptual Review Fee- PC and CC $2,551 $2,551
Technical Study Preparation and Review Cost + 21% Cost + 21% NOTE: Third party review costs to be required as necessary Cost + 21% Cost + 21% Code Compliance Double Application Fees Double Application Fees Code Compliance confiscated property recovery fee $268 $268 Research Fee - 1/2 hour minimum charge Cost Cost
Pre-Application Review $238 $238
Building Plan Check & Final Inspection 20% of Building Permit Fee 20% of Building Permit Fee Major Development Project Fee Cost; $5,000 min. deposit Cost; $5,000 min. deposit Inclusionary Housing
Inclusionary Housing - Unit Sale $567 $567
Inclusionary Housing - Unit Refinance $227 $227
Single Family Residence $2.50 per square foot $2.50 per square foot Other Fees and Assessments
General Plan Maintenance Fee Total Building Valuation X 0.5% Total Building Valuation X 0.5% Information Technology Fee (Resolution No. 3786 adopted 11/12/09) 5% of Permit Fee 5% of Permit Fee Green Building Educational Resource Fund Fee (Municipal Code 17.10.080) Fee equals .0025 times the overall building permit valuation of the project.
als .0025 times the overall building permit valuation of the project.

Affordable Housing In-Lieu Fees
For Sale Housing Developments of two to six units (Municipal Code Chapter 18.02/Reso. 3473) :

All Units $10 per sq. ft. $10 per sq. ft.

For Sale Housing Developments of Seven or more units
#Units #Units Built
7 1 $0 $0
8-13 1 Total # units minus 7 @ $10 per avg. sq. ft. per unit Total # units minus 7 @ $10 per avg. sq. ft. per unit 14 2 $0 $0
15-20 2 Total # units minus 14 @ $10 per avg. sq. ft. per unit Total # units minus 14 @ $10 per avg. sq. ft. per unit 21 3 $0 $0
22-27 3 Total # units minus 21 @ $10 per avg. sq. ft. per unit Total # units minus 21 @ $10 per avg. sq. ft. per unit 28 4 $0 $0
Rental Multi-Family $6 per sq. ft. $6 per sq. ft.

NOTES:

1. All Fees are non‐refundable.

3. The Community Development Director may reduce the total fee/deposit requirements for applications which are unlikely to require the full deposit amounts established herein.

4. Applications which include a fee and a deposit payment will be processed with a single deposit account.

5. Outside agency fees, including but not limited to County recordation fees, State Fish and Wildlife fees, etc. are charged at cost.

7. Flat fee applications are entitled up to two public hearings. Additional public hearings shall be charged to the applicant at cost

8. The Community Development Director may designate a project as a Major Development Project if it has a valuation of $2M+ or is considered technically 286
Item 9 D.

Description 2021-22 Fee Schedule 2021-22 Amended Fee Schedule The cost of a “combination building permit” shall be 1.5 times the amounts shown in Table 1-A. A “combination building permit” is defined as a permit for a scope of construction work regulated by two or more of the model codes. The model codes are the building code, the plumbing code, the mechanical code and the electrical code.

The cost of a “building permit”shall be the amounts shown in Table 1- A. A “building permit” is defined as a permit for a scope of construction work regulated solely by a single model code. The model codes are the building code, the plumbing code, the mechanical code and the electrical code.

TABLE 1-A
Total Valuation FEES FEES
$1.00 to $500.00 $26.65 26.65
$501.00 to $2,000.00 $26.65 for the first $500.00 plus $3.46 for each additional $100.00 or fraction
thereof.
$26.65 for the first $500.00 plus $3.46 for
each additional $100.00 or fraction
thereof.
$2,001.00 to $25,000.00 $78.55 for the first $2,000.00 plus $15.87 for each additional $1000.00 or fraction
thereof.
$78.55 for the first $2,000.00 plus $15.87
for each additional $1000.00 or fraction
thereof.
$25,001.00 to $50,000.00 $443.56 for the first $25,000.00 plus $11.45 for each additional $1,000.00 or
fraction thereof.
$443.56 for the first $25,000.00 plus
$11.45 for each additional $1,000.00 or
fraction thereof.
$50,001.00 to $100,000.00 $729.81 for the first $50,000.00 plus $7.94 for each additional $1,000.00 or fraction
thereof.
$729.81 for the first $50,000.00 plus $7.94
for each additional $1,000.00 or fraction
thereof.
$100,001.00 to $500,000.00 $1,126.81 for the first $100,000.00 plus $6.36 for each additional $1,000.00 or
fraction thereof.
$1,126.81 for the first $100,000.00 plus
$6.36 for each additional $1,000.00 or
fraction thereof.
$500,001.00 to $1,000,000.00 $3,670.81 for the first $500,000.00 plus $5.38 for each additional $1,000.00 or
fraction thereof.
$3,670.81 for the first $500,000.00 plus
$5.38 for each additional $1,000.00 or
fraction thereof.
$1,000,001.00 and up $6,360.81 for the first $1,000,000.00 plus $2.94 for each additional $1,000.00 or
fraction thereof.
$6,360.81 for the first $1,000,000.00 plus
$2.94 for each additional $1,000.00 or
fraction thereof.

Building Plan Check Fee 65% of Building Permit Fee 65% of Building Permit Fee Reinspection Fee $125 125
Resubmitted Plan Check Fee $106.77 106.77
Building Permit Extension Fee $176 176
Building Permit Reinstatement Fee 50% of the original, singular building permit fee or combo building permit fee,
whichever is applicable to the permit being
reinstated
50% of the original, singular building
permit fee or combo building permit fee,
whichever is applicable to the permit
being reinstated
Stop Work Order Fee
2x the singular building permit fee 2x the singular building permit fee

BUILDING FEES
287
Item 9 D.

Description 2021-22 Fee Schedule 2021-22 Amended Fee Schedule Greywater System Permit $0 0
Electric Vehicle Charging Permits (* Note: These fees were added to the fee schedule for FY2011-12, but will be waived per the Green Energy Increntive Program)
a. Level I (120 volts) $0 0
b. Level II (208-240 volts) $0 0
c. Level III (480 volts) $0 0
Solar P.V. System $0 0
Solar P.V. System (Commercial Sale/Distribution) Cost Cost Solar Hot Water Heater $0 0
Research Fee - 1/2 hour minimum charge Cost Cost
Information Technology Fee (Resolution No. 3786 adopted 11/12/09) 5% of Permit Fee 5% of Permit Fee Temporary Trailer/Mobile Home Occupancy Permit $54 53.59692 Structural Review of Engineered Plans cost + 21% cost + 21% Outside Consultant Plan Review cost + 21% cost + 21%
Grading Plan Review Fees
50 cubic yard or less $ - 0
51 to 100 cubic yard $ 26.65 $ 26.65 101 to 1,000 cubic yards $ 41.95 $ 41.95 1,001 to 10,000 cubic yards $ 54.43 $ 54.43 10,001 to 100,000 cubic yards $54.44 for first 10,000 plus $27.79 for each additional 10,000 cubic yards $54.44 for first 10,000 plus $27.79 for each additional 10,000 cubic yards
100,001 to 200,000 cubic yards $304.51 for first 100,000 plus $15.02 for each additional 10,000 cubic yards $304.51 for first 100,000 plus $15.02 for each additional 10,000 cubic yards
200,001 cubic yards or more $439.68 for first 200,000 plus $8.23 for each additional 10,000 cubic yards $439.68 for first 200,000 plus $8.23 for each additional 10,000 cubic yards
Grading Permit Fees
50 cubic yard or less $ 26.65 $ 26.65 51 to 100 cubic yard $ 41.95 $ 41.95 101 to 1,000 cubic yards $41.95 for first 100 plus $19.85 for each additional 100 cubic yards $41.95 for first 100 plus $19.85 for each additional 100 cubic yards
1,001 to 10,000 cubic yards $220.60 for first 1,000 plus $16.44 for each additional 1,000 cubic yards $220.60 for first 1,000 plus $16.44 for each additional 1,000 cubic yards
10,001 to 100,000 cubic yards $368.56 for first 10,000 plus $74.84 for each additional 10,000 cubic yards $368.56 for first 10,000 plus $74.84 for each additional 10,000 cubic yards
100,001 to 200,000 cubic yards $1,042.12 for first 100,000 plus $41.39 for each additional 10,000 cubic yards $1,042.12 for first 100,000 plus $41.39 for each additional 10,000 cubic yards
288
Item 9 D.

Description 2021-22 Fee Schedule 2021-22 Amended Fee
Schedule
Research Fee - 1/2 hour minimum charge Cost Cost
Print of an electronically available Photograph in
Collection
$7 $7
Digital Copies of Collection Items $20 $20
Scan High Resolution Tiff File of any collection
item for a customer
$24 $24

HISTORICAL MUSEUM FEES
289
Item 9 D.

Description 2021/22 Fee Schedule 2020-21 Amended Fee Schedule All fees are evaluated annually to determine if they are competitive with other recreation programs in Santa Cruz County
Classes
Negotiated Instructor Activity Fee (Instructor receives 65% of this fee, Department retains 35%) 0 Registration Fee - Resident (Capitola Residents Only)-Department retains this fee $18 $18 Online Registration fee - Department retains this fee 5.5% of Activity Fee 5.5% of Activity Fee Non-Resident (Anyone residing outside of the City) in addition to Residential Registration FeeDepartment retains this fee$15 $15 Senior Discount 10% 10%
Negotiated Instructor of Private Tennis Lessons Activity Fee (Instructor receives 75% of this fee, Department retains 25%)
Sports
League Fees Costs + 30% admin fee Costs + 30% admin fee League fees will change depending upon number and type of leagues offered, number of games per league, number of officials, amount of equipment needed, field/site prep and maintenance, and whether or not playoffs & awards are offered. Fees are calculated based on direct costs + 30% admin fee.

After School - Fees include $30 non-refundable registration fee Resident/non resident $76/$86 per week $15/$17 per day $5.00 / $5.67 per hour * Hourly rate used only to calcuate monthly fee amount
* Scholarships may be available
Late Pick-Up Fee $1 per minute $1 per minute
Junior Guards - Fees include $30 non-refundable registration fee Resident/non resident $278 / $347 $278 / $347
U-19 resident/non resident $193 $193
Late Pick-Up Fee $1 per minute $1 per minute
Regionals $95 $95
* Scholarships may be available
Camp Capitola - Fees include $30 non-refundable registration fee All day 2 week session, resident/non resident $308 / $386 $308 / $386 1/2 day 2-week session, resident/non resident $156 / $194 $156 / $194 All day 1 week session, resident/non resident $156 / $194 $156 / $194 All day 1 week teen session, resident/non resident $278 / $347 $278 / $347 Junior Leader program $67 $67
Late Pick-Up Fee $1 per minute $1 per minute
Extended Care - daily add on, resident/non resident $11 $11 AM Extended Care - per 2 week session resident/non resident $53 $53 PM Extended Care - per 2 week session resident/non resident $53 $53 Transportation fee to Jr. Guards per session $58 $58
* Scholarships may be available
Family Camp
3 night family camp Adult (13+) / Child (3-12) $328.83 / $224.31 per night $328.83 / $224.31 per night Facility Rentals
Field and Courts hourly rental; non profit youth groups/other non profit & Cap residents/all others $14 / $26 / $35 $14 / $26 / $35 Jade Street Community Center
Rooms A&B hourly rent $45 $45
Room C hourly rent $61 $61
Patio hourly rent $9 $9
Kitchen hourly rent $22 $22
Entire Center hourly rent $159 $159
Non profit discount of Jade Street Facility rents 25% 25% Community Center Deposit
1 to 50 people $102 $102
51 to 150 people $254 $254
151 to 250 people $509 $509
Lost key fee $25 $25
Event vendor fee $102 per event $102 per event
Field Prep and/or additional staffing required to prepare for or supervise the Sports rentals only $13 / hr $13 / hr Notes: Residents include Soquel Union Elementary School District Costs mean staff costs adjusted for benefits, department overhead, and City overhead as calculated by the City Manager. Costs can also mean direct cost of a consultant. When consultant costs are included 21% of such costs will be charged to cover staff time for contract management. Staff costs do not accrue during an appeal unless appeal is made by applicant.

PARKS AND RECREATION FEES
290
Item 9 D.

Capitola City Council
Agenda Report
Meeting: January 13, 2022
From: City Manager Department
Subject: Appoint Representative to the Housing for Health Partnership Policy Board
Recommended Action: Appoint the City Manager to a two-year term on the Continuum of Care (CoC) Board, known as the Housing for Health Partnership Policy Board, as nominated by the Mayor.

Background: In 1995, the Federal Department of Housing and Urban Development (HUD) developed the concept of a Continuum of Care (CoC) through its annual homelessness assistance grants. At that time, the CoC was envisioned as a local network of relevant organizations and stakeholders that plan and coordinate funding for services and housing to assist individuals and families at-risk of or currently experiencing homelessness. HUD guidelines call for CoC representation from: nonprofit homelessness assistance providers, victim services providers, faith-based organizations, governments, businesses, advocates, public housing agencies, school districts, social services providers, mental health agencies, hospitals, universities, affordable housing developers, law enforcement, organizations serving veterans, and homeless or formerly homeless individuals. Our local CoC region includes all jurisdictions in the County of Santa Cruz.

The Federal Homeless Emergency Assistance and Rapid Transition to Housing Act of 2009 (HEARTH Act) codified the role of a local CoC to coordinate efforts to prevent and end homelessness. Since the passage of the HEARTH Act, an increasing number of federal, state, and local programs, and funding resources, require involvement and collaboration with the local CoC.

HUD regulations establish responsibilities for a CoC that include: regular meeting and appointment schedules, a governance charter, monitoring and evaluating programs funded with CoC resources, establishment of a coordinated system for people experiencing homelessness, and the development of standards for program-types supported with CoC resources. A CoC Board must follow HUD guidelines including Federal conflict of interest regulations. More details about CoC responsibilities can be found in Attachment 1 – Establishing and Operating a Continuum of Care.

According to HUD, the CoC Board composition must: include at least one homeless or formerly homeless individual; and represent the relevant organizations and projects serving homeless subpopulations, such as persons with substance use disorders; persons with HIV/AIDS; veterans; the chronically homeless; families with children; unaccompanied youth, the seriously mentally ill; and victims of domestic violence, dating violence, sexual assault, and stalking.

Previously our County CoC was known as the Homeless Action Partnership (HAP). On June 10, 2021, the City of Capitola adopted the Housing for a Healthy Santa Cruz Strategic Framework, which specifically called for County staff to “design, launch, and operate a new regional coalition, anchored by a leadership and accountability structure.” County staff from the Housing for Health Division worked with the current HAP Board and Executive Committee to develop a new governance charter and CoC coalition structure consistent with the Framework. 291
Item 9 E.

On June 18, 2021, the HAP Board adopted a new governance charter that outlined a process for establishing a new CoC entity in 2022. The new governance charter is included as Attachment

2. The new CoC entity will be known as the Santa Cruz County Housing for Health Partnership and will be overseen by its Policy Board. Meetings will be open to the public with agendas and meeting minutes published on an accessible website.

The governance charter calls for the Policy Board to include nine jurisdictional, three operational, and three partner system representatives. Policy Board representatives will attend a minimum of six meetings per year and agree to serve for two-year terms. The jurisdictional representatives include appointments by city councils and the County Board of Supervisors. The cities of Watsonville and Santa Cruz have two appointments each. Capitola and Scotts Valley will share a seat and alternate appointing a representative to the Board for two-year terms. Capitola will be appointing one individual for the initial board.

Discussion: In support of the approved Housing for a Healthy Santa Cruz Strategic Framework, the current CoC Homeless Action Partnership (HAP) adopted a new governance charter intended to increase the effectiveness and impact of the CoC in preventing and ending homelessness in Santa Cruz County. The Capitola City Council plays an important role in appointing one representatives to the new Santa Cruz Housing for Health Partnership Policy Board.

Rates of homelessness in the United States vary throughout the United States and California.

Research has established strong correlations between rates of homelessness in each community and the housing affordability gap between household incomes and housing costs. However, the housing affordability gap alone does not fully explain different regional rates of homelessness. A variety of other factors contribute to homelessness including the ability of local health, housing, human service, and criminal justice systems to work collaboratively with the community on shared goals and initiatives focused on prevention and re-housing efforts. Nominees to the CoC Board should possess a commitment to the goal of ending homelessness; a passion for working in innovative, dynamic, and collaborative efforts; and a desire to bring personal and professional resources and influence networks into alignment with shared strategic plans and goals.

Consistent with the process used in other jurisdictions, the Mayor should propose a nomination to the new Policy Board. Capitola’s City Manager has significant experience working on regional homeless issues as a long-serving member of the HAP Executive Committee. With that experience, and the technical nature of the work, Mayor Storey nominates Jamie Goldstein to represent the City of Capitola on the new Policy Committee.

Fiscal Impact: Appointment of a representative to the Santa Cruz Housing for Health Policy Board will have no direct financial impact on the City, other than the commitment of staff time to serve on the Board.

Attachments:

1. Establishing and Operating a Continuum of Care

2. Housing for Health Partnership Governance Charter
Report Prepared and Approved By: Chloe Woodmansee, City Clerk 292
Item 9 E.
2012
Establishing and Operating a
Continuum of Care
293
Item 9 E.

TABLE OF CONTENTS

1. The Continuum of Care (CoC) Program ................................................................................. 1

1.1 Overview of CoC Program User Guide Series ................................................................. 1

1.2 Citations within the Guides .............................................................................................. 2

2. Establishing a Continuum of Care .......................................................................................... 3

2.1 Community-wide Commitment ......................................................................................... 3

2.2 Geographic Representation. ............................................................................................ 4

3. CoC Responsibilities .............................................................................................................. 4

3.1 Operating the CoC ........................................................................................................... 4

3.2 CoC Planning .................................................................................................................. 6

3.3 Designating and Operating an HMIS ................................................................................ 7

3.4 Preparing the Application for CoC Program Funds .......................................................... 8

4. Overview of CoC Governance and Structure .......................................................................... 9

4.1 CoC Board Requirements ................................................................................................ 9

4.2 CoC Subcommittees and Work Groups ..........................................................................10

5. Funding for Eligible CoC Planning Costs ...............................................................................10

5.1 Amount Available ............................................................................................................10

5.2 Eligible Applicants for CoC Planning Funds ....................................................................11 294
Item 9 E.

Establishing and Operating a CoC Page 1 11-20-12

1. THE CONTINUUM OF CARE (COC) PROGRAM
The Homeless Emergency Assistance and Rapid Transition to Housing Act of 2009 (HEARTH Act) amended the McKinney-Vento Homeless Assistance Act. Among other changes, the HEARTH Act consolidated the three separate McKinney-Vento homeless assistance programs (Supportive Housing Program, Shelter Plus Care program, and Section 8 Moderate Rehabilitation SRO program) into a single grant program known as the Continuum of Care (CoC) Program.

HUD published the Continuum of Care Program interim rule in the Federal Register on July 31, 2012. The rule was posted on HUD’s website and now governs the CoC Program.

The CoC Program is designed to assist individuals (including unaccompanied youth) and families experiencing homelessness and to provide the services needed to help such individuals move into transitional and permanent housing, with the goal of long-term stability. More broadly, the program is designed to promote community-wide planning and strategic use of resources to address homelessness; improve coordination and integration with mainstream resources and other programs targeted to people experiencing homelessness; improve data collection and performance measurement; and allow each community to tailor its program to the particular strengths and challenges within that community.

Each year, HUD awards CoC Program funding competitively to nonprofit organizations, States, units of local governments, and/or instrumentalities of State or local government collectively known as recipients. In turn, recipients may contract or subgrant with other organizations or government entities, known as subrecipients, to carry out the grant’s day-to-day program operations.

1.1 Overview of CoC Program User Guide Series
A series of user guides is being developed to help CoCs, recipients, and subrecipients administer CoC Program funds (see box on next page). Recipients and subrecipients are the primary audience for the user guide series. All user guides will be accessible on the Homelessness Resource Exchange when they are available.

This user guide provides an overview of how to establish and operate a CoC, focusing on CoC governance and responsibilities.
295
Item 9 E.

Establishing and Operating a CoC Page 2 11-20-12
Overview of Forthcoming CoC User Guide Series
Establishing and Operating a CoC: This user guide outlines how to create an effective and representative Continuum of Care in order to fulfill the roles and responsibilities set out in the CoC Program interim rule.

Introduction to Unified Funding Agencies (UFA): This user guide discusses the process for becoming a UFA and the roles and responsibilities that accompany it.

Determining and Documenting Homeless and At Risk Status, Income, and Disability: This user guide discusses the criteria used to define homelessness and at risk of homelessness, including income, disability, and associated recordkeeping requirements.

CoC Program Components and Eligible Costs: This user guide reviews the five CoC program components and the costs that recipients and subrecipients may incur in administering and operating CoC projects.

CoC Program Funding for Homeless Management Information System (HMIS): This user guide reviews the role of the HMIS within the CoC and the differences between eligible HMIS costs incurred by recipients as part of a project and eligible costs incurred by the HMIS lead in establishing, operating, and overseeing the use of the CoC's HMIS.

CoC Program’s High-Performing Community: This user guide discusses how CoCs may become a high-performing community (HPC) and provide homelessness prevention assistance. It also outlines the populations that may be served, the specific activities that may be funded, and the additional requirements associated with administering the activities.

Project Administration and General Program Requirements: This user guide describes project administrative costs and general program requirements applicable to the CoC Program— regardless of which components are carried out—such as match, calculating rents and occupancy charges, timeliness standards, and terminations.

Grant Administration: This user guide reviews the standards for administering a CoC grant, including recordkeeping requirements and how to make project changes.

1.2 Citations within the Guides
Throughout this guide, you will see references to specific provisions of the McKinney-Vento Homeless Assistance Act as well as references to the Code of Federal Regulations (CFR). You may locate the relevant areas in the Act by visiting
www.hudhre.info/documents/HomelessAssistanceActAmendedbyHEARTH.pdf.

To locate particular regulations, visit http://www.ecfr.gov and select Title 24 for the HUD regulations. You may then select the particular part by number that you want to read. 296
Item 9 E.

Establishing and Operating a CoC Page 3 11-20-12

2. ESTABLISHING A CONTINUUM OF CARE
At its simplest, a Continuum of Care is
established by representatives of relevant
organizations within a geographic area to
carry out the responsibilities set forth in the
CoC Program interim rule.

HUD developed the concept of the CoC in
1995 through its annual competition for
homelessness assistance grants. The CoC
was envisioned as a local network that plans
and coordinates funding for services and
housing to assist homeless individuals and
families. The HEARTH Act amendments to the
McKinney-Vento Homeless Assistance Act
codified in law the role and functions of the
CoC; thus each community must establish a
CoC in compliance with the new CoC Program
interim rule. In some communities, very little
will have to change to be in compliance with
the requirements of the interim rule, but the
rule gives CoCs more ability to formalize and
change to better achieve the goals of the CoC
Program. In other communities, more
structure and formalization will need to be
implemented to be in compliance with the program requirements.

When establishing a CoC, communities must bear in mind that CoCs are designed to:




Examples of CoC Representatives
 Nonprofit homelessness assistance
providers
 Victim services providers
 Faith-based organizations
 Governments
 Businesses
 Advocates
 Public housing agencies
 School districts
 Social services providers
 Mental health agencies
 Hospitals
 Universities
 Affordable housing developers
 Law enforcement
 Organizations serving veterans
 Homeless or formerly homeless
individuals
Promote a community-wide commitment to the goal of ending homelessness Provide funding for efforts for rapidly re-housing homeless individuals and families Promote access to and effective use of mainstream programs Optimize self-sufficiency among individuals and families experiencing homelessness The composition of each CoC is expected to be tailored to its unique community circumstances, to the extent possible involving all of the players required to further local efforts to end homelessness. The purpose of requiring stakeholder representation from a wide range of organizations within the CoC’s geographic area is to ensure that all community stakeholders participate in developing and implementing a range of housing and services.

2.1 Community-wide Commitment
A CoC is expected to address homelessness through a coordinated community-based process of identifying needs and building a system of housing and services that addresses those needs.

While the CoC’s function is not new one, the CoC Program interim rule designates the CoC as the community planning body that addresses the needs of persons who are homeless or experiencing a housing crisis. Accordingly, the CoC must move beyond the evaluation and prioritization of specific projects to a system-wide evaluation of the community’s response to homelessness.
297
Item 9 E.

Establishing and Operating a CoC Page 4 11-20-12

2.2 Geographic Representation.

A CoC must determine the geographic area (one or more metropolitan cities, urban counties, and other counties) that it will cover with its housing and service plan for homeless persons and persons experiencing a housing crisis. The CoC membership should comprise representatives of relevant organizations within the given geographic area. The text box above lists examples of membership representatives.

A list of existing CoCs, the geographic areas encompassed by each, and the funding amounts that they may apply for is available on the Homelessness Resources Exchange.

3. COC RESPONSIBILITIES
The CoC Program interim rule formalizes the composition and responsibilities of the CoC and establishes minimum requirements for its operation and management. Formalizing the responsibilities of the CoC accomplishes several goals. First, it provides the framework for a comprehensive, well-coordinated, and clear planning process. Second, it allows CoCs to measure their effectiveness in reducing homelessness at both a system and project level rather than just at the level of individual projects funded by the CoC, and change strategies if they are not effective. Finally, it strengthens coordination between CoC-funded activities and other HUDfunded activities directed at ending homelessness, such as activities funded through the Emergency Solutions Grant (ESG) program.

3.1 Operating the CoC
The CoC Program interim rule establishes seven responsibilities that must be carried out by the CoC. Many CoCs already fulfill these responsibilities since previous CoC Homeless Assistance Grants competitions included them as scoring criteria. In addition, CoCs may choose to adopt other responsibilities to more effectively operate the CoC. The CoC is responsible for carrying out all activities specific in the interim rule, but may choose to assign the responsibilities to the CoC board, another organization, or another CoC work group. All responsibilities must be thoroughly documented in the CoC’s governance charter. These responsibilities include the following:

1. Regular meetings. Hold meetings of the full membership, with published agendas, at least semiannually. CoCs may conduct membership meetings more often for purposes of activity planning, ongoing communication, staff training, etc.

2. Invitation for new members. Issue a public invitation for new members from within the CoC’s geographic area at least annually.

3. Board selection. Adopt and follow a written process to select a CoC board to act on behalf of the CoC. The CoC must review, update, and approve the selection process at least once every five years. The CoC board must meet all requirements as specified in 24 CFR part 578.5(b) and as discussed in more detail in Section 4.1 of this user guide. Many of the operating responsibilities of the CoC may appropriately be assigned to the board.

4. Additional committees. Appoint additional committees, subcommittees, or work groups as needed.

5. Governance charter. In consultation with the collaborative applicant and the Homeless Management Information System (HMIS) lead, develop, follow, and update annually (1) a governance charter that includes all procedures and policies needed to comply with 24 CFR part 578.5(b) and with HMIS requirements as prescribed by HUD and (2) a code of conduct and recusal process for the board, its chair(s), and any person acting on behalf of the board. 298
Item 9 E.

Establishing and Operating a CoC Page 5 11-20-12

6. Monitoring. Monitor recipient and subrecipient performance, evaluate outcomes, and take action against poor performers.

7. Evaluation. Establish performance
targets appropriate for population and
program type in consultation with
recipients and subrecipients, then monitor
recipient and subrecipient performance,
evaluate outcomes, and take actions
against poor performers.

8. Centralized or Coordinated
Assessment. Establish and operate a
coordinated assessment system, in
consultation with the recipients of
Emergency Solutions Grants program funds.




Governance Charter
The governance charter should detail the
functions of the CoC board, the CoC’s
committee structure and roles, staff roles,
and the process for amending the charter.

Some CoCs may already have bylaws in
place that are similar to a governance
charter.

9. Written Standards. Establish and consistently follow written standards for providing CoC assistance, in consultation with the recipients of Emergency Solutions Grants program funds.

Coordinated Assessment
In consultation with recipients of ESG funds within the CoC’s geographic area, the CoC must establish and operate, or designate, a centralized or coordinated assessment system that provides an initial, comprehensive assessment of the housing and services needs of individuals and families within the CoC’s area. Further, the CoC must develop a policy that guides consistent operation of the centralized or coordinated assessment system, with respect to how the system will triage and address the particular safety needs of individuals and families who are experiencing homelessness. In addition, the policy must state how the system will address the needs of individuals and families that are fleeing or attempting to flee domestic violence, dating violence, sexual assault, or stalking.

Some communities created coordinated assessment systems as part of the implementation of the Homeless Prevention and Rapid Re-Housing Program (HPRP), while other communities’ systems pre-date HPRP. Whether a community is creating a new system or relying on an existing system, the coordinated assessment system must demonstrate compliance with the following minimum requirements:

Cover the geographic area served by the CoC
Be easily accessed by individuals and families seeking housing or services Be well advertised
Include a comprehensive and standardized assessment tool Written Standards
The CoC must establish and consistently follow written standards for providing assistance.

The coordinated assessment system must incorporate these standards when evaluating and referring potential program participants. At a minimum, the written standards must include the following:
 Policies and procedures for evaluating individuals’ and families’ eligibility for assistance under the CoC Program
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Policies and procedures for determining and prioritizing which eligible individuals and families will receive transitional housing assistance
Policies and procedures for determining and prioritizing which eligible individuals and families will receive rapid re-housing assistance
Standards for determining what percentage or amount of rent each program participant must pay while receiving rapid re-housing assistance
Policies and procedures for determining and prioritizing which eligible individuals and families will receive permanent supportive housing assistance If the CoC has been designated a High Performing Community (HPC), policies that address standards for high-performing communities, as described in the Emergency Solutions Grants program rule at 24 CFR part 576.400(e)(vi) through(e)(ix)

3.2 CoC Planning
The CoC is responsible for coordinating and implementing a housing and service system to meet the needs of the homeless population and subpopulations within its geographic area.

Many of the planning activities set forth in the CoC program have been part of the CoC Homeless Assistance Grants competition application for many years as scoring criteria; therefore, many CoCs already have completed a plan to guide their activities. The CoC Program interim rule formalizes these planning responsibilities and specifies new responsibilities related to coordination with ESG recipient(s). CoC planning activities must adhere to the requirements established in the CoC Program interim rule, in addition to the requirements and directions of HUD’s Notices of Funding Availability (NOFAs).

The CoC’s responsibilities related to planning are described below.

System Coordination
The CoC is responsible for coordinating and implementing a comprehensive system to address the needs of the homeless population and subpopulations and persons experiencing a housing crisis within its geographic area. While each community may develop its own approach to address identified needs, each community’s system should at a minimum encompass the following:
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Outreach, engagement, and assessment
Shelter, housing, and supportive services
Homelessness prevention strategies
Given that funding under the CoC program is not sufficient to support a comprehensive system for addressing homelessness, additional funding from dedicated homeless programs, including ESG, and mainstream resources is needed to carry out a CoC’s homelessness activities. Coordination of these funding streams and related services leads to a stronger community response to homelessness. The next page includes a discussion of the requirements for CoC coordination with ESG and mainstream resources.

Point-in-Time Count
At least biennially, or as required by NOFA, a CoC must plan for and conduct a point-in-time count of homeless persons within its geographic area. The count must:
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Identify the number of homeless persons who are living in a place not designed for or ordinarily used as regular sleeping accommodations for humans (unsheltered homeless persons)
Identify the number of homeless persons living in emergency shelters and transitional housing projects (sheltered homeless persons)
Identify other requirements established by HUD by Notice, including the annual FY CoC Program NOFA
Annual Gaps Analysis
A CoC must conduct an annual gaps analysis of the homeless needs and services available within its geographic area, which includes a housing inventory.

Consolidated Plan Information
A CoC must provide the information required to complete the Consolidated Plan(s) for its geographic area.

ESG Consultation
A CoC must consult with State and local government ESG recipients within its geographic area with respect to the plan for allocating ESG funds and reporting on and evaluating the performance of ESG recipients and subrecipients.

3.3 Designating and Operating an HMIS
A Homeless Management Information System (HMIS) is an invaluable tool for communities and HUD to develop better information on the nature of homelessness, the number of people experiencing homelessness, the existing patterns in housing programs and services, and the effectiveness of programs and services in addressing homelessness. An HMIS must be used by the CoC and all recipients of CoC and ESG program funds to meet HUD’s data collection, management, and reporting standards. Recipients and subrecipients are required to collect data on individual clients and the provision of housing and services to homeless individuals and families, and persons at risk of homelessness.

The CoC is accountable for the HMIS, even if another organization is designated to operate it.

The CoC is responsible for the following HMIS functions:
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HMIS. Designating a single HMIS for its geographic area.

HMIS lead. Designating a single eligible applicant to serve as the HMIS lead to manage the HMIS. Eligible applicants include nonprofits, State or local governments, or instrumentalities of State or local governments.

HMIS Compliance. Ensuring that the HMIS is administered in compliance with requirements prescribed by HUD.

Privacy, security, and data quality. Reviewing, revising, and approving an HMIS privacy plan, security plan, and data quality plan.

HMIS participation. Ensuring the consistent participation of recipients and subrecipients in the HMIS.

For more information, see the user guide on CoC Program Funding for HMIS. 301
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3.4 Preparing the Application for CoC Program Funds
A major function of the CoC is to prepare and oversee the development and submission of an annual application for CoC program funds. The process must involve the steps described below.

Funding Priorities
A CoC must establish priorities for funding projects in its geographic area. The selection process must be transparent and inclusive and based on the standards indicated in 24 CFR part 578.19(b).

Collaborative Application Process
A CoC must design, operate, and follow a collaborative process for developing applications and approving the submission of applications in response to a NOFA published by HUD in concert with the funding priorities and plan adopted by the CoC. The CoC should also ensure that all project applications are submitted by eligible applicants.

HUD may only award CoC funds to nonprofit organizations, States, units of local governments, and/or instrumentalities of State or local government, collectively known as recipients. In turn, recipients may subgrant with other nonprofit organizations, States, units of local government, and/or instrumentalities of State or local government—known as subrecipients—to assist in the day-to-day operations of the CoC program. A recipient is an applicant that signs a grant agreement with HUD. Eligible applicants include public housing agencies, as such term is defined in 24 CFR 5.100, without limitation or exclusion.

The Collaborative Applicant
A CoC must designate an eligible applicant to serve as the collaborative applicant. If the CoC is an eligible applicant, it may designate itself to be the collaborative applicant. If the CoC chooses to apply for CoC planning funds, the collaborative applicant is also the only eligible applicable able to apply for these funds on behalf of the CoC.

The collaborative applicant is the entity that submits the annual CoC Consolidated Application for funding on behalf of the CoC. In CoCs where the CoC does not also designate the collaborative applicant to apply to be a Unified Funding Agency, as is discussed below, the annual CoC application may include requests for project funding from more than one eligible applicant. If more than one project is applying for funding, then the entity designated by the CoC as the collaborative applicant is charged with collecting and combining the application information from all applicants for all projects within the CoC’s geographic area.

The CoC retains all of its responsibilities, even if it designates one or more eligible applicants other than itself to apply for funds on behalf of the Continuum. This includes approving the application for funds.

Unified Funding Agency
The CoC may designate the collaborative applicant to seek Unified Funding Agency (UFA) designation. A collaborative applicant may request UFA designation through the annual CoC Program Registration process. HUD will inform the collaborative applicant and the UFA if it meets the required criteria.
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If approved by HUD, the UFA must carry out all of the responsibilities of the collaborative applicant as well as additional requirements that are set forth in the CoC Program interim rule. In order to be considered for UFA designation, collaborative applicants are required to:
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Represent a CoC that meets the requirements in 24 CFR part 578.7 of the CoC Program interim rule
Have financial management systems that meet the standards in 24 CFR part 84.21 (for nonprofit organizations) and 24 CFR part 85.20 (for States) Demonstrate the ability to monitor subrecipients
Demonstrate and/or address any additional criteria that HUD may require by NOFA If, after reviewing information submitted by the collaborative applicant addressing the above requirements, HUD designates the collaborative applicant as a UFA, the collaborative applicant has the following additional responsibilities:
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Apply for funding for all projects within the geographic area and enter into a grant agreement with HUD for all of the projects.

Enter into legally binding grant agreements with subrecipients, and receive and distribute funds to subrecipients for all projects within the geographic area Require subrecipients to establish fiscal control and accounting procedures necessary to assure proper disbursal of and accounting for federal funds in accordance with the requirements of 24 CFR parts 84 and 85 and corresponding OMB circulars Obtain approval of any proposed grant agreement amendments by the CoC before submitting a request for an amendment to HUD
The CoC retains all of its responsibilities, even if it designates a UFA other than itself to apply for funds on behalf of the Continuum. This includes approving the application for funds.

4. OVERVIEW OF COC GOVERNANCE AND STRUCTURE
At the core of the CoC responsibilities described earlier is the mission of leading the community in finding solutions for preventing and ending homelessness. The CoC needs to create a structure to fulfill this and the other duties referenced in Section 3 of this user guide. While each community may bring different players to the table to participate in and lead the CoC, HUD expects participation of representatives from all relevant organizations (as discussed in Section 2 of this guide), requires each CoC to establish a board, and provides flexibility to CoCs to establish additional committees or workgroups to help carry out its planning and operations responsibilities. This section of the guide details the requirements for CoC governance and structure as described in 24 CFR part 578.5.

4.1 CoC Board Requirements
Given that a CoC consists of many community stakeholders, each CoC must establish a board that is selected in compliance with the process approved by the CoC. The process is established as a requirement at 24 CFR part 578.7(a)(3). The Board must comply with the conflict of interest requirements at 24 CFR part 578.95(b). 303
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The CoC Program interim rule establishes two characteristics of board composition. According to the rule, the board must:
(1) Include at least one homeless or formerly homeless individual (2) Represent the relevant organizations and projects serving homeless subpopulations, such as persons with substance use disorders; persons with HIV/AIDS; veterans; the chronically homeless; families with children; unaccompanied youth; the seriously mentally ill; and victims of domestic violence, dating violence, sexual assault, and stalking.

One board member may represent the interests of more than one homeless subpopulation, and the board must represent all subpopulations within the CoC to the extent that someone is available and willing to represent that subpopulation on the board.

In order for the CoC board to carry out activities, the CoC must assign responsibilities to the board, which may include some of the requirements discussed in Section 3 of this User Guide.

All roles and responsibilities must be reflected in the governance charter, along with a code of conduct and recusal process for the board, its chair(s), and any person acting on the board’s behalf. The governance charter must be reviewed and updated, annually.

The CoC must comply with the requirements related to establishing the board and its composition by August 30, 2014, two years from the effective date of the CoC Program interim rule. It is possible that, in some communities, a board already meets the requirements described above. In that case, the CoC needs to ensure that it has reviewed and approved the written process for selecting the board in the last five years and followed that process when selecting the current board.

4.2 CoC Subcommittees and Work Groups
The CoC may appoint additional committees, subcommittees, and work groups as needed to carry out its work. Each CoC is responsible for determining the most effective committee structure for its community. The following are examples of some areas that may fall under the purview of committees and work groups:
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Application Review
Point-in-Time Count
Centralized Intake
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HMIS
Performance Measurement
Discharge Planning
All committees, subcommittees, and work groups responsibilities’ must be documented in the governance charter that is reviewed and approved annually by the CoC.

5. FUNDING FOR ELIGIBLE COC PLANNING COSTS
One of the major changes under the CoC Program interim rule is the availability of funding to support CoC planning costs. This section considers the amount of funding available and eligibility to apply for these funds.

5.1 Amount Available
Up to 3 percent of a CoC’s Final Pro Rata Need amount, or a maximum amount established by NOFA, will be available for CoC planning activities. Each year HUD will announce the exact percentage and maximum amount available for planning activities. 304
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5.2 Eligible Applicants for CoC Planning Funds
Only the designated collaborative applicant may apply for and receive CoC planning funds, which may be used to complete any of the activities described in Section 3 of this user guide and outlined at 24 CFR part 578.39.
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Santa Cruz County Housing for Health Partnership Governance Charter | June 18, 2021 | Page 1

SANTA CRUZ COUNTY HOUSING FOR HEALTH PARTNERSHIP

GOVERNANCE CHARTER
Adopted June 18, 2021
Table of Contents
ARTICLE 1: PURPOSE AND AUTHORITY..........................................................................................................2 ARTICLE 2: STRUCTURE .................................................................................................................................2 ARTICLE 3: POLICY BOARD.............................................................................................................................2

1. Responsibilities of the Board.............................................................................................................2

2. Board Membership............................................................................................................................4

3. Appointments to the Board...............................................................................................................4

4. Board Terms ......................................................................................................................................5

5. Board Member Responsibilities ........................................................................................................5

6. Officers ..............................................................................................................................................5

7. Meetings of the Board.......................................................................................................................6 ARTICLE 4: OPERATIONAL COMMITTEES AND WORKING GROUPS..............................................................6

1. Authority............................................................................................................................................6

2. System Operations, Data and Evaluation Committee.......................................................................7

3. Cross Jurisdictional Finance Working Group.....................................................................................9

4. Lived Experience Working Group ....................................................................................................10

5. Youth Advisory Working Group.......................................................................................................10

6. Housing and Capital Working Group...............................................................................................10

7. Ad Hoc Committees or Working Groups.........................................................................................11 ARTICLE 5: GENERAL MEMBERSHIP............................................................................................................11 ARTICLE 6: PARTNERSHIP STAFFING...........................................................................................................12 ARTICLE 7: CHARTER AMENDMENTS..........................................................................................................13 306
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Santa Cruz County Housing for Health Partnership Governance Charter | June 18, 2021 | Page 2 ARTICLE 1: PURPOSE AND AUTHORITY
The Santa Cruz County Housing for Health Partnership (the Partnership) aligns and develops resources, stakeholders, and collective wisdom across the greater Santa Cruz community to promote public health and work toward preventing and ending homelessness within the county.

The Partnership serves as the community’s designated Housing and Urban Development (HUD) Continuum of Care (CoC) governance entity in compliance with the requirements of federal regulations governing receipt of CoC funding, 24 Code of Federal Regulations (CFR) Part 578. This charter was developed in partnership with the Homeless Management Information System (HMIS) lead agency, the CoC collaborative applicant, and the HUD Coordinated Entry implementation lead. Elements of this charter that reflect federal requirements are identified with a blue parenthetical note (CoC Requirement).

ARTICLE 2: STRUCTURE
The Partnership consists of:

1. A Policy Board responsible for high level planning and decision-making. The Board sets overall policy direction and provides system oversight. The Board delegates implementation, operational, and planning responsibilities to specific Operational Committees and Working Groups. See Article 3.

2. Operational Committees and Working Groups providing recommendations, input and guidance on key operational issues, resource needs, and areas for policy change and improvement. Operational Committees have decision-making authority as delegated by the Board. Operational Committees have formally established memberships with participation expectations. Working Groups form as needed and evolve over time based on evolving community needs, priorities, and opportunities.

Working Groups bring together particular individuals with roles and responsibilities relevant to a specific focus area. Working groups coordinate local efforts and provide input and advice to the Policy Board or Operational Committees. See Article 4.

3. The General Membership consisting of any individual in the community interested in joining the collective effort to prevent and end homelessness in the community. Membership expectations are set by the Policy Board. The Policy Board may request formal input or votes from the General Membership on specific topics. The General Membership nominates and selects three people to sit on the Policy Board. See Article 5.

4. Staffing for the Partnership is provided by the Santa Cruz County Human Services Department, Housing for Health Division (H4H). See Article 6.

ARTICLE 3: POLICY BOARD

1. Responsibilities of the Board
The Policy Board has the following responsibilities:
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Santa Cruz County Housing for Health Partnership Governance Charter | June 18, 2021 | Page 3 a. Create and/or adopt guiding principles, system objectives, equity goals and community-level plans for addressing homelessness, starting with the Housing for a Healthy Santa Cruz Strategic Framework and including revisions and updates.
b. Review and approve six-month work plans to implement the Housing for a Healthy Santa Cruz Framework and subsequent revisions to the Framework.
c. Review and approve funding recommendations developed by Operational Committees or other entities.
d. Approve applications for HUD Continuum of Care (CoC) and Emergency Solutions Grant (ESG) funding and any funds from the State of California or other sources that require CoC oversight, management, approval or coordination. (CoC Requirement). i. Designate a Collaborative Applicant for CoC funding. The current Collaborative Applicant is H4H.(CoC Requirement).
ii. Designate a Committee composed of non-conflicted members to review, rate, and rank CoC applications and present a final Project Priority List to the Policy Board for approval (CoC Requirement).
e. Review and approve operational standards, policies and high-level procedures for components of the housing crisis response system including, but not limited to, Coordinated Entry. (CoC Requirement).
i. Designate a Coordinated Entry Management Entity and an Evaluation Entity. (CoC Requirement).
f. Conduct high level evaluation of the system and make high level recommendations for continuous improvement. (CoC Requirement).
i. Conduct high level tracking of progress towards goals and outcomes in Housing for a Healthy Santa Cruz and subsequent Framework revisions and related six-month work plans, as well as progress towards other emerging priorities and activities. ii. Designate an entity to manage the HUD mandated Homeless Management Information System (HMIS) and provide oversight for HMIS. The current HMIS management entity is H4H (CoC Requirement).
iii. Approve the methodology and publication of the final results for the bi-annual Point in Time (PIT) Count. (CoC Requirement).
g. Provide direction to staff related to high-level communications and reports to stakeholders on results of investments and operations of the system and progress on Framework goals. h. Review applications for membership to Operational Committees that have decision-making authority and make appointments to those Committees.
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Santa Cruz County Housing for Health Partnership Governance Charter | June 18, 2021 | Page 4 i. Ensure appropriate consultation and coordination with CoC, HUD Emergency Solutions Grant (ESG), and other funding recipients when such efforts are required by HUD or other funding agencies. j. Provide guidance to staff on how to support local jurisdictions in their completion of HUD Consolidated Plans, Annual Plans, and Consolidated Annual Performance and Evaluation Reports (CAPER).

2. Board Membership
The Policy Board consists of 15 community leaders and stakeholders who represent different entities and constituencies with significant experience and/or resources to address the issue of homelessness.

Slots on the Board fall into 3 categories: jurisdictional representatives, Operational Committee or Working Group representatives, and partner system representatives. At least one member of the Board must have had lived experience of homelessness at some point in their lives. The Policy Board nominating entities will strive to ensure two or more Policy Board members will have lived experience.

Stakeholder Group or Entity Number of
Seats Eligible Representatives
A. Jurisdictional Representatives 9
May be filled by elected officials,
government staff, or other citizens.

City of Santa Cruz 2
City of Watsonville 2
City of Scotts Valley/City of Capitola
(alternating appointments) 1
County of Santa Cruz 4
B. Operational Committee or Working
Group Representatives 3 At least 1 must be a person with lived experience.

C. Partner System Representatives 3 May come from non-profit, for-profit, Health Sector 1 public agencies or philanthropic entities.

Workforce/Business/Foundation Sector 1
Education Sector 1
The CoC regulations require that the CoC Board must “be representative of the relevant organizations and of projects serving homeless subpopulations; and include at least one homeless or formerly homeless individual.” Board members will complete a brief checklist noting which organizations and groups they represent. Members may represent more than one stakeholder group.

3. Appointments to the Board
HUD CoC regulations require that the process for appointing Board members will be reviewed, updated, and approved at least once every five years. Members will be appointed by an existing or to-be-created entity or body that represents that sector, as follows:
a. Jurisdictional Representatives will be appointed by the jurisdiction’s respective elected body (City Council or County Board of Supervisors). Jurisdictional representatives may be elected officials, staff of the jurisdiction, or community representatives determined by the appointing body to represent 309
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Santa Cruz County Housing for Health Partnership Governance Charter | June 18, 2021 | Page 5 the interests and concerns of the jurisdiction. For members appointed by the County, no more than two may be elected officials. City jurisdictions may appointment up to two elected officials. b. Operational Committee or Working Group Representatives will be appointed by the General Membership and must include at least one person with lived experience of homelessness. c. Partner System Representatives will be appointed by entities representing the work of the designated sector and will be recruiting and recommended by H4H staff. The existing Policy Board will confirm sector representatives to be added to the Board. Criteria for selection of representatives will include:
i. Organization brings funding or other policy/systems change levers to the table ii. Organization or individual within organization is motivated and committed to taking action to address homelessness
iii. Nominees represent the interests and concerns of the appointing organization and of the field of interest.

4. Board Terms
Board Members will serve two-year terms. Each appointing body may determine if they will impose term limits on their representatives. If a member leaves before their two-year term is completed, their appointing body will appoint a replacement to serve out the remainder of their term.

5. Board Member Responsibilities
Each member will sign a written set of commitments for serving as a Board member, including:
a. A code of conduct (CoC Requirement), including agreement to abide by HUD (Title 24 Code of Federal Regulations {CFR} part 578.5) and Policy-Board adopted conflict of interest regulations and recusal processes for the Board, its chair(s), and any person acting on behalf of the Board. b. Standards for Board service including expectations for attendance, preparation, and other responsibilities.
c. All regular Members of the Board shall attend all meetings. A pre-designated alternate may be established. Alternates shall receive and remain informed about all meeting materials but shall only attend when the primary member has an unavoidable reason for not attending.

Board members who fail to uphold their responsibilities may be removed by an action of the Board.

6. Officers
The Board will elect two co-chairs. Co-chairs may represent any of the three categories of representation but may not both be representatives from the same category type.

The co-chairs are responsible for working with staff to develop meeting agendas and to chair Board meetings. Staff will assist with meeting facilitation and the presentation of agenda items.

The co-chair terms will be two years. A co-chair may be appointed for a subsequent term at the discretion of the Board. The co-chair terms will be staggered so that they do not both change in the 310
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Santa Cruz County Housing for Health Partnership Governance Charter | June 18, 2021 | Page 6 same year. To provide for staggering, one of the first two co-chair terms under this Charter will be a special one-year term; thereafter, the term will revert to two years.

7. Meetings of the Board
a. Brown Act
The Policy Board is subject to the Brown Act and all meetings will be conducted in alignment with those requirements.
b. Frequency
The Board will meet at least every other month at a regularly scheduled time. Meetings may be held with more frequency in the first year of Board operations. c. Decision-Making
Board decisions and actions are made through consensus. However, in cases where consensus cannot be reached, the decision will be subject to a simple majority vote. d. Quorums
The Board must have a quorum to take any action, either by consensus or by vote. A quorum is defined as a majority of current members. When all 15 Board seats are filled, 8 members shall constitute a quorum.
e. Meeting Notification
A meeting notice and agenda shall be publicly posted at least 72 hours prior to each Board meeting. f. Public Comment and Standing Agenda Items
Each Board meeting shall include opportunities for public comment, in accordance with the Brown Act.

Operational Committee and Working Group reports shall be standing agenda items.

ARTICLE 4: OPERATIONAL COMMITTEES AND WORKING GROUPS

1. Authority
The Partnership Policy Board may create Operational Committees with decision-making authority as delegated by the Board or Working Groups advisory to the Policy Board and Operational Committees. a. Decision-Making Operational Committees. For Committees with decision-making authority, the Board shall appoint a Chair that is a member of the Policy Board. Seats on decision-making Committees must be filled by a process where members apply for Board approval and appointment. The Board will task decision-making Committees with a specific work plan detailing objectives, activities, and specific decisions to be made. Decision-making Committee members must sign the same Code of Conduct and responsibilities documents as Board Members. Committees make decisions following the same guidelines as the Policy Board and Committee meetings also follow Brown Act guidelines for public participation and comment opportunities.
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Santa Cruz County Housing for Health Partnership Governance Charter | June 18, 2021 | Page 7 b. Working Groups. Working Groups are not required to have Board members as chairs and membership of these groups may be self-selecting or managed by H4H as staff.

Committees and Working Groups may be Standing (ongoing) or Ad Hoc (short term). This Charter describes an initial set of Standing Committees and Working Groups which may be modified by Board Action.

Any Committee may create working groups designated to work on specific tasks. Working groups do not require any approval by the Board.

All committee members may receive support and training to enable them to participate in the work of the Committee. Members who are not compensated through their employment may be compensated for their work by H4H through stipends, depending on the availability of funding.

2. System Operations, Data and Evaluation (Smart Path to Housing and Health) Committee a. Responsibilities
The System Operations, Data and Evaluation Committee is a decision-making committee with authority delegated by the Board through an annual work plan. Given its expansive scope, this Committee may form work groups to carry out its work. At a minimum, this committee is required to consult with and include Emergency Solutions Grant (ESG) and Continuum of Care (CoC) grant recipients related to the responsibilities outlined below.

System Policies and Standards
i. Develop operational standards, policies and high-level procedures for components of the system, including how people access and are prioritized for each component (CoC Requirement):
a. Coordinated Entry (Smart Path)
b. Housing Problem Solving and Prevention
c. Outreach
d. Temporary shelter and transitional housing
e. Rapid rehousing and other time-limited subsidy program models (standards to include policies for determining what percentage or amount of rent each program participant must pay)
f. Permanent supportive housing and other housing dedicated for people experiencing homelessness
g. Supportive services dedicated to people experiencing homelessness Standards must include required system policies such as those required under the Violence Against Women Act (VAWA). (CoC Requirement)
ii. Oversight and evaluation of the HUD mandated Coordinated Entry System (CES). (CoC Requirement)
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Santa Cruz County Housing for Health Partnership Governance Charter | June 18, 2021 | Page 8 iii. Establish a mechanism for client and community feedback and complaints to be handled at the system level and used to make system level improvements, when appropriate.

Data and Performance Measurement
i. Building from HUD’s required System Performance measures, establish performance measures and targets for the system and its component parts, as listed above. Targets to be brought to Policy Board for approval.
ii. Evaluate the housing crisis response system and develop continuous strategies for improvement; implement Results-Based Accountability (RBA) across the system. iii. Develop and manage systems for collecting and managing data needed to track performance and evaluate the system, including:
a. Review, revise, and approve a privacy plan, security plan, and data quality plan for the HMIS. (CoC Requirement)
b. Conduct the HUD required Point in Time Count (PIT), not less than every other year and with a goal of moving to annual. (CoC Requirement)
c. Conduct a regularly updated inventory of the system and map of the resources available to respond to homelessness, including maintaining and updating the HUD required Housing Inventory Count (HIC) (CoC Requirement)
d. Quantify system gaps and needs on a regular basis (CoC Requirement) e. Produce regular reports to funders (including HUD), local leadership, community members and other stakeholders as needed to understand and assess the performance of the system. (CoC Requirement)
f. Coordinate with local jurisdictions to identify the information they need and facilitate needed data collection and sharing between organizations. g. Maximize data transparency between County, cities, service providers and the general public.
h. Ensure compliance with HUD HMIS requirements.
i. Ensure consistent and active participation of agencies in HMIS including required and desired participating agencies.
b. Membership
The System Operations, Data and Evaluation Committee shall have 15 representatives. Membership must represent a cross-section of expertise in program types and subpopulations as well as geographical diversity. Membership must represent the relevant organizations and projects serving homeless populations, such as persons with substance use disorders, persons with HIV/AIDS, veterans, the chronically homeless, families with children, unaccompanied youth, the seriously mentally ill, and victims of domestic violence, dating violence, sexual assault and stalking. include representation in the areas identified below according to HUD guidelines.
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Santa Cruz County Housing for Health Partnership Governance Charter | June 18, 2021 | Page 9 System Operations, Data and Evaluation Committee members shall be appointed by the Policy Board and must include a chairperson who is a Board member and responsible for reporting to the Board on behalf of the Committee.
c. Meetings
The System Operations, Data and Evaluation Committee shall meet monthly.

3. Cross Jurisdictional Finance Working Group
a. Responsibilities
The Cross Jurisdictional Finance Working Group is an advisory group that holds responsibility for:
i. Working toward aligning funding to support a Board-approved coordinated framework to address homelessness.
a. For funding sources for which the Partnership Board has approval authority (e.g., CoC funding, State HHAP funding), the Funding Work Group will assist the Board with creating local non-conflicted application review committees or panels as needed. (CoC Requirement)
b. For funding sources for which the Partnership Board does not have approval authority, the Funding Committee will coordinate with, advise or provide guidance to share with the approving bodies for those sources, in alignment with the Partnership’s overall strategy (e.g., coordinating with the County Health Services Agency on use of Health Care for the Homeless funding, or providing recommendations to the City of Santa Cruz on use of Community Development Block Grant {CDBG} funds for homeless services). ii. Coordinate and advocate with partner systems of care (e.g., behavioral health, workforce development, others) to reduce barriers and facilitate access and quality support for people experiencing and at-risk of homelessness, align strategies and resources, and share data and information.
iii. Seek resources to support increased household incomes and employment among people at-risk of or currently experiencing homelessness.
b. Cross Jurisdictional Finance Working Group Membership Membership in this Working Group will change over time to include key representatives from public funding agencies and private philanthropic entities. The Policy Board will provide guidance to Housing for Health staff on key parties to include in Working Group conversations. The Working Group should strive for inclusion of key city, county, and private sector funding representation on an ongoing basis with additional participants as appropriate for topics. 314
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Santa Cruz County Housing for Health Partnership Governance Charter | June 18, 2021 | Page 10 c. Meetings
The Funding Committee shall meet at least quarterly.

4. Lived Experience Working Group
a. Responsibilities
The Lived Experience Working Group provides recommendations and advice to the Policy Board and Operational Committees on system operations, data, evaluation, and any other topics relevant to improvement of the community’s response to homelessness. b. Membership
The Lived Experience Working Group will consist of a minimum of 8 members but no more than 13 who are either currently experiencing homelessness or who have experienced homelessness. H4H will staff this Group and identify members though outreach to the community. c. Meetings
Meetings will be coordinated by H4H staff and will be held at accessible and equitable locations.

Meeting frequency will be at the discretion of the Working Group but will occur at least six times per year.

5. Youth Advisory Working Group
a. Responsibilities
The Youth Working Group provides recommendations and advice to the Policy Board and Operational Committees on system operations, data, evaluation for all elements of the system that impact transition age youth, and in particular for those components funded by the HUD Youth Homelessness Demonstration Program (YHDP). (CoC Requirement)
b. Membership
The Youth Advisory Board currently consists of 8 members with a plan to expand up to 13. The YAB is staffed by H4H and Encompass Community Services, who identify members though outreach to the community.
c. Meetings
Meetings are coordinated by H4H and Encompass Staff. Meeting frequency will be at the discretion of the Working Group but will occur at least six times per year.

6. Housing and Capital Working Group
a. Responsibilities
The Housing and Capital Working Group provides recommendations and advice to the Policy Board and Operational Committees on the development of housing and other capital infrastructure (e.g., emergency shelters) needed to meet the needs of people experiencing homelessness. i. Seek resources to expand affordable housing for extremely low-income households and advocate for the inclusion of people experiencing homelessness in new housing developments 315
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Santa Cruz County Housing for Health Partnership Governance Charter | June 18, 2021 | Page 11 ii. Conduct legislative and policy advocacy to expand the supply of affordable housing iii. Manage a cross jurisdictional housing pipeline working group to plan for and track progress on the planning, siting, development, and service provision for housing designed or dedicated to serving people experiencing or previously homeless.
iv. Advise on siting and development of shelters and other temporary programs v. Advise on tenant protection policies and practices
vi. Advise on use of federal Housing Choice Vouchers and other Housing Authority programs to address needs of people experiencing homelessness
vii. Advise on land use and other policies to increase the supply of affordable housing, including updating of Housing Elements
b. Membership
The Housing and Capital Working Group will initially include County staff from multiple departments and expand membership participation over time to work on specific project and areas of focus. The goal is to expand membership over time to enhance the scope and impact of this working group. c. Meetings
This Working Group shall meet at least quarterly.

7. Ad Hoc Committees or Working Groups
The Board shall empanel Ad Hoc Committees or Working Groups as needed to address emerging or new issues. Ad Hoc Committees shall have decision-making authority and Working Groups will serve an advisory function.

ARTICLE 5: GENERAL MEMBERSHIP
The full membership of the Partnership is open to any interested individual who wishes to join with a personal commitment to contribute to the goal of preventing and ending homelessness within Santa Cruz County. Members join by submitting their name and contact information to the H4H staff and completing a membership participation agreement. The Partnership must issue a public invitation for new members at least once per year.

HUD regulations require that the CoC general membership is representative of a broad range of organizations, including: “nonprofit homeless assistance providers, victim service providers, faith-based organizations, governments, businesses, advocates, public housing agencies, school districts, social service providers, mental health agencies, hospitals, universities, affordable housing developers, law enforcement, and organizations that serve veterans and homeless and formerly homeless individuals.” Members will complete a brief questionnaire asking them to indicate which stakeholder groups they represent. A single member may represent multiple groups. 316
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Santa Cruz County Housing for Health Partnership Governance Charter | June 18, 2021 | Page 12 Members are encouraged to participate in committees, working groups, and to attend general membership meetings. Members who miss two general membership meetings may be removed from the membership.

Responsibilities of the General Membership include, but are not limited to:
• Identifying volunteers to support the annual Point in Time Count and other data gathering efforts
• Conducting an annual feedback survey on efforts of the Housing for Health Partnership • Supporting community education and outreach efforts
• Voting or providing feedback on items as requested by the Policy Board The full membership holds bi-annual meetings, with published agendas. (CoC Requirement) The full membership selects the three Operational Committee members to the seats on the Policy Board. Members submit applications to H4H which are then presented to the Membership at one of its bi-annual meetings. In the event there is more than 1 application for a given seat, the Membership shall conduct an election for the open seat.

ARTICLE 6: PARTNERSHIP STAFFING
The County of Santa Cruz Human Services Department (HSD) Housing for Health (H4H) Division will staff the Partnership. Staffing responsibilities include, but are not limited to:
• Implementation of the overall vision and direction set forth in the Strategic Framework, with oversight from the Policy Board, through:
o Developing and presenting six-month work plans for approval by the Policy Board o Managing funding processes (developing recommendations, applying for funds, managing grants, issuing RFPs, managing contracts)
o Setting performance measures and tracking progress
o Gathering and analyzing data
o Conducting ongoing housing crisis system and program evaluation and planning o Developing policies and standards for programs and components that are part of the response system
• Identifying and inviting participation from Partner System Representatives • Staffing the meetings of the Policy Board, Operational Committees, and General Membership meetings, including developing agendas, drafting and presenting staff reports and other materials, taking and publishing meeting notes, and meeting logistics (scheduling, room reservations, meeting announcements, etc.)
• Providing training and technical assistance to any Operational Committee members who may need support to participate, including members of the Youth Advisory Board and Lived Experience Board.
• Providing compensation and other support to members per guidance from the Policy Board • Coordinating and aligning the work of County and city staff working on homelessness • Supporting training and capacity building throughout the system 317
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Santa Cruz County Housing for Health Partnership Governance Charter | June 18, 2021 | Page 13 • Maintaining an information clearinghouse on issues related to homelessness in Santa Cruz County.
• Reporting and communication with the public
• Responding to input and concerns from the public, including people with lived experience of homelessness
ARTICLE 7: CHARTER AMENDMENTS
On an annual basis, the Policy Board in conjunction with the HMIS lead, CoC collaborative applicant, and other stakeholders, shall review and update this Charter as needed. Amendment of the charter requires a majority vote if consensus cannot be reached.
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Capitola City CouncilJanuary 13, 2022

Capitola City Council
January 13, 2022