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Agenda packet

Capitola City Council
October 24, 2024

Document
Agenda packet
Meeting
October 24, 2024
Body
Capitola City Council
Pages
307
Original file
43.7 MB
Text extracted from the city's file for reading and search. Open the original on mccmeetings.blob.core.usgovcloudapi.net. That file is the official record.

REVISED 10/24/2024 3:45 PM
Additional Materials & Addition of Item 8D
City of Capitola
City Council Meeting Agenda
Thursday, October 24, 2024 – 6:00 PM
City Council Chambers
420 Capitola Avenue, Capitola, CA 95010
Mayor: Kristen Brown
Vice Mayor: Yvette Brooks
Council Members: Joe Clarke, Margaux Morgan, Alexander Pedersen Closed Session – 5:15 PM
Closed Sessions are not open to the public and held only on specific topics allowed by State Law (noticed below). An announcement regarding the items to be discussed in Closed Session will be made in the City Hall Council Chambers prior to the Closed Session. Members of the public may, at this time, address the City Council on closed session items only. There will be a report of any final decisions in City Council Chambers during the Open Session Meeting.
i. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Gov’t Code § 54956.8) Property: Esplanade Park (APN 035-26-209)
City Negotiator: Jamie Goldstein, City Manager
Under Negotiation: Lease of Real Property
Regular Meeting of the Capitola City Council – 6 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 Joe Clarke, Margaux Morgan, Alexander Pedersen, Yvette Brooks, and Mayor Kristen Brown.

2. Additions and Deletions to the Agenda

3. Presentations
Presentations are limited to eight minutes.

A. Presentation of the "Mayor for a Day" Youth Essay Contest B. Presentation of the Public Art Tile Project at Park Avenue and Washburn Avenue C. Presentation from Central Coast Community Energy

4. Report on Closed Session

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

A. Item 9A - Correspondence Received
1 City Council Meeting Agenda – October 24, 2024
City of Capitola Page 2
B. Item 9B - Correspondence Received

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

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

8. Consent Items
All items listed as “Consent Items” will be enacted by one motion in the form listed below. There will be no separate discussion on these items prior to the time the Council votes on the action unless members of the City Council request specific items to be discussed for separate review. Items pulled for separate discussion will be considered following General Government. Note that all Ordinances which appear on the public agenda shall be determined to have been read by title and further reading waived.

A. City Council Meeting Minutes
Recommended Action: Approve minutes from the regular meeting on October 10, 2024.

B. City Check Registers
Recommended Action: Approve check registers dated September 27, 2024, and October 4, 2024.

C. ABC-OTS Grant Program Award
Recommended Action: Adopt a resolution accepting a State of California Department of Alcoholic Beverage Control (ABC) Grant in the amount of $27,200 and authorize amending the FY 2024-25 general fund operating budget to increase revenues and expenditures by $27,200.

D. Corrected Resolution for the Coastal Commission Recommended Modifications to Capitola Zoning Code: Monarch Cove Inn
Recommended Action: Adopt a resolution rescinding and replacing Resolution No. 4394, accepting the California Coastal Commission modifications to amendments to the City of Capitola’s Local Coastal Program amendments to the Local Coastal Program Land Use Plan Map (General Plan Map), Municipal Code Chapter 17.28 Visitor Serving Overlay Zones and Zoning Map, and removal of Municipal Code Chapter 17.30 Visitor Serving District - Monarch Cove Inn with corrected Exhibit A.

9. 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. Public Art Project
Recommended Action: Approve the Monterey Avenue Railing Public Art Project and authorize the City Manager to execute a Professional Services Agreement with artist Bruce Harman in the amount of $50,000 for the Project.
2 City Council Meeting Agenda – October 24, 2024
City of Capitola Page 3
B. 2024 Zoning Code Updates First Reading
Recommended Action: 1) Introduce for first reading, by title only, waiving further reading of the text, an ordinance amending Capitola Municipal Code Title 17: Zoning, Chapter 18.03: Density Bonus, and the Zoning Map (collectively, the “Zoning Code Amendments”), as well as amending Chapter 9.61: Marijuana Sales, Processing and Cultivation; and 2) adopt a resolution authorizing submittal of the Zoning Code Amendments to the California Coastal Commission for the certification of an amendment to the Local Coastal Program.

Project Description: Application #24-0026 for Amendments to Capitola Municipal Code Title 17:

Zoning, Chapter 18.03: Density Bonus, and the Zoning Map, collectively known as the “Zoning Code Amendments,” as well as a conforming amendment to Chapter 9.61, Marijuana Sales, Processing and Cultivation. The proposed Zoning Code amendments will impact the development standards and regulations for properties Citywide. The Zoning Code and Zoning Map are part of the City’s Local Coastal Program (LCP), and amendments require certification by the California Coastal Commission before taking effect in the Coastal Zone. The amendments to Chapter 9.61 are conforming changes that implement the Zoning Code Amendments allowing for retail cannabis in the C-C zone when fronting 41st Avenue. The proposed Zoning Code Amendments are exempt from CEQA, pursuant to CEQA Guidelines Section 15061(b)(3).

C. Coastal Flooding Resource Guide
Recommended Action: Receive a report from the Police Department regarding winter weather planning and a coastal flood resource guide.

10. Adjournment - The next scheduled City Council meeting is on November 7, 2024, at 6:00 PM. _____________________________________________________
How to View the Meeting
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
How to Provide Comments to the City Council
Members of the public may provide public comments to the City Council in-person during the meeting.

If you are unable to attend in-person, please email your comments to [email protected] and they will be included as a part of the record for the meeting. Please be aware that the City Council will not accept comments via Zoom.

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. 3 City Council Meeting Agenda – October 24, 2024
City of Capitola Page 4
Agenda and Agenda Packet Materials: The City Council Agenda and the complete Agenda Packet are available for review on the City’s website and at Capitola City Hall prior to the meeting. 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.

Si desea asistir a esta reunión pública y necesita ayuda - como un intérprete de lenguaje de señas americano, español u otro equipo especial - favor de llamar al Departamento de la Secretaría de la Ciudad al 831-475-7300 al menos tres días antes para que podamos coordinar dicha asistencia especial o envié un correo electrónico a [email protected].

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 by clicking on the Home Page link “Meeting Agendas/Videos.” Archived meetings can be viewed from the website at any time. 4 Soquel Union Elementary
School District and
City of Capitola
Joint Beautification Project
City Council Presentation October 24, 2024
By Dr. Jessica Glantz Kiernan
5 Item 3 B.

Background
The original proposal was discussed between
council staff and district staff, then presented to the City of Capitola in August 2023. The projected
represented an idea spurred by Ann Wilson a well
known educator in the Soquel Union Elementary
School District who, as member of the community,
noticed that the cement wall on Washburn was an
amazing open canvas for a potential joint art
project, which could possibly curb graffiti. In
August 2023, the City Council approved the
project, and installation budget commitment.

The school district funded approximately $50,000
of Expanded Learning Opportunity Grant funds for
the joint-project.
6 Item 3 B.

Specifications and Scale
Project included:
● Installation of student
produced high-quality tile art
● Features organize formatted,
and designed by School
District staff.
7 Item 3 B.

Preliminary Sketches
8 Item 3 B.

Original Large Scale Mock-Up
Digital Rendering
9 Item 3 B.

Originally Proposed Themes
The themes associated with
this beautification project were
intended to reflect the wonders
of the great City of Capitola.
10 Item 3 B.

Installation
Installation of tiles was
expected to (and did) occur in
the summer and fall of 2024.

Final tile installation was
overseen by Roy Segura and
Steve Cartwright.

Background wall paint
arranged by Matt Kotila
11 Item 3 B.

Thoughtful and Multi-Partner Engagement
Idea Person
Superintendent
Main Street Teachers
Project Expediter
Amazing SUESD Students
Amazing SUESD Students
Amazing SUESD Students
Technology Coordinator
12 Item 3 B.

Tile Teachers, Makers, and Bakers
Soquel Teacher
NBMS Teacher
Main Street PBIS Coach
NBMS Counselor
NBMS Teacher
Ed Services Assistant Asst Superintendent of
Ed Services
Director of Maintenance,
Transportation and Operations Video
Production
13 Item 3 B.

Let’s Celebrate the Completed Project
14 Item 3 B.

ANNUAL PRESENTATION
to the

CITY OF CAPITOLA
Judith Young
Central Coast Community Energy
Senior Account Manager, Member Agencies
September 26, 2024
15 Item 3 C.

A PARTNERSHIP TO SUPPORT SHARED CUSTOMERS
16 Item 3 C.
2023 YEAR IN REVIEW
Lower emissions
Cleaner more reliable grid
Community investment
Stable and responsible rates
17 Item 3 C.
3CE PRIORITIZES INNOVATION
– One of California’s first solar +
storage projects
– The state’s first new geothermal
project in three decades
– The largest compressed air
energy storage in the world
18 Item 3 C.

ADDITIONALITY – THE KEY TO OUR

PROCUREMENT STRATEGY
Investing in a diverse portfolio of renewables coupled with innovative energy storage capacity
19 Item 3 C.

CALIFORNIA BREAKS RENEWABLE ENERGY

RECORDS
It’s working!
20 Item 3 C.
3CE DELIVERS POWER FOR GOOD
Responsible Rates Project Selection Criteria Rebates & Incentives 21 Item 3 C.

INVESTING IN YOUR COMMUNITY
Residential, Commercial, & Agriculture Rebates Available Agriculture
Electrification
Program
- $75,000
Electrify Your Home
$17,385
$2,500 per unit
Concierge - $24,000
New Construction
Electrification
$5,000
$250,000
Electric Bus - $200,000
$1000-4000
$150,000
Electrify Your Ride
Residential
Commerical & Ag
22 Item 3 C.

INVESTING IN YOUR COMMUNITY
Total Investment Over $691,235
$73,034
Electrify Your Ride
$11,300
Electrify Your
Home
$5,000
Charge, Electrify,
and Plan Your
Fleet
$333,201
Central Coast
Incentive Project
$280,000
23 Item 3 C.

INVESTING IN YOUR CITY’S ENERGY TRANSITION
Member Agency Programs:

Plan Your Fleet
Electrify Your Fleet
Charge Your Fleet
24 Item 3 C.

INVESTING IN YOUR CITY’S ENERGY TRANSITION
– Reach Code Program
– Charging Stations/Charge-ready –Member Agency
Communications
25 Item 3 C.

Thank You
12 3CE.org [email protected]
877-455-2223
Senior Account Manager (805) 693-2000
Judith Young [email protected]
26 Item 3 C.
1 Gautho, Julia
From: John <[email protected]>
Sent: Friday, October 18, 2024 12:21 PM
To: City Council; Gautho, Julia
Subject: Item 9A Project to Distract Drivers on our narrow Monterey Ave rail trail Follow Up Flag: Flag for follow up
Flag Status: Flagged
Hello Neighbors
Those fish all up the railing will result in someone geƫng hit in the already dangerous Fanmar/Monterey Crosswalk or the ‘bike lane’ (let’s spend 50K turning that to a raised crosswalk in anƟcipaƟon of wanƟng to slow speeding commuters/visitors using the lower village highway which will soon be the rail trail too).

Regardless why are we spending 50K on aluminum fish when we are in a crisis that necessitates an immediate sales tax increase like Measure Y (plus a school bond).

Budgets are where the radical soluƟons to our funding problems lie. Stop squandering them and start direcƟng them toward a market shaping instead of a market fixing approach.

Or spend 50K on fish to make an already dangerous locaƟon significantly more dangerous. The bummer is how easy it would be to improve instead of decline in our small system. C’est la vie.

Warmly JM
27 Item 5 A.
1 Gautho, Julia
From: Mick <[email protected]>
Sent: Tuesday, October 22, 2024 7:59 AM
To: City Council
Subject: Item 9A
Council members,
Please take a few hundred $$ from the $50,000 and repair the handrail on Wharf Road just east of the Shadowbrook sign. It's had that huge bent pipe in the rail for a few years and nothing has been done to repair it. Sad the city just accepts this kind of damage that detracts from the community.

Mick Routh
Sent from my iPad
Sent from my iPhone
28 Item 5 A.
1 Gautho, Julia
From: Molly Ording <[email protected]>
Sent: Thursday, October 24, 2024 4:22 PM
To: Lynne DeSpelder; City Council
Subject: Re: $50,000 Monterey Avenue Railing Art Project 9A ~ Please vote NO Hello All! I am planning to attend your meeting this evening and speak but my neighbor does bring up many issues that had not occurred to me! I am in agreement about the outlay of precious funds ( though I am aware there is separate fund for arts projects throughout the City but the timing with the tax increase is unfortunate!)
I have an idea for another look but it may still be distracting to drivers but, on the other hand, may slow some down which is something we have all been in search of for many years on this section of Monterey!
It will be up to the artist to ensure his work is safe and inaccessible for all who walk by and I trust he will. I look forward to speaking with you tonight!!
Sincerely,
MOLLY I. ORDING
218 Monterey Avenue
Capitola
Sent from my iPhone
On Oct 24, 2024, at 12:50 PM, Lynne DeSpelder <[email protected]> wrote:

Sent from my iPhone
Begin forwarded message:

From: [email protected]
Date: October 23, 2024 at 2:21:01 PM PDT
To: Yvette Brooks <[email protected]>, Kristen Brown <[email protected]>, Margaux Morgan
<[email protected]>, Joe Clarke <[email protected]>, Alexander Pedersen <[email protected]>
Cc: Lynne Ann DeSpelder <[email protected]>
Subject: $50,000 Monterey Avenue Railing Art Project 9A ~ Please vote NO

29 Item 5 A.
2 Council Members,
The location and design of this project is a danger to those using the sidewalk as well as providing a distraction to motorists. Living across the street from its location has demonstrated the danger.

There are several disadvantages to the construction and placement of sea art in this location. The price at $50,000 is a big commitment when there is a sales tax increase on the ballot. Small children will find the 3/16" cutout aluminum sheets next to the sidewalk "touchable" and likely to cut hands and fingers.

Drivers distracted by the artwork would create more conflicts as there is only a small bike lane on Monterey Avenue at this location. Please coordinate with the Art and Cultural Commission to rescind this project. It is too costly and too distracting to issue a contract for its completion.

Notices soliciting community feedback arrived earlier this week without much time to communicate our feedback.

Sincerely, Lynne Ann DeSpelder
Notices

30 Item 5 A.
1 Gautho, Julia
From: James Lloyd <[email protected]>
Sent: Thursday, October 24, 2024 3:45 PM
To: City Council; Brown, Kristen; Brooks, Yvette; Clarke, Joe; Margaux Morgan; Pedersen, Alexander
Cc: Gautho, Julia; Planning; Goldstein, Jamie ([email protected]); Samantha Zutler Subject: [PDF] CalHDF comment re ADU ordinance amendments for 10/24/24 Council meeting Attachments: Capitola - ADU Ordinance - 24 Oct 2024.pdf Dear Capitola City Council,
Please see attached CalHDF's public comments regarding the proposed amendments to the City's ADU ordinance, calendared as agenda item 9B for tonight's Council meeting.

Sincerely,
James M. Lloyd
Director of Planning and Investigations
California Housing Defense Fund
[email protected]
31 Item 5 B.
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35 Item 5 B.

City of Capitola
City Council Meeting Minutes
Thursday, October 10, 2024 – 6:00 PM
City Council Chambers
420 Capitola Avenue, Capitola, CA 95010
Mayor: Kristen Brown
Vice Mayor: Yvette Brooks
Council Members: Joe Clarke, Margaux Morgan, Alexander Pedersen 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 Clarke, Morgan, Pedersen, Vice Mayor Brooks, and Mayor Brown.

2. Additions and Deletions to the Agenda – Staff pulled Item 8D from the agenda.

3. Presentations
A. Presentation from Oneill's Sea Odyssey
B. Presentation from Vista Center for the Blind and Visually Impaired

4. Additional Materials
A. Item 8B – One email received after publication of the agenda packet.

B. Item 8C - One letter received after publication of the agenda packet.

C. Item 8D - One email received after publication of the agenda packet.

5. Oral Communications by Members of the Public
 Janet Edwards
 Terri Thomas
 Cheryl Van
 Marilyn Garrett
 Matt Arthur
 Carin Hanna
 Melinda Orbach
 Richard Lewis
 Keith Cahalen
 Tracey Weiss

6. Staff / City Council Comments
 City Manager Goldstein advised the public that the City is actively recruiting for all advisory groups.
 Public Works Director Kahn provided updates on upcoming projects that will impact traffic in Capitola.
 Police Chief Dally provided updates on traffic calming and traffic safety.  Council Member Clarke congratulated the Police Department on their social media outreach. 36 Item 8 A.

City Council Meeting Minutes – October 10, 2024
City of Capitola Page 2
 Council Member Pedersen requested that the filtered cigarette ban come back to the City Council at a future meeting; and requested that an item considering an Economic Development Committee be brought back to the City Council at a future meeting.  Vice Mayor Brooks requested that the City Manager provide an update to the City Council about upcoming traffic impacts and upcoming projects.
 Mayor Brown reminded the public of the City’s youth participation opportunities, reminded the public to drive safely, and reminded the public of the Monte Foundation Fireworks Show on October 13th.

7. Consent Items
A. City Council Meeting Minutes
Recommended Action: Approve minutes from the regular meeting on September 26, 2024.

B. Donations Report FY 2023-24
Recommended Action: Receive the Annual Donations and Contributions Report for Fiscal Year 2023-24.

Motion to approve the Consent Calendar: Council Member Morgan Second: Council Member Clarke
Voting Yea: Council Members Clarke, Morgan, Pedersen, Vice Mayor Brooks, and Mayor Brown

8. General Government / Public Hearings
A. Netherlands Transportation Study Visit
Recommended Action: Receive a presentation on the June 2024 Santa Cruz County Delegation Transportation Study Visit to the Netherlands with the Dutch Cycling Embassy.

Public Works Project Manager Mozumder and Matt Miller, Ecology Action, presented the staff report.

Public Comment:
 Marilyn Garrett
 Paula Bradley
 Janet Edwards
 Keith Cahalen
 Melinda Orbach
 Richard Lewis
B. RFQ for 41st Avenue Corridor Plan
Recommended Action: Authorize staff to issue a Request for Qualifications (RFQ) for a 41st Avenue Corridor Plan.

Community Development Director Herlihy presented the staff report.

Public Comments:
 Melinda Orbach
 Keith Cahalen
 Terri Thomas
 Matt Miller
The City Council discussed the timing of the City’s Strategic Plan Project, Annexation Study, and the proposed 41st Avenue Corridor Plan, and weighed the consequences of delaying the Corridor Plan to leverage the results of other ongoing projects. 37 Item 8 A.

City Council Meeting Minutes – October 10, 2024
City of Capitola Page 3
Motion to authorize staff to issue an RFQ for a 41st Avenue Corridor Plan: Council Member Clarke
Second: Council Member Pedersen
Voting Yea: Council Members Clarke, Morgan, Pedersen, Vice Mayor Brooks, and Mayor Brown
C. Capitola Mall Redevelopment Land Use Study
Recommended Action: Receive a presentation by Kosmont Companies on the findings of the Capitola Mall Redevelopment Land Use Study.

Community Development Director Herlihy and the Kosmont Company presented the staff report.

Public Comments:
 Terri Thomas
 Carpenters Local Union No. 46
 Kim Fry
 Janet Edwards
The City Council voiced appreciation for staff and the consultant’s work on this study and encouraged further partnership with the Capitola Mall owner/developer.

D. Council Parental Leave
Recommended Action: Adopt a resolution adopting an Administrative Policy permitting the City Council absences from official service occasioned by parental leave for up to 12 weeks. (Item pulled from the agenda by staff)

9. Adjournment - The meeting adjourned at 9:44 PM. The next regularly scheduled City Council meeting is on October 24, 2024, at 6:00 PM.
____________________________
ATTEST: Kristen Brown, Mayor
____________________________
Julia Gautho, City Clerk
38 Item 8 A.

Capitola City Council
Agenda Report
Meeting: October 24, 2024
From: Finance Department
Subject: City Check Registers
Recommended Action: Approve check registers dated September 27, 2024, and October 4, 2024.

Account: City Main
Date Starting Check # Ending Check # Payment
Count Amount
09/27/2024 107253 107377 134 $ 742,204.70
10/04/2024 107378 107415 39 $ 245,727.65
The main account check register dated September 13, 2024, ended with check #107252.

Account: Payroll
Date Starting
Check/EFT #
Ending
Check/EFT #
Payment
Count Amount
09/27/2024 26218 26340 123 $ 214,663.69
10/04/2024 26341 26458 118 $ 214,486.49
The payroll account check register dated September 13, 2024, ended with check #5884.

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

Check/
EFT Issued to Dept Description Amount
107271 Betz Works Inc PW Hoopers Ramp Repair $ 18,880.00 107274 Burke Williams and
Sorensen LLP CM August Legal Services $ 18,080.00
107276 Chavan & Associates LLP Fin FY24/25 Audit Services $ 14,700.00 107283 CSW Stuber Stroeh
Engineering Group PW Stockton Bridge Debris Mitigation Project Services $ 28,172.89 107285 Diamond D Company PW Upper Village Parking Lot
Sidewalk Improvements $ 107,867.00
107302 Kimley Horn & Associates
Inc PW Bay Ave / Hill St Roundabout Public Outreach $ 14,130.50 107309 MBASIA CM Liability Claim $ 12,677.07
107342 Pacific Gas & Electric PW September Monthly Utilities $ 17,855.39 107352 Santa Cruz Regional 911 PD FY24/25 Q2 Operating
Contribution $ 213,051.50
107367 Verde Design Inc PW Jade Street Accessibility Path Services $ 13,786.25
39 Item 8 B.
1797 CalPERS Member
Services Division CM PERS Contributions PPE 9/14/24 $ 68,468.38 1798 Employment Development
Department CM State Taxes PPE 9/14/24 $ 13,331.90
1799 Internal Revenue Service CM Federal Taxes & Medicare PPE 9/14/24 $ 42,893.20
1801 Voya Financial CM Employee 457 Contributions
PPE 9/14/24 $ 10,013.41
1803 Wells Fargo Bank Fin August Credit Card Charges $ 23,338.41 107381 Burke Williams and
Sorensen LLP CM August Additional Legal Services $ 12,214.00 107391 Fuse Construction Inc PW CWEP Wharf Entry Arch,
Donor Walls, Bathrooms $ 50,845.00
107404 Santa Cruz County Human
Services Dept CM Homeless Action Partnership Cost Share $ 39,950.00 1796 CalPERS Health Insurance CM October Health Insurance $ 84,815.09 Attachments:

1. 09-27-24 Check Register

2. 10-04-24 Check Register
Report Prepared By: Luis Ruiz, Accountant I
Reviewed By: Julia Gautho, City Clerk and Jim Malberg, Finance Director Approved By: Jamie Goldstein, City Manager
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Capitola City Council
Agenda Report
Meeting: October 24, 2024
From: Police Department
Subject: ABC-OTS Grant Program Award
Recommended Action: Adopt a resolution accepting a State of California Department of Alcoholic Beverage Control (ABC) Grant in the amount of $27,200 and authorize amending the FY 2024-25 general fund operating budget to increase revenues and expenditures by $27,200.

Background: The Department of Alcoholic Beverage Control (ABC), sponsored by the Office of Traffic Safety (OTS), through the National Highway Traffic Safety Administration (NHTSA) has awarded funds to local law enforcement agencies to utilize the Minor Decoy Program, Shoulder Tap Program, IMPACT Program and Holiday Enforcement. These funds help local law enforcement agencies reduce alcoholrelated crimes through training, prevention, community involvement, and enforcement. The Police Department has applied for and received similar grants from ABC over the years, the latest one in FY 2023-24. This grant is for FY 2024-25.

Discussion: With the help of the previous ABC grant funding received in FY 2023-24, Capitola’s Police Department provided the education and enforcement necessary to prevent a significant increase in alcohol-related offenses during the period of July 1, 2023, through June 30, 2024. Since this period, there have been several changes in licensee ownership, including an increase in the number of licensees from 78 in 2022 to the current total of 86.

Staff applied for and was awarded an ABC-OTS Grant in the amount of $27,200 for FY 2024-25. This funding is to be used for overtime to expand efforts in addressing underage and adult alcohol-related problems in the community. The grant funds will help staff to continue to increase the education of Capitola businesses and allow for increased enforcement of alcohol-related laws.

Fiscal Impact: No fiscal impact as there is no additional general funding required. Staff requests accepting the grant which will increase revenues and expenditures by $27,200. All funds received from the grant must be used for grant-related overtime.

Attachments:

1. Selection Letter

2. Draft Resolution
Report Prepared By: Esmeralda Gonzalez, Administrative Analyst Reviewed By: Julia Gautho, City Clerk; Andrew Dally, Chief of Police Approved By: Jamie Goldstein, City Manager
66 Item 8 C.

Budget Adjustment Request
Date
10/08/2024
Requesting Department *
Police
Type of Adjustment
Administrative
Council
Item #
Council Date
10/24/2024
Council Approval
Revenues
Account Number Account Description Increase/Decrease
1000-20-20-000-3320.100 State Grants - Operating $27,231.00 Total Revenues
$27,231.00
Expenditures
Account Number Account Description Increase/Decrease
1000-20-20-000-4130.200 Overtime - Grant Funded $26,781.00 1000-20-20-000-4400.100 Training & Memberships $450.00
Total Expenditures
$27,231.00
Net Impact
$0.00
Purpose
Department of Alcoholic Beverage Control's ABC-OTS Grant Program.

Department Head Approval
67 Item 8 C.

Finance Director Approval
City Manager Approval
68 Item 8 C.

Action History (all history times shown in Pacific Standard Time) Submit by Jim Malberg 10/8/2024 1:54:33 pm (Budget Amendment Request Submitted) Approve by Mike Kilroy 10/8/2024 1:58:19 pm (Routed to PD) Mike Kilroy assigned the task to Mike Kilroy
10/8/2024 1:56:47 pm
The task was assigned to Andy Dally, Mike Kilroy & Sarah Ryan 10/8/2024 1:54:34 pm
Approve (send to CM
for approval)
by Jim Malberg 10/8/2024 2:01:48 pm (Routed to Finance Director) The task was assigned to Jim Malberg
10/8/2024 1:58:19 pm
Approve (return to
Finance for
processing)
by Jamie Goldstein 10/8/2024 2:12:07 pm (Routed to CM for final approval) Jim Malberg reassigned the task to Jamie Goldstein
10/8/2024 2:08:10 pm
The task was assigned to Jim Malberg
10/8/2024 2:01:48 pm
69 Item 8 C.
70 Item 8 C.

RESOLUTION NO. XXXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAPITOLA ACCEPTING A STATE

OF CALIFORNIA DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL (ABC),

SPONSORED BY THE OFFICE OF TRAFFIC SAFETY (OTS), THROUGH THE NATIONAL

HIGHWAY TRAFFIC SAFETY ADMINISTRATION (NHTSA) GRANT IN THE AMOUNT OF $27,200 AND AMENDING THE FY 2024-25 BUDGET, INCREASING BOTH REVENUES AND EXPENDITURES BY $27,200.

WHEREAS, the State of California Department of Alcoholic Beverage Control (ABC), sponsored by the Office of Traffic Safety (OTS), through the National Highway Traffic Safety Administration (NHTSA) has awarded the Capitola Police Department a grant; and WHEREAS, a budget amendment must be enacted before funds can be accepted and expended for their intended and legally mandated purposes.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Capitola hereby accepts ABC-OTS Grant for $27,200, and authorizes an amendment to the FY 2024-25 budget by increasing both revenues and expenditures by $27,200 as follows:

Category FY 2024-25 Budget Amendment
ABC-OTS Grant Revenue: $ 27,200
Use of Funds:

Personnel Services $ 26,750
Operating Expenses $ 0
Training and Travel $ 450
BE IT FURTHER RESOLVED that the Finance Department shall record these changes into the City's accounting records in accordance with appropriate accounting practices.

BE IT FURTHER RESOLVED that these grants will be expended pursuant to the conditions of the grant agreement.

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 24th day of October 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:

Julia Moss, City Clerk
Margaux Keiser, Mayor
71 Item 8 C.
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Capitola City Council
Agenda Report
Meeting: October 24, 2024
From: Community Development Department
Subject: Corrected Resolution for the Coastal Commission Recommended Modifications to Capitola Zoning Code: Monarch Cove Inn Recommended Action: Adopt a resolution rescinding and replacing Resolution No. 4394, accepting the California Coastal Commission modifications to amendments to the City of Capitola’s Local Coastal Program amendments to the Local Coastal Program Land Use Plan Map (General Plan Map), Municipal Code Chapter 17.28 Visitor Serving Overlay Zones and Zoning Map, and removal of Municipal Code Chapter 17.30 Visitor Serving District - Monarch Cove Inn with corrected Exhibit A.

Background: On August 22, 2024, the City Council adopted Resolution No. 4394 accepting the California Coastal Commission’s redlines to the City’s proposed amendments to the Capitola General Plan Map, Zoning Map, Municipal Code Chapter 17.28 (Visitor Serving Overlay Zones), and removal of Municipal Code Chapter 17.30 (Visitor Serving District - Monarch Cove Inn). Following the meeting, Coastal Commission staff notified City staff that Exhibit A, attached to the resolution in the staff report, required minor corrections.

Discussion: On May 9, 2024, the Coastal Commission adopted several modifications to the City’s proposed code amendments for the Monarch Cove Inn site. These changes were described in the Coastal Commission staff report but were not consolidated into a final document. The additional redlines described in the Coastal Commission’s staff report were not included in Exhibit A of City Council Resolution No. 4394, adopted on August 22, 2024.

The purpose of this agenda item is to correct the resolution with an updated Exhibit A. Attachment 1 to this report is an updated resolution that includes the corrected Exhibit A with all Coastal Commission redlines as adopted on May 9, 2024. This resolution will rescind and replace Resolution 4394. Coastal Commission staff reviewed Exhibit A in Attachment 1 and concurred that it is the correct attachment.

The changes in the revised redline document include:
 The seaward side of the properties, including the Monarch Cove Inn structure, is rezoned as Visitor Serving - Monarch Cove Overlay designation for both the base zone and the overlay zone.

The footnote for vacation rental is updated to require 24-hour full-time staff onsite during vacation rental occupancy.
 The landward side of the properties is rezoned as Single-Family (R-1) base zone and Visitor Serving Overlay designation. Vacation rental allowed. The footnote for the vacation rental has been updated to specify full-time staff is not required onsite.  Adds section 17.28.030(G) which requires the following within any future development on the site:
o Adequate parking and fire/life safety ingress/egress to serve both inland (residential) and seaward (visitor-serving) properties.
o Dedication of a public access trail from El Salto Drive to the coastal bluff and to existing right-of -way along Escalona Drive and area trails. Such public access shall at minimum be provided parallel to the northern property boundary of APN 036-143-31 to connect with the existing public rights-of-way.
o Ingress/egress to any new development on the inland residential property shall be provided from Escalona Drive, unless deemed infeasible.

CEQA: The City found the Zoning Code and General Plan Land Use Map Amendments exempt from the requirements of CEQA pursuant to CEQA Guidelines Sections 15061(b)(3), the commonsense 72 Item 8 D.
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exception. In addition, pursuant to Public Resources Code section 21080.9, local government actions necessary for the preparation and adoption of a local coastal program are exempt from CEQA. Consistent with this provision, the Coastal Commission found that there were no other feasible alternatives or mitigation measures under the meaning of CEQA which would further reduce the potential for significant adverse environmental impacts, and the LCP amendment recommended by the Commission conforms with CEQA. Further, the proposed revisions to the amendments have no potential to cause a significant effect on the environment. For these reasons, the proposed revisions are exempt from CEQA.

Fiscal Impact: There is no fiscal impact associated with the Coastal Commission modifications.

Attachments:

1. Resolution Accepting Coastal Commission Modifications with Code Text and Map exhibits with corrected Exhibit A

2. CA Coastal Commission Post-Hearing Letter May 10, 2024

3. CA Coastal Commission staff report – May 9, 2024

4. Exhibit A incorrectly attached to August 22, 2024, staff report Report Prepared By: Brian Froelich, Senior Planner
Reviewed By: Julia Gautho, City Clerk
Approved By: Jamie Goldstein, City Manager
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RESOLUTION NO. XXXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAPITOLA RESCINDING AND REPLACING RESOLUTION NO. 4394 AND ACCEPTING CALIFORNIA COASTAL COMMISSION MODIFICATIONS TO THE CITY OF CAPITOLA’S LOCAL COASTAL

PROGRAM AMENDMENTS TO THE LOCAL COASTAL PROGRAM LAND USE PLAN MAP, CHAPTER 17.28 AND 17.30 OF THE ZONING CODE AND THE CAPITOLA

ZONING MAP, AND DIRECTING THE COMMUNITY DEVELOPMENT DIRECTOR TO

TRANSMIT THE ACCEPTANCE TO THE CALIFORNIA COASTAL COMMISSION WHEREAS, pursuant to authority delegated to the City of Capitola by the California Coastal Commission, the City of Capitola regulates development in the portion of the coastal zone that lies in the City boundary and that is outside of the original jurisdiction of the California Coastal Commission and the Local Coastal Program; and WHEREAS the Local Coastal Program Implementation Plan establishes specific land use and development regulations to implement the Local Coastal Program Land Use Plan, and Chapter 17: Zoning of the Capitola Municipal Code and the Capitola Zoning Map (Exhibit A) are part of Capitola’s Local Coastal Program Implementation Plan; and WHEREAS, the Local Coastal Program Land Use Plan is a comprehensive long-term plan for land use and physical development within the City’s coastal zone and includes the Coastal Land Use Plan Map, which is the adopted General Plan Land Use Map for the area within the coastal zone and included as Exhibit B; and
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, the Capitola City Council adopted the most recent comprehensive update to the City of Capitola Zoning Code (Title 17 of the Capitola Municipal Code) in 2021; and WHEREAS, the City Council adopted the General Plan Update on June 26, 2014; and
WHEREAS, the Capitola City Council conducted a duly noticed public hearing on November 10, 2022, at which the City Council introduced and performed a first reading of the revised Zoning Code and Zoning Map. On November 22, 2022, the City Council adopted the revised Zoning Code chapters 17.28 and 17.30, which amended the Capitola Municipal Code (Zoning) and Zoning Map; and
WHEREAS, following the City Council’s adoption of the amended Zoning Code and Zoning Map in 2022, Capitola staff submitted the amended Municipal Code and Zoning Map to the California Coastal Commission staff for review in preparation for Local Coastal Plan (LCP) certification; and
WHEREAS, on May 9, 2024, the California Coastal Commission held a public hearing on the amendments to the Capitola Local Coastal Program, Land Use Map, the Zoning Map, and Chapters 17:28 and 17:30 of the Zoning Code adopted by the City Council and certified the amendments to the Capitola Local Coastal Program with modifications; and
WHEREAS, on August 22, 2024, the City Council adopted Resolution 4394 with an 74 Item 8 D.
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incorrectly attached Exhibit A; and
WHEREAS, the City Council now intends to adopt the corrected version of Exhibit A; and
WHEREAS, the modifications proposed by the California Coastal Commission to the Capitola Local Coastal Program, Land Use Map, the Zoning Map, and Chapters 17:28 and 17:30 of the Zoning Code, are summarized in a letter dated May 10, 2024 from the Coastal Commission and included as Attachment 2 of the staff report; and WHEREAS, insofar as the proposed changes to the Capitola Land Use Map, Zoning Map, and Zoning Code are amendments to the Local Coastal Program and LCP Implementation Plan, the application of the proposed amendments in the coastal zone is statutorily exempt from California Environmental Quality Act (CEQA) review pursuant to CEQA Guidelines Section 15265 and the California Public Resources Code Section 21089.9.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED that the City Council hereby rescinds Resolution 4394 and its exhibits.

BE IT FURTHER RESOLVED AND ORDERED that the City Council accepts each of the modifications suggested by the California Coastal Commission to the Capitola Zoning Code, the Land Use Map, and the Zoning Map attached and incorporated as Exhibit A.

BE IT FURTHER RESOLVED AND ORDERED that the City Council hereby directs the Community Development Director or their designee to transmit this acceptance and any adopted ordinance that incorporates these modifications to the California Coastal Commission for concurrence by its Executive Director.

I HEREBY CERTIFY that the foregoing resolution was passed and adopted by the City Council of the City of Capitola on the 24th day of October 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Kristen Brown, Mayor
__________________________________
ATTEST:

Julia Gautho, City Clerk
75 Item 8 D.
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Exhibit A – Zoning Code Text Amendments and Zoning Map
Chapter 17.28

VISITOR SERVING OVERLAY ZONE
Sections:

17.28.010 Purpose of the visitor serving overlay zone.

17.28.020 Land use regulations.

17.28.030 Developmentstandards.

17.28.010 Purpose of the visitor serving overlay zone.

A. General. The purpose of the visitor serving (-VS) overlay zone is to provide the visiting public with a range of opportunitiesto enjoy Capitola’s coastal location. The -VS overlay zone accommodates a range of visitor serving uses including overnight accommodations, dining establishments, and active and passive recreational facilities.

Specific permitted uses depend on the resources present on the site and the surrounding land use and environmental context. The -VS overlay zone implements policies to maintain and enhance visitor serving uses in Capitola consistent with the general plan and local coastal program (LCP).

B. Visitor Serving Overlay Subzones. The -VS overlay zone is divided into subzones (see Figure 17.28-1) with unique land use and development standards:

1. Visitor Serving – Rispin (VS-R). Applies to the Rispin site (APNs 035-371-01 and 035-371-02).

2. Visitor Serving – Shadowbrook (VS-SB). Applies to the Shadowbrook site (APN 035-111-04).

3. Visitor Serving - Monarch Cove Inn (VS-MC). Applies to the Monarch Cove Inn site (APNs 036-143-31) and the southwestern portion of parcel 036-142-28 as depicted in Figure 17.28-1. The VS zoning overlay designation on the Monarch Cove Inn site acts as both the base zoning district and an overlay district (i.e., the permitted land uses identified in Table 17.28-1 are the only permitted land uses allowable on the site and the applicable land use regulations and development standards are limited to those identified in this chapter).

43. Visitor Serving – El Salto (VS-ES). Applies to the El Salto site (APN 036-143-35).

54. Visitor Serving – General (VS-G). Applies to all other parcels with a visitor serving subzone overlay designation including the residentially zoned parcels formerly associated with the Monarch Cove Inn (comprised of APN 036-142-27 and the northeastern portion of APN 036-142-28 as depicted in Figure 17.28-1) The -VS overlay designation on the Inn at Depot Hill site (APNs 036-121-38 and 036-121-33) acts as both the base zoning district and an overlay district (i.e., the permitted land uses identified in Table 17.28-1 are the only permitted land uses allowable on the site and the applicable land use regulations and development standards are limited to those identified in this chapter).
76 Item 8 D.
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Figure 17.28-1: Visitor Serving Districts
77 Item 8 D.
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17.28.020 Land use regulations.

A. Permitted Land Uses. Table 17.28-1 identifies land uses permitted in the -VS overlay subzones.

Table 17.28-1: Permitted Land Uses in the Visitor Serving Overlay Zone Key
P Permitted Use
M Minor Use Permit required
C Conditional Use Permit required
– Use not allowed
-VS Subzones
V Additional Regulations S-G VS-R VS-SB VS-MC VS-ES
Residential Uses
Employee Housing C [1] – – C –
Multifamily Dwellings C [2][11] – – - C [2]
One Caretaker Unit for On-Site Security C C C C C
Single-Family Dwellings C [3][11] – – - C [3]
Public and Quasi-Public Uses
Community Assembly C C – - –
Cultural Institutions C C – - –
Day Care Centers C – – - –
Habitat Restoration and Habitat Interpretive
Facilities
C C C C –
Parks and Recreational Facilities C C – C –
Public Parking Lots C C – - –
Public Paths and Coastal Accessways C C C C C
Public Safety Facilities C – – - –
Public Wharfs C – – - –
Schools, Public or Private – – – - –
Commercial Uses
Business Establishments that Provide
Commercial Places of Amusement or
Recreation, Live Entertainment, or Service of
Alcoholic Beverages
C [4] C [4] C
-
–
Business Establishments that Sell or Dispense
Alcoholic Beverages for On-Site
Consumption
C C C C –
Restaurants
Full Service C [5] C [5] C [5] - –
Lodging
Hotels, Inns, Bed and Breakfast,
and Hostels
C C –
C C
Campgrounds [6] C – – - –
Recreational Vehicle Parks C – – - –
78 Item 8 D.
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Vacation Rentals with onsite
manager
C[12] – –
C[12] –
Utilities, Major C C C C C
Utilities, Minor P P P P P
Wireless Communications Facilities See Chapter

17.104
Other Uses
Access Roadways C C C C C
Accessory Structures and Uses, New C [7] C C C C
Accessory Structures and Uses Established
Prior to Primary Use or Structure
C C –
C
–
Change of Visitor Serving Commercial Uses
within a Structure
C [8] – –
-
–
Food Service Accessory to a Lodging Use [9] C C – C C
Home Occupations C – – - – Section 17.96.040
Expansion of a Legal Nonconforming Use
within an Existing Structure
C – –
-
–
Legal Nonconforming Use Changed to a Use
of a Similar or More Restricted Nature
C – –
-
–
Live Entertainment C C C - –
Offices Accessory to Visitor Serving Use C C C C –
Parking Areas to Serve the Primary Use C C C C C
Retail Accessory to a Visitor Serving Use C C – C –
Temporary Assemblages of People, such as
Festivals, Fairs, and Community Events
C [10] C [10] C [10]
C [13]
–
Weddings C C C C –
Notes:
[1] Permitted only as an accessory use.
[2] Multifamily dwellings shall comply with development standards in the multifamily residential, medium density (RM-M) zoning district. [3] Single-family dwellings shall comply with development standards in the single-family residential (R-1) zoning district. [4] May not be located within two hundred feet of the boundary of a residential zoning district. [5] Drive-up and car service is not allowed.
[6] May include moderate intensity recreational uses, including tent platforms, cabins, parks, stables, bicycle paths, restrooms, and interpretive facilities.
[7] Intensification of the primary use is not allowed.
[8] The new use may not change the nature or intensity of the commercial use of the structure. [9] Permitted only to serve guests of the lodging use.
[10] Events may not exceed ten days and may not involve construction of permanent facilities. [11] Prohibited on the former Capitola Theater site (APNs 035-262-04, 035-262-02, 035-262-11, and 035-261-10) and the Inn at Depot Hill (APNs 036-121-38 and 036-121-33). For the residential Monarch Cove parcels (APNs 036-142-27 and the northeast portion of APN 036-142-28), single-family residential uses must meet the provisions of Section 17.28.030 (G). [12] Vacation rental allowed on VS-MC only with 24-hour, full time onsite staff in residence during times of occupancy. Vacation rental allowed on the residentially zoned parcels formerly associated with the Monarch Cove Inn (comprised of APN 036-142-27 and the northeast portion of APN 036-142-28) without a 24-hour, full time onsite staff in residence. [13] Limited to a single two-day or less event per year.

B. Civic Uses in the VS-R Overlay Subzone. The planning commission may allow additional civic uses in the VS-R overlay subzone beyond those specifically identified in Table 17.28-1 if the planning commission finds the additional civic use to be consistent with the purpose of the VS-R overlay subzone and compatible with existing uses present on the site. (Res. 4223, 2021; Ord. 1043 § 2 (Att. 2), 2020)

17.28.030 Development standards.

A. General. Table 17.28-2 identifies development standards that apply in the -VS overlay zone outside of the mixeduse village (MU-V) zoning district. 79 Item 8 D.
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Table 17.28-2: Development Standards in the Visitor Serving Zoning Districts -VS Overlay Zone Additional Standards
Parcel Area, Minimum 5,000 sq. ft.

Impervious Surface, Maximum VS-R: 25%
VS-SB, VS-MC, and VS-ES: 50% [1]
VS-G: No maximum
Floor Area Ratio, Maximum 0.25
Setbacks, Minimum See Section 17.28.030(B)
Height, Maximum 30 ft. Section 17.28.030(C)
Note:
[1] In the VS-SB overlay subzone, the impervious surface requirement applies to the parcel located directly adjacent to Soquel Creek. In the VSES overlay subzone, the impervious surface calculation excludes the portion of parcel 036-142-28 located outside of the Monarch Cove Inn.

B. Setbacks. The following setback requirements apply in the -VS overlay zone:

1. The planning commission may require front, side and rear setbacks through the design review process to provide adequate light and air, ensure sufficient distance between adjoining uses to minimize any incompatibility, and to promote excellence of development. Where a side or rear yard abuts residential property, a setback of at least ten feet shall be provided.

2. Front and exterior side yards shall not be used for required parking facilities.

3. For the visitor serving El Salto parcels located adjacent to the bluff top, new development shall adhere to the setback and development provision provided in the LCP natural hazards policies and in Chapter 17.68 (GH Geologic Hazards District).

4. To protect the waters and riparian habitat of Soquel Creek, new development on the Shadowbrook Restaurant and Rispin parcels shall adhere to the LCP natural systems policies and Chapter 17.64 (Environmentally Sensitive Habitat Areas).

C. Height Exceptions. With a recommendation from the planning commission, the city council may approve additional height up to a maximum of thirty-six feet in the -VS overlay zone outside of the MU-V zoning district when all of the following findings can be made:

1. The proposed development and design is compatible with existing land uses in surrounding areas, the general plan, and the LCP.

2. Streets and thoroughfares are suitable and adequate to serve the proposed development.

3. The proposed development does not produce shadows which may adversely affect the enjoyment of adjacent streets, buildings, or open space.

4. Major public views of the shoreline, as identified in Capitola’s local coastal program, are not blocked by the proposed development.

D. Landscaping. See Table 17.72-2 in Chapter 17.72 (Landscaping) for minimum required landscaping requirements for visitor serving properties.

E. Lighting. In addition to outdoor lighting standards in Section 17.96.110 (Outdoor lighting), the following lighting requirements apply in the -VS overlay zone:

1. All exterior lighting shall be minimized, unobtrusive, down-directed and shielded using the best available dark skies technology, harmonious with the local area, and constructed or located so that only the area intended is illuminated and off-site glare is fully controlled and that light spill, sky glow and glare impacts are minimized. 80 Item 8 D.
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2. Lighting of natural areas (such as creeks, riparian areas, the beach, etc.) shall be prohibited past the minimum amount that might be necessary for public safety purposes, except when temporarily permitted in conjunction with a temporary event.

3. The location, type and wattage of exterior lighting must be approved by the community development director prior to the issuance of building permits or the establishment of the use.

F. Coastal Development Permit. If a proposed development is located in the coastal zone, it may require a coastal development permit (CDP) as specified in Chapter 17.44 (Coastal Overlay Zone). Approval of a CDP requires conformance with the CDP findings for approval as specified in Section 17.44.130 (Findings for approval). (Res.
4223, 2021; Ord. 1043 § 2 (Att. 2), 2020).

G. Monarch Cove Inn /Monarch Cove Residential Properties Additional Requirements. The following additional requirements shall apply to the VS-MC subzone (i.e., APN 036-143-31 and the southwest portion of APN 036-142- 28) as well as the Monarch Cove residential properties. (i.e. APN 036-242-27 and the northeastern portion of APN 036-142-28) as depicted on Figure 17.28-1. Approval of any proposed development on these sites shall only be allowed if:
a. Adequate parking and fire/safety ingress/egress to serve both inland (residential) and seaward (visitor-serving) properties is provided.
b. Adequate public access is provided from El Salto Drive to the coastal bluff and to existing rights-of-way along Escalona Drive and area trails, including as may need to be relocated inland due to coastal erosion. Such public access shall, at a minimum, be provided parallel to the northern property boundary of APN 036-143-31 to connect with the existing public rights-of-way.
c. Unless determined to be infeasible, ingress/egress to any new development on the inland residential property shall be provided from Escalona Drive.
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Chapter 17.30
VISITOR SERVING DISTRICT – MONARCH COVE INN
Sections:

17.30.010 Applicability.

17.30.020 Purpose.

17.30.030 Architectural and site approval.

17.30.040 Conditionally permitted uses – Monarch Cove Inn.

17.30.050 Accessory uses.

17.30.060 Height.

17.30.070 Lot area.

17.30.080 Lot coverage.

17.30.090 Yards.

17.30.100 Parking.

17.30.110 Loading areas.

17.30.120 Landscaping and lighting.

17.30.010 Applicability.

The regulations set forth in this chapter apply to the Monarch Cove Inn parcels. (Res. 4223, 2021)

17.30.020 Purpose.

The purpose of the V-S district is to accommodate the visiting public with a range of opportunities to enjoy the city of Capitola’s coastal location. (Res. 4223, 2021)

17.30.030 Architectural and site approval.

A design permit shall be secured for the establishment and conduct of any conditional or accessory use in a V-S district as provided in Chapter 17.120. (Res. 4223, 2021)

17.30.040 Conditionally permitted uses – Monarch Cove Inn.

The following are the conditionally permitted uses allowed on the Monarch Cove Inn parcels and the portion of parcel 036-142-28 that is located between the two Monarch Cove Inn parcels:

A. Accessory structures and accessory uses appurtenant to any conditionally allowed use; B. Hotels, motels, hostels, inns; bed and breakfast lodging; C. Food service related to lodging;
D. Assemblages of people, such as festivals, not exceeding ten days and not involving construction of permanent facilities;
E. Accessory structures and uses established prior to establishment of main use or structure; F. Habitat restoration; habitat interpretive facility;
G. Live entertainment;
H. Public paths;
I. Business establishments that provide commercial places of amusement or recreation, live entertainment, or service of alcoholic beverages and that are located within two hundred feet of the boundary of a residential district; J. Weddings;
K. Business establishments that sell or dispense alcoholic beverages for consumption upon the premises; 82 Item 8 D.
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L. Other visitor serving uses of a similar character, density, and intensity as those listed in this section and determined by the planning commission to be consistent and compatible with the intent of this chapter and the applicable land use plan;
M. Offices and limited retail use, accessory to visitor serving uses; N. One caretaker unit for the purpose of providing on-site security; O. Access roadway;
P. Residential use by the owners and their family members of up to one unit per parcel on the three parcels, as long as a minimum of six guest bedrooms are available for visitor serving use within the three parcels.

Q. Nonfamily residential use during the off-season months (November through April). (Res. 4223, 2021)

17.30.050 Accessory uses.

The following are accessory uses permitted in a V-S district:

A. Signs complying with the applicable regulations set forth in the sign ordinance.

B. Accessory uses and buildings customarily appurtenant to a permitted use. (Res. 4223, 2021)

17.30.060 Height.

No structures shall exceed thirty feet in height. Exceptions up to thirty-six feet in height may be granted subject to approval by the city council upon the recommendation of the planning commission when the following findings can be made:

A. The proposed development and design are compatible with existing land uses of surrounding areas and the general plan;
B. Streets and thoroughfares are suitable and adequate to serve the proposed development.

C. The proposed development does not produce shadows which may adversely affect the enjoyment of adjacent streets, buildings or open space.

D. Major public views are not blocked by the proposed development. (Res. 4223, 2021)

17.30.070 Lot area.

The minimum lot area required shall be five thousand square feet. (Res. 4223, 2021)

17.30.080 Lot coverage.

There shall be no specific maximum lot coverage set except as follows:

A. Sufficient space shall be provided to satisfy off-street parking and loading area requirements, notwithstanding that all parking may be provided within a structure(s); B. Front yard and open space requirements shall be satisfied; C. For the Monarch Cove Inn parcels, the allowable impervious site coverage (e.g., buildings, paving, decks, etc.) is fifty percent. (Res. 4223, 2021)

17.30.090 Yards.

A. Front, side and rear yard setbacks may be required through design permit approval in order to provide adequate light and air, assure sufficient distance between adjoining uses to minimize any incompatibility and to promote excellence of development. Where a side or rear yard abuts residential property a setback of at least ten feet shall be provided.

B. Front yards and corner lot side yards shall not be used for required parking facilities.

C. For the Monarch Cove Inn parcels located adjacent to the bluff top, new development shall adhere to the setback and development provisions provided in the LUP’s natural hazards policies and in certified zoning Chapter 17.68 83 Item 8 D.
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(GH Geologic Hazards District). (Res. 4223, 2021)

17.30.100 Parking.

Parking standards shall be as provided in Chapter 17.76. (Res. 4223, 2021)

17.30.110 Loading areas.

Loading areas shall be as provided in Chapter 17.76. (Res. 4223, 2021)

17.30.120 Landscaping and lighting.

A minimum of five percent of the lot area shall be landscaped to ensure harmony with adjacent development in accordance with architectural and site approval standards. For the visitor serving Monarch Cove Inn parcels, fifty percent of the parcels shall consist of landscaped or open space areas. The planting of invasive plant species is prohibited. All exterior lighting shall be unobtrusive, harmonious with the local area and constructed or located so that only the area intended is illuminated and off-site glare is fully controlled. The location, type and wattage of the exterior lighting must be approved by the community development director prior to the issuance of building permits or the establishment of the use.
84 Item 8 D.
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Zoning Map
Existing Zoning Map
Proposed Zoning Map
85 Item 8 D.
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General Plan and Local Coastal Plan Land Use Map

Existing General Plan Land Use Map
Proposed General Plan Land Use Map
86 Item 8 D.

STATE OF CALIFORNIA — NATURAL RESOURCES AGENCY GAVIN NEWSOM, GOVERNOR

CALIFORNIA COASTAL COMMISSION CENTRAL COAST DISTRICT
725 FRONT STREET, SUITE 300
SANTA CRUZ, CA 95060
PHONE: (831) 427-4863
WEB: WWW.COASTAL.CA.GOV
May 10, 2024
(Sent electronically)
Katie Herlihy, Community and Development Director
City of Capitola Planning Department
420 Capitola Ave
Capitola, CA 95010
[email protected]
Subject: Coastal Commission Action on City of Capitola Local Coastal Program (LCP) Amendment No. LCP-3-CAP-22-0061-2-Part B (Monarch Cove Inn Redesignation)
Dear Ms. Herlihy:

At its meeting on May 9, 2024, the Coastal Commission took action on City of Capitola LCP Amendment No. LCP-3-CAP-22-0061-2-Part B (Monarch Cove Inn Redesignation). The Commission approved the proposed amendments to the Land Use Plan and Implementation Plan, if modified as suggested. A copy of the adopted findings and suggested modifications are included as attachments.

This letter formally transmits to you the Commission’s resolution of certification and adopted findings pursuant to Section 13544 of Title 14 of the California Code of Regulations. Pursuant to Section 13544, effective certification of LCP Amendment No.

LCP-3-CAP-22-0061-2-Part B, whereby the City may begin issuing coastal development permits subject to this amendment, will occur after:

1. The City, by action of the City Council: (a) acknowledges receipt of this resolution of certification, including the suggested modifications; and (b) accepts and agrees to the modifications and takes whatever formal action is required to satisfy the modifications (e.g., implementation of ordinances).

2. The Commission’s Executive Director reports to the Commission her determination that the City’s actions are legally adequate, and the Commission does not object to the Executive Director’s determination.

3. Notice of the certification of the LCP amendment is filed with the Secretary of the Resources Agency.

Coastal Commission staff will take care of items #2 and #3 above, following completion of item #1 by the City. Note that the Commission’s regulations provide that the Commission’s action of certification with the suggested modifications shall expire six months from the date of the Commission’s action, or on November 9, 2024. 87 Item 8 D.

Katie Herlihy, City of Capitola
LCP-3-CAP-22-0061-2-Part B (Monarch Cove Inn Redesignation)

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Please let me know if I can assist you in any way in completing action on this LCP amendment, or if you have any questions. We appreciate the City’s close coordination and collaboration on this LCP amendment.

Sincerely,
Kiana Ford
Coastal Planner
Central Coast District Office
Enclosure (Via Email): Adopted Staff Report with Suggested Modifications 88 Item 8 D.

STATE OF CALIFORNIA — NATURAL RESOURCES AGENCY GAVIN NEWSOM, GOVERNOR

CALIFORNIA COASTAL COMMISSION CENTRAL COAST DISTRICT
725 FRONT STREET, SUITE 300
SANTA CRUZ, CA 95060
PHONE: (831) 427-4863
[email protected]
WEB: WWW.COASTAL.CA.GOV
Th13a
Prepared April 19, 2024 for May 9, 2024 Hearing
To: Commissioners and Interested Persons
From: Kevin Kahn, Central Coast District Manager
Rainey Graeven, Central Coast District Supervisor
Kiana Ford, Coastal Planner
Subject: City of Capitola LCP Amendment Number LCP-3-CAP-22-0061-2-Part B (Monarch Cove Inn Site Redesignation)

SUMMARY OF STAFF RECOMMENDATION
The City of Capitola is proposing to make changes to its Local Coastal Program (LCP) Land Use Designation Map, which is a component of the LCP’s Land Use Plan (LUP), as well as the LCP’s Zoning Code Map and portions of the Zoning Code text, which are components of the LCP’s Implementation Plan (IP), in relation to the Monarch Cove Inn, formerly known as the El Salto Resort. The Monarch Cove Inn site (of which there remain three parcels) is currently zoned VS (Visitor-Serving) with a corresponding visitor-serving land use designation and the City-proposed amendment would convert the entire site to be zoned R-1 (single-family residential) with a visitor-serving (VS) overlay and a corresponding single-family residential land use designation. In other words, the amendment seeks to facilitate the conversion of the site’s existing overnight accommodations to residential uses.

The Monarch Cove Inn site is located at the downcoast end of the City’s Depot Hill area, itself just downcoast from Capitola Village, and it sits atop 80-foot-tall coastal bluffs overlooking Monterey Bay. The project site is the last visitor-serving overnight accommodation in the area, and it dates back to the late 1800s when it was used as a summer retreat for English families. The property went through various changes over the decades, including diminishing in size as sections were sold off or lost to fires, but it has generally remained in its current state since the current owners acquired the property in 1989. The site consists of a 11-room bed and breakfast inn, comprised of a 9-room Victorian house, two separate stand-alone cottages with one-bedroom suites, an outdoor deck area (used for weddings, etc.), office and storage buildings, two small parking lots, a public walking trail (that winds through the property and along the coastal bluff), and open space areas. The property has a long history of operating as overnight accommodations, both before and since adoption of the Coastal Act, and offers a unique visitor-serving experience with sweeping views of the Monterey Bay. However, in recent years, the financial feasibility of operating the bed and breakfast at the site has been called into question (and several attempts at major development upgrades have 89 Item 8 D.

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been met with neighborhood opposition) and the owners have sought to convert the entire site to residential uses.

The City sought to change both the land use and zoning designations at the site to better facilitate residential uses when the City’s IP underwent a comprehensive update in 2021. However, Commission staff recommended the Commission not certify such designation changes at that time, as doing so would be inconsistent with applicable Coastal Act provisions that prioritize public recreational access and visitor-serving accommodation uses, including specifically oceanfront properties such as this one.

Such a conversion would result in the loss of an exceptionally unique offering that is open and available to the general public for overnight accommodations use. At that time, Commissioners were interested in understanding whether a different balancing between visitor-serving overnight accommodations uses and residential uses could be identified for the Monarch Cove Inn site, one that didn’t completely change the site to residential uses, and thus the Monarch Cove Inn provisions were removed from the Commission’s amendment approval, and the Commission directed staff to work with the City and the property owners to come up with other alternative solutions.

And while the City’s proposed amendment is essentially a redo of that which was proposed in 2021, all parties have worked together since the City’s submittal to craft an amendment that more appropriately balances visitor-serving and residential needs given the unique context of this site. The site is large, comprised of some 52,000 square feet spread across three separate parcels, with the majority of the visitor-serving components on the seaward parcel. Thus, in analyzing this unique site holistically, it is apparent that the majority of coastal resources and visitor-serving amenities are contained on the seaward-most parcel, including sweeping views of the sea, public walking trails (including to the monarch butterfly grove along the downcoast side of the property), and the overnight accommodations (mostly contained in the large Victorianera house). In contrast, the most landward parcel mainly contains storage and support services (such as office space) for the Inn, and the middle parcel contains the only ingress/egress to the site and provides parking spaces for both overnight and day-use visitors, and thus provides an important connection point to access the visitor-serving resources on the site. While additional overnight accommodation units and the Inn’s storage/office are critical to support the Inn itself and ongoing visitor-serving use of the seaward-most parcel, the storage and office space can likely be reimagined and reconfigured onto the seaward parcel.

Staff is therefore recommending a number of modifications to the proposed amendment to preserve the seaward parcel and a portion of the middle parcel under a visitor-serving zoning designation with a corresponding visitor-serving land-use designation, while converting the landward parcel and a portion of the middle parcel to a residential zoning/land-use designation with a visitor-serving overlay. This change is approvable in that it appropriately provides for a mix of uses, including additional residential uses on the landward property at a similar scale and character to the nearby residences, but also importantly protecting the numerous visitor-serving resources for the public on the seaward property. Suggested modifications are thus included to effectuate this mix, including with policy language that also protects the site’s trail connections, ingress/egress, and overall compatibility between residential and visitor-serving uses at 90 Item 8 D.

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the site and nearby neighborhood. Importantly, and based on a thoughtful collaboration, City staff and the Monarch Cove Inn property owners are in agreement with and amenable to such modifications.

In conclusion, staff thanks the City and property owners for helping craft a mutually agreeable amendment that respects the Coastal Act and LUP, and can provide some finality to the land use questions at this site, including providing for the residential uses the owners seek and the visitor-serving uses the Coastal Act and LUP protect for the visiting public. With the suggested modifications, the LUP would conform to the Coastal Act and the IP would be consistent with and adequate to carry out the LUP, which are, respectively, the standards of review. Accordingly, staff recommends that the Commission approve the amendment with the identified suggested modifications. The required motions and resolutions are found on pages 5-6 below.

Staff Note: LCP Amendment Action Deadline
This proposed LCP amendment was filed as complete on March 20, 2024. The proposed amendment affects both the LUP and IP components of the LCP, and the 90- working-day action deadline is July 29, 2024. Thus, unless the Commission extends the action deadline (it may be extended by up to one year), the Commission has until July 29, 2024 to take a final action on this LCP amendment.

Therefore, if the Commission fails to take a final action in this case (e.g., if the Commission instead chooses to postpone/continue the LCP amendment consideration), then staff recommends that, as part of such non-final action, the Commission extend the deadline for final Commission action on the proposed amendment by one year. To do so, staff recommends a YES vote on the motion below. Passage of the motion will result in a new deadline for final Commission action on the proposed LCP amendment. The motion passes only by an affirmative vote of a majority of the Commissioners present.

Alternative Time Extension Motion: I move that the Commission extend the time limit to act on City of Capitola Local Coastal Program Amendment Number LCP3-CAP-22-0061-2-Part B to July 29, 2025, and I recommend a yes vote. 91 Item 8 D.

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TABLE OF CONTENTS

1. MOTIONS AND RESOLUTIONS ........................................................................ 5

2. SUGGESTED MODIFICATIONS......................................................................... 7

3. FINDINGS AND DECLARATIONS................................................................... 11 A. Background and Description of Proposed LCP Amendment .............................. 11 B. Evaluation of Proposed LCP Amendment .......................................................... 13 C. California Environmental Quality Act (CEQA)..................................................... 20

EXHIBITS
Exhibit 1: Project Site Map
Exhibit 2: Project Site Photos
Exhibit 3: Proposed Land Use Designation Changes
Exhibit 4: Proposed Zoning Map Designation Changes and IP Text

CORRESPONDENCE
92 Item 8 D.

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1. MOTIONS AND RESOLUTIONS
Staff recommends that the Commission, after public hearing, approve the proposed LUP and IP amendments with suggested modifications. The Commission needs to make two motions on the LUP amendment and two motions on the IP amendment in order to act on this recommendation. In each case, the proposed amendment in each category needs to first be denied, and then approved if modified, to complete the staff recommendation.

A. Deny the LUP Amendment as Submitted
Staff recommends a NO vote on the following motion. Failure of this motion will result in denial of the LUP amendment as submitted and adoption of the following resolution and findings. The motion passes only by an affirmative vote of a majority of the appointed Commissioners.

Motion: I move that the Commission certify Land Use Plan Amendment LCP-3- CAP-22-0061-2-Part B as submitted by the City of Capitola, and I recommend a no vote.

Resolution to Deny: The Commission hereby denies certification of Land Use Plan Amendment LCP-3-CAP-22-0061-2-Part B as submitted by the City of Capitola and adopts the findings set forth below on the grounds that the Land Use Plan Amendment as proposed does not conform with the policies of Chapter 3 of the Coastal Act. Certification of the Land Use Plan Amendment would not comply with the California Environmental Quality Act because there are feasible alternatives or mitigation measures which could substantially lessen any significant adverse impact which the Land Use Plan Amendment may have on the environment.

B. Certify the LUP Amendment with Suggested Modifications Staff recommends a YES vote on the following motion. Passage of the motion will result in certification of the LUP amendment with suggested modifications and adoption of the following resolution and findings. The motion to certify with suggested modifications passes only upon an affirmative vote of the majority of the appointed Commissioners.

Motion: I move that the Commission certify Land Use Plan Amendment LCP-3- CAP-22-0061-2-Part B for the City of Capitola if it is modified as suggested in this staff report, and I recommend a yes vote.

Resolution to Certify: The Commission hereby certifies Land Use Plan Amendment LCP-3-CAP-22-0061-2-Part B for the City of Capitola if modified as suggested and adopts the findings set forth below on the grounds that the Land Use Plan Amendment with suggested modifications will meet the requirements of and be in conformity with the policies of Chapter 3 of the Coastal Act.

Certification of the Land Use Plan Amendment if modified as suggested complies with the California Environmental Quality Act because either 1) feasible mitigation measures and/or alternatives have been incorporated to substantially lessen any significant adverse effects of the plan on the environment, or 2) there 93 Item 8 D.

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are no further feasible alternatives or mitigation measures that would substantially lessen any significant adverse impacts which the Land Use Plan Amendment may have on the environment.

C. Deny the IP Amendment as submitted
Staff recommends a YES vote on the motion below. Passage of this motion will result in rejection of the Implementation Plan amendment as submitted and the adoption of the following resolution and findings. The motion passes only by an affirmative vote of a majority of the Commissioners present.

Motion: I move that the Commission reject Implementation Plan Amendment LCP-3-CAP-22-0061-2-Part B as submitted by the City of Capitola, and I recommend a yes vote.

Resolution to Deny: The Commission hereby denies certification of LCP Amendment Number LCP-3-CAP-22-0061-2-Part B as submitted by the City of Capitola and adopts the findings set forth below on grounds that the Implementation Plan Amendment as submitted does not conform with, and is inadequate to carry out, the provisions of the certified Land Use Plan.

Certification of the Implementation Plan Amendment would not meet the requirements of the California Environmental Quality Act as there are feasible alternatives and mitigation measures that would substantially lessen the significant adverse impacts on the environment that will result from certification of the Implementation Plan Amendment as submitted.

D. Certify the IP Amendment with Suggested Modifications Staff recommends a YES vote on the motion below. Passage of this motion will result in certification of the Implementation Plan amendment with suggested modifications and the adoption of the following resolution and findings. The motion to certify with suggested modifications passes only by an affirmative vote of a majority of the Commissioners present:

Motion: I move that the Commission certify LCP Amendment Number LCP-3-CAP22-0061-2-Part B as submitted by the City of Capitola if it is modified as suggested in this staff report, and I recommend a yes vote.

Resolution to Certify: The Commission hereby certifies LCP Amendment Number LCP-3-CAP-22-0061-2-Part B, if modified as suggested, and adopts the findings set forth below on grounds that the Implementation Plan Amendment with the suggested modifications conforms with, and is adequate to carry out, the provisions of the certified Land Use Plan. Certification of the Implementation Plan Amendment if modified as suggested complies with the California Environmental Quality Act, because either 1) feasible mitigation measures and/or alternatives have been incorporated to substantially lessen any significant adverse effects of the plan on the environment, or 2) there are no further feasible alternatives and mitigation measures that would substantially lessen any significant adverse impacts on the environment.
94 Item 8 D.

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2. SUGGESTED MODIFICATIONS
The Commission hereby suggests the following modifications to the proposed Land Use Plan (LUP) amendment, which are necessary to make the requisite Coastal Act findings, and the proposed Implementation Plan (IP) amendment, which are necessary to make the requisite LUP consistency findings. If the City of Capitola accepts the suggested modifications within six months of Commission action (i.e., by November 9, 2024), by formal resolution of the City Council, the modified amendment will become effective upon the Executive Director’s notifying the Commission that this acceptance has been properly accomplished. Text in underline and cross-out format denotes proposed text to be added/deleted by the City, and text in double underline and double cross out format denotes proposed text to be added/deleted by the Commission.

1. LUP Map Changes. Modify the proposed LUP Land Use Designations Map for the seaward Monarch Cove Inn parcel (APN 036-143-31) and a portion of the middle parcel (APN 036-142-28) (as shown in Exhibit 3) from an R-1 (Single-Family Residential) land use designation with a VS (Visitor-Serving) overlay to a VS (Visitor Serving) land use designation with a VS (Visitor-Serving) overlay.

2. IP Map Changes. Modify the proposed IP Zoning Map for the seaward Monarch Cove Inn parcel (APN 036-143-31) and a portion of the middle parcel (APN 036-142- 28) from an R-1 (Single-Family Residential) zoning designation with a VS (VisitorServing) overlay to a VS (Visitor-Serving) zoning designation with a VS (VisitorServing) overlay (as shown in Exhibit 4).

3. IP Text Changes. Modify proposed IP Sections 17.28.010(B)(3) and

17.28.010(B)(4) as follows:

17.28.010(B)(3): Visitor Serving – Monarch Cove Inn (VS-MC). Applies to the Monarch Cove Inn site (APNs 036-143-31& 036-142-27) and the portion of parcel 036-142-28 that is located between the two Monarch Cove Inn parcels and the southwestern portion of APN 036-142-28 as depicted in Figure 17.28-1. The VS zoning overlay designation on the Monarch Cove Inn site acts as both the base zoning district and an overlay district (i.e., the permitted land uses identified in Table

17.28-1 are the only permitted land uses allowable on the site and the applicable land use regulations and development standards are limited to those identified in this chapter).

17.28.010(B)(4): Visitor Serving – General (VS-G). Applies to all other parcels with a visitor serving subzone overlay designation including the residentially zoned parcels formerly associated with the Monarch Cove Inn (comprised of APN 036-142- 27 and the northeastern portion of APN 036-142-28 as depicted in Figure 17.28-1).

The -VS zoning overlay designation on the Inn at Depot Hill site (APNs 036-121-38 and 036-121-33) acts as both the base zoning district and an overlay district (i.e., the permitted land uses identified in Table 17.28-1 are the only permitted land uses allowable on the site and the applicable land use regulations and development standards are limited to those identified in this chapter). 95 Item 8 D.

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4. IP Map Changes. Modify “Figure 17.28-1: Visitor Serving Districts” as follows:

5. IP Table 17.28-1 changes. Modify Table 17.28-1 as follows:

TABLE 17.28-1: PERMITTED LAND USES IN THE VISITOR SERVING OVERLAY ZONE Key
P Permitted Use
M Minor Use Permit required
C Conditional Use Permit required
– Use not allowed
-VS Subzones
Additional
VS-G VS-R VS-SB VS-MC VS-ES Regulations
Residential Uses
Employee Housing C [1] – – -C –
Multifamily Dwellings C [2][11] – – - C [2]
One Caretaker Unit for On-Site Security C C C C C
Single-Family Dwellings C [3][11] – – -C [3][12] C [3]
Public and Quasi-Public Uses
Community Assembly C C – - –
Cultural Institutions C C – - –
Day Care Centers C – – - –
96 Item 8 D.

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Habitat Restoration and Habitat
Interpretive Facilities
C C C C –
Parks and Recreational Facilities C C – C –
Public Parking Lots C C – - –
Public Paths and Coastal Accessways C C C C C
Public Safety Facilities C – – - –
Public Wharfs C – – - –
Schools, Public or Private – – – - –
Commercial Uses
Business Establishments that Provide
Commercial Places of Amusement or
Recreation, Live Entertainment, or
Service of Alcoholic Beverages
C [4] C [4] C
-
–
Business Establishments that Sell or
Dispense Alcoholic Beverages for OnSite Consumption
C C C
C
–
Restaurants
Full Service C [5] C [5] C [5] - –
Lodging
Hotels, Inns, Bed and
Breakfast, and Hostels
C C – C C
Campgrounds [6] C – – - –
Recreational Vehicle Parks C – – - –
Vacation Rentals with onsite
manager
--C[12] – – C[12] –
Utilities, Major C C C C C
Utilities, Minor P P P P P
Wireless Communications Facilities See
Chapter

17.104
Other Uses
Access Roadways C C C C C
Accessory Structures and Uses, New C [7] C C C C
Accessory Structures and Uses
Established Prior to Primary Use or
Structure
C C –
C
–
Change of Visitor Serving Commercial
Uses within a Structure
C [8] – – - –
Food Service Accessory to a Lodging
Use [9]
C C – C C
Home Occupations C – – - – Section 17.96.040
Expansion of a Legal Nonconforming Use
within an Existing Structure
C – – - –
Legal Nonconforming Use Changed to a
Use of a Similar or More Restricted
Nature
C – –
-
–
97 Item 8 D.

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Live Entertainment C C C - –
Offices Accessory to Visitor Serving Use C C C C –
Parking Areas to Serve the Primary Use C C C C C
Retail Accessory to a Visitor Serving Use C C – C –
Temporary Assemblages of People, such
as Festivals, Fairs, and Community
Events
C [10] C [10] C [10]
C[13]
–
Weddings C C C C –
Notes:
[1] Permitted only as an accessory use.
[2] Multifamily dwellings shall comply with development standards in the multifamily residential, medium density (RM-M) zoning district.
[3] Single-family dwellings shall comply with development standards in the single-family residential (R-1) zoning district. [4] May not be located within two hundred feet of the boundary of a residential zoning district. [5] Drive-up and car service is not allowed.
[6] May include moderate intensity recreational uses, including tent platforms, cabins, parks, stables, bicycle paths, restrooms, and interpretive facilities.
[7] Intensification of the primary use is not allowed.
[8] The new use may not change the nature or intensity of the commercial use of the structure. [9] Permitted only to serve guests of the lodging use.
[10] Events may not exceed ten days and may not involve construction of permanent facilities. [11] Prohibited on the former Capitola Theater site (APNs 035-262-04, 035-262-02, 035-262-11, and 035-261-10) and the Inn at Depot Hill (APNs 036-121-38 and 036-121-33). For the residential Monarch Cove parcels (APNs 036-142-27 and the northeast portion of APN 036-142-28), single-family residential uses must meet the provisions of Section 17.28.030(G). [12] Allowed in conjunction with overnight accommodation use (at least one on property) or grant of public access to a viewpoint. [12] Vacation rental allowed on VS-MC only with 24-hour, full time onsite staff in residence during times of occupancy. Vacation rental allowed on the residentially zoned parcels formerly associated with the Monarch Cove Inn (comprised of APN 036-142-27 and the northeast portion of APN 036-142-28) without a 24-hour, full time onsite staff in residence. [13] Limited to a single two-day or less event per year.

6. IP Text Changes. Add section 17.28.030(G) to IP Sections 17.28.030 as follows:

17.28.030(G): Monarch Cove Inn/Monarch Cove Residential Properties Additional Requirements. The following additional requirements shall apply to the VS-MC subzone (i.e., APN 036-143-31 and the southwest portion of APN 036-142- 28) as well as the Monarch Cove residential properties (i.e., APN 036-242-27 and the northeastern portion of APN 036-142-28) as depicted in Figure 17.28-1.

Approval of any proposed development on these sites shall only be allowed if:
a. Adequate parking and fire/safety ingress/egress to serve both inland (residential) and seaward (visitor-serving) properties is provided.
b. Adequate public access is provided from El Salto Drive to the coastal bluff and to existing rights-of-way along Escalona Drive and area trails, including as may need to be relocated inland due to coastal erosion. Such public access shall, at a minimum, be provided parallel to the northern property boundary of APN 036- 143-31 to connect with the existing public rights-of-way. c. Unless determined to be infeasible, ingress/egress to any new development on the inland residential property shall be provided from Escalona Drive. 98 Item 8 D.

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3. FINDINGS AND DECLARATIONS
A. Background and Description of Proposed LCP Amendment The City of Capitola is a coastal city seaward of Highway 1 in central Santa Cruz County, located downcoast of Pleasure Point and upcoast of the Seacliff/Aptos areas of unincorporated Santa Cruz County. The City’s coastal zone is roughly one square mile, making up approximately 60% of the City, and it is primarily a mix of residential and visitor-serving commercial and recreation uses. The coastal zone includes a mix of residential neighborhoods (e.g., the Jewel Box, the Upper Village, and Cliffwood Heights), visitor-serving commercial and mixed-use neighborhoods centered around Capitola Village (which includes Capitola Beach and the Capitola Wharf, as well as visitor-serving shops, restaurants, and overnight accommodations), and significant public recreational areas (such as at New Brighton State Beach on the City’s downcoast end). The City is a very popular visitor destination, and much of its coastal economy is visitor-dependent.

The Monarch Cove Inn is an 11-unit bed and breakfast facility set within multiple buildings on some 1.5 acres of property located at the downcoast end of Depot Hill, a mostly residential neighborhood just downcoast from Capitola Village on top of approximately 80-foot-tall bluffs that offer beautiful sweeping views of the Monterey Bay (see Exhibit 1 for project site map and Exhibit 2 for photos of the site). The history of the Monarch Cove site dates back to the late 1800s when two English families seeking a summer retreat locale bought lots throughout Depot Hill and built a settlement called “The English Cottages,” which included Victorian era bungalows as well as traditional English gardens. The property was leased in 1909 to a San Franciscan when the owners returned to England for an extended stay, and he ultimately purchased the property in 1911 and renamed the property “El Salto,” and enlarged the El Salto estate throughout the 1920s, adding guest cottages, staff living quarters, fruit orchards, and a four-car garage. That owner then sold the property to a local Capitola resident who remodeled the units so that they could be used as summer rentals, then the El Salto Resort. The property was sold again in 1960 to an investment group, and then two years later Elizabeth Blodgett acquired title to a majority of the original holdings. In the late 1970s, Ms. Blodgett purportedly proposed a number of development projects that never came to fruition. By 1982, Ms. Blodgett had sold a number of the lots, and a fire destroyed some of the cottages. In 1989, the City deemed the resort unsafe, and the resort closed temporarily. Ms. Blodgett then sold most of the remaining property to her son, Robert Blodgett, and he completed renovations and reopened the resort in 1989.

Ms. Blodgett operated her portion of the resort until 1998 when she sold the last of her property (the three lots immediately west of her son’s parcels), which was subsequently converted to residential use.

Thus, most of the original El Salto Resort was converted to residential uses over the years, with the exception of the downcoast-most portion of it (then renamed as the Monarch Cove Inn), which became a 9-room bed and breakfast inn with two separate one-bedroom stand-alone cottages and an outdoor deck area used for weddings. While located about a 15-minute walk to the Village, the Monarch Cove Inn’s location on Depot Hill offers sweeping, unparalleled views of the Monterey Bay and coastline and, if visited during the monarch butterfly migration season (mid-October through mid99 Item 8 D.

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January), large clumps of monarch butterflies hanging from the adjacent eucalyptus trees. Thus, the site has a long history of operating as overnight accommodations for Capitola visitors, both before and since adoption of the Coastal Act and it offers a unique visitor accommodation experience. However, in recent years, the overnight accommodations at the site have become outdated and a number of maintenance needs have been identified, thus affecting its appeal as a visitor-serving experience.

The current owners explored the possibility of investing in major development upgrades to the site in 2001 and 2014, but both proposals were met with neighborhood opposition and ultimately abandoned.

The City’s Local Coastal Program (LCP) was originally certified in 1981 and underwent a comprehensive update of its Implementation Plan (IP), and of the LCP’s Land Use Plan (LUP) Land Use Designations map, in 2021.
1 At the time of this update in 2021, in
addition to other substantive changes, the City proposed to re-designate and re-zone two existing visitor-serving overnight accommodation operations, the Monarch Cove Inn and the Inn at Depot Hill, to single-family residential (R-1). The City’s reasoning for the rezoning of the Monarch Cove Inn site was that it needed substantial work and expansion to keep it operational into the future as a functioning and financially feasible overnight accommodation, and that its location at the downcoast end of a residential neighborhood constrained options, including in terms of residential neighbors’ opposition to improvements of this nature. Thus, the City reasoned that the site was better suited to residential uses, which is also what the owners of the site were seeking as well. Staff, recognizing the Coastal Act and LCP’s strong protections and prioritization of visitor-serving uses, could not find the City’s proposal to re-zone and redesignate the two inns consistent with the Coastal Act and LUP, and instead recommended a number of modifications in an effort to preserve their existing visitorserving function. However, the Commission opted not to take action on either the staff recommendation nor the City’s proposal as it related to the Monarch Cove Inn site. 2 At
that time, Commissioners were interested in understanding whether a different balancing between visitor-serving overnight accommodations uses and residential uses could be identified for the Monarch Cove Inn site, one that didn’t completely change the site to residential uses, and thus the Monarch Cove Inn provisions were removed from the Commission’s amendment approval, and the Commission directed staff to work with the City and the owners of the Monarch Cove Inn to come up with other alternative solutions.

In 2022, the City resubmitted the same language that the Commission considered in 2021. As submitted by the City, the proposed amendment includes land use designation changes, zoning designation changes, and corresponding IP text amendments. As submitted by the City, the land use designation changes entail converting the existing land use and zoning designations for the Monarch Cove Inn site from Visitor Serving (VS) to Single Family-Residential (R-1) with a VS overlay. The proposed IP text amendments also include removing IP Chapter 17.30 in its entirety, and creating a 1 See LCP-3-CAP-20-0082-2.
2 City staff agreed with Commission staff on the modifications for the Inn at Depot Hill, and thus those changes to preserve the visitor-serving uses were adopted by the Commission and are in effect currently. 100
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Monarch Cove subzone (VS-MC) within IP Chapter 17.28. The VS-MC subzone would allow the Monarch Cove Inn site to be used as a single-family residence in conjunction with an overnight accommodation use “or [the] granting of public access to a viewpoint,” whereas the LCP currently prohibits single-family residential uses on the Monarch Cove Inn site. More specifically, the proposed amendment would:
• Identify the three Monarch Cove Inn parcels that would be subject to the newly created VS-MC subzone (i.e., APNs 036-143-31, 036-142-27, and 036-142-28). • Add a series of allowed/conditional uses in the VS-MC subzone, including singlefamily dwellings and visitor-serving/overnight accommodation uses. • Add a new footnote to the “single family dwelling” use in the VS-MC subzone to mandate that single-family dwellings shall comply with development standards in the R-1 zoning district, as well as to specify that single-family dwellings are allowed in conjunction with overnight accommodations or granting of public access to a viewpoint.
• Add a new footnote to the “temporary assemblages of people” use in the VS-MC subzone to limit such events to a single two-day event or less per year. • Add the VS-MC subzone to the general development standards for visitor-serving zoning districts to identify the maximum impervious surface allowed on the site.

In short, the proposed amendment would allow for residential uses on the Monarch Cove Inn site, whereas currently they are not. The amendment would thus facilitate the conversion of the site from one of a visitor-serving nature to one of residential. See Exhibit 3 for the proposed land use designation change and Exhibit 4 for the proposed zoning change and IP text.

B. Evaluation of Proposed LCP Amendment
Standard of Review
The proposed amendment affects both the LUP and IP components of the City’s LCP.

The standard of review for LUP amendments is that they must conform with the policies of Chapter 3 of the Coastal Act. The standard of review for IP amendments is that they must be consistent with and adequate to carry out the policies of the certified LUP, as amended.

1. Proposed Land Use Plan Amendment
Applicable Coastal Act Policies
The Coastal Act places a very high priority on public access and recreational opportunities for all. In addition to Coastal Act Sections 30210 through 30214 that require maximum public access to and along the shore, Coastal Act Section 30221 protects oceanfront lands that are suitable for recreational uses. For otherwise allowable development, Coastal Act Section 30222 gives priority to the use of land suitable for visitor-serving recreational facilities over private residential, general 101
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industrial, or general commercial development. Therefore, the proposed LUP amendment must protect oceanfront land, such as the blufftop area in question here, for recreational uses, and must prioritize the use of suitable private lands for visitor-serving facilities designed to enhance public opportunities for coastal recreation. Coastal Act Sections 30221 and 30222 specifically state:

Section 30221. Oceanfront land suitable for recreational use shall be protected for recreational use and development unless present and foreseeable future demand for public or commercial recreational activities that could be accommodated on the property is already adequately provided for in the area.

Section 30222. The use of private lands suitable for visitor-serving commercial recreational facilities designed to enhance public opportunities for coastal recreation shall have priority over private residential, general industrial, or general commercial development, but not over agriculture or coastal-dependent industry.

Analysis
As submitted by the City, the proposed land use map changes would redesignate the Monarch Cove Inn property (which consists of 3 parcels: APNs 036-143-31, 036-142- 27, and 036-142-28) from the current “Visitor-Serving” land use designation to an “R-1” (single-family residential) land use designation with a VS (visitor-serving) overlay. The proposed re-designation would provide for full residential conversion on this important visitor-serving property, thereby raising Coastal Act conformance issues as more fully discussed below.

As submitted by the City, the proposed single-family residential designation would mean that the LCP would prioritize residential uses at the site with the allowance for visitorserving uses, as opposed to the existing designation, which prioritizes visitor-serving overnight accommodations and related visitor-serving uses and prohibits single-family residential uses (and only allows ancillary residential/caretaker units). It is important to note that, in the Commission’s experience, when such visitor-serving sites are converted to residential uses, they are rarely, if ever, replaced or converted back to visitor-serving uses. Indeed, one need look no further than many of the properties formerly associated with the El Salto Resort that were sold off and converted to residential uses and have since remained that way. Thus, the Commission in implementing the Coastal Act has traditionally taken a fairly strict reviewing lens for proposed conversions such as this one, including to make sure that there is adequate remaining visitor-serving uses in the surrounding area, to replace whatever is lost, or to deny such requests.

As proposed in this case, redesignation of the whole site from VS to R-1 would likely lead to permanent loss of the overnight accommodations at these sites. The City of Capitola, and especially the Village and its adjacent beach area, is a very popular destination for visitors to the Central Coast, and the Monarch Cove Inn is one of only two overnight accommodations in the Depot Hill area of the City (the other being the Inn at Depot Hill with its 13 guest rooms), and the Monarch Cove Inn represents a unique visitor-serving experience with expansive blue water views, a blufftop coastal trail, an adjacent monarch butterfly grove (hence the Inn’s name), and a more rustic and 102
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nostalgic small-scale Inn experience that also offers close access to the Village, Capitola Beach, and New Brighton State Beach, but in a quieter and more serene locale. In sum, the proposed amendment would facilitate the conversion of this important and exceptionally unique visitor-serving space to private residential use, and the general public would lose out on the ability to stay and recreate in this area, all of which raises core Coastal Act compatibility concerns. And to be clear, these are the same concerns Commission staff raised as part of the previous rezoning proposal back in 2021.

That all being said, it is also true that the site is quite large and could likely cater to both residential and visitor-serving uses. The Commission similarly recognized this during the previous proposal in 2021, and thus directed staff to understand whether there were other alternatives that would allow for retention of VS uses at the site while also providing some additional residential uses here as well. In other words, this need not be an all or nothing endeavor, but rather a mix of uses could be potentially appropriate.

Commission staff, City staff, and the property owners thus worked together to understand where and how such mix could be effectuated.

To do so, it is important to understand the site’s geography and amenities as they exist today. The Monarch Cove Inn is composed of three parcels: a seaward parcel containing the 9-bedroom Victorian house, a carriage house and open air pavilion, walking trails, and open space that overlook the Pacific Ocean and Monterey Bay (APN 036-143-31) and is approximately 24,000 square feet; a landward parcel containing the Inn’s office buildings, garden, employee parking spaces, and a smaller auxiliary cottage with a one-bedroom suite (i.e., attached kitchen and bathroom) totaling approximately 18,000 square feet (APN 036-142-27); and a middle parcel sandwiched between the two larger parcels that contains the only ingress/egress to the site, parking spaces, and another small auxiliary cottage with a one bedroom suite, totaling approximately 10,000 square feet (APN 036-142-28) (see Exhibit 1 for a map of the site).

In looking at the site holistically, the majority of the coastal resources and visitor-serving amenities are contained on the seaward-most parcel, including sweeping views of the sea, public walking trails (including to the monarch butterfly grove at the eastern side of the property), and the bulk of the overnight accommodations contained in the Victorian house (nine of eleven units across the entire property). 3 The loss of such coastal visitorserving amenities to private residential uses would not only be inconsistent with the Coastal Act, but would also impact the public who frequently visit the property to avail themselves of its green spaces and natural environment. In contrast, the landward parcel mainly contains storage and support services to operate the Inn. Lastly, the middle parcel contains the only ingress/egress to the site and provides parking spaces for both overnight and day-use visitors, and thus provides an important connection point to access the visitor-serving uses on the site. While the landward parcel does currently help serve the main Inn facilities, the storage and office space currently on it can likely be reimagined and reconfigured onto the seaward parcel. In other words, the landward 3 The Victorian house has nine rooms with queen-sized beds, two of which have attached living rooms, and one of which has an attached kitchen. Each cottage contains one-bedroom suites with attached kitchen and bathroom. Each room (either in the main house or in the cottages) has its own entrance. 103
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parcel does not raise the same degree of Coastal Act conversion issues as the seaward one does, and that understanding can help inform a framework whereby the landward portion of the site is converted to residential uses while the seaward side is retained for visitor-serving purposes.

As such, Suggested Modification 1 retains the existing Visitor Serving (VS) land use designation on the seaward parcel (APN 036-143-31) and a portion of the middle parcel (APN 036-142-28) (which provides access to it), while allowing the landward parcel (APN 036-142-27) and the remaining portion of the middle parcel to be converted to an R-1 land use designation. The end result is as depicted below, with purple demarcating the VS portion and yellow the R-1:

This configuration/redesignation can be found consistent with Coastal Act Section 30221 since it would protect the oceanfront parcel for public use and visitor-serving overnight accommodations. The Monarch Cove Inn site is well-equipped to enhance such public access opportunities, as it provides the only overnight-accommodation in this part of the City, and provides pathway connections to the blufftop and monarch butterfly grove, and the conversion would ensure these amenities continue at the site.

The landward parcel and portions of the middle parcel would thus be available for residential uses4 and also for limited overnight accommodations uses as well (thereby not affirmatively precluding these uses), and the owners have indicated that they are amenable to the proposed modifications, as is City staff. 5 Accordingly, as modified, the
proposed LUP amendment can be found consistent with the Coastal Act. 4 And may also be eligible to be subdivided, thereby potentially allowing for multiple single-family zoned parcels including opportunities for multiple units (e.g., via the City’s SB9 and ADU ordinances). 5 In addition, the existing zoning designation currently allows one of the units on the site to be used as a caretaker’s unit, and this allowance for a caretaker’s unit would be retained under the proposed amendments. And thus, the proposed modifications would not affect the ability of the owners or Inn staff 104
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2. Proposed Implementation Plan Amendment
Applicable Land Use Plan Provisions
Similar to the Coastal Act, the LUP contains policies and implementation strategies related to maximizing public access and recreation; protecting environmentally sensitive habitat areas; protecting public views, including to and along the immediate shoreline; and protecting visitor-serving uses, including by ensuring that sites designated for visitor-serving uses and recreation (e.g., visitor-serving overnight accommodations such as hotels, motels, and campgrounds, food/drink establishments, rental facilities, and beaches/parks) remain designated for such uses. These policies include:

LUP Policy II-1: It shall be the policy of the City of Capitola to provide safe and adequate pedestrian access to and along the shoreline as designated in the Shoreline Access Plan (see Maps II-1,2, and 3).

LUP Policy VI-2: It shall be the policy of the City of Capitola to protect, maintain and, where possible, enhance the environmentally sensitive and locally unique habitats within its coastal zone, including dedication and/or acquisition of scenic conservation easements for protection of the natural environment. All developments approved by the City within or adjacent to these areas must be found to be protective of the long-term maintenance of these habitats.

LUP Policy IV-1 [in relevant part]: The City shall designate the following areas as visitor-serving and/or recreation uses: The Capitola Village commercial area (retail, restaurants, lodging, etc.) […] El Salto Resort properties; […] LUP Policy IV-2: Areas designated as visitor serving and/or recreational shall be reserved for visitor support services or recreational uses. Permissible uses include, but are not limited to hotels, motels, hostels, campgrounds, food and drink service establishments, public facilities, public beaches, public recreation areas or parks, and related rental and retail establishments. Residential uses are also permitted on dual designated “visitor-serving/residential” parcels; specifically, a portion of the El Salto Resort, and in the Village area. Development can be accomplished through private or public means.

Consistency Analysis
The LUP speaks to protection of locally unique habitat areas, including through ensuring compatible development adjacent to such areas that “must be found to be protective of the long-term maintenance of these habitats”; additionally, the LUP protects public access “to and along the shoreline”. Finally, the LUP specifically states that the Monarch Cove Inn properties (formerly referred to in the LUP as the “El Salto Resort” properties) shall be designated for visitor-serving and/or recreation uses, and that “areas designated for visitor-serving and/or recreation shall be reserved for visitor to reside on the property as caretakers, but would require the site to maintain a reasonable number of overnight accommodations that would be served by the caretakers (i.e., the site could not be modified to provide one unit of overnight accommodation and one caretaker unit, rather, the caretaker unit would be understood to service some number of overnight accommodations that is relatively equal to that which exists on the site currently).
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support services or recreational uses” and that permissible uses include “hotels, motels, hostels, campgrounds […]”, etc. It also provides the potential allowance for a dual residential and visitor-serving commercial mix.

The proposed IP amendment would re-zone the Monarch Cove Inn site (i.e., all three parcels) to R-1 with a VS overlay, raising the same visitor-serving conversion issues as discussed in the preceding LUP amendment section. The IP text component of the amendment would also allow single-family residential dwellings as a conditional use on the Monarch Cove Inn site in conjunction with at least one unit of overnight accommodation or the granting of public access to a viewpoint (see IP Section

17.28.020 on pages 4-6 of Exhibit 4). In other words, the amendment would allow for a rather significant reduction in the number of overnight accommodation units (from 11 to as little as a single unit) or elimination of all existing overnight accommodation units with a formally recognized public trail/viewpoint. While the language here does mention a trail, it is rather vague and doesn’t specify any performance standards to ensure its protection over time. The access provided here is important, including connecting El Salto Drive and the greater Depot Hill neighborhood with the coastal bluff and Monterey Bay views, as well as connections to the public right-of-way at the downcoast edge of the property, and potential future connections to the planned coastal rail trail.6,7 Loss or impairment of the access in this area would be significant, as the coastal trail on the property provides benefits similar to the now extinct coastal trail on other portions of Depot Hill, which is no longer in use because of erosion and private residential backyard encroachments into the public right-of-way. The Monarch Cove Inn site provides more flexibility to maintain such public access to the surrounding area given its large size, where other areas in Depot Hill are constrained by private residential dwellings.

As described previously, the majority of the visitor-serving resources at the site, including the overnight accommodations contained in the historic Victorian home, are contained on the seaward parcel, as well as public walking paths, green open space, and access to the monarch butterfly grove. Conversely, the landward parcel mainly contains support buildings, such as offices and storage, and does not provide the same level of visitor resources. Thus, and including to match the LUP as suggested to be modified, the Commission includes Suggested Modification 2, which changes the proposed zoning designation for the seaward parcel (APN 036-143-31) and the northwestern portion of the middle parcel (APN 036-142-28) to VS (Visitor Serving).

This R-1/VS split is approvable given the context because the LCP speaks to such adjacent visitor-serving and residential uses at the site (see LUP IV-2), would maintain access to the shoreline (see LUP II-2), and would provide for compatible development 6 Vehicular access at the site is notably constrained, as the only ingress/egress is via El Salto Drive, which dead-ends at the project site. Available parking for daily visitors, overnight guests, and staff is accommodated via street parking and two small parking lots located on the landward parcel and the middle parcel.
7 The public pathway was originally formed as a condition of coastal permit P-80-11 as an offer to dedicate for two easements to be made from El Salto Drive to and along the blufftop for views of the shoreline. However, the permit was never exercised, and the easements were never recorded.

Nevertheless, the pathway currently exists on the property and is frequently used by the public, constituting an important visitor-serving resource which is afforded protection under the LUP. 106
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adjacent to the blufftops/monarch butterfly grove (see LUP VI-2). Additionally, the landward parcel would maintain a visitor-serving overlay in addition to the R-1 designation, thus not precluding visitor-serving overnight accommodations from existing in the future on the landward parcel.

Suggested Modification 3 implements the zoning map change into the IP’s text, including by clarifying that the proposed R-1 zoning and VS-G (Visitor-Serving-General) overlay only applies to the landward parcels and not the seaward, visitor-serving ones.

The end result of this modification is to retain overnight accommodation uses on the seaward parcels while providing for a mix of visitor-serving and residential ones on the landward side. And Suggested Modification 4 simply depicts these changes into the corresponding IP Visitor Serving District map.

While the above described suggested modifications generally refer to the site’s zoning designations and overlays, Suggested Modifications 5 and 6 make changes to describe the specific site development parameters and allowed land uses. Overall, the changes would remove single-family dwellings as a conditional use on the seaward visitor-serving Monarch Cove Inn site (VS-MC in Table 17.28-1, see Exhibit 4) to prevent the applicable parcels from converting to a private, residential use and conversely, to preserve the overnight accommodations and public access at the site.

The modifications also require that, as part of any CDP review at the residential or visitor-serving sites, that adequate fire and vehicular ingress/egress is provided to serve all development at the sites (particularly for the Inn site, which may necessitate residential access from Escalona Drive), that public access is provided, including from El Salto Drive to the bluff, adjacent public rights-of-way, and potentially new trail connections along the rail trail, and that there is adequate space for parking. In other words, the language provides an important reviewing lens for future development proposals on both the residential and visitor-serving properties to ensure that uses on both sites remain viable, and that protect and provide for public access in the area.

In sum, the suggested modifications would eliminate the proposed R-1 use on the seaward parcel and portions of the middle parcel at the Monarch Cove Inn site and make clarifying changes to provide for a mix of uses on the inland portion. Such a conversion is appropriate in this context given that doing so maintains the majority of the overnight accommodation units and preserves other visitor-serving amenities (e.g., access to blue-ocean water views and public trails) at this unique site. Additionally, in recent years there has been a push across the state to increase housing stock, particularly in coastal areas,
8 including to help offset skyrocketing rents and home
prices and general unaffordability, while still preserving moderate- and lower-cost accommodations. Here, the conversion strikes a balance between these two objectives by preserving overnight accommodations and visitor-serving uses in the coastal zone while allowing for residential uses that would presumably add a number of new units to the area. Lastly, in a City-wide context, there are a number of other overnight accommodations available to visitors within the City (including the Inn at Depot Hill, the 8 And the Commission has frequently discussed the balance between encouraging housing and preserving/protecting visitor-serving overnight accommodations in the coastal zone, including during its December 2023 hearing when it held an informational briefing on housing. 107
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Capitola Hotel, and the Venetian, all of which are located within the coastal zone), and visitor-serving uses have historically been preserved in the City, including via Commission action.
9 The modifications identified are thus necessary to ensure that existing lands designated for visitor-serving uses are protected for such uses, while also providing for much needed housing. Thus, the proposed IP amendments with the suggested modifications can be found consistent with and adequate to carry out the certified Land Use Plan.

C. California Environmental Quality Act (CEQA)
Section 21080.9 of the California Public Resources Code—within the California Environmental Quality Act (CEQA)—exempts local government from the requirement of preparing an Environmental Impact Report (EIR) in connection with its activities and approvals necessary for the preparation and adoption of LCPs and LCP amendments.

Instead, the CEQA responsibilities are assigned to the Coastal Commission; however, the Commission's LCP review and approval program has been found by the Resources Agency to be functionally equivalent to the EIR process. Thus, under CEQA Section 21080.5, the Commission is relieved of the responsibility to prepare an EIR for each LCP or LCP amendment action.

Nevertheless, the Commission is required, in approving an LCP or LCP amendment submittal, to find that the approval of the proposed LCP, as amended, does conform with CEQA provisions, including the requirement in CEQA section 21080.5(d)(2)(A) that the amended LCP will not be approved or adopted as proposed if there are feasible alternatives or feasible mitigation measures available which would substantially lessen any significant adverse impact which the activity may have on the environment (see California Code of Regulations Title 14 Sections 13540(f) and 13555(b)).

The City of Capitola’s LCP amendment consists of an LUP and IP amendment. In this case, the City exempted the proposed amendment from environmental review (citing CEQA Sections 15061(b)(3)), deeming the modifications to be minor in nature without the potential to cause a significant effect on the environment. This report has discussed the relevant coastal resource issues with the proposal, and has addressed all comments received. All the above findings are incorporated herein in their entirety by reference.

Therefore, the Commission finds that there are no other feasible alternatives or mitigation measures under the meaning of CEQA which would further reduce the potential for significant adverse environmental impacts, and the proposed LCP amendment, as modified, conforms with CEQA.
9 In the 2021 IP update, staff recommended modifications to the former Capitola Theater site to ensure future development would be used for visitor-serving uses. See adopted staff report for LCP-3-CAP-20- 0082-2 pages 8 and 37.
108
Item 8 D.

STATE OF CALIFORNIA — NATURAL RESOURCES AGENCY GAVIN NEWSOM, GOVERNOR

CALIFORNIA COASTAL COMMISSION CENTRAL COAST DISTRICT
725 FRONT STREET, SUITE 300
SANTA CRUZ, CA 95060
PHONE: (831) 427-4863
FAX: (831) 427-4877
WEB: WWW.COASTAL.CA.GOV
Th13a
LCP-3-CAP-22-0061-2 PART B (MONARCH COVE INN

REDESIGNATION)
MAY 9, 2024 HEARING

EXHIBITS
Table of Contents
Exhibit 1: Project Site Map
Exhibit 2: Project Site Photos
Exhibit 3: Proposed LUP Map
Exhibit 4: Proposed IP Map and IP Text
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Depot Hill Neighborhood
City of Capitola
Capitola State Beach
Project Site
New Brighton
State Beach
Exhibit 1
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Project Site
Office Buildings
Small Cottages
Victorian Mansion
Wedding Deck
Walking Trail
Public Right-of-way and Public Trails
Monarch Butterfly
Grove
Exhibit 1
LCP-3-CAP-22-0061-2-Part B

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11-bedroom Victorian Mansion
Exhibit 2
LCP-3-CAP-22-0061-2-Part B

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Wedding Pavilion
Exhibit 2
LCP-3-CAP-22-0061-2-Part B

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Wedding Pavilion
View from Victorian Mansion
Exhibit 2
LCP-3-CAP-22-0061-2-Part B

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Exhibit 2
LCP-3-CAP-22-0061-2-Part B

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Exhibit 2
LCP-3-CAP-22-0061-2-Part B

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General Plan and Local Coastal Program Land Use Map Proposed Modifications for Monarch Cove Inn Parcels
Existing Land Use: Visitor Serving
Proposed Land Use: Single-Family Residential with Visitor Serving Overlay Exhibit 3
LCP-3-CAP-22-0061-2-Part B

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Zoning Map/LCP-IP Proposed Modifications
for Monarch Cove Inn Parcels
Existing Land Use: Visitor Serving
Proposed Land Use: R-1 Single-Family Residential with Visitor Serving Overlay Exhibit 4
LCP-3-CAP-22-0061-2-Part B

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Chapter 17.28

VISITOR SERVING OVERLAY ZONE
Sections:

17.28.010 Purpose of the visitor serving overlay zone.

17.28.020 Land use regulations.

17.28.030 Development standards.

17.28.010 Purpose of the visitor serving overlay zone.

A. General. The purpose of the visitor serving (-VS) overlay zone is to provide the visiting public with a range of opportunities to enjoy Capitola’s coastal location. The -VS overlay zone accommodates a range of visitor serving uses including overnight accommodations, dining establishments, and active and passive recreational facilities.

Specific permitted uses depend on the resources present on the site and the surrounding land use and environmental context. The -VS overlay zone implements policies to maintain and enhance visitor serving uses in Capitola consistent with the general plan and local coastal program (LCP).

B. Visitor Serving Overlay Subzones. The -VS overlay zone is divided into subzones (see Figure 17.28-1) with unique land use and development standards:

1. Visitor Serving – Rispin (VS-R). Applies to the Rispin site (APNs 035-371-01 and 035-371-02).

2. Visitor Serving – Shadowbrook (VS-SB). Applies to the Shadowbrook site (APN 035-111-04).

3. Visitor Serving - Monarch Cove Inn (VS-MC). Applies to the Monarch Cove Inn site (APNs 036-143-31 & 036-142-27) and the portion of parcel 036-142-28 that is located between the two Monarch Cove Inn parcels.

43. Visitor Serving – El Salto (VS-ES). Applies to the El Salto site (APN 036-143-35).

54. Visitor Serving – General (VS-G). Applies to all other parcels with a visitor serving subzone overlay designation. The -VS zoning overlay designation on the Inn at Depot Hill site (APNs 036-121-38 and 036-121- 33) acts as both the base zoning district and an overlay district (i.e., the permitted land uses identified in Table

17.28-1 are the only permitted land uses allowable on the site and the applicable land use regulations and development standards are limited to those identified in this chapter).

Exhibit 4
LCP-3-CAP-22-0061-2-Part B

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Figure 17.28-1: Visitor Serving Districts
Exhibit 4
LCP-3-CAP-22-0061-2-Part B

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(Res. 4223, 2021; Ord. 1043 § 2 (Att. 2), 2020)

17.28.020 Land use regulations.

A. Permitted Land Uses. Table 17.28-1 identifies land uses permitted in the -VS overlay subzones.

Table 17.28-1: Permitted Land Uses in the Visitor Serving Overlay Zone Key
P Permitted Use
M Minor Use Permit required
C Conditional Use Permit required
– Use not allowed
-VS Subzones
VS-G VS-R VS-SB VS-MC VS-ES Additional Regulations
Residential Uses
Employee Housing C [1] – – - –
Multifamily Dwellings C [2][11] – – - C [2]
One Caretaker Unit for On-Site Security C C C C C
Single-Family Dwellings C [3][11] – – C [3][12] C [3]
Public and Quasi-Public Uses
Community Assembly C C – - –
Exhibit 4
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Cultural Institutions C C – - –
Day Care Centers C – – - –
Habitat Restoration and Habitat Interpretive
Facilities
C C C C –
Parks and Recreational Facilities C C – - –
Public Parking Lots C C – - –
Public Paths and Coastal Accessways C C C C C
Public Safety Facilities C – – - –
Public Wharfs C – – - –
Schools, Public or Private – – – - –
Commercial Uses
Business Establishments that Provide
Commercial Places of Amusement or
Recreation, Live Entertainment, or Service of
Alcoholic Beverages
C [4] C [4] C
-
–
Business Establishments that Sell or Dispense
Alcoholic Beverages for On-Site
Consumption
C C C
C
–
Restaurants
Full Service C [5] C [5] C [5] - –
Lodging
Hotels, Inns, Bed and Breakfast,
and Hostels
C C – C C
Campgrounds [6] C – – - –
Recreational Vehicle Parks C – – - –
Vacation Rentals with onsite
manager
– – – C –
Utilities, Major C C C C C
Utilities, Minor P P P P P
Wireless Communications Facilities See Chapter

17.104
Other Uses
Access Roadways C C C C C
Accessory Structures and Uses, New C [7] C C C C
Accessory Structures and Uses Established
Prior to Primary Use or Structure
C C – C –
Change of Visitor Serving Commercial Uses
within a Structure
C [8] – – - –
Food Service Accessory to a Lodging Use [9] C C – C C
Home Occupations C – – - – Section 17.96.040
Expansion of a Legal Nonconforming Use
within an Existing Structure
C – – - –
Exhibit 4
LCP-3-CAP-22-0061-2-Part B

Page 5 of 10 ends

122
Item 8 D.

Legal Nonconforming Use Changed to a Use
of a Similar or More Restricted Nature
C – – - –
Live Entertainment C C C - –
Offices Accessory to Visitor Serving Use C C C C –
Parking Areas to Serve the Primary Use C C C C C
Retail Accessory to a Visitor Serving Use C C – C –
Temporary Assemblages of People, such as
Festivals, Fairs, and Community Events
C [10] C [10] C [10] C [13] –
Weddings C C C C –
Notes:
[1] Permitted only as an accessory use.
[2] Multifamily dwellings shall comply with development standards in the multifamily residential, medium density (RM-M) zoning district. [3] Single-family dwellings shall comply with development standards in the single-family residential (R-1) zoning district. [4] May not be located within two hundred feet of the boundary of a residential zoning district. [5] Drive-up and car service is not allowed.
[6] May include moderate intensity recreational uses, including tent platforms, cabins, parks, stables, bicycle paths, restrooms, and interpretive facilities.
[7] Intensification of the primary use is not allowed.
[8] The new use may not change the nature or intensity of the commercial use of the structure. [9] Permitted only to serve guests of the lodging use.
[10] Events may not exceed ten days and may not involve construction of permanent facilities. [11] Prohibited on the former Capitola Theater site (APNs 035-262-04, 035-262-02, 035-262-11, and 035-261-10) and the Inn at Depot Hill (APNs 036-121-38 and 036-121-33).
[12] Allowed in conjunction with overnight accommodation use (at least one on property) or grant of public access to a viewpoint. [13] Limited to a single two-day or less event per year.

B. Civic Uses in the VS-R Overlay Subzone. The planning commission may allow additional civic uses in the VS-R overlay subzone beyond those specifically identified in Table 17.28-1 if the planning commission finds the additional civic use to be consistent with the purpose of the VS-R overlay subzone and compatible with existing uses present on the site. (Res. 4223, 2021; Ord. 1043 § 2 (Att. 2), 2020)

17.28.030 Development standards.

A. General. Table 17.28-2 identifies development standards that apply in the -VS overlay zone outside of the mixed use village (MU-V) zoning district.

Table 17.28-2: Development Standards in the Visitor Serving Zoning Districts -VS Overlay Zone Additional Standards
Parcel Area, Minimum 5,000 sq. ft.

Impervious Surface, Maximum VS-R: 25%
VS-SB, VS-MC, and VS-ES: 50% [1]
VS-G: No maximum
Floor Area Ratio, Maximum 0.25
Setbacks, Minimum See Section 17.28.030(B)
Height, Maximum 30 ft. Section 17.28.030(C)
Note:
[1] In the VS-SB overlay subzone, the impervious surface requirement applies to the parcel located directly adjacent to Soquel Creek. In the VSES overlay subzone, the impervious surface calculation excludes the portion of parcel 036-142-28 located outside of the Monarch Cove Inn.

B. Setbacks. The following setback requirements apply in the -VS overlay zone:

Exhibit 4
LCP-3-CAP-22-0061-2-Part B

Page 6 of 10 ends

123
Item 8 D.

1. The planning commission may require front, side and rear setbacks through the design review process to provide adequate light and air, ensure sufficient distance between adjoining uses to minimize any incompatibility, and to promote excellence of development. Where a side or rear yard abuts residential property, a setback of at least ten feet shall be provided.

2. Front and exterior side yards shall not be used for required parking facilities.

3. For the visitor serving El Salto parcels located adjacent to the bluff top, new development shall adhere to the setback and development provision provided in the LCP natural hazards policies and in Chapter 17.68 (GH Geologic Hazards District).

4. To protect the waters and riparian habitat of Soquel Creek, new development on the Shadowbrook Restaurant and Rispin parcels shall adhere to the LCP natural systems policies and Chapter 17.64 (Environmentally Sensitive Habitat Areas).

C. Height Exceptions. With a recommendation from the planning commission, the city council may approve additional height up to a maximum of thirty-six feet in the -VS overlay zone outside of the MU-V zoning district when all of the following findings can be made:

1. The proposed development and design is compatible with existing land uses in surrounding areas, the general plan, and the LCP.

2. Streets and thoroughfares are suitable and adequate to serve the proposed development.

3. The proposed development does not produce shadows which may adversely affect the enjoyment of adjacent streets, buildings, or open space.

4. Major public views of the shoreline, as identified in Capitola’s local coastal program, are not blocked by the proposed development.

D. Landscaping. See Table 17.72-2 in Chapter 17.72 (Landscaping) for minimum required landscaping requirements for visitor serving properties.

E. Lighting. In addition to outdoor lighting standards in Section 17.96.110 (Outdoor lighting), the following lighting requirements apply in the -VS overlay zone:

1. All exterior lighting shall be minimized, unobtrusive, down-directed and shielded using the best available dark skies technology, harmonious with the local area, and constructed or located so that only the area intended is illuminated and off-site glare is fully controlled and that light spill, sky glow and glare impacts are minimized.

2. Lighting of natural areas (such as creeks, riparian areas, the beach, etc.) shall be prohibited past the minimum amount that might be necessary for public safety purposes, except when temporarily permitted in conjunction with a temporary event.

3. The location, type and wattage of exterior lighting must be approved by the community development director prior to the issuance of building permits or the establishment of the use.

F. Coastal Development Permit. If a proposed development is located in the coastal zone, it may require a coastal development permit (CDP) as specified in Chapter 17.44 (Coastal Overlay Zone). Approval of a CDP requires conformance with the CDP findings for approval as specified in Section 17.44.130 (Findings for approval). (Res. 4223, 2021; Ord. 1043 § 2 (Att. 2), 2020).

Exhibit 4
LCP-3-CAP-22-0061-2-Part B

Page 7 of 10 ends

124
Item 8 D.

Chapter 17.30
VISITOR SERVING DISTRICT – MONARCH COVE INN
Sections:

17.30.010 Applicability.

17.30.020 Purpose.

17.30.030 Architectural and site approval.

17.30.040 Conditionally permitted uses – Monarch Cove Inn.

17.30.050 Accessory uses.

17.30.060 Height.

17.30.070 Lot area.

17.30.080 Lot coverage.

17.30.090 Yards.

17.30.100 Parking.

17.30.110 Loading areas.

17.30.120 Landscaping and lighting.

17.30.010 Applicability.

The regulations set forth in this chapter apply to the Monarch Cove Inn parcels. (Res. 4223, 2021)

17.30.020 Purpose.

The purpose of the V-S district is to accommodate the visiting public with a range of opportunities to enjoy the city of Capitola’s coastal location. (Res. 4223, 2021)

17.30.030 Architectural and site approval.

A design permit shall be secured for the establishment and conduct of any conditional or accessory use in a V-S district as provided in Chapter 17.120. (Res. 4223, 2021)

17.30.040 Conditionally permitted uses – Monarch Cove Inn.

The following are the conditionally permitted uses allowed on the Monarch Cove Inn parcels and the portion of parcel 036-142-28 that is located between the two Monarch Cove Inn parcels:

A. Accessory structures and accessory uses appurtenant to any conditionally allowed use; B. Hotels, motels, hostels, inns; bed and breakfast lodging; C. Food service related to lodging;
D. Assemblages of people, such as festivals, not exceeding ten days and not involving construction of permanent facilities;
E. Accessory structures and uses established prior to establishment of main use or structure; F. Habitat restoration; habitat interpretive facility;
G. Live entertainment;
H. Public paths;
I. Business establishments that provide commercial places of amusement or recreation, live entertainment, or service of alcoholic beverages and that are located within two hundred feet of the boundary of a residential district; J. Weddings;
K. Business establishments that sell or dispense alcoholic beverages for consumption upon the premises; Exhibit 4
LCP-3-CAP-22-0061-2-Part B

Page 8 of 10 ends

125
Item 8 D.

L. Other visitor serving uses of a similar character, density, and intensity as those listed in this section and determined by the planning commission to be consistent and compatible with the intent of this chapter and the applicable land use plan;
M. Offices and limited retail use, accessory to visitor serving uses; N. One caretaker unit for the purpose of providing on-site security; O. Access roadway;
P. Residential use by the owners and their family members of up to one unit per parcel on the three parcels, as long as a minimum of six guest bedrooms are available for visitor serving use within the three parcels; Q. Nonfamily residential use during the off-season months (November through April). (Res. 4223, 2021)

17.30.050 Accessory uses.

The following are accessory uses permitted in a V-S district:

A. Signs complying with the applicable regulations set forth in the sign ordinance; B. Accessory uses and buildings customarily appurtenant to a permitted use. (Res. 4223, 2021)

17.30.060 Height.

No structures shall exceed thirty feet in height. Exceptions up to thirty-six feet in height may be granted subject to approval by the city council upon the recommendation of the planning commission when the following findings can be made:

A. The proposed development and design are compatible with existing land uses of surrounding areas and the general plan;
B. Streets and thoroughfares are suitable and adequate to serve the proposed development; C. The proposed development does not produce shadows which may adversely affect the enjoyment of adjacent streets, buildings or open space;
D. Major public views are not blocked by the proposed development. (Res. 4223, 2021)

17.30.070 Lot area.

The minimum lot area required shall be five thousand square feet. (Res. 4223, 2021)

17.30.080 Lot coverage.

There shall be no specific maximum lot coverage set except as follows:

A. Sufficient space shall be provided to satisfy off-street parking and loading area requirements, notwithstanding that all parking may be provided within a structure(s); B. Front yard and open space requirements shall be satisfied; C. For the Monarch Cove Inn parcels, the allowable impervious site coverage (e.g., buildings, paving, decks, etc.) is fifty percent. (Res. 4223, 2021)

17.30.090 Yards.

A. Front, side and rear yard setbacks may be required through design permit approval in order to provide adequate light and air, assure sufficient distance between adjoining uses to minimize any incompatibility and to promote excellence of development. Where a side or rear yard abuts residential property a setback of at least ten feet shall be provided.

B. Front yards and corner lot side yards shall not be used for required parking facilities.

Exhibit 4
LCP-3-CAP-22-0061-2-Part B

Page 9 of 10 ends

126
Item 8 D.

C. For the Monarch Cove Inn parcels located adjacent to the bluff top, new development shall adhere to the setback and development provisions provided in the LUP’s natural hazards policies and in certified zoning Chapter 17.68 (GH Geologic Hazards District). (Res. 4223, 2021)

17.30.100 Parking.

Parking standards shall be as provided in Chapter 17.76. (Res. 4223, 2021)

17.30.110 Loading areas.

Loading areas shall be as provided in Chapter 17.76. (Res. 4223, 2021)

17.30.120 Landscaping and lighting.

A minimum of five percent of the lot area shall be landscaped to ensure harmony with adjacent development in accordance with architectural and site approval standards. For the visitor serving Monarch Cove Inn parcels, fifty percent of the parcels shall consist of landscaped or open space areas. The planting of invasive plant species is prohibited. All exterior lighting shall be unobtrusive, harmonious with the local area and constructed or located so that only the area intended is illuminated and off-site glare is fully controlled. The location, type and wattage of the exterior lighting must be approved by the community development director prior to the issuance of building permits or the establishment of the use. (Res. 4
Exhibit 4
LCP-3-CAP-22-0061-2-Part B

Page 10 of 10 ends

127
Item 8 D.

STATE OF CALIFORNIA — NATURAL RESOURCES AGENCY GAVIN NEWSOM, GOVERNOR

CALIFORNIA COASTAL COMMISSION CENTRAL COAST DISTRICT
725 FRONT STREET, SUITE 300
SANTA CRUZ, CA 95060
PHONE: (831) 427-4863
WEB: WWW.COASTAL.CA.GOV
Th13a
Prepared May 6, 2024 for May 9, 2024 Hearing
To: Commissioners and Interested Persons
From: Kevin Kahn, Central Coast District Manager
Kiana Ford, Coastal Planner
Subject: Additional hearing materials for Th13a
LCP Amendment Number LCP-3-CAP-22-0061-2 Part B (Monarch Cove Inn Redesignation)
This package includes additional materials related to the above-referenced hearing item as follows:

Additional correspondence received in the time since the staff report was distributed 128
Item 8 D.

From: CentralCoast@Coastal
To: Ford, Kiana@Coastal
Subject: Fw: Opposition to Redesignation Proposal for Monarch Cove Inn Date: Friday, April 26, 2024 10:30:18 AM
From: Harry <[email protected]>
Sent: Thursday, April 25, 2024 9:42 PM
To: CentralCoast@Coastal <[email protected]>
Subject: Opposition to Redesignation Proposal for Monarch Cove Inn Dear California Coastal Commision,
I am writing to express my strong opposition to the proposed redesignation of Monarch Cove Inn to R1 residential. As a resident of the area, I am deeply concerned about the potential negative impacts that this rezoning could have on our community.

Firstly, El Salto Rd is already a shared space, accommodating pedestrians on public trails, hotel visitors, and local residents alike. Introducing R1 zoning and adding more housing to the area would only exacerbate the issue of overcrowding. The infrastructure and resources along El Salto Rd are already stretched thin, and adding more housing units would only further strain these resources. This would negatively impact the quality of life for current residents and visitors alike.

Secondly, it's important to note that El Salto Rd is a private road and lacks sufficient maintenance compared to public roads. This means that any increase in traffic due to the addition of residential units would put additional strain on the already limited resources available for road maintenance. This could lead to further deterioration of the road and potentially compromise the safety of those who use it.

Given these concerns, I urge the Coast Commission to reject the proposal to rezone part of Monarch Cove Inn to R1 residential. Instead, I believe it is essential to prioritize the preservation of the existing community and infrastructure in the area. Any development plans should be carefully considered to ensure that they are in the best interest of all residents and stakeholders.

Thank you for considering my concerns regarding this matter. I trust that you will carefully evaluate the potential impacts of the proposed rezoning and make a decision that is in the best interest of the community.

Sincerely,
129
Item 8 D.

STATE OF CALIFORNIA — NATURAL RESOURCES AGENCY GAVIN NEWSOM, GOVERNOR

CALIFORNIA COASTAL COMMISSION CENTRAL COAST DISTRICT
725 FRONT STREET, SUITE 300
SANTA CRUZ, CA 95060
PHONE: (831) 427-4863
FAX: (831) 427-4877
WEB: WWW.COASTAL.CA.GOV
Th13a
LCP-3-CAP-22-0061-2 PART B (MONARCH COVE INN

REDESIGNATION)
MAY 9, 2024 HEARING

CORRESPONDENCE
130
Item 8 D.
1 Ford, Kiana@Coastal
From: Dan Da Man <[email protected]>
Sent: Wednesday, April 10, 2024 9:48 AM
To: CentralCoast@Coastal
Subject: Public Comment on April 2024 Agenda Item Thursday 14a - City of Capitola LCP Amendment No.

LCP-3-CAP-22-0061-2 Part B (Monarch Cove Inn Site Redesignation).

Follow Up Flag: Flag for follow up
Flag Status: Completed
Categories: Forwarded
The fact that a simple item has been delayed for several years is a testament to the disfunction of the Commission and it's mission. The owners will be dead by the time you get anything done and not one positive outcome will occur as a result of your inaction!
The property is at the end of a dead end street and the neighbors have complained about the Inn activities for decades and the owners simply want to have it zoned as residential, simple request with City of Capitola concurrence. What is the problem CCC??
131
Item 8 D.

Incorrect Exhibit A – Zoning Code Text Amendments and Zoning Map Chapter 17.28

VISITOR SERVING OVERLAY ZONE
Sections:

17.28.010 Purpose of the visitor serving overlay zone.

17.28.020 Land use regulations.

17.28.030 Developmentstandards.

17.28.010 Purpose of the visitor serving overlay zone.

A. General. The purpose of the visitor serving (-VS) overlay zone is to provide the visiting public with a range of opportunitiesto enjoy Capitola’s coastal location. The -VS overlay zone accommodates a range of visitor serving uses including overnight accommodations, dining establishments, and active and passive recreational facilities.

Specific permitted uses depend on the resources present on the site and the surrounding land use and environmental context. The -VS overlay zone implements policies to maintain and enhance visitor serving uses in Capitola consistent with the general plan and local coastal program (LCP).

B. Visitor Serving Overlay Subzones. The -VS overlay zone is divided into subzones (see Figure 17.28-1) with unique land use and development standards:

1. Visitor Serving – Rispin (VS-R). Applies to the Rispin site (APNs 035-371-01 and 035-371-02).

2. Visitor Serving – Shadowbrook (VS-SB). Applies to the Shadowbrook site (APN 035-111-04).

3. Visitor Serving - Monarch Cove Inn (VS-MC). Applies to the Monarch Cove Inn site (APNs 036-143-31 & 036-142-27) and the portion of parcel 036-142-28 that is located between the two Monarch Cove Inn parcels.

43. Visitor Serving – El Salto (VS-ES). Applies to the El Salto site (APN 036-143-35).

54. Visitor Serving – General (VS-G). Applies to all other parcels with a visitor serving subzone overlay designation. The -VS zoning overlay designation on the Inn at Depot Hill site (APNs 036-121-38 and 036-121- 33) acts as both the base zoning district and an overlay district (i.e., the permitted land uses identified in Table

17.28-1 are the only permitted land uses allowable on the site and the applicable land use regulations and development standards are limited to those identified in this chapter). 1 1 Cityllmf t
132
Item 8 D.
133
Item 8 D.

17.28.020 Land use regulations.

A. Permitted Land Uses. Table 17.28-1 identifies land uses permitted in the -VS overlay subzones.

Table 17.28-1: Permitted Land Uses in the Visitor Serving Overlay Zone Key
P Permitted Use
M Minor Use Permit required
C Conditional Use Permit required
– Use not allowed
-VS Subzones
VS-G VS-R VS-SB VS-MC VS-ES Additional Regulations
Residential Uses
Employee Housing C [1] – – - –
Multifamily Dwellings C [2][11] – – - C [2]
One Caretaker Unit for On-Site Security C C C C C
Single-Family Dwellings C [3][11] – – C [3][12] C [3]
Public and Quasi-Public Uses
Community Assembly C C – - –
Cultural Institutions C C – - –
Day Care Centers C – – - –
Habitat Restoration and Habitat Interpretive
Facilities
C C C
C
–
Parks and Recreational Facilities C C – - –
Public Parking Lots C C – - –
Public Paths and Coastal Accessways C C C C C
Public Safety Facilities C – – - –
Public Wharfs C – – - –
Schools, Public or Private – – – - –
Commercial Uses
Business Establishments that Provide
Commercial Places of Amusement or
Recreation, Live Entertainment, or Service of
Alcoholic Beverages
C [4] C [4] C
-
–
Business Establishments that Sell or Dispense
Alcoholic Beverages for On-Site
Consumption
C C C
C
–
Restaurants
Full Service C [5] C [5] C [5] - –
Lodging
Hotels, Inns, Bed and Breakfast,
and Hostels
C C –
C
C
Campgrounds [6] C – – - –
Recreational Vehicle Parks C – – - –
Vacation Rentals with onsite
manager
– – –
C
–
Utilities, Major C C C C C
134
Item 8 D.

Utilities, Minor P P P P P
Wireless Communications Facilities See Chapter

17.104
Other Uses
Access Roadways C C C C C
Accessory Structures and Uses, New C [7] C C C C
Accessory Structures and Uses Established
Prior to Primary Use or Structure
C C –
C
–
Change of Visitor Serving Commercial Uses
within a Structure
C [8] – –
-
–
Food Service Accessory to a Lodging Use [9] C C – C C
Home Occupations C – – - – Section 17.96.040
Expansion of a Legal Nonconforming Use
within an Existing Structure
C – –
-
–
Legal Nonconforming Use Changed to a Use
of a Similar or More Restricted Nature
C – –
-
–
Live Entertainment C C C - –
Offices Accessory to Visitor Serving Use C C C C –
Parking Areas to Serve the Primary Use C C C C C
Retail Accessory to a Visitor Serving Use C C – C –
Temporary Assemblages of People, such as
Festivals, Fairs, and Community Events
C [10] C [10] C [10]
C [13]
–
Weddings C C C C –
Notes:
[1] Permitted only as an accessory use.
[2] Multifamily dwellings shall comply with development standards in the multifamily residential, medium density (RM-M) zoning district. [3] Single-family dwellings shall comply with development standards in the single-family residential (R-1) zoning district. [4] May not be located within two hundred feet of the boundary of a residential zoning district. [5] Drive-up and car service is not allowed.
[6] May include moderate intensity recreational uses, including tent platforms, cabins, parks, stables, bicycle paths, restrooms, and interpretive facilities.
[7] Intensification of the primary use is not allowed.
[8] The new use may not change the nature or intensity of the commercial use of the structure. [9] Permitted only to serve guests of the lodging use.
[10] Events may not exceed ten days and may not involve construction of permanent facilities. [11] Prohibited on the former Capitola Theater site (APNs 035-262-04, 035-262-02, 035-262-11, and 035-261-10) and the Inn at Depot Hill (APNs 036-121-38 and 036-121-33).
[12] Allowed in conjunction with overnight accommodation use (at least one on property) or grant of public access to a viewpoint. [13] Limited to a single two-day or less event per year.

B. Civic Uses in the VS-R Overlay Subzone. The planning commission may allow additional civic uses in the VS-R overlay subzone beyond those specifically identified in Table 17.28-1 if the planning commission finds the additional civic use to be consistent with the purpose of the VS-R overlay subzone and compatible with existing uses present on the site. (Res. 4223, 2021; Ord. 1043 § 2 (Att. 2), 2020)

17.28.030 Development standards.

A. General. Table 17.28-2 identifies development standards that apply in the -VS overlay zone outside of the mixed use village (MU-V) zoning district.

Table 17.28-2: Development Standards in the Visitor Serving Zoning Districts -VS Overlay Zone Additional Standards
Parcel Area, Minimum 5,000 sq. ft.
135
Item 8 D.

Impervious Surface, Maximum VS-R: 25%
VS-SB, VS-MC, and VS-ES: 50% [1]
VS-G: No maximum
Floor Area Ratio, Maximum 0.25
Setbacks, Minimum See Section 17.28.030(B)
Height, Maximum 30 ft. Section 17.28.030(C)
Note:
[1] In the VS-SB overlay subzone, the impervious surface requirement applies to the parcel located directly adjacent to Soquel Creek. In the VSES overlay subzone, the impervious surface calculation excludes the portion of parcel 036-142-28 located outside of the Monarch Cove Inn.

B. Setbacks. The following setback requirements apply in the -VS overlay zone:

1. The planning commission may require front, side and rear setbacks through the design review process to provide adequate light and air, ensure sufficient distance between adjoining uses to minimize any incompatibility, and to promote excellence of development. Where a side or rear yard abuts residential property, a setback of at least ten feet shall be provided.

2. Front and exterior side yards shall not be used for required parking facilities.

3. For the visitor serving El Salto parcels located adjacent to the bluff top, new development shall adhere to the setback and development provision provided in the LCP natural hazards policies and in Chapter 17.68 (GH Geologic Hazards District).

4. To protect the waters and riparian habitat of Soquel Creek, new development on the Shadowbrook Restaurant and Rispin parcels shall adhere to the LCP natural systems policies and Chapter 17.64 (Environmentally Sensitive Habitat Areas).

C. Height Exceptions. With a recommendation from the planning commission, the city council may approve additional height up to a maximum of thirty-six feet in the -VS overlay zone outside of the MU-V zoning district when all of the following findings can be made:

1. The proposed development and design is compatible with existing land uses in surrounding areas, the general plan, and the LCP.

2. Streets and thoroughfares are suitable and adequate to serve the proposed development.

3. The proposed development does not produce shadows which may adversely affect the enjoyment of adjacent streets, buildings, or open space.

4. Major public views of the shoreline, as identified in Capitola’s local coastal program, are not blocked by the proposed development.

D. Landscaping. See Table 17.72-2 in Chapter 17.72 (Landscaping) for minimum required landscaping requirements for visitor serving properties.

E. Lighting. In addition to outdoor lighting standards in Section 17.96.110 (Outdoor lighting), the following lighting requirements apply in the -VS overlay zone:

1. All exterior lighting shall be minimized, unobtrusive, down-directed and shielded using the best available dark skies technology, harmonious with the local area, and constructed or located so that only the area intended is illuminated and off-site glare is fully controlled and that light spill, sky glow and glare impacts are minimized.

2. Lighting of natural areas (such as creeks, riparian areas, the beach, etc.) shall be prohibited past the minimum amount that might be necessary for public safety purposes, except when temporarily permitted in conjunction with a temporary event.

3. The location, type and wattage of exterior lighting must be approved by the community development director prior to the issuance of building permits or the establishment of the use. 136
Item 8 D.

F. Coastal Development Permit. If a proposed development is located in the coastal zone, it may require a coastal development permit (CDP) as specified in Chapter 17.44 (Coastal Overlay Zone). Approval of a CDP requires conformance with the CDP findings for approval as specified in Section 17.44.130 (Findings for approval). (Res. 4223, 2021; Ord. 1043 § 2 (Att. 2), 2020).
137
Item 8 D.

Chapter 17.30
VISITOR SERVING DISTRICT – MONARCH COVE INN
Sections:

17.30.010 Applicability.

17.30.020 Purpose.

17.30.030 Architectural and site approval.

17.30.040 Conditionally permitted uses – Monarch Cove Inn.

17.30.050 Accessory uses.

17.30.060 Height.

17.30.070 Lot area.

17.30.080 Lot coverage.

17.30.090 Yards.

17.30.100 Parking.

17.30.110 Loading areas.

17.30.120 Landscaping and lighting.

17.30.010 Applicability.

The regulations set forth in this chapter apply to the Monarch Cove Inn parcels. (Res. 4223, 2021)

17.30.020 Purpose.

The purpose of the V-S district is to accommodate the visiting public with a range of opportunities to enjoy the city of Capitola’s coastal location. (Res. 4223, 2021)

17.30.030 Architectural and site approval.

A design permit shall be secured for the establishment and conduct of any conditional or accessory use in a V-S district as provided in Chapter 17.120. (Res. 4223, 2021)

17.30.040 Conditionally permitted uses – Monarch Cove Inn.

The following are the conditionally permitted uses allowed on the Monarch Cove Inn parcels and the portion of parcel 036-142-28 that is located between the two Monarch Cove Inn parcels:

A. Accessory structures and accessory uses appurtenant to any conditionally allowed use; B. Hotels, motels, hostels, inns; bed and breakfast lodging; C. Food service related to lodging;
D. Assemblages of people, such as festivals, not exceeding ten days and not involving construction of permanent facilities;
E. Accessory structures and uses established prior to establishment of main use or structure; F. Habitat restoration; habitat interpretive facility;
G. Live entertainment;
H. Public paths;
I. Business establishments that provide commercial places of amusement or recreation, live entertainment, or service of alcoholic beverages and that are located within two hundred feet of the boundary of a residential district; J. Weddings;
K. Business establishments that sell or dispense alcoholic beverages for consumption upon the premises; 138
Item 8 D.

L. Other visitor serving uses of a similar character, density, and intensity as those listed in this section and determined by the planning commission to be consistent and compatible with the intent of this chapter and the applicable land use plan;
M. Offices and limited retail use, accessory to visitor serving uses; N. One caretaker unit for the purpose of providing on-site security; O. Access roadway;
P. Residential use by the owners and their family members of up to one unit per parcel on the three parcels, as long as a minimum of six guest bedrooms are available for visitor serving use within the three parcels.

Q. Nonfamily residential use during the off-season months (November through April). (Res. 4223, 2021)

17.30.050 Accessory uses.

The following are accessory uses permitted in a V-S district:

A. Signs complying with the applicable regulations set forth in the sign ordinance.

B. Accessory uses and buildings customarily appurtenant to a permitted use. (Res. 4223, 2021)

17.30.060 Height.

No structures shall exceed thirty feet in height. Exceptions up to thirty-six feet in height may be granted subject to approval by the city council upon the recommendation of the planning commission when the following findings can be made:

A. The proposed development and design are compatible with existing land uses of surrounding areas and the general plan;
B. Streets and thoroughfares are suitable and adequate to serve the proposed development.

C. The proposed development does not produce shadows which may adversely affect the enjoyment of adjacent streets, buildings or open space.

D. Major public views are not blocked by the proposed development. (Res. 4223, 2021)

17.30.070 Lot area.

The minimum lot area required shall be five thousand square feet. (Res. 4223, 2021)

17.30.080 Lot coverage.

There shall be no specific maximum lot coverage set except as follows:

A. Sufficient space shall be provided to satisfy off-street parking and loading area requirements, notwithstanding that all parking may be provided within a structure(s); B. Front yard and open space requirements shall be satisfied; C. For the Monarch Cove Inn parcels, the allowable impervious site coverage (e.g., buildings, paving, decks, etc.) is fifty percent. (Res. 4223, 2021)

17.30.090 Yards.

A. Front, side and rear yard setbacks may be required through design permit approval in order to provide adequate light and air, assure sufficient distance between adjoining uses to minimize any incompatibility and to promote excellence of development. Where a side or rear yard abuts residential property a setback of at least ten feet shall be provided.

B. Front yards and corner lot side yards shall not be used for required parking facilities.

C. For the Monarch Cove Inn parcels located adjacent to the bluff top, new development shall adhere to the setback and development provisions provided in the LUP’s natural hazards policies and in certified zoning 139
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Chapter 17.68
(GH Geologic Hazards District). (Res. 4223, 2021)

17.30.100 Parking.

Parking standards shall be as provided in Chapter 17.76. (Res. 4223, 2021)

17.30.110 Loading areas.

Loading areas shall be as provided in Chapter 17.76. (Res. 4223, 2021)

17.30.120 Landscaping and lighting.

A minimum of five percent of the lot area shall be landscaped to ensure harmony with adjacent development in accordance with architectural and site approval standards. For the visitor serving Monarch Cove Inn parcels, fifty percent of the parcels shall consist of landscaped or open space areas. The planting of invasive plant species is prohibited. All exterior lighting shall be unobtrusive, harmonious with the local area and constructed or located so that only the area intended is illuminated and off-site glare is fully controlled. The location, type and wattage of the exterior lighting must be approved by the community development director prior to the issuance of building permits or the establishment of the use.
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Zoning Map
Existing Zoning Map
Proposed Zoning Map
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Exhibit B – General Plan and Local Coastal Plan Land Use Map

Existing General Plan Land Use Map
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Capitola City Council
Agenda Report
Meeting: October 24, 2024
From: Community Services and Recreation Department
Subject: Public Art Project
Recommended Action: Approve the Monterey Avenue Railing Public Art Project and authorize the City Manager to execute a Professional Services Agreement with artist Bruce Harman in the amount of $50,000 for the Project.

Background: The City of Capitola’s Public Art Ordinance (Municipal Code Chapter 2.58) requires all commercial projects valued at more than $250,000 to either incorporate art into the project or contribute to the City’s Public Art Fund. One of the responsibilities of the City’s Art and Cultural Commission is to administer the Public Art Fund and recommend public art projects for the City of Capitola (CMC Chapter 2.56).

The Monterey Avenue railing runs along the street as it slopes into the Capitola Village. The railing is 625 feet long and can be seen in its entirety as you drive in and out of the Village. The railing is made up of 2 inch diameter galvanized steel pipe in 8-foot sections. There are four horizontal pieces 7 inches apart in each section, making a total of 94 sections. The art installation will be mounted without altering the railing, no paint or drilling, allowing it to remain in its current state.

The Art and Cultural Commission has been considering a public art project for this location since March 2020. The Project was delayed due to the COVID-19 Pandemic, a Call to Artists was released on March 3, 2023. Staff received 5 submissions in response. In May 2023, the Art and Cultural Commission selected three artists to provide conceptual presentations. In December 2023, the Commission requested each presenting artist provide samples of their concept which were temporally installed at the project site for viewing and feedback. During the June 2024 Commission meeting, the Commission chose the concept provided by Bruce Harman and recommended the City Council select the concept and award a contract to complete the project.

Discussion: Bruce Harman has been a full-time artist in Santa Cruz County for 40 years. His public art features detailed renderings of wildlife and nature, including a series of signal boxes on 41st Avenue.

The public artwork concept is fish and other sea life cut from 3/16” thick aluminum sheets and installed upon the railing. The sea life rendered will feature a variety of local fish, including garibaldi, salmon, bass, mackerel, rockfish, and sharks. The artwork may include other creatures, such as sea lions, dolphins, sea otters, humpback whales, starfish, and mermaids. Sea kelp and sea grass will also be depicted.

The fish will range in size from about six inches to 36 inches. The larger sea life will be no larger than four feet long. The artwork will have corners and points rounded for safety. Each creature will be painted by hand on both sides, prepared with a special cleaning agent, primed for artistgrade acrylic paint, and finished with a UV and anti-graffiti clear coat. Each piece will have a custom stainless-steel bracket bolted onto it that attaches to the railing with special tamper-proof 143
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bolts. The artwork will be installed on the railing adjacent to the sidewalk on the west facing side of Monterey Avenue from Escalona Drive to El Camino Medio, spanning approximately 625 feet.

Installation on the railing will have varied spacing with a steady current of color and life will decorate the entire length of the railing. No modification will be made to the railing during the installation of the project.

Fiscal Impact: The proposed project cost is $50,000 for the artist contract and has been included in the FY 2024-25 Amended Budget in the restricted-revenue Public Art Fund.

Attachments:

1. Monterey Avenue Railing Public Services Agreement

2. Monterey Avenue Railing Public Art Proposal by Bruce Harman Report Prepared By: Nikki Bryant, Community Services & Recreation Director Reviewed By: Julia Gautho, City Clerk
Approved By: Jamie Goldstein, City Manager
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CITY OF CAPITOLA

PROFESSIONAL SERVICES AGREEMENT
Monterey Ave Railing Public Art Project
Bruce Harmon
THIS AGREEMENT is entered into on October 24, 2024, by and between the City of Capitola, a Municipal Corporation, hereinafter called "City" and Bruce Harman, hereinafter called "Consultant".

WHEREAS, City desires certain services described in Appendix One and Consultant is capable of providing and desires to provide these services;
NOW, THEREFORE, City and Consultant for the consideration and upon the terms and conditions hereinafter specified agree as follows:

SECTION 1
Scope of Services
The services to be performed under this Agreement are for the Monterey Ave Railing Public Art Project and further detailed in Appendix One.

SECTION 2
Duties of Consultant
All work performed by Consultant, or under its direction, shall be sufficient to satisfy the City's objectives for entering into this Agreement and shall be rendered in accordance with the generally accepted practices, and to the standards of, Consultant's profession.

Consultant shall not undertake any work beyond the scope of work set forth in Appendix One unless such additional work is approved in advance and in writing by City. The cost of such additional work shall be reimbursed to Consultant by City on the same basis as provided for in Section 4.

If, in the prosecution of the work, it is necessary to conduct field operations, security and safety of the job site will be the Consultant's responsibility excluding, nevertheless, the security and safety of any facility of City within the job site which is not under the Consultant's control.

Consultant shall meet with Nikki Bryant, Community Services & Recreation Director, called “Director," or other City personnel, or third parties as necessary, on all matters connected with carrying out of Consultant's services described in Appendix One. Such meetings shall be held at the request of either party hereto. Review and City approval of completed work shall be obtained monthly, or at such intervals as may be mutually agreed upon, during the course of this work.

SECTION 3
Duties of the City
City shall make available to Consultant all data and information in the City's possession which City deems necessary to the preparation and execution of the work, and City shall actively aid and assist Consultant in obtaining such information from other agencies and individuals as necessary.

The Director may authorize a staff person to serve as his or her representative for conferring with Consultant relative to Consultant's services. City shall not control or direct the manner in which the services are to be performed. However, the work in progress hereunder shall be reviewed from time to time by City at the discretion of City or upon the request of Consultant. If the work is satisfactory, it will be approved.

If the work is not satisfactory, City will inform Consultant of the changes or revisions necessary to secure approval.
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SECTION 4
Fees and Payment
Payment for the Consultant's services shall be made upon a schedule and within the limit, or limits shown, upon Appendix Two. Such payment shall be considered the full compensation for all personnel, materials, supplies, and equipment used by Consultant in carrying out the work. If Consultant is compensated on an hourly basis, Consultant shall track the number of hours Consultant, and each of Consultant’s employees, has worked under this Agreement during each fiscal year (July 1 through June 30) and Consultant shall immediately notify City if the number of hours worked during any fiscal year by any of Consultant’s employees reaches 900 hours. In addition, each invoice submitted by Consultant to City shall specify the number of hours to date Consultant, and each of Consultant’s employees, has worked under this Agreement during the current fiscal year.

SECTION 5
Changes in Work
City may order major changes in scope or character of the work, either decreasing or increasing the scope of Consultant's services. No changes in the Scope of Work as described in Appendix One shall be made without the City's written approval. Any change requiring compensation in excess of the sum specified in Appendix Two shall be approved in advance in writing by the City.

SECTION 6
Time of Beginning and Schedule for Completion
This Agreement will become effective when signed by both parties and will terminate on the earlier of:
 The date Consultant completes the services required by this Agreement, as agreed by the City; or  The date either party terminates the Agreement as provided below.

Work shall begin on or about November 1, 2024.

In the event that major changes are ordered or Consultant is delayed in performance of its services by circumstances beyond its control, the City will grant Consultant a reasonable adjustment in the schedule for completion provided that to do so would not frustrate the City's objective for entering into this Agreement.

Consultant must submit all claims for adjustments to City within thirty calendar days of the time of occurrence of circumstances necessitating the adjustment.

SECTION 7
Termination
City shall have the right to terminate this Agreement at any time upon giving ten days written notice to Consultant. Consultant may terminate this Agreement upon written notice to City should the City fail to fulfill its duties as set forth in this Agreement. In the event of termination, City shall pay the Consultant for all services performed and accepted under this Agreement up to the date of termination.

SECTION 8
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Insurance
Consultant shall procure and maintain for the duration of the contract and for one year thereafter, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, his agents, representatives, or employees.

Minimum Scope of Insurance
Coverage shall be at least as broad as:

1. Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 0001).

2. Insurance Services office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto).

3. Workers’ Compensation insurance as required by the State of California, and Employer’s Liability Insurance.

Minimum Limits of Insurance
Consultant shall maintain limits no less than:

1. General Liability:
(including operations,
products and completed
operations)
$1,000,000 per occurrence and $2,000,000 in
aggregate (including operations, for bodily injury,
personal and property damage.

2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.

3. Employer’s Liability Insurance $1,000,000 per accident for bodily injury and property damage.

Other Insurance Provisions
The commercial general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:

1. The City of Capitola, its officers, officials, employees and volunteers are to be covered as additional insured’s as respects: liability arising out of work or operations performed by or on behalf of the Consultant or automobiles owned, leased, hired or borrowed by the Consultant.

2. For any claims related to this project, the Consultant’s insurance coverage shall be primary insurance as respects the City, its officers, officials, employees and volunteers.

Any insurance or self-insurance maintained by the City, its officers, officials, employees or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it.

3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled except after prior written notice has been given to the City. 147
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Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.

Waiver of Subrogation
Contractor hereby agrees to waive rights of subrogation which any insurer of Contractor may acquire from Contractor by virtue of the payment of any loss. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City of Capitola for all work performed by the Contractor, its employees, agents and subcontractors.

Verification of Coverage
Consultant shall furnish the City with original certificates and amendatory endorsements affecting coverage by this clause. The endorsements should be on forms provided by the City or on other than the City’s forms provided those endorsements conform to City requirements. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications at any time.

SECTION 9
Indemnification
For General Services: To the fullest extent permitted by law, Consultant agrees to indemnify, defend, and hold harmless the City, its directors, officers, employees from and against any and all claims, demands, actions, liabilities, damages, judgments, or expenses (including attorneys’ fees and costs) arising from the acts or omissions of Consultant’s employees or agents in any way related to the obligations or in the performance of services under this Agreement, except for design professional services as defined in Civil Code § 2782.8, and except where caused by the sole or active negligence, or willful misconduct of the City.

For Design Professional Services under Civil Code §2782.8: To the fullest extent permitted by law, Consultant agrees to indemnify, defend, and hold harmless the City, its directors, officers, and employees from and against any and all claims, demands, actions, liabilities, damages, or expenses (including attorneys’ fees and costs) arising from the negligence, recklessness, or willful misconduct of the Consultant, Consultant’s employees, or agents in any way related to the obligations or in the performance of design professional services under this Agreement as defined in Civil Code §2782.8, except where caused by the sole or active negligence, or willful misconduct of the City. The costs to defend charged to the Consultant relating to design professional services shall not exceed the Consultant’s proportionate percentage of fault per Civil Code §2782.8.and against all claims, damages, losses, and expenses including attorney fees arising out of the performance of the work described herein, caused in whole or in part by any negligent act or omission of the Consultant, Consultant’s employees, agents or subcontractors, except where caused by the active negligence, sole negligence, or willful misconduct of the City.

SECTION 10
Civil Rights Compliance/Equal Opportunity Assurance
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Every supplier of materials and services and all consultants doing business with the City of Capitola shall be in compliance with the applicable provisions of the Americans with Disabilities Act of 1990, and shall be an equal opportunity employer as defined by Title VII of the Civil Rights Act of 1964 and including the California Fair Employment and Housing Act of 1980. As such, consultant shall not discriminate against any person on the basis of race, religious creed, color, national origin, ancestry, disability, medical condition, marital status, age or sex with respect to hiring, application for employment, tenure or terms and conditions of employment. Consultant agrees to abide by all of the foregoing statutes and regulations.

SECTION 11
Legal Action/Attorneys' Fees
If any action at law or in equity is brought to enforce or interpret the provisions of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees in addition to any other relief to which he or she may be entitled. The laws of the State of California shall govern all matters relating to the validity, interpretation, and effect of this Agreement and any authorized or alleged changes, the performance of any of its terms, as well as the rights and obligations of Consultant and the City.

SECTION 12
Assignment
This Agreement shall not be assigned without first obtaining the express written consent of the Director after approval of the City Council.

SECTION 13
Amendments
This Agreement may not be amended in any respect except by way of a written instrument which expressly references and identifies this particular Agreement, which expressly states that its purpose is to amend this particular Agreement, and which is duly executed by the City and Consultant. Consultant acknowledges that no such amendment shall be effective until approved and authorized by the City Council, or an officer of the City when the City Council may from time to time empower an officer of the City to approve and authorize such amendments. No representative of the City is authorized to obligate the City to pay the cost or value of services beyond the scope of services set forth in Appendix Two. Such authority is retained solely by the City Council. Unless expressly authorized by the City Council, Consultant's compensation shall be limited to that set forth in Appendix Two.

SECTION 14
Miscellaneous Provisions

1. Project Manager. Director reserves the right to approve the project manager assigned by Consultant to said work. No change in assignment may occur without prior written approval of the City.

2. Consultant Service. Consultant is employed to render professional services only and any payments made to Consultant are compensation solely for such professional services.

3. Licensure. Consultant warrants thereby represents that he or she has an established trade, occupation, or business in the same nature of services Consultant is performing under this Agreement.

Consultant warrants that he or she has complied with any and all applicable governmental licensing requirements.
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4. Other Agreements. This Agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the subject matter, and no other agreement, statement or promise related to the subject matter of this Agreement which is not contained in this Agreement shall be valid or binding.

5. City Property. Upon payment for the work performed, or portion thereof, all drawings, specifications, records, or other documents generated by Consultant pursuant to this Agreement are, and shall remain, the property of the City whether the project for which they are made is executed or not. The Consultant shall be permitted to retain copies, including reproducible copies, of drawings and specifications for information and reference in connection with the City's use and/or occupancy of the project. The drawings, specifications, records, documents, and Consultant's other work product shall not be used by the Consultant on other projects, except by agreement in writing and with appropriate compensation to the City.

6. Consultant's Records. Consultant shall maintain accurate accounting records and other written documentation pertaining to the costs incurred for this project. Such records and documentation shall be kept available at Consultant's office during the period of this Agreement, and after the term of this Agreement for a period of three years from the date of the final City payment for Consultant's services.

7. Independent Contractor. In the performance of its work, it is expressly understood that Consultant, including Consultant's agents, servants, employees, and subcontractors, is an independent contractor solely responsible for its acts and omissions, and Consultant shall not be considered an employee of the City for any purpose. Consultant expressly warrants not to represent, at any time or in any manner, that Consultant is an employee of the City.

8. Conflicts of Interest. Consultant stipulates that corporately or individually, its firm, its employees and subcontractors have no financial interest in either the success or failure of any project which is, or may be, dependent on the results of the Consultant's work product prepared pursuant to this Agreement.

9. Notices. All notices herein provided to be given, or which may be given by either party to the other, shall be deemed to have been fully given and fully received when made in writing and deposited in the United States mail, certified and postage prepaid, and addressed to the respective parties as follows:

CITY CONSULTANT

CITY OF CAPITOLA
420 Capitola Avenue
Capitola, CA 95010
831-475-7300
Bruce Harman
5601 Freedom Blvd
Aptos, CA 95003
831-325-3617
By:__________________________________
Benjamin Goldstein, City Manager
By:__________________________________
Bruce Harman, Artist
Dated:________________________________ Dated:_______________________________ 150
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APPENDIX ONE
Scope of Services
The Consultant agrees to design and install Artwork as described: fish and other sea life cut from 3/16” thick aluminum sheets. The sea life rendered will feature a variety of local fish, including Garibaldi, Salmon, Bass, Mackerel, Rockfish, and Shark. The artwork may include other creatures such as Sea Lions, Dolphins, Sea Otters, Humpback Whales, Starfish and mermaid. Sea Kelp and Sea Grass will also be depicted.

The fish will range in size from about six (6) inches to thirty-six (36) inches. The larger sea life will be no larger than four (4) feet long. The artwork will have corners and points rounded for safety. Each creature will be painted by hand on both sides, prepared with a special cleaning agent, primed for artist grade acrylic paint and finished with a UV and anti-graffiti clear coat. Each piece will have a custom stainless-steel bracket bolted onto it that attaches to the railing with special tamper-proof bolts.

The artwork will be installed on the railing adjacent to the sidewalk on the west side of Monterey Avenue from Escalona Dr to El Camino Medio, spanning approximately six hundred twenty-five (625) feet.

Installation on the railing will have varied spacing with a steady current of color and life will decorate the entire length of the railing.
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APPENDIX TWO
Fees and Payments
For the services performed, City will pay consultant on a not-to-exceed, lump sum basis upon satisfactory completion of the services and delivery of work products. Payments will be issued monthly as charges accrue.

Consultant hereby represents and warrants, based upon Consultant’s independent determination of the time and labor, which will be required to perform said services, that Consultant will provide all said services at a cost which will not exceed the maximum price set forth in this agreement for Consultant’s services. Consultant hereby assumes the risk that Consultant will perform said services within this maximum price constraint and Consultant acknowledges that its inability to do so shall not excuse completion of the services and shall not provide a basis for additional compensation.

The amount and schedule of payments to the Consultant are as contained below:
 First payment: Consultant will invoice City for 50% of total compensation at contract execution.  Last payment: City will pay remaining 50% of the total compensation upon project completion.

In no event shall the total fee charged for the scope of work set forth in Appendix One exceed the total budget of $50,000.00 (Fifty Thousand Dollars and Zero Cents), without specific, written advance authorization from the City.
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Monterey Ave
Railing Public Art
Project
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Recommended Action
Approve Monterey Avenue Railing
Public Art Project and authorize the
City Manager to execute a Professional
Services Agreement with artist Bruce
Harman in the amount of $50,000 for
the Project.
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BACKGROUND
• Art & Cultural Commission
responsibility to administer the
public art fund
• Commission designated a project
for railing prior to March 2020 but
delayed due to COVID-19
• Railing is 625 feet long with 2-inch
diameter galvanized steel pipe
• Art installation will not alter railing
but decorate the railing
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BACKGROUND
• In March 2023, a Call to Artist was published and 5
submissions were received
• The Committee reviewed all submissions and invited 3
artist to present a concept
• December 2023, all artists submitted samples for site viewing and feedback
• June 2024, the commission selected the proposed
concept provided by Bruce Harmon and recommends
the project to City Council for approval
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Monterey Ave Railing Public Art
Concept
Bruce Harman: Artist
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FISCAL IMPACT
Proposed project cost is
$50,000 for the artist
contract from the
restricted revenue
Public Art Fund.
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Monterey Avenue:
west facing side of
railing
From Escalona Drive to El Camino Medio
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Recommended Action
Approve the Monterey Avenue Railing
Public Art Project and authorize the
City Manager to execute a Professional
Services Agreement with artist Bruce
Harman in the amount of $50,000 for
the Project.
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Questions
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Capitola City Council
Agenda Report
Meeting: October 24, 2024
From: Community Development Department
Subject: 2024 Zoning Code Updates First Reading
Recommended Action: 1) Introduce for first reading, by title only, waiving further reading of the text, an ordinance amending Capitola Municipal Code Title 17: Zoning, Chapter 18.03: Density Bonus, and the Zoning Map (collectively, the “Zoning Code Amendments”), as well as amending Chapter 9.61:

Marijuana Sales, Processing and Cultivation; and 2) adopt a resolution authorizing submittal of the Zoning Code Amendments to the California Coastal Commission for the certification of an amendment to the Local Coastal Program.

Project Description: Application #24-0026 for Amendments to Capitola Municipal Code Title 17: Zoning, Chapter 18.03: Density Bonus, and the Zoning Map, collectively known as the “Zoning Code Amendments,” as well as a conforming amendment to Chapter 9.61, Marijuana Sales, Processing and Cultivation. The proposed Zoning Code amendments will impact the development standards and regulations for properties Citywide. The Zoning Code and Zoning Map are part of the City’s Local Coastal Program (LCP), and amendments require certification by the California Coastal Commission before taking effect in the Coastal Zone. The amendments to Chapter 9.61 are conforming changes that implement the Zoning Code Amendments allowing for retail cannabis in the C-C zone when fronting 41st Avenue. The proposed Zoning Code Amendments are exempt from CEQA, pursuant to CEQA Guidelines Section 15061(b)(3).

Background: On August 22, 2024, the City Council adopted amendments to the 2023-2031 Housing Element of the General Plan. On August 30, 2024, the California Department of Housing and Community Development (HCD) certified the 2023-2031 Housing Element. The Housing Element establishes goals and policies for housing production in Capitola as required by state law. The Housing Element also contains programs with required City actions to implement Housing Element policies. The City must complete these actions by the dates specified for each program. Many Housing Element programs require amendments to the Capitola Zoning Code (Municipal Code Title 17) by the end of 2024 and 2025.

The Planning Commission discussed Zoning Code Amendments to implement the Housing Element at nine meetings over the past eight months. Table 1 shows the topics discussed at each meeting. At these meetings, the Planning Commission also discussed Zoning Code Amendments to address needed Zoning Code updates since the Zoning Code was last updated, but which are not required by Housing Element programs. On September 19 and October 3, 2024, the Planning Commission held a public hearing to consider the Zoning Code Amendments, take public comment, and voted to recommend that the City Council adopt the proposed Zoning Code Amendments (Planning Commission Resolutions 2024-02 and 2024-03).

Table 1: Planning Commission Meetings
Meeting Date Primary Discussion Topics
February 1, 2024 Incentives for Community Benefits; Second Story Decks; Second Story Windows; Building Massing; Capitola Character
February 15, 2024 Missing Middle Housing; Alternative Housing Types; Parking; Lot Consolidation; Building Massing
May 2, 2024 Residential Multifamily (RM Zone) Density and Development Standards; Housing on Religious Facilities Sites; Design Permit Process June 6, 2024 RM Zone Density and Standards
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July 23, 2024 Design Review; Lot Consolidation; Replacement Housing; Parking; Special Needs Housing
August 15, 2024 Multifamily Residential (RM) Zoning Districts; Housing on Religious Sites; Retail Cannabis; Office Uses in C Zones; “Good Standing” Provision.

September 5, 2024
Density Bonus; Office Uses in Commercial Zones; Second Story Decks and Balconies; Large Residential Care Facilities; Planned Development Zones; Historic Character – Design Permit Criteria
September 19, 2024
Public Hearing on All Amendments – Recommendation on all amendments except Design Permit process and Updated Density Bonus.

Continued to October 3, 2024
October 3, 2024 Public Hearing on All Amendments
The proposed Zoning Code amendments do not include changes to standards for the Capitola Mall site or the Residential Multifamily zoning district. The City will complete these amendments in 2025, consistent with Housing Element Programs 1.7 and 1.6.

Discussion: Attachment 1 contains an ordinance comprising the Zoning Code Amendments. Attachment 2 contains a summary table identifying the amendments and their associated Housing Element program, and/or consistency with the General Plan. Noteworthy amendments include the following:
 Corner Duplexes: Allows duplex homes allowed on corner parcels in the R-1 Zone. (Implementing HE Program 1.6)
 Lot Consolidation: Increases height and floor area ratio (FAR) for housing development projects that consolidate adjacent Housing Element opportunity sites. (Implementing HE Program 1.1)  Parking: Reduces parking required for multifamily dwellings, single-family homes, group housing, residential care facilities, transitional housing, and senior housing. (Implementing HE Program

1.6)
 Housing on Education and Religious Sites: Allows affordable housing projects on land owned by religious institutions. (Implementing HE Program 1.8)  Replacement Housing: Language requiring no net loss of housing units and replacement of affordable units (Implementing HE Program 1.1)
 Density Bonus: Establishes density bonus procedures consistent with recent updates to state law. (Implementing HE Programs 1.6, 2.5, 3.6)
 Daycares: Allows daycares with a Minor Use Permit in commercial zones. (Implementing HE Program 3.6)
 Retail Cannabis: Allows retail cannabis in the C-C zones when fronting 41st Avenue. (Consistent with General Plan Policies LU-1.5 (Inclusiveness), LU-1.7 (Economic Viability), LU-3.1 (Land Use Diversity) and LU-9.4 (Retail Protection along the 41st Avenue Corridor), and consistent with the Community Commercial land use designation, which provides for an area for commercial uses primarily serving Capitola residents. Permitted land uses include general retail, personal services, restaurants, offices, and multi-family housing as part of a mixed-use project)  Office in Commercial Zones: Expands allowed location for ground floor office uses in the C-R and C-C zones. (Consistent General Plan Policies LU-1.6 (Balanced Community), LU-1.7 (Economic Viability), and LU-3.1 (Land Use Diversity), and consistent with the Regional Commercial and Community Commercial land use designations, which allow for office uses) The proposed amendments also eliminate the Affordable Housing Overlay Zone in the Zoning Code and Zoning Map, as called for by Housing Element Programs 1.1 and 1.6. The Affordable Housing Overlay Zone is obsolete, given that density incentives are now available under state density bonus law.

California Coastal Commission Certification: The Zoning Code is part of Capitola’s Local Coastal Program (LCP), and as such, Zoning Code amendments must be certified by the Coastal Commission before they become effective in the coastal zone. When adopting LCP amendments, the Coastal Commission requires cities to consider consistency with the LCP Land Use Plan and potential impacts on public access to the coast. This required analysis is provided in Attachment 3. Attachment 4 contains 171
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a draft resolution authorizing City staff to submit the Zoning Code amendments to the Coastal Commission for certification. Coastal Commission staff provided a preliminary review of the draft amendments and suggested edits to the accessory dwelling unit standards in section 17.74.030(E). The Coastal Commission edits are represented in green highlights.

Environmental Determination: The proposed Municipal Code amendments are exempt from CEQA, pursuant to CEQA Guidelines Section 15061(b)(3), which provides that a project is exempt from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The amendment to Chapter 9.61 not part of the Zoning Code, is a conforming amendment to be consistent with the proposed Zoning Code amendments, and does not authorize any new land uses or expansions of existing uses.

Further, the Municipal Code amendments were considered within the General Plan EIR and the Addendum to the General Plan EIR for the Housing Element, adopted August 22, 2024. No supplemental or subsequent EIR is required because none of the circumstances requiring a supplemental or subsequent EIR exist (CEQA Guidelines Section 15162):
(a) No substantial changes are proposed in the project which will require major revisions of the previous EIR or its Addendum due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. The Zoning Ordinance and Zoning Map amendments do not create any additional environmental impacts. (b) No substantial changes have occurred with respect to the circumstances under which the project is undertaken. The General Plan EIR Update Addendum was adopted in August 2024, and no substantial evidence has been submitted showing any change in the circumstances applicable to the project.
(c) No new information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified or its Addendum was adopted as complete, has been submitted to the City.

The proposed Zoning Code Amendments are also exempt from CEQA pursuant to CEQA Guidelines Section 15183, as they are consistent with and implement the densities established in the General Plan as analyzed in the General Plan EIR, as well as Housing Element programs that were analyzed in the Addendum to the General Plan EIR. These amendments do not increase development potential beyond levels analyzed in the EIR and the Addendum. The amendments make changes to the Zoning Code to comply with state housing laws and bring the Zoning Code into compliance with state requirements that already apply to proposed development. The Zoning Code Amendments do not involve any peculiar environmental effects or effects, including cumulative impacts, that were not analyzed as significant effects in the General Plan EIR and its Addendum, and no new information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified or its Addendum was adopted as complete, has been submitted to the City.

Fiscal Impact: No fiscal impacts.

Attachments:

1. Draft Ordinance
 Exhibit A: Proposed Zoning Code Amendments
 Exhibit B: Proposed Zoning Map Amendment
 Exhibit C: Proposed Chapter 18.03 Amendments

2. Zoning Code Amendments Summary Table

3. LCP Consistency Analysis

4. LCP Amendment Application Resolution
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Report Prepared By: Ben Noble, Consultant, Sean Sesanto, Associate Planner Reviewed By: Julia Gautho, City Clerk; Samantha Zutler, City Attorney; Katie Herlihy, Community Development Director
Approved By: Jamie Goldstein, City Manager
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ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CAPITOLA AMENDING CAPITOLA MUNICIPAL CODE TITLE 17 (ZONING), CHAPTER 18.03 (DENSITY BONUS), AND THE ZONING MAP TO IMPLEMENT THE 2023-2031 GENERAL PLAN

HOUSING ELEMENT AND MAKE OTHER NECESSARY UPDATES, AS WELL AS AMENDING CHAPTER 9.61 (MARIJUANA SALES, PROCESSING, AND

CULTIVATION)
WHEREAS, on August 22, 2024, the City Council adopted amendments to the 2023-2031 Housing Element of the General Plan (Housing Element) and an Addendum to the General Plan Update Final Environmental Impact Report; WHEREAS, on August 30, 2024, the California Department of Housing and Community Development (HCD) certified the Housing Element; WHEREAS, while the City is not required to process any rezonings as part of its obligations under the Housing Element, the Housing Element requires the City to amend Municipal Code Title 17 (Zoning Code) and Chapter 18.03 (Density Bonus) to implement Housing Element goals and policies within Housing Element program-established timelines;
WHEREAS, recent state law updates and staff’s review of the Municipal Code require further amendments to the Code to ensure consistency with state law and the prevention of any inconsistencies;
WHEREAS, City staff prepared draft amendments to Municipal Code Title 17, Chapter 18.03, and the Zoning Map (collectively, the Zoning Code Amendments) to implement the Housing Element and address additional issues and policy goals that have arisen since the Zoning Code was last updated;
WHEREAS, the Zoning Code Amendments also remove the now-obsolete Affordable Housing Overlay Zone from the Zoning Code and Zoning Map, consistent with Housing Element Programs 1.1 and 1.6 and given that density incentives are now widely available under state density bonus law as well as the Zoning Code Amendments to Municipal Code Chapter 18.03;
WHEREAS, the Planning Commission held work sessions on February 1, February 16, May 2, June 6, July 23, August 15, and September 5, 2024 to consider the draft Zoning Code Amendments, receive public comment, and provide feedback to City staff;
WHEREAS, the City mailed notice of the Zoning Code amendments’ availability for public review, and made the public review draft available on August, 6, 2024, in compliance with California Coastal Act public participation requirements; WHEREAS, a conforming amendment is required for Municipal Code Section

9.61.010(I) (not part of the Zoning Code) to be consistent with the Zoning Code Amendments pertaining to retail cannabis; and
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WHEREAS, the Planning commission considered the Zoning Code Amendments at a duly noticed public hearing on September 19, 2024, and October 3, 2024. After taking public comment and closing the public hearing, the Planning Commission voted to adopt Resolution Nos. 2024-02 and 2024-03, recommending the City Council find the Zoning Code Amendments exempt from CEQA and adopt the Zoning Code Amendments.

NOW, HEREBY BE IT ORDAINED by the City of Capitola as follows:

Section 1: The above findings are adopted and incorporated herein. The City Council makes the following additional findings:

1. The Zoning Code Amendments are consistent with and help implement the goals, objectives and policies of the General Plan, including the Housing Element, including as follows:
• Corner Duplexes: Allows duplex homes allowed on corner parcels in the R1 Zone. (Implementing Housing Element Program 1.6) • Lot Consolidation: Increases height and floor area ratio (FAR) for housing development projects that consolidate adjacent Housing Element opportunity sites. (Implementing Housing Element Program 1.1) • Parking: Reduces parking required for multifamily dwellings, single-family homes, group housing, residential care facilities, transitional housing, and senior housing. (Implementing Housing Element Program 1.6) • Housing on Education and Religious Sites: Allows affordable housing projects on land owned by religious institutions. (Implementing Housing Element Program 1.8)
• Replacement Housing: Language requiring no net loss of housing units and replacement of affordable units (Implementing Housing Element Program

1.1)
• Density Bonus: Establishes density bonus procedures consistent with recent updates to state law. (Implementing Housing Element Programs 1.6, 2.5,

3.6)
• Daycares: Allows daycares with a Minor Use Permit in commercial zones. (Implementing Housing Element Program 3.6)
• Retail Cannabis: Allows retail cannabis in the C-C zones when fronting 41st Avenue. (Consistent with General Plan Policies LU-1.5 (Inclusiveness), LU1.7 (Economic Viability), LU-3.1 (Land Use Diversity) and LU-9.4 (Retail Protection along the 41st Avenue Corridor), and consistent with the Community Commercial land use designation, which provides for an area for commercial uses primarily serving Capitola residents. Permitted land uses include general retail, personal services, restaurants, offices, and multifamily housing as part of a mixed-use project) 175
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• Office in Commercial Zones: Expands allowed location for ground floor office uses in the C-R and C-C zones. (Consistent General Plan Policies LU-1.6 (Balanced Community), LU-1.7 (Economic Viability), and LU-3.1 (Land Use Diversity), and consistent with the Regional Commercial and Community Commercial land use designations, which allow for office uses);

2. The Zoning Code Amendments will not be detrimental to the public interest, health, safety, convenience, or welfare of the City;

3. The Zoning Code Amendments are internally consistent with other applicable provisions of the Zoning Code; and

4. The Zoning Map amendment sites are physically suitable in terms of design, location, shape, size, and other characteristics to ensure that the permitted land uses and development will comply with the Zoning Code and General Plan and contribute to the health, safety, and welfare of the property, surrounding properties, and the community at large.

Section 2: Title 17 (Zoning) and Chapter 18.03 of the Capitola Municipal Code are amended as set forth in Attachments 1 and 3, attached hereto and incorporated herein by this reference.

Section 3: The official Zoning Map of the City of Capitola is amended as set forth in Attachment 2, attached hereto and incorporated herein by this reference.

Section 4: Section 9.61.010(I) of the Capitola Municipal Code is amended as follows (additions shown in underline, deletions shown in strikeout):

9.61.010 Findings
I. The City regulates commercial cannabis activities, requiring consistency with Chapter 5.36 of this code, Retail Cannabis Licenses, a licensing structure of cannabis retail businesses, and Chapter 17.24 of this code, Commercial and Industrial Zoning Districts, Section 17.24.020, authorizing retail cannabis sales in specified locations.

On December 13, 2018, Ordinance 1021 became effective, adding Chapter 5.36 of this code, Retail Cannabis Licenses, establishing a licensing structure for cannabis retail businesses, and amending Chapter 17.24 of this code, Commercial and Industrial Zoning Districts, Section 17.24.020, to authorize retail cannabis sales in the CR (Regional Commercial) zoning district.

Section 5: Environmental Review.

The City Council finds and determines that adoption of this Ordinance is exempt from CEQA, pursuant to CEQA Guidelines Section 15061(b)(3), which provides that a project is exempt from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment.

The Ordinance is also exempt from CEQA pursuant to CEQA Guidelines Section 15183 – the Community Plan exemption. The proposed Zoning Code Amendments are 176
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consistent with and implement the densities established in the General Plan as analyzed in the General Plan EIR, as well as Housing Element programs that were analyzed in the Addendum to the General Plan EIR. These amendments do not increase development potential beyond levels analyzed in the EIR and the Addendum. The amendments make changes to the Zoning Code to comply with state housing laws and bring the Zoning Code into compliance with state requirements that already apply to proposed development. The Zoning Code Amendments do not involve any peculiar environmental effects or effects, including cumulative impacts, that were not analyzed as significant effects in the General Plan EIR and its Addendum. No new information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified or its Addendum was adopted as complete, has been submitted to the City.

The City Council further finds that the action to adopt this Ordinance was considered within the General Plan EIR and the Addendum to the General Plan EIR for the Housing Element, adopted August 22, 2024. No supplemental or subsequent EIR is required because none of the circumstances requiring a supplemental or subsequent EIR exist (CEQA Guidelines Section 15162):
(a) No substantial changes are proposed in the project which will require major revisions of the previous EIR or its Addendum due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. The Zoning Code and Zoning Map amendments do not create any additional environmental impacts;
(b) No substantial changes have occurred with respect to the circumstances under which the project is undertaken. The General Plan EIR Update Addendum was adopted in August 2024, and no substantial evidence has been submitted showing any change in the circumstances applicable to the project; and
(c) No new information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified or its Addendum was adopted as complete, has been submitted to the City.

Section 6: Effective Date.

This Ordinance shall be in full force and effect thirty (30) days from its adoption except that it will not take effect within the coastal zone until certified by the California Coastal Commission. U p o n i t s a d o p t i o n b y t h e C i t y C o u n c i l , the Community Development Director shall cause this Ordinance to be transmitted to the California Coastal Commission. This Ordinance shall take effect in the coastal zone immediately upon certification by the California Coastal Commission or upon the concurrence of the Commission with a determination by the Coastal Commission Executive Director that the Ordinance adopted by the City is legally adequate.
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Section 7: Severability.

The City Council hereby declares every section, paragraph, sentence, cause, and phrase of this Ordinance is severable. If any section, paragraph, sentence, clause, or phrase of this Ordinance is for any reason found to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining sections, paragraphs, sentences, clauses, or phrases.

Section 8: Certification.

The City Clerk shall cause this Ordinance to be posted and/or published in the manner required by law.

This Ordinance was introduced at the meeting of the City Council on the 24th day of October, 2024, and was adopted at a regular meeting of the City Council on the __ day of __________, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Kristin Brown, Mayor
Attest:

Julia Gautho, City Clerk
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Capitola Municipal Code
Chapter 17.12 ZONING DISTRICTS AND MAP

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The Capitola Municipal Code is current through Ordinance 1063, passed September 28, 2023.

Chapter 17.12

ZONING DISTRICTS AND MAP
Sections:

17.12.010 Purpose.

17.12.020 Zoning districts.

17.12.030 Zoning map.

17.12.010 Purpose.

This chapter identifies the zoning districts that apply to land within the Capitola city limits and establishes the official Capitola zoning map. (Ord. 1043 § 2 (Att. 2), 2020)

17.12.020 Zoning districts.

A. Base Zoning Districts. Capitola is divided into zoning districts that implement the general plan land use map as shown in Table 17.12-1. Within the coastal zone, the general plan land use map is the certified coastal land use plan map.

Table 17.12-1: Base Zoning Districts
Zoning District
Symbol Name of Zoning District General Plan Land Use Designation Residential Zoning Districts
R-1 Residential Single-Family Single-Family Residential (R-SF) RM-L Residential Multifamily, Low Density
RM-M Residential Multifamily, Medium Density Multifamily Residential (R-MF) RM-H Residential Multifamily, High Density
MH Mobile Home Park Mobile Home Park (MH)
Mixed Use Zoning Districts
MU-V Mixed Use, Village Village Mixed-Use (MU-V)
MU-N Mixed Use, Neighborhood Neighborhood Mixed-Use (MU-N) Commercial and Industrial Zoning Districts
C-C Commercial, Community Community Commercial (C-C)
C-R Commercial, Regional Regional Commercial (C-R)
I Industrial Industrial (I)
Other Zoning Districts
CF Community Facility Public/Quasi-Public Facility (P/QP) P/OS Parks and Open Space Parks and Open Space (P/OS)
PD Planned Development N/A
B. Overlay Zones. The zoning code and zoning map include the overlay zones shown in Table 17.12-2. Overlay zones impose additional regulations on properties beyond what is required by the underlying base zoning district.

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Table 17.12-2: Overlay Zones
Overlay Zone
Symbol Name of Overlay Zone
-AH Affordable Housing
-VRU Vacation Rental Use
-VR Village Residential
-VS Visitor Serving
-CZ Coastal Zone
(Ord. 1043 § 2 (Att. 2), 2020)

17.12.030 Zoning map.

A. Adoption. The city council hereby adopts the Capitola zoning map (“zoning map”), which establishes the boundaries of all base zoning districts and overlay zones provided for in the zoning map.

B. Incorporation by Reference. The zoning map, including all legends, symbols, notations, references, and other information shown on the map, is incorporated by reference and made a part of the zoning code.

C. Location. The zoning map is kept, maintained, and updated electronically by the community development department, and is available for viewing by the public at the department. (Ord. 1043 § 2 (Att. 2), 2020) 180
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Capitola Municipal Code
Chapter 17.16 RESIDENTIAL ZONING DISTRICTS

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Chapter 17.16

RESIDENTIAL ZONING DISTRICTS
Sections:

17.16.010 Purpose of the residential zoning districts.

17.16.020 Land use regulations.

17.16.030 Development standards.

17.16.010 Purpose of the residential zoning districts.

A. General. The purpose of the residential zoning districts is to support attractive, safe, and friendly neighborhoods consistent with Capitola’s intimate small-town feel and coastal village charm. Development within the residential zoning districts will feature high-quality design that enhances the visual character of the community. The mass, scale, and design of new homes shall be compatible with existing homes in neighborhoods and carefully designed to minimize impacts to existing homes. Residential zoning districts contain a range of housing types and community facilities to support diverse and complete neighborhoods with a high quality of life for residents.

B. Specific.

1. Residential Single-Family (R-1) Zoning District. The purpose of the R-1 zoning district is to protect and enhance the unique qualities of individual neighborhoods in Capitola. The R-1 zoning district allows for variation in development standards based on the existing development patterns within these neighborhoods.

New development will respect the existing scale, density, and character of neighborhoods to strengthen Capitola’s unique sense of place.

2. Residential Multifamily (RM) Zoning District. The purpose of the RM zoning district is to accommodate a range of housing types to serve all Capitola residents. The RM zoning district allows single-family and multifamily housing at higher densities to maintain and increase the supply of affordable housing choices.

Housing in the RM zoning district will be carefully designed to enhance Capitola’s unique identity and to minimize impacts on adjacent land uses and structures. The RM zone is divided into three subzones (RM-L, RM-M, and RM-H) allowing for a range of permitted residential densities.

3. Mobile Home Park (MH) Zoning District. The MH zone provides areas for exclusive development of mobile home parks. Mobile home parks provide a valuable source of affordable housing serving Capitola’s lowerincome and senior residents. (Ord. 1043 § 2 (Att. 2), 2020)

17.16.020 Land use regulations.

A. Permitted Land Uses. Table 17.16-1 identifies land uses permitted in the residential zoning districts.

Table 17.16-1: Permitted Land Uses in the Residential Zoning Districts Key Zoning District
P Permitted Use
R-1 RM MH Additional Regulations
A Administrative Permit
required
M Minor Use Permit required
C Conditional Use Permit
required
– Use not allowed
Residential Uses [5]
Cohousing P P P
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Key Zoning District
P Permitted Use
R-1 RM MH Additional Regulations
A Administrative Permit
required
M Minor Use Permit required
C Conditional Use Permit
required
– Use not allowed
Duplex Homes P [4]– P –
Elderly and Long-Term Care – C –
Group Housing – P –
Mobile Home Parks – C P [1] Chapter 17.100
Multifamily Dwellings – P –
Residential Care Facilities, Small P P C [2]
Residential Care Facilities, Large C PC C [2] Section 17.96.080 Accessory Dwelling Units –A A – Chapter 17.74
Single-Family Dwellings P P C [2]
Public and Quasi-Public Uses
Community Assembly C C C
Day Care Centers C C C
Home Day Care P P P
Parks and Recreational Facilities – C C
Public Pathways and Coastal Accessways C C C
Schools, Public or Private – C C
Commercial Uses
Bed and Breakfast C C –
Vacation Rentals See Section 17.40.030
Transportation, Communication, and Utility Uses
Utilities, Major C C C
Utilities, Minor P P P
Wireless Communications Facilities See Chapter 17.104
Other Uses
Accessory Uses and Structures P [3] P [3] P [3] Chapter 17.52 Home Occupation PA PA PA Section 17.96.040
Temporary Uses and Structures M M – Section 17.96.180
Urban Agriculture
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Key Zoning District
P Permitted Use
R-1 RM MH Additional Regulations
A Administrative Permit
required
M Minor Use Permit required
C Conditional Use Permit
required
– Use not allowed
Home Gardens P P P
Community Gardens M M M
Urban Farms C C C
Notes:
[1] May include offices incidental and necessary to conduct a mobile home park use. [2] Permitted on the mobile home park parcel or on a separate parcel of no less than five thousand square feet. [3] An accessory structure that exceeds the development standards of Chapter 17.52 requires a conditional use permit. [4] Allowed on corner parcels only.
[5] See Section 17.96.210 (Demolition and Replacement of Dwelling Units) for requirements that apply to new residential uses on sites identified as nonvacant in the General Plan Housing Element inventory of land suitable for residential development.

B. Additional Permits. In addition to permits identified in Table 17.16-1, development projects in the residential zoning districts may also require a design permit pursuant to Chapter 17.120 (Design Permits). Modifications to a historic resource may require a historic alteration permit pursuant to Chapter 17.84 (Historic Preservation).

Development in the coastal zone may require a coastal development permit pursuant to Chapter 17.44 (Coastal Overlay Zone) independent of and in addition to any other required permit or approval. (Ord. 1057 § 2 (Att. 1), 2022; Ord. 1043 § 2 (Att. 2), 2020)

17.16.030 Development standards.

A. General Standards – Single-Family and Multifamily Zoning Districts. Table 17.16-2 identifies development standards that apply in the R-1 and RM zoning districts.

Table 17.16-2: Development Standards in the R-1 and RM Zoning Districts R-1 RM Additional Standards
Site Requirements
Parcel Area, Minimum [1] 5,000 sq. ft. N/A
Parcel Width, Minimum [1] 30 ft. N/A
Parcel Depth, Minimum [1] 80 ft. N/A
Floor Area Ratio, Maximum See Section 17.16.030(B)(1) N/A Section 17.16.030(B) Section 17.48.040
Building Coverage, Maximum N/A 40%
Open Space N/A Section 17.16.030(C)(2)
Parcel Area per Unit, Minimum N/A RM-L: 4,400 sq. ft.

RM-M: 2,900 sq. ft.

RM-H: 2,200 sq. ft.

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R-1 RM Additional Standards
Parking and Loading See Chapter 17.76
Structure Requirements
Setbacks, Minimum Sections 17.48.030(B)(2) through
(56)
Front Ground floor: 15 ft.

Garage: 20 ft.

Second story: 20 ft.

Main structure: 15 ft.

Garage: 20 ft.

Section 17.16.030(B)(2)
Section 17.16.030(B)(5) Garage
Setback: Section 17.16.030(B)(4)
Rear 20% of parcel depth; 25 ft.
max.
15% of parcel depth Section 17.16.030(B)(45)
Interior Side Ground floor: 10% of parcel
width [2]
Second story: 15% of parcel
width
10% of parcel width [2] Sections 17.16.030(B)(45) and (56) Street Side, Corner Lots 10 ft. 10 ft. Section 17.16.030(B)(45) Height, Maximum 25 ft. RM-L: 30 ft.

RM-M: 30 ft.

RM-H: 35 ft.

Sections 17.16.030(B)(67) and (8)
Section 17.48.020
Accessory Structures and Detached
Garages
See Chapter 17.52 [3]
Notes:
[1] Parcel area, width, and depth requirements apply only to the creation of new parcels. These requirements do not apply to legally created parcels existing as of June 9, 2021. See Title 16 (Subdivisions) for requirements that apply to lot line adjustments to existing parcels that do not comply with the parcel area, width, and depth requirements in this table. [2] Regardless of parcel width, in no case shall the minimum required interior side ground setback be less than three feet or greater than seven feet.
[3] Chapter 17.52 does not apply to accessory dwelling units, including two-story accessory dwelling units above a detached garage, which are addressed in Chapter 17.74 (Accessory Dwelling Units).

B. Additional Standards in the R-1 Zoning District. The following additional standards apply in the R-1 zoning district:

1. Floor Area Ratio. Table 17.16-3 identifies the maximum permitted floor area ratio (FAR) in the R-1 zoning district. See Section 17.48.040(B) for floor area calculations.

Table 17.16-3: Maximum Floor Area Ratio in the R-1 Zoning District Lot Size Maximum FAR
2,650 sq. ft. or less 0.58
2,651 to 3,250 sq. ft. 0.57
3,251 to 3,500 sq. ft. 0.56
3,501 to 3,750 sq. ft. 0.55
3,751 to 4,000 sq. ft. 0.54
4,001 to 4,250 sq. ft. 0.53
4,251 to 4,500 sq. ft. 0.52
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Lot Size Maximum FAR
4,501 to 4,750 sq. ft. 0.51
4,751 to 5,000 sq. ft. 0.50
5,001 to 6,000 sq. ft. 0.49
More than 6,000 sq. ft. 0.48

2. Front Setbacks in Riverview Terrace. Within the areas shown in Figure 17.16-1, the planning commission may approve a reduced front setback to reflect existing front setbacks on neighboring properties within one hundred feet on the same side of the street. The reduced front setback shall in all cases be no less than ten feet. 185
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Figure 17.16-1: Riverview Terrace

3. Wharf Road Reduced Setback. For properties on the east side of Wharf Road from 1820 Wharf Road to 1930 Wharf Road, the planning commission may approve a reduced front setback to reflect existing front setbacks on neighboring properties within one hundred feet on the same side of the street.

4. Garage Setbacks.
a. Attached garages shall be set back a minimum of five feet behind the front or street side building wall of the primary structure. The planning commission may reduce this minimum setback to three feet in sidewalk exempt areas.
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The Capitola Municipal Code is current through Ordinance 1063, passed September 28, 2023. b. Required setbacks for detached garages are identified in Chapter 17.52 (Accessory Structures and Uses).

54. Corner Lots.
a. The minimum rear setback for reverse corner lots shall be the minimum interior side yard of the adjacent property, but no less than four feet. See Figure 17.16-2. b. On a corner lot, the front line of the lot is ordinarily construed as the least dimension of the parcel facing the street. The community development director has the discretion to determine the location of the front yard based on existing conditions and functions.

Figure 17.16-2: Reverse Corner Lot Rear Setback

56. Second-Story Setback Exceptions. Second-story additions must comply with increased setback requirements in Table 17.16-2, except in the following cases:
a. For lots thirty feet wide or less, the minimum interior side setback for a second story is the same as the ground floor.
b. Up to twenty percent of the length of an upper-story wall may be constructed at the same setback as the first-floor wall if the first-floor wall is at least four feet from the side property line. See Figure 17.16-3.

Figure 17.16-3: Second-Story Setback Exception

67. Height Exceptions. A maximum height of up to twenty-seven feet in the R-1 zoning district is allowed in the following circumstances:
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The Capitola Municipal Code is current through Ordinance 1063, passed September 28, 2023. a. Additions to historic structures that are designed to match the roof pitch of the historic structure within the area of new addition.
b. Parcels greater than six thousand square feet in size. c. Parcels with a width sixty feet or more.
d. Parcels with an average slope of twenty-five percent or greater. e. When the plate height of structure does not exceed twenty-two feet.

78. Landscaping. See Section 17.72.050(A) for residential landscape requirements.

89. Mini-Bar/Convenience Areas.
a. A single-family home may contain one mini-bar/convenience area in addition to a kitchen, subject to the following standards:
i. Fixtures shall be limited to a small refrigerator, a microwave oven, and a small sink with a drain size less than one and one-half inches.
ii. No gas line or two-hundred-twenty-volt electric service is permitted within the area. iii. Only one such area is permitted within a property in addition to the kitchen. iv. The mini-bar/convenience area may be located inside or outside of the home. If located inside the home, internal access to the area shall be maintained within the dwelling. A mini-bar/convenience area is permitted in addition to an outdoor kitchen.
b. The requirements in subsection (B)(9)(a) of this section shall not limit the establishment of an accessory dwelling unit in conformance with Chapter 17.74 of this code (Accessory Dwelling Units). 910. Outdoor Kitchens. On a lot occupied by a single-family home, an outdoor kitchen is permitted in addition to an indoor kitchen. Outdoor kitchens shall comply with the following standards:
a. The kitchen may include gas, electric and plumbing.
b. Electric service may not be two hundred twenty volts. c. Drain size may not exceed that allowed for a mini-bar. d. The kitchen may project into the rear setback area as provided in Table 17.48-3.

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The Capitola Municipal Code is current through Ordinance 1063, passed September 28, 2023. 101. Second-Story Decks and Balconies.
a. An Cumulative upper floor deck area in excess of one hundred fifty square feet is included in the floor area ratio calculation.
b. A second-story deck or balcony may not face an interior side parcel line abutting a lot with a singlefamily dwelling. c. A second-story deck or balcony must comply with the following minimum parcel line setback requirements in Table 17.16-4 and as shown in Figure 17.16-3a:
i. Rear: twenty-five percent of lot depth.
ii. Front: twenty feet.
iii. Interior and street side: ten feet.Table 17.16-4: Second Story Deck and Balcony Setbacks Parcel Line Minimum Setback
Front 15 ft.

Interior Side
Deck areas located within 25 ft.
of front property line 15% of parcel width
All other decks 10 ft.

Street Side 10 ft.

Rear 25% of parcel depth
Figure 17.16-3a: R-1 Second-Story Decks and Balconies
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The Capitola Municipal Code is current through Ordinance 1063, passed September 28, 2023. d. To address neighbor privacy impacts, the Planning Commission may require A permanent privacy screening (e.g., opaque glass, solid materials, vegetation) is required for an upper floor deck or balcony. rear deck along the railing parallel to the interior side property line facing a single-family dwelling e. A second-story deck or balcony facing the rear of the parcel may not project further than 10 six feet from the exterior upper-story building wall to which it is attached. For a second story deck or balcony, including staggered or non-linear building walls, the maximum 10-foot projection is measured from the upper floor rear exterior wall.
f. The area of a second-story deck shall not exceed the habitable second-story floor area of the building to which it is attached. For example, if the second story of a home contains 250 square feet of habitable space, the second story deck area may not exceed 250 square feet. The second story deck must also comply with all applicable setback and dimensional standards. gf. Roof decks are prohibited in the R-1 zoning district. hg. The elevation of a freestanding deck or platform not attached to a building may not exceed thirty-five inches above the adjoining grade.

C. Additional Standards for RM Zoning Districts. The following additional standards apply in the RM zoning district:

1. Single-Family Dwellings. Single-family dwellings in RM zoning districts shall comply with the development standards that apply in the R-1 zoning district.

2. Open Space. Common and private open space in the RM zoning district shall be provided as shown in Table

17.16-54 and Figure 17.16-4.

Table 17.16-54: Usable Open Space in RM Zoning District Common Open Space [1]
Minimum area (percent of site
area)
15% [2] [3]
Minimum horizontal dimension 15 ft.

Private Open Space [4]
Minimum percentage of units
with private open space
50%
Minimum area (for individual
unit)
48 sq. ft.

Minimum horizontal dimension 4 ft.

Notes:
[1] Common open space shall be fully landscaped and accessible to all residents. [2] See subsection (C)(4) of this section for requirements that apply to rooftop decks used as common open space. [3] The planning commission may allow reduced common open space to a minimum of ten percent for projects less than one acre in size or for projects that provide additional private open space equal to or greater than the amount of reduced common open space. 190
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The Capitola Municipal Code is current through Ordinance 1063, passed September 28, 2023. [4] Private open space may include screened terraces, decks, balconies, and other similar areas.

Figure 17.16-4: Private Open Space

3. Landscaping. See Section 17.72.050(A) for residential landscape requirements.

4. Objective Standards for Multifamily Dwellings. New multifamily dwellings in the RM zoning district must comply with Chapter 17.82 of this code (Objective Standards for Multifamily and Mixed-Use Residential Development).

5. Upper-Level Decks and Balconies.
a. For parcels that abut the R-1 zoning district, second-story decks and balconies must comply with the standards in subsection (B)(11) of this section (Second-Story Decks and Balconies) and Section

17.82.080(B)(5) of this code (Neighbor Privacy).
b. Roof decks must comply with the following standards:
i. Roof decks are not permitted on parcels that abut the R-1 zoning district. ii. Roof decks require a design permit.
iii. Roof decks may provide up to fifty percent of the minimum required common open space specified in subsection (C)(2) of this section.
iv. Where permitted, a roof deck must be set back at least five feet from the building wall closest to the property line.
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The Capitola Municipal Code is current through Ordinance 1063, passed September 28, 2023. v. Railings to accommodate a roof deck may project forty-two inches above the maximum building height in cases where the roof deck provides open space for residents. vi. Other than as needed to provide for roof access, no permanent structure that has a solid roof and/or is enclosed on two or more sides may be placed on or attached to a roof deck. Fully transparent glass wind barriers are allowed.
vii. Roof decks may not be placed on building features that project above the maximum building height permitted in the zoning district.

D. Standards for the MH Zoning District. Table 17.16-65 identifies development standards that apply in the mobile home park (MH) zoning district.

Table 17.16-65: MH Zoning District Development Standards Additional
Standards
Site Area [1] 5 acres [2]
Residential Density,
Maximum
20 units per acre
Setbacks [3] 17.48.030
Front 15 ft.

Interior
Side
10 ft.

Exterior
Side
10 ft.

Rear 20 ft.

Notes:
[1] Applies to overall mobile home park area, not sites for individual units. [2] For vacant property rezoned to MH, the minimum lot area is five acres. For existing mobile home parks, the minimum parcel size is five acres or the existing parcel size, whichever is less.
[3] Applies only to the perimeter of the mobile home park, not to sites and structures within the interior of the park. 192
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Chapter 17.20

MIXED USE ZONING DISTRICTS
Sections:

17.20.010 Purpose of the mixed use zoning districts.

17.20.020 Land use regulations.

17.20.030 Development standards – Mixed use village zoning district.

17.20.040 Development standards – Mixed use neighborhood zoning district.

17.20.010 Purpose of the mixed use zoning districts.

A. General. The purpose of the mixed use zoning districts is to provide for active and inviting destinations in Capitola with a diversity of residential and commercial land uses. In the mixed use zoning districts, development shall support a lively, pedestrian-friendly public realm with inviting storefronts facing the sidewalk. A diversity of local and independent businesses, recreational amenities, and public spaces balances the needs of residents and visitors. New development shall respect Capitola’s history and reflect its unique coastal village character. The diversity of land uses, pedestrian-friendly development, and general level of activity in the mixed use zoning districts shall support a range of transportation choices, including walking, biking, and transit.

B. Specific.

1. Mixed Use, Village (MU-V) Zoning District. The purpose of the MU-V zoning district is to preserve and enhance Capitola Village as the heart of the community. A diversity of commercial, residential, and recreational uses in the MU-V zoning district serve both visitors and residents. Land uses and development shall enhance the vitality of the Village while maintaining a high quality of life for residents. A fine-grain mix of retail, restaurants, services, and recreational amenities in the MU-V zoning district provides a walkable environment, caters to all ages, and supports year-round activity during the day and night.

2. Mixed Use, Neighborhood (MU-N) Zoning District. The purpose of the MU-N zoning district is to allow for neighborhood-serving mixed use areas that enhance residents’ quality of life. The MU-N zoning district contains an eclectic mix of retail, restaurants, and services for residents and visitors. A range of housing types close to nonresidential uses increases housing choices and supports a walkable community. Development in the MU-N zoning district will be carefully designed to complement its surroundings and minimize impacts on neighboring properties. Land uses will strengthen connections between destinations in Capitola, including the Village, Bay Avenue, and 41st Avenue. (Res. 4223, 2021; Ord. 1043 § 2 (Att. 2), 2020)

17.20.020 Land use regulations.

A. Permitted Land Uses. Table 17.20-1 identifies land uses permitted in the mixed use zoning districts.

Table 17.20-1: Permitted Land Uses in the Mixed Use Zoning Districts Key Zoning District
P Permitted Use
MU-V MU-N Additional Regulations
A Administrative Permit
required
M Minor Use Permit required
C Conditional Use Permit
required
– Use not allowed
Residential Uses [7] Section 17.20.020(B), (C) and (E)
Duplex Homes –/P [1] P
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Key Zoning District
P Permitted Use
MU-V MU-N Additional Regulations
A Administrative Permit
required
M Minor Use Permit required
C Conditional Use Permit
required
– Use not allowed
Elderly and Long-Term Care C [2] [6] C
Group Housing C [2] [6] C
Multifamily Dwellings –/P [1] [6] C
Residential Care Facilities, Small and Large See Section 17.20.020(F) Residential Care Facilities, Large PC [2] [6] C Section 17.96.080 Residential Mixed Use See Sections

17.20.020(D) and (E)
[6]
C
Accessory Dwelling Units A A Chapter 17.74
Single-Family Dwellings –/P [1] P
Public and Quasi-Public Uses
Community Assembly C C
Cultural Institutions C C
Day Care Centers M M
Government Offices P/C [4] M [5]
Home Day Care P P
Medical Offices and Clinics – M [5]
Parks and Recreational Facilities C C
Public Pathways and Coastal Accessways C C
Public Safety Facilities C C
Schools, Public or Private – C
Commercial Uses Section 17.20.020(E)
Alcoholic Beverage Sales C C
Banks and Financial Institutions C P/C [3] [5]
Commercial Entertainment and Recreation C C
Eating and Drinking Places
Bars and Lounges C C
Restaurants and Cafes C C
Take-Out Food and Beverage M M
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Key Zoning District
P Permitted Use
MU-V MU-N Additional Regulations
A Administrative Permit
required
M Minor Use Permit required
C Conditional Use Permit
required
– Use not allowed
Gas and Service Stations – –
Lodging
Bed and Breakfast C C
Hotels and Motels C C
Personal Services P P/C [3] [5]
Professional Offices P/C [4] M [5]
Retail P P/C [3] [5]
Vacation Rental See Section 17.40.030
Transportation, Communication, and Utility Uses
Utilities, Major C C
Utilities, Minor P P
Wireless Communications Facilities See Chapter 17.104
Other Uses
Accessory Uses and Structures See Chapter 17.52 Chapter 17.52 Home Occupations PA PA Section 17.96.040
Permanent Outdoor Display (Accessory Use) – C Section 17.96.100 Temporary Uses and Structures See Section 17.96.180
Urban Agriculture
Home Gardens P P
Community Gardens M M
Urban Farms C C
Notes:
[1] Allowed only in the village residential (-VR) overlay zone. Exclusively residential uses are not allowed outside of the -VR overlay zone. [2] Allowed only on the second or third story of a mixed use development outside of the -VR overlay zone. Allowed on any story in the -VR overlay zone.
[3] Larger than three thousand square feet requires a conditional use permit. [4] Second-floor uses permitted by right. Ground-floor uses require a conditional use permit. Prohibited third floor and above. [5] Conditional use permit required for parcels fronting Capitola Road. 195
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The Capitola Municipal Code is current through Ordinance 1063, passed September 28, 2023. [6] Residential uses are prohibited on the former Capitola Theater site (APNs 035-262-04, 035-262-02, 035-262-11, and 035-261-10). [7] See Section 17.96.210 (Replacement Units for Nonvacant Housing Element Sites) for requirements that apply to new residential uses on sites identified as nonvacant in the General Plan Housing Element inventory of land suitable for residential development.

B. Village Residential Overlay. Pursuant to Section 17.40.040 (Village residential (-VR) overlay zone), only residential uses are permitted in the -VR overlay zone. The village residential (-VR) overlay zone applies to the following areas within the MU-V zoning district as shown on the zoning map: Six Sisters, Venetian Court, Lawn Way, and portions of Wharf Road, Riverview Avenue, Cliff Drive, Cherry Avenue, San Jose Avenue, Park Place, and California Avenue.

C. Ground-Floor Conversions to Residential. Existing ground-floor commercial uses in the MU-V zoning district may not be converted to a residential use unless located in the village residential (-VR) overlay zone.

D. Residential Mixed Use in the MU-V Zoning District.

1. If a proposed residential mixed use project in the MU-V zoning district contains any use that requires a conditional use permit, the entire project, including the residential use, requires a conditional use permit.

2. If a proposed residential use replaces an existing upper-floor commercial use, the residential use is allowed by right.

E. Third-Story Uses in the MU-V Zoning District. Permitted land uses within the third story of an existing or new building in the MU-V zoning district are limited to residential and hotel uses only.

F. Residential Care Facilities. Residential care facilities shall be allowed with the permits required for dwellings of the same type within the applicable zoning district. For example, a residential care facility in a detached singlefamily home requires the same permits and is subject to the same use regulations as a detached single-family home. (Ord. 1057 § 2 (Att. 1), 2022; Res. 4223, 2021; Ord. 1043 § 2 (Att. 2), 2020)

17.20.030 Development standards – Mixed use village zoning district.

A. General. Table 17.20-2 identifies development standards that apply in the mixed use village (MU-V) zoning district.

Table 17.20-2: Development Standards in the Mixed Use Village (MU-V) Zoning District MU-V Additional Standards
Site Requirements
Floor Area Ratio, Maximum 2.0 Section 17.20.030(C)
Section 17.48.040
Chapter 17.88
Parking and Loading See Chapter 17.76
Structure Requirements
Setbacks
Front Min: 0 ft.

Max: 15 ft.

Section 17.20.030(D)
Rear None [1]
Interior Side None
Street Side Min: 0 ft.

Max: 15 ft.

Height, Maximum 27 ft. Section 17.20.030(B) and (C)
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MU-V Additional Standards
Section 17.48.020
Chapter 17.88
Accessory Structures See Chapter 17.52
Note:
[1] Twenty percent of lot depth for residential use on parcel.

B. Height Exceptions. The following exceptions are permitted to the maximum permitted height in the MU-V zoning district as shown in Table 17.20-2:

1. Up to thirty-three feet for gabled or hipped roof with a minimum 5:12 roof pitch and a maximum plate height of twenty-six feet. There shall be no breaks in the roof slope for doors and decks. Exterior doors and decks above the twenty-six-foot plate height are prohibited. See Figure 17.20-1.

2. The thirty-three feet includes the maximum height of projections for nonhabitable decorative features and structures identified in Section 17.48.020(B) (Height Exceptions).

Figure 17.20-1: Increased Height in the MU-V Zoning District C. Increased Floor Area and Height for the Capitola Theater Site. As provided in Chapter 17.88 (Incentives for Community Benefits), the city council may approve exceptions to height and floor area ratio (FAR) limits shown in Table 17.20-2 for the Capitola Theater site (APNs 035-262-04, 035-262-02, 035-262-11, and 035-261-10). These exceptions are intended to facilitate the development of a new hotel in the Capitola Village consistent with the general plan/land use plan.

D. Setbacks in the MU-V Zoning District. The following setback standards apply to all new structures in the MU-V zoning district:

1. Building should be constructed within fifteen feet of the front property line for a minimum of fifty percent of the parcel’s linear street frontage. See Figure 17.20-2. The planning commission may modify or waive this requirement upon finding that:
a. Compliance with the build-to width requirement would render the proposed project infeasible; b. The project incorporates a front-facing courtyard or public seating area; or c. An alternative site design would result in an enhanced pedestrian experience. 197
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Figure 17.20-2: Build-To Line – MU-V Zoning District

2. Front setback areas shall be pedestrian oriented and contain semi-public amenities such as courtyards or outdoor seating areas.

3. Structures shall be set back a minimum of ten feet from the property line on the northerly side of the first two hundred fifty feet of Cliff Drive, west of the intersection of Wharf Road.

E. General Design Standards. The following standards apply to all new buildings and area of new additions within the MU-V zoning districts, excluding the village residential overlay:

1. Building Orientation. Buildings should be oriented towards a public street with the primary entrance to the site or building directly accessible from an adjacent sidewalk. See Figure 17.20-3.

Figure 17.20-3: Building Orientation

2. Blank Walls. The maximum length of an unarticulated/blank building wall fronting a public street shall be ten feet. See Figure 17.20-4. Building articulation may be provided by:
a. Doors, windows, and other building openings;
b. Building projections or recesses, doorway and window trim, and other details that provide architectural articulation and design interest;
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Figure 17.20-4: Blank Wall Limitations

3. Storefront Width. The maximum building/storefront width shall be twenty-five feet. See Figure 17.20-5.

Larger buildings shall be broken down into a pedestrian-scale rhythm with differentiated storefront design every twenty-five feet.

Figure 17.20-5: Storefront Width

4. Ground-Floor Building Transparency.
a. The ground-floor street-facing building walls of nonresidential uses shall provide transparent windows or doors with views into the building for a minimum of sixty-five percent of the building frontage located between two and one-half and seven feet above the sidewalk. See Figure 17.20-6. Windows or doors area shall be transparent to allow views into the building.
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Figure 17.20-6: Storefront Transparency
b. Exceptions to this transparency requirement may be allowed with a design permit if the planning commission finds that:
i. The proposed use has unique operational characteristics which preclude building openings, such as for a cinema or theater; and
ii. Street-facing building walls will exhibit architectural relief and detail, and will be enhanced with landscaping in such a way as to create visual interest at the pedestrian level.

5. Parking Location and Buffers.
a. Surface parking shall be located to the rear or side of buildings. Surface parking may not be located between a building and a street-facing property line. See Figure 17.20-7. b. Surface parking adjacent to a street-facing property line shall be screened along the public right-of-way with a decorative wall, hedge, trellis, and/or landscaping at least three feet in height or maximum allowed pursuant to line of sight requirements in Section 17.96.050. c. Loading areas shall be located to the side and rear of buildings, and shall be sufficiently screened from the public right-of-way, as determined by the community development director. 200
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Figure 17.20-7: Parking Location

6. Driveways and Curb Cuts.
a. The maximum width of a new driveway crossing a public sidewalk may not exceed forty percent of the parcel width or twenty feet, whichever is less. The community development director may approve an exception to this standard in the case of shared or joint use of driveways and parking lots or to allow for one on-site parking space of up to 14 feet in width.
b. New curb cuts, where allowed, shall be located and designed to maximize safety and convenience for pedestrians, bicycles and mass transit vehicles, as determined by the community development director.

Considerations for determination include separation between curb cuts, displaced parking, and sight lines.

7. Paved Site Areas.
a. The materials, colors, textures, and other design features of on-site paved areas, including courtyards, walkways, and patios, shall complement and enhance the overall design character of development on the site.
b. The use of asphalt for on-site paving is prohibited, except when used for parking areas and vehicle circulation.

8. Garbage and Recycling. Facilities for garbage and recycling shall be screened from public right-of-way and either designed into the architecture of the primary building or enclosed in an accessory structure located to the side and/or rear of the primary building.

9. Landscaping. See Section 17.72.050(B).

10. Roof Decks. Roof decks are prohibited in the MU-V zoning district. (Ord. 1057 § 2 (Att. 1), 2022; Res. 4223, 2021; Ord. 1043 § 2 (Att. 2), 2020)

17.20.040 Development standards – Mixed use neighborhood zoning district.

A. General. Table 17.20-3 identifies development standards that apply in the mixed use neighborhood (MU-N) zoning district.
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Table 17.20-3: Development Standards in the Mixed Use Neighborhood Zoning District

Zoning District
MU-N Additional Standards
Site Requirements
Parcel Area, Minimum [1] 3,200 sq. ft.

Parcel Width, Minimum [1] 40 ft.

Parcel Depth, Minimum [1] 80 ft.

Floor Area Ratio, Maximum 1.0 [5] Section 17.48.040
Parking and Loading See Chapter 17.76
Structure Requirements
Setbacks
Front Min: 0 ft. from property line or 10 ft. from curb, whichever is greater [3] [4]
Max: 25 ft.

Section 17.20.040(C)
Rear 10 ft. min. from property line [2] [3] [4]
Interior Side 10% of lot width [3] [4]
Street Side Min: 0 ft. from property line or 10 ft. from curb, whichever is greater [3]
Max: 25 ft.

Height, Maximum 27 ft. [5] Section 17.20.040(D)
Accessory Structures See Chapter 17.52
Notes:
[1] Parcel area, width, and depth requirements apply only to the creation of new parcels. These requirements do not apply to legally created parcels existing as of June 9, 2021. See Title 16 (Subdivisions) for requirements that apply to lot line adjustments to existing parcels that do not comply with the parcel area, width, and depth requirements in this table. [2] Twenty percent of lot depth for residential use on parcel. [3] The planning commission may approve reduced front, side, and rear setback requirements for properties fronting Capitola Avenue north of the trestle up to and including 431 Capitola Avenue.
[4] The planning commission may reduce front, side, and rear setbacks when a parcel is surrounded by commercial properties. [5] Additional building height and FAR allowed for a housing development project that consolidates adjacent Housing Element opportunity sites.

See 17.20.040(.K) (Lot Consolidation Incentive).

B. Building Orientation.

1. Buildings shall be oriented towards a public street with the primary entrance to the site or building directly accessible from an adjacent sidewalk.

2. The planning commission may grant an exception to the requirement in subsection (B)(1) of this section upon finding that unique conditions on the site require an alternative building orientation and that the proposed project would maintain a pedestrian-friendly and active street frontage to the greatest extent possible. 202
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C. Setbacks in the MU-N Zoning District. Front setback areas in the MU-N zoning district not used for vehicle parking or circulation shall be pedestrian oriented and shall be either landscaped or contain semi-public amenities such as courtyards or outdoor seating areas.

D. Residential Transitions – Daylight Plane. When a property abuts a residential zoning district, no structure shall extend above or beyond a daylight plane having a height of twenty-five feet at the setback from the residential property line and extending into the parcel at an angle of forty-five degrees. See Figure 17.20-8.

Figure 17.20-8: Residential Transitions – Daylight Plane E. Parking Location and Buffers. Surface parking shall be located to the rear or side of buildings where possible.

When parking is located between a building and a street-facing property line, the parking shall be either:

1. Screened along the street with a decorative wall, hedge, trellis, and/or landscaping at least three feet in height; or

2. Designed to minimize visual impacts and support a pedestrian-friendly environment to the greatest extent possible as determined by the planning commission.

F. Driveways and Curb Cuts.

1. The maximum width of new driveways crossing a public sidewalk may not exceed forty percent of the parcel width or twenty feet, whichever is less. The community development director may approve exceptions to these standards in the case of shared or joint use of driveways and parking lots or to allow for one on-site parking space of up to 14 feet in width.

2. New curb cuts, where allowed, shall be located and designed to maximize safety and convenience for pedestrians, bicycles and mass transit vehicles, as determined by the community development director.

Considerations for determination include adequate separation between curb cuts, displaced parking, and sight lines, and areas specifically prohibited by Section 17.76.040(C)(3)(i).

G. Landscaping. See Section 17.72.050(B).

H. Capitola Road. The following standards apply to new primary buildings constructed in the MU-N zoning district fronting the north side of Capitola Road between 41st Avenue and 45th Avenue as shown in Figure 17.20-9. These standards do not apply to alterations or expansions to existing buildings.

1. Buildings shall feature a gabled or hipped roof with a minimum 5:12 roof pitch.

2. Buildings shall be set back from the curb or street edge in a manner that allows for a minimum ten-foot sidewalk along the property frontage.
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Figure 17.20-9: Capitola Road MU-N Subject to Special Standards I. Objective Standards for Multifamily Dwellings and Mixed-Use Residential Development. New multifamily dwellings and mixed-use residential development in the MU-N zoning district must comply with Chapter 17.82 of this code (Objective Standards for Multifamily and Mixed-Use Residential Development).

J. Roof Decks. Roof decks in the MU-N zoning district require a design permit. Roof decks must comply with standards in Section 17.16.030(C)(5)(b). (Ord. 1057 § 2 (Att. 1), 2022; Ord. 1053 § 3, 2022; Res. 4223, 2021; Ord. 1043 § 2 (Att. 2), 2020)
K. Lot Consolidation Incentive. Housing Element Table 4-3 identifies adjacent opportunity sites which are suitable for lot consolidation. Projects in the MU-N zoning district that consolidate two or more opportunity sites identified in Housing Element Table 4-3 into a single parcel as part of a housing development project are permitted maximum building height and floor area ratio (FAR) as identified in Table 17.20-4.

Table 17.20-4: MU-N Lot Consolidation Bonus
Project Type
Baseline MU-N
Standard Lot Consolidation Allowance
Height FAR Height FAR
Residential Only 27 ft. 1.0 35 ft 1.5
Mixed-Use Residential with
Ground-Floor Commercial 27 ft. 1.0 40 ft. 1.5
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ZONING DISTRICTS

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Chapter 17.24

COMMERCIAL AND INDUSTRIAL ZONING DISTRICTS
Sections:

17.24.010 Purpose of the commercial and industrial zoning districts.

17.24.020 Land use regulations.

17.24.030 Development standards.

17.24.040 Residential mixed use development in commercial zoning districts.

17.24.010 Purpose of the commercial and industrial zoning districts.

A. Community Commercial (C-C) Zoning District. The purpose of the C-C zoning district is to provide areas for a variety of commercial uses serving Capitola residents and visitors. The C-C zoning district allows for retail, restaurants, and services that meet the daily needs of the community. The scale, intensity, and design of development in the C-C zoning district shall be compatible with adjacent neighborhoods and contribute to Capitola’s unique coastal village character. Interspersed residential and office uses in the C-C zoning district shall support a diverse local economy and range of housing choices.

B. Regional Commercial (C-R) Zoning District. The purpose of the C-R zoning district is to provide areas for commercial uses that serve regional shoppers as well as Capitola residents, workers, and visitors. The C-R zoning district will maintain a critical mass of retail and service uses that maintain 41st Avenue as a successful retail destination. Office, medical, and residential uses will be restricted to protect the long-term economic vitality of the corridor. Incremental redevelopment of underutilized properties in the C-R zoning district will enhance the corridor as a pedestrian-friendly shopping destination that enhances Capitola’s unique identity and quality of life.

C. Industrial (I) Zoning District. The purpose of the I zoning district is to provide an area for heavy commercial and light industrial uses in Capitola. The I zoning district allows for nonresidential uses which are desired in the community but could be incompatible with land uses in other zoning districts. The I zoning district shall continue to accommodate businesses that contribute to a diverse economy, provide local jobs, and serve the needs of residents and other businesses in Capitola. (Ord. 1043 § 2 (Att. 2), 2020)

17.24.020 Land use regulations.

A. Permitted Land Uses. Table 17.24-1 identifies land uses permitted in the commercial and industrial zoning districts. The city council may approve a use not listed in Table 17.24-1 after receiving a recommendation from the planning commission and finding the use to be consistent with the general plan and the purpose of the zoning district.

Table 17.24-1: Permitted Land Uses in Commercial and Industrial Zoning Districts

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Key Zoning District
P Permitted Use
C-C C-R I Additional Requirements
A Administrative Permit
required
M Minor Use Permit required
C Conditional Use Permit
required
– Use not allowed
Residential Uses [12]
Single-Family Dwellings – – –
Multifamily Dwellings C [9] C [9] –
Residential Mixed Use C C [7] – Section 17.24.040
Large Residential Care Facilities C [9] C [9] –
Accessory Dwelling Unit A A Chapter 17.74
Public and Quasi-Public Uses
Colleges and Trade Schools C C C
Community Assembly C C –
Cultural Institutions C C –
Day Care Centers MC MC –
Emergency Shelters P– – P Section 17.96.030
Government Offices See 17.24.020(C) C
Home Day Care P P P
Medical Offices and Clinics See 17.24.020(C) –
Public Paths and Coastal Accessways C C C
Public Safety Facilities C C C
Commercial Uses
Alcoholic Beverage Sales C C C
Banks P [2] P [2] –
Car Wash C C
Financial Institutions See 17.24.020(C)P [2]
P [2]
– Section 17.24.020(C)
Business Services P [2] P [2] P
Commercial Entertainment and Recreation M M –
Drive-Through Facilities – C [4] –
Eating and Drinking Establishments
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Key Zoning District
P Permitted Use
C-C C-R I Additional Requirements
A Administrative Permit
required
M Minor Use Permit required
C Conditional Use Permit
required
– Use not allowed
Bars and Lounges C C C
Mobile Food Vendors – A [6]/C A [6]/C
Restaurants and Cafes M [2] M [2] C
Take-Out Food and Beverage M [2] M [2] –
Food Preparation M [2] – P
Gas and Service Stations C C –
Liquor Stores C C –
Lodging
Bed and Breakfast C – –
Hotel C C –
Maintenance and Repair Services M C P
Personal Services P [1] P [1] –
Professional Offices See 17.24.020(C) P
Salvage and Wrecking – – P
Self-Storage C – C Section 17.96.140
Retail P [11] P [11] –
Retail Cannabis Establishment C [10] C [10] Section 17.24.020(D) Vehicle Repair C C P
Vehicle Sales and Rental C [5] C [5] –
Vehicle Sales Display Room [8] P P –
Wholesaling – M [3] P
Heavy Commercial and Industrial Uses
Construction and Material Yards – – P
Custom Manufacturing M M P
Light Manufacturing – – P
Warehousing and Distribution – – P
Transportation, Communication, and Utility Uses
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Key Zoning District
P Permitted Use
C-C C-R I Additional Requirements
A Administrative Permit
required
M Minor Use Permit required
C Conditional Use Permit
required
– Use not allowed
Utilities, Major – C C
Utilities, Minor P P P
Recycling Collection Facilities C C C Section 17.96.130 Wireless Communications Facilities See Chapter 17.104
Other Uses
Accessory Uses See Chapter 17.52
Home Occupations PA PA – Section 17.96.040
Permanent Outdoor Display C C C Section 17.96.100
Temporary Uses See Section 17.96.180
Urban Agriculture
Home Garden P P –
Community Garden M M –
Urban Farm C C –
Notes:
[1] Combination of two or more tenant suites within a multi-tenant building or greater than five thousand square feet requires minor use permit. [2] Combination of two or more tenant suites within a multi-tenant building or greater than five thousand square feet requires conditional use permit.
[3] Without stock. Storage of merchandise limited to samples only. [4] Prohibited within one hundred feet of a residential zoning district or residential use including residential properties outside the city limits.

Distance is measured from any site feature designed and/or used to provide drive-through service (e.g., vehicle aisle, menu board, lighting) to the property of the residential district or use.
[5] Majority of vehicles for sale must be new.
[6] Mobile food vendors in one location four times or less per year are regulated as a temporary use in accordance with Section 17.96.180 and are allowed with an administrative permit in accordance with Chapter 9.36 of this code. Mobile food vendors in one location more than two times per year require a conditional use permit.
[7] Residential uses are prohibited on the first story. [8] Maximum five thousand square feet.
[9] Allowed only as a part of a mixed use project integrated with commercial structures located on the same development site. [10] Requires cannabis retail license (Chapter 9.61) and compliance with subsection D of this section. [11] A retail use twenty thousand square feet or more requires a conditional use permit. 208
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The Capitola Municipal Code is current through Ordinance 1063, passed September 28, 2023. [12] See Section 17.96.210 (Demolition and Replacement of Dwelling Units) for requirements that apply to new residential uses on sites identified as nonvacant in the General Plan Housing Element inventory of land suitable for residential development.

B. Additional Permits. In addition to permits identified in Table 17.24-1, development projects in the commercial and industrial zoning districts may also require a design permit pursuant to Chapter 17.120 (Design Permits).

Modifications to a historic resource may require a historic alteration permit pursuant to Chapter 17.84 (Historic Preservation). Development in the coastal zone may require a coastal development permit pursuant to Chapter 17.44 (Coastal Overlay Zone), independent of and in addition to any other required permit or approval.

C. Office Uses in the C-C and C-R Zoning Districts.

1. New Office Uses. In the C-C and C-R zoning districts, permits required for new office uses and conversions of nonoffice space to office use are shown in Table 17.24-2. Offices include professional, medical, financial institutions and governmental offices.

Table 17.24-2: Permitted New Office Uses in the C-C and C-R Zoning Districts Key
C-C Zoning District C-R Zoning District
P Permitted Use
A Administrative Permit required
M Minor Use Permit required
C Conditional Use Permit required
– Use not allowed
Location and Size of Office Use
Ground floor, less than 5,000 sq. ft. P -/–C [1]
Ground floor, 5,000 sq. ft. or more P/C [2] -/C [1]
Upper floor above a ground floor P P
Located within a multi-tenant site in which the office space is not located within a storefront and is set back from the front facade.

P –
Notes:
[1] Allowed with a conditional use permit only in a multi-tenant building if one or more of the following conditions are met: (1) entry doors do not face an adjacent street frontage; or 2) the building does not front 41st Avenue or Clares Street. [2] Allowed as a Permitted by rightuse where: 1) entry doors do not face an adjacent street frontage; or 2) the building does not front 41st Avenue. Otherwise, a Conditional Use Permit is required.

2. Existing Office Uses. Within office buildings utilized exclusively for office uses as of June 9, 2021, office uses may continue to occupy ground-floor tenant spaces. Within such office buildings, a new tenant is not subject to the permit requirements in Table 17.24-2 until such time that the building is redeveloped or all office space in the ground-floor level is converted to a nonoffice use. a. In the C-C and C-R zoning districts, office uses may continue to occupy existing office space. For purposes of this section, “existing office space” means any tenant space legally occupied by an office use; and vacant tenant space where the most recent legal occupant was an office use. The City shall use business license documentation to determine the legal occupancy of tenant space. b. Offices are a permitted use in existing office space. A new office tenant may occupy existing office spaces without the permit requirements in Table 17.24.
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D. Retail Cannabis in the C-R Zoning District. A retail cannabis establishment in the C-R zoning district must be in compliance with the following standards:

1. Permit Requirements.
a. Cannabis Retail License. Prior to conditional use permit application, an applicant shall obtain a potential retail cannabis license from the city, as outlined in Chapter 5.36. b. Conditional Use Permit. A retail cannabis establishment must obtain a conditional use permit from the planning commission. The retail cannabis establishment shall be in compliance with the following standards:
i. Distance from Schools and Churches. Retail cannabis establishments are not permitted within a path of travel of one thousand feet from any schools and churches. The path of travel shall be measured following the shortest path of travel along a public right-of-way from the property line of the proposed retail cannabis establishment parcel to the church or school. ii. Distance Between Retail Cannabis Establishments. A retail cannabis establishment shall not be located within a path of travel of five hundred feet of another retail cannabis establishment. Path of travel is measured from the retail establishment suite on a multi-tenant property or the structure for a single-tenant property.
iii. Independent Access. A retail cannabis establishment shall have an independent exterior entrance that is not shared with any other business or residence. iv. 41st Avenue Frontage. In the C-C zoning district, a retail cannabis establishment must be on a property fronting 41st Avenue.
(Ord. 1057 § 2 (Att. 1), 2022; Ord. 1043 § 2 (Att. 2), 2020)

17.24.030 Development standards.

A. General. Table 17.24-3 identifies development standards that apply in the commercial and industrial zoning districts.

Table 17.24-3: Development Standards in Commercial and Industrial Zoning Districts C-C C-R I Additional Standards
Site Requirements
Parcel Area, Minimum 5,000 sq. ft.

Parcel Width, Minimum 50 ft.

Parcel Depth, Minimum 100 ft.

Floor Area Ratio, Maximum 1.0 [1] 1.5 0.5 Section 17.24.030(D) Chapter 17.88
Structure Requirements
Setbacks, Minimum
Front See Section 17.24.030(C) 0 ft.

Rear 0 ft. unless adjacent to a residential zoning district (see Section 17.24.030(E))

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C-C C-R I Additional Standards
Interior Side 0 ft. unless adjacent to a residential zoning district (see Section 17.24.030(E))

Street Side See Section 17.24.030(C) 0 ft.

Height, Maximum 40 ft. [1] 40 ft. 30 ft. Section 17.24.030(D) and I(E) Chapter 17.88
Landscaped Open Space, Minimum 5% Table 17.72-1
Parking and Loading See Chapter 17.76
Notes:
[1] Additional building height and FAR allowed for a housing development project that consolidates adjacent Housing Element opportunity sites.

See 17.24.040(.J) (Lot Consolidation Incentive).

B. C-C Zoning District Fronting Capitola Road. The following requirements apply to C-C parcels fronting the south side of Capitola Road between 41st Avenue and 45th Avenue as shown in Figure 17.24-1:

1. Maximum height: thirty-five feet.

2. Minimum rear setback: forty feet.

3. Enhanced Application Review. A proposed project with a height greater than two stories shall comply with the following enhanced application review procedures:
a. Conceptual Review.
i. Prior to consideration of a formal application, the planning commission and city council shall provide conceptual review of a proposed project in accordance with Chapter 17.114 (Conceptual Review).
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Figure 17.24-1: Parcels Fronting Capitola Road Between 41st Avenue and 45th Avenue ii. Before planning commission and city council review, the applicant shall host at least one community workshop to solicit community input on preliminary project plans. iii. When reviewed by the planning commission and city council, the applicant shall demonstrate how the project design addresses public input received at the community workshop, as appropriate. b. City Council Action. Following conceptual review, the planning commission shall serve as the recommending body and the city council shall serve as the review authority and take final action on the application.
c. Findings. To approve the application, the city council shall make all of the following findings in addition to findings for the required permits:
i. The project satisfies applicable design review criteria in Section 17.120.070 (Design review criteria). ii. On-site parking, points of ingress/egress, and internal vehicle accessways are located and designed to minimize parking and traffic impacts on neighboring residential areas to the greatest extent possible. iii. The project incorporates rear yard setbacks and upper-story stepbacks as needed to maintain adequate light and air for abutting residential uses.
iv. The height and intensity of development is compatible with the scale and character of neighboring residential areas.
v. The project incorporates design features to support a safe and welcoming pedestrian environment.

Potential features may include, but are not limited to, enhanced sidewalks along the property frontage, internal pedestrian walkways, outdoor public gathering places, unique landscaping treatments, and active ground-floor uses fronting the street.
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C. Front and Street Side Setbacks in the C-R and C-C Zoning Districts. In the C-R and C-C zoning districts, buildings shall be set back from the front and street side property line so that:

1. The building is at least fifteen feet from the curb or street edge; and

2. Building placement allows for a minimum ten-foot sidewalk along the property frontage. See Figure 17.24-2.

Figure 17.24-2: Front and Street Side Setbacks in the C-R and C-C Zoning Districts D. Increased Floor Area and Height in C-C and C-R Zoning Districts. As provided in Chapter 17.88 (Incentives for Community Benefits), the city council may approve exceptions to height and floor area ratio (FAR) limits shown in Table 17.24-3 for proposed projects in the C-C and C-R zoning districts. These exceptions are intended to facilitate the redevelopment of underutilized properties along 41st Avenue consistent with the vision for the corridor described in the general plan.

E. Residential Transition Standards. Where a commercial or industrial zoning district abuts a residential zoning district, the following standards apply:

1. Setbacks. The minimum setback from the residential property line shall be fifteen feet for interior side yards and twenty feet for rear yards. For lots less than one hundred feet wide, the planning commission may allow a reduced side yard setback upon finding that potential impacts to adjacent residential properties have been adequately minimized through enhanced building and landscape design.

2. Daylight Plane. No structure shall extend above or beyond a daylight plane having a height of twenty-five feet at the setback from the residential property line and extending into the parcel at an angle of forty-five degrees. See Figure 17.24-3.
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Figure 17.24-3: Residential Transitions – Daylight Plane

3. Landscaping. A landscaped planting area, extending a minimum of ten feet from the property line, shall be provided along all residential property lines. A tree screen shall be planted in this area with trees planted at a minimum interval of fifteen feet.

4. Loading. Loading and unloading shall be designed to have the least amount of impact on neighboring residential uses. When feasible, loading and unloading shall be provided from the commercial frontage rather than from areas adjacent to residential uses.

F. Capitola Mall Redevelopment. While the Capitola Mall site has been zoned regional commercial (C-R) as part of the zoning code update, it is expected that major redevelopment of the mall property may require a rezone, planned development, specific plan, development agreement, or similar process to tailor appropriate development standards for the redevelopment project. Where an application submitted pursuant to this section includes fewer than all parcels within the mall property, the applicant shall demonstrate that the development type and pattern and site design will be compatible and not unreasonably interfere with future redevelopment of the remaining parcels. For the purposes of this section, the mall property is defined as the area bound by 41st Avenue, Clares Street, and Capitola Road.

G. Landscaping. See Section 17.72.050(B) for nonresidential landscape requirements.

H. Objective Standards for Multifamily Dwellings and Mixed-Use Residential Development. New multifamily dwellings and mixed-use residential development in the C-C and C-R zoning districts must comply with Chapter

17.82 of this code (Objective Standards for Multifamily and Mixed-Use Residential Development).

I. Roof Decks. Roof decks that provide common open space for residents in the commercial zoning district require a design permit. Roof decks must comply with standards in Section 17.16.030(C)(5)(b). (Ord. 1057 § 2 (Att. 1), 2022; Ord. 1053 § 3, 2022; Ord. 1043 § 2 (Att. 2), 2020)
J. Lot Consolidation Incentive. Housing Element Table 4-3 identifies adjacent opportunity sites which are suitable for lot consolidation. Projects in the C-C zoning district that consolidate two or more opportunity sites identified in Housing Element Table 4-3 into a single parcel as part of a housing development project are permitted maximum building height and floor area ratio (FAR) as identified in Table 17.24-4.

Table 17.24-4: C-C Lot Consolidation Bonus
Baseline C-C Standard Lot Consolidation Allowance
Height FAR Height FAR
40 ft. 1.0 50 ft 1.5
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K. Micro-Units. A building with micro-units in the C-C or C-R zoning district is permitted a maximum height of 50 ft. and a maximum FAR of 1.5 only when:

1. The micro-units are within one-quarter mile walking distance of a major transit stop or a high-quality transit corridor, as those terms are defined in Section 21064.3 of the Public Resources Code; and

2. The micro-units constitute 50 percent or more of the total number of units in the building.

17.24.040 Residential mixed use development in commercial zoning districts.

A. Purpose and Applicability. This section establishes design standards for mixed use development with housing above ground-floor commercial uses in the community commercial (C-C) and regional commercial (C-R) zoning districts. These standards are intended to promote successful mixed use development that is pedestrian-friendly and contributes to the vitality of commercial districts in Capitola.

B. Standards.

1. Ground-Floor Uses. Ground-floor spaces fronting the primary street shall be occupied by retail, restaurant, and personal service uses that generate pedestrian activity.

2. Building Placement. Buildings shall be placed near the edge of the sidewalk. Increased setbacks are permitted if they enhance pedestrian experience and add visual interest.

3. Building Orientation. Buildings shall be oriented towards a public street with the primary entrance to the site or building directly accessible from an adjacent sidewalk. The planning commission may allow buildings and their primary entrances to be oriented toward a public space. The primary entrance to a building shall not be oriented towards surface parking.

4. Blank Walls. The length of an unarticulated/blank building wall shall not exceed ten feet. Architectural articulation should have a similar pattern as other adjacent buildings to provide cohesive design in the neighborhood. Building articulation may be provided by:
a. Doors, windows, and other building openings;
b. Building projections or recesses, doorway and window trim, and other details that provide architectural articulation and design interest;
c. Varying wall planes, heights or contrasting materials and colors; and d. Awnings, canopies, or arcades to reinforce the pedestrian scale and provide shade and cover from the elements.

5. Storefront Width. The width of a single building/storefront shall not exceed fifty feet. Larger buildings shall be broken down into a pedestrian-scale rhythm with individual storefront widths of twenty-five to fifty feet.

6. Ground-Floor Building Transparency. The ground-floor street-facing building walls of nonresidential uses shall provide transparent windows or doors with views into the building for a minimum of sixty-five percent of the building frontage located between two and one-half and seven feet above the sidewalk. See Figure 17.24-4.

Windows or doors area shall be transparent to allow views into the building. Exceptions to this transparency requirement may be allowed if the planning commission finds that:
a. The proposed use has unique operational characteristics which preclude building openings, such as for a cinema or theater; or
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Figure 17.24-4: Storefront Transparency

7. Retail Depth. Ground-floor commercial space shall have a depth of at least forty-five feet or two-thirds of the parcel depth, whichever is less. Where possible, sixty-foot depths are encouraged to accommodate a wider range of tenants, especially food tenants. The planning commission may grant an exception to the minimum retail depth requirement if the minimum retail depth is infeasible due to unusual physical conditions on the parcel.

8. Ground-Floor Height. Ground-floor commercial space shall have a minimum floor-to-floor height of fifteen feet. Where possible, eighteen-foot floor-to-floor heights are encouraged.

9. Parking Location. No more than ten percent of off-street retail parking may be provided along the side of retail as “teaser” parking. The remainder of the parking shall be behind the building or in underground/structured parking. See Figure 17.24-5.

10. Driveways and Curb Cuts. Pedestrian and vehicle conflicts shall be minimized by limiting the number of curb cuts to two per block and the width of curb cuts to twenty-four feet where feasible. To the extent possible, curb cuts shall be designed so pedestrian curb ramps are limited and pathways remain level as they cross the vehicle route.

Figure 17.24-5: Residential Mixed Use – Teaser Parking
(Ord. 1043 § 2 (Att. 2), 2020)
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Chapter 17.32

SPECIAL PURPOSE ZONING DISTRICTS
Sections:

17.32.010 Purpose of the special purpose zoning districts.

17.32.020 Land use regulations.

17.32.030 Development standards.

17.32.010 Purpose of the special purpose zoning districts.

A. Community Facility (CF). The CF zoning district provides areas for public and community facilities serving Capitola residents and visitors. Land uses permitted in the CF zoning district include public uses such as governmental offices, police and fire stations, community centers, schools, libraries, and other similar uses. The CF zoning district implements the public/quasi-public land use designation in the general plan.

B. Parks and Open Space (P/OS). The P/OS zoning district provides parks, recreational facilities, and open space for the use and enjoyment of the community and visitors. The P/OS zoning district also protects and preserves environmentally sensitive natural areas and habitat in Capitola. The P/OS zoning district implements the parks and open space land use designation in the general plan. (Ord. 1043 § 2 (Att. 2), 2020)

17.32.020 Land use regulations.

A. Permitted Uses. Table 17.32-1 identifies land uses permitted in the CF and P/OS zoning districts.

B. Commercial Uses in the P/OS Zoning District. Commercial uses that are accessory to a permitted use in the P/OS zoning district are permitted with a conditional use permit as long as the park, recreation, and open space purposes are met by the overall development.

C. Visitor Accommodations in New Brighton State Beach. Visitor accommodations and campground uses are permitted in the New Brighton State Beach.

D. P/OS Standards. The following standards apply to uses in the P/OS zoning district:

1. Any structure, land use, or removal of vegetation or natural materials that in the opinion of the community development director is inconsistent with the purpose of the P/OS zoning district is prohibited.

2. Development shall be subordinate to its recreational, scenic, or natural resource purpose consistent with the local coastal program (LCP). Natural resource protection shall include protection of arroyos; creeks, riparian corridors, and other environmentally sensitive habitat; and woodlands.

3. No new structures are permitted on the open, sandy beach area of Capitola except for appropriate public facilities (e.g., the flume and jetties), required shoreline protective structures (approved beach erosion control structures), and structures required for public health and safety (e.g., lifeguard stands) if otherwise consistent with the local coastal program.
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