Agenda packet — Capitola City Council, June 22, 2023

REVISED 6/22/2023 3:00 PM
City of Capitola
City Council Meeting Agenda
Thursday, June 22, 2023 – 4:00 PM
City Council Chambers
420 Capitola Avenue, Capitola, CA 95010
Mayor: Margaux Keiser
Vice Mayor: Kristen Brown
Council Members: Yvette Brooks, Joe Clarke, Alexander Pedersen Regular Meeting of the Capitola City Council – 4 PM
All correspondence 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 Yvette Brooks, Joe Clarke, Alexander Pedersen, Kristen Brown, and Mayor Margaux Keiser.

2. Additions and Deletions to the Agenda

3. Additional Materials
Additional information submitted to the City after distribution of the agenda packet.

A. Correspondence Received - Item 7A
B. Correspondence Received - Item 7B

4. 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.

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

6. 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.
1 City Council Meeting Agenda – June 22, 2023
City of Capitola Page 2
A. Approval of City Council Minutes
Recommended Action: Approve 6/8/2023 City Council Meeting Minutes B. Approval of City Check Registers Dated May 26, 2023, and June 9, 2023 Recommended Action: Approve check registers.

C. Modification to Parking Meter Rates
Recommended Action: 1) Adopt, by title only, waiving further reading of the text, an ordinance of the City of Capitola amending Municipal Code Sections 10.36.055A and 10.38.010; and 2) Adopt a resolution authorizing submittal to the California Coastal Commission for the certification of an amendment to the Local Coastal Program for Section 10.36.055A.

D. Storm Damage Repair Contracts – Small Projects
Recommended Action: Authorize staff to enter into all necessary contracts to repair stormdamaged infrastructure in an amount not to exceed a total cost of $790,000, with a net cost to the City of less than $50,000.

E. 2023-24 Road Maintenance and Rehabilitation Account Expenditures Recommended Action: Approve a resolution adopting a list of road maintenance and rehabilitation projects for Fiscal Year 2023-24, funded by Senate Bill 1: the Road Repair and Accountability Act of 2017.

7. General Government / Public Hearings
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 Bar and Grill Entertainment Permit Appeal
Recommended Action: Adopt a resolution denying an appeal of the City Manager’s decision to deny an application for a 2023 Regular Entertainment Permit for Capitola Bar and Grill.

B. Grand Avenue Pathway
Recommended Action: Direct staff to relocate and repair existing fencing to maintain a minimum walkway width of eight feet on the Grand Avenue Pathway.

C. Memorials Installed on Capitola Wharf
Recommended Action: Determine the plan for memorial plaques currently installed on Capitola Wharf.

D. 1098 38th Avenue Project Introduction and Funding Request Recommended Action: Receive presentation and direct staff to prepare loan agreement to assist with for predevelopment activities for a 100% affordable multifamily rental housing development located at 1098 38th Avenue.

E. Levy of Capitola Village and Wharf Business Improvement Area Assessments for Fiscal Year 2023-24
Recommended Action: Conduct the noticed public hearing and adopt a resolution levying the Fiscal Year 2023-24 Capitola Village and Wharf Business Improvement Area Assessments and accepting the CVWBIA Annual Plan and budget.

F. Fiscal Year 2023-2024 Budget and Capital Improvement Program Recommended Action: Adopt a resolution adopting the City of Capitola’s Fiscal Year 2023-24 Budget and Capital Improvement Program.

G. Fiscal Year 2023-24 Fee Schedule
2 City Council Meeting Agenda – June 22, 2023
City of Capitola Page 3
Recommended Action: Conduct the duly noticed public hearing on the proposed Fee Schedule for FY 2023-24 and adopt a resolution amending the current fee schedule.

8. Adjournment
_____________________________________________________
Notice of In-Person & Remote Access
Meetings are open to the public for in-person attendance at the Capitola City Council Chambers located at 420 Capitola Avenue, Capitola, California, 95010 Other ways to Watch:

Spectrum Cable Television channel 8
City of Capitola, California YouTube Channel
To Join Zoom Application or Call in to Zoom:

Meeting link:
https://us02web.zoom.us/j/83328173113?pwd=aVRwcWN3RU03Zzc2dkNpQzRWVXAydz09 Or dial one of these phone numbers: 1 (669) 900 6833, 1 (408) 638 0968, 1 (346) 248 7799 Meeting ID: 833 2817 3113
Meeting Passcode: 678550
To make a remote public comment:

Via Zoom Application: Use participant option to “raise hand”. The moderator will unmute you Via Zoom phone call: Dial *9 on your phone to “raise your hand”. The moderator will unmute you Notice regarding City Council: The City Council meets on the 2nd and 4th Thursday of each month at 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. 3 1
Moss, Julia
From: Michelle Strong <[email protected]>
Sent: Friday, June 16, 2023 3:51 PM
To: Moss, Julia; City Council; Keiser, Marguax; ; Brooks, Yvette; Clarke, Joe; Pedersen, Alexander
Cc: James Anthony
Subject: [PDF] Upcoming Meeting June 22nd
Attachments: 23-03-24 Declaration of Michelle Strong ISO Provisional Injunctive Relief.pdf; 23-03-24 Memo ISO Claimants' Request for Issuance of Provisional Injunctive Relief.pdf Dear Madam Clerk:

Please forward this email and attachments to Mayor and City Council Members as soon as possible as a supplement to our previously submitted appeal documents.

Dear Mayor and City Council Members:

We were recently informed that the June 22nd meeting will be held at 4:00pm, instead of the 6:00pm start time that has been recurring from the beginning of the year and resumes to be the start time for the remainder of 2023. This change in time will greatly affect those that want to attend the meeting in person.

Attached please find supplemental legal support for our appeal written by our lawyers. Please include this email and the attached as part of our appeal record. As we said in our original appeal, if you decide to uphold the appeal and grant Capitola Bar & Grill (CPG) an Entertainment Permit for 2023, there are at least two possible legal bases for doing so:
1) The ordinance does not require a landlord consent signature, therefore the landlord consent request on the form is optional, and the lack of it is not grounds for denial of the permit, and as City Council we hereby uphold the appeal, reverse the denial and issue an entertainment permit for 2023; and 2) Even if landlord consent is required, as City Council we find as a matter of fact and of law that the Landlord, La Serena Properties, is bound by the lease contract it signed approving the CPG use of the property, which always included and still includes, the right to live music, therefore the Landlord's consent to the Entertainment Permit is deemed given and recognized even without the signature on the permit form, and as City Council we hereby uphold the appeal, reverse the denial and issue an Entertainment Permit for 2023.

After the public hearing closes, any one of you can make a motion to "uphold the appeal, reverse the denial and issue an Entertainment Permit for 2023" for either one, or both, of the reasons given above (you can detail the reason in your motion by reading the above). Procedurally this is the same as adopting the staff report suggested resolution--this is just an alternative. You can vote at the hearing even if staff wants to draft a different resolution for your decision to be approved on consent at a future meeting.

Either reason is enough by itself, and both is an even stronger legal basis to support your decision if challenged. Two of you could decide together to make the motion and second it. (More than two of you cannot come to agreement before the meeting; the final majority decision must be made at the meeting in public.) Thank you,
Lasalle & Michelle Strong
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1 Moss, Julia
From: Ryan Yates <[email protected]>
Sent: Monday, June 19, 2023 10:40 AM
To: Moss, Julia; Brown, Kristen; Keiser, Marguax; Brooks, Yvette; Clarke, Joe; Pedersen, Alexander
Cc: Dally, Andrew ([email protected])
Subject: Restraining Order: A Ploy to Silence Valid Concerns Follow Up Flag: Follow up
Flag Status: Flagged
Dear Capitola City Council,
Michelle Strong, the owner of Capitola Bar and Grill located beneath my residenƟal unit, has sought a restraining order against me, which appears to be a ploy to prevent me from voicing my concerns at the upcoming city council meeƟng on June 22nd, 2023.
“Stop contacƟng local agencies and trying to harm my livelihood. Stop calling the police to make false reports.” – Michelle Strong
I, a resident of 231 Esplanade, Unit 301, have raised legiƟmate concerns about the establishment's disrupƟve acƟviƟes breaching local and state regulaƟons. It seems this restraining order is an aƩempt to silence my voice, thereby abusing its intended purpose and undermining our community's democraƟc values. Falsely using a restraining order is felony perjury in the State of California.

I urge the council to recognize the Ɵming and moƟvaƟon of this restraining order and safeguard the principles of open dialogue and jusƟce. I will not be aƩending due to acƟons by the Strongs.

I trust the council has my previous statements.

Thank you for your aƩenƟon.

Best regards,
Ryan Yates
[email protected]
831-247-7604
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1 Moss, Julia
From: Marc Garcia <[email protected]>
Sent: Monday, June 19, 2023 12:00 PM
To: City Council; Keiser, Marguax; ; Brooks, Yvette;
; [email protected]; Clarke, Joe
Cc: Marc Garcia
Subject: I support Capitola Bar & Grill
Follow Up Flag: Follow up
Flag Status: Flagged
I am wriƟng this leƩer in support of Capitola Bar & Grill. I request the City Council of Capitola, CA approve the Entertainment Permit for Capitola Bar & City council,
I am a resident here in Capitola for 4 years now and I have recently taken a posiƟon bartending at CBG. I’m asking for your support to the music program at CBG. The music in the village is part of the culture in Capitola. It’s one of the primary aƩracƟons for locals and for visitors. CBG is located right on the corner and right on the beach. Music, dancing, good food, and delicious drinks all go together with the the esplanade and other businesses. This locaƟon has always had music under different ownership. I don’t understand why it’s different now not to allow music. Even more now since the wharf house is closed as they were a popular place for the music. Besides music bringing fun and culture to Capitola at large, it brings revenue for the city. Music at CBG affects the livelihood of all the employees that work there. SupporƟng the music program at CBG will support the people that work there, the city’s revenue, and most of all, the culture of the beach city, CAPITOLA. It’s the RIGHT thing to do.

Thank you, Marc Garcia
Sent from my iPhone
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1 Moss, Julia
From: Tamra Loomis <[email protected]>
Sent: Monday, June 19, 2023 12:54 PM
To: City Council; Keiser, Marguax; ; Brooks, Yvette; Clarke, Joe; Pedersen, Alexander; [email protected]
Subject: I support Capitola Bar & Grill
Follow Up Flag: Follow up
Flag Status: Flagged
I am writing this letter in support of Capitola Bar & Grill. I request the City Council of Capitola, CA approve the Entertainment Permit for Capitola Bar & Grill.
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1 Moss, Julia
From: La Serena <[email protected]>
Sent: Monday, June 19, 2023 10:50 PM
To: Brown, Kristen; Keiser, Marguax; Brooks, Yvette; Clarke, Joe; Pedersen, Alexander; Moss, Julia
Cc: [email protected]; Ryan, Sarah ([email protected]); Dally, Andrew ([email protected])
Subject: [PDF] Opposition to the issuance of a live entertainment permit to Capitola Bar and Grill without landlord permission
Attachments: La Serena Letter to Capitola City Council.pdf Follow Up Flag: Follow up
Flag Status: Flagged
Good day, Madam Mayor, City Council and Staff,
Please find attached letter of opposition to the city council issuing a live entertainment permit to Capitola Bar and Gill.

Thank you,
La Serena Properties
231 Esplanade, Capitola, Ca 95010
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Steve Yates
La Serena Proper es
231 Esplanade
Capitola, California 95010
Capitola City Council
420 Capitola Ave
Capitola, CA 95010
Re: Opposi on to the issuance of a live entertainment permit to Capitola Bar and Grill without landlord permission Dear Members of the Capitola City Council,
I hope this le er nds you in good health and high spirits. I am wri ng to express my strong opposi on to the request made by Capitola Bar and Grill to obtain a live entertainment permit from the City without seeking permission from their landlord. Based on the recent decision of the Honorable Glenda Sanders, the Emergency Arbitrator for the JAMS, I believe it is crucial that the City Council considers the implica ons of this request and acts in accordance with the decision reached.

On April 17th, 2023, the Honorable Glenda Sanders rendered a decision that denied the interim relief sought by Capitola Bar and Grill. The decision clearly stated that the claimants failed to demonstrate immediate loss or damage that would necessitate emergency relief. Furthermore, the arbitrator found that the claimants did not establish a likelihood of success on the merits at that stage of the proceedings.

Considering the decision of the Emergency Arbitrator, it is evident that the request for emergency relief, whether characterized as a provisional mandatory injunc on, a provisional injunc on, or an interim declarator, was unequivocally denied. This decision reinforces the importance of adhering to established legal procedures and respec ng the rights and obliga ons of all par es involved.

Allowing, Capitola Bar and Grill to proceed with obtaining a live entertainment permit without the consent of their landlord would not only disregard the decision made by the Honorable Glenda Sanders but also set a dangerous precedent that undermines the legal framework and compromises the rights of property owners. It is crucial for the City Council to uphold the principles of fairness and legal integrity by respec ng the rights and responsibili es of both tenants and landlords.

I kindly request that the City Council carefully consider the ramica ons of gran ng a live entertainment permit to Capitola Bar and Grill without the necessary permission from their landlord. Doing so would not only contravene the decision made by the Honorable Glenda Sanders but also disregard the established legal processes and protec ons in place. It is essen al to maintain a fair and just environment for all par es involved and uphold the integrity of our legal system.

Thank you for your me and considera on. I trust that you will make a decision that reects the best interests of the community and ensures a harmonious balance between the rights of tenants and landlords. Please feel free to contact me if you require any further informa on or if there are any opportuni es for public input regarding this ma er.

Sincerely,
Steve Yates, La Serena Proper es
231 Esplanade, Capitola, Ca 95010
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1 Moss, Julia
From: Nancy Cibotti <[email protected]>
Sent: Tuesday, June 20, 2023 7:35 AM
To: City Council; Keiser, Marguax; Brooks, Yvette; Clarke, Joe; Pedersen, Alexander; [email protected]
Subject: I support Capitola Bar & Grill
Follow Up Flag: Follow up
Flag Status: Flagged
I am wriƟng this leƩer in support of Capitola Bar & Grill. I request the City Council of Capitola, CA approve the Entertainment Permit for Capitola Bar & Grill.

Thank you,
Nancy Ciboƫ
Aptos
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1 Moss, Julia
From: Kathy Keenan <[email protected]>
Sent: Tuesday, June 20, 2023 3:23 PM
To: City Council
Subject: Capitola Bar & Grill
I am writing to the City Council to support Capitola Bar & Grill in obtaining its entertainment license. As I understand it, their lease does not exclude live music, and the restaurant follows all regulations regarding live music, including ending by 10 pm. There is no reason to deny them an entertainment license, and the folks around here love live music.

Restaurants were badly hit by the pandemic, and we need to support these businesses in their comeback. Thank you.

Regards,
Kathy Keenan
[email protected]
408-358-7358
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1 Moss, Julia
From: Michelle Strong <[email protected]>
Sent: Tuesday, June 20, 2023 4:02 PM
To: Moss, Julia; City Council
Subject: [PDF] In support of Capitola Bar & Grill
Attachments: support-live-music-at-capitola-bar-amp-grill_062023.pdf Follow Up Flag: Follow up
Flag Status: Flagged
Please add the updated petition signatures for the June 22nd meeting.

Thank you,
Michelle Strong
Get Outlook for iOS
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1 Moss, Julia
From: Celine Grenier <[email protected]>
Sent: Tuesday, June 20, 2023 4:15 PM
To: City Council
Subject: Denial of Entertainment Permit at the Capitola Bar and Grill Follow Up Flag: Follow up
Flag Status: Flagged
Dear City Council,
The Capitola Bar and Grill's music was a positive addition to the atmosphere on the Esplanade. If the music was too loud for some people, perhaps volume restrictions could be set or the music could be allowed at least on Fridays, Saturdays and Sundays. Please look for a compromise.

Thank you for your consideration,
Celine Grenier and Jon Fatula
Capitola
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1 Moss, Julia
From: [email protected] on behalf of NAACP Santa Cruz County <[email protected]>
Sent: Wednesday, June 21, 2023 9:02 AM
To: City Council
Cc: [email protected]
Subject: [PDF] NAACP Santa Cruz County supports Capitola Bar & Grill's appeal of denied entertainment permit
Attachments: Capitola Bar n Grill support 6.20.23.letterhead.pdf Follow Up Flag: Follow up
Flag Status: Flagged
Dear Members of the Capitola City Council,
Regarding the item on the agenda for tomorrow, we submit the attached letter of support for the Capitola Bar and Grill's appeal of denial of their entertainment permit and strongly urge the council to be fair in its decision and grant them the permit.

Sincerely,
Jane Sooby
Secretary
--
To help protect your privacy, Microsoft Office prevented automatic download of this picture from the Internet.

NAACP Santa Cruz County Branch #1071
(831) 429-2266
P.O. Box 1433
Santa Cruz CA, 95061
[email protected]
https://www.naacpsantacruz.com/
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1 Moss, Julia
From: Ryan Yates <[email protected]>
Sent: Tuesday, June 20, 2023 10:52 PM
To: Moss, Julia; Keiser, Marguax; Gonzalez, Francisco@ABC; Brown, Kristen; Brooks, Yvette; Clarke, Joe; Pedersen, Alexander
Subject: [PDF] Urgent: Final Submission Regarding Capitola Bar and Grill's Music Permit Attachments: La Serena Letter to Capitola City Council.pdf Follow Up Flag: Follow up
Flag Status: Flagged
Dear Julia, Madam Mayor and Council Members,
Please include my final input on the music permit application for Capitola Bar and Grill in the record and note that I strongly object to its issuance.

I find myself at the center of Capitola Bar and Grill's unethical behavior, and while it's difficult, I'm glad it's me, not someone less equipped to handle it.

Their conduct over the past two years has involved intimidation, personal attacks, and even baseless legal claims to hurt me personally. Only to have the owners to turn around and accuse me of what they themselves are guilty of. And now it appears, their attacks do not just include me but also my children. These actions are more than just unethical - they show a total disregard for not only my family's well-being, but a flat disregard for societal norms and basic humanity.

As you may already know, the latest in the string of actions, over a music permit, is a fraudulent restraining order and an unprecedented amount of perjury on legal documents with ZERO evidence. I would like note:

Capitola Bar and Grill has cameras everywhere on the building, and still have zero evidence to support any claims. Unfortunately, for the perpetrator who filed this against me, this misuse of the law could lead to serious consequences, including heavy fines and imprisonment. Since there is no proof for the claims, the actions seem to be a thinly veiled SLAPP suit, intended to infringe on my First Amendment rights to protest the bad behavior of the business.

I have only conducted myself in a professional manner of petition, protest and free speech, as protected by the United States Constitution, as well as worked closely and ethically with Chief Dally and the Capitola Police Department. This blatant attempt to suppress my freedom of speech is deeply troubling.

The continuous attacks only strengthen my resolve. They serve as a reminder of why standing up for my rights and our community's integrity is so crucial. I am not perfect, as no one is. However, no matter the deceitful, baseless and cowardly tactics used, I'm not backing down.

I believe that granting a music permit to Capitola Bar and Grill would send the wrong message - that their behavior is somehow acceptable. This could potentially harm the peace and integrity of our community further. Their actions will not stop with me. Permitting this behavior would only embolden it. It will be directed at whichever citizen holds them accountable next. As they have now proven themselves willing to break the law and lie under oath to get what they want, this is certain to happen again. 194
Item 3 A.
2 All of this aside I would further like to remind the city council of the basic facts:
 Capitola Bar and Grill's license to sell alcohol, by the State of California, strictly prohibits entertainment to be audible beyond the area under their control.
 Capitola Bar and Grill's lease within the building prohibits disrupting other tenants quiet enjoyment, NO MATTER THE TIME OF DAY.
 The State of California, County of Santa Cruz, and City of Capitola prohibit disrupting others quiet enjoyment, no matter the time of day, especially at elevated levels that constitute harassment, and contribute to physical harm and psychological distress.  Capitola Bar and Grill was in CONSTANT violation of the guidelines of the music permit Capitola issues.

Even when Capitola Bar and Grill mistakenly received a music permit, they violated it with complete disregard. 6 nights a week. In a manner that was blatant and intentional.  Capitola Bar and Grill does not have permission from the owner of the property. Nor was it EVER consented to.

Capitola Bar and Grill has undoubtedly questionable motivation behind them. Their unethical and unreasonable tactics, coupled with their illogical insistence, in such an unbearable and nonsensical way, undoubtedly raise concerns about the integrity of their business practices.

I trust that you'll weigh these issues carefully when making a decision, keeping our city and its people's welfare at the forefront.

Thank you for your time and consideration.

Best,
Ryan Yates
231 Esplanade, UNIT 301, Capitola, CA 95010
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Sincerely,
Steve Yates, La Serena Proper es
231 Esplanade, Capitola, Ca 95010
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1 Moss, Julia
From: Jill Ealy <[email protected]>
Sent: Thursday, June 22, 2023 11:10 AM
To: City Council
Subject: Capitola Bar & Grill
Follow Up Flag: Follow up
Flag Status: Flagged
To Members of the Capitola City Council,
My name is Jill Ealy, and I own Zeldas and previously owned Sotola Bar & Grill, now Capitola Bar & Grill. When we sold Sotola to the Strongs we held a note that was to be paid in full at 18 months. Due to this loan, the landlord Steve Yates insisted we stay on the lease until said note was paid. This last January, the Strongs stopped paying the monthly payment and then defaulted on the balloon payment that was due the following month. At this point, the Strongs owe us approximately $80,000.

As such, I have had to spend the the last year in between these two parties. At first I tried to help them find a common understanding or agreement. It quickly became clear that neither of them were interested in a compromise and were willing to go to great lengths to get what they want. I have now had to hire an attorney to navigate where we fit and how we can get paid and off this lease while having little to no control.

With that said, while the Strongs are in default of the sublease, it is my belief they should have no legal standing to raise the issue of music and an entertainment permit. If they wish to pursue this issue with the City and/or Steve Yates, they need to correct this default. Once corrected, they would be the tenant in good standing and could move forward.

Thank you for your time and consideration,
Jill Ealy
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1 Moss, Julia
From: Katharine Parker <[email protected]>
Sent: Wednesday, June 21, 2023 7:42 AM
To: City Council
Subject: Depot Path Council Discussion June 22
Follow Up Flag: Follow up
Flag Status: Flagged
Dear City Council,
We cannot attend the June 22 meeting about the Depot Hill path, but we hope that the City will create an organized and thorough plan to support the continued existence of the Depot Hill path. The path is worth your attention and funding. The path is our neighborhood’s life blood…it’s where we exercise, visit our neighbors, meet people from other neighborhoods, meet tourists from all over the world. It’s where toddlers learn to walk and children learn to ride their bikes. And it’s not just for our neighborhood…people who work closeby come for their lunch breaks; people from all over walk by, or jog, or relax. Old and young, healthy and ailing, this path has been open for all. In the past 5 minutes I’ve watched over 25 people walk by (weeknight evening). The path is as much a park as a path. It’s even listed on the City’s website, on the visitor map.

So…the goal is to preserve a safe public path along Grand Avenue. How can we do this? It would be helpful if the City can plan for the entire path instead of approaching it piecemeal.

What can the City do to protect the path?
#1 Retrieve the easements planted on by residents. This would include our own easement. The encroached areas were not part of the road itself so preparing that part to be part of a path could be an opportunity to redirect and improve the present drainage. Maybe you could just
move the fence now & give us all notice that you will be retrieving the easements within a certain period of time. #2 Discourage erosion from the cliff top by altering the present drainage that now actively promotes erosion by channeling water from the adjacent blocks, runs it down Grand with no slowdown, and directly over the cliff onto the cliff face. The Grand Avenue homeowners paid for an engineered drainage study that was presented to the City years ago. Perhaps the City could employ some of this information? #3 Look for other means of discouraging erosion from the cliff top? I believe that the City applied for FEMA funds to rebuild the Jewel Box path. The City applied for funding and a tax to rebuild the Wharf. Thus far the City has only acted to the detriment of the Depot Hill path. The reinforced jetty traps sand that would have travelled downcurrent to the bluff base, and the drainage system acts to erode the cliff face. This may not be an easy fix but it’s worth the City’s time and funding to address it. Residents and visitors alike will thank you and applaud your vision.

Thank you,
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2 Tom and Katharine Parker
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1 Moss, Julia
From: Helen Bryce <[email protected]>
Sent: Thursday, June 22, 2023 12:33 AM
To: City Council
Subject: Grand Avenue Pathway
Follow Up Flag: Follow up
Flag Status: Flagged
Dear Capitola City Council Members,
I am writing today regarding the proposed improvements to the Grand Avenue Pathway. I agree that the Pathway is an important feature of our community. As I read over the report prepared by the Public Works Department, it appears that the best plan for the long term use of the Pathway is Option #2 "Remove encroachments in the Grand Avenue rightof-way". While I understand that this option would require additional cost and additional staff time, it would enable better use of the Pathway now, and help prevent the need for duplicating work in the future. As a Capitola resident and property owner, I urge you to implement Option #2. Thank you very much.

Helen Bryce
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1 Moss, Julia
From: John Shenk <[email protected]>
Sent: Thursday, June 22, 2023 9:09 AM
To: City Council
Subject: June 22nd Council Meeting - Item 7 (B) - Grand Avenue Pathway Follow Up Flag: Follow up
Flag Status: Flagged
Mayor Keiser, Vice Mayor Brown, and Council Members Brooks, Clarke, and Pedersen, We ask that the public access trail be preserved as much as can safely been done. Please approve Option 2 in the Staff Report. This is not a community asset to be lost - we must do the good work to maximize its utility and safety to benefit the entire community.

We have been residents of the Depot Hill neighborhood for 15+ years and the access to Grand Avenue is a significant public asset worthy of the Staff time and “moderate cost” shown in Table 1 to preserve it with the lowest risk.

On Grand Avenue, each day many enjoy moments of tranquility and peace viewing the Bay, meet neighbors and residents of Capitola as well as from far away places, see children ride bikes, and dogs out for a stroll. Preserving the access and walking path is our duty. One day it may all be gone, but for now, for the foreseeable future, please take decisive action to approve Option 2. When compared to the cost to create such a public asset the work and capital investment to maximize the utility of the existing public land and preserve this walking path is minimal.

Respectfully, the Shenks at 117 Saxon Avenue
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Capitola City Council
Agenda Report
Meeting: June 22, 2023
From: City Manager Department
Subject: Consider and Approve 6/8/2023 City Council Meeting Minutes Recommended Action: Approve minutes from the regular meeting on June 8, 2023.

Background: Attached for Council review and approval are the draft minutes from the regular City Council meeting on June 8, 2023.

Attachments:

1. 6/8/2023 Regular Minutes
Report Prepared By: Julia Moss, City Clerk
Approved By: Jamie Goldstein, City Manager
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City of Capitola
City Council Meeting Minutes
Thursday, June 08, 2023 – 6:00 PM
City Council Chambers
420 Capitola Avenue, Capitola, CA 95010
Mayor: Margaux Keiser
Vice Mayor: Kristen Brown
Council Members: Yvette Brooks, Joe Clarke, Alexander Pedersen Closed Session – 5 PM
A. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation pursuant to Government Code §54956.9(d)(2) One Case
Regular Meeting of the Capitola City Council – 6 PM

1. Roll Call and Pledge of Allegiance – The meeting was called to order at 6:00 PM. In attendance: Council Members Brooks, Clarke, Pedersen, Brown, and Mayor Keiser.

2. Report on Closed Session – The City Council met and discussed one item on the Closed Session Agenda. No reportable action was taken.

3. Additions and Deletions to the Agenda – Change order of Items 9B and 9C.

4. Presentations
A. City Clerk Moss introduced Austin Westly, Deputy City Clerk, and Rosie Wyatt, Customer Service and Office Coordinator
B. The Mayor presented a Proclamation honoring Parks and Recreation Month in July to the Recreation Division

5. Additional Materials
A. Correspondence Received - Item 8D – 80 emails
B. Additional Materials - Item 9A
C. Correspondence Received - Item 9D – 2 emails

6. Oral Communications by Members of the Public
 Gorin Klepich, resident, spoke about Jade Street Park.

7. Staff / City Council Comments
 Council Member Clarke reminded residents of the Classic Car Show in Capitola.  Council Member Brooks thanked volunteers for their efforts.

8. Consent Items
A. Approval of City Council Minutes
Recommended Action: Approve 5/25/2023 City Council Meeting Minutes B. Public Works Equipment Budget Amendment
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City Council Meeting Minutes – June 08, 2023
City of Capitola Page 2
Recommended Action: Adopt a resolution to amend the FY 2022-23 budget to allow for the purchase of $35,000 of essential equipment from the Equipment Internal Service Fund.

C. FY 2023-24 Appropriation Limit
Recommended Action: Adopt a resolution setting the Fiscal Year 2023-24 appropriation limit.

D. Ordinance Adding Capitola Municipal Code Chapter 2.18 Recommended Action: Adopt an ordinance of the City of Capitola adding Capitola Municipal Code Chapter 2.18 establishing mobile home park rent stabilization.

E. Wharf to Wharf Race Donation Agreement
Recommended Action: Authorize the City Manager to sign an agreement with Wharf-to-Wharf Race for the handling of donations for the Capitola Wharf Enhancement Project (CWEP).

Motion to approve Items 8A, 8B, 8C, 8E: Vice Mayor Brown Seconded: Council Member Clarke
Voting Yea: Council Members Brooks, Clarke, Pedersen, Vice Mayor Brown, and Mayor Keiser
Motion to approve Item 8D: Vice Mayor Brown
Seconded: Council Member Brooks
Voting Yea: Council Members Brooks, Clarke, Pedersen, and Vice Mayor Brown Abstaining: Mayor Keiser

9. General Government / Public Hearings
A. Jade Street Community Center Renovation Project
Recommended Action: Provide direction to staff regarding the conceptual design for the Jade Street Community Center Renovation Project.

Public Works Director Kahn presented the staff report.

The City Council provided direction to staff to seek external funding sources for this project and return in September with an update.

B. Jade Street Park Universally Accessible Playground Project Conceptual Design Alternatives Recommended Action: Direct staff to work with Verde Design and prepare a final concept plan, for consideration by the Council on July 27, 2023, for the Jade Street Park Universally Accessible Playground Project that meets projected available funding and include opportunities to enhance the design should additional funding become available.

Public Works Director Kahn presented the staff report.

Janet, resident, spoke in support of this project.

Council Member comments included recognition of the value of the communication board element, a recommendation for staff to seek outside funding sources, and request to maintain square footage of the project.

The City Council directed staff to prepare a final concept plan that meets projected available funding, includes opportunities to enhance design if additional funding is obtained, and return to the City Council in July.

C. Jade Street Park Universally Accessible Playground Fundraising Partnership 204
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City Council Meeting Minutes – June 08, 2023
City of Capitola Page 3
Recommended Action: 1) Approve the playground naming procedure; and 2) Direct staff to draft a Sponsorship Policy.

Chloe Woodmansee, Assistant to the City Manager, presented the staff report.

Brenda, resident, spoke in support of this project.

The City Council provided direction to staff on the naming and sponsorship of the project.

D. Housing Element Public Review Draft
Recommended Action: Receive staff presentation on Housing Element public review draft and provide feedback.

Community Development Director Herlihy presented the staff report.

Public Comments:
 Albert Lufrey, Union Worker, spoke in support of worker housing.  Rene Biaz, NorCal Carpenters Union, spoke in support of worker housing.  John Mulry, resident, spoke in support of worker housing.

Council Member comments included thanks for staff and the consultant’s presentation, a wish to incorporate local labor and fair wages into the Housing Element, and clarification on the mall’s housing usage.

E. Modification to Parking Meter Rates
Recommended Action: Introduce, by title only, waiving further reading of the text, an ordinance of the City of Capitola amending Municipal Code Sections 10.36.055A and 10.38.010.

Community Development Director Herlihy presented the staff report.

Motion to introduce the ordinance: Vice Mayor Brown
Seconded: Council Member Pedersen
Voting Yea: Council Members Brooks, Clarke, Pedersen, Brown, and Mayor Keiser F. 2023 – 2024 Salary Schedule
Recommended Action: Adopt a resolution approving the Fiscal Year 2023 – 2024 annual salary adjustment, consistent with the following employment agreements: Association of Capitola Employees, Police Officers Association, Confidential Employees, Police Captains, and Management.

Chloe Woodmansee, Assistant to the City Manager, presented the staff report.

Motion to adopt the resolution: Council Member Pedersen Seconded: Vice Mayor Brown
Voting Yea: Council Members Brooks, Clarke, Pedersen, Brown, and Mayor Keiser

10. Adjournment – Adjourned at 8:01 to the next regularly scheduled meeting at 4:00 PM on June 22, 2023.
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Capitola City Council
Agenda Report
Meeting: June 22, 2023
From: Finance Department
Subject: Approval of City Check Registers Dated May 26, 2023, and June 9, 2023
Recommended Action: Approve check registers.

Account: City Main
Date Starting Check # Ending Check # Payment
Count Amount
5/26/2023 103372 103488 126 $ 519,725.18
6/9/2023 103489 103626 144 $ 1,070,705.81
The main account check register dated May 12, 2023, ended with check #103371.

Account: Payroll
Date Starting
Check/EFT #
Ending
Check/EFT #
Payment
Count Amount
5/26/2023 5821 5822 121 $ 258,002.42
6/9/2023 22184 22308 125 $ 188,826.47
The payroll account check register dated May 12, 2023, ended with EFT #22064.

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

Check/
EFT Issued to Dept Description Amount
103385 Betz Works Inc PW Replace failed sewer lateral at City Hall $ 28,800.00
103391 CALE America Inc PD Paystation repairs and service charges Aug – May $ 25,344.29
103427 Pacific Gas & Electric PW May utilities $ 12,816.88 103451 Visit Santa Cruz County Fin Jan – Mar TMD $ 54,119.20 103454 Watsonville Ford PW 2022 Ford F250 $ 46,399.45
103455 Wells Fargo Bank Fin April credit card charges $ 10,079.63 1524 CalPERS Health Insurance CM June health insurance $ 64,303.43 1525 CalPERS Member
Services Division CM PERS contributions PPE 5/13/23 $ 56,286.62 1526 Employment Development
Department CM State taxes PPE 5/13/23 $ 20,818.55
1527 Internal Revenue Service CM Federal taxes & Medicare PPE 5/13/23 $ 64,934.14
1529 VOYA Financial CM Employee 457 contribution
PPE 5/13/23 $18,235.47
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22078 Employee CM Payroll PPE 5/13/23 – includes
mandatory vacation cash out $ 14,160.85
22117 Employee CM Payroll PPE 5/13/23 – includes
mandatory vacation cash out $ 12,202.60
22137 Employee CM Payroll PPE 5/13/23 – includes
mandatory vacation cash out $ 11,066.52
22143 Employee CM Payroll PPE 5/13/23 – includes
mandatory vacation cash out $ 10,150.18
22146 Employee CM Payroll PPE 5/13/23 – includes
mandatory vacation cash out $ 10,474.52
103508 Burke Williams & Sorensen CM April legal services $ 26,396.51 103511 California Grey Bears Inc CDD CDBG health food program grant $ 56,174.09
103524 Diamond D Company PW Kennedy sidewalk project $ 139,170.25 103546 iWorQ Systems Inc CM CDD & PW software July 2023 – June 2024 $ 10,375.00
103563 Moffatt & Nichol PW Wharf & beach project services $ 60,982.14 103585 SC County Dept of Public
Works PW Road rehab cost share $ 428,699.00
103586 SC County Human
Services Dept CM Homeless action partnership cost share $ 39,950.00 103592 SC Swimming CAFL Rec Spring swim lessons $ 10,000.00 1534 CalPERS Member
Services Division CM PERS contributions PPE 5/27/23 $ 56,583.32 1536 Internal Revenue Service CM Federal taxes & Medicare PPE 5/27/23 $ 33,350.56
Attachments:

1. 5-26-23 Check Register

2. 6-9-23 Check Register
Report Prepared By: Leda Laidlaw-Hunter, Accountant I
Reviewed By: Julia Moss, City Clerk and Jim Malberg, Finance Director Approved By: Jamie Goldstein, City Manager
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Capitola City Council
Agenda Report
Meeting: June 22, 2023
From: Community Development
Subject: Modification to Parking Meter Rates
Recommended Action: 1) Adopt, by title only, waiving further reading of the text, an ordinance of the City of Capitola amending Municipal Code Sections 10.36.055A and 10.38.010; and 2) Adopt a resolution authorizing submittal to the California Coastal Commission for the certification of an amendment to the Local Coastal Program for Section 10.36.055A.

Background: On March 23, 2023, the City Council directed staff to prepare the necessary documentation to implement the recommendations of the Temporary Village Parking Committee (TVPC) related to parking rates, as follows:
o Increase parking rates from $1.50 per hour to $2.00 per hour in the Village and maintain threehour maximum. o Increase parking rates from $1.00 per hour to $2.00 per hour on Cliff Drive and maintain twelve-hour maximum.
o Increase parking rates from $0.50 per hour to $1.00 per hour in the Upper and Lower Beach and Village parking lots and maintain twelve-hour maximum.

On May 4, 2023, the public review draft of the ordinance was published on the city’s website and notification letters were sent to regional agencies.

On June 8, 2023, the City Council introduced the ordinance.

Discussion: The proposed amendment will remove parking rates from Local Coastal Program Implementation Plan Section 10.36.055A and add a requirement for a Coastal Development Permit to establish or modify parking meter rates. The ordinance also adjusts the parking meter rates in Section

10.38, consistent with prior City Council direction.

The ordinance must be certified by the California Coastal Commission prior to taking effect. Analysis of how the ordinance amendment is in conformity with and adequate to carry out the certified land use plan is included as Attachment 3.

Fiscal Impact: Increases to the parking meters rates in the proposed ordinance would result in an estimated increase in revenues of $400,000 annually.

Attachments:

1. Ordinance Amending the Parking Meter LCP

2. Resolution authorizing submittal of LCP amendment to Coastal Commission

3. Analysis on conformity with certified land use plan
Report Prepared By: Katie Herlihy, Community Development Director Reviewed By: Julia Moss, City Clerk; Samantha Zutler, City Attorney Approved By: Jamie Goldstein, City Manager
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ORDINANCE NO. ___

AN ORDINANCE OF THE CITY OF CAPITOLA
AMENDING SECTION 10.36.055 OF THE CAPITOLA

MUNICIPAL CODE PERTAINING TO PARKING METER RATES AND ZONES AND AMENDING SECTION 10.38 SPECIFICATION OF PARKING METER RATES
WHEREAS, the City of Capitola’s Local Coastal Program (LCP) was certified by the California Coastal Commission in December of 1981 and has since been amended from time to time; and
WHEREAS, Chapter 10.36 of the Capitola Municipal Code is part of the Capitola’s LCPImplementation Plan (“LCP-IP”); and WHEREAS, Section 10.36.055 of the LCP-IP includes parking meter rates and parking meter zones which were last updated in 2009; and
WHEREAS, because the City’s parking meter rates and parking meter zones are included within the City’s LCP-IP, any amendments to those provisions, including routine updates to adjust parking meter rates with inflation, require an amendment to Capitola’s LCP-IP and certification by California Coastal Commission; and
WHEREAS, the City of Capitola is the only California coastal city with parking meter rates included within the City’s LCP-IP; and
WHEREAS, it is common practice in other cities located within the Coastal Zone to obtain a Coastal Development Permit, rather than amend their LCP-IP, to modify parking meter rates and zones to ensure consistency with the Coastal Act; and
WHEREAS, the City of Capitola is required to establish parking meter zones and rates within the Municipal Code consistent with State of California Vehicle Code Section 22508; and WHEREAS, staff evaluated the potential impact on public coastal access, and maintaining existing levels of public access in determining appropriate parking meter rates; and WHEREAS, the proposed amendments support opportunities for alternative access to the Coastal Zone so as to fully mitigate any potential negative impacts and maximize access opportunities; and
WHEREAS, revenue from fee-based parking programs within the Coastal Zone shall be utilized to fund public access to coastal resources, protect public safety in the Coastal Zone, and provide public services in the Coastal Zone.

BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CAPITOLA AS FOLLOWS:

Section 1. Capitola Municipal Code Section 10.36.055 is hereby amended to read as follows:

10.36.055 Parking meter zones/rates.

A. The following parking meter zones are hereby established in the city of Capitola:

1. Parking Meter Zone A(1). The area labeled as Zone A(1) on the map attached hereto as Exhibit “A” found on file in the office of the city clerk, shall constitute parking meter Zone A(1) . The city public works director, acting in the director’s capacity as superintendent of streets, is hereby authorized to install parking in all public parking spaces located in zone A(1) and to place appropriate signage in zone A(1) relative to said metered parking. Parking meters will operate in 242
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zone A(1) each day of the week from the hours of eight a.m. to eight p.m. The city council, by resolution or minute order, may designate days when said parking meters will not operate.

Parking meter zone A(1) includes parking spaces along both sides of the following streets located in and surrounding the Capitola Village:
a. Capitola Avenue from Monterey Avenue to Beulah Drive; b. Monterey Avenue from Esplanade to the Union Pacific Railway; c. Esplanade along its entire length from Stockton Avenue to Monterey Avenue; d. San Jose Avenue from Capitola Avenue to Esplanade;
e. Stockton Avenue from Capitola Avenue to Cliff Drive; f. Wharf Road from Stockton Avenue to the Capitola Municipal Wharf;

2. Parking Meter Zone A(2). The area labeled as Zone A(2) on the map attached hereto as Exhibit “A” found on file in the office of the city clerk, shall constitute parking meter zoneA(2) . The city public works director, acting in the director’s capacity as superintendent of streets, is hereby authorized to install parking meters in all public parking spaces located in zone A(2) and to place appropriate signage in zone A(2 relative to said metered parking. Parking meters will operate in zone A(2) each day of the week from the hours of eight a.m. to eight p.m. The city council, by resolution or minute order, may designate days when said parking meters will not operate.

Parking meter zone A(2) includes parking spaces along both sides of the following street:
a. Cliff Drive from Stockton Avenue to the city limits;

3. Parking Meter Zone B. The city-owned parking lot adjacent to, and directly to the north and east of Capitola City Hall, portion of APN 35-141-33 located at 426 Capitola Avenue, which encompasses the area known as Pacific Cove Parking Lot, as depicted on the map attached hereto as Exhibit “B” found on file in the office of the city clerk, shall constitute parking meter zone B. The city public works director, acting in the director’s capacity as superintendent of streets, is hereby authorized to install parking meters in all public parking spaces located in zone B and to place appropriate signage in zone B relative to said metered parking. Parking meters will operate in zone B each day of the week from the hours of eight a.m. to eight p.m. The city council by resolution or minute order may designate days when said parking meters will not operate.

B. The following parking meter rates are hereby established in the city of Capitola:

Zone A(1) (Village Area).................................. $2.00 per hour Zone A(2) (Cliff Drive Area)…………… ........... $1.00 per hour Zone B (Pacific Cove Parking Lot).................. $0.75per hour Section 2. This ordinance shall take effect and be in force thirty (30) days after final adoption or upon approval of Coastal Development Permit No.09-002, which ever occurs last.

A. Parking meter zones and rates.

1. The City Council may establish parking meter zones and rates consistent with State of California Vehicle Code Section 22508.

2. Changes to parking meter zones and rates shall only be upon the issuance of a Coastal Development Permit.

3. When considering a Coastal Development Permit application for parking meter zones and rate modifications, the City shall evaluate the potential impact on public coastal access, and ensure existing levels of public access are maintained, including through ensuring that alternative access opportunities, including bike lanes and parking, pedestrian trails, and relocated free 243
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vehicular parking spaces, are provided so as to fully mitigate any potential negative impacts and maximize access opportunities. Any revenue from fee-based parking programs within the Coastal Zone shall only be used to fund public access to coastal resources, protect public safety in the Coastal Zone, and provide public services in the Coastal Zone.

Section 2. Capitola Municipal Code Section 10.38.010 is hereby amended to read as follows:

10.38.010 Specification of Parking Meter Zones and Rates A. The following Parking Meter Zones are hereby established in the City of Capitola:

1. Parking Meter Zone A(1). The area labeled as Zone A(1) on the map attached to the ordinance codified in this chapter as Exhibit “A” found on file in the office of the city clerk shall constitute Parking Meter Zone A(1).

Parking Meter Zone A(1) includes parking spaces along both sides of the following streets located in and surrounding the Capitola Village:
a. Capitola Avenue from Monterey Avenue to Beulah Drive; b. Monterey Avenue from Esplanade to the Union Pacific Railway; c. Esplanade along its entire length from Stockton Avenue to Monterey Avenue; d. San Jose Avenue from Capitola Avenue to Esplanade;
e. Stockton Avenue from Capitola Avenue to Cliff Drive; and f. Wharf Road from Stockton Avenue to the Capitola Municipal Wharf.

2. Parking Meter Zone A(2). The area labeled as Zone A(2) on the map attached to the ordinance codified in this chapter as Exhibit “A” found on file in the office of the city clerk shall constitute Parking Meter Zone A(2). Parking Meter Zone A(2) includes parking spaces along both sides of the following street: Cliff Drive from Stockton Avenue to the city limits.

3. Parking Meter Zone B. The city-owned parking lots adjacent to, and directly to the north and east of Capitola City Hall, comprised of APN 35-141-33 located at 426 Capitola Avenue, which encompasses the area known as the Upper and Lower Pacific Cove Parking Lots, as depicted on the map attached to the ordinance codified in this chapter as Exhibit “B” found on file in the office of the city clerk, shall constitute Parking Meter Zone B.

B. The city public works director, acting in the director’s capacity as superintendent of streets, is hereby authorized to install parking meters in all public parking spaces located in all meter zones and to place appropriate signage relative to said metered parking. Parking meters will operate in each day of the week from the hours of eight a.m. to eight p.m. The city council, by resolution or minute order, may designate days when said parking meters will not operate in any meter zone.

C. The following parking meter rates are hereby established in the city of Capitola:

Zone A(1) (Village Area) $1.50 $2.00 per hour
Zone A(2) (Cliff Drive Area) $1.00 $2.00 per hour
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Zone B (Pacific Cove Parking Lot) $0.50 $1.00 per hour
Section 3.Compliance with the California Environmental Quality Act (“CEQA”). Adoption of this Ordinance is not a project within the meaning of CEQA Guidelines Section 15378 and 15061(b)(3) as it has no potential for physical effects on the environment because it involves a modification of certain rates and/or charges imposed by the City and additional administrative activity and does not commit the City to any specific project.

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

Section 4. Effective Date. This Ordinance shall take effect 30 days following adoption, or upon certification by the California Coastal Commission of Amendments to Chapter 10.36, whichever is later.

Section 5. Publication. The City Clerk is directed to publish this Ordinance as required by State law.

This ordinance was introduced on the 8th day of June, 2023 and was passed and adopted on the ___ day of ___, 2023 by the City Council by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED: ______________________________
Margaux Keiser, Mayor
ATTEST:
________________________,
Julia Moss, City Clerk
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RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAPITOLA AUTHORIZING

SUBMITTAL TO THE CALIFORNIA COASTAL COMMISSION FOR THE

CERTIFICATION OF AN AMENDMENT TO THE LOCAL COASTAL PROGRAM AMENDING MUNICIPAL CODE SECTION 10.36.055A.

WHEREAS, the City of Capitola’s Local Coastal Program (LCP) was certified by the California Coastal Commission in December of 1981 and has since been amended from time to time; and
WHEREAS, Chapter 10.36 of the Capitola Municipal Code is part of the Capitola’s LCPImplementation Plan (“LCP-IP”); and WHEREAS, Section 10.36.055 of the LCP-IP includes parking meter rates and parking meter zones which were last updated in 2009; and
WHEREAS, because the City’s parking meter rates and parking meter zones are included within the City’s LCP-IP, any amendments to those provisions, including routine updates to adjust parking meter rates with inflation, require an amendment to Capitola’s LCP-IP and certification by California Coastal Commission; and
WHEREAS, the City of Capitola is the only California coastal city with parking meter rates included within the City’s LCP-IP; and
WHEREAS, it is common practice in other cities located within the Coastal Zone to obtain a Coastal Development Permit, rather than amend their LCP-IP, to modify parking meter rates and zones to ensure consistency with the Coastal Act; and
WHEREAS, the City of Capitola is required to establish parking meter zones and rates within the Municipal Code consistent with State of California Vehicle Code Section 22508; and WHEREAS, staff evaluated the potential impact on public coastal access, and maintaining existing levels of public access in determining appropriate parking meter rates; and WHEREAS, the proposed amendments support opportunities for alternative access to the Coastal Zone so as to fully mitigate any potential negative impacts and maximize access opportunities; and
WHEREAS, revenue from fee-based parking programs within the Coastal Zone shall be utilized to fund public access to coastal resources, protect public safety in the Coastal Zone, and provide public services in the Coastal Zone.

WHEREAS, the amendments would become a component of the Implementation Plan of the City’s Local Coastal Program and is intended to be implemented in a manner that is in full conformance with the California Coastal Act.

WHEREAS, following the City Council’s adoption, Capitola staff submitted the amendment to section 10.36.055 to the Californian Coastal Commission staff for preliminary review in preparation for Local Coastal Plan (LCP) certification; and WHEREAS, Capitola Municipal Code Section 10.36.055 establishes specific review criteria and a coastal development permit to implement modifications to parking rates and parking zones as part of Capitola’s Local Coastal Program Implementation Plan; and 246
Item 6 C.

RESOLUTION NO.
__________________________
WHEREAS, the City provided Public Notice, as required under Coastal Act 30514 et seq., for Certification of the LCP Implementation Plan and Corresponding Maps.

NOW, THEREFORE, BE IT HEREBY RESOLVED, by the City Council of the City of Capitola, that this Resolution declares and reflects the City’s intent to amend the LCP Implementation Plan as it pertains to Section 10.36.055A, as drafted, if certified by the California Coastal Commission, in full conformity with the City of Capitola LCP and provisions of the California Coastal Act.

BE IT FURTHER RESOLVED, that the City Manager or his designee is directed to submit the said Coastal Commission LCP Amendments to the California Coastal Commission for its review and certification. If the Coastal Commission approves the amendment package, it will take effect automatically upon Coastal Commission approval or January 1, 2024, whichever is later. If the Coastal Commission modifies the amendment package, only the modifications will require formal action by the City of Capitola.

I HEREBY CERTIFY that the foregoing resolution was passed and adopted by the City Council of the City of Capitola on the 22nd day of June, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Margaux Keiser, Mayor
ATTEST:

Julia Moss, City Clerk
247
Item 6 C.

Analysis to demonstrate conformity with and adequacy to carry out the certified land use plan (Reg Sections 13511, 13512, 13519, 13552.) The following underlined items are submittal requirements for certification of an LCP-IP amendment followed by staff analysis. i. The staff report should include a discussion of the LCP or LCPA’s relationship to and effect on other sections of the LCP. (Reg Sections 13552)
Staff Analysis: Currently, metered parking rates are included in Capitola Municipal Code section

10.36.055 which is part of the City’s Local Coastal Program (LCP) Implementation Plan. Each time the City updates parking meter rates in Section 10.36, the change must be certified by the Coastal Commission prior to taking effect. This process can take up to six months. Capitola is the only coastal city in California with parking rates located within the LCP-IP. The proposed amendment removes the metered parking rates and zones from the LCP-IP. The amendment establishes a requirement of a coastal development permit and specific review criteria for rate amendments to ensure coastal access. The City Council would be authorized to issues such a CDP, however the Coastal Commission would have the authority to appeal the City’s decision. ii. For implementation plan (zoning/muni code) amendments the staff report should include an analysis of how the amendment is in conformity with and adequate to carry out the certified land use plan.

Staff Analysis: The proposed amendment requires that parking meter zones and rates require a CDP and “when considering a Coastal Development Permit application for parking meter zones and rate modifications, the City shall evaluate the potential impact on public coastal access, and ensure existing levels of public access are maintained, including through ensuring that alternative access opportunities, including bike lanes and parking, pedestrian trails, and relocated free vehicular parking spaces, are provided so as to fully mitigate any potential negative impacts and maximize access opportunities. Any revenue from fee-based parking programs within the Coastal Zone shall only be used to fund public access to coastal resources, protect public safety in the Coastal Zone, and provide public services in the Coastal Zone.” The review criteria tied to the CDP is in conformity with the land use plan as it protects public access. Specifically, it:
• requires the city to evaluate potential impacts on public coastal access • ensure existing levels of public access are maintained, including alternative access opportunities, to fully mitigate any potential negative impacts and maximize access opportunities
• requires all revenue from fee-based parking programs within the CZ only be used to fund public access to coastal resources, protect public safety in the CZ, and provide public services in the CZ.

The amendment is conformity with and adequate to carry out the following policies within the certified land use plan:

Policy II-1 It shall be the policy of the City of Capitola to provide safe and adequate 248
Item 6 C.
pedestrian access to and along the shoreline as designated in the Shoreline Access Plan.

Policy II-2 It shall be the policy of the City of Capitola to maintain the existing shuttle bus system so that it serves as an alternative to automobile use and parking within the Village. Furthermore, the City shall continue to seek out and implement other parking alternatives that may become available in the future. The intensity of development within Capitola Village shall be limited to the availability of parking.

Policy II-14 Maintain a commitment to all existing access walkways and paths to Capitola Beach.

Policy III-11 Public spaces and pedestrian paths in Capitola Village should be maintained and improved where necessary. Pedestrian use of these elements should always be of primary importance. Public pathways should be landscaped where appropriate to improve the appearance of the path.

Relevant Coastal Act Policies
SEC. 30210: In carrying out the requirement of Section 4 of Article X of the California Constitution, maximum access, which shall be conspicuously posted, and recreational opportunities shall be provided for all the people, consistent with public safety needs and the need to protect public rights, rights of private property owners, and natural resource areas from overuse.

SECTION 30213: Lower cost visitor and recreational facilities and housing opportunities for persons of low and moderate income shall be protected, encouraged, and where feasible, provided. Developments providing public recreational opportunities are preferred. New housing in the coastal zone shall be developed in conformity with the standards, policies, and goals of local housing elements adopted in accordance with the requirements of subdivision (c) of Section 65302 of the Government Code.
iii. In addition, if the affected area or application of an ordinance would involve land situated between the ocean and first public through road, or overall intensity of development, the local government staff report should address any potential effects that the proposed amendment will have on public access.

Staff Analysis: Public access was evaluated above. The proposed amendment ensures that potential effects on public access are evaluated, ensures existing levels of public access are maintained, and requires all revenues to be allocated within the coastal zone toward public access, safety, and services.
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Item 6 C.

Capitola City Council
Agenda Report
Meeting: June 22, 2023
From: Public Works Department
Subject: Storm Damage Repair Contracts – Small Projects Recommended Action: Authorize staff to enter into all necessary contracts to repair storm-damaged infrastructure in an amount not to exceed a total cost of $790,000, with a net cost to the City of less than $50,000.

Background: During and immediately after the storm event on January 5, 2023, multiple City assets sustained damage. Staff has been working through the Federal Emergency Management Agency (FEMA) Public Assistance (PA) Program with the California Office of Emergency Services (CalOES) and FEMA staff to address damage repairs and recently received authorization to move forward with many small projects. Several additional projects are continuing to proceed through the PA Program process and will receive authorization to proceed at a later date.

Discussion: Table 1 summarizes the small projects included for Council approval in this staff report. More detail is provided in Attachment 1. Staff has advertised construction bids for these projects and anticipates contract execution in the next two to three weeks for construction in Summer and Fall 2023, dependent on permitting conditions and the need to maintain public access. Projects may be completed by one or several contractors.

Table 1. Small Project Estimates
Project Construction
Period 2023
Cost Estimate
Escalona & Monterey Mill & Overlay Summer $80,000
Cliff Drive Parking Stalls Mill & Overlay Summer $50,000 Hoopers Beach Access Ramp Fall $70,000
Jetty Rehabilitation Fall $200,000
Prospect Ave Slip Out Summer $120,000
Wharf Rd Slip Out Stabilization Summer $70,000
Soquel Creek Park & Bulkhead Repair Fall $140,000
Storm Drain Outfalls Summer $60,000
Total Estimate $790,000
In the event that bids for these projects result in a total cost of more than $790,000, staff will return to Council to consider options to fund the project costs.

Staff expects multiple projects to be completed by the same vendors, such that there will ultimately be four contracts, each for more than one project, and each for approximately $195,000. Staff expects responses to the bid documents no later than June 30, and for contracts to be prepared the following week. Staff is bringing this item now so that it may begin work on these projects prior to the next City Council meeting.

Fiscal Impact: The FEMA PA program provides 75% of project costs and CalOES provides 75% of the remaining costs. The City is responsible for the remaining 6.25% of project costs, approximately $50,000.

Funding for the City contribution for these projects is available in the Emergency Reserve Fund and has been accounted for in the draft FY 23/24 Budget.

CEQA: The proposed projects are statutorily exempt from the provisions of California Environmental Quality Act (CEQA) as an emergency project pursuant to Section 15269(b)(c), which provides for 250
Item 6 D.
emergency repairs to a publicly owned serviced facility and categorically exempt as an existing public facility pursuant to Section 15301(d) of the CEQA Guidelines, which provides for restoration of a public facility damaged from an environmental hazard such as flood for continued use of the facility involving negligible or no expansion of use beyond that already existing.

Attachments:

1. Project Summary
Report Prepared By: Jessica Kahn, Public Works Director Reviewed By: Julia Moss, City Clerk; Samantha Zutler, City Attorney Approved By: Jamie Goldstein, City Manager
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Item 6 D.

Capitola City Council
Agenda Report
Meeting: June 22, 2023
From: Public Works Department
Subject: 2023-24 Road Maintenance and Rehabilitation Account Expenditures Recommended Action: Approve a resolution adopting a list of road maintenance and rehabilitation projects for Fiscal Year 2023-24, funded by Senate Bill 1: the Road Repair and Accountability Act of 2017.

Background: On June 9, 2022, the City Council held a duly noticed public hearing and approved a 5-year list of street and road projects based on projected funding for the City, including funding from the Road Maintenance and Rehabilitation Account, also known as Senate Bill 1 (SB 1). The 2023-24 project list includes heavy rehabilitation on Reposa Avenue, which has one of the City’s lowest pavement condition indexes (PCI) at 21.

Discussion: In 2023-24 Capitola is programmed to receive $243,569 from SB 1. All SB 1 funds will be spent on rehabilitating Capitola Road as listed in the 5-year list of projects.

Fiscal Impact: The revenue and expenditures of $243,569 for SB 1 are accounted for in the Special Revenue fund for the Road Maintenance and Rehabilitation Account.

Attachments:

1. Resolution
Report Prepared By: Jessica Kahn, Public Works Director Reviewed By: Julia Moss, City Clerk
Approved By: Jamie Goldstein, City Manager
260
Item 6 E.

RESOLUTION NO._______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAPITOLA ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2023-24 FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and
WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, the City, will receive an estimated $243,569 in RMRA funding in Fiscal Year 2023-24 from SB 1; and
WHEREAS, this is the seventh year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and WHEREAS, the City has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list; and WHEREAS, the City completed an update to the Pavement Management System in 2022 to develop the SB 1 project list to ensure revenues are being used on the most high-priority and costeffective projects that also meet the communities priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City complete needed pavement management improvement projects; and
WHEREAS, the 2018 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads are in an “at-risk” condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into a “good” condition; and
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WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will provide a dedicated source of funding for roadway projects.

NOW, THEREFORE IT IS HEREBY RESOLVED, ORDERED AND FOUND by the City Council of the City of Capitola, State of California, as follows:

1. The foregoing recitals are true and correct.

2. The following list of newly proposed projects will be funded in-part or solely with Fiscal Year 2023-24 Road Maintenance and Rehabilitation Account revenues:

Project Title: Reposa Avenue Rehabilitation
Project Description: Heavy rehabilitation, grind and overlay, on Reposa Avenue Project Location: 38th Avenue to 41st Avenue
Estimated Project Schedule: Start (02/24)– Completion (06/24) Estimated Project Useful Life: 15-20 years
PASSED AND ADOPTED by the City Council of the City of Capitola, State of California this 22nd day of June, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________
Margaux Keiser, Mayor
ATTEST:
_______________________
Julia Moss, City Clerk
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Item 6 E.

Capitola City Council
Agenda Report
Meeting: June 22, 2023
From: Police Department
Subject: Capitola Bar and Grill Entertainment Permit Appeal Recommended Action: Adopt a resolution denying an appeal of the City Manager’s decision to deny an application for a 2023 Regular Entertainment Permit for Capitola Bar and Grill.

Background: Capitola Municipal Code Chapter 5.24 governs entertainment permits. Section 5.24.020 requires any business to obtain an entertainment permit before arranging for or allowing entertainment to be conducted on their premises. Section 5.24.010 defines “entertainment” as a performance by live entertainers for entertaining patrons; or, playing recorded music, with or without video, for the specific purpose of entertaining patrons.

Section 5.24.030 divides entertainment permits into three categories, with various fees and conditions based on the type of entertainment and activities.
 “Single-event” entertainment permits are required for activities that occur within a single sevenday period.  “Minor” entertainment permits are required for businesses that have entertainment that is incidental to the primary business, have no dance floor or elevated stage, and never require a cover charge.
 “Regular” entertainment permits are required for businesses that provide entertainment but do not qualify for a single-event or minor entertainment permit. This permit governs establishments that have live music and entertainment that attracts business.

Section 5.24.040.B authorizes the City Manager, or department head designee, to issue certain entertainment permits upon making the findings in Section 5.24.040.C. Section 5.24.040.D authorizes the City Council or City Manager to condition the permit to assure that the authorized entertainment does not cause disturbances.

To further guard against disturbance, CMC Section 5.24.040.D authorizes the City Manager to add conditions to each permit regarding the days and times of operation, addressing any public safety issues, and requiring the permittee to manage noise level limits.

Section 5.24.080 authorizes the City Manager to develop application forms for entertainment permits.

Applicants may be required to submit any nonprivileged information reasonably related to the intent of the ordinance.

The current application form, which has been used by the City since 2018, requires applicants to provide information about the business, proposed entertainment, the hours of intended operation, and, if the applicant is a tenant, to obtain the signature of the property owner.

Entertainment permits for the cities of Santa Cruz, Watsonville, and Scotts Valley all require the property owner’s consent.

This year, the Capitola Police Department has issued nine entertainment permits. The Department issued six permits in 2019, ten in 2020, seven in 2021, and twelve in 2022.

Discussion: On October 21, 2021, Michelle and Lasalle Strong applied for a new Minor Entertainment Permit for Capitola Bar and Grill, located at 231 Esplanade, #102, that would be effective for the remaining few months in 2021. 231 Esplanade is a mixed-use residential/business structure. The building is comprised of residential apartments, a coffee shop, and two restaurants (Margaritaville and Capitola Bar and Grill). The application did not include the property owner’s signature. 263
Item 7 A.

The Strongs had recently acquired the business, and their ABC license was pending due to the transfer of ownership. The type of ABC license issued to the applicant is important in the application process because ABC can add restrictions and specific requirements based on the type of license. Capitola Bar and Grill has a Type 47 – On Sale General Eating Place. The City requires a current ABC license and fire inspection before issuing entertainment permits. The applicant received their ABC license on October 29, 2021, and completed the required fire inspection on November 10, 2021.

The City issued the permit on November 16, 2021, for the remaining six weeks of 2021 without the property owner’s signature, which is inconsistent with the City’s entertainment permit application and past practice.

On January 3, 2022, the Strongs applied to renew their Minor entertainment permit for 2022. The Police Department accepted the Strongs’ previously submitted ABC license and recent fire inspection and began processing their application. The 2022 application did not include the property owner's signature.

Because the Strongs intended to offer more than incidental entertainment, staff recommended they apply for a “Regular” entertainment permit. The Strongs agreed and staff issued Capitola Bar and Grill a 2022 Regular Entertainment Permit on January 27, 2022.

During the summer of 2022, the property owner, Steve Yates, contacted the Police Department and expressed concerns about excessive noise levels and live music being played at Capitola Bar and Grill.

Staff explained that the City had issued Capitola Bar and Grill a Regular Entertainment Permit for 2022.

Mr. Yates explained that he had not signed the application form.

Staff then reviewed the application materials for Capitola Bar and Grill and determined that the application had not been signed by the property owner and the permit had been issued in error.

In December 2022, Capitola Bar and Grill applied for a 2023 General Entertainment Permit (Attachment 1). The application lists Steve Yates as the property owner with an email address but does not include Mr. Yates’s signature.

As the application did not include the required signature, staff determined the application was incomplete.

Staff notified the Strongs of this issue and met with the Strongs on December 23, 2022, to discuss options. At the meeting, staff explained that the application was incomplete, and that their prior permits had been issued in error. Staff offered to reach out to the property owner to recommend mediation. The Strongs indicated they were interested in mediation and, following that meeting, staff reached out to Mr.

Yates to recommend a mediation process.

On January 31, 2023, staff sent the Final Notice of Decision to the Strongs, denying their application for a 2023 Entertainment Permit (Attachment 2). On February 21, 2023, the Strongs appealed the denial (Attachment 3).

Following receipt of the appeal, staff reviewed all previously issued entertainment permits on file to determine if other applications lacked a property owner's signature. Of 21 applications reviewed, 18 included the property owner's signature. The three applications that did not include the property owner's signature were the Capitola Bar and Grill applications for 2021 and 2022, and the Wharf House Restaurant application for 2022. The City of Capitola is the property owner of the Wharf House, and staff had previously determined that the issuance of the Wharf House permit by the City constitutes property owner consent.

Appellant’s arguments in the appeal are below, with staff’s response in bold.

Appellant states, “[t]he City Manager’s letter says that he canceled the Permit (or denied the application for renewal, it comes to the same thing) because it did not include the landlord Steve Yates’ consent on the application form that the City Manager himself made up. But under the Municipal Code section that he cites, his power to develop the form is limited. One legal question for you to decide is if that requirement is properly on the form or not.” Appellant further notes that “CMC 5.24.080 gives the City Manager limited power to develop the application form. Specifically, it limits the form to ‘any nonprivileged information reasonably related to the concerns expressed in Section 5.24.005.’” 264
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Section 5.24.080 authorizes the City Manager to “develop application forms pertinent to this chapter.” It does not limit the questions the City Manager may include on the form. Section

5.24.040.C allows the City Manager to issue permits upon making certain findings, including that no significant number of non-patrons will be disturbed by the entertainment. Similarly, Section

5.24.040.D allows the City Manager to condition the permit to assure non-disturbance by including certain permit-specific conditions. These provisions underscore the City Manager’s authority in administering Chapter 5.24. In addition, if the requirement for the property owner’s signature did not appear on every application form, Section 5.24.040.D authorizes the City Manager to impose it as a condition on any specific permit.

The requirement for the property owner’s signature is related to the concerns expressed in Section 5.24.005, which states that, in adopting the Chapter, the Council found that “[e]ntertainment often produces noise which is obtrusive to persons not patronizing the business or activity which produces the noise.” Because property owners often have more than one tenant in a building, ensuring the property owner is supportive of the permit request helps protect the property owner’s other tenants in the same building. Finally, any complaints about noise from the business could affect the property owner in multiple ways, including impacting the property owner’s ability to lease the premises (or nearby properties) or exposing the property owner to complaints about the noise. Lastly, requiring the property owner’s signature helps ensure the City is not authorizing entertainment on the property when such uses are not permitted in the lease between the tenant and property owner.

Second, the appellant states that “the City should not cancel that permit unless there is a good reason such as excessive noise complaints.”
The City did not revoke the previously issued entertainment permits. The City denied the applicant’s 2023 entertainment permit because it lacked the property owner’s signature granting permission to use their property for entertainment purposes. There is no indication in Chapter

5.24 that the City is only permitted to revoke, or not issue a permit, for a specific reason. Instead, Section 5.24.050 states that a permit is valid for no more than one year from the date of issuance and that the issuance of a permit “does not establish a vested right to a renewal of the permit.” It also authorizes the City to cancel any permit for not complying with the requirements in the permit. In this case, the City is not canceling or revoking a permit for failure to comply with the permit requirements; it is simply not issuing a 2023 entertainment permit because the application lacks the landowner’s signature.

Third, appellant states that “the landlord is legally bound by his agreements to allow Entertainment.” The City is not a party to the lease between the landlord and the appellant. Staff thus cannot comment on the provisions in the lease. The City is charged with administering and enforcing its own Municipal Code, which is what it is doing here.

Finally, the appellant states that, because the City has twice issued the permit in the past, without the landlord’s signature, it should reissue it now.

Staff acknowledges its error in previously issuing entertainment permits to Capitola Bar and Grill without the landlord's signature. However, the remedy for that error is not to grant another permit for 2023, especially given that other businesses in the City have been required to provide the property owner’s signature to obtain an entertainment permit. Based on staff’s review of prior entertainment permits that remain on file pursuant to the City’s record retention schedule, and staff’s experience administering the entertainment permit program, there has been no other example of a business obtaining an entertainment permit without the property owner’s consent over the last decade.

Alternative Actions: Council may grant the appeal or modify staff’s determination. In either case, staff suggests that it return at a subsequent meeting with a resolution consistent with Council direction.

Fiscal Impact: None.
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Attachments:

1. 2023 Capitola Bar and Grill Entertainment Permit Application

2. Denial Letter from the City

3. Appeal Letter from the Capitola Bar and Grill

4. Resolution

5. Correspondence
Report Prepared By: Andrew Dally, Police Chief
Reviewed By: Julia Moss, City Clerk; Samantha Zutler, City Attorney Approved By: Jamie Goldstein, City Manager
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4867-4826-8380 v1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CAPITOLA DENYING AN APPEAL OF THE CITY
MANAGER’S DECISION TO DENY AN APPLICATION FOR A
2023 REGULAR ENTERTAINMENT PERMIT FOR

CAPITOLA BAR AND GRILL
WHEREAS, on December 12, 2022, applicants Michelle and Lasalle Strong applied for a 2023 General Entertainment Permit pursuant to Capitola Municipal Code Section 5.24.020; and WHEREAS, Capitola Municipal Code Section 5.24.080 authorizes the City Manager to develop application forms for entertainment permits that are pertinent to Chapter 5.24; and WHEREAS, Capitola Municipal Code Section 5.24.040D authorizes the City Manager to condition the permit to assure non-disturbance; and
WHEREAS, the application form for entertainment permits includes a requirement for the property owner’s signature; and
WHEREAS, Capitola Municipal Code Section 5.24.005A states that, in adopting the Chapter, the City Council found that “[e]ntertainment often produces noise which is obtrusive to persons not patronizing the business or activity which produces the noise.”; and WHEREAS, because property owners often have more than one tenant in a building, ensuring the property owner is supportive of the permit request helps protect the property owner’s other tenants in the same building from noise or other nuisance issues; and WHEREAS, any complaints about noise from a tenant could affect the property owner in multiple ways, including impacting the property owner’s ability to lease the premises (or nearby properties) in the future or exposing the property owner to complaints about the noise; and WHEREAS, requiring the property owner’s signature helps ensure the City is not authorizing entertainment on the property when such uses are not authorized in the lease between the tenant and property owner; and
WHEREAS, the December 12, 2022 application submitted by appellants did not include the landlord’s signature; and
WHEREAS, because the application did not include the required signature, the City Manager denied the application; and
WHEREAS, on February 21, 2023 the Applicant submitted a timely appeal (“Appeal”) of the City Manager’s denial; and
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4867-4826-8380 v1
WHEREAS, the City Council of the City of Capitola held a duly noticed public hearing on June 22, 2023, at which time it considered the Appeal, including all oral and documentary evidence presented.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Capitola as follows:

A. The above recitals are true and correct and material to this Resolution.

B. The City Council affirms the authority of the City Manager to develop an application form for an entertainment permit, and finds that the application form used here was appropriate and consistent with Capitola Municipal Code Chapter 5.24.

C. The City Council upholds the decision of the City Manager to deny the application, and denies the Appeal.

D. The City Council’s action to deny this Appeal is not subject to the California Environmental Quality Act (CEQA) because it is an administrative activity and thus not a “project” as defined by CEQA. Even if the action were considered a project under CEQA, CEQA does not apply to projects which a public agency rejects or approves (CEQA Guidelines Section 15270.)
ADOPTED by the City Council of the City of Capitola, California, at a regular meeting thereof this 13th day of April, 2023 by the following vote:

AYES:

NAYS:

ABSTAIN:

ABSENT:
____________________________________
MAYOR
ATTEST:
__________________________________
CLERK
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1 Moss, Julia
From: james frederickson <[email protected]>
Sent: Wednesday, March 22, 2023 9:06 AM
To: City Council; Keiser, Marguax; [email protected]; Brooks, Yvette; Clarke, Joe; [email protected]; [email protected] Subject: I support Capitola Bar & Grill
Follow Up Flag: Follow up
Flag Status: Flagged
I am writing this letter in support of Capitola Bar & Grill. I request the City Council of Capitola, CA approve the Entertainment Permit for Capitola Bar & Grill.

We have been coming to the Capitola Esplanade and wharf for enjoyment and entertainment for years. As near as I can tell, the area is the lifeblood of the tourist industry for the entire greater Santa Cruz area. People come from miles around, even from around the world, to stay there and enjoy what Capitola has to offer.

We endlessly support the local economy and local talent. The storms have done enough damage to both, don't you think? Other establishments on the Esplanade have rebuilt and are offering live entertainment - due, in part, by donations from us and others like us who felt the pain of losing the vibrancy of the area.

There is absolutely no logic in denying the Capitola Bar and Grill the permit for live entertainment that they and all the others have put to good use. They have all respected the privilege and have NEVER abused their right.

It is clearly un-American to deny them, and us, the rights that others are enjoying.

Please do the right thing with your vote, your voice, and restore to the Capitola Bar and Grill and us, your constituents, the access to the positive enjoyment of Capitola.

Vote YES to the entertainment permit.

James Frederickson
Sharon D'alessio
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1 Moss, Julia
From: Tamra Loomis <[email protected]>
Sent: Wednesday, March 22, 2023 9:57 AM
To: City Council; Keiser, Marguax; [email protected]; Brooks, Yvette; Clarke, Joe; [email protected]; [email protected] Subject: I support Capitola Bar & Grill
I am writing this letter in support of Capitola Bar & Grill. I request the City Council of Capitola, CA approve the Entertainment Permit for Capitola Bar & Grill.

This is a great restaurant and the music makes it even better. Greta owners, great staff, great food and amazing music.

Pulls it all together for a great experience. Makes me keep coming back to Capitola.

Thank you
Tamra Loomis
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1 Moss, Julia
From: madeline thechiavettas.com <[email protected]> Sent: Friday, March 24, 2023 7:45 AM
To: City Council; Keiser, Marguax; [email protected]; Brooks, Yvette; Clarke, Joe; [email protected]; [email protected] Subject: I support Capitola Bar & Grill
I am writing this letter in support of Capitola Bar & Grill. I request the City Council of Capitola, CA approve the Entertainment Permit for Capitola Bar & Grill.

Madeline Chiavetta
The Chiavettas
Let our Family Help Yours
Luxury Property Specialist
International President’s Premier
Top 1% Society of Excellence
#10 Small Team in the USA
[email protected]
408-506-5393
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1 Moss, Julia
From: Steven Henderson <[email protected]>
Sent: Saturday, March 25, 2023 12:08 PM
To: City Council; Keiser, Marguax; [email protected]; Brooks, Yvette; Clarke, Joe; [email protected]; [email protected] Subject: Support for live music at Capitola Bar and Grill Dear City Council Member,
My name is Steve Henderson and lived on Prospect Avenue Capitola for 14 years, I now live just outside of Capitola city limits on Thompson Ave.

This email is in support of Capitola Bar and Grills appeal, that they should be granted a live music permit.

I regularly attend live music events in Capitola, at the Wharfhouse, Sand Bar, Paradise Grill, Cork and Fork, and Capitola Bar & Grill.

Wharfhouse is closed for the foreseeable future, as is, Sandbar and other village businesses. Paradise no longer hosts live bands.

To reduce the number of venues by even more will negatively impact the number of visitors to the village who specifically come for the entertainment.

The financial impact to the village economy, will not only effect Capitola Bar and Grill, but all other businesses as they have a synergistic relationship, each benefiting the others by cross traffic.

Capitola Bar and Grill should have their entertainment permit renewed for the overall benefit of the village community.

If noise is the problem, put reasonable restrictions in place, such as limiting days, time of day, or decibel limitations.

Most people don't like their music too loud anyway, resorting to wearing earplugs at venues where the volume it too high.

Thanks for your attention.

Steve Henderson
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1 Moss, Julia
From: Mike Craig <[email protected]>
Sent: Sunday, March 26, 2023 12:27 PM
To: City Council
Subject: Music permit for Capitola Bar & Grill
I am writing in support of the petition for live music at Capitola Bar & Grill.

As you know, many businesses have tried to be successful at their location, and they have not been able to sustain their business.

Given the storm related damage in the Village, we need more reasons to bring people down to the Village.

Sal and Michelle have worked hard to build a great venue - I am a proud supporter of theirs.

Please give their request the favorable decision it deserves.

Thanks for your consideration.

Regards,
Mike Craig
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1 Moss, Julia
From: Julie Monet <[email protected]>
Sent: Sunday, March 26, 2023 12:29 PM
To: Moss, Julia
Subject: I support Capitola Bar & Grill
I am writing this letter in support of Capitola Bar & Grill. I request the City Council of Capitola, CA approve the Entertainment Permit for Capitola Bar & Grill.

I am a small business owner in the Village, Monet Salon. Nobody has ever made the location of Capitola Bar and Grill successful.LaSalle and Michelle are a great asset to our village! Best Regards,
Julie Monet
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1 Moss, Julia
From: John Michael <[email protected]>
Sent: Monday, March 27, 2023 2:36 PM
To: City Council
Subject: John Michael Support Music
Attachments: John Michael Letter of Recommendation.docx My name is John Michael, from the John Michael Band. I am contacting the city council in support of music in Capitola.

Attached is a letter by me for recommendation. Please read!! John Michael
johnmichaelband.com
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3/27/2023
To: Capitola City Council,
My name is John Michael, local resident and
vocalist for the band John Michael Band. I am
writing this letter, requesting the Council to grant
a permit for The Capitola Bar and Grill, so that
they can continue to present live music that many
have enjoyed.

Please consider my recommendation for The
Capitola Bar and Grill to continue presenting live
music at their establishment.

Sincerely,
John Michael
Johnmichaelband.com

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1 Moss, Julia
From: Flávia Oliveira <[email protected]>
Sent: Tuesday, March 28, 2023 2:52 PM
To: City Council; Keiser, Marguax; [email protected]; Brooks, Yvette; Clarke, Joe; [email protected]; [email protected] Subject: I support Capitola Bar & Grill
I am writing this letter in support of Capitola Bar & Grill. I request the City Council of Capitola, CA approve the Entertainment Permit for Capitola Bar & Grill.

Flávia Oliveira
Sent from my iPhone
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1 Moss, Julia
From: George Zaferes <[email protected]>
Sent: Wednesday, March 29, 2023 2:00 PM
To: City Council; Keiser, Marguax; [email protected]; Brooks, Yvette; Clarke, Joe Subject: April 13 Board Meeting: RE: Capitola Bar and Grill Live Music Permit Follow Up Flag: Follow up
Flag Status: Flagged
Greetings Capitola City Council:

Thank you for taking the time to read my email in SUPPORT of the LIVE MUSIC PERMIT For the Capitola Bar and Grill. As a musician and a LONG TIME patron of the businesses in Capitola Village . I support the CBG request for this permit; This is one of the more VISIBLE venues in Capitola Village and it attracts patrons(tourists) by its location AND the MUSIC it offers in the Village.

The accusations of the LANDLORD and the Strong's persistent, yet RESPECTFUL, exchanges will be judged by you April 13.

PLEASE use your combined experience and WISDOM
to grant this permit..for the Strong's, the musicians, the patrons, the live music enjoying community, of DANCERS and listeners and RESIDENTS of Capitola.

Respectfully Yours,
George Zaferes
831-251-0969
Aptos, CA
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1 Moss, Julia
From: Alison <[email protected]>
Sent: Wednesday, March 29, 2023 2:00 PM
To: [email protected]; City Council; [email protected]; [email protected]
Cc: Keiser, Marguax; Brooks, Yvette; Clarke, Joe
Subject: I support Capitola Bar and Grill
Follow Up Flag: Follow up
Flag Status: Flagged
I am writing this letter in support of Capitola Bar & Grill. I request the City Council of Capitola, CA approve the Entertainment Permit for Capitola Bar & Grill. Please support a locally owned business! As a long time local I enjoy going to this restaurant!!
Thanks,
Alison McClure, owner of Ohana Wealth Management
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1 Moss, Julia
From: Ed Vyeda <[email protected]>
Sent: Thursday, March 30, 2023 10:58 AM
To: City Council
Subject: I support Capitola Bar & Grill
Follow Up Flag: Follow up
Flag Status: Flagged
I am writing this letter in support of Capitola Bar & Grill. I request the City Council of Capitola, CA approve the Entertainment Permit for Capitola Bar & Grill.

Ed Vyeda
Soquel
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1 Moss, Julia
From: Ryan Yates <[email protected]>
Sent: Sunday, April 2, 2023 11:03 AM
To: Dally, Andrew ([email protected]); Ryan, Sarah ([email protected]); Dally, Andrew ([email protected]); Moss, Julia
Subject: [PDF] Capitola Bar and Grill
Attachments: Chapter 5.24 ENTERTAINMENT PERMITS.pdf; Facebook.png; License Details Alcoholic Beverage Control.pdf; Matt Hereford Email.pdf
Good Day Chief Dally,
I hesitate to write in on this matter however feel compeled to do so given the circumstances. I have attemted to make it a personal point to not be bothersome to you or your force unnessisarily. However, I wanted to give you notice in advance on some issues to hopefully not have problems in the future.

In a very blatent and obvious retalitory manner Capitola Bar and Grill increased the volume and bass of their music in the bar, directly below the apartment. It starts between 7:30 am and goes until roughly between 10:30 and 11pm. There appears to be a new system installed as of the January storms as it was never this way previously. I bring this to your attention not to be petty. If the music was incidental I would of course have no issues with hearing it as I only want the best for the patrons in the village. I am aware living here comes with noise so I assure you I am not being unreasonable. The levels are obvious, deliberete and loud and intrusive enough that no person could resonably tolerate it for an extended period of time.

Additionally, Capitola Bar and Grill has begun promoting live music again starting wednesday the 5th, this week. Advertisement attached.

Both of these matters are concerning given.
 CBG has no entertainment permit from the city.
 Capitola code 5.24.010 describes entertainment as: (copy attached) A. " a performance by live entertainers for the purpose of entertaining the partons of a business; or B. "Playing recorded music, whether with or without video, for the specific purpose of entertaining the patrons, invitees or visiors of a business, commercial establishment or meeting facility" 305
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2  Capitola Bar and Grill has specific restrictions on their liquor license with regard to noise stating: ( copy attached )
"Entertainment provided shall not be audible beyond the area under the control of the licensee" These are matters of the law and I thought it best to bring it to the attention of yourself and your team. I have personally seen entertainers playing an acoustic guitar on the sidewalk asked to leave by the police for playing music without a permit, so I don't really understand the tolerance for the abysmal behavior of Capitola Bar and Grill.

One last note I wanted to make you aware of. Due to Michelle and Laslalle Strongs publications of my personal phone number and name on social media and website, I have had an unsolicited outreach of ex-employee's of thiers offering to help speak up about the actions and behavior of the owner and her husband, Michelle and Lasalle Strong. One in particular is their previous general manager Matt Hereford. I have attached a letter from him simply regarding the sound and previous complaints received from other residents and tourists. In addition, he is insisting on not only speaking at the hearing, but writing a full account of the retaliation and harassemnt he witnessed towards me, from Lasalle Strong, during his time as the general manager of Capitola Bar and Grill. Given what Matt has told me, any form of mobilization or embolded behavior with impunity is especially concerning.

Thank you for your time and attention to this matter.

Best,
Ryan A. Yates
831.247.7604
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1 Moss, Julia
From: Jefferson Hancock <[email protected]>
Sent: Wednesday, April 5, 2023 8:44 PM
To: City Council; Keiser, Marguax; [email protected]; Brooks, Yvette; Clarke, Joe; Pedersen, Alexander; [email protected]
Subject: I support Capitola Bar & Grill
I am writing this letter in support of Capitola Bar & Grill. I request the City Council of Capitola, CA approve the Entertainment Permit for Capitola Bar & Grill.

Capitola needs live music and musicians like me love having a place to play like Capitola Bar and Grill. Patrons dance, sing, eat, drink, and love Capitola. If live music continues here, they will spend money -- and time -- in Capitola.

This town has something rare in its appreciation for live music. Don't lose it. Approve the live music permit for Capitola Bar and Grill.
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From: Ryan Yates <[email protected]>
Sent: Thursday, April 6, 2023 10:05 AM
To: Keiser, Marguax; Brown, Kristen; Brooks, Yvette; Clarke, Joe; City Council Cc: Gonzalez, Francisco@ABC; Moss, Julia
Subject: [PDF] Support for the City of Capitola's DENIAL of appeal by Capitola Bar and Grill for live music
Attachments: City Council Letter.pdf
Follow Up Flag: Follow up
Flag Status: Flagged
Dear Honorable City Council Members and Madam Mayor,
I am a concerned citizen of this community, writing to express my support for the City of Capitola's denial of the appeal made by Capitola Bar and Grill to have live music at their establishment. Please find attached a letter that provides further details on my concerns regarding this issue for your upcoming hearing.

Thank you,
Ryan A. Yates
831.247.7604
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Dear Honorable City Council Members and Madam Mayor,
I am Ryan Yates, a concerned citizen of this community, writing to express my support for the City of Capitola's denial of the appeal made by Capitola Bar and Grill to have live music at their establishment. I know that it may be easy to conclude that I am simply in support of their denial on my own behalf. I assure you that is not the case. It is true that I do not want horrific cover bands blasting into my home at 80 100 decibels, however there are far more concerning matters to consider.

The owner of Capitola Bar and Grill has squandered the unique opportunity of having a beautiful restaurant on the beach by alienating 99% of locals with loud and invasive music, which forces unwilling families, children, patrons of other businesses, and community members to bear an incredibly intrusive experience that they do not want, nor did they ask to be apart of. The negative impact of the bar's amplified music is evident in the experiences of individuals who have dined there, such as finding human fecal matter on the restroom floor and walls, management allowing weed to be smoked on the deck during dinner service or children experiencing overly intoxicated patrons smoking cigarettes on the street corner while they walk home from Jr. Guards. (yelp) In addition to the negative impact on the community, the owner and her husband have exhibited deliberate and intentional tactics to attempt to harass, annoy, and intimidate me personally into submission or remove me from my home. Matt Hereford, their previous general manager has quoted; Lasalle is an incredibly mean spirited and two-faced individual. He would insist the band spread out as wide as possible and press the subwoofer and speaker stacks up against the column in the dining room that runs up through the bedroom of the apartment. Matt quoted Lasalle saying: were gonna rock the house for that motherfucker. Matt goes on to state. So many people complained. I was instructed to NEVER turn down the music but offer anyone who complained 2 free drinks any time they wanted.
During this time they were having bands 6 nights a week. 2 of which were horrific karaoke blasted at full volume. How is this a restaurant? I have also recently discovered that Lasalle Strong, who exhibits such behavior, is not an owner of Capitola Bar and Grill and has no standing with Capitola Strong, Inc., nor is he on the liquor license. Lasalle and Michelle Strong or Mishelleena Mendez, or what every she is calling herself to people here in Capitola, do not care about anyone or anything but themselves.

Secretary of State documents (available to anyone) attached along with further unsolicited statements in writing from Matt Hereford regarding complaints.

Additionally, the ABC (alcoholic beverage control for the state of California) has imposed specific restrictions on Capitola Bar and Grills license to sell alcohol. This one of many restrictions on them that reads verbatim: Entertainment provided shall not be audible beyond the area under the control of the licensee. Meaning. A person walking down the sidewalk should not hear their music per the liquor license. Full Stop.

Liquor license (available to anyone) attached.

Thus, in support of the denial to their music permit I urge you to consider the abysmal content of character of the owner and her husband and what their idea of music in the village really means. I ask you to consider the unique restrictions on Capitola Bar and Grill's liquor license by the state and the specific literature from the city regarding entertainment and its impact on non-patrons.

Please consider asking the following questions as you deliberate: Why is the ABC imposing such a specific restriction on their ability to sell alcohol? Why does the City of Capitola have such specific literature regarding entertainment, as well as the impact of said entertainment on non-patrons? Why does the lease in the building, the city of Capitola, the county of Santa Cruz, and the State of California have laws and regulations regarding quiet enjoyment of others? Why is the person who claims to be the owner nowhere to be found on any of the business documentation regarding Capitola Bar and Grill, or any of their other businesses.

Thank you for your attention and I look forward to standing before you in person on this matter.

Sincerely,
Ryan Yates
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California Secretary of State
Electronic Filing
Corporation - Statement of Information
Entity Name:

Entity (File) Number:

File Date:

Entity Type:

Jurisdiction:

Detailed Filing Information
Entity Name:

Business Addresses:

Street Address of Principal
Office in California:

Mailing Address:

Street Address of Principal
Executive Office:

Officers:

Chief Executive Officer:
b. Secretary:

Use bizfile.sos.ca.gov for online filings, searches, business records, and resources. 231 Esplanade #102
Capitola, California 95010
United States of America
231 Esplanade #102
Capitola, California 95010
United States of America
231 Esplanade #102
Capitola, California 95010
United States of America
Michelle Strong
231 Esplanade #102
Capitola, California 95010
United States of America
Michelle Strong
231 Esplanade #102
Capitola, California 95010
United States of America
C4768976

CALIFORNIA
01/13/2022
CAPITOLA STRONG INC.

CAPITOLA STRONG INC.

H110924 H110924
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California Secretary of State
Electronic Filing
Director:

Number of Vacancies on the Board of
Directors:

Service of Process:

Type of Business:

Electronic Signature:

Use bizfile.sos.ca.gov for online filings, searches, business records, and resources.

Michelle Strong
0 Michelle Strong
231 Esplanade #102
Capitola, California 95010
United States of America
Restaurant
Michelle Strong
231 Esplanade #102
Capitola, California 95010
United States of America
Michelle Strong
231 Esplanade #102
Capitola, California 95010
United States of America
No Officer or Director of this Corporation has an outstanding final judgment issued by the Division of Labor Standards Enforcement or a court of law, for which no appeal therefrom is pending, for the violation of any wage order or provision of the Labor Code. H110924 326
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1 Moss, Julia
From: [email protected]
Sent: Thursday, April 6, 2023 5:27 PM
To: City Council; Keiser, Marguax; [email protected]; Brooks, Yvette; Clarke, Joe; Pedersen, Alexander; [email protected]
Subject: Entertainment permit for Capitola Bar and Grill Dear Council Members,
No doubt you have received many letters and other communications about the importance of the entertainment permit. The devastation of the pandemic lockdown and the recent storm have battered local businesses and our community of workers whose livelihoods were disrupted. For those reasons, it is important for our business to quickly rebuild for the sake of the businesses, their staff, and the community which benefits from their businesses.

However, there is another issue that I believe is equally important. We have had a heavy blow to the spirit and soul of our community. People feel battered. Three long years of our lives have been disrupted by the lockdown and then spiked by the destruction of our favorite places on the Esplanade and wharf.

We need to feel good again. We need to feel hope. We need to be able to come together to listen to music and to dance. We need to rebuild our humanity and the bonds that tie us together in the community.

Now is not the time to quibble over bureaucratic details. We need bold leadership to rebuild our community. For all of our benefit, please issue the permit so that we come together, heal, and rebuild our community.

Respectfully,
Mark McWhinney
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1 Moss, Julia
From: Roberta Marquis <[email protected]>
Sent: Friday, April 7, 2023 9:46 AM
To: City Council; Keiser, Marguax; [email protected] Subject: Capitola Bar and Grill Live Music Permit Please Attachments: capitola letter.docx
Sent from Mail for Windows
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April 6th2023
To: The City Council of Capitola
Please allow Capitola Bar and Grill to have music again! We miss music in Capitola! I moved here because of the fantasƟc music community here in Capitola. Now due to the storms, this is a no music community, there is only one wonderful place to go and dance with friends, Cork and Fork. With our wonderful Sand Bar rebuilding there is no place to enjoy live music with room to dance and enjoy a variety of food and cocktails.

Capitola Bar and Grill always brought in wonderful musicians. We would dance in that beauƟful view with so much space, and delight our souls. It was wonderful to walk into the village and walk by and hear music from their door step. Bringing life to the Village. I also loved that they had music early evening. Having a variety of music venues keeps people in the village spending money on food at other places, plus I always seem to leave with a giŌ from my favorite giŌ stores or clothing.

Example of what is happening. Last Sunday friends and I finished a pracƟce and wanted to meet in Capitola for music. Cork and Fork being the only music stopped at 5:30. We missed it.

I walked to Capitola Bar and Grill with the sadness of no music…. Looked around, no music anywhere. Texted my group, what to do. We all decided to go other places in Santa Cruz. I live in Aptos so I went to watch sunset at Seabright and went home. I normally would go have a bite at Britannia or Thai, then go dance and work off my meal, enjoy friends and leave Capitola with joy in my heart. Now I leave with such sadness.

I am 60, female, a Boat Captain in Moss Landing who thrives on the community of dance and friendships we had in Capitola. I am missing this very much in my life! Please give Capitola Bar and Grill their Permit to have live music back and support our local musicians and the Village.

Sincerely, with all my heart
Roberta Marquis
[email protected]
831-600-6990
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1 Moss, Julia
From: madeline adamczeski <[email protected]>
Sent: Friday, April 7, 2023 11:15 AM
To: City Council
Subject: Capitola Bar & Grill’s Live Music
To: City Council Members
Mayor - Margaux Keiser
Vice Mayor - Kristen Brown
Council Member - Yvette Brooks
Council Member - Joe Clarke
From: Madeline Adamczeski
Re:Capitola Bar & Grill (CBG)
Date: 4/7/2023
Dear Member(s) of the City Council,
I’m both surprised and dismayed to learn that CBG’s permit to allow live music has not yet been approved in spite of multiple efforts by the business owners/leasers. Family, friends, and I are big music enthusiasts and fans of local musicians hosted local establishments. Specifically, we are loyal patrons to CBG employers and employees as well as their musicians. Can you kindly help me/us understand why live music at CBG has been discontinued & has been allowed to lapse despite a staunch fan base comprised of current business owners and their clientele? In the meantime, please do not hesitate to offer suggestions on how I/we can help bring back local musicians so that CBG can continue hosting live music in this jewel of a venue.

Thank you.

Respectfully,
Madeline Adamczeski
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1 Moss, Julia
From: Michelle Strong <[email protected]>
Sent: Friday, April 7, 2023 11:58 AM
To: City Council; Keiser, Marguax; [email protected]; Brooks, Yvette; Clarke, Joe; Pedersen, Alexander; [email protected]; Moss, Julia Subject: [PDF] I support Capitola Bar & Grill
Attachments: support-live-music-at-capitola-bar-amp-grill_040723.pdf Dear Mayor and City Councilmembers:

This is additional information for your consideration of our appeal. Attached petition signatures to print.

Our operation hours are Monday through Thursday 8:00am to 9:00pm, Saturday and Sunday 8:00am to 10:00pm. Total hours per week average 93 hours. Of the 93 hours of business, our music program at most was 9 hours per week, that is less than 10%. Selling food is our primary focus of business and we serve food until closing.

It’s not our goal to be a nightclub. We were very clear in our lease application that we want to join the vibrant Village and offer live music. Our restaurant is in the “Mixed Use Village” Zone. There should be an expectation of daytime noise while living in a mixed-use zone.

Calls for service since our occupancy have decreased along with being less severe violations. Among the calls of 2022 and 2023 the calls are unfounded noise complaints or normal business activity of the tourist area.

The umbrella noise ordinance for the City of Capitola is 10:00pm. Even the residential units in our building can have live entertainment until 10:00 pm. The coffee shop in the building has live music.

We offer entertainment during our operations hours, for which we close by 10:00pm. Municipal Code 5.24.005 Entertainment Permit states the permit is to regulate “night time noise”. Several times it states, “Infringe upon the peace and quiet and nightly sleep of non patrons”, “open after 9:00pm,” and “an afterhours draw”.

As business owners, we have made many alterations to assist in noise control, however the landlord has made no efforts to meet for a compromise nor has he made any efforts to add soundproofing for his son’s unit. The unit above our bar area not only has noise from the surrounding traffic from the Village; there are several exhaust systems for the two restaurant’s kitchen hoods, and a Verizon cell tower that has a generator and motor running 24 hours per day. The City of Capitola itself offers live music in the open outdoor Esplanade Park Bandstand. There are several neighboring 335
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2 businesses that have some form of entertainment or amplified music. Through the street traffic, the pedestrians, and the normal sounds of a restaurant, we should not have an expectation to keep all sounds inside our building. The landlord is responsible for the walls, roof and membrane of the building. It would fall on his burden to provide the building with proper insulation.

Out of the mixed-use building there are three restaurants and three residentials units. The landlord’s agent, Steve Yates, has concern of the “tenants” of the building. However out of the six commercial and residential units, we occupy two of the spaces out of six, that’s one-third of the buildings occupancy. As we occupy the restaurant and an apartment in the building. Of the two other restaurants, the Coffee shop offers live music, and has a piano in its dining area, while Margaritaville does offer background music in the dining and the patio. Among the neighboring businesses Paradise Beach Grille, less than 10 feet from our building, offers live entertainment, which from their permit, may go later than 10:00pm. Directly across the street from our restaurant, The Mercantile has an entertainment permit, with events that are held outdoors. This is what the Village is made off and what draws our customers. Visitors and locals alike come for breakfast and stay all day, finding new gems that have become their favorites, shops, eats, and music.

We are not asking you to rewrite the municipal code, nor are we asking for anything out of your reach. The City Manager’s form has a place for the landlord’s signature or consent; however the landlord has already given consent by signing our lease and agreeing that we would offer live music. The landlord cannot now add words to the lease as “sit-down only”, nor can it exclude music after signing. The time for the landlord to exclude live music was before signing, as it did when it excluded the use of a "Mexican restaurant" in the lease.

Per our lease, “Section 1.09. Permitted Use/Exclusive Use. Tenant shall use the Premises for a restaurant, as defined in the City of Capitola use permit existing at the time of execution of this Lease, and for no other purpose.

Notwithstanding, in no event shall the use include a Mexican food type restaurant.”

Attached is a list I received of the Entertainment Permits issued in 2021. Out of the 43 permits issued, all 43 would fall under the “Restaurant” as permitted use. In our appeal we are asking to receive a permit in absence of the landlord’s signature, as has been the City's typical procedure, as only 19 of the 43 have an actual application on file with the landlord's signature.

The landlord has not presented any support for loss; however, we have a significant loss of revenue, along with the loss of clientele, and staff. Our staff highly relies on tips, and through the reduction of sales, we are not able to retain valuable staff, especially in the slow season.

My husband, Lasalle Strong, and I have three restaurants. We are a part of this community, and we do our part to make the community a functioning place. By owning two businesses in Santa Cruz County, we employ over 40 residents, not to mention the many artists and musicians that have received income from playing at our establishments. Our business not only provides sales tax for the county, through our commercial lease we are responsible for paying the property and sewage taxes for the building, as a split cost with the other two commercial tenants. 336
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3 We own a business in a tourist-driven community. Restaurants are an anchor for the retail and rental properties. This is not a zoning issue that should require the landlord’s consent. The multi-use building has obstacles for both the residential and the commercial tenants. Lasalle and I have compromised enough by closing early, scheduling entertainment to end by 10:00 pm.

The residential landlords of the Multi-Use Village know what our Village entails, being in the Village adds value to their rental income. They should not be allowed to interfere with that mixed use in the Village, or impose on the businesses there that provide entertainment.

This location has changed hands numerous times. The past six years, we are the fourth business owners. We are proudly coming upon our two year anniversary, surviving two winters in a tourist town is not an easy feat. Consequently, the most unfortunate obstacle for our business has been the lack of support from our landlord.

I understand this matter has taken a lot of thought and may have caused some discomfort for those that are aware of Steve Yates’ rath. However instead of looking at the negative repercussions, we ask that you look at, “How can the City Council of Capitola, help this family owned small business continue in their success?” We are a BLACK owned, MEXICAN owned, WOMAN owned business, why is the landlord and his son “intimidated” by us?
Yours very truly,
LaSalle and Michelle Strong
Proprietors, Capitola Bar & Grill
Please attach the petition signatures attached.
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1 Moss, Julia
From: Debra de Roos <[email protected]>
Sent: Friday, April 7, 2023 12:06 PM
To: City Council; Keiser, Marguax; [email protected]; Brooks, Yvette; Clarke, Joe; Pedersen, Alexander; [email protected]
Subject: I support Capitola Bar & Grill
I am writing this letter in support of Capitola Bar & Grill. I request the City Council of Capitola, CA approve the Entertainment Permit for Capitola Bar & Grill.

Sincerely,
Debbie de Roos. 805-259-6456
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1 Moss, Julia
From: Michelle Strong <[email protected]>
Sent: Friday, April 7, 2023 12:15 PM
To: City Council; Keiser, Marguax; [email protected]; Brooks, Yvette; Clarke, Joe; Pedersen, Alexander; [email protected]; Moss, Julia Subject: [PDF] RE: I support Capitola Bar & Grill
Attachments: Public Records - List of Entertainment Permits.pdf Attached is the list of Entertainment Permits from 2019 to Feb. 21, 2023.

Thank you,
Michelle Strong
231 Esplanade #102
Capitola, CA 95010
Cell #559-341-5418
From: Michelle Strong
Sent: Friday, April 7, 2023 11:57:51 AM
To: [email protected] <[email protected]>; [email protected] <[email protected]>; [email protected] <[email protected]>; [email protected] <[email protected]>; [email protected] <[email protected]>; [email protected] <[email protected]>; [email protected] <[email protected]>; Moss, Julia <[email protected]>
Subject: I support Capitola Bar & Grill

Dear Mayor and City Councilmembers:

This is additional information for your consideration of our appeal. Attached petition signatures to print.

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2 The umbrella noise ordinance for the City of Capitola is 10:00pm. Even the residential units in our building can have live entertainment until 10:00 pm. The coffee shop in the building has live music.

As business owners, we have made many alterations to assist in noise control, however the landlord has made no efforts to meet for a compromise nor has he made any efforts to add soundproofing for his son’s unit. The unit above our bar area not only has noise from the surrounding traffic from the Village; there are several exhaust systems for the two restaurant’s kitchen hoods, and a Verizon cell tower that has a generator and motor running 24 hours per day. The City of Capitola itself offers live music in the open outdoor Esplanade Park Bandstand. There are several neighboring businesses that have some form of entertainment or amplified music. Through the street traffic, the pedestrians, and the normal sounds of a restaurant, we should not have an expectation to keep all sounds inside our building. The landlord is responsible for the walls, roof and membrane of the building. It would fall on his burden to provide the building with proper insulation.

Notwithstanding, in no event shall the use include a Mexican food type restaurant.”

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3 We own a business in a tourist-driven community. Restaurants are an anchor for the retail and rental properties. This is not a zoning issue that should require the landlord’s consent. The multi-use building has obstacles for both the residential and the commercial tenants. Lasalle and I have compromised enough by closing early, scheduling entertainment to end by 10:00 pm.

We are a BLACK owned, MEXICAN owned, WOMAN owned business, why is the landlord and his son “intimidated” by us?

Yours very truly,

LaSalle and Michelle Strong
Proprietors, Capitola Bar & Grill

Please attach the petition signatures attached.
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420 Capitola Avenue
Capitola, California 95010
Telephone: (831) 475-7300
FAX: (831) 479-8879
Website: http://www.cityofcapitola.org
Re: February 21, 2023, Public Records Act Request
Dear Mr. and Mrs. Strong,
The City of Capitola (City) is in receipt of the appeal to the City Council of City Managers decision regarding your entertainment permit, received on February 21, 2023. As part of your appeal documents, you also posed a list of questions, which appear to request public records. Thus, consistent with its duty to assist the public in making a focused and effective request that reasonably describes an identifiable record(s), the City has interpreted these requests to constitute a Public Records Act request (Request).

The City intends to cooperate to the fullest extent possible with the Public Records Act (PRA) (Government Code section 7920.000 et seq.) Under established California law, the City is obliged to comply with a request for a public record so long as the requestor makes a specific and focused request for information, that information is maintained by the City in its ordinary course of business, the information is disclosable, and the record can be located with reasonable effort. The PRA provides for the inspection or copying of existing identifiable public records; it does not compel the City to respond directly to questions or create new records, lists, or reports in response to a request.

The City now makes the following determinations:

Request No. 1: Did the City Manager delegate his authority to issue Entertainment Permits to the Chief of Police?
Determination No. 1: Request No. 1 appears to request information only, and therefore does not request any public records.

Request No. 2: Did the police exercise discretion to issue permits with or without the explicitly landlord consent on the form?
Determination No. 2: Request No. 2 appears to request information only, and therefore does not request any public records.

Request No. 3: How many entertainment permits issued in the last five years? How many with explicit landlord consent on the form? How many without? Determination No. 3: The City is not required to create records in response to a request for public records. However, in an effort to provide available information to you, the City provides the following information:
2023 Four Entertainment Permits have been issued; four applications are pending:

Britannia Arms (Signed by property owner) Permit issued on 1/26/2023 Capitola Mercantile (Signed by property owner) Pending Captain Ryans review Capitola Wine Bar (Signed by property owner) Pending Central Fire Inspection Report Gayles Bakery (Signed by property owner) Permit issued on 1/9/2023 347
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420 Capitola Avenue
Capitola, California 95010
Telephone: (831) 475-7300
FAX: (831) 479-8879
Website: http://www.cityofcapitola.org
Monarch Cove Inn (Signed by property owner) Permit issued on 2/28/2023 Paradise Beach Grille (Signed by property owner) Permit issued on 2/28/2023 The Sand Bar (Signed by property owner) Pending ABC Alcohol License Zeldas (Signed by property owner) Pending Captain Ryans review 2022 Twelve Entertainment Permits were issued:

Bay Bar and Grill (Signed by property owner) Permit issued on 2/23/2022 Britannia Arms (Signed by property owner) Permit issued on 1/27/2022 Capitola Bar & Grill (NOT signed) Permit issued on 1/27/2022 Capitola Mercantile (Signed by property owner) Permit issued on 2/14/2022 Capitola Wine Bar (Signed by property owner) Permit issued on 6/6/2022 Cork & Fork (Signed by property owner) Permit issued on 2/14/2022 Gayles Bakery (Signed by property owner) Permit issued on 7/5/2022 Monarch Cove Inn (Signed by property owner) Permit issued on 3/22/2022 Paradise Beach Grille (Signed by property owner) Permit issued on 3/29/2022 The Sand Bar (Signed by property owner) Permit issued on 1/27/2022 Wharf House (NOT signed) Permit issued on 1/27/2022
Zeldas (Signed by property owner) Permit issued on 2/14/2022 2021 Seven Entertainment Permits were issued:

Bay Bar & Grill (No application on file) Permit issued on 4/27/2021 Britannia Arms (No application on file) Permit issued on 4/28/2021 Capitola Bar & Grill (NOT Signed) Permit issued on 11/16/2021 Cork & Fork (No application on file) Permit issued on 4/23/2021 Paradise Beach Grille (No application on file) Permit issued on 4/6/2021 Wharf House (No application on file) Permit issued on 3/23/2021 Zeldas (No application on file) Permit issued on 4/2/2021 2020 Ten Entertainment Permits were issued:

Britannia Arms (No application on file) Permit issued on 1/3/2020 Capitola Wine Bar (No application on file) Permit issued on 11/4/2020 Cork & Fork (No application on file) Permit issued on 12/31/2019 Fast Eddys (No application on file) Permit issued on 1/10/2020 Gayles Bakery (No application on file) Permit issued on 12/19/2019 Monarch Cove Inn (Signed by property owner) Permit issued on 6/9/2020 Paradise Beach Grille (No application on file) Permit issued on 12/31/2019 Shadowbrook (No application on file) Permit issued on 1/10/2020 The Sand Bar (No application on file) Permit issued on 1/10/2020 Zeldas (No application on file) Permit issued on 1/21/2020 348
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420 Capitola Avenue
Capitola, California 95010
Telephone: (831) 475-7300
FAX: (831) 479-8879
Website: http://www.cityofcapitola.org
2019 Six Entertainment Permits were issued:

Britannia Arms (No application on file) Permit issued on 1/30/2019 Cork & Fork (No application on file) Permit issued on 5/2/2019 Fast Eddys (No application on file) Permit issued on 6/14/2019 Gayles Bakery (No application on file) Permit issued on 12/27/2018 Monarch Cove Inn (No application on file) Permit issued on 2/25/2019 Wharf House (No application on file) Permit issued on 1/10/2019 If the information above is not what you intended to request or you would like to request additional documentation, please inform us.

Request No. 4: Why that change in policy?
Determination No. 4: Request No. 4 appears to request information only, and therefore does not request any public records.

Request No. 5: Did the City Manager, Police Department, or any other staff communicate with Steve Yates about this matter?
Request No. 6: When, how, and what did he say? Did Mr. Yates say that he never consented to entertainment, or that he changed his mind?

Request No. 7: Did he say or imply he would sue the City if the permit was not cancelled or not reviewed?
Determinations Nos. 5-7: The City is interpreting these three requests to seek correspondence between City staff (including the City Manager and Police Department) and Mr. Yates between August 1, 2021 through February 21, 2023. Consistent with its interpretation, the City possesses records responsive to this request, and is currently collecting and reviewing such records. 349
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420 Capitola Avenue
Capitola, California 95010
Telephone: (831) 475-7300
FAX: (831) 479-8879
Website: http://www.cityofcapitola.org
If the Citys interpretations of the above requests do not reflect the public records you intended to request, please provide additional clarification to assist the City in effectively searching for and collecting responsive public records. The City is collecting and reviewing records for responsiveness and privilege. Review is ongoing. The City will endeavor to provide a first batch of responsive records on or before March 16, 2023. If you have any questions regarding the Citys response or would like to discuss your Request, please contact me at [email protected].

Thank you,
Julia Moss
City Clerk
831-475-7300 (ext. 228)
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Capitola City Council Meeting
June 21, 2023
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Presentation Overview

1. City Entertainment Permit requirements

2. Capitola Bar and Grill application

3. Reasons for City’s denial

4. Appeal
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Capitola Municipal Code Chapter 5.24
• 5.24 – Governs entertainment permits issued by the City • Identifies three categories of entertainment permits:

Single, Minor, and General
• Authorizes CM, or Department Head, to issue permit, set with conditions to assure entertainment does not cause a
disturbances
• Authorizes City Council or City Manager to add conditions including date/time of operation, and operating noise levels, to further manage noise level limits.
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Entertainment Application
• 5.24.080 – Authorizes City Manager to create application forms. Applicants may be required to submit nonprivileged information reasonably related to intent of Ordinance.
• Current application requires:
• Information about the business
• Proposed entertainment including the hours of intended operation
• Proper licensing and Fire inspections
• Property Owner’s Statement, including the property
owner’s signature
• Current application has been in place since 2018 and is consistent with all neighboring jurisdictions.
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Capitola Municipal Code Chapter 5.24 – Entertainment Permits Police Department issues entertainment permits
• Single EP $41
• Single event within seven-day period
• Minor EP $174
• Entertainment that is incidental to the primary business • General EP $652
• Live music that attracts business
5 Year Number of Permits
2023 8
2022 12
2021 7
2020 10
2019 6
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Capitola Bar and Grill (CBG) History of Entertainment Permits:

October 21, 2021 – CBG applied and received Minor EP. Permit was valid for approximately 6 weeks - issued on Nov 16, and expired on December 31, 2021.

January 2022 – CBG applied for Minor EP. Based on application, staff required permit to be upgraded to a General Entertainment Permit.

Summer of 2022, staff received complaints about
entertainment at CBG and discovered the property owner’s statement had not been completed
December 2022 – CBG applied for a General EP, without property owner authorizing signature
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Property Owner Statement:

As the property owner, I do hereby consent to live
entertainment of the type described in this application to be conducted upon the premises occupied by the above-named applicant in accordance with the provisions set for by Chapter

5.24 of the City of Capitola Municipal Code.

Property Owner’s Signature Date
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• Prior to issuing final staff decision on 2023
CBG entertainment permit staff researched
history of property owner consent
• All existing records were examined
• Staff who oversaw entertainment permits in prior
years interviewed
• Results showed that no other entertainment permits
were issued without property owner consent
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• Staff met with applicants in Dec. 2022 to
explain situation and offered to encourage
parties to mediate.
• CBG expressed interest in mediating
• Staff reached out to property owner to encourage
mediation
• After entertainment continued into January
2023, staff issued notice of final decision
denying the 2023 application on Jan 31
• Appeal received from CBG on Feb. 21, 2023
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10 Appeal Point 1
City staff exceeded its authority to put requirement for property owner authorization on the application
Response:

Muni Code authorizes City Manager to develop an application for entertainment permits to implement the City’s Code
City’s Code is intended to protect persons not patronizing the business that is hosting entertainment
Because property owners often have multiple tenants in a building, ensuring the property owner is supportive of the permit request helps protect property owner’s other tenants in the same building. 360
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11 Appeal Point 2:

City should not cancel that permit unless there is a good reason such as excessive noise complaints
Response:

City did not cancel or revoke the entertainment permit
Entertainment permits are issued on an annual basis
City denied applicant’s 2023 entertainment permit because it lacked property owner’s signature granting permission to use their property for entertainment purposes 361
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12 Appeal Point 3:

Landlord is legally bound by his agreements to allow
Entertainment.

Response:

City is not a party to lease between landlord and appellant Staff cannot comment on the provisions in the lease.

City is charged with administering and enforcing its own Municipal Code.
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13 Appeal Point 4:

Because City has twice issued the permit in the past, without the landlord’s signature, it should reissue it now.

Response:

Staff acknowledges its error in previously issuing
entertainment permits to Capitola Bar and Grill without landlord's signature.

However, the remedy for that mistake is not to grant another permit for 2023.
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• Adopt resolution denying an appeal of the
City Manager’s decision to deny an application
for a 2023 Regular Entertainment Permit for
Capitola Bar and Grill.
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Capitola City Council
Agenda Report
Meeting: June 22, 2023
From: Public Works Department
Subject: Grand Avenue Pathway
Recommended Action: Direct staff to relocate and repair existing fencing to maintain a minimum walkway width of eight feet on the Grand Avenue Pathway.

Background: The Grand Avenue Pathway, which historically ran along the top of the bluff on Depot Hill between Central Avenue and Sacramento Avenue, is designated as part of the California Coastal Trail.

The path is treasured by residents and visitors alike for providing public access to stunning views of the City of Capitola and the Monterey Bay. Due to coastal bluff erosion, Grand Avenue east of Central Avenue has been closed to vehicular traffic since approximately the 1980’s. The pedestrian walkway currently extends two blocks east of Central Avenue to Oakland Avenue.

On March 24, 2005, the City Council directed staff to maintain a minimum walkway width of eight feet (from bluff face to edge of pathway) within the Grand Avenue right-of-way, and that the public walkway be relocated within the right-of-way as necessary until such time that the path is no longer usable. That action also included a non-binding recommendation that future City Councils should not consider eminent domain for the public walkway should the right-of-way become too narrow to safely accommodate pedestrians.
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Road right-of-way is an easement for the purposes of constructing and maintaining roadways, including pedestrian facilities. The City may claim all or only a portion of a road right-of-way for these purposes. In the case of Grand Avenue, between Central Avenue and Oakland Avenue, the City has not used or maintained the right-of-way between the old asphalt roadway and the right-of-way boundary, and some adjacent property owners have utilized this area for their benefit, generally for landscaping. Private property owners may not establish prescriptive rights against a public easement, so the City maintains the right to claim the unused right-of-way at any time.

On May 25, 2017, the City Council directed the closure of a block of the Grand Avenue Pathway between Oakland Avenue and Hollister Avenue due to the threat of continuing bluff failures in the area, based on the results of a geologic assessment. The City Council also authorized the formation of a citizen group (Ad Hoc Depot Hill Bluff Group) charged with studying potential long-term solutions for preservation of the pathway. On October 11, 2018, the Ad Hoc Depot Hill Bluff Group presented options for path preservation that were considered by the City Council, inclusive of filling undercut areas and construction of a groin or seawall. The City Council did not take any action at that time. The pathway between Oakland Avenue and Hollister Avenue remains closed, and portions of that section of path have since eroded away.

Discussion:

Geological Investigation
The January 2023 storms caused additional bluff failures to occur on Grand Avenue, one resulting in the loss of bluff and fencing between Saxon Avenue and Oakland Avenue. To assess the safety of the path after these failures, the City contracted with Erik Zinn of Pacific Crest Engineering (PCE), the geologist who completed the 2017 bluff studies, to evaluate the bluff’s condition and prepare a study to document findings.

The PCE evaluation (Attachment 1) found that the bluff is in various states of failure between Saxon and Oakland Avenues. Portions of the bluff failed from top to bottom in response to the intense storms this past winter and other areas appear to be primed for failure. PCE observed additional fractures which indicate that some locations in the bluff face are continuing to fail in reaction to the most recent bluff failures. The evaluation also noted that portions of the bluff between Oakland Avenue and Hollister Avenue have continued to retreat since last evaluated in 2017 (Attachment 2).

Overall, the current evaluation estimates the top bluff will retreat between 11 to 19 feet from the current position within the next one to six years.

Potential Actions
Options to maintain the Grand Avenue Pathway

1. Relocate and repair existing fencing
This option would move the fencing for the pathway inland approximately ten feet, resulting in a pathway between Saxon Avenue and Oakland Avenue of approximately eight to ten feet wide. Based on the updated geological report, staff anticipates that relocating the path will extend its useful life for one to six years between Saxon Avenue and Oakland Avenue without removing private encroachments.

Staff recommends this alterative for the pathway at this time as it meets Council’s 2005 direction to maintain a minimum walkway width of eight feet within the Grand Avenue right-ofway. This alternative can be executed at a low capital cost and minimal amount of staff time, as discussed in the fiscal impacts below. This does not stop the City from pursuing alterative 2, below, at a later date when additional bluff failures occur.

2. Remove encroachments in the Grand Avenue right-of-way 366
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Between Central Avenue and Oakland Avenue, the remaining pavement from the old vehicular roadway does not extend to the limits of the dedicated right-of-way easement.

Based on preliminary investigations of this area, it appears the road right-of-way extends beyond the walkway between 4 and 14 feet.

This option would move the fencing for the pathway inland approximately 10 feet, remove private improvements in the City’s right-of-way, and relocate the pathway between Saxon Avenue and Oakland Avenue at a width of approximately 12-24 feet. This may extend the life of the pathway for a period of time beyond the one to six years estimated in Option 1.

3. Closure of the pathway at Saxon Avenue and abandon the road right-of-way Closure of the pathway at the beginning at Saxon Avenue would relieve the City of maintenance of this area. Closure would require the issuance of a Coastal Development Permit, as was done for the pathway between Oakland Avenue and Hollister Avenue in 2017.

The permit could be appealed to the California Coastal Commission (CCC).

In a letter dated May 23rd, 2017, CCC urged the City Council to explore other alternatives to closing the pathway, including reclaiming “all areas of the publicly owned right-of-way along this entire stretch of Depot Hill that have been encroached upon by such private residential development so that this publicly-owned right-of-way property can be used to ensure that a path remains available for public access.” This option is discussed under option 1, above.

Abandonment of a right-of-way relinquishes the City’s interest in all or a portion of the previously dedicated public easement, thereby giving a property owner more usable area.

Abandonment does not assign ownership or affect other property rights in the abandoned property, but rather releases the City’s interest and liability in the area.

Fiscal Impact: Fiscal impacts vary greatly depending on Council direction. Table 1 below provides a comparison of potential costs for the options discussed above.

Table 1. Relative Costs
Option Capital Cost Staff Time Risk

1. Relocate Fencing Low Low Moderate

2. Remove
Encroachments
Moderate High Low

3. Closure Pathway Low Moderate Low
Attachments:

1. Geological Investigation – Oakland to Saxon (Pacific Crest Engineering, 2023)

2. Geological Investigation – Hollister to Oakland (Zinn Geology, 2017)

3. Correspondence
Report Prepared By: Jessica Kahn, Public Works Director Reviewed By: Julia Moss, City Clerk
Approved By: Jamie Goldstein, City Manager
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GEOTECHNICAL | ENVIRONMENTAL | CHEMICAL | MATERIAL TESTING | SPECIAL INSPECTIONS 444 AIRPORT BLVD., SUITE 106 | WATSONVILLE, CA 95076 | PHONE 831-722-9446 | WWW.4PACIFIC-CREST.COM 9 June 2023 Project No. 2381
City of Capitola, Public Works
Attention: Jessica Kahn, Public Works Director
420 Capitola Ave
Capitola, California 95010
Phone: (831) 475-7300
[email protected]
Re: Limited geological investigation of coastal bluff failure Grand Avenue footpath near intersection with Oakland Avenue and Saxon Avenue Capitola, California 95010
Dear Jessica:

This letter presents the results of our limited geological investigation of the bluff failure that has undermined portions of the footpath along Grand Avenue between its intersection with Oakland Avenue and Saxon Avenue (see Plate 1).

Over the long term, the bluff below the footpath has been episodically retreating as the soil and bedrock exposed on the bluff face erodes and fails in the form of shallow landslides, debris flows and rock falls, mostly in response to intense storms, wave erosion and earthquakes. The most recent shallow landslides that have caused the top of the bluff to retreat and undermine the footpath this winter appear to have been driven by saturation of the marine terrace deposits soil that caps the underlying Purisima Formation bedrock, as well as toppling failures of slabs of the bedrock from top to bottom (see Plate 2).

The overall failure process for the coastal bluff at this location is a two-part process. The Purisima Formation bedrock exposed in the lower bluff is eroded and notched by waves until the notch intersects a nearly vertical bluff-parallel joint set, at which point a slab of bedrock topples, typically from top to bottom for the exposed slab. The bedrock topple process also takes the overlying marine terrace deposits along with it leaving a very steeply dipping to nearly vertical scar in the bluff face that freshly exposes both the bedrock and marine terrace deposits. At that point, the wave scour process begins anew at the base of the bluff, eventually carving another notch into the bedrock. The marine terrace deposits concurrently begin to erode and slide in a piecemeal fashion as they seek the angle of repose of about 38 degrees for the sand and gravels that compose that formation. This process continues unabated until the bedrock topples again in the future, resetting the entire retreat process geometry and clock.

We mapped the position of the bluff and the exposed formations using the base map by Bowman and Williams provided to us by the City of Capitola. We relocated the top of the bluff on that map as well as the fence line because the bluff has apparently receded since 368
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City of Capitola – Impact Of Landsliding On Grand Avenue footpath between Saxon and Oakland Aves. Project No. 2008 9 June 2023

Page 2 ends

the last time that portion of the map was modified and the fence at the top of the bluff has been relocated in locations in response to the bluff failures.

The bluff is in various states of failure between Saxon and Oakland Avenues. Portions of the bluff failed from top to bottom in response to intense storms of this past winter. In some locations, the bedrock exposed in the bluff is dilated and appears to be primed for toppling.

Deep notches within the bedrock at the base of the bluff and sea caves were observed during our field reconnaissance on 14 May 2023. Extensional fractures (marked by red hachured lines on Plate 1) were observed on the ground surface in several locations, which indicates that the Marine Terrace Deposits in the bluff face are continuing to fail in reaction to this past winter’s landslide.

The base of the bluff where it intersects with the modern day wave cut platform (called the “shoreline angle”) was covered by sand, landslide deposits and rubble during our 14 May 2023 reconnaissance. It is likely that the wave carved notches into the bedrock at the base of the bluff are even deeper than observed.

We also reviewed a geological report for the Depot Hill Geological Hazard Abatement District, prepared on 12 April 2000 by Rogers Johnson and Associates. The report documents a past calculated long term bluff retreat rate of about 1.0 feet per year at that time which seems reasonable based upon our experience with past geological investigations in this area. The authors also cautioned the reader that the bluff had been severely undercut at that point, implying that a large failure of the bluff was imminent. This process described by them isn’t a one time event – as noted above this is an ongoing cyclical process that is constantly driving the face of the bluff landward.

As noted at the beginning of this letter, the fate of the bluff and the retreat is always tied to what is happening at the base of the bluff with respect to notching and formation of sea caves. We noted two distinct conditions with respect to that observation for the area studied:

1. Various portions of the bluff between Saxon and Oakland Avenues that occurred this winter appear to have been triggered by toppling of undercut bedrock (see Plate 2).

Although we could not observe the absolute bottom of the base of the bluff in this area, since it is still obscured by sand and landslide debris, the volume of large sandstone blocks in the debris indicates that bedrock portion of the bluff failed, perhaps more than five feet of the undercut bluff face.

2. Some of landslides that occurred this winter between Saxon and Hollistr Avenues , appear to have been within the marine terrace deposits only (see Plate 2). The bedrock bluff face in some of those areas appears to be undercut by at least five feet and is primed to topple.
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Page 3 ends

3. Although no landsliding occurred this past winter in some locations between Saxon and Oakland Avenues (see heavily vegetated areas on bluff face on Plate 2), the bedrock is primed to topple at this location due to being notched at the base.

Most of the marine terrace deposits in this area are over steepened and will likely lay back to an average angle of about 38 degrees. This may come about in one to three rainy seasons. Since this region is subject to wet and dry cycles that can last for years, we need to assign a range of years to the concept of one to three rainy seasons. The conservative analysis would assume that we will have back-to-back wet seasons for the next several years, which may lay back the marine terrace deposits to the angle of repose. A more liberal analysis would assume that we will enter a drought period of three to five years, followed by wet year. Using those ranges implies that the top of the bluff within Blocks A and C may retreat significantly within one to six years.

A review of the most recent El Nino status by NOAA (which can be accessed here:
https://www.cpc.ncep.noaa.gov/products/analysis_monitoring/lanina/enso_evolution-statusfcsts-web.pdf) indicates that “A transition from ENSO-neutral to El Niño is favored during May-July 2023, with chances of El Niño increasing to greater than 90% into the winter 2023-

24.” Although El Nino climatic conditions do not always result in greater than average precipitation and large storm waves, the condition itself raises the probability of those types of events impacting central California. If we have a repeat of this past storm season next year, the top of the bluff may retreat significantly by the end of next winter in the study area.

We have projected where the top of the bluff will retreat if the marine terrace deposits lay back to the angle of repose of about 38 degrees on two cross sections and the site map (see Plate 1). Using just this analysis pushes the top of the bluff back between 11 to 19 feet from the current position. This line represents the retreat that could happen in one to six years.

We have not factored in the collapse of the undercut portion of the bluff bedrock or the landsliding and subsequent retreat that would occur in the event of a large magnitude earthquake. If either of those processes are factored in and occur within that time period of one to six years, the amount of bluff retreat may be even greater.

On a final note, we understand that if the footpath is to be reopened, it will need to be repositioned further landward from its current position. Any work toward that end should be completed in a manner that will not exacerbate the tenuous stability of the marine terrace deposits exposed in the bluff face.
370
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BLUFF TOP BETWEEN OAKLAND AND HOLLISTER AVENUES
We also mapped the current position of the top of the bluff between Oakland and Hollister Avenues. Portions of the bluff have continued to retreat since the author of this letter last looked at it in 2017 (Zinn Geology, 2017). The portion of the bluff nearest to the residence on the northeastern side of Oakland Avenue (402 Oakland Avenue) appears to have retreated the most in the last five years since we looked at this area, with very little of the original 2017 footpath remaining.

FINDINGS
Turning to Plate 1, the reader may note that our projected one to six year bluff retreat line impinges upon the seaward end of the residential properties. This implies that even if the footpath is pushed landward and snugged up against those properties, it may be undermined and threatened in less than a decade.

The marine terrace deposits exposed in the upper bluff are in a very fragile state with respect to landsliding. The usage of heavy equipment within 15 feet of the top of the bluff, particularly if the soils are wet, may trigger further landsliding of the marine terrace deposits.

RECOMMENDATIONS

1. The City should consider the effective life of the footpath when contemplating short term and long term expenditures for keeping the footpath open. In the long term, the City will need to protect the entire bluff from further erosion and landsliding with very expensive topto-bottom armoring methods if they want to keep the existing alignment of the footpath open.

2. Any work performed on the footpath between Oakland Avenue and Saxon Avenue should be done by hand within 15 feet of the top of the bluff. The use of heavy vibratory equipment should be avoided if possible, to lessen the possibility of triggering further landsliding of the bluff. If heavy equipment is used, the work should only be performed when the marine terrace deposits are dry, typically late spring (May) through fall (October). 371
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City of Capitola – Impact Of Landsliding On Grand Avenue footpath between Saxon and Oakland Aves. Project No. 2008 9 June 2023

Page 5 ends

This concludes our geological letter regarding the impacts of landslide and bluff top retreat for the Grand Avenue footpath between its intersection between Saxon Avenue and Oakland Avenue. Please do not hesitate to contact us if you have any questions about this letter or our work or need further assistance.

Sincerely,
PACIFIC CREST ENGINEERING INC.

Erik N. Zinn
Principal Geologist
P.G. #6854, C.E.G. #2139
Attachments: Plate 1 – Site Map & Geologic Cross Sections Plate 2 – Annotated April 2023 Snapshot Of Coastal Bluff

CERTIFIED ENGINEERING GEOLOGIST

STATE OF CALIFORNIA
ERIK N. ZINN
No. 2139

PROFESSIONAL GEOLOGIST

STATE OF CALIFORNIA
ERIK N. ZINN
No. 6854
372
Item 7 B.

PROJECTED TOP OF BLUFF ONE TO SIX YEARS FRO M NOW
bluff concealed
by thick brush
extensional undermined
cracking (typ.)

CURRENT TOP OF BLUFF
0 20 40 10
Feet
B B‘
Elevation above mean sea level (feet)
northwest
scale 1”=20’ h=v
50 10
70 -10
30 50
10 70
-10
30 Elevation above mean sea level (feet)
90 90
A A‘
Elevation above mean sea level (feet)
northwest
scale 1”=20’ h=v
50 10
70 -10
30 50
10 70
-10
30 Elevation above mean sea level (feet)
90 90 Portion Of Bluff That Will
Fail In One To Six Years
(shaded green) Portion Of Bluff That Will
Fail In One To Six Years
(shaded green)
footpath
? ? ? ? ?
Marine Terrace
Deposits (soil)
Purisima Formation
(sandstone and
siltstone bedrock)
Beach Sand
Landslide
Deposits
Marine Terrace
Deposits (soil)
Purisima Formation
(sandstone and
siltstone bedrock)
Beach Sand
B
B’
A
A’
Date: 8 June 2022 Revised:

Job #2381
Scale: 1"=20’
Drawn by: ENZ/enz Plate 1

SITE MAP & GEOLOGIC CROSS SECTIONS
City of Capitola
Grand Avenue Footpath
Between Saxon Ave. and Oakland Ave.

BASE MAP: Digitally excerpted from AutoCAD file of topographic map sheets titled “Topographic Map - Grand Avenue & Viciinty”, prepared by Bowman & Williams - Consulting Civil Engineers with an intended publication scale of 1”=20’. The map respresents topography compiled from Aero-Geodetic Corp.

Job Number 996942 (dated photgraphy 6 June 1999) and Bowman & Williams surveys (4 June 1999, 8-10 November 1999, 22-24 November 199).

Topography along beach and toe of cliff was during low
tide -1.3 feet (22-24 November 1999)

CERTIFIED ENGINEERING GEOLOGIST

STATE OF CALIFORNIA
ERIK N. ZINN
No. 2139

PROFESSIONAL GEOLOGIST

STATE OF CALIFORNIA
ERIK N. ZINN
No. 6854
373
Item 7 B.

Saxon Ave.

Oakland Ave.
asphalt
is undermined
here
bedrock is
notched
and undercut
here; extends even
further beneath sand
debris from 2023 landsliding
top of bluff
is severely
undermined here
bedrock is
notched
and undercut
here; extends even
further beneath sand
seacave in
base of bluff;
rock above cave
entrance is dilated
and primed to fall/fail
Marine Terrace Deposits
Purisima Formation Bedrock
Date: 8 June 2022 Revised:

Job #2381
Scale: n/a
Drawn by: ENZ/enz Plate 2
ANNOTATED APRIL 2023

SNAPSHOT OF COASTAL BLUFF
City of Capitola
Grand Avenue Footpath
Between Saxon Ave. and Oakland Ave.

CERTIFIED ENGINEERING GEOLOGIST

STATE OF CALIFORNIA
ERIK N. ZINN
No. 2139

PROFESSIONAL GEOLOGIST

STATE OF CALIFORNIA
ERIK N. ZINN
No. 6854
BASE PHOTO: Screen shot taken of “2023 04 04 Capitola Depot Hill and Explanade” by Misa Burich; drone video can be accessed at https://www.youtube.com/watch?v=Lt5N3-Gl5zM&t=1s 374
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1 Moss, Julia
From: skip allan <[email protected]>
Sent: Tuesday, June 13, 2023 1:16 PM
To: City Council; CapitolaDPW
Cc: allan skip
Subject: June 22 Grand Ave. Geologic Discussion
Follow Up Flag: Follow up
Flag Status: Flagged
6/13/2023
To Whom It May Concern,
Though not a Depot Hill resident, I've regularly walked and relaxed along the public path on the Grand Ave. cliff for near 50 years. Along the way I've admired the finest and most historical of views overlooking Monterey Bay, admiring sea life and vistas, sun and moon rises, as well as meeting friends from all over the world on this delightful and user friendly path.

As you know, the Grand Ave. public right-of-way continues to be compromised and closed in sections due to erosion and cliff collapse on its south side as well as encroachments by homeowners' walls, fences, cement steps, and hedges on its north side. Some of these encroachments extend as far as 10-20 feet into the right-of- way from property lines. As former director of Public Works Steve Jesberg can verify, these property encroachments into Grand Ave. are revocable and never meant to be of permanent nature.

Before more of our beautiful walkway and window on the Bay is considered for closure due to a doom and gloom geology report, my family and neighbors ask that Capitola City Council and Public Works request property owners to return their fences, barriers and landscaping to their property lines so the Grand Ave. path can continue to be safely used rather than closed to public enjoyment. Indeed, this action was unanimously mandated by Capitola City Council members Termini, Harlan, Norton, and Nicol on March 24, 2005 (report 940-15) when it was written that the "City of Capitola maintain an 8 foot pathway along the Grand Ave. right-of-way, and that the public pathway would remain until such time as it diminishes and is no longer usable."
Some concerned citizens have asked "where are the property lines?" My reply is Capitola has survey maps, including a comprehensive one by Bowman&Williams on Dec. 23, 1999 that clearly delineate property lines and encroachments. Since that time, visible survey markers have been placed along Grand Ave. properties when proposed projects have been presented to the City for permitting.

Certainly we are aware that eventually "Nature will Take Its Course" along Grand Ave. That may be years in the future. In the meantime it will cost the City of Capitola little to nothing to have encroachments removed so residents, neighbors, and visitors alike can continue to enjoy Grand Ave. public right-of-way.

Thank you for your consideration.
381
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2 ~Skip Allan 310 McCormick Ave., Capitola, 95010, 831-475- 0278, [email protected]
382
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Grand Avenue Pathway
City Council
June 22, 2023 1
383
Item 7 B.

Background
• Between Central Avenue and Sacramento
Avenue
• Closed to vehicular traffic since the 1980’s
• Pedestrian walkway currently extends two
blocks east of Central Avenue to Oakland
Avenue
2 384
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3 Grand Avenue Pathway
Previous Council Direction
2005
385
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Pictures then drawings
4 Grand Avenue Pathway
2023 Bluff Failure
386
Item 7 B.
5 387
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6 Private Property Encroachments
388
Item 7 B.
7 389
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8 • Completed previous studies
Erik Zinn of Pacific Crest Engineering (PCE)
390
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9 391
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10 392
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11 Grand Avenue Pathway
Alternative Actions: Option 2
393
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12 394
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13 Option Capital
Cost Staff Time Risk

1. Relocate Fencing Low Low Moderate

2. Remove
Encroachments Moderate High Low

3. Pathway Closure Low Moderate Low
Grand Avenue Pathway
Fiscal Impact
395
Item 7 B.

Recommendation
Direct staff to relocate
and repair existing
fencing to maintain a
minimum walkway width
of eight feet on the
Grand Avenue Pathway.
14 396
Item 7 B.
15 397
Item 7 B.

Capitola City Council
Agenda Report
Meeting: June 22, 2023
From: City Manager Department
Subject: Memorials Installed on Capitola Wharf
Recommended Action: Determine the plan for memorial plaques currently installed on Capitola Wharf.

Background: Administrative Policy I-7 outlines a uniform procedure for the public to purchase memorial items to be placed within the City of Capitola. That Policy designates locations for such memorials and allows memorials on the Wharf railings or on Wharf benches. The Wharf location has, however, been ‘full’ with no room for additional plaques or benches for several years.

Administrative Policy I-7 states that “the City will maintain plaques for the life of the plaque. The City will determine when the plaque is no longer reasonable to maintain and needs to either be replaced or removed”. Because the plaques are made of bronze and therefore have a lifespan likely measured in centuries, staff has interpreted this to mean the City will maintain plaques in their current location for the life of the object on which it was installed (for example, as long as the bench or railing remains undamaged).

Prior to the January 2023 storms, 145 plaques were located on the wooden railing of the Capitola Wharf, along both sides and the head of the wharf. 39 plaques were located on various Wharf benches. In anticipation of the Capitola Wharf Resiliency and Public Access Project, staff photo-documented and indexed all plaques on the Wharf, so a complete record of what existed before the storm is available for reference. Approximately 20 wharf railing plaques were lost in the storm, and it is possible that upon further inspection and the removal of the current railing, staff will discover more damaged plaques. The Wharf remains inaccessible, and staff can only estimate the status of Wharf plaques and benches.

Staff has accurate contact information for roughly ten percent of all Capitola Wharf plaque owners/purchasers.

At the April 27 City Council meeting, staff presented options for the Capitola Wharf plaques in anticipation of the Wharf Project; 1) Move all memorial plaques to a new location on the Wharf, 2) Remove all plaques and return them to owners, and 3) Re-install all memorial plaques along the new Wharf railing. Staff highlighted the complications involved with reinstalling all plaques along the Wharf and on benches as they would have been before the January storm. Rather than choose one of the three options, Council asked that staff return after surveying members of the public, primarily those who had purchased and owned Wharf plaques, on what their desired outcome was.

Discussion: Staff designed and launched an online survey on May 5 to gather information and assess public opinion on the Wharf plaques. Those surveyed were asked to provide current contact information and the name on their Wharf plaque (if they own one) to help staff update the plaque database.

Staff promoted the survey in three issues of the Capitola Wave e-newsletter, highlighted the survey on the City website, emailed all members of the public who reached out regarding Wharf plaques with a direct link to the survey, and posted about the survey on the City’s Facebook and Instagram accounts.

At the date of this agenda printing, the survey has received 68 responses, 64.71% of which indicate the responder owned one or more Wharf plaques. Staff will close the survey on June 21, and will present any significant responses during the presentation on June 22. 398
Item 7 C.

The table below shows survey responses to the question of how satisfied or dissatisfied would you be with the following three options for Wharf plaques:

Place/Incorporate all memorial plaques on an artistic & contemplative memorial structure located on the Wharf
Plaque Owners Non-Plaque Owners
Very or Slightly Dissatisfied 63.42% 47.82%
Very or Moderately Satisfied 29.27% 39.13%
Re-install all memorial plaques along the Wharf railing and on benches as they were pre-storm Very or Slightly Dissatisfied 0 8.7%
Very or Moderately Satisfied 87.5% 78.26%
Remove all plaques and offer to return them to their owners/purchasers Very or Slightly Dissatisfied 87.5% 75%
Very or Moderately Satisfied 7.5% 16.66%
46 people wrote responses to the last survey question; “is there anything else you want to share with City staff about the Wharf memorials”. Most responses highlighted the significance of the Wharf plaques, and the emotional attachment plaque owners have for each specific Wharf location. Several responses explained that individual plaques are more meaningful than a single memorial design feature with many names on one element. Responders explained that a single memorial element would feel less personal; if installed all together on one design element, plaque owners say they would be less likely to visit their plaque to privately remember their lost loved one. Two responders replied that the presence of memorials along the Wharf detracts from their overall experience and asked that the Wharf not be a memorial site.

Staff included re-installation of all plaques in Phase 2 of the Capitola Wharf Resiliency and Public Access Improvement Project request for proposals. The lowest bidder estimated a cost of $18,000 to re-install all plaques along the Wharf railing. Staff estimates that at least 20 plaques were lost during the storm, and proposes they be replaced by the City at a total estimated cost of $4,000. Significant staff time is required to ensure all plaques are re-installed in the same location as pre-storm. Other considerations for this option is the future time and cost of maintaining bronze plaques along the wooden Wharf railing.

If Council directs staff to move forward in re-installing all memorial plaques, staff proposes that bench plaques be placed on whichever type of bench either the Wharf Resiliency Project or the Capitola Wharf Enhancement Project determines as part of the project’s scope.

If directed to re-install, Staff also recommends a time limit be imposed on all plaques on the Wharf (railing and bench plaques) to set a clear expectation for how long the City guarantees to maintain the memorials.

If Council does not set a clear time limit, re-installing plaques along the Wharf railing and on Wharf benches may set a precedent that the City will do so in the event of any damage to the wharf, at any point in the future.

Staff estimates it would cost $30,000 to include a memorial design element that incorporates all the plaques on the Wharf as part of the Capitola Wharf Enhancement Project.

Fiscal Impact: Dependent on Council direction.

Report Prepared By: Chloé Woodmansee, Assistant to the City Manager Reviewed By: Julia Moss, City Clerk
Approved By: Jamie Goldstein, City Manager
399
Item 7 C.

Memorials
Installed on
Capitola
Wharf
JUNE 22, 2023
400
Item 7 C.

Background
Memorials have been installed on Capitola Wharf
for decades.
•145 plaques on Wharf railing
•39 plaques on benches
Post-January 2023 storm:
•20+ plaques lost
•Wharf Resiliency and Public Access Improvement
Project kicking off this Fall
401
Item 7 C.

Background
On April 27, three options were presented to
Council:

1. Place all plaques on an artistic memorial
structure on the Wharf

2. Re-Install memorial plaques along the new
Wharf Railing

3. Remove all plaques and return them to owners
Council requested staff survey community and
plaque owners and return to Council for direction
402
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Survey
•Online survey open from May 5 – June 21
•Promoted in newsletter, social media, emailed
directly to plaque enquirers, on website
•70 responses
•65% of responders indicated that they own a
plaque
403
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Survey Results
0 10
20 30
40 50
60 70
Artistic Memorial Element Re-install Plaques Return Plaques to Owners How Satisfied would you be with the following Options?
Very/Slightly Dissatisfied Very/Moderately Satisfied
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Option Details

ARTISTIC MEMORIAL ELEMENT
•Memorial element would be
included in Capitola Wharf
Enhancement Project
•Estimated cost = $30,000
•Council would have approval over
proposed RRM design

RE-INSTALL ALL PLAQUES
•Would be included in Capitola
Wharf Resiliency and Public Access
Project
•Estimated cost = $22,000
•Significant staff time to re-install
•Future time and costs to maintain
•Staff recommends establishing a
timeframe for guaranteed
maintenance
405
Item 7 C.

Determine Plan for Plaques
•Direct staff to re-install all memorial plaques,
and consider establishing timeline for
guaranteed maintenance
Or
•Direct staff to include a memorial design
element on the Wharf that incorporates all
plaques
406
Item 7 C.

Capitola City Council
Agenda Report
Meeting: June 22, 2023
From: Community Development Department
Subject: 1098 38th Avenue Project Introduction and Funding Request Recommended Action: Receive presentation and direct staff to prepare loan agreement to assist with for predevelopment activities for a 100% affordable multifamily rental housing development located at 1098 38th Avenue.

Background: On March 10, 2023, MidPen Housing, a local non-profit affordable housing developer, acquired 1098 38th Avenue. Upon acquiring the property, the non-profit approached City staff with a request for $250,000 of funding for predevelopment planning costs.

Analysis: MidPen Housing intends to construct a 100 percent affordable housing development at 1098 38th Avenue. Since acquiring the site, the non-profit has been working on buildout scenarios for the site.

After much consideration, MidPen has decided to pursue a 52-unit, multifamily housing development.

Recently, MidPen hired Architects FORA to design the future multifamily housing development. MidPen is requesting $250,000 for predevelopment planning of the project, including $200,000 for architectural design, $32,000 for civil and survey costs, and $19,800 in geotechnical reports and testing, with the expectation the City would consider providing additional funding in the future.

The City currently has multiple funding options which could be utilized for predevelopment planning of the project, including Permanent Local Housing Allocation Fund (PLHA) and Housing Successor Agency funds. On May 10, 2023, the City was awarded $481,732 in PLHA funds toward predevelopment rental housing. PLHA grant funding may be utilized for predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, and rental housing that is affordable to extremely low-, very low-, low-, or moderate-income households, including necessary operating subsidies. The City also has approximately $2 million in funds in the Housing Successor Agency fund due to a recent loan pay-off. The Housing Successor Agency funds may be utilized for new construction of an affordable housing development to households earning 80 percent or less of the area median income (AMI).

During the June 22 City Council meeting, MidPen will introduce their team and provide a conceptual overview of the proposed project. If there is conceptual support for the project, staff recommends the City Council direct staff to prepare a loan agreement for $250,000 to assist with predevelopment planning for consideration at a future Council meeting.

Fiscal Impact: The City received a PLHA grant award for $481,732 for 2020 - 2022 and anticipates an additional award of $149,426 for 2023 and 2024. The City also has approximately $2 million in the Housing Successor Agency fund. MidPen’s request for $250,000 could be fully funded through either fund. Should City Council direct staff to proceed with the loan, staff will research which funding source would be most appropriate for the project.

Report Prepared By: Katie Herlihy, Community Development Director Reviewed By: Julia Moss, City Clerk; Samantha Zutler, City Attorney Approved By: Jamie Goldstein, City Manager
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1098 38th Avenue
Project Introduction &
Funding Request
City Council June 22, 2023
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Item 7 D.

Introduction
• MidPen Housing
– Regional Non-profit Affordable Housing Developer
– All in 1: Construct, Manage, and Provi
• Purchased 1098 38th Avenue on March 10, 2023
– 52-unit multifamily housing development
– 100% affordable
– Request for $250,000 of predevelopment planning costs 409
Item 7 D.

Available Funding
Available funds restricted to housing
• PLHA $481,732
• Housing Successor Agency fund $2 million
• Home funds $600,000
If conceptual support for project, staff will research
which fund most appropriate.
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1098 38th Avenue
Affordable Housing Proposal
Joanna Carman, Vanessa Diffenbaugh, Alyssa Serrano
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Item 7 D.

MidPen’s mission is to
Provide safe, affordable housing of high quality to
those in need
Establish stability and opportunity in the lives of our residents; and
Foster diverse communities that allow people from all
ethnic, social and economic backgrounds to live in
dignity, harmony and mutual respect.
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Item 7 D.
6/22/2023
Our Team
Alyssa Serrano
Associate Project
Manager
Shwetha Subramanian
Chief Real Estate
Development Officer
Vanessa Diffenbaugh
Project Manager
Joanna Carman
Director of Development
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Item 7 D.

Local Communities
The Farm, Soquel, 39 units Family Housing Parkhurst Terrace, Aptos, 68 units Family Housing Moon Gate Plaza, Salinas
90 units Permanent Supportive Housing
San Andreas, Watsonville
43 Units Farmworker Housing
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Item 7 D.

Project Re-Design Update
Property Management
Being Good Neighbors:

We strive to ensure that every community we manage benefits both our residents as well as the surrounding neighborhood.

Enhancing Resident’s Lives:

Our staff responds to individual and community needs with a commitment to customer service.

Sustainable Operations and Maintenance:

Retrofits to improve building performance, water conservation, and indoor air quality; using drought resistant landscaping and green cleaning products; and training on environmentally-friendly practices.
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Item 7 D.

Project Re-Design Update
Resident Services
Youth Programs:

Free afterschool, summer and leadership programs for youth prepare students for academic success.

Adult Programs:

Financial literacy and vocational development, including career counseling and ESL Classes improve job retention and increase household income.

Supportive Services:

Partnerships with local agencies to provide service plans for supportive populations, including residents struggling with homelessness or mental, physical or intellectual disabilities. 416
Item 7 D.
1098 38th Avenue Site
417
Item 7 D.

Proposed Affordable Development
❖ 52 units of 100% affordable
housing for large families
❖ Affordable housing to serve
residents earning 30% - 60% of
Area Median Income
❖ Projected rent ranges:
• $874-$1,749 for a 1 bedroom
• $1,050-$2,100 for 2 bedroom
• $1,212-$2,425 for 3 bedroom
❖ 25% of units will be set aside for
special needs individuals
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Item 7 D.
01 / ABOUT FORA
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Item 7 D.

Jessica Goswick
/ Designer
/ Building Performance

OUR TEAM
Yoshi Jimenez
/ Designer
/ Affordable Housing
Sarah Vaccaro
/ Principal / Architect
/ Equitable Communities
Kyle Seem
/ Designer
/ Software Engineer
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02 / SITE CONTEXT
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ZONING
RM-M Multi-Family Residential, Med. Density

1. 97 acres Site
Plan to utilize
State Density Bonus

PROJECT SITE
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CONTEXT & CHARACTER
41st Avenue/West Capitola (“North Forties”)
/ Beach town aesthetic
/ Active commercial + residential
/ Most homes constructed in
1970s and 1980s with some
newer additions
/ Capitola vibe + colors + artwork
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Item 7 D.
● Residential & Commercial Surroundings:
● Rail Trail Section 10 to North
● One block from the 41st corridor
● Active pedestrian + bike usage

SF RESIDENTIAL
MOBILE
HOMES
SITE

VIEWS AROUND SITE
MULTIFAMILY
MOBILE
HOMES 424
Item 7 D.
03 / GOALS
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● Provide affordable, inclusive, family housing that reflects and supports this community
● Ensure programs, resources, and physical design provide equitable living opportunities for residents
● Focus investment where it has the most impact on health and living standards for residents
● Integrate thoughtful, multi-use, multi-age outdoor spaces ● It’s all in the details! Feature art, outdoor space, color, quirky Capitola vibe

PROJECT GOALS
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04 / DESIGN
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//////////////////////////////////////////////////////////////////////////////////////////////////////// /////////////////

PROPOSED SITE DESIGN
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//////////////////////////////////////////////////////////////////////////////////////////////////////// /////////////////
Onsite Amenities:
• Property Management + Resident Services
• Community room with kitchen
• Laundry rooms
• Outdoor play areas for children and youth
• Outdoor dining and gathering areas
• All electric buildings with onsite generation

PROJECT AMENITIES
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Item 7 D.

Anticipated Schedule
Milestone Timing
Architect Selection February 2023
Entitlement Application & Approval October 2023 & January 2024 SuperNOFA Application June 2024
Local Funding Applications April - December 2024
Building Permits Application &
Approval
January – July 2025
9% Tax Credit Application March 2025
Investor/Lender Selection June 2025
Execute GMP / Pull Permits / Issue
NTP
October 2025
Construction October 2025 – April 2027 (18 mos)
100% Lease Up August 2027
Stabilized / Perm Conversion October 2028
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Item 7 D.

Financing Overview
Local Sources
4%
State Sources
26%
Tax Credit Proceeds
50%
Conventional Debt
20%
Total Project Cost: ~$46M
• Local Sources ~$2M
• State Source ~$12M
• Conventional Debt ~$9M
• Tax Credit Equity ~$23M
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Predevelopment Request
Activity Cost
Architectural Design $200,000
Civil and Survey $30,200
Geotech $19,800
Total Request $250,000
MidPen anticipates requesting remainder of needed local funding from City when future project milestones are met. 432
Item 7 D.
1098 38th Avenue
Recommendation:

Direct staff to prepare loan agreement to assist with
for predevelopment activities for a 100% affordable
multifamily rental housing development located at
1098 38th Avenue.
433
Item 7 D.

Capitola City Council
Agenda Report
Meeting: June 22, 2023
From: Finance Department
Subject: Levy of Capitola Village and Wharf Business Improvement Area Assessments for Fiscal Year 2023-24
Recommended Action: Conduct the noticed public hearing and adopt a resolution levying the Fiscal Year 2023-24 Capitola Village and Wharf Business Improvement Area Assessments and accepting the CVWBIA Annual Plan and budget.

Background: On June 23, 2005, the City Council adopted Ordinance No. 889 adding Chapter

5.10 to the Capitola Municipal Code establishing the Capitola Village and Wharf Business Improvement Area (CVWBIA). The CVWBIA assessments are renewed annually and fund various programs that benefit businesses within the CVWBIA district boundaries.

Discussion: On May 25, 2023, the City Council adopted Resolution No. 4316, Resolution of Intention to Levy Business Improvement Assessments for Fiscal Year 2023-24, which set a public hearing for June 22, 2023, in accordance with state law and Chapter 5.10 of the Capitola Municipal Code. Notice of this public hearing was published in the Santa Cruz Sentinel newspaper on Friday June 9, 2023, and was mailed to affected business owners by the CVWBIA.

The CVWBIA is a business-based, self-imposed assessment district in which the assessments are paid by business owners within the district boundary for improvements and activities that support and revitalize businesses as well as attract visitors. The assessment amount for each business is based on the business type and may be a flat fee or increasing fee based on the number of full-time equivalent employees. Consistent with the FY 2021-22 and FY 2022-23 adopted assessments, the proposed FY 2023-24 assessments are reduced by 25% from prepandemic levels and the assessments for the hotel/motel/inn category are proposed to be reduced by 50%.

The billing for City services identified in the CVWBIA plan was based on past agreements. The annual billing rates are $3,000 for Public Works and $4,200 for accounting services. The annual report and budget are included as Exhibit A.

During the public comment portion of this hearing, written and oral protests may be made pertaining to the proposed levy of assessments, the amount of the proposed assessments, and the proposed improvements and activities in accordance with California Streets & Highways Code §36524 and §36525.

In November 2018, voters approved Measure J, which increased the transient occupancy tax (TOT) from 10 percent to 12 percent. That Measure restricted 20 percent of the TOT increase to be used for local business groups’ marketing and community improvements. In February 2019, the City Council directed that restricted TOT funding be split evenly between the Capitola-Soquel Chamber of Commerce and the CVWBIA. City Council also requested that a minimum of 25 percent of restricted TOT revenues be allocated toward community improvements, which may include special events. The proposed CVWBIA budget includes $36,500 of TOT revenues for FY 2023-24. $31,000 (85%) of the proposed TOT budget is for village enhancement and events, $4,000 is for printing directories, and the remaining $1,500 will rolled-over to FY 2024-25. 434
Item 7 E.

Staff recommends the City Council adopt the proposed resolution confirming the Fiscal Year 2023-24 CVWBIA Assessments and adopting the Annual Plan and Fiscal Year 2023-24 budget, as received by the Council on May 25, 2023, unless it receives oral and written protests from the owners of businesses that will pay 50 percent or more of the assessments as mandated by state law.

Fiscal Impact: There is no fiscal impact for the City. All administrative costs for billing and collections incurred by the City are reimbursed by the CVWBIA.

Attachments:

1. Proposed resolution

2. Exhibit A: BIA
Report Prepared By: Jim Malberg, Finance Director
Reviewed By: Julia Moss, City Clerk; Samantha Zutler, City Attorney Approved By: Jamie Goldstein, City Manager
435
Item 7 E.

RESOLUTION NO. ___

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAPITOLA
CONFIRMING THE FISCAL YEAR 2023-2024 CAPITOLA VILLAGE AND WHARF

BUSINESS IMPROVEMENT AREA ASSESSMENTS AND ADOPTING THE ANNUAL PLAN AND FISCAL YEAR 2023-2024 CVWBIA BUDGET
WHEREAS, the Capitola Village and Wharf Business Improvement Area (CVWBIA) has prepared a report to the City of Capitola for Fiscal Year 2023-24 pertaining to the Business Improvement Area assessments for the CVWBIA under California Streets and Highways Code §36533; and
WHEREAS, that report was filed with the City Clerk on May 18, 2023; and WHEREAS, Capitola Municipal Code §5.10.050 requires annual assessments to be imposed within the CVWBIA pursuant to a formula set forth in City Council Resolution No. 3453 referenced in Capitola Municipal Code §5.10.030, and later amended by Resolution No. 3546 and Resolution No. 4186; and
WHEREAS, on May 25, 2023, the City Council adopted Resolution No. 4316 stating its intention to levy business improvement assessments for Fiscal Year 2023-24, receiving the Annual Report and Fiscal Year 2023-24 Budget, and approving the CVWBIA Assessment Basis/Business Addresses and Assessment Method; and
WHEREAS, pursuant to Resolution No. 4316 the City Council, in accordance with California Streets and Highways Code Section §36535, held a public hearing on June 22, 2023, as provided for in Streets and Highways Code Sections §36524 and §36525, at which time it considered the annual report, the levy of business improvement assessments for Fiscal Year 2023-24, and received oral and written protests and endorsements to the regularity or sufficiency of the proposed business improvement assessments.

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

1. The Fiscal Year 2023-24 Capitola Village and Wharf Business Improvement Area Annual Report, including the Fiscal Year 2023-24 budget, as filed with the City Clerk on May 18, 2023, and received by the City Council on May 25, 2023, as part of Resolution No. 4316, is hereby confirmed and adopted.

2. The adoption of this Resolution shall constitute the Fiscal Year 2023-24 levy of assessments provided for in Chapter 5.10 of the Capitola Municipal Code pertaining to the Capitola Village and Wharf Business Improvement Area zone and rate of assessments adopted by the City Council on June 22, 2023.

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 22 nd day of June
2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
436
Item 7 E.

EXHIBIT A
Resolution No.

Annual Report & Proposed Fiscal Year 2023-2024 Budget
CVWBIA Assessment Basis
CVWBIA Business Listing and Assessment Method
Mission Statement
The objective of the CVWBIA is to provide a unified organization to promote, stimulate and improve the business conditions in the designated area, primarily during the shoulder season, September – May. The belief is that if the lodging properties and short-term rentals are full, the rest of the businesses in the area will benefit.

This can be achieved by the CVWBIA continuing to fund activities and projects that will:
 Improve access to information regarding the businesses and services provided by the Village and Wharf BIA to likely visitors to the area via newsletters, the internet, print and television advertising.
 Provide fun, family-oriented events throughout the year emphasizing the attributes of the Village and Wharf.
 Improve and enhance the appearance of the Village and Wharf in partnership with the City of Capitola.
 Enhance the ability of the CVWBIA to serve as a liaison between the business community and local governments.

In FY 2019-20 CVWBIA began to receive a portion of the Transient Occupancy Tax (TOT) collected by the City and made commitments based on projected TOT revenues. In January 2023 storm related flooding cause major damage to the wharf and some village businesses. Recovery has moved swiftly but business has not returned to pre-storm levels. FY 2023-24 assessments will remain at FY 2022-23 levels.

As the CVWBIA begins its eighteenth year we will continue and expand successful programs from prior years, which include the following:

1. Website – In 2021-22 the CVWBIA marketing team created a new, up to date, mobile compatible, website (www.capitolavillage.com) for ease of use and connectivity to BIA member’s businesses, lodging and short-term rentals. Each member has a unique page with links to their individual websites. There is a schedule of events and other helpful features. Visitors can sign up on the site to receive. This process continues in 2023-24 as technology changes quickly. We will also take advantage of opportunities to direct visitors to our website through QR Codes for special events, parking and other visitor information. Monthly summaries of traffic to the site has shown the businesses the value of the website.

2. Social Media – The Communications Manager creates a monthly newsletter, manages all our social media channels, maintains our website, and tracks performance. Our email newsletters are sent to over 24,000 subscribers each month. Our Facebook page has over 18,000 fans with our top 5 cities being: San Jose, Santa Cruz, Modesto, Sacramento, and Capitola. Our Instagram is growing the fastest with over 17,300 active followers with an average of 500 profile visits to our account every week. Our newest channel, Twitter, currently has almost 1,200 followers and continues to grow each month. The purpose of the Communication Manager is to collectively promote the Capitola Village businesses and to be a resource for 437
Item 7 E.
ongoing growth. Our Village Ambassador continues to develop relationships with our members to facilitate sharing their promotions and announcements with our social media contacts.

3. Advertising – While placing an emphasis on our social media development, there is still a need for carefully placed advertising in quality visitor publications. We are constantly monitoring these publications for the ones with the most effective online presence. In addition, in 2022-23 the BIA began a television promotion on Hulu and KCRA. With Hulu we are able to target very specific audiences by income levels and zip codes. The analytics are quite extensive as well. We are focusing on Sacramento, San Francisco and the Central Valley. This campaign will continue in 2023-24.

4. Village Brochures – We print 25,000 brochures and distribute them throughout Santa Cruz County. A new addition to the brochure is a QRCode taking the visitor directly to our website.

Many visitors depend on their phones to access information while traveling.

We contract with Certified Display Service. This company has exclusive rights to lobby racks in the hotels, resorts, and visitor centers in the county. These brochures are also available in various places of business throughout the Village and Wharf. We feel it is important to make visitors to other areas in the county aware of Capitola Village and Wharf through these brochures. Additionally, there are distribution locations at the Gilroy Visitors Center on Hwy 101, San Jose Airport, and the Monterey Airport.

5. Branding and Logo Development – We continue to update logos, colors, and other marketing material to reflect current trends.

6. Sip and Stroll & Cookie Walk – These events benefit all the businesses in the village. We hope to be able to hold up to three Sip and Stroll events in November, February and May. The Cookie Walk is family oriented and takes place the weekend after Thanksgiving.

7. Winter Festivities – Window decorating contest, lighted wreaths and palm trees are components of the winter festivities with other events in the planning stages.

8. Easter Egg Hunt – This is a free event for children that takes place over one week of spring break.

9. Public Works and Village Enhancement – The CVWBIA contributes annually to the City of Capitola Public Works Department. Our contribution is used to help maintain the Village and Wharf. This year we are concentrating on landscaping and cleanliness of the village both in public spaces and private planting areas.
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Item 7 E.

Capitola Village & Wharf Business Improvement Area
Assessment Basis
The method of assessment classifies businesses within the CVWBIA boundaries into nine categories:

1. Retail / Service businesses

2. Restaurant - Full Bar

3. Restaurant - Beer and Wine

4. Restaurant - No Alcohol

5. Wine/Beer Service

6. Seasonal Food Service

7. Office and Professional businesses / Specialty

8. Short-term Rental businesses

9. Hotel / Motel / Inn businesses
Assessment fees are assigned to these nine business categories by number of full-time equivalent employees, a flat rate, and a per unit amount. Registered non-profits are exempt from assessment fees.

The following table shows the assessment fees for the proposed CVWBIA for FY 2023-24 at same level as last fiscal year.

Footnote* “Full-time employee” is an employee who works 2,000 hours per year or more.

Multiple part-time employees are combined into a single full-time employee for the basis of this assessment calculation. (i.e. “fulltime equivalents”)
Footnote** “Short-term rental” businesses are defined as those dwellings which, at least once per fiscal year, are rented to a tenant for a tenancy of less than thirty days.

Number of Full-Time Equivalent
Employees*
Business Category 0 – 5
employees
6 – 10
employees
More than
10 employees
Retail / Service $315 $630 N/A
Restaurant Full Bar N/A $720 $1,080
Restaurant Beer and Wine $367.50 $682.50 $1,042.50
Restaurant No Alcohol $315 $630 N/A
Flat Fee
Wine/Beer Service $315
Office / Professional / Specialty $90
Short-term Rental** $135
Seasonal Food Service $210
Per Unit Fee
Hotel / Motel / Inn $180 per unit
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Associate Membership. CVWBIA is authorized to accept “associate membership” financial contributions from businesses outside the CVWBIA with approval of the board. The category and assessment will be the same as if the business is within the CVWBIA area.

New Business Assessment. Assessments will be prorated by the quarter in which a business opens.

Business Closing. A business notifying the CVWBIA before the end of the first quarter of the fiscal year (September 30th) that it will close before December 31st will be exempt from paying the assessment for that fiscal year. If the business does not close before December 31st, it must pay the year's assessment in full.

Late Charge. No late charge will be assessed with the FY 2023-24 dues.

Delinquencies. CVWBIA has a clear policy relative to delinquent assessments. Businesses that have not paid their assessment by October 31, 2023, will be removed from the CVWBIA website and brochure. They will be ineligible to participate in any CVWBIA activity. Assessments that have not been paid by January 31, 2024, will be sent to collections. 440
Item 7 E.

Capitola Village & Wharf Business Improvement Area Estimated Actual for FY 2022-2023 and Proposed Budget for FY 2023-2024
441
Item 7 E.

Capitola Village & Wharf Business Improvement Area
Budget Discussion
The CVWBIA will begin Fiscal Year 2023-24 with an estimated fund balance of $23,000.

Revenues: The proposed revenue is derived from the CVWBIA business roster and corresponding assessment rates.

Expenditures:

Summary. The proposed expenditures are divided into these categories: Administration $20,500, City Services $7,200, Marketing $78,800, and Special Events $51,000.

The following is a roster of open businesses in the assessment area as of June 2, 2023.

Capitola Village & Wharf Business Improvement Area
Business Listing and Assessment Method
Business Type Assessment Method Estimate Assessment
AM = Associate Member Associate Member AM $405
F1 = Restaurant Full Bar Per employee category: 6-10 EEs, >10 EEs F1 $7,920 F2 = Restaurant Beer & Wine Per employee category: 0-5 EEs, 6-10 EEs, >10 EEs F2 $3,255 F3 = Restaurant No Alcohol Per employee category: 0-5 EEs, 6-10 EEs F3 $4,095 F4 = Wine & Beer Service Flat fee F4 $1,575
F5 = Seasonal Food Flat fee F5 $210
H = Hotel/Motel/Inn Flat fee per unit or room H $9,180
O = Office/Professional Flat fee O $1,530
R = Retail/Service Per employee category: 0-5 EEs, 6-10 EEs R $13,939 SR = Short Term Rental Flat fee per unit SR $11,475
Total $53,584
Business Name TYPE FY23-24
Est. Size FY23-24 Amount
Wharf House Restaurant F1 0 - 10 $720
Britannia Arms Pub & Rest. F1 0 - 10 $720
Bay Bar & Grill F1 0 - 10 $720
The Sand Bar F1 0 - 10 $720
Capitola Bar & Grill F1 0 - 10 $720
Shadowbrook Restaurant F1 11+ $1,080
Zelda's F1 11+ $1,080
Margaritaville F1 11+ $1,080
Paradise Beach Grille F1 11+ $1,080
El Toro Bravo F2 0 - 5 $368
Thai Basil F2 0 - 5 $368
Geisha Japanese Restaurant & Tea House F2 0 - 5 $368
My Thai Beach F2 0 - 5 $368
Caruso's Tuscan Cuisine F2 0 - 5 $368
Avenue Café F2 0 - 5 $368
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Tacos Moreno 3 F2 0
-5 $368
Trestles Restaurant F2 6 - 10 $683
Mr. Toots Coffee & Tea F3 0 -5 $315
Capitola Village Ice Creamery F3 0 -5 $315
Castagnola Deli & Café F3 0 -5 $315
Mijos Taqueria F3 0 -5 $315
Lil Koe’s Beach Bites F3 0 -5 $315
The Daily Grind Coffee & Bottle Shop F3 0 -5 $315
Reef Dog Deli F3 0 -5 $315
Boba Bay F3 0 -5 $315
Sandcastle Café F3 0 -5 $315
Pizza My Heart F3 6 - 10 $630
Polar Bear Ice Cream F3 6 - 10 $630
Armida Winery F4 n/a $315
Cork and Fork LLC F4 n/a $315
Capitola Wine Bar & Merchants F4 n/a $315
Capitola Tap House F4 n/a $315
English Ales Brewers, Inc. F4 n/a $315
Left Coast Sausage Worx F5 n/a $210
Venetian Hotel
H 19 $3,420
Capitola Beach Suites
H 10 $1,800
Inn at Depot Hill
H 12 $2,160
Capitola Hotel
H 10 $1,800
David Lyng & Associates
O n/a $90
Katz & Lapides
O n/a $90
Michael Lavigne Real Estate
O n/a $90
Newman & Marcus,LLP
O n/a $90
Suess Insurance Agency
O n/a $90
Capitola Village Real Estate
O n/a $90
Law Offices of Sam Storey
O n/a $90
John H. McSpadden
O n/a $90
Miles J. Dolinger, Attorney at Law
O n/a $90
Visions by Sheena
O n/a $90
Capitola Village Massage
O n/a $90
Yellow Bus
O n/a $90

REVEST HOMES INC
O n/a $90
Monet Salon
O n/a $90
Community CPA
O n/a $90
The Psychic Gallery
O n/a $90
Bare Skin & Body
O n/a $90
Capitola Boat & Bait
R 0
-5 $315
Capitola Beach Co.

R 0
-5 $315
Big Kahuna Hawaiian Shirts
R 0
-5 $315
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Craft Gallery
R 0
-5 $315
Craft Gallery Annex
R 0
-5 $315
Euphoria Rio Mix
R 0
-5 $315
Free to Ride
R 0
-5 $315
Hot Feet
R 0
-5 $315
Kickback
R 0
-5 $315
Latta
R 0
-5 $315
Nubia Swimwear
R 0
-5 $315
Oceania
R 0
-5 $315
Phoebe's
R 0
-5 $315
Rainbow City Limit
R 0
-5 $315
Slap Happy
R 0
-5 $315
Super Silver
R 0
-5 $315
Sweet Asylum
R 0
-5 $315
Yvonne
R 0
-5 $315
Southstar PM, Inc. - Parking at the Mercantile
R 0
-5 $315
Uchiyama - Swenson - Parking at the Theater
R 0
-5 $315
Lumen Gallery
R 0
-5 $315
Capitola Reef
R 0
-5 $315
Art Inspired
R 0
-5 $315
Sea Level T's
R 0
-5 $315
Vanity by the Sea
R 0
-5 $315
Xandra Swimwear
R 0
-5 $315
Quality Market
R 0
-5 $315
Capitola Seashells
R 0
-5 $315
Jade Allen
R 0
-5 $315
Pueblo Viejo Imports
R 0
-5 $315
Mia Bella Boutique
R 0
-5 $315
Ethos Santa Cruz
R 0
-5 $315
Village Sea Glass
R 0
-5 $315
Tony Pagliaro Photography
R 0
-5 $315
Mercantile Arcade
R 0
-5 $315
Carousel Taffy & Treats
R 0
-5 $315
Coastal Life
R 0
-5 $315
Capitola Candy Café
R 0
-5 $315
Capitola Sweet Shoppe
R 0
-5 $315
Santa Cruz Apparel
R 0
-5 $315
Stoke Brands dba Midtown Surf Shop
R 0
-5 $315
Capitola Paws
R 0
- 5 $315
Nectar California LLC
R 0
- 5 $315
Katalinas Boutique LLC
R 0
-5$315
Clementine & CO.

R 0
- 5 $315
Capitola Family Home SR1 $135
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Item 7 E.

Capitola Pelican House SR
1 $135
Capitola Venetian #5 SR1 $135
Capitola Venetian #14 SR1 $135
Capitola Beach Bungalow SR1 $135
Capitola Beach Cottage SR1 $135
Capitola Cliffs Unit 3 SR1 $135
Peaceful Capitola Home SR1 $135
Relaxing Family Condo by the River SR1 $135
Perfect Family Beach House SR1 $135
Capitola Cliffs Unit 4 SR2 $270
Capitola Venetian #7 SR1 $135
Capitola Venetian Unit 3 SR1 $135
Capitola Venetian #1 SR1 $135
Oceanfront Capitola Tuscan Villa SR1 $135
Capitola Cliffs #4960-2 SR1 $135
Capitola Venetian #11 SR1 $135
Beach Charmer SR1 $135
Capitola Venetian #2 SR1 $135
Castillo Properties SR2 $270
Deborah Cohen SR1 $135
Bayside Capitola Beach Condo SR1 $135
Oceanside Coastal Village Condo SR1 $135
Capitola Sea Spray SR1 $135
Creekside Cottage SR1 $135
Capitola Cherry Ave SR1 $135
Luxurious Historic Windmill Silo House SR2 $270
Capitola Bluegum A & B SR2 $270
Grandma's Nest Capitola Venetian #9 SR1 $135
Adorable Capitola Village Condo SR1 $135
Capitola Seashell Sanctuary SR1 $135
Vista Cortile Condo SR1 $135
Capitola Village Deco Beach House SR1 $135
Talbot Family SR1 $135
Capitola Venetian #16 SR1 $135
Capitola Village Retreat Units A & B SR1 $135
Capitola Lawn Way #5-4 SR1 $135
Capitola Breeeze Condo & Seaview Condo SR2 $270
Capitola Riverview #421 SR1 $135
Capitola Riverview #323 SR1 $135
Iconic Oceanfront Pink Venetian SR1 $135
114 - 116 Lawn Way LLC SR2 $270
Capitola Cliff House SR
1 $135
208 Monterey Ave #A SR
1 $135
445
Item 7 E.

Capitola Village #316
-B & 316-C SR
1 $135
Capitola Cliffs 4920 SR
1 $135
James Lin SR
1 $135
Michael J. Pirnik SR
1 $135
Capitola Riverview 414 A & B SR
2 $270
Capitola Venetian #8 SR
1 $135
Capitola Oceanside SR
1 $135
Good Times SR
2 $270
Capitola Dreamin' SR
1 $135
Capitola Riverview #402 SR
1 $135
Capitola Riverview #310 SR
1 $135
Capitola Riverview #312 SR
1 $135
Oceanside Luxury Dream Beach House SR
1 $135
Beautiful Oceanview Condo SR
1 $135
Paradise Properties Capitola Village #321-B SR
1 $135
Bombora LLC Capitola Village #419 SR
2 $270
Colorful Capitola Village Cottage A & B SR
2 $270
Capitola Suites SR
3 $405
A Six Sisters Beachfront Retreat SR
1 $135
Capitola San Jose 122 SR
5$675
Capitola Monterey 109-3 & 109 10 SR
1 $135
222 San Jose Ave SR
1 $135
Charming Riverview Home SR
1 $135
Surf Loft SR
1$135
425 Capitola Ave SR
1$135
208 Capitola Ave A & B SR
2$270
318 Capitola Ave #2 SR
1$135
Capitola Village Beach Rental SR
1$135
328 Riverview Ave SR
1$135
Arron Thomas SR
1 $135
Gary & Teresa Carlisle SR
1 $135
Stricht/Ciolino Trusts SR
1 $135
Unsophisticated Builders LLC SR
1 $135
Debbie & Brian Tuck SR
1 $135
Santa Cruz Balsamics Assoc. O1 $90
Fuse Architects Assoc. O1 $90
Surf City Properties Assoc. O1 $90
O'Neal Properties Assoc. O1 $90
Beachnest Property Management Assoc. O1$90
446
Item 7 E.

CAPITOLA

VILLAGE

AND WHARF

BUSINESS

IMPROVEMENT
AREA

ASSESSMENTS
FY 2023-24
June 22, 2023
447
Item 7 E.

Background
■ June 23, 2005 - City Council adopted Ordinance No.
889 establishing Capitola Village & Wharf Business
Improvement Area (BIA)
■ BIA is a business-based, self-imposed assessment
district with assessments paid by businesses within
the district for improvements & activities that support, revitalize and attract tourists to those businesses
■ Assessment amounts are determined by business
classification and number of full-time equivalent
employees
– Reduced by 25% in FY 2021-22, FY 2022-23, due to
COVID recovery and FY 2023-24 due to storm
damage recovery
– Reduced by 50% for Hotels & Lodging
■ Businesses may make in-lieu payments in the form
of gift certificates for use by the BIA
– No in-lieu payments for FY 2023-24
448
Item 7 E.

Annual
Assessment
Process
May 25, 2023 - City Council set a public hearing for
this evening
• Notice of the Public Hearing published in the Santa
Cruz Sentinel and mailed to affected business
owners
California State Law & the Capitola Municipal Code
require that the City Council conduct a public
hearing annually prior to approving the
assessments
• BIA submits an annual plan and budget for Council
approval
No fiscal impact to the City – all services provided
by the City are reimbursed by the BIA
449
Item 7 E.

Annual Assessment Process (cont.)
■ BIA Budget includes Assessment revenue as
well as Restricted Transient Occupancy Tax
(TOT) revenue
– Measure J approved by voters in 2018 dedicated
a portion of TOT revenues for local business
groups
– February 28, 2019, the City Council directed that
the TOT revenues restricted for local business
groups would be split evenly between the BIA and
the Capitola Soquel Chamber of Commerce
■ Requiring a minimum of 25% of restricted TOT
revenue be allocated for Village Improvements
and/or Enhancements
■ Restricted TOT revenue and its uses need to be
presented separately with annual budget
■ Annual report on use of restricted TOT revenues
450
Item 7 E.

Annual Assessment Process (cont.)
■ FY 2023-24 BIA Budget includes $35,000
of restricted TOT revenue
– Directories printing - $4,000
– Village Enhancements - $16,000
– Holidays & Events - $15,000
451
Item 7 E.

Proposed Assessments
Number of Full-Time Equivalent
Employees*
Business Category 0 – 5
employees
6 – 10
employees
More than
10 employees
Retail / Service $315 $630 N/A
Restaurant Full Bar N/A $720 $1,080
Restaurant Beer and Wine $367.50 $682.50 $1,042.50
Restaurant No Alcohol $315 $630 N/A
Flat Fee
Wine/Beer Service $315
Office / Professional / Specialty $90
Short-term Rental $135
Seasonal Food Service $210
Per Unit Fee
Hotel / Motel / Inn $180 per unit 452
Item 7 E.

Recommended
Action
■ Conduct the Public Hearing
and adopt the proposed
Resolution levying the FY
2023-24 Capitola Village and
Wharf Business Improvement
Area Assessments and
accepting the BIA Annual Plan
and Budget
453
Item 7 E.

Capitola City Council
Agenda Report
Meeting: June 22, 2023
From: Finance Department
Subject: Fiscal Year 2023-2024 Budget and Capital Improvement Program
Recommended Action: Adopt a resolution adopting the City of Capitola’s Fiscal Year 2023-24 Budget and Capital Improvement Program.

Background: The Proposed Fiscal Year (FY) 2023-24 Budget and Planned FY 2024-25 Budget was presented to the City Council at a special meeting held May 3, 2023, at which time the City Council received input from the Finance Advisory Committee (FAC). At the meeting, the City Council requested additional information which was presented at a second special meeting on May 18, 2023, at which time the City Council reviewed updates to the proposed budget and additional recommendations from the FAC and heard public comments.

At the May 18
th special meeting, the City Council discussed the following, and ultimately directed staff to prepare a resolution to adopt the budget.

Discussion: The Proposed FY 2023-24 Budget estimates the General Fund ending balance on June 30, 2024, of $1.6 million which includes a target fund balance of $500,000, $100,000 designated for the Employee Downpayment Assistance Program, and approximately $954,000 for future infrastructure projects. Pursuant to City Council direction and the recommendation of the FAC, staff has allocated $4.95 million of existing general fund resources towards the Capital Improvement Program and FY 2023-24 City Council Goals and Priorities.

Following City Council direction, the budget includes $60,000 of Restricted TOT revenue programmed to Early Childhood and Youth Programs (ECYP) within the Community Grant Program and $23,000 of Restricted TOT fund balance to the Recreation Division for ECYP.

Additional revisions made to the FY 2023-24 Proposed Budget since the May 18 th public hearing
include:
 Allocated $18,000 to Recreation:
o Equity Swim Program
 Increased funding for personnel $2,500
 Allocated $30,000 for Total Compensation Survey
 Decreased 911 JPA contribution $2,900
o Based on approved FY 2023-24 911 JPA budget
 Updated City Council goals in the City Manager’s message The net impact of the proposed budget revisions is a negative $24,600. The FY 2023-24 Proposed Budget remains structurally imbalanced by design due to the allocation of $4.95 million of available general fund resources to City Council goals and priorities. In addition, the five-year budget forecast remains structurally balanced until the sunset of the Measure F District Sales Tax in December 2027.
454
Item 7 F.

The resolution necessary to adopt the Fiscal Year 2023-24 Budget includes the above appropriations and adjustments (Exhibit A), a General Fund overview (Exhibit B), and an estimation of FY 2023-24 fund balances (Exhibit C). In addition, the FY 2023-24 Proposed Budget is available on the City’s website at: https://www.cityofcapitola.org/finance/page/annual-budget Fiscal Impact: The fiscal impact is shown in the attached General Fund overview and fund balance summary.

Attachments:

1. Proposed resolution

2. Changes to Proposed Budget

3. General Fund Summary

4. Fund Balance Summary
Report Prepared By: Jim Malberg, Finance Director
Reviewed By: Julia Moss, City Clerk; Samantha Zutler, City Attorney Approved By: Jamie Goldstein, City Manager
455
Item 7 F.

RESOLUTION NO. _____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAPITOLA
ADOPTING THE 2023-2024 FISCAL YEAR CITY BUDGET AND CAPITAL IMPROVEMENT

PROGRAM BUDGET
WHEREAS, it is necessary to adopt the 2023-2024 Fiscal Year Budget for all City funds and Capital Improvement Program; and
WHEREAS, the City Council has conducted budget study sessions, has heard and considered public comments, and has modified the proposed budget accordingly, and wishes to adopt such budget for the Fiscal Year July 1, 2023, through June 30, 2024; and NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Capitola that the 2023-2024 Fiscal Year Budget and Capital Improvement Program is hereby adopted; and BE IT FURTHER RESOLVED that the Finance Director is directed to enter the budget into the City's accounting records in accordance with appropriate accounting practices, and the City Manager, with the Finance Director's assistance, shall assure compliance therewith.

I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the City Council of the City of Capitola on the 22
nd day of June 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________
Margaux Keiser, Mayor
ATTEST:
____________________
Julia Moss, City Clerk
456
Item 7 F.

FY 2022-23 General Fund Expenditures Amount
Recreation - Equity Swim Program $ 18,000
Recreation - ECYP $ (23,000)
Citywide presonnel 2,500
Personnel Division - Total Compensation Study 30,000
Police - 911 JPA contribution (2,900)
Total $ 24,600
FY 2022-23 Restricted TOT Special Revenue Fund Amount
Early Childhood & Youth Programming - Recreation $ 23,000 Total $ 23,000
Exhibit A
Changes to FY 2023-24 Proposed Budget
457
Item 7 F.

Major Categories FY 20/21 Actual FY 21/22 Actual
FY 22/23
Amended
FY 22/23
Estimated
FY 23/24
Proposed
FY 24/25
Planned
RevenuesTaxes $ 12,838,748 $ 14,514,218 $ 14,573,969 $ 14,607,713 $ 14,943,971 $ 15,225,246 Licenses and permits 657,786 718,402 642,100 600,354 651,600 654,725 Intergovernmental revenues 1,404,860 1,350,001 1,442,308 105,700 89,700 91,360 Charges for services 1,604,582 1,894,868 2,076,331 1,797,950 2,157,937 2,487,760 Fines and forfeitures 494,772 588,832 592,000 648,000 607,500 607,500 Use of money & property 79,464 31,722 89,500 123,200 198,495 198,495 Other revenues 112,881 898,648 106,344 83,850 89,300 90,450 Revenues Totals $17,193,093 $19,996,692 $19,522,552 $17,966,767 $18,738,503 $19,355,536 ExpendituresPersonnel $9,127,386 $10,273,758 $11,364,691 $11,430,752 $11,681,919 $12,122,364 Contract services 2,250,977 2,912,962 3,777,026 3,348,754 3,290,190 3,121,345 Training & Memberships 64,292 101,501 147,645 149,959 172,736 173,786 Supplies 495,219 672,330 516,000 581,563 603,975 573,175 Grants and Subsidies 43,650 101,650 125,000 125,000 125,000 125,000 Internal service fund charges 911,212 1,192,463 1,439,415 1,439,415 1,617,843 1,647,118 Other financing uses 809,383 3,608,343 5,231,569 3,390,366 2,288,788 1,567,909 Expenditures Totals $13,702,120 $18,863,007 $22,601,346 $20,465,809 $19,780,450 $19,330,697 Impact on Fund Balance $ 3,490,974 $ 1,133,684 $ (3,078,794) $ (2,499,042) ($1,041,947) $ 24,839 Budgetary Fund Balance $ 4,346,128 $ 5,479,812 $ 2,016,018 $ 2,595,770 $ 1,553,823 $ 1,578,662 DesignationsEmployee Downpayment $ (385,000) $ (385,000) $ (100,000) $ (100,000) Infrastructure $ - $ - $ - $ - $ (953,823) $ (800,000)
Revised Budgetary Fund Balance $ 5,094,812 4,346,128 $ 1,631,018 $ 2,595,770 $ 500,000 $ 678,662 $ (500,000)
General Fun
d
Summary
458
Item 7 F.

Estimated
Balance
7/1/2023 Revenues Transfers In Expenditures Transfers Out Estimated
Balance
6/30/2024
General Fund $ $18,738,503 - 2,595,770 $ 17,491,662 $ 2,288,788 $ 1,553,823 $ Designated Reserves
Contingency Reserve $2,192,346 - $ 172,000 $ 2,364,346 $ PERS Contingency Reserve 10,000 1,404,275 - - - 1,414,275 Emergency Reserve 250,000 1,461,506 - - 1,711,506
Donations - - - - - -
Facility Reserve 100,000 332,714 100,000 140,000 - 392,714 Total Designated Reserves $ 110,000 5,390,840 $ 522,000 $ 140,000 $ - $ 5,882,840 $ Debt Service
Pac Cove Lease Financing - 55,143 670,000 725,000 - 143 Pac Cove Park - 12 87,788 87,788 - 12
Total Debt Service $ - 55,155 $ 757,788 $ 812,788 $ - $ 155 $ Capital Improvement Fund $ 4,727,000 7,164,700 $ 550,000 $ 12,686,300 $ - $ (244,600) $ Internal Service Funds
Stores $ 27,000 65,935 $ 27,000 $ - $ 65,935 $
Information Techology 630,000 235,000 340,742 626,000 - 579,742 Equipment Replacement 450,000 200,000 504,130 294,000 - 860,130 Self-Insurance Liability 622,138 622,138 246,204 - 246,204 Workers' Compensation 447,705 447,705 117,080 - 117,080 Compensated Absences - 110,886 225,000 225,000 - 110,886 Total Internal Service Funds $ 2,176,843 1,384,977 $ 660,000 $ 2,241,843 $ - $ 1,979,977 $ Special Revenue Funds
SLESF-Suppl Law Enforcmnt Svc $ 100,500 161,451 $ 221,000 $ 40,951 $ TOT Restricted Revenue - 101,333 (96,667) 96,667 101,333 SB1 RMRA 470,199 248,500 243,500 475,199
RTC Streets 356,823 371,000 366,000 361,823
Gas Tax 153,095 284,881 283,000 154,976
Wharf 170,681 - 17,500 153,181
General Plan Update and Maint 259,256 66,000 175,500 149,756 Green Building Education 214,349 3,000 21,000 196,349
Public Art 169,367 5,000 75,500 98,867
Parking Reserve 737 - 100,000 369,000 100,000 (368,263) Technology Fee 97,657 11,500 13,250 95,907
PEG-Public Education and Govt. 62,168 16,000 15,000 63,168 Capitola Village/Wharf BIA 23,069 50,017 96,667 157,500 12,253 CDBG Grants 21,227 253,335 273,335 1,227
CDBG Program Income 44,891 250 - 45,141
Library 49,514 1,500 - 51,014
HOME Reuse 842,506 - 4,100 838,406
Housing Trust 336,987 10,000 201,000 145,987
Cap Hsg Succ- Program Income 2,029,648 40,000 155,807 1,913,841 Total Special Revenue Funds $ 1,562,816 5,463,624 $ 196,667 $ 2,294,325 $ 397,667 $ 4,531,115 $ Successor Agency $ - 165,074 $ - $ - $ - $ - $
Prelim. Fund Balance - All Funds $ 27,315,162 22,220,140 $ 2,686,455 $ 35,666,918 $ 2,686,455 $ 13,703,311 $ 459
Item 7 F.

PROPOSED BUDGET
FISCAL YEAR 2023-24

CITY OF CAPITOLA
Capitola, California
460
Item 7 F.

Budget
Process
Proposed Budget distributed:

April 28th
FAC Meetings:

May 2nd and May 16th
City Council Meetings:

May 3rd and May 18th
City Council provided direction
for budget adoption tonight
461
Item 7 F.

General Fund & City Council Goals
• Operating Budget imbalanced by design
• Maintaining balance of $1.6 million
• $100,000 Employee Downpayment Assistance
• $954,000 future Capital projects
• $500,000 target fund balance
• Utilizing $4.95 million of general fund resources for Capital Improvement Projects and City Council Goals
• Community Center Renovation - $1.65 million
• SCCB Loan Payoff - $725,000
• Pavement management - $500,000
• PD technology upgrades - $235,000
• Universal Design Playground - $200,000
• Equipment Fund for Electric Vehicles - $200,000 462
Item 7 F.

General Fund & City Council Goals
• Utilizing $4.95 million of general fund resources for Capital Improvement Projects and City Council Goals (cont.)
• Establish long-term strategic goals - $50,000
• LAFCO Sphere Study - $30,000
• Survey for possible ballot measure - $25,000
• Mall Redevelopment Committee - $25,000
• Capital Improvement Projects:
• Water filling stations - $50,000
• Hill / Bay pilot project - $50,000
• Esplanade park - $50,000
• Replenish Emergency Reserve - $250,000
• Employee downpayment assistance - $100,000
• Future capital projects - $954,000
463
Item 7 F.

General Fund & City Council Goals
• Non-monetary City Council Goals
• Adopt Children’s Bill of Rights
• Bring climate goals to City Council
• Reach out to school district regarding possible turf project at Monterey Park
• Encourage local businesses to participate in the CA green business certification program
• Explore grants for Maker Space at Community Center
• Research intergenerational programs to connect youth with elders utilizing ECYP funding
464
Item 7 F.

Project Status Recommended
Appropriations
Jade Street Park UA Playground Construction Post-Fundraising $200,000 Community Center Construction Anticipated
F23-Su24 $1,650,000
Pavement Management Major Construction Sp24
with Prior Year $500,000
Capitola Road Rehabilitation Construction Anticipated Su23 $840,000 TOTAL $3,190,000
prior year appropriations – major/priority?
projects
Capital Improvements Program
FY2023-2024 Recommended Appropriations
465
Item 7 F.

City Council Direction
• Early Childhood & Youth Program (ECYP)
• Allocate $23,000 of ECYP funding to the Recreation Division • General Fund – net increase $24,600
• Decreased recreation funding - $5,000
• Decrease $23,000 from ECYP
• Increase $18,000 – Swim Equity Program
• Increase personnel - $2,500
• Increase contract Services - $30,000 – compensation study • Decreased 911 JPA contribution - $2,900
• Updated City Council Goals
• City Manager Message
466
Item 7 F.

Mid-Year Budget Review
• Evaluate sales tax revenues over next two quarters
• Look at performance of other key revenue sources
(TOT, Cannabis tax, etc.)
• Potential increase to parking revenue
• Projected June 30 2024 fund balance ~$1.6 million
• Opportunity to consider fund balance ahead of mid year if necessary
467
Item 7 F.

Summary
468
Item 7 F.

Recommended Action
Approve the Resolution
adopting
Fiscal Year 2023-2024
Operating Budget
and
Capital Improvement Program
469
Item 7 F.

Capitola City Council
Agenda Report
Meeting: June 22, 2023
From: Finance Department
Subject: Fiscal Year 2023-24 Fee Schedule
Recommended Action: Conduct the duly noticed public hearing on the proposed Fee Schedule for FY 2023-24 and adopt a resolution amending the current fee schedule.

Background: The annual budget process includes a review of the City’s Fee Schedule. Capitola’s current fee schedule is based on the comprehensive fee study adopted on November 24, 2015.

The consultant recommended the City review the fee schedule on a yearly basis and implement a Consumer Price Index (CPI) adjustment. The fee schedule has been reviewed annually every year since 2015.

State law requires the City conduct a public hearing where testimony can be taken before any fees are added or existing fees are altered.

Discussion: Best management practices recommend conducting a comprehensive fee study every five years. In January 2020, staff began the process of performing a comprehensive fee study with City Council review tentatively planned for late April, to allow for approved fee adjustments beginning in July 2020. Due to the pandemic, these plans were put on hold. Staff intends to do a comprehensive fee study in the first half of FY 23-24.

The CPI adjustment applied to the fee schedule is 5.6%.

Police Department Fees:
 Addition of Firearm Dealer License City application fee, based on estimated staff time Employee Staffing Cost per
Hour
Time Used Fee
1 x Admin Records
Analyst
$154.64 40 minutes $100
 Addition of Carrying a Concealed Weapon (CCW) permit City application fee, based on estimated staff time
Employee Staffing Cost per
Hour
Time Used Fee
1 x Admin Records
Analyst
$154.64 45 minutes $115
 Removal of Animal Services Fees imposed and collected by Santa Cruz County Recreation Fees:
 Addition of Parks & Recreation Drop-In and Workshop registration fee – based on staff time for building set up and use.

Employee Staffing Cost per
Hour
Time Used Fee
1 x Rec. Coordinator $98.35 30 minutes $10
470
Item 7 G.
 Addition of July Parks & Recreation Month Drop-In activity fee – Existing activity fee prorated for special circumstances, such as health withdrawal.  Addition of Parent’s Night Out new program fee – Calculated based on estimated program size of 24 kids per event, staff time, and supplies.

Employee Staffing Cost per
Hour
Time Used Fee
1 x Recreation
Coordinator
$98.35 2 hrs per event $25
2 x Seasonal Staff $22.00 4 hrs per event $31
 Addition of Daily rate used only to calculate program fee – daily rate for new school break camps based on existing weekly rate.

Camp Length FY22/23 CPI Adjusted Rate
Resident/Non-Resident
2 Week Session $336 / $420
1 Week Session $170 / $210
Daily Rate for School Break Camps $34 / $42
 Addition of staffing required to prepare for or supervise Recreation activities fee – original fee recovered cost of field preparation by seasonal staff at $13/hour, this fee did not increase with CPI or wage increases; the new fee is designed to recover cost of staff time based on which staff performs duties.
 Addition of Art & Cultural Merchandise fee - cost plus 50% administration fee.  Addition of Art & Cultural Plein Air Artist application fee – Calculated to recover service fees for online management of applications and part of staff time spent on event.

Employee Staffing Cost per
Hour
Time Used Fee
1 x Rec. Manager $98.35 25 minutes $50
 Addition of Art & Cultural Plein Air Art Exhibition service fee based on contractual agreement with participating artist (30% retained by City, 70% paid to Artist).

Fiscal Impact: The Fiscal Year 2023-24 Budget will incorporate the amended fees and the amended Fee Schedule will go into effect July 1, 2023.

Attachments:

1. Resolution

2. FY 2023-2024 Fee Schedule
Report Prepared By: Leda Laidlaw-Hunter, Accountant I
Reviewed By: Jim Malberg, Finance Director; Julia Moss, City Clerk Approved By: Jamie Goldstein, City Manager
471
Item 7 G.

RESOLUTION NO. _____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAPITOLA
AMENDING THE CITY’S FEE SCHEDULE FOR
FISCAL YEAR 2023-2024
WHEREAS, the Government Code of the State of California, Section 66018 requires local agencies to notice and hold at least one open and public meeting prior to levying a new fee or increasing an existing fee; and
WHEREAS, the City Council of the City of Capitola has held a duly noticed public hearing on June 22, 2023, to consider amending existing fees charged for various City services; and WHEREAS, the City Council adopted Resolution No. 4036 on November 24, 2015, amending the City Fee Schedule in accordance with the comprehensive fee study also presented to City Council on November 24, 2015; and
WHEREAS, City staff researched and analyzed the cost of services provided by the City and determined the appropriateness of these adjusted rates relative to the cost of providing services; and
WHEREAS, the adjusted rates do not exceed the reasonable cost of providing these services; and
WHEREAS, this fee schedule sets forth the City’s cost recovery fee programs, which includes minimum deposits against which staff costs, adjusted for overhead, are assessed; and WHEREAS, such rates must be adjusted from time to time to reflect the true costs of such services; and
WHEREAS, all flat fees, with the exception of those established by law, may be adjusted annually by the Consumer Price Index (CPI) for the San Francisco, Oakland, San Jose area; and WHEREAS, the City of Capitola will analyze the fee schedule on a yearly basis to ensure hour estimates and staff costs are reasonable; and
WHEREAS, the City of Capitola has made available to the public the required data pursuant to Government Code Section 66018 for at least ten days prior to adoption of a revised fee schedule.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Capitola does hereby:
 Amend the City of Capitola Fee Schedule pursuant to the changes in Exhibit A attached hereto to become effective on July 1, 2023. Only the fees that are [highlighted/shown in redline] are being altered, amended, or increased. All other fees set forth in Exhibit A will remain in effect as originally adopted.; and 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 22 nd day of June 2023, by
the following vote:

AYES:

NOES:
472
Item 7 G.

ABSENT:

ABSTAIN: _______________________
Margaux Keiser, Mayor
ATTEST:
_______________________
Julia Moss, City Clerk
473
Item 7 G.

Description 2022/23 Amended Fee Schedule 2023/2024 Proposed Fee Schedule Administrative Decision Appeal Fee $562 $593
Bingo Permit $67 $71
Capitola Municipal Code 0.15 / page 0.15 / page
Capitola Municipal Code Supplement Service (Per
year) $0 $0
Copies:
1-5 copies $0 $0
6 or more copies (per copy) $0.25 / page $0.25 / page
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 + $54.18 1st Hour (Minimum) + $27.08 / hour Cost + $57.21 1st Hour (Minimum) + $28.60 / hour Simple film permit $52 $54
Major film permit $258 $272
Entertainment Permit Application Fee $41 $44
Single Event Permit $41 $44
Minor Entertainment Permit $174 $184
Regular Entertainment Permit $652 $689
Pet Shops and Kennel License Fee (Municipal Code
§ 5.20.020) set only by ordinance $23 $20
Returned Check Fee $41 $44
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) $25 $25
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)) $200.00 $200.00
Bandstand Rental Fee $233 / 4 hrs or $699 all day / deposit $1,500 $246 / 4 hrs or $738 all day / deposit $1,500 Outdoor Dining Rental Fees
Parking Spaces $3,400 annually for each space or partial space $3,400 annually for each space or partial space Sidewalks and non-parking spaces $18.00 per square foot annually $18.00 per square foot annually Outdoor Dining Maintenance Deposit
Sidwalks and non-parking spaces $500 $500
1-2 parking spaces $1,000 $1,000
3-5 parking spaces $1,500 $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 $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% 3%
Electric Vehicle Charging Fee $0.50 / hour $0.50 / hour Cannabis Annual License Fee $2,677 $2,827
Retail Cannabis Application Fee $1,745 $1,843

MISCELLANEOUS FEES
474
Item 7 G.

Description 2022/23 Amended Fee Schedule 2023/2024 Proposed Fee Schedule Special Event Permit $64 $68
Amplified Sound Permit (Municipal Code 9.12.040) $30 $32 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) $0 $0
Bicycle Licenses (Renewal) $0 $0
Citation Sign-Offs $0 $0
Photographs $19 + administration fees $20 + administration fees VIN verifications $17 $18
Video Tapes, Flash Drive, CD/DVD Production Cost + $54.18 1st Hour (Minimum) + $27.08 / hour
Cost + $57.21 1st Hour (Minimum) + $28.60 /
hour
Firearm Dealer License - City Application n/a $100
Local Firearm 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
Tobacco retail license $274 $289
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 Carrying a Concealed Weapon (CCW) Permit - City Application n/a $115 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 $28 $30
Administrative fee to release Impounded / Stored Vehicle $137 $145 Surf School Permit Fee $563 $594
Animal Services Fees
See Exhibit B "Animal Services Fees"

POLICE DEPARTMENT FEES
475
Item 7 G.

Description 2022/23 Amended Fee Schedule 2023/2024 Proposed Fee Schedule Encroachment Permits
Revocable Encroachment Permit - Outdoor Dining $230 $230 Non-Construction Items (includes materials storage within right-of-way road and sidewalk closures $71 $75
Village Sidewalk Encroachment Permit $41 $44
Village Parking Space Encroachment Permit (annually) $3,400 $3,400 Construction Items
Level A $215 $227
Level B $477 $503
Level C $951 $1,004
Level D $1,546 $1,633
Level E $2,143 $2,263
Residential Blue Curb Application Fee $225 $237
Residential Blue Curb Annual Fee $57 $60
Blanket Permits (repair and maintenance of existing facilities) $2,379 $2,513 Private Improvement Permits/Encroachment Agreement
Applications for Minor Permits $238 $251
Applications for Major Permits $595 $629
New Memorial Bench $1,077 $1,137
Replacement Memorial Bench $525 $554
Memorial Plaque $808 $854
Replacement Plaque $262 $277
Memorial Plaque (tree) $516 + Cost of Tree $545 + Cost of Tree Memorial Picnic Table $1,725 $1,822
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 $118 $124
Large Project Plan Review Deposit
Tier 2 $3,571 $3,771
Tier 3 & 4 $4,761 $5,028
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
476
Item 7 G.

Description 2022/23 Amended Fee Schedule 2023/2024 Proposed Fee Schedule Administration/Documents
Continuance Request - Applicant (2+) $175 $185
Staff Billing Rate Cost Cost
Appeals-by Applicant Cost Cost
Appeals- by City Officials $0 $0
Appeals- by Other $562 $594
Coastal Development Permit Appeal $0 $0
Appeals -Building/Zoning Code Violations $562 $594
Records Search/Research/Special Report Cost Cost
Administrative Permits
Tree Remova l- Staff Review $142 $150
Tree Removal -- 3 or more trees on a property $306 $323 Tree Installation Deposit (Refundable) $500 Deposit $500 Deposit Tree replacement in-lieu fee (if available) $600 per tree $600 per tree Tree removal w/ PC approval $1,000 deposit $1,000 deposit Commercial Sidewalk/Parking Lot Sale Permit $85 $89
Tenant Use Permit (MCUP)--Staff approval $86 $90
Transient Rental Occupancy Use Permit $596 $629
Home Occupation Use Permit $179 $189
Fence Permit- Staff approval $47 $50
Fence Permit- PC approval $893 $943
Sidewalk vendor permit $131 $138
Sidewalk vendor annual refuse fee $525 $555
Temporary Sidewalk Dining $86 $90
Temporary Use Administrative Permit $86 $90
Sign Permits
Temporary Signs and Banner Permits $42 $45
Signs permit - Staff Review $143 $151
Signs permit - PC Review $596 $629
Master Sign Program Cost; $3,000 min deposit Cost; $3,000 min deposit Village Sidewalk Sign Permit $73 $77
Design Permits
Residential Single Family/Minor Design Permit - Staff Review $870 $919 Residential Single Family - PC Review $2,977 $3,143
Residential Multi-Family - PC Review $4,165 $4,398
Commercial - PC Review $4,000 Deposit $4,000 Deposit
Secondary Dwelling Unit- Staff Review $596 $629
Secondary Dwelling Unit- PC Review $1,787 $1,887
Residential Multi-Family/Minor Design Permit - Staff Review $2,000 deposit $2,000 deposit Commercial Minor Design Permit $2,000 deposit $2,000 deposit Historic In-Kind Replacement Design Permit $500 deposit $500 deposit Outdoor Dining - Custom Deck $1,000 deposit $1,000 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 $1,756 $1,854 Conditional Use Permit - PC approval Cost; $3,000 min. deposit Cost; $3,000 min. deposit Temporary Use Permit $89 $94
Subdivisions
Certificate of Compliance & Lot Merger $596 $629
Boundary Line Adjustment $951 $1,004
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

PLANNING FEES
477
Item 7 G.

Description 2022/23 Amended Fee Schedule 2023/2024 Proposed Fee Schedule 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 Other Discretionary Permits
Variance $1,787 $1,887
PC review of minor modifications $1,606 $1,696
Coastal Development Permit $893 $943
Coastal Permit Exclusion $100 $106
Mobile home Park Change of Use or Closure $5,000 Deposit $5,000 Deposit Development Agreement $10,000 min. deposit $10,000 min. deposit Developer agreement annual review $2,500 deposit $2,500 deposit Specific Plan Cost; $5,000 min. deposit Cost; $5,000 min. deposit Permit Time Extension -Staff Review $596 $629
Permit Time Extension - PC Review $1,787 $1,887
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 $1,787 $1,887
Environmental Review
Negative Declaration (and Mitigated ND) Cost; $2,000 min deposit Cost; $2,000 min deposit EIR Processing Cost; + 21% of consultant; $10,000 min deposit Cost; + 21% 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 $1,787 $1,887
Conceptual Review Fee- PC and CC $2,678 $2,828
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 $282 $298 Research Fee - 1/2 hour minimum charge Cost Cost
Pre-Application Review $250 $264
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 Historical significance determination $4,250 deposit $4,250 deposit Inclusionary Housing
Inclusionary Housing - Unit Sale $596 $629
Inclusionary Housing - Unit Refinance $238 $252
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.

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) :

All Units $25 per sq. ft. $25 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 @ $25 per avg. sq. ft. per unit Total # units minus 7 @ $25 per avg. sq. ft. per unit 14 2 $0 $0
15-20 2 Total # units minus 14 @ $25 per avg. sq. ft. per unit Total # units minus 14 @ $25 per avg. sq. ft. per unit 21 3 $0 $0
22-27 3 Total # units minus 21 @ $25 per avg. sq. ft. per unit Total # units minus 21 @ $25 per avg. sq. ft. per unit 28 4 $0 $0
Rental Multi-Family $6 per sq. ft. $6 per sq. ft.

Affordable Housing Impact Fees
For Sale Housing Developments of Six or Less Units $25 per square foot $25 per square foot Rental Multi-Family $6 per square foot $6 per square foot Additional to Housing Units of 50% or more (charged to additional square footage only) $2.50 per square foot $2.50 per square foot 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 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.

6. The Community Development Director may establish a reasonable fee or deposit amount for permit 478
Item 7 G.

Description 2022/23 Amended Fee Schedule 2023/2024 Proposed 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 $27.98 $29.55
$501.00 to $2,000.00 $27.98 for the first $500.00 plus $3.63 for each additional $100.00 or fraction thereof.
$29.55 for the first $500.00 plus $3.83 for each
additional $100.00 or fraction thereof.
$2,001.00 to $25,000.00 $82.43 for the first $2,000.00 plus $16.66 for each additional $1000.00 or fraction
thereof.
$87.00 for the first $2,000.00 plus $17.59 for
each additional $1000.00 or fraction thereof.
$25,001.00 to $50,000.00 $465.61 for the first $25,000.00 plus $12.02 for each additional $1,000.00 or fraction
thereof.
$491.57 for the first $25,000.00 plus $12.69 for
each additional $1,000.00 or fraction thereof.
$50,001.00 to $100,000.00 $766.11 for the first $50,000.00 plus $8.34 for each additional $1,000.00 or fraction
thereof.
$808.82 for the first $50,000.00 plus $8.81 for
each additional $1,000.00 or fraction thereof.
$100,001.00 to $500,000.00 $1,183.11 for the first $100,000.00 plus $6.68 for each additional $1,000.00 or
fraction thereof.
$1,249.32 for the first $100,000.00 plus $7.05
for each additional $1,000.00 or fraction thereof.
$500,001.00 to $1,000,000.00 $3,855.11 for the first $500,000.00 plus $5.65 for each additional $1,000.00 or
fraction thereof.
$4,069.32 for the first $500,000.00 plus $5.97
for each additional $1,000.00 or fraction thereof.
$1,000,001.00 and up $6,680.11 for the first $1,000,000.00 plus $3.06 for each additional $1,000.00 or
fraction thereof.
$7,054.32 for the first $1,000,000.00 plus $3.23
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 $131 $0
Resubmitted Plan Check Fee $115.81 / hr. $122.30 / hr.

Building Permit Extension Fee $185 $0
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 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) $0 $0
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 $56 $0
Structural Review of Engineered Plans cost + 21% cost + 21% Outside Consultant Plan Review cost + 21% cost + 21%

BUILDING FEES
479
Item 7 G.

Description 2022/23 Amended Fee Schedule 2023/2024 Proposed Fee Schedule Grading Plan Review Fees
50 cubic yard or less $ - $ -
51 to 100 cubic yard $ - 27.98 $
101 to 1,000 cubic yards $ - 44.04 $
1,001 to 10,000 cubic yards $ - 57.15 $
10,001 to 100,000 cubic yards $57.16 for first 10,000 plus $29.18 for each additional 10,000 cubic yards
$60.36 for first 10,000 plus $30.81 for each
additional 10,000 cubic yards
100,001 to 200,000 cubic yards $319.75 for first 100,000 plus $15.77 for each additional 10,000 cubic yards
$337.69 for first 100,000 plus $16.65 for each
additional 10,000 cubic yards
200,001 cubic yards or more $461.69 for first 200,000 plus $8.64 for each additional 10,000 cubic yards
$487.57 for first 200,000 plus $9.12 for each
additional 10,000 cubic yards
Grading Permit Fees
50 cubic yard or less $ - $ -
51 to 100 cubic yard $ - $ -
101 to 1,000 cubic yards $44.04 for first 100 plus $20.84 for each additional 100 cubic yards
$46.51 for first 100 plus $22.01 for each
additional 100 cubic yards
1,001 to 10,000 cubic yards $231.60 for first 1,000 plus $17.26 for each additional 1,000 cubic yards
$244.60 for first 1,000 plus $18.23 for each
additional 1,000 cubic yards
10,001 to 100,000 cubic yards $386.94 for first 10,000 plus $78.57 for each additional 10,000 cubic yards
$408.67 for first 10,000 plus $82.97 for each
additional 10,000 cubic yards
100,001 to 200,000 cubic yards $1,094.07 for first 100,000 plus $43.45 for each additional 10,000 cubic yards
$1,155.40 for first 100,000 plus $45.88 for each
additional 10,000 cubic yards
480
Item 7 G.

Description 2022/23 Amended Fee Schedule 23/24 Fee Schedule All fees are evaluated annually to determine if they are competitive with other recreation programs in Santa Cruz County
Classes
Activity Fee (Instructor receives 65% of this fee, Department retains 35%) Registration Fee - Resident - Department retains this fee $19 $20 Drop-in and Workshop Registration Fee - Department retains this fee n/a $10 Online Class Registration fee-Department retains this fee 5.5% of Activity Fee 5.5% of Activity Fee Non-Resident Fee: in addition to Registration Fee - Department retains this fee $16 $17 Drop-in Activity Fee n/a Prorated cost of Session Activity Fee Senior Discount 10% of Activity Fee 10% of Activity Fee 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
Resident/non resident $5.16 / $5.85 per hour $5.45/$6.18 per hour *Hourly rate used only to calculate monthly fee amount
* Scholarships may be available
Late Pick-Up Fee $1 per minute $1 per minute
Parent's Night Out n/a $25/$31
Junior Guards
Resident/non resident $287 / $358 $303 / $378
U-19 resident/non resident $199 $190
Late Pick-Up Fee $1 per minute $1 per minute
Regionals 98 $103
* Scholarships may be available
Camp Capitola
*Daily rate used only to calculate program fee n/a $34/$42 All day 2 week session, resident/non resident $318 / $398 $336 / $420 1/2 day 2-week session, resident/non resident $161 / $200 $170 / $210 All day 1 week session, resident/non resident $161 / $200 $170 / $210 All day 1 week teen session, resident/non resident $287 / $358 $303/ $378 Junior Leader program 69.29023992 $73
Late Pick-Up Fee $1 per minute $1 per minute
Extended Care--daily add on, resident/non resident $12 $13 AM Extended Care--per 2 week session resident/non resident or AM & PM for 1 week long session $55
$58
PM Extended Care--per 2 week session resident/non resident $55 $58 Transportation/Lunch Break fee $60 $63
* Scholarships may be available
Family Camp
3 night family camp Adult (13+) / Child (3-12) $339.39 / $231.51 per night $358 / $244 per night Facility Rentals
Field and Courts hourly rental; non profit youth groups/other non profit & Cap residents/all others $14 / $27 / $36 $15/ $29 / $38
Jade Street Community Center
Rooms A&B hourly rent $46 $49
Room C hourly rent $63 $67
Patio hourly rent $9 $10
Kitchen hourly rent $23 $24
Entire Center hourly rent $164 $173
Non profit discount of Jade Street Facility rents 25% 25% Community Center Deposit
1 to 50 people $105 $111
51 to 150 people $262 $277
151 to 250 people $525 $554
Lost key fee $26 $27
Event vendor fee $105 per event $111
Staffing required to prepare for or supervise recreation activities $13 / hr Cost Notes: Resident include Soquel Union Elementary School District Costs mean staff costs adjusted for benefits, department overhead, and City overhead as 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.

Art & Cultural
Merchandise Fee Cost + 50% administration fee
Plein Air Artist Application Fee $50
Plein Air Art Exhibition service fee 30% retained by City, 70% paid to Artist

PARKS AND RECREATION FEES
481
Item 7 G.

Description 2022/23 Amended Fee Schedule 2023/2024 Proposed Fee Schedule Research Fee - 1/2 hour minimum charge Cost Cost
Print of an electronically available Photograph in
Collection 88
Digital Copies of Collection Items 21 22
Scan High Resolution Tiff File of any collection
item for a customer 25 26

HISTORICAL MUSEUM FEES
482
Item 7 G.

Fiscal Year 2023-24
Fee Schedule
June 22, 2023
483
Item 7 G.

Background
• Annual review of Fee Schedule as part of budget process • November 24, 2015 - City Council adopted current Fee Schedule • Consultant recommended annual review and Consumer Price Index (CPI) increase
• Most fees have been increased each year by the San Francisco Bay Area annual CPI rate
• FY 2023-24 CPI rate is 5.6% (calendar year 2022)
• Staff recommends increasing fees 5.6%
• History of annual increases:
• FY 2019-20 = 3.87%
• FY 2020-21 = 0%
• CPI was 3.31% however no increase due to COVID-19
• FY 2021-22 = 1.72%
• FY 2022-23 = 3.21%
484
Item 7 G.

Background (cont.)
• Cost of Service Fee Study
• Best Management Practice is to conduct a
comprehensive fee study every 5 years
• Staff began the fee study in January 2020
• Anticipating fee adjustments in July 2020
• Due to fiscal impacts from COVID-19 pandemic staff
slowed the process down
• Anticipate completing cost of service fee study this fall • Present results to City Council in late 2023 or early 2024
• Fee adjustments tentatively going into effect July 1, 2024
485
Item 7 G.

Proposed
Fee
Amendments
• Police Department
• Addition of Firearm Dealer
License City application fee of
$100
• Addition Carrying a Concealed
Weapon (CCW) permit City
application fee of $115
• Removal of Animal Service Fees
imposed and collected by Santa
Cruz County
486
Item 7 G.

Proposed
Fee
Amendments
• Recreation Fees
• Addition of Drop-In and
Workshop registration fee of $10
• Addition of July Drop-In activity
fee pro-rated cost of session
activity fee
• Addition of Parent’s Night Out of
$25 / $31
• Addition of daily rate program fee
of $34 / $42
• Addition of Art & Cultural
merchandise fee – cost plus 50%
• Plein Air application fee of $50
• Plein Air Art Exhibition fee 30%
retained by City; 70% to Artist
487
Item 7 G.

Recommendation
Conduct noticed public hearing
Adopt resolution
• Adopting the Fee Schedule for FY 2023-24
488
Item 7 G.

Capitola City CouncilJune 22, 2023

Capitola City Council
June 22, 2023