Agenda packet — Capitola City Council, August 28, 2025 (part 2 of 3)

Project Scope of Work Description and Details
Santa Cruz County Regional Transportation Commission, Park Avenue Bluff Fencing Project Project Description: Install 1,300 linear feet of split rail fencing, from near Grove Lane in the west to approximately opposite from just eastward of the mid-point of the 850 and 870 Park Avenue condominium properties in the east, and “No Trespassing” and “Unstable Bluff” signs along the Santa Cruz Branch Rail Line right-of-way corridor. Remove unpermitted wooden bench that are located on railroad property.

Property Description: The property identified as APN 03620102 is located on the southern (coastal) side of Park Avenue in Capitola, California. This property is approximately 10.4 acres in size and is known as railroad right-of-way. It has been used for railroad purposes for many decades, and the tracks for the Santa Cruz Branch Rail Line are situated on this property. On its southern side, the property includes the approximately 80-foot tall natural bluffs that abut the Pacific Ocean and are referred to herein as the Park Avenue Bluffs. As railroad property, the property is neither a public space nor open to the public. No public crossings exist across the railroad tracks on the property, except for the driveway undercrossing for the entrance to New Brighton State Beach. However, trespassers enter the railroad property and cross the railroad tracks to walk along the walking trails on the coastal side of the railroad tracks, including a trail along the top of the aforementioned bluffs.

Project Purpose: While the railroad property is neither a public space nor open to the public, trespassers have utilized the subject property for walking despite the fact that numerous No Trespassing and Unstable Bluff signs have been installed at several prominent locations. Several informal walking paths exist on the property, including one along the top of the bluffs. A wooden bench has also been constructed on the railroad property without the permission of the railroad. Natural processes and wave action have caused erosion of the bluffs, and in 2023 large sections of the top of bluff collapsed, resulting in the top of bluff encroaching into the walking trail. Photographs of some of these locations are attached as reference. The RTC engaged professional consultants to assess the natural bluff retreat processes as this location as part of the development of the Coastal Rail Trail, and the study is included for reference. Due to safety concerns for trespassers posed by the bluffs, the Park Avenue Bluff Fencing Project will install a fence to exclude access by trespassers to this area.

Project Details: The Park Avenue Bluff Fencing Project proposes to install either wooden split rail or wood style prefabricated concrete system fencing on the railroad property from the southern edge of the property near Grove Lane, along the coastal side of the walking path near the center of the property eastward to a point opposite the 850 Park Avenue property, thence 67 Item 6 A.
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Project Scope of Work Description and Details
Santa Cruz County Regional Transportation Commission, Park Avenue Bluff Fencing Project Project Description (continued):
along the existing railroad tracks to its terminus at a point opposite the 870 Park Avenue property. “No Trespassing” and “Unstable Bluff” signs will be installed at four locations on new sign posts installed on the coastal side of the new fence, with a new sign post installed near each end of the fence, and two sign posts installed along the fence alignment.

The proposed fencing will include fence posts that are approximately 4-feet high, with fence rails approximately 8 to 10 feet in length. Fence rails will be approximately 4 to 6 inches high, depending on the fencing system to be installed, with a vertical clear space of approximately 9 to 10 inches between the edges of the rails. The top edge of the top fence rail will be placed approximately 3 to 7 inches below the top of the fence post top. Fence detail sheets and example photographs of what the fencing might look like are attached for reference (note, these example images were sourced from potential material suppliers and do not represent the proposed look of the site at the Park Avenue Bluffs and are just for reference. The RTC does not propose to install wire or cables, as shown in some of the photos.) Other than the fence posts, fence rails, and signage, no other elements will be placed on the property as part of this project.

Since the proposed fence will include fence rails that are no taller than approximately 4 feet high above the ground surface, and since the ground surface at the fence alignment is approximately 10 to 16 feet lower than the surface of Park Avenue for most of the project area, coastal views will not be obstructed.

Installation of the proposed fence is intended to not affect existing trees along the railroad property, with fence posts to be installed away from any individual tree and such that fence rails go around any tree trunks. Minor clearing and grubbing as well as minor grading may be required in certain areas to remove vegetation such as shrubs, grasses, and poison oak from areas where the fence is to be installed as well as to smooth the ground surface where the fence is to be installed. The fence alignment is largely dictated by the natural topography of the area, with the fence proposed to be installed at the top of the small rise that is located between the rail line and the Pacific Ocean. Minor adjustments in the fence alignment as shown on the enclosed Site Plan may be required to fit the fence alignment to the natural topography.

As part of the project, the unpermitted wooden bench situated along the top of bluff on the coastal side of the proposed fence alignment will also be removed. 68 Item 6 A.
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Project Scope of Work Description and Details
Santa Cruz County Regional Transportation Commission, Park Avenue Bluff Fencing Project Project Description (Photos):

Photo of bluff failure, winter 2023
69 Item 6 A.
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Project Scope of Work Description and Details
Santa Cruz County Regional Transportation Commission, Park Avenue Bluff Fencing Project Project Description (Photos):

Photo of bluff failure, winter 2023
70 Item 6 A.
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Project Scope of Work Description and Details
Santa Cruz County Regional Transportation Commission, Park Avenue Bluff Fencing Project Project Description (Photos):

Photo of bluff failure, winter 2023
71 Item 6 A.
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Item 8 E.

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Project Scope of Work Description and Details
Santa Cruz County Regional Transportation Commission, Park Avenue Bluff Fencing Project Project Description (Example Photos of What Fencing Could Look Like):

Concrete Wood-Style Fencing
Cedar Split Rail Style Fencing (cables not proposed as part of this project) 72 Item 6 A.
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Treated Lap Rail Style Fencing (wire not proposed as part of this project) 73 Item 6 A.
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Item 8 E.

Split Rail Fence
Scale: NTS
Notes:
8'
6'- 7'
Ground
Level
2' - 3'
10"
6"
Footing
Alternative One: Ceder
Wooden Split Rail Fence

1. A hole three times the
width of the post with a
depth of 2 to 3 feet must be
created to place the fence
post.

2. Must be backfilled with ¾
inch crushed aggregate to
maintain the fence post in
place.

3.Fence posts that are 4 feet
high above the ground.

4.Rail must be approximaily
8 feet in length. The first rail
must be 6 inches below the
top of the fence post.

Rail
Post
74 Item 6 A.
201
Item 8 E.

Notes:
10'
Split Rail Fence
Scale: NTS
6'- 7'
Ground
Level
2' - 3' 9"
2 3/4"
Footing
Alternative Two: Wooden
Style Prefabricated
Concrete Split Rail Fence

1. A hole three times the
width of the post with a
depth of 2 to 3 feet must be
created to place the fence
post.

2. Must be backfilled with
concrete to maintain the
fence post in place.

3.Fence posts that are 4 feet
high above the ground.

4.Rail must be approximaily
10 feet in length. The first rail
must be 2 3/4 inches below
the top of the fence post.

Rail
Post
75 Item 6 A.
202
Item 8 E.

Notes:
11'
Split Rail Fence
Scale: NTS
6'- 7'
Ground
Level
2' - 3' 11.5"
7"
Footing
Alternative Three: Treated
Wood Lap Split Rail Fence

1. A hole three times the
width of the post with a
depth of 2 to 3 feet must be
created to place the fence
post.

2. Must be backfilled with ¾
inch crushed aggregate to
maintain the fence post in
place.

3.Fence posts that are 4 feet
high above the ground.

4.Rail must be approximaily
11 feet in length. The first rail
must be 7 inches below the
top of the fence post.

Rail
Post
76 Item 6 A.
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Item 8 E.

Capitola City Council
Agenda Report
Meeting: August 28, 2025
From: Community Services and Recreation Department
Subject: Afterschool Scholarship & Equity Swim Donation Recommended Action: Accept a donation of $20,000 for Afterschool Rec Club scholarships and $16,000 for the Equity Swim Program from the Soquel Union Elementary School District and authorize the City Manager, or his designee, to sign the Memorandum of Understanding.

Background: In Fall 2020, the City expanded its pilot Afterschool Program in response to the COVID-19 Pandemic and the need for distance learning support. As a result, the City developed the Out-of-School Time (OST) Program. The Soquel Union Elementary School District (SUESD) supported the Program by contributing $16,000 in funding.

As schools returned to in-person learning, the City and SUESD recognized a lack of after-school programming. As a result, the OST Program was modified to provide an after-school program in each of SEUSD’s elementary schools. SUESD has continued its partnership with the City by offering financial support for the 2024–25 school year to ensure continued access for families.

Discussion: The Afterschool Rec Club provides enrichment and homework support to elementary and middle school students at the New Brighton Middle School campus. As an affordable public program, the SUESD Board of Trustees is proud to support this collaboration with the City to jointly support Capitola residents and provide equitable access to families.

In addition, the City’s Equity Swim Program was designed to provide equity and community for students that live in a community dominated by beach culture. The Equity Swim Program provides high quality swimming lessons to SUESD students who would otherwise not have access to such resources. The Program teaches students techniques and keeps them engaged with aquatics activities, allowing students to participate in beach community events. SUESD’s contribution of $16,000 will offset approximately half of the City’s costs for this program in the 2025–26 school year.

SUESD will contribute $20,000 to support a scholarship fund for the school year 25/26 for students meeting income criteria as evaluated by the Capitola Public Safety and Community Service Foundation and an additional $16,000 (approximately half the City expense) to the Equity Swim Program.

Fiscal Impact: This donation of $20,000 will provide a restricted fund for Afterschool Rec Club scholarship applicants and $16,000 will offset budgeted contract expenses for the Equity Swim program.

Attachments:

1. MOU
Report Prepared By: Nikki Bryant, Community Services and Recreation Director Reviewed By: Julia Gautho, City Clerk
Approved By: Jamie Goldstein, City Manager
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Item 8 F.

Memorandum of Understanding
Between Soquel Union Elementary School District (SUESD) and the City of Capitola (Capitola) Regarding Support for the Afterschool Rec Club and Equity Swim Programs June 25, 2025
The City of Capitola’s Afterschool Rec Club (originally called the Out of School Time program) was specifically designed to support SUESD Families during the COVID-19 health pandemic and distance/virtual learning. The city has continued the program (even as we moved back to full in-person learning) to serve as crucial childcare partners to our community’s families. As such, SUESD wishes to continue to contribute financially to the program. Specifically, SUESD wishes to contribute to program scholarships so that families meeting identified income criteria may have equitable access to the program.

The SUESD Board of Trustees is proud to support this collaboration with Capitola to jointly support our community. As such, SUESD will contribute $20,000 to support the overall cost of running the After School Rec Club. This agreement will be in place through May 28, 2026.

The City of Capitola’s “Equity Swim” program was designed with equity and community in mind.

Our students live in a community dominated by beach culture. Knowing how to swim is imperative to being a confident member of the community as a youth. The Equity Swim program provides free, high-quality swimming lessons to identified SUESD students in 1st - 3rd grades.

The students are identified as ones who would not otherwise have access to expensive swimming lessons.

The SUESD Board of Trustees is proud to support this collaboration with Capitola to jointly support our community. As such, SUESD will contribute $16,000 (approximately half the cost of the program) to support the overall cost of running the Equity Swim program. This agreement will be in place through May 29, 2025.

SUESD Board President Date
Kallista Edmundson
SUESD Superintendent Date
Scott Turnbull
City of Capitola Date
Recreation Division Manager
Nikki LeBlond Bryant
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Item 8 F.

Capitola City Council
Agenda Report
Meeting: August, 28, 2025
From: City Manager Department
Subject: Seven-Year Extension of Library Financing Authority Joint Powers Agreement
Recommended Action: Approve the fifth Amendment to the Joint Exercise of Powers Agreement establishing the Santa Cruz County Library Financing Authority, and authorize the City Manager to sign the amendment.

Background: Financing of public library services in the County is provided through the Santa Cruz County Library Financing Authority (LFA), a Joint Powers Authority formed in 1996 by the County of Santa Cruz, the City of Capitola, and the cities of Santa Cruz, Watsonville, and Scotts Valley. The LFA was established to provide equitable financing of library services.

LFA funding currently comes from the proceeds of the 2008 voter-approved quarter-cent sales tax for libraries (Measure R) and from jurisdictional contributions (also referred to as “Maintenance of Effort” or MOE contributions) from the cities of Santa Cruz and Watsonville and the County Library Fund, which includes Capitola and Scotts Valley. Under the original LFA agreement approved in June 1996, the cities of Santa Cruz and Watsonville contributed a fixed amount from their general funds, and the County Library Fund contributed an amount based on actual property taxes collected in the unincorporated County and cities of Capitola and Scotts Valley.

When the LFA was established, the City of Santa Cruz contributed more than the County Library Fund based on population, and by holding the City of Santa Cruz’s contribution flat these amounts were intended to equalize. That occurred approximately 15 years later, and the County Library Fund's contribution continued to grow from property taxes.

Since that time the jurisdictions have adopted three amendments to the LFA, each intended to move towards a more equitable distribution of costs and revenue, and provide sufficient resources for library services.

Discussion: The attached Fifth Amendment to the Joint Exercise of Powers Agreement Establishing the Santa Cruz County Library Financing Authority extends the term through June 30, 2032. The following table shows the MOE contributions of the cities and County Library Fund. The City of Capitola’s contribution is included within the Library Fund.

Fiscal Year City Of Santa
Cruz
City of
Watsonville
County Library
Fund
Total
2025-2026 $2,815,836 $541,684 $7,779,536 $11,137,056
2026-2027 $3,303,600 $541,684 $8,413,107 $12,258,391
2027-2028 $3,795,704 $541,684 $9,057,050 $13,394,438
2028-2029 $3,928,553 $541,684 $9,374,298 $13,844,535
2029-2030 $4,066,053 $541,684 $9,702,657 $14,310,394
2030-2031 $4,208,365 $541,684 $10,042,516 $14,792,565
2031-2032 $4,355,657 $541,684 $10,394,279 $15,291,620
206
Item 8 G.

The following table shows the proposed distribution of the MOE funding, split between the two library systems:

Fiscal Year Santa Cruz
City/County
Library System
Watsonville
Library
Total
2025-2026 $9,653,267 $1,483,789 $11,137,056
2026-2027 $10,741,392 $1,516,999 $12,258,391
2027-2028 $11,843,05 $1,551,379 $13,394,438
2028-2029 $12,257,565 $1,586,970 $13,844,535
2029-2030 $12,686,58 $1,623,813 $14,310,394
2030-2031 $13,130,611 $1,661,954 $14,792,565
2031-2032 $13,590,182 $1,701,438 $15,291,620
Fiscal Impact: No fiscal impact to the City of Capitola. Capitola residents pay into the County Library Fund, which is not controlled by the City.

Attachments:

1. Proposed Amendment
Report Prepared By: Chloé Woodmansee, Assistant to the City Manager Reviewed By: Julia Gautho, City Clerk
Approved By: Jamie Goldstein, City Manager
207
Item 8 G.

Library Financing JPA Fifth Amendment June 2025

FIFTH AMENDMENT TO THE JOINT EXERCISE OF POWERS

AGREEMENT ESTABLISHING THE SANTA CRUZ COUNTY LIBRARY

FINANCING AUTHORITY
WHEREAS, the Santa Cruz County Library Financing Authority (“the Financing Authority”) was created in 1996 for the purpose of financing library services and facilities; and WHEREAS, the Financing Authority was established pursuant to the Joint Exercise of Powers Law of the State of California, constituting Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (“the Act”); and WHEREAS, an original agreement entitled the “Joint Exercise of Powers Agreement Santa Cruz County Library Financing Authority” (“the Agreement”) was entered into by each of the parties in May 1996; and
WHEREAS, an agreement amending the original Agreement was entered into by each of the parties in November 2013; and
WHEREAS, a Second Amendment to the Agreement was entered into by each of the parties in December 2015; and
WHEREAS, a Third Amendment to the Agreement was entered into by each of the parties in June 2021; and
WHEREAS, a Fourth Amendment to the Agreement was entered into by each of the parties in July 2022; and
WHEREAS, a Fifth Amendment to the Agreement is necessary to increase the Maintenance of Effort contributions and extend the term seven years; and WHEREAS, said Section 9.5 of said Second Amendment authorizes amendments at any time, or from time to time, only by the unanimous consent of the parties.

NOW THEREFORE, the Board of Supervisors of the County of Santa Cruz, and the City Councils for the Cities of Santa Cruz, Watsonville, Scotts Valley and Capitola agree to further amend the Fourth Amendment as follows:

1. Article III – Contributions is hereby amended as follows:

Section 3.1 – Maintenance of Effort Contributions of the Cities. Commencing with the 2025- 26 fiscal year, the City of Santa Cruz and the City of Watsonville shall contribute a Maintenance of Effort (“MOE”) amount each year in the amounts shown below:
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Item 8 G.

Library Financing JPA Fifth Amendment June 2025
City of Santa Cruz Maintenance of Effort
Fiscal Year Amount
2025-26 $2,815,836
2026-27 $3,303,600
2027-28 $3,795,704
2028-29 $3,928,553
2029-30 $4,066,053
2030-31 $4,208,365
2031-32 $4,355,657
City of Watsonville Maintenance of Effort
Fiscal Year Amount
2025-26 $541,684
2026-27 $541,684
2027-28 $541,684
2028-29 $541,684
2029-30 $541,684
2030-31 $541,684
2031-32 $541,684
Section 3.2 – Maintenance of Effort Contributions of the County. Commencing with the 2025-26 fiscal year, and subject to the terms below, the County of Santa Cruz, on behalf of the Unincorporated Area and the cities of Capitola and Scotts Valley, shall contribute a MOE amount from the County Library Fund each year in the amounts shown below:

County Library Fund Maintenance of Effort
Fiscal Year Amount
2025-26 $7,779,536
2026-27 $8,413,107
2027-28 $9,057,050
2028-29 $9,374,298
2029-30 $9,702,657
2030-31 $10,042,516
2031-32 $10,394,279
If the Annual Net Amount of Allocated Taxes received by the County Library Fund is less than the annual MOE amount shown above, the County shall contribute the lesser amount as its annual MOE contribution. In no instance shall the County’s annual MOE contribution exceed the Annual Net Amount of Allocated Taxes received by the County Library Fund.

If the Annual Net Amount of Allocated Taxes received by the County Library Fund exceeds the annual MOE amount shown above, the County shall allocate any excess funds in the 209
Item 8 G.

Library Financing JPA Fifth Amendment June 2025
County Library Fund for exclusive use on library improvements, major maintenance, or services at County Library Fund branches (including Capitola and Scotts Valley branches) with input by library staff and the cities of Capitola and Scotts Valley.

2. Article IV – Annual Budget/Disbursement of Funds is hereby amended as follows:

Section 4.3 – Disbursement of Funds. Commencing with the 2025-26 fiscal year, the amounts available from MOE contributions, taxes or fees, and carryover balances or surplus funds shall be disbursed as follows:
(A) The estimated amount available from MOE contributions shall be distributed to the Santa Cruz City/County Library System and the Watsonville Library each year in the amounts shown below:

Santa Cruz City/County Library System
Fiscal Year Amount
2025-26 $9,653,267
2026-27 $10,741,392
2027-28 $11,843,059
2028-29 $12,257,565
2029-30 $12,686,581
2030-31 $13,130,611
2031-32 $13,590,182
Watsonville Library
Fiscal Year Amount
2025-26 $1,483,789
2026-27 $1,516,999
2027-28 $1,551,379
2028-29 $1,586,970
2029-30 $1,623,813
2030-31 $1,661,954
2031-32 $1,701,438
These distribution amounts shall be adjusted proportionally should the County’s annual MOE contribution be reduced pursuant to Section 3.2.

3. Article VI – Term and Withdrawal is hereby amended as follows:

Section 6.1 – Term. The changes outlined in this Fifth Amendment shall commence on July 1, 2025 and will continue to remain in effect through June 30, 2032.

All other provisions of said Agreement shall remain the same. 210
Item 8 G.

Library Financing JPA Fifth Amendment June 2025
IN WITNESS WHEREOF, the parties hereto have caused this Fifth Amendment to be executed and attested by their proper officers thereunto duly authorized on the day and year stated below the name of each of the parties. This Fifth Amendment may be signed in counterparts, each of which shall be deemed an original, and all of which shall constitute one and the same agreement.

COUNTY OF SANTA CRUZ Approved as to form:

By:

Dated:

CITY OF SANTA CRUZ Approved as to form:

By:

Dated:

CITY OF WATSONVILLE Approved as to form:

By:

Dated:

CITY OF CAPITOLA Approved as to form:

By:

Dated:

CITY OF SCOTTS VALLEY Approved as to form:

By:

Dated:
211
Item 8 G.

Capitola City Council
Agenda Report
Meeting: August 28, 2025
From: Community Services and Recreation Department
Subject: Bandstand Weathervane Public Art Project
Recommended Action: Approve the Art & Cultural Commission’s recommendation to allocate $10,000 from the Public Art Fund for the Bandstand Weathervane Project, with $5,000 for an engineer to develop technical specifications and $5,000 for an artist contract.

Background: Chapter 2.58 of the Public Art Programs establishes a Public Art Fund to enrich the City’s cultural and aesthetic environment through public art initiatives. This fund is supported by commercial construction projects exceeding $250,000, where developers contribute either 2% of the project cost for on-site public art or 1% directly to the Public Art Fund.

During the Art and Cultural Commission’s (Commission) annual goal setting meeting the Commission identified the weathervane at the bandstand at Esplanade Park as a potential public art project.

Discussion: Staff has confirmed that installing a weathervane on the Bandstand is feasible and that there are no specific Building Code restrictions that would prohibit the project.

Before issuing a Call to Artists, it is necessary to specify the materials, installation method, and ongoing maintenance required for the Commission’s vision for the project. Staff recommends contracting with an engineer to develop technical specifications for inclusion with the Call to Artists.

The estimated cost for these engineering services is not to exceed $5,000. Due to the height of the Bandstand and limited access, the City would likely manage both the final installation and any future maintenance. At the August 12, 2025, meeting, the Art & Cultural Commission recommended allocating Public Art Funds for the engineering services and a $5,000 artist contract budget for the Bandstand Weathervane Project.

Fiscal Impact: The current balance of the Public Art Fund is $120,200, with $50,000 committed to existing projects. The allocation for the Bandstand Weathervane Project includes $10,000 for engineering services and the artist contract, plus 20 percent administrative costs for implementation, resulting in a total project budget of $12,000.

Attachments:

1. Draft Call to Artists: Bandstand Weathervane Project Report Prepared By: Nikki Bryant, Community Services and Recreation Director Reviewed By: Julia Gautho, City Clerk; Jim Malberg, Finance Director; Jessica Kahn, Public Works Director
Approved By: Jamie Goldstein, City Manager
212
Item 8 H.

City of Capitola
Bandstand Weathervane Project
Call to Artists
On behalf of the City of Capitola, the Capitola Art and Cultural Commission is seeking an artist or artist team to design and fabricate a sculptural weathervane to be mounted atop the Bandstand in Esplanade Park.

SITE AND PROJECT DESCRIPTION
The project site is the rooftop of the Bandstand located in Capitola’s Esplanade Park, a central hub for community gatherings, concerts, and events. The Bandstand sits in a high-visibility area near Capitola Beach and serves as a recognizable icon in the community.

The Commission envisions a creative, durable, and visually striking weathervane that is inspired by Capitola’s coastal location, cultural heritage, natural beauty or captures the uniqueness of the setting. Artists are encouraged to consider whimsical, abstract, or representational forms that will be visible from the beach and surrounding area. The final work must be structurally sound, windand weather-resistant, and suitable for permanent outdoor installation on a rooftop.

Artists must ensure their design meets all applicable ADA and technical specifications included in the attachments. While the weathervane will be mounted out of reach, factors such as wind load, weight, and mounting method must be addressed. Artists may collaborate with structural engineers or fabricators to ensure feasibility. The final work will require City and engineering approval prior to installation.

PUBLIC ART BUDGET
The public art budget for this project is $5,000.

This includes all expenses related to design, fabrication, artist travel, insurance, and transport of materials. The City will coordinate and pay separately for final installation via bucket truck in consultation with the artist. Any ongoing maintenance recommendations should be included.

ARTIST ELIGIBILITY
This opportunity is open to artists living or working on the west coast of the United States (California, Oregon, Washington). Applicants must have legal eligibility to work in the United States at the time of submittal.
213
Item 8 H.

SELECTION PROCESS AND EVALUATION CRITERIA
Phase One: Review of Submittals
A selection panel including members of the Art & Cultural Commission, City staff, and community stakeholders will review artist qualifications. Up to three (3) finalists will be selected to develop and present design proposals. Artists will be asked to submit sample concepts and rough budget estimates.

Phase One Selection Criteria:
 Artistic quality and originality
 Feasibility and durability of proposed concept
 Experience with outdoor, sculptural, or rooftop installations  Relevance to Capitola’s community and location
 Cost value
Phase Two: Final Proposal Presentations
Finalists will receive a $500 stipend to create and present a scaled proposal or model.

Presentations may be in person or via Zoom. The Commission will recommend one proposal to be considered for final approval by the City Council.

Phase Two Selection Criteria:
 Innovation and aesthetic impact
 Suitability to the Bandstand and surrounding environment  Engineering feasibility
 Longevity and maintenance requirements

CONTRACT
The selected artist will enter into a contract with the City of Capitola based on a standard designfabrication agreement. Execution of the contract is contingent on final project approval by the City Council and acceptance of terms by the artist.

ANTICIPATED TIMELINE
 August 12, 2025 – Commission reviews and approves Call to Artists  September 8, 2025 – Call to Artists Released
 October 30, 2025 – Submission Deadline
 November 11, 2025 – Selection of Finalists
 December 9, 2025 – Finalist Presentations to Commission  January 8, 2025 – Recommendation to City Council
 Spring 2026 – Fabrication and Installation
214
Item 8 H.

Timeline subject to change.

SUBMITTAL GUIDELINES
Submit the following by 5:00 p.m. on September 30, 2025:

1. Cover Sheet
o Project Title: Bandstand Weathervane
o Artist’s Name, Phone Number, Email, Mailing Address, Website (if applicable)

2. Resume (2 pages max)

3. Portfolio
o Up to 10 images (PDF or JPEGs) of prior public art or relevant works

4. References
o Contact information for three professional references Submit via email to:

Nikki Bryant
[email protected]
City of Capitola
4400 Jade St
Capitola, CA 95010
831-475-5935 x401
Questions?
Contact Nikki Bryant at 831-475-5935 or [email protected].

Appendices to be included:
 Appendix 1 – Photos of Bandstand (site)
 Appendix 2 – Location Map
 Appendix 3 – Technical Specification
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Item 8 H.
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Item 8 H.

CAPITOLA
Bandstand
23'-10"
2'-9"
13'-1"
8'
122°
26'-11"
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Item 8 H.
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Item 8 H.

APPENDIX 3 – TECHNICAL SPECIFICATION SHEET
(To be completed upon engagement of engineering consultant) This appendix will include the finalized technical requirements for the design, mounting, and structural integrity of the weathervane to be installed atop the Bandstand in Esplanade Park.

The specification sheet will address:
• Maximum weight and dimensions of the final artwork
• Wind and seismic design requirements
• Mounting method and fastener types
• Structural attachment details specific to the Bandstand roof • Required materials and finishes for durability in coastal conditions • Safety and code compliance requirements
221
Item 8 H.

Capitola City Council
Agenda Report
Meeting: August 28, 2025
From: City Manager Department
Subject: Establishment of Santa Cruz Mountains Wine Improvement District Recommended Action: Adopt a resolution granting consent to the County of Santa Cruz to establish the Santa Cruz Mountains Wine Improvement District (SCMWID) and include the City of Capitola in the SCMWID.

Background: The County of Santa Cruz (County) is working with the Santa Cruz Mountains Winegrowers Association (SCMWA) to form the Santa Cruz Mountains Wine Improvement District (SCMWID) pursuant to the Property and Business Improvement District Law of 1994 (‘94 Law). The County has requested the inclusion of the City of Capitola in the SCMWID by resolution (Attachment 2).

The SCMWID is a benefit assessment district proposed to create a revenue source to help fund marketing & brand awareness, and business improvement & special project efforts for wineries in the Santa Cruz Mountains. This approach has been used successfully in other wine regions throughout the country to drive increased sales revenue directly to payors. The SCMWID includes all wineries, existing and in the future, located generally within the boundaries of the Santa Cruz Mountains American Viticulture Area (AVA), which geographically includes the cities of Santa Cruz, Saratoga, Scotts Valley, Capitola, and Watsonville, the towns of Los Gatos, Portola Valley, and Woodside, and portions of the unincorporated areas of the Counties of Santa Cruz, Santa Clara, and San Mateo.

Winery owners decided to pursue the formation of the SCMWID to create a revenue source devoted to marketing SCMWID as a premier wine destination and increasing demand for visitation at assessed wineries to increase winery sales revenue. If established, the SCMWID would generate approximately $575,000 on an annual basis for the promotion of wineries in the SCMWID.

Wine Improvement Districts: Wine Improvement Districts (WIDs) utilize the efficiencies of private sector operation in the market-based promotion of business districts. These special assessment districts allow assessed business owners to unite, to increase sales and promotional efforts. Business owners within the WID fund the WID, and those funds are used to provide services that are desired by and benefit the assessed businesses within the WID. Benefits of WIDs include:
 Funds cannot be diverted for other government programs;  They are customized to fit the needs of each destination;  They allow a wide range of services, including destination marketing, business promotion activities, and sales lead generation;
 They are designed, created, and governed by those who will pay the assessment;  They provide a stable funding source for business promotion.

In California, WIDs are primarily formed under the Property and Business Improvement District Law of 1994 (‘94 Law). This law allows for the creation of special benefit assessment districts to raise funds within a specific geographic area. The key difference between WIDs and other special benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the WID.
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Discussion: The Santa Cruz Mountain Wine Improvement District would implement the agreed-upon Management District Plan (Attachment 3), which includes the proposed boundary of the SCMWID, a service plan and budget, and a proposed means of governance. The SCMWID will include all wineries, existing and in the future, located generally within the boundaries of the cities of Santa Cruz, Saratoga, Scotts Valley, Capitola, and Watsonville, the towns of Los Gatos, Portola Valley, and Woodside, and portions of the unincorporated areas of the Counties of Santa Cruz, Santa Clara, and San Mateo. This geographic boundary reflects the Santa Cruz Mountains American Viticulture Area (AVA).

The annual assessment rate is one percent (1%) of gross direct-to-consumer sales revenue on winery sales. Beginning in the second year of the SCMWID term, the assessment rate may be increased by the Owners’ Association to a maximum rate of two percent (2%) of gross direct-to-consumer sales revenue on winery sales. The maximum increase or decrease in a year shall be no more than one-half percent (0.5%). If the assessment rate is increased, it may subsequently be decreased but shall not be decreased below a minimum of one percent (1%) of gross direct-to-consumer sales revenue on winery sales.

Revenue generated from the SCMWID is intended only to provide programs and services for assessed wineries, all of which are in California. Sales made outside of the state of California are not subject to assessment due to a lack of benefit. Assessment dollars will not be spent on any programs or activities to benefit individual wineries outside of the state of California. Assessment dollars may be spent outside of California to elevate the reputation of the Santa Cruz Mountains as a premier winery destination, with the desired outcome of increased in-person visitation to wineries paying the assessment.

The proposed SCMWID will have a five-year term, beginning November 1, 2025, or as soon as possible thereafter, and ending five years from its start date. The assessment will be implemented beginning November 1, 2025. Once per year, beginning on the anniversary of SCMWID formation, there is a 30- day period in which winery owners paying fifty percent (50%) or more of the assessment may protest and begin proceedings to terminate the SCMWID.

The County or a third-party collection agency shall be responsible for collecting the assessment quarterly from each assessed winery. The County or a third-party collection agency shall forward the assessments to the Santa Cruz Mountains Winegrowers Association (SCMWA), which will have the responsibility of managing SCMWID programs as provided in the Management District Plan. The County or a third-party collection agency shall be paid a fee equal to two percent (2%) of the amount of assessment collected to cover its costs of collection and administration.

Establishment Process: The process to form the SCMWID began when over 50% of winery owners, by assessment value, submitted petitions in support. On August 5, the Santa Cruz County Board of Supervisors approved a resolution requesting consent for consent from the affected cities, like Capitola, By August 9, 2025, all wineries will be formally notified, triggering a 45-day period for protests. A County Board of Supervisors meeting for comments is scheduled for September 9, 2025, followed by a final public hearing on September 23, 2025. If less than 50% of winery owners protest, the Santa Cruz Board of Supervisors may approve the formation of the SCMWID. 223
Item 8 I.

Fiscal Impact: Potentially none. If the SCMWID is successful in attracting more tourism and thus increases sales of Santa Cruz Mountain wine, sales tax may slightly increase within the special district, including the City of Capitola. Currently, there is one business in the City that would be affected by the formation of the SCMWID, and any future tasting rooms would also be required to become members of and pay into the WID.

Attachments:

1. Proposed Resolution (granting consent to create the District)

2. Santa Cruz County Resolution Requesting Consent from Jurisdictions

3. SCMWID Management Plan
Report Prepared By: Report Prepared By: Chloé Woodmansee, Assistant to the City Manager Reviewed By: Jim Malberg, Finance Director; Julia Gautho, City Clerk Approved By: Jamie Goldstein, City Manager
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1 RESOLUTION NO. 159-2025

RESOLUTION OF THE SANTA CRUZ COUNTY BOARD OF SUPERVISORS

REQUESTING CONSENT OF THE CITIES OF SANTA CRUZ, SARATOGA, SCOTTS VALLEY, CAPITOLA, AND WATSONVILLE; THE TOWNS OF LOS GATOS, PORTOLA VALLEY AND WOODSIDE; AND THE COUNTIES OF

SANTA CLARA AND SAN MATEO TO FORM THE SANTA CRUZ

MOUNTAINS WINE IMPROVEMENT DISTRICT
WHEREAS, the Board of Supervisors of the County of Santa Cruz desires to begin proceedings to form the Santa Cruz Mountains Wine Improvement District (SCMWID); and
WHEREAS, winery owners have requested that the Board form the SCMWID; and WHEREAS, a portion of the territory proposed to be included in the SCMWID lies within the boundaries of the cities of Santa Cruz, Saratoga, Scotts Valley, Capitola, and Watsonville (cities); the towns of Los Gatos, Portola Valley, and Woodside (towns); and portions of the unincorporated areas of the counties of Santa Clara and San Mateo (counties), as shown on the map attached hereto as Exhibit A and incorporated herein by such attachment; and
WHEREAS, the area of the cities, towns, and counties which lies within the boundaries of the proposed SCMWID will, in the opinion of the Board, benefit from the improvements and activities, and the purpose sought to be accomplished by the work can best be accomplished by a single comprehensive scheme of work;

NOW, THEREFORE, BE IT RESOLVED BY THE SANTA CRUZ COUNTY BOARD OF SUPERVISORS THAT:

Section 1: The above recitals are true and correct.

Section 2: Consent of the cities, towns, and counties through their respective City Councils, Town Councils and Boards of Supervisors, is hereby requested to form the SCMWID, and to grant to the Santa Cruz County Board of Supervisors jurisdiction for all the purposes in connection with creation, operation, and future renewals of the proposed SCMWID.

Section 3: The Clerk of the Board is hereby directed to transmit a certified copy of this Resolution to the City Clerk of the cities of Santa Cruz, Saratoga, Scotts Valley, Capitola, and Watsonville; to the Town Clerk of the towns of Los Gatos, Portola Valley, and Woodside; and to the County Clerk of the counties of Santa Clara and San Mateo.

PASSED AND ADOPTED by the Board of Supervisors of the County of Santa Cruz, State of California, this 5th day of August, 2025, by the following vote:

Docusign Envelope ID: 379CD258-E7AD-4838-B4E6-F4983EFB31E3 Adopted 8/5/2025 Board of Supervisors
DOC-2025-627 27.c
Docusign Envelope ID: 0E3885AE-3042-4ABB-8613-48F9E4D04FE5 225
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2 AYES: Supervisors Koenig, De Serpa, Cummings, Martinez and Hernandez NOES: None
ABSENT: None
ABSTAIN: None
______________________________
Felipe Hernandez
Chair of the Board
ATTEST: ___________________________
Juliette Rezzato
Clerk of the Board
APPROVED AS TO FORM:
______________________________
Jason M. Heath
Office of the County Counsel
Docusign Envelope ID: 379CD258-E7AD-4838-B4E6-F4983EFB31E3 Resolution 159-2025
Docusign Envelope ID: 0E3885AE-3042-4ABB-8613-48F9E4D04FE5 8/6/2025
8/6/2025
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3 Exhibit A: SCMWID Boundary Map
Docusign Envelope ID: 379CD258-E7AD-4838-B4E6-F4983EFB31E3 Docusign Envelope ID: 0E3885AE-3042-4ABB-8613-48F9E4D04FE5 227
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Certificate Of Completion
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All notices and disclosures will be sent to you electronically Electronic Record and Signature Disclosure created on: 2/28/2022 5:23:37 PM Parties agreed to: Jason M. Heath
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Docusign Envelope ID: 0E3885AE-3042-4ABB-8613-48F9E4D04FE5 231
Item 8 I.

Certificate Of Completion
Envelope Id: 0E3885AE-3042-4ABB-8613-48F9E4D04FE5 Status: Completed Subject: Complete with Docusign: Resolution 159-2025 requesting consent to form the Santa Cruz Mountains...

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All notices and disclosures will be sent to you electronically Electronic Record and Signature Disclosure created on: 2/28/2022 5:23:37 PM Parties agreed to: Felipe Hernandez, Juliette Rezzato, CBD eSignature, Peter Detlefs 234
Item 8 I.

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To inform us that you no longer wish to receive future notices and disclosures in electronic format you may:
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Item 8 I.
i. decline to sign a document from within your signing session, and on the subsequent page, select the check-box indicating you wish to withdraw your consent, or you may; ii. send us an email to [email protected] and in the body of such request you must state your email, full name, mailing address, and telephone number. We do not need any other information from you to withdraw consent.. The consequences of your withdrawing consent for online documents will be that transactions may take a longer time to process..

RESOLUTION NO. ___________

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAPITOLA, STATE OF

CALIFORNIA, GRANTING CONSENT TO THE COUNTY OF SANTA CRUZ TO FORM THE

SANTA CRUZ MOUNTAINS WINE IMPROVEMENT DISTRICT
WHEREAS, the County of Santa Cruz (County) is beginning the process to form the Santa Cruz Mountains Wine Improvement District (SCMWID) pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq., for the benefit of driving increased business sales directly to assessed wineries; and WHEREAS, the proposed SCMWID includes all wineries, existing and in the future, located generally within the boundaries of the cities of Santa Cruz, Saratoga, Scotts Valley, Capitola, and Watsonville; the towns of Los Gatos, Portola Valley, and Woodside; and portions of the unincorporated areas of the Counties of Santa Cruz, Santa Clara and San Mateo; and WHEREAS, the County Board of Supervisors has requested consent to form the SCMWID in the City of Capitola with adoption of County Resolution No. ________, dated August 5, 2025;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Capitola, that:

Section 1: The above recitals are true and correct.

Section 2: The County is hereby granted consent to include the City of Capitola in the SCMWID, for the formation of the SCMWID and future renewals.

Section 3: The Clerk of the City of Capitola is hereby directed to transmit a certified copy of this Resolution to the Clerk of the County.

Section 4: This Resolution is effective upon its adoption.

I HERBY CERTIFY that the forgoeing Resolution was passed and adopted by the City Council of the City of Capitola on the 28th day of August, 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
______________________________
Joe Clarke, Mayor
ATTEST: ___________________________
Julia Gautho, City Clerk
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Item 8 I.
2025-2030

SANTA CRUZ MOUNTAINS WINE IMPROVEMENT DISTRICT

MANAGEMENT DISTRICT PLAN
May 20, 2025 Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code Section 36600 et seq. 238 Item 8 I.

Contents
I. OVERVIEW ........................................................................................................................................3 II. BACKGROUND ................................................................................................................................5 III. BOUNDARY.......................................................................................................................................6 IV. ASSESSMENT BUDGET AND SERVICES................................................................................8 A. Annual Service Plan............................................................................................................ 8 B. Annual Budget .................................................................................................................. 10 C. California Constitutional Compliance .............................................................................. 11 D. Assessment........................................................................................................................ 12 E. Overdue Charges and Interest........................................................................................... 13 F. Time and Manner for Collecting Assessments................................................................. 14 V. GOVERNANCE...............................................................................................................................15 A. Owners’ Association......................................................................................................... 15 B. Brown Act and California Public Records Act Compliance ............................................ 15 C. Annual Report................................................................................................................... 15 APPENDIX 1 – LAW....................................................................................................................................16 APPENDIX 2 – ASSESSED WINERIES* ...............................................................................................28 Prepared by
Civitas
(800)999-7781
www.civitasadvisors.com
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Item 8 I.

SCMWID Management District Plan 3
May 20, 2025
I. OVERVIEW
Developed by wineries in the Santa Cruz Mountains and by the Santa Cruz Mountains Winegrowers Association (SCMWA), the Santa Cruz Mountains Wine Improvement District (SCMWID) is an assessment district proposed to provide specific benefits to payors, by funding marketing & brand awareness and business improvement & special projects efforts for assessed wineries. This approach has been used successfully in other wine regions throughout the country to provide the benefit of driving increased sales revenue directly to payors.

Location: The SCMWID includes all wineries, existing and in the future, located generally within the boundaries of the cities of Santa Cruz, Saratoga, Scotts Valley, Capitola, and Watsonville, the towns of Los Gatos, Portola Valley, and Woodside, and portions of the unincorporated areas of the Counties of Santa Cruz, Santa Clara, and San Mateo.

A detailed boundary description and a boundary map are included in Section III of this Management District Plan (Plan).

Services: The SCMWID is designed to provide specific benefits directly to payors by increasing winery sales and revenue therefrom. Marketing, brand awareness, business improvement, and special projects efforts will promote assessed wineries in the SCMWID to increase winery sales revenue.

Budget: The total SCMWID annual assessment budget for the initial year of its five (5) year operation is anticipated to be approximately $575,000. A similar budget is expected to apply to subsequent years, but this budget is expected to fluctuate as sales do, as wineries open and close, and if the assessment rate is increased or decreased pursuant to this Management District Plan (Plan).

Cost: The annual assessment rate is one percent (1%) of gross direct to consumer sales revenue on winery sales. Beginning in the second year of the SCMWID term, the assessment rate may be increased by the Owners’ Association to a maximum rate of two percent (2%) of gross direct to consumer sales revenue on winery sales. The maximum increase or decrease in a year shall be no more than one-half of one percent (0.5%). If the assessment rate is increased, it may subsequently be decreased but shall not be decreased below a minimum of one percent (1%) of gross direct to consumer sales revenue on winery sales.

Based on the benefit received, assessments will not be collected on wholesale, purchases made outside of the state of California, or purchases made pursuant to contracts executed prior to November 1, 2025. Revenue generated from the SCMWID is intended only to provide programs and services for assessed wineries, all of which are located in California. Sales made outside of the state of California are not subject to assessment due to a lack of benefit. Assessment dollars will not be spent on any programs or activities to benefit individual wineries outside of the state of California.

Assessment dollars may be spent outside of California to elevate the notoriety of the Santa Cruz Mountains as a premier winery destination with the desired outcome of increased in-person visitation to wineries paying the assessment. 240
Item 8 I.

SCMWID Management District Plan 4
May 20, 2025
Collection: The County of Santa Cruz (County) or a third-party collection agency shall be responsible for collecting the assessment on a quarterly basis (including any delinquencies, overdue charges and interest) from each assessed winery located in the boundaries of the SCMWID. The County or a third-party collection agency shall take all reasonable efforts to collect the assessments from each assessed winery.

Duration: The SCMWID will have a five (5) year life, beginning on November 1, 2025, or as soon as possible thereafter, and ending five (5) years from its start date. After five (5) years, the SCMWID may be renewed pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq. (94 Law) if winery owners support continuing the SCMWID programs.

Management: The SCMWA shall serve as the Owners’ Association to provide improvements and activities for the SCMWID. The Owners’ Association is charged with managing funds and implementing programs in accordance with this Plan, and must provide annual reports to the County.
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Item 8 I.

SCMWID Management District Plan 5
May 20, 2025
II. BACKGROUND
Wine Improvement Districts (WIDs) are an evolution of the traditional Business Improvement District (BID). BIDs utilize the efficiencies of private sector operation in the market-based promotion of business districts. BIDs allow business owners to organize their efforts to increase sales and promotional efforts. Business owners within the district fund a BID, and those funds are used to provide services that the businesses desire and benefit the businesses within the district.

Business Improvement District services may include, but are not limited to:
➢ Marketing of the District
➢ Business Promotion Activities
➢ Infrastructure Improvements
In California, BIDs are formed pursuant to the 94 Law. This law allows for the creation of special benefit assessment districts to raise funds within a specific geographic area. The key difference between BIDs and other special benefit assessment districts is that funds raised are managed by the private non-profit corporation governing the district.

There are many benefits to Business Improvement Districts:
➢ Funds cannot be diverted for other government programs; ➢ Services are customized to fit the needs of each district; ➢ They allow for a wide range of services, including those listed above; ➢ Business Improvement Districts are designed, created and governed by those who will pay the assessment; and
➢ They provide a stable funding source for business promotion.

The 94 Law is provided in Appendix 1 of this document.
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III. BOUNDARY
The SCMWID includes all wineries, existing and in the future, located generally within the boundaries of the cities Santa Cruz, Saratoga, Scotts Valley, Capitola, and Watsonville, the towns of Los Gatos, Portola Valley, and Woodside, and portions of the unincorporated areas of the Counties of Santa Cruz, Santa Clara, and San Mateo. Specifically, the boundaries of the SCMWID are as follows:

Starting at the intersection of State Route 84 and State Route 1, the boundaries proceed south along the State Route 1 until intersecting the AVA boundaries at 122°16'44" W, 37°6'16" N. It follows the boundaries of the AVA boundaries until intersecting the City of Santa Cruz where it goes south along the city boundary line until intersecting with the county line of Santa Cruz County.

It proceeds along the county line until intersecting with State Route 1 where it heads north until intersecting State Route 152. It follows along State Route 152 until 121°41'38" W, 36°59'29" N where it starts to follow the AVA boundary line heading north. When it intersects with the city limits of San Jose it goes south and west around the city limits, until continuing northwest along the AVA lines.

When it intersects with Cinnabar Hills Road at 121°49'7" W, 37°10'28" N. It follows Cinnabar Hills Road and joins Bertram Road where it continues north mering with Almaden Road and continuing to head north. Upon intersecting with the city limits of San Jose and proceeding northwest until intersecting with W Valley Freeway and heading northwest along the W Valley Freeway until intersecting with the boundary line for the city of Campbell and heading south-west until rejoining the boundary for San Jose and heading west. It jumps and continues west when intersecting with the City of Cupertino. At 122°4’21" W, 37°18'2" N the boundary line joins the AVA and follows the AVA northwest. It avoids all areas that are in the city of Cupertino and heads northwest.

At 122°5'17" W, 37°19'41" N it begins to follow the boundaries of the city of Cupertino again, heading north until merging with Interstate 280 and heading north west along the line. Upon intersecting the city of Palo Alto it follows the city boundary line south and around until the coordinates of 122°12'6" W, 37°21'30" N, where the boundaries follow the AVA boundaries heading north until intersecting Alpine Road, where it proceeds north east. When intersecting with Golden Oak Drive it heads west until turning into Peak Lane and heading south at the intersection of Peak Lane and Cervantes Road and heading east on Cervantes Road.

At the intersection with Westridge Drive it heads south until intersecting with Portola Road. It travels along Portola Road north west until turning southwest at the intersection of Wayside Road. Once Wayside Road intersects with the AVA boundaries it turns and following the AVA boundaries north.

Once it intersects with Woodside Road and Interstate 280 the boundaries head north along Woodside Road until intersecting with Fernside Street where it heads north west along the city boundary line for Redwood City. At 122°16'46" W, 37°27'37" N, it stops following Redwood City's boundary line and proceeds southwest along the boundary line for the city of Woodside. Once it intersects with Interstate 280 it proceeds north west along the interstate until intersecting with State Route 92 where it heads west along the highway until reuniting with the AVA boundaries and proceeding southwest along the AVA boundary line to the starting point.

The term “winery” as used herein means: A business, primarily used for the retail marketing and sales of wine and related goods, open to all settings at which wine and related goods can be sold, including but not limited to: publicly available settings, by appointment only reservations, or private and exclusive tastings. The term wine tasting facility includes, but is not limited to, vineyard locations with 243
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onsite tastings and hospitality and retail rooms on site at producing wineries, which must be agricultural facilities used for the processing (fermentation when combined with any two of the following: crushing, pressing, aging, blending or bottling) of wine grapes into wine or the refermenting of still wine into sparkling wine, as well as stand-alone tasting rooms in commercial areas.

All wine tasting facilities must possess a Type 02 Department of Alcohol Beverage Control license or a Type 17 (Beer and Wine Wholesaler) and Type 20 (Off-Sale Beer and Wine) License combination.

A complete listing of assessed wineries within the SCMWID can be found in Appendix 2. A map of the SCMWID boundaries is shown below.
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IV. ASSESSMENT BUDGET AND SERVICES
A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the County of conferring the benefits or granting the privileges. The privileges and services provided with the SCMWID funds are marketing & brand awareness and business improvement & special projects efforts available only to assessed wineries.

A service plan assessment budget has been developed to deliver services that benefit the assessed wineries. A detailed annual assessment budget will be developed and approved by the SCMWA. The chart below illustrates the initial annual assessment budget allocations. The total initial assessment budget is estimated to be $575,000.

Although actual revenues will fluctuate due to market conditions, the proportional allocations of the assessment budget shall remain the same. However, the County and the SCMWA Board shall have the authority to adjust budget allocations between the categories by no more than fifteen percent (15%) of the total budget per year. A description of the proposed improvements and activities for the initial year of operation is below. The same activities are proposed for subsequent years. In the event of a legal challenge against the SCMWID, any and all assessment funds may be used for the costs of defending the SCMWID. In the first year of operation, the costs of creating the SCMWID may be repaid by deducting repayment funds proportionally from budget categories. Repayment costs shall not exceed $75,000.

Each budget category includes all costs related to providing that service. For example, the marketing & brand awareness budget includes the cost of staff time dedicated to overseeing and implementing the marketing & brand awareness program. Staff time dedicated purely to administrative tasks is allocated to the administration & operations portion of the budget. The costs of an individual staff Marketing & Brand
Awareness, 55%,
$316,250
Business Improvement
& Special Projects, 10%,
$57,500
Administration
& Operations,
23%, $132,250
Contingency / Reserve, 10%,
$57,500
Collection Fee, 2%,
$11,500
Initial Annual Assessment Budget - $575,000
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member may be allocated to multiple budget categories. The staffing levels necessary to provide the services below will be determined by the SCMWA on an as-needed basis.

Marketing & Brand Awareness
A marketing & brand awareness program will promote the SCMWID as a premium winegrowing region and as a leader in the global wine community. The marketing & brand awareness program will have a central theme of promoting the SCMWID as a desirable place to experience Santa Cruz Mountains wineries, and as a desirable area to purchase wines and other estate produced products.

The program has the goal of increasing demand for visitation to the winegrowing region, retail sales, affinity for SCMWID grapes and wines, and recognition at and for assessed wineries, and may include but is not limited to the following activities:
• Advertising – across any and all media channels to promote assessed wineries on a local, regional or national level, including but not limited to: digital, print, television, radio and strategic brand partnerships;
• Media Relations – Promoting assessed wineries through development of media relations strategies, including but not limited to: media familiarization tours, proactive media pitching and influencer relations;
• Digital Marketing – Utilizing paid, earned and owned social media to increase awareness of and engagement with assessed wineries;
• Events – Developing and executing special events that attract potential customers to assessed wineries, enhancing community engagement and visibility; • Trade & Industry Engagement – Ensuring representatives are provided the opportunity to attend trade shows, meetings, industry conferences, road shows, and events to promote assessed wineries; Create programs that engage key trade and industry influencers with the Santa Cruz Mountains;
• Print Collateral – Preparing and producing collateral, promotional materials such as brochures, flyers and maps for assessed wineries;
• Brand Enhancement – Brand development initiatives to increase awareness and demand for assessed wineries;
• Consumer Analytics – Identify and leverage consumer demographic, geographic and psychographic data to target messaging that markets Santa Cruz Mountains as a premier, unique wine destination to attract customers to assessed wineries; and • Wine Club Signups – Promote wine club membership for assessed wineries to build customer loyalty and enhance the SCMWID brand.

Business Improvement & Special Projects
The business improvement & special projects program will seek to attract and retain wineries within the SCMWID, and fund special projects designed to promote and benefit the assessed wineries. This program aims to cultivate a thriving wine community by fostering collaboration among producers and enhancing the region’s appeal as a premier destination. Through targeted initiatives, the program will empower wineries to innovate and grow their businesses sustainably. The business improvement & special projects programs may include, but is not limited to:
• Customer Engagement Projects – Develop and execute special projects that drive customer engagement with assessed wineries to increase sales;
• Signage Program – Coordinate local signage for the Santa Cruz Mountains wine region; • Training Programs – Provide training and resources for assessed wineries focused on sales, hospitality, marketing, media relations, and operational best practices to enhance staff effectiveness;
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• Educational Programs – Create educational programs for assessed wineries with the goal of increasing visitation, sales, and brand value;
• Market Research and Evaluation – Conduct comprehensive market research, fund awareness and best practice studies, and maintain a robust district database to evaluate the SCMWID’s visibility and operational success among target market segments; • Guest Communication Support – Assist assessed wineries with the development of guest communications and point-of-sale materials to enhance customer interactions; • Advocacy – Advocate for business-friendly policies that facilitate capital investment and growth opportunities throughout the SCMWID; and
• Liaison Support – Designate personnel who will serve as a liaison between winery owners and government agencies to facilitate growth and business development on assessed wineries.

Administration & Operations
The administration & operations portion of the budget shall be utilized for administrative staffing costs, office costs, advocacy, and other general administrative costs such as insurance, legal, and accounting fees.

Contingency / Reserve
The budget includes a contingency line item to account for lower than anticipated assessments. If there are contingency funds collected, they may be held in a reserve fund or utilized for other programs, administration or renewal costs at the discretion of the Owners’ Association. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve fund shall be set by the Owners’ Association. Contingency/reserve funds may be spent on SCMWID programs or administrative and renewal costs in such proportions as determined by the Owners’ Association.

Collection Fee
The County or a third-party collection agency shall be paid a fee up to two percent (2%) of the amount of assessment collected to cover its costs of collection and administration.

B. Annual Budget
The total five (5) year assessment budget is projected at approximately $575,000 annually, or approximately $4,887,500 through 2030 if maximum assessment rate increases are adopted. This amount may fluctuate as winery sales do, as wineries open and close, and if the assessment rate is increased or decreased pursuant to this Plan.

The annual assessment rate is one percent (1%) of gross direct to consumer sales revenue on winery sales. Beginning in the second year of the SCMWID term, the assessment rate may be increased by the Owners’ Association to a maximum rate of two percent (2%) of gross direct to consumer sales revenue on winery sales. The maximum increase or decrease in a year shall be no more than one-half of one percent (0.5%). If the assessment rate is increased, it may subsequently be decreased but shall not be decreased below a minimum of one percent (1%) of gross direct to consumer sales revenue on winery sales.

The table below demonstrates the estimated maximum budget with the assumption that assessment rate will be increased at the earliest opportunity, as it is a required disclosure, it is not the anticipated course of action. Alternate courses of action may be taken in regard to implementing the assessment rate increase other than what is demonstrated in the chart below, within the parameters of this Plan. 247
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Estimated Annual Budget if Maximum Assessment Rates are Adopted C. California Constitutional Compliance
The SCMWID assessment is not a property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term ‘assessments’ to levies on real property.1 Rather, the SCMWID assessment is a business-based assessment, and is subject to Proposition 26. Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions.

Two of these exceptions apply to the SCMWID, a “specific benefit” and a “specific government service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the County of conferring the benefits or providing the services.

1. Specific Benefit
Proposition 26 requires that assessment funds be expended on, “a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.”2 The services in this Plan are designed to provide targeted benefits directly to assessed wineries, and are intended only to provide benefits and services directly to those wineries paying the assessment. These services are tailored not to serve the general public, businesses in general, or parcels of land, but rather to serve the specific wineries within the SCMWID. The activities described in this Plan are specifically targeted to increase sales for assessed wineries within the boundaries of the SCMWID, and are narrowly tailored. SCMWID funds will be used exclusively to provide the specific benefit of increased winery sales revenue directly to the assessees. Assessment funds shall not be used to feature non-assessed wineries in SCMWID programs, or to directly generate sales for non-assessed wineries. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed wineries.

The assessment imposed by this SCMWID is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in winery sales revenue. The specific benefit of an increase in sales revenue for assessed wineries will be provided only to wineries paying the district assessment, with marketing, brand awareness, business improvement, and special projects efforts promoting wineries paying the SCMWID assessment. The marketing & brand awareness and business improvement & special projects efforts programs will be designed to increase sales revenue at each assessed winery. Because 1 Howard Jarvis Taxpayers Association v. City of San Diego (1999) 72 Cal App. 4th 230 2 Cal. Const. art XIII C § 1(e)(1)
Year
Marketing &
Brand
Awareness
Business
Improvement
& Special
Projects
Administration
& Operations
Contingency/
Reserve
Collection
Fee
Total
2025-2026 $316,250 $57,500 $132,250 $57,500 $11,500 $575,000 2026-2027 $474,375 $86,250 $198,375 $86,250 $17,250 $862,500 2027-2028 $632,500 $115,000 $264,500 $115,000 $23,000 $1,150,000 2028-2029 $632,500 $115,000 $264,500 $115,000 $23,000 $1,150,000 2029-2030 $632,500 $115,000 $264,500 $115,000 $23,000 $1,150,000 Total $2,688,125 $488,750 $1,124,125 $488,750 $97,750 $4,887,500 248
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they are necessary to provide the marketing & brand awareness and business improvement & special projects efforts that specifically benefit the assessed wineries, the administration and contingency services also provide the specific benefit of increased sales revenue to the wineries.

Although the SCMWID, in providing specific benefits to payors, may produce incidental benefits to non-paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, “A specific benefit is not excluded from classification as a ‘specific benefit’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.”3

2. Specific Government Service
The assessment may also be utilized to provide, “a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.” 4 The legislature has
recognized that marketing and promotions services like those to be provided by the SCMWID are government services within the meaning of Proposition 265. Further, the legislature has determined that “a specific government service is not excluded from classification as a ‘specific government service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.”6

3. Reasonable Cost
SCMWID services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by the SCMWA and reports submitted on an annual basis to the County. Only assessed wineries will be featured in marketing materials, receive sales leads generated from SCMWIDfunded activities, be featured in advertising campaigns, and benefit from other SCMWID-funded services. The assessed winery list (Appendix 2) was compiled from records provided by each jurisdiction and complies with the requirements of the 94 Law. Pursuant to Streets and Highways Code Section 36615, the County Board of Supervisors’ (Board of Supervisors) determination of ownership is final and conclusive, with no obligation to obtain other information. Non-assessed wineries will not receive these, nor any other, SCMWID-funded services and benefits.

The SCMWID -funded programs are targeted directly to benefit assessed wineries. SCMWID funds shall only be spent to benefit the assessed wineries, and shall not be spent on that portion of any program which directly generates incidental sales for non-assessed wineries.

D. Assessment
The annual assessment rate is one percent (1%) of gross direct to consumer sales revenue on winery sales. Beginning in the second year of the SCMWID term, the assessment rate may be increased by the Owners’ Association to a maximum rate of two percent (2%) of gross direct to consumer sales revenue on winery sales. The maximum increase or decrease in a year shall be no more than one-half of one percent (0.5%). If the assessment rate is increased, it may subsequently be decreased but shall not be decreased below a minimum of one percent (1%) of gross direct to consumer sales revenue on winery sales.
3 Government Code § 53758(a)
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)
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Based on the benefit received, assessments will not be collected on wholesale, purchases made outside of the state of California or purchases made pursuant to contracts executed prior to November 1, 2025. Revenue generated from the SCMWID is intended only to provide programs and services for assessed wineries, all of which are located in California. Sales made outside of the state of California are not subject to assessment due to a lack of benefit. Assessment dollars will not be spent on any programs or activities to benefit individual wineries outside of the state of California. Assessment dollars may be spent outside of California to elevate the notoriety of the Santa Cruz Mountains as a premier winery destination with the desired outcome of increased in-person visitation to wineries paying the assessment.

The assessment was calculated based on the total cost of the activities to be provided for the benefit of the wineries within the SCMWID with costs allocated based on the proportional benefit conferred to each winery. Activities funded by the SCMWID are specifically targeted to increase winery sales revenue at assessed wineries. All winery sales do not represent the same benefit to the payors. For example, a higher priced winery sale is of greater benefit than a lower priced winery sale because the assessee derives greater revenue. To account for this benefit differential and to make sure the benefits are proportional, an assessment formula based on a percentage of revenue has been selected. The proposed formula accurately reflects greater benefit to assessed wineries with higher priced winery sales.

The term “gross direct to consumer sales revenue” as used herein means: all direct-to-consumer (DTC) sales of wine, wine club shipments (whether shipped or picked up), tasting room sales, merchandise, food, revenue from orders placed via telemarketing, telephone, online, email, whether carried out at the time of purchase, shipped or picked up at a later date (pre-sales). “Gross direct to consumer sales revenue” shall not include any sales made outside of the state of California.

The assessment is levied upon and a direct obligation of the assessed winery. However, the assessed winery may, at its discretion, pass the assessment on to customers. The amount of assessment, if passed on to each customer, shall be disclosed in advance and separately stated from the amount charged and any other applicable taxes, and each customer shall receive a receipt for payment from the business. If the SCMWID assessment is identified separately it shall be disclosed as the “SCMWID Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed winery even if it is passed on to customers. The California Department of Tax and Fee Administration (CDTFA) issued a written opinion that state sales tax applies to the revenue generated from business improvement district (BID) assessments on items where state sales tax is levied. In light of CDTFA’s opinion, businesses that pay both state sales tax and SCMWID assessments on sales are advised to collect sales tax on the assessment revenue.

Bonds shall not be issued.

E. Overdue Charges and Interest
The SCMWID shall reimburse the County or third-party collection agency for any costs associated with collecting unpaid assessments.

1. Original Delinquency
Any winery that fails to remit any assessment imposed by this Plan within the time required shall pay an overdue charge of ten percent (10%) of the amount of the assessment in addition to the assessment.

2. Continued Delinquency
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Any winery that fails to remit any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay a second delinquency overdue charge of ten percent (10%) of the assessment in addition to the assessment and the ten percent (10%) overdue charge first imposed.

3. Fraud
If the County or third-party collection agency determines that the nonpayment of any remittance due under this article is due to fraud, an overdue charge of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the overdue charges stated in subsections one (1) and two (2) of this section.

4. Interest
In addition to the overdue charges imposed, any winery who fails to remit any assessment imposed by this section shall pay interest at the rate of one-quarter of one percent (0.25%) per month or fraction thereof on the amount of the assessment, exclusive of overdue charges, from the date on which the remittance first became delinquent until paid.

F. Time and Manner for Collecting Assessments
The SCMWID assessment will be implemented beginning November 1, 2025 or as soon as possible thereafter, and ending five (5) years from its start date. The County or a third-party collection agency will be responsible for collecting the assessment on a quarterly basis (including any delinquencies, overdue charges and interest) from each winery located in each jurisdiction within the SCMWID. The County or a third-party collection agency shall take all reasonable efforts to collect the assessments from each winery. The County or a third-party collection agency shall forward the assessments collected to the Owners’ Association.
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V. GOVERNANCE
A. Owners’ Association
The Board of Supervisors, through adoption of this Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the SCMWID as defined in Streets and Highways Code §36612. The Board of Supervisors has determined that SCMWA shall serve as the Owners’ Association for the SCMWID.

B. Brown Act and California Public Records Act Compliance An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the SCMWA Board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act.

Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act.

C. Annual Report
The SCMWA shall present an annual report at the end of each year of operation to the Board of Supervisors pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include:
• Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district.
• The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
• The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
• The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
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APPENDIX 1 – LAW
CURRENT THROUGH ALL LEGISLATION OF THE 2024 REGULAR AND SPECIAL SESSIONS

STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1. General Provisions
ARTICLE 1. Declarations
36600. Citation of part

This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.” 36601. Legislative findings and declarations; Legislative guidance

The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed. Therefore, for special benefits to exist as a separate and distinct category from general benefits, the incidental or collateral effects of those special benefits are inherently part of those 253
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special benefits. The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits. (3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits. Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined.
36602. Purpose of part

The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act.

This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. 36603. Preemption of authority or charter city to adopt ordinances levying assessments

Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)).
36603.5. Part prevails over conflicting provisions

Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.
36604. Severability

This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.

ARTICLE 2. Definitions
36606. “Activities”

“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district. 36606.5. “Assessment”

“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.
36607. “Business”

“Business” means all types of businesses and includes financial institutions and professions. 254
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36608. “City”

“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California. 36609. “City council”

“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4. “Clerk”

“Clerk” means the clerk of the legislative body.
36609.5. “General benefit”

“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.
36610. “Improvement”

“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.
36611. “Management district plan”; “Plan”

“Management district plan” or “plan” means a proposal as defined in Section 36622. 36612. “Owners’ association”

“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), for all records relating to activities of the district. 36614. “Property”

“Property” means real property situated within a district. 255
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36614.5. “Property and business improvement district”; “District”

“Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.
36614.6. “Property-based assessment”

“Property-based assessment” means any assessment made pursuant to this part upon real property. 36614.7. “Property-based district”

“Property-based district” means any district in which a city levies a property-based assessment. 36615. “Property owner”; “Business owner”; “Owner”

“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient. 36615.5. “Special benefit”

(a) “Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value. (b) “Special benefit” also includes, for purposes of a property-based district, a particular and distinct benefit provided directly to each assessed parcel within the district. Merely because parcels throughout an assessment district share the same special benefits does not make the benefits general. 36616. “Tenant”

“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.

ARTICLE 3. Prior Law
36617. Alternate method of financing certain improvements and activities; Effect on other provisions

This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.

CHAPTER 2. Establishment
36620. Establishment of property and business improvement district

A property and business improvement district may be established as provided in this chapter. 36620.5. Requirement of consent of city council

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A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city. 36621. Initiation of proceedings; Petition of property or business owners in proposed district

(a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623.
36622. Contents of management district plan

The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries.
(b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the estimated cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities 257
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and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision.
(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against their property or business. The plan also shall state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years.

Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k)
(1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a propertybased district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel.
(3) In a property-based district, properties throughout the district may share the same special benefits. In a district with boundaries that define which parcels are to receive improvements, maintenance, or activities over and above those services provided by the city, the improvements, maintenance, or activities themselves may constitute a special benefit. The city may impose assessments that are less than the proportional special benefit conferred, but shall not impose assessments that exceed the reasonable costs of the proportional special benefit conferred. Because one or more parcels pay less than the special benefit conferred does not necessarily mean that other parcels are assessed more than the reasonable cost of their special benefit. (l) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan.
(m) Any other item or matter required to be incorporated therein by the city council. 36623. Procedure to levy assessment

(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be 258
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mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest.

If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners. 36624. Changes to proposed assessments

At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625. Resolution of formation

(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district.
(4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district.

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district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit.
(8) In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.
36627. Notice and assessment diagram

Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part. 36628. Establishment of separate benefit zones within district; Categories of businesses

The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone. 36628.5. Assessments on businesses or property owners

The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any propertybased assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622. 36629. Provisions and procedures applicable to benefit zones and business categories

All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district. 36630. Expiration of district; Creation of new district

If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.

CHAPTER 3. Assessments
36631. Time and manner of collection of assessments; Delinquent payments

The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.
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36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property

(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part. 36633. Time for contesting validity of assessment

The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36625. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.
36634. Service contracts authorized to establish levels of city services

The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635. Request to modify management district plan

The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention

(a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.
36637. Reflection of modification in notices recorded and maps

Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627. 36638. Assessment as government imposed fee on Civ C § 1770 transaction [Operative July 1, 2024]

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(a) A business assessment pursuant to this part is a fee imposed by a government on the transaction for purposes of paragraph (29) of subdivision (a) of Section 1770 of the Civil Code. (b) This section shall become operative on July 1, 2024.

CHAPTER 3.5. Financing
36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments

(a) The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.

CHAPTER 4. Governance
36650. Report by owners’ association; Approval or modification by city council

(a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.

The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of 262
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assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district.
36651. Designation of owners’ association to provide improvements, maintenance, and activities

The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.

CHAPTER 5. Renewal
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit

(a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.

CHAPTER 6. Disestablishment
36670. Circumstances permitting disestablishment of district; Procedure

(a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment.
(2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment.
(b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.
36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district

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(a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.
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APPENDIX 2 – ASSESSED WINERIES*
Owner Name Business Name Address City, State,
Zip
Doon To Earth 10 Parade St., Suite
B
Aptos CA
95003
Armitage Wines 105 C Post Office
Dr
Aptos CA
95003
Salamandre Wine Cellars
L-Pship
108 Don Carlos Dr Aptos CA
95003
Saison Winery (Formerly
Partage)
11025 Alba Rd Ben Lomond
CA 95005
Sandar And Hem Wines 111 Corte Madera
Rd
Portola Valley
CA 94028
Kissed By An Angel
Wines
1210 Mount
Hermon Road
Scotts Valley
CA 95066
Left Bend Winery 12536 Spring
Blossom Ct.

Saratoga CA
95070
Maison Areion 140 Sunrise Drive Woodside CA
94062
Roudon-Smith Winery 14572 Big Basin
Way, Suite A
Saratoga CA
95070
Regan Vineyards &
Winery
1610 Green Valley
Rd
Corralitos CA
95076
La Vida Bella Vineyard 1624 Chardonnay
Ridge Rd
Aptos CA
95003
Ridge Vineyards 17100 Montebello
Rd
Cupertino CA
95014
Kings Mountain
Vineyards
187 Kings
Mountain Road
Woodside CA
94062
Lexington Wine
Co./Thomas Fogarty
Winery & Vineyards
19501 Skyline Blvd Woodside CA
94062
Mccarthy Family Estate
Vineyards
20108 Foster Road Los Gatos CA
95033
Birichino 204 Church Street Santa Cruz CA
95060
Gali Vineyards 21 W. Main St. Los Gatos CA
95030
Sante Arcangeli Family
Wines
216-A Stage Road Pescadero CA
94060
Domaine Eden 23000 Congress
Springs Rd
Saratoga CA
95070
Silver Mountain Vineyards 269 Silver
Mountain Dr
Los Gatos CA
95033
Santa Cruz Mountain
Vineyard
334 Ingalls St Suite
A
Santa Cruz CA
95060
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Owner Name Business Name Address City, State,
Zip
Equinox 334 Ingalls St, Unit
C
Santa Cruz CA
95060
Aptos Vineyard 400 Belle Monti
Avenue
Aptos CA
95003
Alfaro Family Vineyards
& Winery
420 Hames Road Corralitos CA
95076
Wargin Wines 5015 Soquel Dr Soquel CA
95073
Clos De La Tech 535 Eastview Way Woodside CA
94062
Windy Oaks Estate
Vineyards & Winery
550 Hazel Dell Rd Corralitos CA
95076
Neely Wine 555 Portola Road Portola Valley
CA 94028
Ferrari Ranch Wines 65 Magnifico Vita
Lane
Corralitos CA
95076
Charmant Vineyards 800 Larsen Road Aptos CA
95003
3P Winery L.L.C. 3P Winery 3490 Soquel San
Jose Rd
Soquel CA
95073
Alamitos Winery 23505 Alamitos Rd San Jose CA
95120
Amy Dilly Preaseau and
Jacques Noel Preaseau
Valley Vista Vineyards 110 Valley View
Rd
Watsonville
CA 95076
Anatum Winery Broaddus, Christopher
James
371 Falcon View
Terr
Watsonville
CA 95076
Aptos Creek Vineyard Aptos Creek Vineyard 520 Nisene
Meadows Ct
Aptos CA
95003
Aptos Vineyard Aptos Vineyard, LLC 105 Post Office Dr
Ste C
Aptos CA
95003-3953
Aptos Vineyard, LLC Aptos Vineyard 369 Silver
Mountain Dr
Los Gatos CA
95033
Armitage Wines Corp. Armitage Wines Corp 705 Canham Rd Scotts Valley CA 95066
Arpent, LLC Birichino 825 Walnut Ave Santa Cruz CA
95060
Bargetto's Santa Cruz
Winery, Inc.

Bargetto 3535 N Main St Soquel CA
95073
Beauregard Vineyards
LLC/Partage Wine Co. LLC
Beauregard
Vineyards/Partage Wine
Co. LLC
10 Pine Flat Rd Santa Cruz CA
95060
Beauregard, Andre Jacques West Cliff Wines 704 Soquel Ave Ste B
Santa Cruz CA
95062-2333
Bhoomanchi Vineyards LLC Bhoomanchi Vineyards 369 Silver Mountain Dr
Los Gatos CA
95033
266
Item 8 I.

SCMWID Management District Plan 30
May 20, 2025
Owner Name Business Name Address City, State,
Zip
Big Basin Vineyards Big Basin Vineyards LLC 525 Pacific Ave Santa Cruz CA 95060-7175
Big Basin Vineyards LLC Big Basin Vineyards 830 Memory Ln Boulder Creek CA
95006
Bottle Jack Wines Ritchey Iv, John Lloyd 328 Ingalls St D Santa Cruz CA 95060-5882
Brooks, Thomas Edwin Tom Brooks Winery 90 Country Estates Dr
Santa Cruz CA
95060-9776
Brosseau Wines LLC First Growth Wine
Company
22090 Mt Eden
Road
Saratoga CA
95070
Bruce Cantz Four Gates Winery 503 Happy Valley
Rd
Santa Cruz CA
95065
Charmant 800 Larsen Road Aptos CA
95003
Christopher Broaddus Anatum 375 Falcon View
Ter
Watsonville
CA 95076
Clos De La Tech LLC Clos De La Tech 1000 Fern Hollow
Rd
La Honda CA
94020
Clos Tita Winery Estrada, David S 4 Kendall Ln Santa Cruz CA 95066
Coastal Range Vineyards Coastal Range Vineyards,
Inc.
420 Lost Pear Way
A 24X36 Structure
Santa Cruz CA
95065-9725
Coastal Range Vineyards,
Inc.

Inversion Wines 75 Mt Hermon Rd Scotts Valley,
CA 95066
Corralitos Ridge Vineyards
Corporation/Private Vine
Wines, LLC
Corralitios Ridge
Winery
815 Almar Ave
Unit H
Santa Cruz CA
95060
Craig, Anthony Sonnet Wine Cellars 369 Silver
Mountain Dr
Los Gatos CA
95033
David Bruce Winery, Inc. David Bruce Winery 21439 Bear Creek Rd
Los Gatos CA
95033
David Lee Moulton Burrell Schoolvineyards 24060 Summit Rd Los Gatos CA 95033
Dee Vine Wines Dee Vine Wines 34 Big Tree Wy Woodside CA 94062-3775
Devincenzi Cellars LLC/A
& A Los Gatos Winery LLC
24572 Hutchinson
Rd
Los Gatos CA
95033
Donald E. Naumann Naumann Vineyards 16505 Montebello
Rd
Cupertino CA
95014
Dorsa Management
Company, LLC
La Rusticana D'Orsa 15680 Kennedy Rd Los Gatos CA
95032
Equinox Jackson, Barry Cook 427 Swift St # C Santa Cruz CA 95062
Everett Family Farm LLC Everett Family Farm, LLC 2119 Old San Jose Rd
Soquel CA
95073
267
Item 8 I.

SCMWID Management District Plan 31
May 20, 2025
Owner Name Business Name Address City, State,
Zip
Farm Day Family Winery,
LLC
Farm Day Family Winery,
LLC
18157 Wagner Rd Los Gatos CA
95032-6619
Fernwood Cellars, Inc. Fernwood Cellars, Inc. 7137 Redwood Retreat Rd
Gilroy CA
95020
Florez Wines J. G. Jelks Wines L.L.C. 2487 Freedom
Blvd Unit 3
Watsonville
CA 95076-
1049
Full Circle Wines LLC Full Circle Wines 7090 Mcadams Ln Felton CA 95018-9454
Gali Vineyards, Inc. Gali Vineyards 362 Old Smith Rd Watsonville CA 95076
Garage Winemaker LLC Baccarossa 19620 Redberry Dr Los Gatos CA 95303
Garrod Trust Cooper-Garrod Vineyards 22645 Garrod Rd Saratoga CA 95070
Ghost Oaks Winery Inc. El Vaquero Winery 18 Hangar Way
Unit C
Watsonville
CA 95076
Ghost Oaks Winery, Inc. El Vaquero Winery 2901 Freedom
Blvd
Corralitos CA
95076
Gliessman, Stephen Richard Condors Hope Ranch 144 De La Costa Ave
Santa Cruz CA
95060
Green Earth Zayante Green Earth Liangs Inc 420 Old Mount Rd Felton CA 95018
Griffin Hill Vineyards, LLC 18035 Skyline Blvd Los Gatos CA 95033
Hallcrest Vineyards, Inc. Hallcrest Vineyards 379 Felton Empire Rd
Felton CA
95018
Hartmann, Robert Frank Las Nietas Vineyard 335 Via Concha Aptos CA 95003-5604
Heart O The Mountain Heart O The Mountain
LLC
705 Canham Rd Scotts Valley
CA 95066-
2729
Henry M. And Linda J.

Mchenry
Mchenry Vineyard 6821 Bonny Doon
Rd
Santa Cruz CA
95060
Hicks, Alan Ainsley Ainsley Family Vineyard 2805 Pleasant Valley Rd
Aptos CA
95003-9785
Hillcrest Winery Rexford Winery 429 Ingalls St Santa Cruz CA 95060
Hoffacker, Bernhard Joseph Portola Hills Vineyard 801 La Honda Rd Woodside CA 94062-4808
Hovis, Linda Closs Linda Vista Wines 118 Via Novella Aptos CA 95003
Hwy 9 Winery, LLC Hwy 9 Winery 120 Gail Dr Felton CA
95018-9631
268
Item 8 I.

SCMWID Management District Plan 32
May 20, 2025
Owner Name Business Name Address City, State,
Zip
Integrity Wines, Lp, Integrity
Wines, LLC, Gp/Reya
Cellars, LLC
12 Hands Winery/Reya
Cellars
135 Aviation Way
Ste
16 Watsonville
CA 95062
J. Edward Muns Muns Vineyard 25600 Loma Prieta
Ave
Los Gatos CA
95033
James & Margaret A. Alberti Alberti Vineyard 106 Richardson Rd Santa Cruz CA 95065
James D. Ross And Jenny N.

Ross
Rosscienda Vineyard 1172 Redwood
Heights Rd Bldg
Aptos CA
95003
James, Kathleen Ann Charles Usher 24110 Congress
Springs Rd
Saratoga CA
95070-9706
Jeffrey M. Barranti J.M. Barranti Vineyards 24842 Skyland Rd Los Gatos CA 95033
John D. Benedetti Sante Arcangeli Family
Wines
23 Blake Ave Corralitos CA
95076
John Lloyd Ritchey Iv Bottle Jack Cellars 1088 La Madrona Dr
Santa Cruz CA
95060
Kathryn Kennedy Winery Kathryn Kennedy Winery 13180 Pierce Rd Saratoga CA 95070
Kennedy Hill Associates
LLC
Kennedy Hill Associates
LLC
15050 Kennedy Rd Los Gatos CA
95032
King, David James People's Beverage
Company, The
1214 Fair Ave Santa Cruz CA
95060-5838
Kingston Family Vineyards
LLC
Kingston Family
Vineyards
520 La Mesa Dr Portola Valley
CA 94028
Kissed By An Angel Wines,
LLC
Kissed By An Angel
Wines
2535 7Th Ave Unit
4 Santa Cruz CA
95062
Kissed By An Angel Wines,
LLC
Kissed By An Angel
Wines, LLC
75 Mt Hermon Rd Scotts Valley,
CA 95066
La Barbera Family Winery
LLC
Labarbera Family Winery 6591 Woodcliff Ct San Jose CA
95120-4551
La Madrona Vineyard And
Winery
1851 La Madrona
Dr
Santa Cruz CA
95060
La Magnifico Vita, LLC Ferrari Ranch Wines 65 Magnifico Vita Ln
Watsonville
CA 95076-
0385
La Vida Bella Vineyard, LLC La Vida Bella Vineyard 44 Oak Tree Ln Aptos CA 95003
Lago Lomita Vineyards, LLC Lago Lomita Vineyards,
LLC
25200 Loma Prieta
Ave
Los Gatos CA
95033
Lester Company, LLC Lester Estate Wines 1950 Pleasant
Valley Rd
Aptos CA
95003
Lexington Hills LLC Lexington Hills 19802 Old Santa
Cruz
Hwy
Los Gatos CA
95033
269
Item 8 I.

SCMWID Management District Plan 33
May 20, 2025
Owner Name Business Name Address City, State,
Zip
Little Ridge Vineyards, LLC Little Ridge Vineyard 153 Las Colinas Rd Corralitos CA 95076
Lokteff Winery & Vineyards,
LLC
Wrights Station Vineyard
& Winery
24250 Loma Prieta
Ave
Los Gatos CA
95033
Loma Prieta Winery L.L.C. Loma Prieta Winery 26985 Loma Prieta Way
Los Gatos CA
95033
Los Altos Vineyards, LLC. Byington 21850 Bear Creek
Rd
Los Gatos CA
95030
Lost Cellars, LLC Unwritten Wines 70 Tripp Ct Woodside CA 94062-4232
M E V Corporation Mount Eden Vineyards 23000 Congress
Springs Rd
Saratoga CA
95070
M.E.V. Corporation Mount Eden Vineyards 22020 Mount
Eden Rd
Saratoga CA
95070
Madson Wines LLC Madson Wines 328 Ingalls St Ste
G
Santa Cruz CA
95060
Margins Wine Cubby Margins Wine LLC 402 Ingalls St Ste
18 Santa Cruz CA
95060-5800
Margins Wine LLC Margins Wine 2487 Freedom
Blvd
Unit 3
Watsonville
CA 95076
Martella LLC/Thomas
Fogarty Winery, LLC
Martella Wines/Thomas
Fogarty Winery
5937 Alpine Rd Portola
Valley CA
94028
Martin Ranch Winery, Inc. Martin Ranch 6675 Redwood
Retreat Rd
Gilroy CA
95020
Mayo, Keegan Keoni Mayo Cellars 1008 Cayuga St Santa Cruz CA 95062-2422
Michael & Lynne
Muccigrosso
Muccigrosso
Vineyards
21450 Bear Creek
Rd
Los Gatos CA
95033
Michael V. & Lois E. Sones Sones Cellars 334 B Ingalls St Ste B
Santa Cruz CA
95060
Mindego Ridge Winery 9645 Alpine Rd La Honda CA
94020
Mja Vineyards LLC Mja Vineyard 328 Ingalls St Santa Cruz CA 95060
Monte Roble Vineyards
LLC/Silver Mountain
Vineyards
Left Bend/Silver
Mountain Vineyard
369 Silver
Mountain
Dr
Los Gatos CA
95033
Nazario Ranch Vineyards
LLC
Nazario Ranch Vineyards 22484 Eden Valley
Ct
Saratoga CA
95070-9757
Neely Wines 575 Portola Rd Portola Valley
CA 94028
270
Item 8 I.

SCMWID Management District Plan 34
May 20, 2025
Owner Name Business Name Address City, State,
Zip
Nicholson Vineyards
Winery,
Inc.

Nicholson Vineyards
Winery,
Inc.
2800 Pleasant
Valley
Rd
Aptos CA
95003
Nicolas Vonderheyden (Gp)
-
Chaine D'Or Vineyards,
Limited
Partnership
Chaine D'Or Vineyards 140 Sunrise Dr Woodside CA
94062
Old Oak Vineyard, Inc. House Family Winery 13330 Old Oak Way
Saratoga CA
95070
Overshine Wine Co Overshine Cellars, LLC 103 Stockton Ave Capitola CA 95010
P &Amp; M Staiger Staiger, Marjorie 1300 Hopkins
Gulch Rd
Boulder Creek
CA 95006
Pacific Rim Marketing Pacific Rim Marketing Inc 1306 Via Tornasol Aptos CA 95003-5654
Partage Wine Co. LLC Partage Wine 346 N Santa Cruz
Ave
Los Gatos CA
95030-7243
Patland Estate Vineyards
LLC
Patland Estate Vineyards 110 Madera Ct Los Gatos CA
95032-5720
Patrick James And Molly
Claire Surgalski
16252 Niles Rd Los Gatos CA
95033
Pelio Vineyard, LLC Pelio Vineyard 14573 Big Basin
Way
Saratoga CA
95070
Peter Serventi Serventi Ranch 65 Litchfield Ln Watsonville CA 95076
Peter Thibodeau Thibodeau Vineyard 431 Coyote Ridge
Rd
Aptos CA
95003
Phil & Peggy Crews Pelican Ranch
Winery
2364 Bean Creek
Rd Dr
Scotts Valley
CA 95066
Picchetti Winery Inc Picchetti Winery Inc 13100 Montebello Rd
Cupertino CA
95014
Pleasant Valley Vineyards Handley, Cathy Lynn 600 Pleasant Vly Rd
Aptos CA
95003
Private Vine Wines Private Vine Wines, LLC 815 Almar Ave Unit H
Santa Cruz CA
95060-5873
Prolific Vines Vineyard LLC Prolific Vines 165 Happy Acres Rd
Los Gatos CA
95032-5704
R And W Pursuits LLC R & W Vineyards 15060 Montebello
Rd
Cupertino CA
95014
Rachael Henrichsen 1120 17Th Ave
Bldg
Rear
Santa Cruz CA
95062
Radonich Bros Vineyards
LLC
Radonich Bros Vineyards
LLC
25205 Apple Hill
Rd
Los Gatos CA
95033-9719
271
Item 8 I.

SCMWID Management District Plan 35
May 20, 2025
Owner Name Business Name Address City, State,
Zip
Raffaelli Vineyards, LLC Raffaelli Vineyards 3357 Chardonnay Rd
Soquel CA
95073
Randal Lee West And Larae
West
Freedom Wineworks 2321 Freedom
Blvd
Watsonville
CA 95076
Ratka, Michael Patrick Split Barrel Cider 285 Allen Rd Woodside CA 94062-4401
Redwood Ridge Estate LLC Redwood Ridge Estate 21435 Summit Rd Los Gatos CA 95033-8400
Regan Vineyards Winery,
LLC
Regan Vineyards Winery,
LLC
1772 Seascape
Blvd
Aptos CA
95003-5864
Rhys Vineyards, LLC Rhys Vineyards 11715 Skyline Blvd Los Gatos CA 95033
Richard & Mary Kay Alfaro Alfaro Family Farm
& Vineyards
496 Hames Rd Corralitos CA
95076
Ridge Vineyards, Inc. Ridge Vineyards, Inc. 18100 Montebello Rd
Cupertino CA
95014
Robert J. Goldspink Granite Ridge
Vineyard
895 Granite Ridge
Dr
Santa Cruz CA
95065
Robert's Ranch Vineyards,
Inc.

Robert’s Ranch Vineyards,
Inc.
875 Roberts Rd Ben Lomond
CA 95005
Roy S. Fellom And Roy E.

Fellom
Fellom Ranch
Vineyards
17075 Montebello
Rd
Cupertino CA
95014
Russian Ridge Winery LLC Russian Ridge Winery 20245 Skyline Blvd Woodside CA 94062-3729
Saison 346 N Santa Cruz
Ave
Los Gatos CA
95030
Santa Cruz Cider Company Santa Cruz Cider
Company LLC
65 Hanger Wy C Watsonville
CA 95076-
2476
Santa Cruz Mountain
Vineyard LLC
Santa Cruz
Mountain Vineyard
334 A Ingalls St Santa Cruz CA
95060
Santa Cruz Vineyards Santa Cruz Vineyards LPship2300 Jarvis Rd Santa Cruz CA 95065
Sante Arcangeli Family
Wines
Sante Arcangeli Family
Wines LLC
154 Aptos Village
Way C1
Aptos CA
95003
Sante Arcangeli Family
Wines LLC
Sante Arcangeli Family
Wines
79 North St Pescadero CA
94060
Savannah-Chanelle
Vineyards, Inc.
23600 Congress
Springs Rd
Saratoga CA
95070
Schroeder Schroeder &Amp;
Deits LLC
Los Gatos Wines 19135 Overlook
Rd
Los Gatos CA
95030-4115
Scotts Valley Winery, LLC Scotts Valley Winery 2364 Bean Creek Rd
Scotts Valley
CA 95066
Silver Mountain Vineyards Silver Mountain Vineyards 328 Ingalls St D Santa Cruz CA 95060-5882
272
Item 8 I.

SCMWID Management District Plan 36
May 20, 2025
Owner Name Business Name Address City, State,
Zip
Sonnet 69 Silver Mountain
Dr
Los Gatos CA
95033
Soquel Vineyards 8063 Glen Haven
Rd
Soquel CA
95073
Spanish Ranch Winery, LLC Spanish Ranch
Winery
24000 Spanish
Ranch Rd
Los Gatos CA
95033
Steelhead Engineering, Inc. 1850 Day Valley
Rd
Aptos CA
95003
Stockwell Cellars, Inc. Stockwell Cellars 1100 Fair Ave Bldg A
Santa Cruz CA
95060
Storrs Winery & Vineyard,
Ltd.
1560 Pleasant
Valley Rd
Aptos CA
95003
Storrs Winery & Vineyard,
Ltd.

Storrs Winery 303 Potrero St Ste
35,8
Santa Cruz CA
95060
Strategy Partners
International
Windy Oaks Estate 380 Sweetwood
Way
Corralitos CA
95076
Sunridge Wines LLC Sunridge Wines LLC 433 Sunridge Dr Scotts Valley CA 95066-
4938
Tanuki Cider Honda, Robert Satoshi 334 Ingalls St # B Santa Cruz CA 95060-5880
Testarossa Vineyards, LLC Testarossa
Vineyards
300 College Ave Los Gatos CA
95030
The Mountain Winery 14831 Pierce Road Saratoga
The Ragavan Family 2000
Living Trust
Valencia Wineries 45 Valencia Ct Portola Valley
CA 94028-
7923
The Schaadt Wine Group,
LLC
Regale Winery And
Vineyards
24040 Summit Rd Los Gatos CA
95033
Tmr Cellars LLC Tmr Cellars, LLC 416 Bahr Dr Ben Lomond CA 95005-
9643
Tomaino, Kathryn,
Vidovich,
John, Michael & Mary Jane
Vidovich Vineyards 18101 Montebello
Rd
Cupertino CA
95014
Us Grant 2300 Jarvis Rd Santa Cruz CA
95065
Walsh Wine LLC Ser 13 Mesa Way Watsonville
CA 95076-
9656
Walsh Wine LLC Ser 427 C Swift St Santa Cruz CA
95060
Wargin Wines Wargin Wines LLC 5015 Soquel Dr Soquel CA
95073
273
Item 8 I.

SCMWID Management District Plan 37
May 20, 2025
Owner Name Business Name Address City, State,
Zip
Wolff And Father Wines Wolff, Leonard Frank 514 Calabasas Rd Watsonville CA 95076-
0412
Woodside Farm Vineyard
LLC
Woodside Farm Vineyard 1 Vintage Ct Woodside CA
94062
Workman, Michael Lee Weener'S Leap Cellars 14918 Three Oaks Ct
Saratoga CA
95070-5500
*The list was developed with the most reliable information provided; however, the list may contain discrepancies. This list shall include any future to-be opened businesses. Any business that may have been missed in this list, but is still within the boundaries of the SCMWID, shall also be subject to assessment.
274
Item 8 I.

Capitola City Council
Agenda Report
Meeting: August 28, 2025
From: Public Works Department
Subject: Community Center Patio Improvements Contract Award Recommended Action: 1) Authorize the City Manager to execute the construction contract for the Community Center Patio Improvements Project with SSB Contracting, Inc. in the amount of $1,055,000; and 2) Authorize the Public Works Department to issue notices to proceed upon final contract execution.

Background: In June 2025, the City Council approved construction plans for the Treasure Cove Playground, public restroom renovation, and Community Center patio improvements, and directed staff to advertise the projects for competitive bids. Funding is provided through a combination of local funds, community fundraising, and the City’s recently awarded $3.2 million Community Development Block Grant (CDBG), which fully covers the scopes of the playground, restroom, and patio improvements.

The Treasure Cove Playground will replace the outdated 1999-era facility with a universally accessible, ocean-themed play space developed through extensive community input. The Community Center Patio Improvements will replace deteriorated hardscape and create a functional, accessible outdoor gathering area featuring decorative concrete paving, lighting, landscaping, irrigation, and site furnishings.

Together, these projects build on the ongoing Community Center Renovation Project, currently under construction by SSB Contracting, Inc., and fulfill the City’s commitments under the Long-Term Use Agreement with the Soquel Union Elementary School District for substantial upgrades at Jade Street Park.

Discussion: The City advertised the Community Center Patio Improvements Project for construction bids on July 3, 2025. A mandatory pre-bid conference and site walk were held on July 15, 2025, with nine prime contractors in attendance, all eligible to submit bids. Bids were opened on July 31, 2025, and two bids were received. After review, SSB Contracting, Inc. was identified as the lowest responsive and responsible bidder.

The Treasure Cove Playground Project was advertised for construction bids on July 21, 2025. A mandatory pre-bid conference and site walk were held on August 5, 2025, and bids were opened on August 21, 2025. The City received four bids for the playground project, which are under review. A recommended contract for the playground will be considered at the September 11, 2025, City Council meeting.

The Jade Street Park Restroom Renovation Project will be out to bid shortly, with an award recommendation expected in early October 2025.

Construction for all three projects is anticipated to begin in fall 2025. Construction will be sequenced to minimize conflicts with ongoing work and maintain public access. Substantial completion is expected by summer 2026.

Fiscal Impact: The four projects at the Jade Street site are funded by a combination of local General Fund allocations, Friends of Santa Cruz County Parks fundraising, and 2025 CDBG funds. Funding sources are summarized below.
275
Item 8 J.

Total Jade Street Site Project Budget Summary
Funding Source Revenue Expenditure
General Fund – Community Center $1,800,000 $1,797,000
CNRA Grant – Community Center $1,000,000 $1,000,000
General Fund – Playground $475,000 $421,000
Friends Fundraising – Playground $965,000 $965,000
CDBG 2024 (Community Center) $3,365,000 $3,365,000
CDBG 2025 (Playground, Restroom, Patio) $3,200,000 $3,172,000 Total $10,805,000 $10,720,000
Category Amount Funding Source(s)
Community Center
Pre-project Modifications $34,000 General Fund
BLRA Design $580,000 General Fund
Cummings Construction Management (Pre-CDBG) $300,000 General Fund PG&E Service Upgrade $45,000 General Fund
SSB Construction Contract $4,726,000 CNRA ($1,000,000), CDBG 2024 ($3,365,000),
General Fund ($361,000)
Construction Contingency $477,000 General Fund
Playground
Verde Design $194,000 General Fund
Verde Construction Support $99,000 General Fund
Construction (with Contingencies) $2,340,000 Fundraising ($965,000), CDBG 2025 ($1,375,000)
Restroom
BLRA Design and Construction Support $58,000 General Fund Construction (with Contingencies) $500,000 CDBG 2025
Patio
BLRA Design and Construction Support $70,000 General Fund Construction $1,055,000 CDBG 2025
Construction Management
Cummings Construction Management (New Phase) $242,000 CDBG 2025 Total $10,720,000
276
Item 8 J.

Environmental Determination: The projects are categorically excluded under the National Environmental Policy Act (NEPA) pursuant to 24 CFR 58.35(a) and exempt under the California Environmental Quality Act (CEQA) Section 15301 for existing facilities. The improvements will remain in the same use and will not result in significant environmental impacts.

Attachments:

1. Construction Contract – Community Center Patio Improvements Report Prepared By: Jessica Kahn, Public Works Director Reviewed By: Julia Gautho, City Clerk; Jim Malberg, Finance Director; Samantha Zutler, City Attorney Approved By: Jamie Goldstein, City Manager
277
Item 8 J.

Agreement 00 5200 - 1 Community Center Patio Project
DOCUMENT 00 5200

AGREEMENT
THIS AGREEMENT, dated this 28th day of August, 2025, by and between SSB Contracting, Inc. whose place of business is located at 1161 Terven Avenue, Salinas, CA (Contractor), and CITY OF CAPITOLA, a political subdivision of the State of California (Owner), acting under and by virtue of the authority vested in Owner by the laws of the State of California.

COMMUNITY CENTER PATIO PROJECT
at 4400 Jade Street, Capitola, CA 95010
NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, Contractor and Owner agree as follows:

ARTICLE 1 SCOPE OF WORK OF THE CONTRACT

1.01 Work of the Contract
A. Contractor shall complete all Work specified in the Contract Documents, in accordance with the Specifications, Drawings, and all other terms and conditions of the Contract Documents (Work).

1.02 Price for Completion of the Work
A. Owner shall pay Contractor the following Contract Sum of One Million Fifty Five Thousand Dollars ($1,055,000) for completion of Work in accordance with Contract Documents as set forth in Contractor’s Bid, attached hereto.

B. The Contract Sum is all inclusive and includes all Work; all federal, state, and local taxes on materials and equipment, and labor furnished by Contractor, its subcontractors, subconsultants, architects, engineers, and" vendors or otherwise arising out of Contractor's performance of the Work, including any increases in any such taxes during the term of this Agreement; and any duties, fees, and royalties imposed with respect to any materials and equipment, labor or services. The taxes covered hereby include (but are not limited' to) occupational, sales, use, excise, unemployment, FICA, and income taxes, customs, duties, and any and all other taxes on any item or service that is part of the Work, whether such taxes are normally included in the price of such item or service or are normally stated separately. Notwithstanding the foregoing, each party shall bear such state or local inventory, real property, personal property or fixtures taxes as may be properly assessed against it by applicable taxing authorities.

COMMENCEMENT AND COMPLETION OF WORK

1.03 Commencement of Work
A. Contractor shall commence Work on the date established in the Notice to Proceed.

B. Owner reserves the right to modify or alter the Commencement Date.

1.04 Completion of Work
A. Contractor shall achieve Substantial Completion of the entire Work within 70 Working Days from the Commencement Date.

B. Contractor shall achieve Final Completion of the entire Work within 90 Working Days from the Commencement Date.
278
Item 8 J.

Agreement 00 5200 - 2 Community Center Patio Project
C. Working days shall be determined in accordance with the General Conditions. Days may be staggered and not charged when work cannot proceed due to coordination, access limitations, or other constraints as determined by the Owner’s Project Manager.

ARTICLE 2 PROJECT REPRESENTATIVES

2.01 Owner’s Project Manager
A. Owner has designated the Public Works Director as its Project Manager to act as Owner’s Representative in all matters relating to the Contract Documents. If Project Manager is an employee of Owner, Project Manager is the beneficiary of all Contractor obligations to Owner including, without limitation, all releases and indemnities.

B. Project Manager shall have final authority over all matters pertaining to the Contract Documents and shall have sole authority to modify the Contract Documents on behalf of Owner, to accept work, and to make decisions or actions binding on Owner, and shall have sole signature authority on behalf of Owner.

C. Owner may assign all or part of the Project Manager’s rights, responsibilities and duties to a Construction Manager, or other Owner Representative.

2.02 Contractor’s Project Manager and Other Key Personnel A. Contractor has designated [________] as its Project Manager to act as Contractor’s Representative in all matters relating to the Contract Documents.

B. Contractor has designated the following other Key Personnel for the Project:

Name Position
ARTICLE 3 LIQUIDATED DAMAGES FOR DELAY IN COMPLETION OF WORK

3.01 Liquidated Damage Amounts
A. As liquidated damages for delay Contractor shall pay Owner Five Thousand dollars ($5,000.00) for each Day that expires after the time specified herein for Contractor to achieve Substantial Completion of the entire Work, until achieved.

B. As liquidated damages for delay Contractor shall pay Owner Two Thousand Five Hundred dollars ($2,500.00) for each Day that expires after the time specified herein for Contractor to achieve Final Completion of the entire Work, until achieved.

3.02 Scope of Liquidated Damages
A. Measures of liquidated damages shall apply cumulatively.

B. Limitations and stipulations regarding liquidated damages are set forth in Document 00 7200 (General Conditions).

ARTICLE 4 CONTRACT DOCUMENTS

4.01 Contract Documents consist of the following documents, including all changes, Addenda, and Modifications thereto:

Document 00 5100 Notice of Award
Document 00 5200 Agreement
Document 00 5500 Notice to Proceed
Document 00 6113.13 Construction Performance Bond
Document 00 6113.16 Construction Labor and Material Payment Bond 279
Item 8 J.

Agreement 00 5200 - 3 Community Center Patio Project
Document 00 6290 Escrow Agreement for Security Deposits Document 00 6325 Substitution Request Form
Document 00 6530 Release of Claims
Document 00 6536 Guaranty
Document 00 7200 General Conditions
Document 00 7301 Supplemental General Conditions
Document 00 7316 Supplemental Conditions – Insurance and Indemnification
Document 00 7320 COVID Requirements
Document 00 7324 In-Use Off-Road Diesel-Fueled Fleets Regulation Document 00 7380 Apprenticeship Program
Document 00 9113 Addenda 1-2
Specifications Divisions 1 through 33
Drawings, Table, Schedules listed in Document 00 0115

4.02 There are no Contract Documents other than those listed above. The Contract Documents may only be amended, modified or supplemented as provided in Document 00 7200 (General Conditions).

ARTICLE 5 MISCELLANEOUS

5.01 Terms and abbreviations used in this Agreement are defined in Document 00 7200 (General Conditions) and Section 01 4200 (References and Definitions) and will have the meaning indicated therein.

5.02 Contractor and Owner understand and agree that in no instance are the persons signing this Agreement for or on behalf of Owner or acting as an employee, agent, or representative of Owner, liable on this Agreement or any of the Contract Documents, or upon any warranty of authority, or otherwise. Contractor and Owner further understand and agree that liability of Owner is limited and confined to such liability as authorized or imposed by the Contract Documents or applicable law.

5.03 Pursuant to Labor Code Section 1771(a), Contractor represents that it and all of its Subcontractors are currently registered and qualified to perform public work pursuant to Labor Code Section 1725.5. Contractor covenants that any additional or substitute Subcontractors will be similarly registered and qualified.

5.04 In entering into a public works contract or a subcontract to supply goods, services or materials pursuant to a public works contract, Contractor or Subcontractor offers and agrees to assign to the awarding body all rights, title and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2 (commencing with § 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services or materials pursuant to the public works contract or the subcontract. This assignment shall be made and become effective at the time Owner tenders final payment to Contractor, without further acknowledgment by the parties.

5.05 Copies of the general prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Contract, as determined by Director of the State of California Department of Industrial Relations and are deemed included in the Contract Documents, and shall be made available to any interested party on request. Pursuant to Labor Code Sections 1860 and 1861, in accordance with Labor Code Section 3700, every contractor will be required to secure the payment of compensation to Contractor’s employees. Contractor represents that it is aware of the provisions of Labor Code Section 3700 that require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that Code, and Contractor shall comply with such provisions before commencing the performance of the Work of the Contract Documents.

5.06 This Agreement and the Contract Documents shall be deemed to have been entered into in the City of Capitola, State of California, and governed in all respects by California law (excluding choice 280
Item 8 J.

Agreement 00 5200 - 4 Community Center Patio Project
of law rules). The exclusive venue for all disputes or litigation hereunder shall be in the Superior Court for the County of Santa Cruz, California.

IN WITNESS WHEREOF the parties have executed this Agreement in quadruplicate the day and year first above written.

CITY OF CAPITOLA:

By: ____________________________
City Manager
CONTRACTOR:

Name: ______________________________
By: ______________________________
(Signature)
Its: _______________________________
Title (If Corporation: Chairman, President
or Vice President)
ATTEST:

By: ______________________________
City Clerk
By: ______________________________
(Signature)
Its: _______________________________
Title (If Corporation: Chairman, President
or Vice President)
1099 INFORMATION:

Contractor Taxpayer I.D. No.: ________________
APPROVED AS TO FORM:

By: ____________________________
City Attorney

END OF DOCUMENT
281
Item 8 J.

Community Center Patio
Improvements Contract Award
Capitola City Council
August 28, 2025
282
Item 8 J.

Background
• June 2025: Council approved plans for
Treasure Cove Playground, Restroom
Renovation, and Patio Improvements
• Funding through local funds, fundraising, and
$3.2M CDBG (covers playground, restroom,
patio)
Background
Community Center Patio Improvements
283
Item 8 J.

Discussion
• Patio: new hardscape, decorative paving,
lighting, landscaping, irrigation, furnishings.
• Advertised July 3, 2025
• Pre-bid meeting July 15; 9 contractors
attended.
• Bids opened July 31, 2025; two received
• SSB Contracting, Inc. lowest responsive bidder
Scope and BiddingBackground
Community Center Patio Improvements
284
Item 8 J.

Discussion
• Playground project advertised July 21; 4 bids
received Aug 21 (under review).
• Restroom project to bid shortly; award
expected October 2025.
• Construction for all three projects begins Fall
2025; substantial completion by Summer
2026.

Other Jade Street Projects Background
Community Center Patio Improvements
285
Item 8 J.

Funding Source Revenue Expenditure
General Fund – Community Center $1,800,000 $1,797,000
CNRA Grant – Community Center $1,000,000 $1,000,000
General Fund – Playground $475,000 $421,000
Friends Fundraising – Playground $965,000 $965,000
CDBG 2024 (Community Center) $3,365,000 $3,365,000
CDBG 2025 (Playground, Restroom, Patio) $3,200,000 $3,172,000 Total $10,805,000 $10,720,000
Fiscal Impact Background
Community Center Patio Improvements
286
Item 8 J.

Category Amount
Community Center – Pre-project Modifications $34,000
Community Center – BLRA Design $580,000
Community Center – Cummings CM (Pre-CDBG) $300,000
Community Center – PG&E Service Upgrade $45,000
Community Center – SSB Construction Contract $4,726,000 Community Center – Construction Contingency $477,000
Playground – Verde Design $194,000
Playground – Verde Construction Support $99,000
Playground – Construction (with Contingencies) $2,340,000 Restroom – BLRA Design/Support $58,000
Restroom – Construction (with Contingencies) $500,000
Patio – BLRA Design/Support $70,000
Patio – Construction $1,055,000
Construction Management – Cummings CM (New Phase) $242,000 Total $10,720,000
287
Item 8 J.

Next Steps & Motion
• Award patio contract
• Playground contract recommendation 9/11/25
• Quarterly Community Center Renovation
Update 9/25/25
• Restroom contract recommendation Oct 2025
• Construction Fall 2025 – Summer 2026
Next Steps
Community Center Patio Improvements
288
Item 8 J.

Recommended Action
• Authorize the City Manager to execute the
construction contract with SSB Contracting,
Inc. ($1,055,000).
• Authorize Public Works to issue notices to
proceed upon contract execution.

Recommended Action Next Steps & Motion
Community Center Patio Improvements
289
Item 8 J.

Capitola City Council
Agenda Report
Meeting: August 28, 2025
From: Administrative Service Department
Subject: Managed IT Services Contract Amendment
Recommended Action: Authorize the City Manager to execute Amendment 1 to the Professional Services Agreement with Exceedio for managed information technology services in the amount of $62,450, for a total annual contract value of $147,000 for three years.

Background: The City of Capitola's computer network infrastructure is the backbone for all work done on the computers at the City of Capitola. This network infrastructure equipment consists of routers, switches, wireless access points, and servers.

On March 15, 2022, the City entered into a Professional Services Agreement (PSA) with Exceedio for Information Technology (IT) Services in an amount not to exceed $6,000 per month. At the time, staff discussed the project with several vendors and received bids from three firms. During the evaluation process, it became clear that Exceedio was the best fit for the City of Capitola and its technology needs.

The current agreement with Exceedio is a managed services agreement that includes installation, configuration, maintenance, support, and monitoring of the equipment and the City of Capitola network. These managed services were viewed as critical to the City due to the increased complexity of computer systems and the continued increase in bad actors on the internet. It has become more and more difficult for internal staff to stay apprised of all technology threats. System and threat monitoring were included in the agreement with Exceedio. Exceedio is based in Santa Cruz County and staff has been very satisfied with their performance.

Discussion: The PSA with Exceedio was originally entered into to continue to deliver IT services when the City’s Information Systems Specialist schedule was reduced from full-time to part-time.

The managed services agreement allowed the City's Information Systems Specialist to focus on end-user and desktop support during her approved reduced work schedule. The IT Systems Specialist is also responsible for managing the City’s mobile devices and telephone system.

Staff, including the Information Systems Specialist, has been evaluating options for IT services moving forward and concluded that expanding the scope of services with Exceedio best meets the needs of the City. Expanding the scope will provide 24/7 support that is not dependent on the availability of a single employee.

Fiscal Impact: The additional scope of services is $6,245 per month and will be funded with the salary savings from the retired IT Systems Specialist.

Attachments:

1. Additional scope of managed services
Report Prepared By: Jim Malberg, Administrative Services Director Reviewed By: Julia Gautho, City Clerk; Sam Zutler, City Attorney Approved By: Jamie Goldstein, City Manager
290
Item 8 K.

Service and Payment Agreement
This Service and Payment Agreement dated 9/1/2025
Agreement # 3795
Customer
City of Capitola
420 Capitola Ave.

Capitola CA 95010
Rep MG
For
Managed Services
3 year
Read and Approved by Customer
Signature
Projected monthly fee
This Service and Payment Agreement (SAPA) is incorporated by reference into the Managed Service Agreement (MSA), including all attachments thereto, by and between Vendor and Customer . The MSA may be terminated by Vendor at any time without further notice for non-payment of the Service Fee or any portion thereof; provided, however that Customer has been given an opportunity to cure such breach per the terms specified in the MSA. If the MSA is terminated by Customer prior to SAPA end date, Customer agrees to pay the lesser of: (i) all waived labor hours at the rates set forth in the MSA (or accompanying attachments) or (ii) the total due for the remaining months of the SAPA per the terms herein. *SaaS fees may be increased only to reflect documented increases in third-party licensing costs, not to exceed 5 % in any 12-month period, upon 60 days’ prior written notice.

Invoice amount may very depending on number of active assets. is made between (“Customer”) listed above
and Exceedio Inc.

Customer agrees to purchase services listed below from Exceedio on a monthly basis for a time period of at least , commencing on date listed above.

Attachment B: Service and Payment Agreement
Service Description - Price List Qty Cost Total
1212 - EMS ITaaS Workstation/User 98 49.00 4,802.00
1243 - EMS ITaaS Microsoft 365 Management 98 17.10 1,675.80 1216 - EMS ITaaS Mobile Device 66 17.10 1,128.60
1241 - EMS ITaaS Vendor Management - TPX VOIP 1 199.00 199.00 1200 - EMS ITaaS Special Discount / waived fee till 3/1/2027 -1,561.08 -1,561.08 Please note: ITaaS SKU Pricing increase of 4% per year starts 1/1/2026 Per Asset/Service Pricing - does not include major projects or changes Sales Tax 9.25% 0.00
_____________________________________
$6,244.32
291
Item 8 K.

Capitola City Council
Agenda Report
Meeting: August 28, 2025
From: Public Works Department
Subject: Coastal Rail Trail Segments 10 & 11
Recommended Action: No action is requested at this time.

Background: At the July 24, 2025, City Council meeting, staff recommended rescheduling the Coastal Rail Trail Project update to allow participation by representatives from the Santa Cruz County Regional Transportation Commission (RTC) and the County of Santa Cruz. At this time, there are no new developments to present to the City Council.

Discussion: The RTC is continuing its work on Segments 10 and 11 of the Coastal Rail Trail Project.

Future opportunities for public discussion of the Rail Trail will occur through upcoming RTC and County meetings. Agendas and materials for these meetings are posted in advance on the RTC’s website, and all meetings are open to the public. The RTC meeting schedule and links to agendas can be found here:
https://www.sccrtc.org/meetings/regional-transportation-commission/agendas/ Staff will return to the City Council once new information is available or when RTC and County staff are prepared to present directly to City Council in Capitola.

Report Prepared By: Jessica Kahn, Public Works Director Reviewed By: Julia Gautho, City Clerk; Samantha Zutler, City Attorney Approved By: Jamie Goldstein, City Manager
292
Item 8 L.

Capitola City Council
Agenda Report
Meeting: August 28, 2025
From: Public Works Department
Subject: First Reading of an Ordinance Prohibiting the Sale of Cigarettes and Cigars with Filters
Recommended Action: Introduce for first reading, by title only, waiving further reading of the text, an ordinance amending Capitola Municipal Code Section 5.38.030 to prohibit the sale of cigarettes and cigars with filters (i.e., “partially inconsumable” tobacco products).

Background: In October 2024, the County of Santa Cruz adopted Ordinance No. 5461, prohibiting the sale of filtered tobacco products in unincorporated areas. The ordinance will not be enforced until at least two incorporated cities in the County adopt similar legislation, or until January 1, 2027, whichever comes later.

In Capitola, the Commission on the Environment (COE) reviewed a draft policy and received a presentation from County Health Services staff in March 2025. The Commission unanimously recommended the City adopt an ordinance in alignment with the County’s. On April 10, 2025, the City Council held a public meeting to review the policy recommendation and directed staff to return with an ordinance for formal consideration.

The proposed ordinance aligns with existing municipal policy goals related to public health, environmental protection, and tobacco waste prevention. Capitola has previously adopted a ban on flavored tobacco products (Chapter 5.38) and placed restrictions on smoking in public spaces (Chapter 8.38).

Discussion: The draft ordinance prohibits the sale of any tobacco product that includes a component that is not intended to be consumed—specifically filters embedded within cigarettes or cigars. The sale of cigarettes and cigars with filters contributes significantly to plastic and chemical pollution on beaches and in the ocean, as filters are non-biodegradable and often disposed of improperly. The proposed ordinance (Attachment 1) is modeled after the County ordinance. It is intended to reduce tobacco product waste, particularly single-use plastic filters, which are the most commonly littered item on California beaches.

Following the April 10, 2025, City Council meeting, staff conducted outreach to tobacco retailers in Capitola to share information about the proposed ordinance and gather input on its potential impacts.

Staff distributed letters requesting business input to 10 active cigarette tobacco retailers within the City (Attachments 2 and 3). To date, staff has not yet received any correspondence from retailers with questions or concerns regarding the proposed ordinance.

On June 24, 2025, the City of Santa Cruz adopted an ordinance prohibiting the sale of filtered tobacco products. That ordinance includes a delayed enforcement date of 2027, consistent with the County’s approach. The City of Santa Cruz’s action provides further momentum for regional alignment and shared implementation timelines. If adopted by Council, the proposed ordinance would be effective 30 days from its passage and adoption. However, enforcement of the ordinance would not take place until two incorporated cities in the County adopt similar legislation, or until January 1, 2027, whichever comes later.

To support enforcement of the ordinance, the Capitola Police Department applied for a grant opportunity with the California Department of Justice’s Tobacco Grant Program. As a part of the grant application, the Police Department proposed an enforcement and education program to include three Retail Inspection Operations, three Retail Re-Inspection Operations, three Minor Decoy Operations, three Shoulder Tap Operations, and two Retail Education mailers per year. All data from these operations will be tracked, compiled, and compared to ensure grant objectives are completed. 293
Item 9 A.

Fiscal Impact: Minimal fiscal impact is anticipated. Staff time will be required to conduct additional outreach and to support enforcement once the ordinance takes effect. The ordinance may result in a small reduction in sales tax revenue from tobacco sales; however, similar policies enacted for flavored tobacco products did not lead to substantial revenue changes.

Attachments:

1. Draft Ordinance

2. Business Outreach Letter

3. List of Active Tobacco Retailers
Report Prepared By: Erika Senyk, Environmental Projects Manager; Jessica Kahn, Public Works Director
Reviewed By: Julia Gautho, City Clerk
Approved By: Jamie Goldstein, City Manager
Report modified 8/25/2025 to remove highlighted text and make a correction to an error in a reviewer’s name. 294
Item 9 A.

ORDINANCE NO. ______
AN ORDINANCE OF THE CITY OF CAPITOLA AMENDING SECTION 5.38.030 OF

CAPITOLA MUNICIPAL CODE TO PROHIBIT THE SALE OF PARTIALLY INCONSUMABLE

TOBACCO PRODUCTS
WHEREAS, cigarette and cigar filters are made of non-biodegradable materials, primarily cellulose acetate, which break down into microplastics and leach toxic chemicals into the environment;
WHEREAS, these materials are consistently among the most collected litter items on California’s beaches, including those in the City of Capitola; WHEREAS, filtered tobacco products serve no health purpose and instead increase harm by encouraging deeper inhalation and promoting environmental pollution; WHEREAS, Santa Cruz County adopted Ordinance No. 5461 prohibiting the sale of partially inconsumable tobacco products, and enforcement is contingent upon adoption of similar ordinances by at least two incorporated cities within the county or January 1, 2027, whichever is later;
WHEREAS, the City of Santa Cruz adopted a substantially similar ordinance on June 24, 2025; and
WHEREAS, the City Council finds that adopting this ordinance is in the interest of public health, environmental protection, and regional consistency.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CAPITOLA DOES ORDAIN AS FOLLOWS:

Section 1. The above findings are adopted and incorporated herein.

Section 2. Section 5.38.030 of Chapter 5.38 of the Capitola Municipal Code is hereby amended to add a new subsection D, to read as follows:

D. No tobacco retailer or any of the tobacco retailer’s agents or employees shall sell or offer for sale, or possess with intent to sell or offer for sale, any partially inconsumable tobacco product.

1. “Partially inconsumable tobacco product” means any tobacco product that contains, or is intended to be used with, a component not intended to be consumed, including but not limited to filters, plastic tips, or mouthpieces that are attached to or embedded in the tobacco product.

2. This prohibition includes, but is not limited to, cigarettes with cellulose acetate filters and cigars with plastic or non-biodegradable tips.

3. This subsection shall become enforceable on January 1, 2027, or on the effective date of a substantially similar ordinance adopted by at least two incorporated cities in Santa Cruz County, whichever occurs first.

4. Violations of this subsection shall be subject to penalties, suspension, or revocation as provided in Sections 5.38.090 through 5.38.130.
295
Item 9 A.

Section 3. Environmental Review.

The City Council finds that this ordinance is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3), because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

Section 4. Effective Date.

This Ordinance shall be in full force and effect thirty (30) days from its passage and adoption.

Section 5. 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 6. 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 ___ day of _______ 2025, and was adopted at a regular meeting of the City Council on the ___ day of _______ 2025, by the following vote:

AYES:

NOES:

ABSENT:

Joe Clarke, Mayor
Attest: ___________________________
Julia Gautho, City Clerk

Approved as to form:
___________________________________
Samantha W. Zutler, City Attorney
296
Item 9 A.

City of Capitola
420 Capitola Avenue
Capitola, CA 95010
August 1, 2025
Subject: Request for Business Input – Potential Ordinance to Prohibit Sale of Filtered Tobacco Products
Dear Capitola Business Owner,
On April 10, 2025, the Capitola City Council considered a presentation on the Santa Cruz County ordinance that prohibits the sale of filtered tobacco products in unincorporated areas of the County. Following the presentation and discussion, the Council directed City staff to return with a draft ordinance to amend Chapter 5.38 of the Capitola Municipal Code and engage with local businesses and organizations throughout the process.

You may view the April 10, 2025, City Council meeting and discussion at the following link:
https://www.cityofcapitola.org/citycouncil/page/city-council-meeting-70 This letter is intended to open a dialogue with Capitola businesses—particularly tobacco retailers and convenience store operators—about the potential ordinance. We value your input and want to ensure that any policy decisions are informed by those most directly impacted.

In May 2023, the Santa Cruz County Board of Supervisors formed the Tobacco Waste Ad Hoc Subcommittee to develop a consistent regional approach to reducing tobacco waste. Over the course of 16 months, the Subcommittee engaged in robust community outreach, including beach cleanups, tabling events, and educational presentations. The effort also involved extensive meetings with local businesses, environmental stakeholders, and community leaders.

On October 29, 2024, the County Board unanimously adopted Ordinance No. 5461, amending Chapter 5.60 of the Santa Cruz County Code to prohibit the sale of "Partially Inconsumable Cigarettes or Cigars," defined as tobacco products that include embedded components not intended to be consumed—commonly known as filters. This includes most filtered cigarettes, little cigars, and cigarillos. The ordinance does not constitute a blanket ban on tobacco products; rather, it specifically targets filtered products due to their significant contribution to environmental waste and their lack of proven health benefit.

The ordinance applies to in-store and online retail sales made within the jurisdiction and includes all tobacco retailers regardless of size. Violations are treated as administrative infractions.

The County's ordinance took effect on November 29, 2024. However, enforcement is deferred until January 1, 2027, or until at least two other jurisdictions in Santa Cruz County adopt similar ordinances—whichever comes later. As of this writing, the City of Santa Cruz is the first of the two jurisdictions to adopt a similar ordinance. On August 28, 2025, the Capitola City Council will 297
Item 9 A.

City of Capitola
420 Capitola Avenue
Capitola, CA 95010
consider becoming the second jurisdiction to adopt an ordinace at their regularly scheduled meeting at 4 pm in Council Chambers at 420 Capitola Avenue, Capitola, CA 95010.

Santa Cruz County has established a dedicated webpage with extensive resources, including public health data and support for smoking cessation:
https://www.santacruzcountyca.gov/TobaccoWasteSubcommittee.aspx The City of Capitola is committed to supporting a clean and healthy community while also considering the operational realities of local businesses. As we are drafting a proposed ordinance, we want to hear from you. Do you have concerns about the potential economic impact? Do you have suggestions about implementation timelines or exemptions? Your feedback will help shape how the City proceeds.

Please direct your comments, questions, or concerns by email to:

Email: [email protected]
We appreciate your time and participation in this important discussion. Your insights are vital as we work together to protect public health and our local environment, while also preserving Capitola’s unique business community.

Sincerely,
Katie Herlihy
Community Development Director
City of Capitola
298
Item 9 A.

License Customer Legal Name Site DBA Name Street City State Zip Site City Code License Start 091306811 BEVERAGES & MORE, INC BEVERAGES & MORE #118 1820 41ST AVE STE A CAPITOLA CA 95010-2516 44053 9/12/2008 091235499 HOUTAN PETROLEUM, INC CAPITOLA COAST 2178 41ST AVE CAPITOLA CA 95010-2009 44053 6/30/2004 091228167 VERUTTI INC. VERUTTI LIQUORS 41ST AVE 1125 41ST AVE CAPITOLA CA 95010-3905 44053 6/30/2004 091382939 JCD INVESTMENT INC GRADYS MARKET 509 BAY AVE CAPITOLA CA 95010-3304 44053 12/16/2016 091314209 PENINSULA PETROLEUM LLC CAPITOLA SHELL 1649 41ST AVE CAPITOLA CA 95010-2916 44053 5/22/2009 226011264 GAWFCO ENTERPRISES, INC CAPITOLA UNION 76 2195 41ST AVE CAPITOLA CA 95010-2041 44053 11/15/2019 091265888 AJ'S FUEL MARKET OF CAPITOLA, INC AJ'S FUEL MARKET OF CAPITOLA 836 BAY AVE CAPITOLA CA 95010-2143 44053 5/16/2005 234503424 41ST LIQUOR & MARKET INC 41ST LIQUOR & MARKET 2155 41ST AVE CAPITOLA CA 95010-2041 44053 6/21/2019 234869440 QUALITY MARKET & LIQUOR INC. QUALITY MARKET & LIQUOR, INC. 300 CAPITOLA AVE CAPITOLA CA 95010-3278 44053 9/23/2021 091260358 CHEVRON STATIONS INC CHEVRON #1707 1650 41ST AVE CAPITOLA CA 95010-2917 44053 12/15/2004 Active Cigarette Tobacco Retailers within the City of Capitola 299
Item 9 A.
1 Gautho, Julia
From: Dan Haifley <[email protected]>
Sent: Monday, August 4, 2025 3:01 PM
To: City Council
Cc: Katie Thompson
Subject: I support a ban on the sale of filtered tobacco products Attachments: Ban The Butt - Haifley.docx
Follow Up Flag: Follow up
Flag Status: Flagged
Hello Mayor Clarke and CouncilmembersPlease see my letter attached.

Thank you for your service!
Dan Haifley (He/Him)
(831) 234-8148
300
Item 9 A.

Dan Haifley
2635 Fresno Street
Santa Cruz, CA 95062
(831) 234-8148
Mayor Joe Clarke and Members of the City Council
City of Capitola
420 Capitola Avenue
Capitola, CA 95010
Re: I support a ban on the sale of filtered tobacco products

Dear Mayor and Councilmembers -
I am writing to encourage you to encourage adoption of a ban on the sale of all filtered, rolled tobacco products including cigarettes, cigarillos, and little cigars, in the City of Capitola in order to curb the persistent environmental threat posed by cigarette butts.

Between 2013 - 2023, Save Our Shores alone collected 439,358 cigarette butts from beaches, open spaces, and public areas. As a top littered item locally, we know that number is just a snapshot of the total cigarette litter that continues to negatively impact human and ecosystem health as our organization picks them up too and/or encounters them in our public spaces.

According to a 2023 NOAA study that used community science data, 24.5% of all litter collected on the shoreline of Monterey Bay National Marine Sanctuary between 2017 and 2021 could be attributed to smoking! Cigarette butts are made of cellulose acetate, a non-biodegradable plastic, which breaks into microplastics and bioaccumulates in marine organisms. Cigarette butts are toxic waste and leach dangerous chemicals such as lead, arsenic, and nicotine into the environment where they can poison small children, pets, wildlife, and marine life. They are also a fire hazard, responsible for burning 88,898 acres in California since 1980.

Local jurisdictions and conservation nonprofits have borne the brunt of the cleanup work and associated costs to protect the sanctuary and its human and nonhuman inhabitants from toxic tobacco pollution while the tobacco industry maintains exorbitant profits. Importantly, cigarette butts on the beach come through storm drains, Soquel Creek, and are otherwise wind-blown or transported to the shoreline mostly through the Soquel Creek watershed. Therefore, they were therefore likely consumed and purchased in the local community.

We have the community support, the decades of litter data, and the regional strategy to justify a strong policy that favors our sanctuary and its people.

Respectfully,
Dan Haifley
301
Item 9 A.
1 Gautho, Julia
From: Chris Bostic <[email protected]>
Sent: Tuesday, August 5, 2025 10:03 AM
To: City Council
Cc: [email protected]
Subject: [PDF] Aug. 28 agenda item: Filtered tobacco sales ban Attachments: TPW support letter_Capitola_ASH_Aug-5-25.pdf Please find attached a letter in support of a filtered tobacco sales ban which is scheduled for a first reading on August 28th.

Thank you,
Chris Bostic, Policy Director
ASH > ACTION ON SMOKING & HEALTH
Dedicated to ZERO Tobacco Deaths.
1250 Connecticut Ave, NW
Suite 700 – PMB 5019
Washington, DC 20036
Tel: +1 202.659.4310
Mobile: +1 202 413 0069
[www.ash.org]www.ash.org | Facebook | Twitter | Donate Now > 302
Item 9 A.

Capitola City Council
420 Capitola Ave
Capitola, CA 95010
August 5, 2025
Re: Support for a ban on the sale of filtered tobacco products Dear Mayor Clarke, Vice-Mayor Morgan, and Council Members Jensen, Orbach, and Westman, I am writing on behalf of Action on Smoking and Health (ASH) to support the adoption of a policy that bans the sale of filtered, pre-rolled tobacco products including cigarettes, cigarillos, and little cigars, in the City of Capitola. This policy is critical to address one of the most persistent litter items in the city and across the globe - cigarette butts.

ASH is the nation’s oldest anti-tobacco organization. We take a human rights-based approach to ending the tobacco epidemic. We recognize the importance of a healthy environment in overall health. In addition to the obvious environmental benefits of a ban on filters, such as Santa Cruz County and City have already passed, a sales ban will have a substantial health impact by decreasing youth uptake and helping adults quit.

Cigarette butts are one of the most littered items on Capitola’s streets and beaches. According to a 2023 NOAA study,

24.5% of all litter collected on the shoreline of the Monterey Bay National Martine Sanctuary between 2017 and 2021 could be attributed to smoking. Cigarette butts are made of cellulose acetate, a plastic that breaks down into microplastics and bioaccumulates in marine organisms. Cigarette butts are toxic waste and leach dangerous chemicals such as lead, arsenic, and nicotine into the environment, where they can poison small children, pets, wildlife, and marine life. There is no downstream solution available – collecting butts is infeasible, and they cannot be recycled or discarded into the normal waste stream.

We believe there is community and local government support, decades of litter data, and the regional strategy to justify a strong policy that holds Big Tobacco responsible for its corporate pollution. Please ban the sale of filtered cigarettes.

Thank you for your leadership.

Sincerely,
Chris Bostic
Policy Director
303
Item 9 A.
1 Gautho, Julia
From: Luz Areli Sotelo <[email protected]>
Sent: Tuesday, August 5, 2025 2:17 PM
To: City Council
Cc: Katie Thompson
Subject: [PDF] We support a ban on the sale of filtered tobacco products Attachments: Signed TEC Letter to Capitola City Council TL.pdf Dear Capitola City Council,
I hope this email finds you well. Attached is our letter of support for the City of Capitola Policy on Tobacco Filter Waste.

Thank you!
Best,
Luz Sotelo| Youth Program Manager
Pajaro Valley Prevention and Student Assistance
335 East Lake Avenue Watsonville, CA 95076
831-728-6445 | 831-540-8387
304
Item 9 A.

August 6, 2025
City Council and Mayor of Capitola
420 Capitola Ave.

Capitola, CA 95010
Support for City of Capitola Policy on Tobacco Filter Waste Dear Mayor Clarke, Vice Mayor Morgan, and Council Members Jensen, Orbach, and Westman
I am writing on behalf of the Santa Cruz County Tobacco Education Coalition (TEC) to encourage your support for a policy in the City of Capitola that puts an end to the sale of single-use plastic “filters” in tobacco products.

The TEC is a nonprofit partnership of Santa Cruz County residents and organizations committed to advocating for a tobacco-free lifestyle and environment. Since 1985, Coalition members have worked to promote health across the county – and for good reason, since tobacco remains the largest preventable cause of death, killing half a million Americans per year. One in four cancer deaths in California are due to smoking.

For the last eight years, TEC members have been educating the public and local policymakers about issues with tobacco waste. We have conducted public opinion polls and key informant interviews, given presentations, and provided informational trainings. We have educated youth and engaged media throughout Santa Cruz County. We’ve held a tobacco waste photo contest, and even hosted a “Tobacco Butt Night” at the Museum of Art and History. Coalition members and community partners have picked up tens of thousands of cigarette butts throughout the area, including from Capitola parks and beaches.

The tobacco industry embeds single-use plasticized pieces in tobacco products as a deceptive tool: calling them “filters” to decrease the public's perception of how harmful tobacco products are, while not actually providing any meaningful protection. Tobacco industry marketing efforts have attempted to create the illusion that cigarette “filters” have some impact on the harmful chemicals in cigarette smoke. Yet, according to the World Health Organization, “There is no evidence that filters have any proven health benefits.” As early as 1958, Philip Co-Chairs: Katie Thompson
and Luz Sotelo
◆
Member Organizations
American Cancer Society
American Heart Association
American Lung Association
Cabrillo College
Capitola Police Department
Central California Alliance
for Health
Cigarette Surfboard
City of Santa Cruz
City of Watsonville
Community Prevention Partners
Journeyworks Publishing
Pajaro Valley Community
Health Trust
Pajaro Valley Prevention and
Student Assistance, Inc.

Salud Para La Gente
Salud y Cariño
Santa Cruz Police Department
County of Santa Cruz
Department of Public Works
County of Santa Cruz Friday
Night Live
County of Santa Cruz Health
Services Agency
Santa Cruz County Office of
Education
Santa Cruz County Sheriffs
Save Our Shores
Scotts Valley Police Department
TUPE
United Way of Santa Cruz County
UCSC Student Health (SHOP)
Watsonville Department of
Public Works
Watsonville Police Department
◆
Community Members
at Large
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Morris scientists recognized that selective filtration of the harmful compounds in cigarette smoke was “a thermodynamic impossibility.”
Nonetheless, smokers continue to litter cigarette butts on Capitola streets, parks, and beaches, degrading residents' quality of life, making public spaces less attractive to both locals and visitors, and forcing local governments and conservation nonprofits to bear the costly burden of cleanup.

Fortunately, the City of Capitola has already passed a resolution recognizing tobacco waste as a public health and environmental threat, as have the four other jurisdictions within the county.

Tobacco Education Coalition members have frequently worked to support local leaders in addressing concerns related to passing tobacco prevention policies. Our work will continue if the tobacco “filter” policy passes: tobacco retailers will need guidance in transitioning away from the sale of “filtered” products and will be provided information on items that are acceptable to sell. People who smoke “filtered” tobacco products will need quit-smoking services and support. Coalition members will continue to work towards meeting the needs of all local constituents as we advocate for a health-promoting, tobacco-free lifestyle and environment for the community.

Coalition members believe that the Capitola City Council has community support, researchbased evidence on the science and history of tobacco filters, as well as extensive data on health issues and plastic pollution locally, to justify a policy on tobacco filters that is prohealth, pro-family, and pro-environment. Please consider joining the Unincorporated County of Santa Cruz and the City of Santa Cruz and help put an end to the sale of health-deceiving, environment-damaging, single-use plastic waste in tobacco products.

Sincerely,
Luz Sotelo
Co-Chair, Santa Cruz County Tobacco Education Coalition 306
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1 Gautho, Julia
From: Laura Perkins <[email protected]>
Sent: Tuesday, August 5, 2025 4:32 PM
To: City Council
Cc: Katie Thompson
Subject: I support a ban on the sale of filtered tobacco products.

Dear Mayor Clarke, Vice-Mayor Morgan, and Council Members Jensen, Orbach, and Westman:

I am writing to say that banning the sale of filtered tobacco products would have a huge positive impact on the health of our environment and community. This policy is a critical step to address one of the most littered items on the planet: toxic cigarette butts.

I have lived in Felton for the past 17 years and I love our redwood forests, our wetlands, and our seashore. I am so grateful that our County Board of Supervisors and the City Council of Santa Cruz have already passed this policy.

My daughter is starting at Cabrillo Community College this fall, my partner teaches at UCSC, and our family spends a great deal of time enjoying all of Santa Cruz County.

The City of Capitola is too smart to accept the tobacco industry’s disinformation about filters.

These filters are designed to fool people into thinking they make cigarettes safer to smoke.

Before 1950, less than 1% of commercial cigarettes were filtered. But the increasing press coverage of the potential dangers of smoking led to an explosion of filter development and marketing. By 1960, filtered cigarettes represented 51% of the market. By 2005, they represented 99% of the market. (See the NLM’s How Tobacco Smoke Causes Disease.)
This National Library of Medicine report cites studies that show filters do not make cigarettes safer to smoke.

They actually increase the risk of harm.

As unhealthy as they are for the people who use filtered tobacco products, they also pollute our environment with toxins, carcinogens, and microplastics.

Please pass a policy banning the sale of filtered tobacco products. Santa Cruz County residents, visitors, animals, and marine life deserve an environment free of toxic tobacco waste.

Sincerely,
Laura Perkins
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1 Gautho, Julia
From: Yvette Brooks <[email protected]>
Sent: Wednesday, August 6, 2025 12:07 PM
To: City Council
Cc: Goldstein, Jamie ([email protected]); [email protected] Subject: [PDF] We support a ban on the sale of filtered tobacco products.

Attachments: UWSCC support a ban on the sale of filtered tobacco products (1).pdf Follow Up Flag: Follow up
Flag Status: Flagged
Please see attached letter of support on banning the sale of filtered tobacco products.

Yvette Lopez Brooks
CEO, United Way Santa Cruz County
4450 Capitola Rd, Ste 106
Capitola, CA 95010
| Main: 831-479-5466 x205 | Helpline: 211
https://www.unitedwaysc.org/
Book time to meet with
me

Donate Today
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PO Box 1458
4450 Capitola Road Suite 106
Capitola, CA 95010
831-465-2205
www.unitedwaysc.org I https://211santacruzcounty.org/
Dear Mayor Clarke, Vice-Mayor Morgan, and Council Members Jensen, Orbach, and Westman
On behalf of United Way of Santa Cruz County, we are writing to express our strong support for a local ban on the sale of filtered tobacco products.

As a community-focused organization committed to improving health, education, and financial stability for all residents, we are deeply concerned about the widespread health risks and environmental damage caused by filtered tobacco products. Despite common misconceptions, cigarette filters do not reduce health risks; rather, they perpetuate smoking by making it easier to inhale toxins and by falsely suggesting reduced harm. This has a particularly dangerous impact on young people, who are more likely to start smoking under the belief that filtered cigarettes are a safer choice.

The environmental toll is also significant. Cigarette filters are among the most littered items globally and right here in Santa Cruz County. These non-biodegradable plastic filters leach harmful chemicals into our land, waterways, and marine ecosystems, directly undermining our community’s environmental values and sustainability goals.

A ban on the sale of filtered tobacco products would align with public health best practices and environmental protection strategies. It would demonstrate Capitola's leadership in prioritizing the well-being of its residents and natural resources.

United Way of Santa Cruz County urges the City Council to move forward with this ban and set an example for other communities across the state and nation.

Thank you for your consideration and ongoing commitment to public health and environmental justice.

Sincerely,
Yvette Brooks
CEO
United Way Santa Cruz County
[email protected]
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1 Gautho, Julia
From: Santa Cruz Policy <[email protected]> Sent: Thursday, August 7, 2025 11:26 AM
To: City Council
Cc: Jack Ward; Katie Thompson
Subject: I support a ban on the sale of filtered tobacco products Dear Mayor Clarke, Vice-Mayor Morgan, and Council Members Jensen, Orbach, and Westman I urge you to take action against one of the most pervasive and harmful forms of litter - cigarette butts. These toxic plastic filters are a major environmental, health, and economic burden on our community.

Cigarette butts are the most littered item in the world, and locally, they wash into Monterey Bay, contributing to ocean pollution and harming marine life. These filters do not biodegrade; instead, they break into microplastics and leach toxic chemicals like lead, arsenic, and nicotine into our environment. They are also a fire hazard, responsible for burning nearly 89,000 acres in California since 1980.

The financial burden of cigarette butt cleanup falls on local governments and volunteers rather than the tobacco companies responsible for the waste. In California alone, Caltrans spends nearly $14 million annually on cigarette litter cleanup.

I urge you to support a ban on the sale of filtered tobacco products in the City of Capitola.

Eliminating these non-essential and harmful filters will significantly reduce pollution, protect public health, and lessen the financial strain on our local government.

Thank you for your time and leadership on this critical issue. I look forward to your support of this ordinance.

Best,
Morganna Johnson and Jack Ward on Behalf of the Policy Committee for the Santa Cruz Chapter of the Surfrider Foundation.
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1441 Schilling Place South-1st Floor · Salinas, California 93901· 831-796-1268 Mission Statement
To support, educate, and empower youth and families to create safe and healthy environments. _____________________________________________________________________________ August 28, 2025
Support for a ban on the sale of filtered tobacco products Dear Mayor Clarke, Vice Mayor Morgan, and Council Members Jensen, Orbach, and Westman,
We are writing on behalf of Monterey County Collaborates to support the adoption of an ordinance that bans the sale of filtered tobacco in the city of Capitola. This policy is critical to address one of the most persistent litter items in Santa Cruz County which pollutes our local environment and damages our community’s health.

We are an organization dedicated to advocating for a safe and healthy Monterey County, which includes working to reduce the toxic tobacco product waste that puts our environment and health at risk. We believe that the recent ordinance adopted by Santa Cruz County and the city of Santa Cruz serves as a progressive policy that will lead to positive change across the state in a firm rebuttal to Big Tobacco’s continued attack on the health and safety of our communities.

With the recent decision by the city of Santa Cruz to adopt the filter ban ordinance, we are one step closer to the county-wide implementation and enforcement of this policy. We ask that Capitola takes the final, necessary step in ensuring this policy is implemented across all of Santa Cruz County to protect the health of the environment and residents.

We are working towards the same goal of ending tobacco product waste and hope to follow your leadership example by pursuing a filtered product ban in our County. We look towards a bright future in which the entirety of the Monterey Bay is free from this persistent and harmful waste.

As your neighbors and the community that shares the Monterey Bay National Marine Sanctuary with you and others, we encourage you to continue protecting the health of our shared environment and neighboring communities. We affirm our support for this ordinance that will ban the sale of filtered tobacco products and assure you that we are working towards the same goal of reducing tobacco product waste.

Thank you for your time and continued leadership.

Sincerely,

Kendra Howell Jorge Rubio

Members
Blue Zones Project
Monterey County
Breathe California of
the Bay Area, Golden
Gate, and Central
Coast
Monterey County
Health Department
Monterey County
Office of Education
Monterey County
Prescribe Safe
Initiative
Sun Street Centers
Transportation
Agency for Monterey
County
Co-chairs
Kendra Howell
Jorge Rubio

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1 Gautho, Julia
From: George Leonard <[email protected]>
Sent: Monday, August 11, 2025 1:37 PM
To: City Council
Cc: Katie Thompson
Subject: SUPPORT – Ban on the sale of filtered tobacco products Attachments: Leonard_Butt Support Letter_Capitola_Council_May_2025_Final_081125.docx Dear Capitola City Council Members:

Attached, please find a support letter articulating the reasons for my support.

Thank you for your continued leadership.

Cheers,
George
--
George H. Leonard, PhD
[email protected]
831-454-6477 - cell
LinkedIn
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August 11, 2025
Capitola City Council
420 Capitola Ave
Capitola, CA 95010
Delivered via email: [email protected]
cc: [email protected]
Re: SUPPORT – Ban on the sale of filtered tobacco products Dear Capitola City Council Members:

As a 25-year resident of Santa Cruz and a frequent visitor to the city of Capitola and its beaches, I support the adoption of the policy before the Council to ban the sale of all filtered, rolled tobacco products in the city of Capitola. This policy is a critical component of the companion policy already approved by the County and City of Santa Cruz.

I commend the leadership of local policy makers in addressing the ongoing problem of tobacco waste throughout the Santa Cruz region, including on its beaches, in its rivers and waterways, and throughout the Monterey Bay National Marine Sanctuary (MBNMS). I am a marine biologist who has studied, worked on, and dove in Monterey Bay since my time as a student at Moss Landing Marine Laboratories in the 1990’s. The MBNMS is the crown jewel of the Central Coast, hosting 36 species of marine mammals, nearly 200 species of seabirds and shorebirds, over 500 species of fish, and countless species of invertebrates and seaweed. A clean Sanctuary, free of harmful tobacco pollution, is vital to the health of the coastal community of Santa Cruz, Capitola, and all its inhabitants, humans and otherwise. And keeping tobacco waste out of the local ocean will also help elevate Capitola’s ocean stewardship as the most recent addition to the World Surfing Reserve.

Numerous NGOs have documented the problem of tobacco waste. For nearly 40 years, Ocean Conservancy has organized the International Coastal Cleanup, the largest volunteer effort on behalf of the ocean. Over 18 million of their volunteers have removed nearly 380 million pounds of trash and plastics from over 150 countries around the world, including across all 50 U.S. states. These volunteers have catalogued every piece of trash collected and year after year, cigarette butts have been the number one item collected by count. The numbers are staggering: 63 million butts collected worldwide; 35 million butts removed across the U.S, with

8.5 million collected in the state of California. From 2013-2023, Save Our Shores alone collected over 400,000 cigarette butts from the beaches, open spaces, and public areas in the Santa Cruz region, including Capitola’s beaches.

The consequences of this tobacco waste to human health and the environment are welldocumented and severe. In short, cigarette filters are bad for the marine environment, bad for marine wildlife, and bad for people. Filters are toxic waste, leaching lead, arsenic, nicotine, and 314
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2 a host of other chemicals into the marine environment. Butts are plastic and like other plastics they don’t degrade but rather break apart into thousands of microplastics; plastic fibers from cigarettes and other sources have been found throughout the marine food web, from the smallest zooplankton to the largest whales, including the fish and shellfish that are vital to a healthy and sustainable seafood supply. To make matters worse, cigarette filters do not make smoking safer; 60 years ago, the U. S. Surgeon General confirmed that filters were ineffective at protecting smokers from diseases caused by smoking and later research provided evidence that filters can actually increase the risk of certain types of cancer in smokers.

The tobacco industry takes zero responsibility for their toxic waste, forcing the physical and financial burden of its cleanup onto local volunteer organizations, government agencies, and residents like me and my friends and neighbors.

Given this host of concerns, I strongly urge you to adopt the proposed policy to ban the sale of all filtered, rolled tobacco products including cigarettes, cigarillos and little cigars in the City of Capitola.

As the Trump Administration continues to gut environmental protections, independent science, and NOAA and the national marine sanctuaries, Capitola, Santa Cruz and the Monterey Bay must remain leaders in science-based public policy. Now is not the time to back down. It is the time to lead. The vision shown by you, your fellow city councils and the Board of Supervisors will serve as inspiration for other jurisdictions throughout the state and across the nation.

Thank you for your continued leadership and action on behalf of the ocean and all residents of the City of Capitola.

Sincerely,
George H. Leonard, Ph.D.
129 Ladera Drive
Santa Cruz, CA 95060
[email protected]
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1 Gautho, Julia
From: [email protected]
Sent: Tuesday, August 12, 2025 8:24 AM
To: City Council
Subject: Possible Spam Vote request
Please vote to Ban the BuƩ. Health and safety for all. Second hand smoke kills.

Dina Schillings
Clares St, Capitola
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1 Gautho, Julia
From: Katie Thompson <[email protected]>
Sent: Monday, August 11, 2025 3:31 PM
To: City Council
Subject: [PDF] We support a ban on the sale of filtered tobacco products Attachments: Capitola City Council_Filtered tobacco ban_AUGUST 2025.pdf Follow Up Flag: Follow up
Flag Status: Flagged
Dear Capitola City Council Members,
Please find attached our letter in support of the ban on the sale of all filtered tobacco products in the city of Capitola.

Thank you for your continued leadership on making the environment safer and cleaner for Capitola residents and visitors.

Sincerely,
Katie
To help protect your privacy, Microsoft Office
prevented automatic download of this picture from
the Internet. Katie Thompson, M.M.A. (she/her)
Executive Director, Save Our Shores
Office: 1.831.462.5660 x8
Website: www.saveourshores.org
Address: 345 Lake Ave, Suite A. Santa Cruz, CA 95062
We are located on the unceded territory of the Awaswas-speaking Uypi Tribe, represented by the Amah Mutsun Tribal Band
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1 Gautho, Julia
From: Jason Scorse, Middlebury Institute <[email protected]> Sent: Tuesday, August 12, 2025 12:41 PM
To: City Council
Cc: Katie Thompson
Subject: Filtered tobacco product ban
Attachments: Scorse_Butt Support Letter_Capitola_City Council.docx To The Capitola City Council,
Please see the attached letter in support of the ban of filtered tobacco products.

Thank you,
Jason
--
"Animals are the main victims of history, and the treatment of domesticated animals in industrial farms is perhaps the worst crime in history." Yuval Noah Harari "The best lack all conviction, while the worst are full of passionate intensity." W.B.

Yeats
"Those who can make you believe absurdities can make you commit atrocities." Voltaire
"Humanity can and must do better." All sane and decent people Jason Scorse, Ph.D.

Associate Professor
Chair, Environmental Policy and Management Program
Director, Center for the Blue Economy
Middlebury Institute of International Studies at Monterey Office Hour Appointments
Zoom Meeting Room: Passcode7sQnmz
Faculty Webpage
To help protect your privacy, Microsoft Office prevented automatic download of this picture from the Internet.
319
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August 12, 2025
Capitola City Council
420 Capitola Ave
Capitola, CA 95010
Re: SUPPORT – Ban on the sale of filtered tobacco products Dear Capitola City Council Members:

As a more than 30-year resident of Santa Cruz, I support the adoption of the policy before the Council to ban the sale of all filtered, rolled tobacco products in the city of Capitola.

I am the Director of the Center for the Blue Economy and have served on numerous boards dealing with the Monterey Bay National Marine Sanctuary. The MBNMS is the crown jewel of the Central Coast, hosting 36 species of marine mammals, nearly 200 species of seabirds and shorebirds, over 500 species of fish, and countless species of invertebrates and seaweed. A clean Sanctuary, free of harmful tobacco pollution, is vital to the health of the coastal community of Santa Cruz, Capitola, and all its inhabitants, humans and otherwise.

The tobacco industry takes no responsibility for their toxic waste, so I strongly urge you to adopt the proposed policy to ban the sale of all filtered, rolled tobacco products including cigarettes, cigarillos and little cigars in the City of Capitola.

Thank you,
Sincerely,
Dr. Jason Scorse
Director, Center for the Blue Economy
[email protected]
320
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1 Gautho, Julia
From: Gage Dayton <[email protected]>
Sent: Thursday, August 14, 2025 5:07 PM
To: City Council
Subject: [PDF] Butt letter
Attachments: Dayton_Butt Support Letter_Capitola_Council.pdf Follow Up Flag: Follow up
Flag Status: Flagged
Dead Capitola City Council,
Please find the attached letter in support of the butt ban in Capitola.

Thank you,
Gage
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August 14, 2025
Capitola City Council
420 Capitola Ave
Capitola, CA 95010
Delivered via email: [email protected]
cc: [email protected]
Re: SUPPORT Ban on the sale of filtered tobacco products Dear Capitola City Council Members:

As a 15-year resident of Santa Cruz County and a frequent user of Capitola and Live Oak beaches, I support the adoption of the policy before the Council to ban the sale of all filtered, rolled tobacco products in the city of Capitola. This policy is a critical component of the companion policy already approved by the County and City of Santa Cruz.

Numerous NGOs have documented the problem of tobacco waste. For nearly 40 years, Ocean Conservancy has organized the International Coastal Cleanup, the largest volunteer effort on behalf of the ocean. Over 18 million of their volunteers have removed nearly 380 million pounds of trash and plastics from over 150 countries around the world, including across all 50 U.S. states. These volunteers have catalogued every piece of trash collected and year after year, cigarette butts have been the number one item collected by count. The numbers are staggering:
63 million butts collected worldwide; 35 million butts removed across the U.S, with 8.5 million collected in the state of California. From 2013-2023, Save Our Shores alone collected over 400,000 cigarette butts from the beaches, open spaces, and public areas in the Santa Cruz region, .

Cigarette filters are bad for the marine environment, bad for marine wildlife, and bad for people.

Butts are plastic and like other plastics they thousands of microplastics; plastic fibers from cigarettes and other sources have been found throughout the marine food web, from the smallest zooplankton to the largest whales, including the fish and shellfish that are vital to a healthy and sustainable seafood supply. To make matters worse, cigarette filters do not make smoking safer; 60 years ago, the U. S. Surgeon General confirmed that filters were ineffective at protecting smokers from diseases caused by smoking and later research provided evidence that filters can actually increase the risk of certain types of cancer in smokers.

Given this host of concerns, I urge you to adopt the proposed policy to ban the sale of all filtered, rolled tobacco products including cigarettes, cigarillos and little cigars in the City of Capitola. 322
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2 Thank you for your continued leadership and action on behalf of the ocean and all residents of the City of Capitola.

Sincerely,
Gage H. Dayton
1881 16th Ave.

Santa Cruz, CA 95062
[email protected]
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1 Gautho, Julia
From: Thomas Novotny <[email protected]>
Sent: Friday, August 15, 2025 11:42 AM
To: City Council
Cc: [email protected]
Subject: I support a ban on the sale of filtered tobacco products Follow Up Flag: Follow up
Flag Status: Flagged
Dear Mayor Clarke, Vice-Mayor Morgan, and Council Members Jensen, Orbach, and Westman:

I write to support the proposed ban on the sale of cigarette filters in Santa Cruz County, passed by the board of supervisors last October. This bold, singular accomplishment demonstrates how local communities can address a global problem and provide an example for others to follow. I have been involved for more than 20 years in the research that demonstrates the importance of cigarette filters as environmental pollutants and fraudulent marketing gimmicks. They are designed to fool people who smoke into thinking they are protected against the harms of smoking. Instead, they just make it easier to start smoking, to sell cigarettes, and to pollute our beaches with toxic plastic waste. California leads global efforts to overcome the enormous harms of cigarette smoking, and public health advocates have led the way in this fight. Now we join with environmental advocates to take on the tobacco industry in order to protect our citizens’ health and our treasured coastal environments. Santa Cruz can lead the way with this important intervention if Capitola joins in. Businesses will adapt; other communities will follow; beaches will be cleaner; and no one will die or leave the county because filtered cigarettes are not available there. In fact, Beverly Hills and Manhattan Beach banned all tobacco product sales, and they seem to be doing just great. I would be happy to provide additional information about filters, tobacco use, environmental harms, or economic concerns regarding a ban on the sale of filtered cigarettes or single-use nicotine products.

Respectfully,
--
Thomas E. Novotny MD MPH
Professor Emeritus
San Diego State University
School of Public Health
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1 Gautho, Julia
From: Julia Alber <[email protected]>
Sent: Friday, August 15, 2025 2:03 PM
To: City Council
Cc: [email protected]; [email protected]
Subject: [PDF] Letter of Support for Ban on the Sale of Filtered Tobacco Products Attachments: TCC Letter of Support for Capitola filter ban.pdf.pdf Dear Mayor Clarke, Vice-Mayor Morgan and Council Members Jensen, Orbach and Westman, On behalf of the San Luis Obispo County Tobacco Control Coalition, I am attaching a letter of support for the adoption of the ordinance banning the sale of filtered tobacco products in the city of Capitola, scheduled to be heard at your August 28, 2025 meeting.

Thank you,
Julia Alber
Chair, San Luis Obispo County Tobacco Control Coalition 325
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August 15, 2025
Support for the ban on the sale of filtered tobacco products in Capitola Dear Mayor Clarke, Vice-Mayor Morgan and Council Members Jensen, Orbach and Westman, On behalf of the San Luis Obispo County Tobacco Control Coalition (TCC), I am writing to support the adoption of the ordinance banning the sale of filtered tobacco products in the city of Capitola, scheduled to be heard at your August 28, 2025 meeting.

Our coalition’s vision is that all people in the County of San Luis Obispo enjoy smoke-free air and a tobacco-free environment. We applaud your proposed ordinance to ban the sale of filtered cigarettes as we believe that it would both help people reduce their use of filtered cigarettes and will benefit the environment.

We recognize cigarettes filters as a marketing ploy by the tobacco industry to persuade cigarette users that filtered cigarettes would be made safer than non-filtered cigarettes. In fact, filters have been called the ‘deadliest fraud in the history of human civilization’1. Research has revealed that modern cellulose acetate cigarette filters in fact do not stop – and rather may increase2 - the carcinogenic tar and toxins that make cigarettes so deadly. Thus, there is no health value to maintaining filters on cigarettes.

Additionally, banning filtered cigarettes is critical to addressing one of the most persistently littered items on California’s coast and, indeed, the world. This particular piece of litter pollutes our environment with microplastics and leaches toxins into our soils and waterways. A fact that always astounds is that one cigarette filter leaches enough nicotine and toxins to kill fish in a liter of water3.

In short, there is no healthful reason for filters nor is there a place for filters in our environment. We encourage your Council to protect the health of our communities and the environment by approving the ordinance to ban the sale of filtered cigarettes. Our Coalition is eager to follow your leadership and seek similar protections for our County.

Thank you for your time and leadership on this issue,
Sincerely,
Julia Alber
Chair, SLO County Tobacco Control Coalition
1Kennedy P. Who made that cigarette filter? 2012. New York Times Magazine 2Song M-A, Benowitz NL, Berman M, et al. Cigarette filter ventilation and its relationship to increasing rates of lung adenocarcinoma. J Natl Cancer Inst 2017;109. 10.1093/jnci/djx075. [Epub ahead of print: 01 Dec 2017]. 3Cigarette Butts Toxic to Marine Life | News | SDSU
1 Gautho, Julia
From: Ben Judkins <[email protected]>
Sent: Monday, August 18, 2025 7:45 AM
To: City Council
Subject: [PDF] Letter of Support from The Cigarette Surfboard Filmmaker Attachments: Letter of Support from The Cigarette Surfboard Filmmaker (2).pdf To the Capitola City Council,
My name is Ben Judkins and I am the co-founder of The Cigarette Surfboard Project, and Director/Co-Producer of the 90min documentary, The Cigarette Surfboard. I’ve spent the past 8 years documenting the issue of single-use cigarette filters, both in Santa Cruz County and around the world.

I’ve learned all about their environmental, economic, and human health impacts. After screening the documentary around the world this past year, with over 80 screenings at film festivals, high schools, and universities, I’ve witnessed firsthand how deeply this issue resonates with communities and the thousands of folks who have seen the film. More than 600 people came out to our two screenings in Santa Cruz, and attendees were truly moved by this issue and the political work within Santa Cruz County to push forward such policies.

I strongly support the Capitola City Council passing an ordinance banning the sale of single-use filters. Thank you for taking action and leading the way for other jurisdictions to follow.

All the best,
Ben Judkins (he/him)
Filmmaker, The Cigarette Surfboard
thecigarettesurfboard.com
@thecigarettesurfboard
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From: Deane Plaister <[email protected]>
Sent: Monday, August 18, 2025 10:04 AM
To: City Council
Subject: Ban on single-use cigarette filters
Dear Councilmembers,
I am not a resident of your lovely town, but I do live down the coast in Santa Barbara, and I'm active with our chapter of Surfrider Foundation. In the beach cleanups we put on, we used to find cigarette butts as the most common item. Santa Barbara passed a ban on smoking at the beach, and the volume dropped dramatically. As I understand it, your council is considering a ban on single-use cigarette filters. This is a great idea, even better than a beach-smoking ban.

Cigarette butts are not only unsightly, they carry toxic chemicals, and absorb other bad substances from the environment. They are then consumed by marine animals that mistake them for bits of food. This is disastrous for the marine environment, and getting butts out of the ocean (or anywhere) is good policy. I urge you to continue the momentum started by the City and County of Santa Cruz, and vote to ban single-use cigarette filters in your city.

Many thanks,
Deane Plaister
30 W. Valerio #7
Santa Barbara, CA 93101
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1 Gautho, Julia
From: John <[email protected]>
Sent: Monday, August 18, 2025 4:55 PM
To: City Council
Subject: Pass the cigarette butt ban
It’s both the right thing to do and good for business.

Warmly JM
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From: Tanya Payyappilly <[email protected]>
Sent: Monday, August 18, 2025 3:40 PM
To: City Council
Cc: [email protected]
Subject: [PDF] Breathe California Supports Ban on the Sale of Filtered Tobacco Products Attachments: BreatheCA_Letsupport CapitolaCity Filter Ban.pdf Dear Mayor Clarke, Vice-Mayor Morgan, and Council Members Jensen, Orbach, and Westman, I am very excited to hear that the City of Capitola is considering a ban on filtered tobacco products that was adopted by the county last year. Attached here is Breathe California’s letter of support for the same. Hope this provides all the information you need to decide about this issue.

Please do not hesitate to reach out to me in case you have any questions.

Warmly,
Tanya Payyappilly, MD, MPH
CEO
of the Bay Area, Golden Gate, and Central Coast
1469 Park Avenue, San Jose, CA 95126
Phone: (408) 998-5865 | Web: www.lungsrus.org
Breathe California is dedicated to fighting lung disease, advocating for clean air and promoting public health in our local communities. 331
Item 9 A.

August 18, 2025
Capitola City Council
420 Capitola Ave,
Capitola, CA 95010
Re: Support Ban on the sale of filtered tobacco products Dear Mayor Clarke, Vice-Mayor Morgan, and Council Members Jensen, Orbach, and Westman,
Breathe California of the Bay Area, Golden Gate and Central Coast urgently requests your support for the adoption of a city-wide policy prohibiting the sale of all filtered, rolled tobacco products, including cigarettes, cigarillos, and little cigars, within Santa Cruz. This decisive action is vital to directly address the pervasive issue of cigarette butt litter, a persistent pollutant not only on our land in Santa Cruz County and globally, but also with devastating consequences for the delicate ecosystems of Santa Cruz County's precious coastal and ocean environments.

For over a century, Breathe California has steadfastly championed healthy lungs across California, striving to make our state a leader in respiratory health. Since our founding in 1911, we have been a strong voice for lung health in all its dimensions, including environmental health. We have witnessed and actively countered decades of manipulative strategies employed by the tobacco industry, which has profited from the addiction of young people. While public understanding of the health dangers of Big Tobacco's products has increased, the significant yet often overlooked problem of toxic environmental pollution, especially its insidious impact on our marine life, remains a critical concern.

The term "filters" on cigarettes deceptively suggests a safer smoking experience. marketing tactic employed by an industry with a long history of public deception, resulting in devastating consequences for human health and our shared environment.

Beyond their harm to individuals, these filtered products become a significant source of pollution, leaching toxins, carcinogens, and microplastics into our soils and, critically, into our waterways and the ocean. These discarded filters are frequently mistaken for food by marine animals, leading to ingestion, starvation, and even death.

The chemicals they release further contaminate the marine food chain, posing a threat to biodiversity and potentially impacting human health through seafood consumption.

Local governments and environmental nonprofits have disproportionately shouldered the burden and expense of cleaning up this toxic tobacco waste from our beaches and coastal areas, while the tobacco industry continues to generate excessive profits.

Breathe California
of the Bay Area,
Golden Gate, and
Central Coast
1469 Park Avenue
San Jose, CA 95126
Phone: (408) 998-5865
Toll-Free: 1-877-3-BREATHE
Fax: (408) 998-0578
www.lungsrus.org
[email protected]
Tax ID#: 94-1156307

BOARD OF DIRECTORS
Chairperson
Amresh Prasad
Secretary
Joann Blessing-Moore, MD
Treasurer
Astha Sharma, PMP
Directors
Frank DeBiaso
Richard Stedman, APCO
Roslyn Bienenstock, RRT, MPH
Sulochina Lulla, MD
Terry Trumbull
Thomas M. Dailey, MD, FCCP
Tracy Richmond McKnight, Ph.D.

Chief Executive Officer
Tanya Payyappilly, MD, MPH
Deputy Executive Director
Margo Sidener, MS, CHES
A member of the
Breathe America
Alliance
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It is time for a proactive, upstream solution that holds Big Tobacco accountable for its corporate pollution and protects our invaluable marine resources.

Our community possesses decades of litter data and a well-established regional strategy. Working together, with your crucial support, we can enact a robust policy that prioritizes the well-being of our residents over the exploitative profits of the cigarette industry. A ban on filtered cigarettes is essential to protect our vulnerable environment. We strongly urge you to join the Santa Cruz County Board of Supervisors and the City of Santa Cruz in passing this vital policy to safeguard our community.

Sincerely,
Tanya Payyappilly,
CEO
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1 Gautho, Julia
From: Tico Andrea <[email protected]>
Sent: Tuesday, August 19, 2025 11:03 AM
To: City Council
Subject: Ban on the sale of filtered tobacco products
Dear Mayor Clarke, Vice Mayor Morgan, and Council Members Jensen, Orbach and Westman
I am writing to you in support of the adoption of a policy that bans the sale of filtered, prerolled tobacco products including cigarettes, cigarillos, and little cigars, in the City of Capitola. This policy is critical to address one of the most persistent litter items in Capitola, the county of Santa Cruz and across the globe: cigarette butts.

Cigarette butts are the most common form of litter worldwide, and they represent one of the worst pollutants for our local coastline. They may look small, but cigarette filters are made of plastic fibers that do not biodegrade and can leach toxic chemicals such as arsenic, lead, and nicotine into the sand and ocean. These toxins harm marine life, contaminate water quality, and threaten the health of beachgoers. Birds, fish, and sea turtles often mistake the butts for food, leading to ingestion, choking, and poisoning.

Thank you for your continued environmental leadership.

Tico Andrea
--
Tico Andrea
Program & Product Management Leader
Corralitos, CA | 831 421 1891 | [email protected]
linkedin.com/in/ticoandrea
Expertise: International Expansion | Product & Program Leadership | Localization (L10n/i18n) Tools & Skills: Tableau · GA · Amplitude · SQL · Figma · Jira · Asana · Smartling · DeepL Languages: Dutch (native), English, French, German
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1 Gautho, Julia
From: Tico Andrea <[email protected]>
Sent: Tuesday, August 19, 2025 11:03 AM
To: City Council
Subject: Ban on the sale of filtered tobacco products
Dear Mayor Clarke, Vice Mayor Morgan, and Council Members Jensen, Orbach and Westman
I am writing to you in support of the adoption of a policy that bans the sale of filtered, prerolled tobacco products including cigarettes, cigarillos, and little cigars, in the City of Capitola. This policy is critical to address one of the most persistent litter items in Capitola, the county of Santa Cruz and across the globe: cigarette butts.

Thank you for your continued environmental leadership.

Tico Andrea
--
Tico Andrea
Program & Product Management Leader
Corralitos, CA | 831 421 1891 | [email protected]
linkedin.com/in/ticoandrea
Expertise: International Expansion | Product & Program Leadership | Localization (L10n/i18n) Tools & Skills: Tableau · GA · Amplitude · SQL · Figma · Jira · Asana · Smartling · DeepL Languages: Dutch (native), English, French, German
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1 Gautho, Julia
From: Katelyn Sprofera <[email protected]>
Sent: Tuesday, August 19, 2025 3:57 PM
To: City Council
Cc: Katie Thompson; Robert Mazurek
Subject: [PDF] California Marine Sanctuary Foundation supports a ban on the sale of filtered tobacco products
Attachments: Capitola City Council Ban the Butt.pdf
Hello,
Please accept our letter of support for the ban on the sale of filtered tobacco products.

Kind Regards,
Katelyn Sprofera
--
Katelyn Sprofera
Program Manager and Evaluation Specialist
California Marine Sanctuary Foundation
CaliforniaMSF.org
CaliforniaMPAs.org
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1 Gautho, Julia
From: Aster Peng <[email protected]>
Sent: Tuesday, August 19, 2025 8:15 PM
To: City Council
Subject: Ban Cigarettes!
Dear City Council,
I urge you to take action against one of the most pervasive and harmful forms of litter - cigarette butts. These toxic plastic filters are a major environmental, health, and economic burden on our community.

I urge you to introduce and support a ban on the sale of filtered tobacco products in our city.

Eliminating these non-essential and harmful filters will significantly reduce pollution, protect public health, and lessen the financial strain on our local government.

Thank you for your time and leadership on this critical issue. I look forward to your response.
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1 Gautho, Julia
From: daniel aims <[email protected]>
Sent: Wednesday, August 20, 2025 11:54 AM
To: City Council
Subject: Re: Ban on the sale of filtered tobacco products August 20, 2025
Dear Honorable Mayor Clarke, Vice Mayor Morgan, and Council Members Jensen, Orbach and Westman, I am writing to you in support of the adoption of a policy that bans the sale of filtered, pre-rolled tobacco products including cigarettes, cigarillos, and little cigars, in the City of Capitola. This policy is critical to address one of the most persistent litter items in Capitola, the county of Santa Cruz, and across the globe: cigarette butts.

Cigarette butts are one of the most commonly littered items that consistently appear on beautiful beaches, disrupting natural ecosystems and polluting even protected lands.

Let’s not forget what cigarette butts are: single use plastics.

There is community and neighboring local government support, decades of litter data, and the regional strategy to justify a policy that helps protect Capitola’s beautiful shores, marine life, and people. Please ban the sale of filtered cigarettes.

Thank you for your continued environmental leadership.

Daniel Aims
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1 Gautho, Julia
From: Sandy Brown <[email protected]>
Sent: Thursday, August 21, 2025 12:14 PM
To: Clarke, Joe; Margaux Morgan; Gerry Jensen; Melinda Orbach; Westman, Susan Cc: Gautho, Julia; Justin Cummings; Manu Koenig
Subject: [PDF] Support for proposed ordinance banning the sale of filtered tobacco products Attachments: 25_Capitola Filtered Tobacco Ban Support Letter.pdf Dear Mayor Clarke, Vice Mayor Morgan and Members of the Capitola City Council, Please find attached a letter of support from Supervisors Koenig and Cummings for Capitola's proposed ordinance banning the sale of filtered tobacco products. Let us know if you have any questions in advance of the hearing.

Kind regards,
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County of Santa Cruz

BOARD OF SUPERVISORS
701 OCEAN STREET, SUITE 500, SANTA CRUZ, CA 95060-4069
(831) 454-2200 FAX: (831) 454-3262 TDD/TTY - Call 711

MANU KOENIG KIMBERLY DE SERPA JUSTIN CUMMINGS FELIPE HERNANDEZ MONICA MARTINEZ

FIRST DISTRICT SECOND DISTRICT THIRD DISTRICT FOURTH DISTRICT FIFTH DISTRICT August 21, 2025
The Honorable Joe Clarke and
Capitola City Councilmembers
420 Capitola Avenue
Capitola, CA 95010
Dear Mayor Clarke and City Councilmembers,
We strongly support the proposed ordinance banning the sale of filtered tobacco products in Capitola.

In 2023, Capitola recognized tobacco waste as a public health and environmental threat. On April 10, 2025, you unanimously voted to draft this ordinanceyour leadership is critical to making it law. Cigarette butts remain the most common toxic litter on our beaches and in our waterways. By banning filtered tobacco sales, Capitola can significantly reduce this waste, protect public health, and ease the burden of cleanup on residents and agencies.

This action would align Capitola with County and City of Santa Cruz ordinances and activate enforcement of the Countys ban. It also reflects the City's long-standing leadership on environmental issues, including your vital role in shaping the Countys tobacco waste policy.

While a short transition period may be needed, similar tobacco policies have shown no longterm harm to local businesses. With an 18-month implementation window, this ordinance strikes a thoughtful balance between public good and economic consideration.

Please continue your leadership and join us in advancing this meaningful policy for a cleaner, healthier Capitola and region.

Sincerely,

JUSTIN CUMMINGS MANU KOENIG
Third District Supervisor First District Supervisor
County of Santa Cruz County of Santa Cruz
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1 Gautho, Julia
From: Faris Sabbah <[email protected]>
Sent: Friday, August 22, 2025 8:00 AM
To: City Council
Subject: Support for Capitola’s Proposed Ban on the Sale of Filtered Tobacco Products Attachments: Support for Filtered Tobacco Ban - Santa Cruz COE - 8-21-25.pdf Dear Mayor Clarke, Vice-Mayor Morgan, and Council Members Jensen, Orbach, and Westman, Please find attached a letter of support urging the Capitola City Council to adopt the proposed ordinance banning the retail sale of filtered tobacco products.

As Santa Cruz County Superintendent of Schools, I have joined with students, families, and community partners in advocating for this critical policy. Following adoption by the Santa Cruz County Board of Supervisors and the Santa Cruz City Council, Capitola now has the opportunity to become the third jurisdiction to enact this ordinance — ensuring that it will take effect countywide by January 1, 2027.

I respectfully encourage your leadership on this issue to protect our public health, environment, and community wellbeing.

Thank you for your consideration.

Sincerely,
Dr. Faris Sabbah
Santa Cruz County Superintendent of Schools
Santa Cruz County Office of Education
www.santacruzcoe.org
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BOARD OF EDUCATION
Mr. Ed Acosta
Mr. Greg Larson
Ms. Sue Roth
Mr. Abel Sanchez
Mr. Bruce Van Allen
Ms. Rachel Williams
400 Encinal Street, Santa Cruz, CA 95060 ⬩ Tel (831) 466-5600 ⬩ Fax (831) 466-5607 ⬩ www.santacruzcoe.org August 21, 2025
Capitola City Council
420 Capitola Ave
Capitola, CA 95010
Re: Support for Banning Filtered Tobacco Products
Dear Mayor Clarke, Vice-Mayor Morgan, and Council Members Jensen, Orbach, and Westman, As Santa Cruz County Superintendent of Schools, I write today to urge your Council to adopt the proposed ordinance banning the retail sale of filtered, rolled tobacco products such as cigarettes and cigarillos within the City of Capitola. This critical policy will help address one of the most pervasive and harmful forms of litter within Santa Cruz County and beyond: toxic cigarette butts.

As you know, in October, the Santa Cruz County Board of Supervisors unanimously passed a groundbreaking ban on the sale of filtered tobacco products in the unincorporated area of the County.

Earlier this year, the City of Santa Cruz became the first incorporated city to follow suit, adopting its own version of this important policy. However, the County ordinance includes an amendment delaying enforcement until at least three local jurisdictions have enacted similar policies. By taking action now, Capitola has the opportunity to become the third jurisdiction to ensure this landmark policy goes into effect countywide by January 1, 2027.

The Santa Cruz County Office of Education (Santa Cruz COE) has long been committed to tobacco use prevention and education. Through our Tobacco Use Prevention and Education (TUPE) program, we provide support, training, and technical assistance to school districts to help them implement tobacco-free policies and practices. We also offer direct education to students and families on the dangers of tobacco addiction, strategies to resist peer pressure, and resources to support quitting tobacco use.

Our students recognize that tobacco waste is not just a litter problem; it is a matter of environmental justice and health equity. Filtered cigarette butts are disproportionately found in lower-income neighborhoods and communities of color. Composed of cellulose acetate, a non-biodegradable plastic, these filters break down into microplastics that bioaccumulate in marine life and leach hazardous chemicals like lead, arsenic, and nicotine into our soil and waterways. They pose a serious threat to children, pets, wildlife, and marine ecosystems. In fact, the World Health Organization has found that cigarette filters offer no proven health benefit over unfiltered cigarettes.

The City of Santa Cruz has already taken a vital step by adopting a resolution in 2021 declaring tobacco waste a public health and environmental threat and following through with a ban on filtered tobacco products. That leadership, paired with the County ordinance, sets the stage for Capitola to complete the 344
Item 9 A.
necessary third step. By doing so, your Council will help protect our beaches, waterways, and public spaces, while advancing public health and environmental stewardship for the entire region.

On behalf of our school community, and in solidarity with students who have worked to clean up tobacco waste and educate others, I urge you to join the County and the City of Santa Cruz in banning the sale of filtered, rolled tobacco products within Capitola. Together, we can make Santa Cruz County a statewide and national leader in ending the environmental and health harms caused by filtered tobacco products.

Thank you for your leadership and commitment to our community.

Sincerely,
Dr. Faris Sabbah
Santa Cruz County Superintendent of Schools
345
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First Reading of an
Ordinance Prohibiting
the Sale of Cigarettes
and Cigars with Filters
City Council
August 28, 2025
346
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Regional Policy Advancements
October 29, 2024
Santa Cruz County Board of Supervisors adopts an
ordinance prohibiting sale of filtered tobacco
products in unincorporated areas of County
June 24, 2025
City of Santa Cruz adopts a similar ordinance
Enforcement begins on January 1, 2027, or on a date at least two additional jurisdictions in the County approve similar ordinance, whichever occurs later
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Capitola Similar Ordinance
Commission on the Environment (March 19, 2025)
COE unanimously recommends City Council adopt a similar ordinance in alignment with County
City Council (April 10, 2025)
City Council held public meeting and received presentation from Public Health Division of Santa Cruz Health Services Agency
Council directed staff to return with an ordinance for formal consideration
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Item 9 A.

Proposed Ordinance
Municipal Code Chapter 5.38
Prohibits sale of flavored tobacco
products by tobacco retailers
Proposed ordinance would amend
Section 5.38.030 of Municipal Code
to prohibit sale of partially
inconsumable tobacco products in
cigarettes and cigars
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Ordinance Language Update
Attempted to simplify but unintentionally
broadened scope
Amended for consistency and enforceability
• Uses “partially inconsumable cigarette or cigar” (not “tobacco product”) • Limited to embedded filters only
• Applies to all potential filter materials
With Capitola’s adoption, enforcement begins
January 1, 2027.
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Intended Outcomes
Proposed ordinance intends to
• Reduce tobacco product waste
• Improve public health
• Promote environmental and wildlife protection
• Conserve resources used to pick up litter
• Support regional litter prevention efforts
• Align with existing municipal policy goals (Chapters 5.38, 8.38) 351
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Community Outreach
Staff conducted outreach to all ten active tobacco
retailers in Capitola
Intent was to share information on proposed
ordinance and gather input on potential impacts
To date, staff has not received
correspondence from retailers
• Correspondance received from
advocacy groups
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Enforcement in Capitola
If adopted, proposed ordinance would take effect 30
days from its passage and adoption.

Enforcement of ordinance would not take place until
January 1, 2027
Similar ordinances have been adopted by

1. County of Santa Cruz

2. City of Santa Cruz
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Item 9 A.

Recommended Action:

Introduce for first reading, by title only, waiving
further reading of text, an ordinance amending
Capitola Municipal Code Section 5.38.030 to prohibit
sale of partially inconsumable cigarettes and cigars as amended by staff
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Item 9 A.

Capitola City Council
Agenda Report
Meeting: August 28, 2025
From: Finance Department
Subject: Capitola Village and Wharf Business Improvement Area Assessments for FY 2025-26
Recommended Action: 1) Conduct the duly noticed public hearing; 2) Adopt a resolution levying the Fiscal Year 2025-26 Capitola Village and Wharf Business Improvement Area (CVWBIA) Assessments and accepting the CVWBIA Annual Plan and budget; and 3) Authorize the City Manager to execute a contract with the CVWBIA nonprofit in an amount not to exceed $90,000.

Background: On June 23, 2005, the City Council adopted Ordinance No. 889 adding Chapter 5.10 to the Capitola Municipal Code and establishing the Capitola Village and Wharf Business Improvement Area (CVWBIA). The CVWBIA assessments are renewed annually and fund various programs that benefit businesses within the CVWBIA district boundaries.

Discussion: On June 12, 2025, the City Council adopted Resolution No. 4433, Resolution of Intention to Levy Business Improvement Assessments for Fiscal Year 2025-26, which set a public hearing for June 26, 2025, in accordance with state law and Chapter 5.10 of the Capitola Municipal Code. Notice of this public hearing was published in the Santa Cruz Sentinel newspaper on Thursday, May 23, 2025.

The CVWBIA is a business-based, self-imposed assessment district in which the assessments are paid by business owners within the district boundary for improvements and activities that support and revitalize businesses as well as attract visitors. The assessment amount for each business is based on the business type and may be a flat fee or an increasing fee based on the number of full-time equivalent employees. Consistent with the FY 2024-25 adopted assessments, the proposed FY 2025-26 assessments are proposed at the same reduced rates.

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

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

In November 2018, voters approved Measure J, which increased the transient occupancy tax (TOT) from 10 percent to 12 percent. It restricted 20 percent of the TOT increase to be used for local business groups’ marketing and community improvements. In February 2019, Council directed that restricted TOT funding be split evenly between the Capitola-Soquel Chamber of Commerce and the CVWBIA. Council also requested that a minimum of 25 percent of restricted TOT revenues be allocated toward community improvements, which may include special events.

The proposed CVWBIA budget includes $35,000 of TOT revenues for FY 2025-26. $14,000 (40%) of the proposed TOT budget is for village enhancement. 355
Item 9 B.

On August 11, 2025, the CVWBIA Advisory Committee held a public meeting to review the BIA Annual Report and Budget (Attachment 2). The Committee voted to recommend the report, budget, and method and basis of levying the assessment for acceptance by the City Council.

Staff recommends that Council adopt the proposed resolution confirming the Fiscal Year 2025- 26 CVWBIA Assessments and adopting the Annual Plan and Fiscal Year 2025-26 budget, unless it receives oral and written protests from the owners of businesses that will pay 50 percent or more of the assessments as mandated by state law.

Staff also recommends that City Council authorize the City Manager to sign an updated contract with the Capitola Village and Wharf Business Improvement Area non-profit group for services identified in the Annual Plan and Fiscal Year 2025-26 budget, specifically the items identified in the budget as the scope of work. The proposed contract is Attachment 3.

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

Attachments:

1. Resolution

2. CVWBIA Advisory Committee recommended BIA Report and Budget

3. Proposed Contract with Capitola Village and Wharf Business Improvement Area non-profit Report Prepared By: Leda Laidlaw-Hunter, Accountant II
Reviewed By: Jim Malberg, Finance Director; Julia Gautho, City Clerk; Samantha Zutler, City Attorney
Approved By: Jamie Goldstein, City Manager
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RESOLUTION NO. ___

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAPITOLA
CONFIRMING THE FISCAL YEAR 2025-26 CAPITOLA VILLAGE AND WHARF BUSINESS

IMPROVEMENT AREA ASSESSMENTS AND ADOPTING THE ANNUAL PLAN AND FISCAL YEAR 2025-26 CVWBIA BUDGET
WHEREAS, the Capitola Village and Wharf Business Improvement Area (CVWBIA) has prepared a report to the City of Capitola for Fiscal Year 2025-26 pertaining to the Business Improvement Area assessments for the CVWBIA under California Streets and Highways Code §36533; and
WHEREAS, that report was filed with the City Clerk on May 22, 2025; and WHEREAS, Capitola Municipal Code §5.10.050 requires annual assessments to be imposed within the CVWBIA pursuant to a formula set forth in City Council Resolution No. 3453 referenced in Capitola Municipal Code §5.10.030, and later amended by Resolution No. 3546 and Resolution No. 4186; and
WHEREAS, on June 12, 2025, the City Council adopted Resolution No. 4433 stating its intention to levy business improvement assessments for Fiscal Year 2025-26, receiving the Annual Report and Fiscal Year 2025-26 Budget, and approving the CVWBIA Assessment Basis/Business Addresses and Assessment Method; and
WHEREAS, pursuant to Resolution No. 4433 the City Council, in accordance with California Streets and Highways Code Section §36535, held a public hearing on June 26, 2025, as provided for in Streets and Highways Code Sections §36524 and §36525, at which time it considered the annual report, the levy of business improvement assessments for Fiscal Year 2025-26, and received oral and written protests and endorsements to the regularity or sufficiency of the proposed business improvement assessments.

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

1. The Fiscal Year 2025-26 Capitola Village and Wharf Business Improvement Area Annual Report, including the Fiscal Year 2025-26 budget, as filed with the City Clerk on May 22, 2025, and received by the City Council on June 12, 2025, as part of Resolution No. 4433, is hereby confirmed and adopted.

2. The adoption of this Resolution shall constitute the Fiscal Year 2025-26 levy of assessments provided for in Chapter 5.10 of the Capitola Municipal Code pertaining to the Capitola Village and Wharf Business Improvement Area zone and rate of assessments adopted by the City Council on August 28, 2025.
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Item 9 B.

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 28 th day of August,
2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Joe Clarke, Mayor
ATTEST:
________________________________
Julia Gautho, City Clerk
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Item 9 B.

EXHIBIT A
Resolution No.

Annual Report & Proposed Fiscal Year 2025-26 Budget
CVWBIA Assessment Basis
CVWBIA Business Listing and Assessment Method
Mission Statement
The objective of the CVWBIA is to provide a unified organization to promote, stimulate and improve the business conditions in the designated area, primarily during the shoulder season, September – May. The belief is that if the lodging properties and short-term rentals are full, the rest of the businesses in the area will benefit.

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

In FY 2019-20 CVWBIA began to receive a portion of the Transient Occupancy Tax (TOT) collected by the City and made commitments based on projected TOT revenues. In January 2023 storm related flooding caused major damage to the wharf and some village businesses. Recovery has moved swiftly but business has not returned to pre-storm levels. FY 2025-26 assessments will remain at FY 2024-25 levels.

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

1. Website – In 2021-22 the CVWBIA marketing team created a new, up to date, mobile compatible, website (www.capitolavillage.com) for ease of use and connectivity to BIA member’s businesses, lodging and short-term rentals. Each member has a unique page with links to their individual websites. There is a schedule of events and other helpful features. Visitors can sign up on the site to receive newsletters. This process will continue in 2025-26 as technology changes quickly. We will also take advantage of opportunities to direct visitors to our website through QR Codes for special events, parking, and other visitor information.

Visitors can now access members’ website or business phone directly from the BIA website.

Monthly summaries of traffic to the site have shown the businesses the value of the website.

The website is managed by Craig Nunes, Board Member and Volunteer Web Admin.

2. Social Media – Our Communication Team is Opposite of East, Santa Cruz. They create a monthly newsletter, manage all our social media channels and plan new avenues to promote the village. Their blogs and itineraries are shared on social media channels and are available on the website. Our email newsletters are sent to over 24,000 subscribers each month. Our Facebook page has over 22,000 followers with our top 5 cities being: San Jose, Santa Cruz, Modesto, Sacramento, and Capitola. Our Instagram is growing the fastest with over 25,000 359
Item 9 B.
active followers. The purpose of the Communication Team is to collectively promote the Capitola Village businesses and to be a resource for ongoing growth. Our Village Ambassador continues to develop relationships with our members to facilitate sharing their promotions and announcements. She also creates spotlight features of business owners for the website.

3. Advertising – While placing an emphasis on our social media development, there is still a need for carefully placed advertising in quality visitor publications. We are constantly monitoring these publications for the ones with the most effective online presence. In addition, in 2024-25 the BIA continued the television promotion on Hulu. With Hulu we can target very specific audiences by income levels and zip codes. The analytics are quite extensive as well.

We are focusing on Sacramento, San Francisco and the Central Valley. This campaign will continue in 2025-26. We are adding radio promotions and exploring additional TV.

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

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

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

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

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

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

8. Public Works and Village Enhancement – The CVWBIA contributes annually to the City of Capitola Public Works Department. Our contribution is used to help maintain the Village and Wharf. This year we are concentrating on landscaping and cleanliness of the village both in public spaces and private planting areas. The BIA has been instrumental in providing and maintaining signage for Long Term Parking in Lots 1 & 2. The CVWBIA is developing a directory to be placed in the village featuring mosaic art by the artists who created the mosaics for the wharf.
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Capitola Village & Wharf Business Improvement Area
Assessment Basis
The method of assessment classifies businesses within the CVWBIA boundaries into nine categories:

1. Retail / Service businesses

2. Restaurant - Full Bar

3. Restaurant - Beer and Wine

4. Restaurant - No Alcohol

5. Wine/Beer Service

6. Seasonal Food Service

7. Office and Professional businesses / Specialty

8. Short-term Rental businesses

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

The following table shows the assessment fees for the proposed CVWBIA for FY 2025-26 at same level as last fiscal year.

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

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

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

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

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

Late Charge. No late charge will be assessed with the FY 20256-26 dues.

Delinquencies. CVWBIA has a clear policy relative to delinquent assessments. Businesses that have not paid their assessment by October 31, 2025, will be removed from the CVWBIA website and brochure. They will be ineligible to participate in any CVWBIA activity. Assessments that have not been paid by January 31, 2026, may be sent to collections. 362
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Capitola Village & Wharf Business Improvement Area Estimated Actual for FY 2023-24, Adopted FY 2024-25 and Proposed Budget for FY 2025-26 363
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Capitola Village & Wharf Business Improvement Area
Budget Discussion
The CVWBIA will begin the Fiscal Year 2025-26 with an estimated fund balance of $23,556.

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

Expenditures:

Summary. The proposed expenditures are divided into these categories: Administration $18,300 City Services $7,200, Marketing & Village Enhancement $100,000, and Special Events $40,000.

The following is a roster of open businesses in the assessment area as of June 2, 2024.

Capitola Village & Wharf Business Improvement Area
Business Listing and Assessment Method
Business Type Assessment Method Estimate Assessment
AM = Associate Member Associate Member AM $405
F1 = Restaurant Full Bar Per employee category: 6-10 EEs, >10 EEs F1 $7,920 F2 = Restaurant Beer & Wine Per employee category: 0-5 EEs, 6-10 EEs, >10 EEs F2 $3,255 F3 = Restaurant No Alcohol Per employee category: 0-5 EEs, 6-10 EEs F3 $4,095 F4 = Wine & Beer Service Flat fee F4 $1,575
F5 = Seasonal Food Flat fee F5 $210
H = Hotel/Motel/Inn Flat fee per unit or room H $9,180
O = Office/Professional Flat fee O $1,530
R = Retail/Service Per employee category: 0-5 EEs, 6-10 EEs R $13,939 SR = Short Term Rental Flat fee per unit SR $11,475
Total $53,584
Business Name Type FY 25-26
Est. Size
FY 25-26
Amount
Paradise Beach Grille F1 11+ $1,080
Shadowbrook Restaurant F1 11+ $1,080
Zelda's F1 11+ $1,080
Britannia Arms Pub & Rest. F1 0 - 10 $720
Bay Bar & Grill F1 0 - 10 $720
The Sand Bar F1 0 - 10 $720
Margaritaville F1 11+ $1,080
Pete's Fish House F1 11+ $1,080
El Toro Bravo F2 0 - 5 $368
Thai Basil F2 0 - 5 $368
Geisha Japanese Restaurant & Tea House F2 0 - 5 $368
My Thai Beach / Sea Side Siam F2 0 - 5 $368
Caruso's Tuscan Cuisine F2 0 - 5 $368
Avenue Café F2 0 - 5 $368
Tacos Moreno 3 F2 0 - 5 $368
Trestles Restaurant F2 6 - 10 $683
Mr. Toots Coffee & Tea F3 0 - 5 $315
Pizza My Heart F3 6 - 10 $630
Castagnola Deli & Café F3 0 - 5 $315
Polar Bear Ice Cream F3 6 - 10 $630
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Business Name Type FY 25
-26
Est. Size
FY 25-26
Amount
Mijos Taqueria F3 0 -5 $315
Sandcastle Café F3 0 -5 $315
Schneider Consulting LLC dba Boba Bay F3 0 -5 $315
La Marea Café F30-5 $315
Lost Gatos Meats Capitola F30-5 $315
Armida Winery F4 n/a $315
Capitola Wine Bar & Merchants F4 n/a $315
Capitola Tap House F4 n/a $315
Brewtopia831 F4 n/a $315
Left Coast Sausage Worx F5 n/a $210
Venetian HotelH 19 $3,420
Capitola Beach Suites aka Harbor LightsH 10 $1,800
Inn at Depot HillH 13 $2,340
Capitola HotelH 10 $1,800
David Lyng & AssociatesO n/a $90
Katz & LapidesO n/a $90
Michael Lavigne Real EstateO n/a $90
Newman & Marcus,LLPO n/a $90
Suess Insurance AgencyO n/a $90
LattaO 0 -5 $90
Ted Mendoza and Lisa Salinero Real EstateO n/a $90
Law Offices of Sam StoreyO n/a $90
John H. McSpaddenO n/a $90
Miles J. Dolinger, Attorney at LawO n/a $90
Art of Energy (Visions by Sheena)O n/a $90
Capitola Village MassageO n/a $90
Yellow BusO n/a $90
Revest Homes, Inc.O n/a $90
Monet Salon
O n/a $90
Community CPA
O n/a $90
Bare Skin & Body
O n/a $90
Law Offices of Peter Rausch, Jr.

O n/a $90
Keenly Financial Inc.

O n/a $90
Wiseman ConstructionO $90
Andren Homes Property Management
O n/a $90
MRA Sales, dba Capitola Beach Co.R 0 -5 $315
Big Kahuna Hawaiian ShirtsR 0 -5 $315
Craft Gallery R 0 -5 $315
Craft Gallery AnnexR 0 -5 $315
Euphoria Rio MixR 0 -5 $315
Hot FeetR 0 -5 $315
KickbackR 0 -5 $315
Nubia SwimwearR 0 -5 $315
OceaniaR 0 -5 $315
Phoebe'sR 0 -5 $315
Rainbow City LimitR 0 -5 $315
Slap HappyR 0 -5 $315
Super SilverR 0 -5 $315
Sweet AsylumR 0 -5 $315
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Business Name Type FY 25
-26
Est. Size
FY 25-26
Amount
YvonneR 0 -5 $315
Parking at the MercantileR 0 -5 $315
Parking at the TheaterR 0 -5 $315
Lumen GalleryR 0 -5 $315
Capitola ReefR 0 -5 $315
Art InspiredR 0 -5 $315
Sea Level T'sR 0 -5 $315
Vanity by the SeaR 0 -5 $315
Xandra SwimwearR 0 -5 $315
Quality MarketR 0 -5 $315
Capitola Seashells R 0 -5 $315
Pueblo Viejo ImportsR 0 -5 $315
Ethos Santa CruzR 0 -5 $315
Tony Pagliaro PhotographyR 0 -5 $315
Mercantile ArcadeR 0 -5 $315
Carousel Taffy & TreatsR 0 -5 $315
Capitola Candy CaféR 0 -5 $315
Santa Cruz ApparelR 0 -5 $315
Capitola PawsR 0 - 5 $315
Nectar California LLCR 0 - 5 $315
Katalinas Boutique LLCR 0 -5 $315
Clementine & Co.R 0 - 5 $315
Coastal Life R 0
- 5 $315
Out West Design Company
R 0 - 5 $315
Studio About Her
R 0 - 5 $315
Play Date
R 0-5 $315
Capitola Family Home SR1 $135
Capitola Pelican House SR1 $135
Capitola Venetian #5 SR1 $135
Capitola Venetian #14 SR1 $135
Capitola Venetian #8 SR
1 $135
Capitola Beach Bungalow SR1 $135
Capitola Beach Cottage SR1 $135
Capitola Cliffs Unit 3 SR1 $135
Good Time SR1 $135
Relaxing Family Condo by the River SR1 $135
Bridgepoint Bungalow SR1 $135
Capitola Cliffs Unit 4 / Begonia Beach Cottage SR2 $270 Capitola Venetian Unit 3 SR1 $135
Capitola Venetian #1 SR1 $135
Oceanfront Capitola Tuscan Villa SR1 $135
Capitola Cliffs #4960-2 SR1 $135
Capitola Venetian #11 SR1 $135
Beach Charmer SR1 $135
Capitola Venetian #2 SR1 $135
Castillo Properties SR2 $270
Capitola Cliffs Unit #1 SR
1 $135
Deborah Cohen SR1 $135
Bayside Capitola Beach Condo SR1 $135
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Business Name Type FY 25
-26
Est. Size
FY 25-26
Amount
Capitola Vista #1 SR
1 $135
Capitola Vista #2 SR
1 $135
Capitola Vista #3 SR
1 $135
Capitola Vista #4 SR
1 $135
Capitola Sea Spray SR1 $135
Creekside Cottage SR1 $135
Capitola Cherry Ave SR1 $135
Luxurious Historic Windmill Silo House SR2 $270
Capitola Bluegum A & B SR2 $270
Grandma's Nest Capitola Venetian #9 SR1 $135
CV Retreat with Garage SR1 $135
Capitola Seashell Sanctuary Units A and B SR2 $270
Vista Cortile Condo SR1 $135
Capitola Village Deco Beach House SR1 $135
Capitola Venetian #16 SR1 $135
Capitola Lawn Way #5-4 SR1 $135
Capitola Breeeze Condo & Seaview Condo SR2 $270
Luxury Home in CV with Hot Tub SR
1 $135
Capitola Riverview #421 SR1 $135
Capitola Riverview #323 SR1 $135
An Iconic Oceanfront Pink Venetian SR1 $135
114 - 116 Lawn Way LLC SR2 $270
Capitola Village Retreat Units A & B SR2 $270
Capitola Cliff House SR
1 $135
208 Monterey Ave #A SR
1 $135
James Lin SR
1 $135
Urban Chic Living / Life is Better at Capitola
Beach SR
2 $270
Capitola Oceanside SR
1 $135
Capitola Dreamin' SR
1 $135
Capitola Riverview #402 SR
1 $135
Capitola Riverview #310 SR
1 $135
Capitola Riverview #312 SR
1 $135
Oceanside Dream Beach House SR
1 $135
Capitola Trestles #5 SR
1 $135
Paradise Properties Capitola Village #321-B SR
1 $135
Bombora LLC Capitola Village #419 SR
2 $270
Colorful Capitola Village Cottage Unit A & UnitB SR
2 $270
Five Bedroom Beach Front Home in CV SR
1 $135
Capitola Monterey 109-3 & 109-10 SR
1 $135
Capitola Riverfront Home with Parking SR
1 $135
Surf Loft SR
1 $135
425 Capitola Ave SR
1 $135
Beach Getaway in the Heart of CV / Brand New
Luxury CV Home SR
2 $270
CV Condo, Dog Friendly, Free Parking SR
1 $135
CV Home with Parking Spot SR
1 $135
Riverview Retreat (A) / Oceanview Oasis (B) SR
2 $270
Capitola Hideaway SR
1 $135
Bella Capitola SR
1 $135
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Business Name Type FY 25-26
Est. Size
FY 25-26
Amount
Kohala Properties 831 SR 1 $135
109 Monterey Avenue#9 SR 1 $135
Capitola Village Bungalow SR 1 $135
Capitola Village Hideaway SR 1 $135
321 Riverview Ave. SR 1 $135
Capitola Seaglass Cottage SR 1 $135
222 San Jose Ave. SR 1 $135
201 Monterey Avenue Suite 2 SR 1 $135
109 Monterey Avenue#2 & #7 SR 2 $270
Lawn Way SR 1 $135
206 1/2 California Ave. SR 1 $135
108 Park Place Unit B SR 1 $135
1532 Wharf Rd SR 1 $135
210 Stockton Ave. Unit B SR 1 $135
318 Capitola Ave. #3 SR 1 $135
321 Capitola Ave. SR 1 $135
327 Riverview Ave. Unit B SR 1 $135
329 Cherry Ave. SR 1 $135
4960 Cliff Dr. #1 SR 1 $135
502 Beulah Dr. SR 1 $135
206 Stockton Ave SR 1 $135
306 Riverview Ave. SR 1 $135
304 Riverview Ave. SR 1 $135
Fuse Architects O n/a $90
Surf City Properties O n/a $90
O'Neal Properties O n/a $90
Beach Nest Vacation Rentals O n/a $90
Kendall and Potter Property Management O n/a $90
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4938-5665-3153 v1

PROFESSIONAL SERVICES AGREEMENT

STANDARD FORM
THIS AGREEMENT is entered into on August 28, 2025, by and between the City of Capitola, a Municipal Corporation, hereinafter called "City" and Capitola Village and Wharf Business Improvement Area, a California non-profit corporation, hereinafter called "Consultant." WHEREAS, City desires certain services described in Attachment 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 set forth in Attachment 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 Attachment One unless such additional work is approved in advance and in writing by City.

Consultant shall meet with, City Manager or other City personnel, or third parties as necessary designated by the City Manager, on all matters connected with carrying out of Consultant's services described in Attachment One. Such meetings shall be held at the request of either party hereto.

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.
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The City Manager may authorize a staff person to serve as his or her representative for conferring with Consultant relative to Consultant's services. 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. The Consultant must perform and the City will inform the Consultant if the work is not satisfactory. 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.

The City shall, upon reasonable notice, be provided access to and the right to examine such books, documents, papers or records as may be reasonably required for the purpose of auditing Consultant's assessment revenues and expenditure of funds appropriated under the terms of this agreement. Such review is recommended annually or more frequently at the request of the City Manager
SECTION 4
Fees and Payment
In consideration for the City's agreement to authorize Consultant to perform the services set forth in Attachment 1 in lieu of the City itself providing those services. The City will reimburse the Consultant for work completed consistent with the scope of work within thirty (30) days of receiving invoices.

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 Attachment One shall be made without the City's written approval. Any change requiring the City to pay monetary compensation to Consultant shall be approved in advance in writing by the City.

SECTION 6
Time of beginning and Schedule for Completion
Consultant shall begin work upon the approval of this contract.

SECTION 7
Termination
City will provide Consultant with written notice of termination that identifies deficiencies 90 days prior to contract termination. Consultant shall have 60 days to cure City's identified deficiencies after notice is given in writing. Consultant may terminate this Agreement upon 90 days written notice to City should the City fail to fulfill its duties as set forth in this Agreement. 370
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If notice of termination is not given as described above, this contract shall terminate at the end of one (1) year following execution of the contract.

SECTION 8
Insurance
Consultant shall procure and maintain for the duration of the contract 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 Liability coverage (occurrence Form CG 0001).

2. Workers' Compensation insurance as required by the State of California Minimum Limits of Insurance
Consultant shall maintain limits no less than:

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

2. Director and Officer insurance
a. $1,000,000 per occurrence and $1,000,000 in aggregate Other Insurance Provisions
The commercial general 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 insureds 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 by either party, except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. 371
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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.

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
Consultant agrees to indemnify, defend (with counsel acceptable to the City) and hold City, its officers, agents and employees (collectively the "City"), from and against any and all claims, demands, actions, damages, or judgements, including reasonable associated costs of defense from Consultant's performance of this Agreement. In addition, should Consultant subcontract with any person or firm in connection with the services to be provided to City pursuant to Attachment One, Consultant shall require said person or firm to similarly indemnify the City.

SECTION 10
Civil Rights Compliance/Equal Opportunity Assurance
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. Either the Santa Cruz County Superior or 372
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Municipal Court shall have jurisdiction over any such action and that Court shall be authorized to determine which party is the prevailing party and what amount constitutes reasonable attorneys' fees to be awarded to the prevailing party.

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 that particular Agreement, which expressly states that its purpose is to amend this particular Agreement, and which is duly executed by the City and an authorized representative of the 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.

SECTION 14
Miscellaneous Provisions

1. Project Manager. City Manager 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 and Corporate Status. Consultant warrants that it has complied with any and all applicable governmental licensing requirements, and that it is duly incorporated and authorized to do business as a not-for profit corporation under the laws of the State of California.

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 records or other documents generated by Consultant pursuant to this Agreement are, and shall remain, the property of the City. The Consultant shall be permitted to retain copies for information and reference. The 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.
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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 shall defend, indemnify, and hold the City and its agents, servants, employees harmless from any and all claims and liabilities alleging that City employment benefits are due to any employee, agent, or subcontractor of the Consultant.

8. 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
Capitola Village and Wharf Business
Improvement Area
By:__________________________________
Jamie Goldstein, City Manager
By:__________________________________

Dated:________________________________ Dated:_______________________________ Approved as to Form:
_______________________________
Samantha W. Zutler, City Attorney
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Attachment One:

Scope of Work
FY 23/24 FY 24/25 FY 25/26 FY 25/26 FY 25/26
Actual Adopted
Budget
Assessment
Budget TOT Budget Total Budget Notes
Beginning Fund Balance $ 32,486 44,242 $ 18,000 $ 18,000 $ Revenues
Member Assessment 53,854 53,370 55,000 55,000
Associate Assessment 0 0
Assessment Revenues - Trade 0 0 0
Late Fees 0 0 0
TOT Revenue 36,761 37,000 0 35,000 35,000
Sip N' Stroll 41,704 54,000 54,000 54,000
Cookie Walk 2,500 5,000 5,000
Interest Revenue 1,936 100 100 100
Total Revenues $ 146,970 134,254 $ 114,100 $ 35,000 $ 149,100 $ Total Source of Funds 178,496 $ 179,456 $ 132,100 $ 35,000 $ 167,100 $ Expenditures
Charitable Donations 6,000 6,000 6,000
CDS Direct Distribution 3,028 4,000 4,000 4,000
Doubtful Accounts 8,376 5,000 3,000 3,000 Scope of Work Insurance 0 2,000 2,000 2,000
Office Supplies 418 1,000 500 500
Storage Unit 1,836 1,700 2,000 2,000 Scope of Work
Renewal 636 800 800 800 Scope of Work
Total Administration $ 20,500 14,293 $ 18,300 $ - $ 18,300 $ City Accounting Services 4,200 $ 4,200 $ 4,200 $ 4,200 $ Scope of Work City Public Works 3,000 3,000 3,000 3,000 Scope of Work Total City Services $ 7,200 7,200 $ 7,200 $ - $ 7,200 $ Ambassador $6,600 $7,200 $6,000 $6,000 Scope of Work
Communications Manager 25,500 18,000 36,000 36,000 Scope of Work Directories Printing 74 2,000 4,500 4,500
VSC TV Partnership 9,407 0 25,000 25,000
VSC Map 700 400 0 0
Insurance 1,435 2,000 0
Miscellaneous Print 2,990 0 0
Miscellaneous Advertising 15,000 0 0
Miscellaneous Marketing 0 0
Monterey Travel Magazine 600 0
Print Explore 1,000 0
Social Media Boost 2,250 3,000 1,500 1,500
Website Management 7,199 6,000 10,000 10,000
Video Photo Production 6,000 3,000 3,000
Village Enhancement 13,340 16,000 0 14,000 14,000
Total Marketing $ 77,200 69,496 $ 86,000 $ 14,000 $ 100,000 $ Holiday & Events $474 $15,000 $0 $4,000 $4,000
Palm Tree Lights 0 0 0
Sip N' Strol1 - Cookie Walk 54,547 36,000 36,000 36,000 Total Special Events $ 51,000 55,021 $ 36,000 $ 4,000 $ 40,000 $ Total Expenditures $ 155,900 146,011 $ 147,500 $ 18,000 $ 165,500 $ Ending Fund Balance 32,486 $ 23,556 $ 1,600 $
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4916-4468-0033 v1
Capitola City Council
Agenda Report
Meeting: August 28, 2025
From: Community and Economic Development Department
Subject: Capitola Mall Update and Amendment to Agreement with Ben Noble Planning
Recommended Actions: 1) Receive update on the Capitola Mall and Housing Element implementation Programs 1.6 and 1.7 related to the City’s zoning amendments; 2) Provide direction on the preferred approach to updating the City’s zoning; 3) Adopt a resolution amending the FY 2025-26 Budget to allocate funding for Housing Element Implementation; and 4) Authorize the City Manager to execute Amendment 1 to the Professional Services Agreement with Ben Noble Planning to assist in Housing Element implementation.

Background: As part of the City’s adopted 6th Cycle Housing Element, Program 1.6 (Development Regulations) and Program 1.7 (Shopping/Commercial Center Redevelopment) identify the Capitola Mall site as a key opportunity for redevelopment to help meet regional housing needs while supporting economic development and community character.

Program 1.6 directs the City to review and revise Chapter 17.88, Incentives for Community Benefits, to modify the required findings for future redevelopment of the Capitola Mall Site to require compliance with objective standards, expand the Community Benefits zoning boundary; and increase the incentivized redevelopment potential on the Capitola Mall Site to allow a maximum Floor Area Ratio (FAR) of 2.0, excluding parking garages, and a maximum building height of 75 feet.

Program 1.7 addresses the changing retail environment and directs the City to study and enable mixeduse redevelopment of the Capitola Mall site. The program calls for amending Chapter 17.88 by the end of 2025 to:

1. Develop land use policies to facilitate shopping center redevelopment with a strong sense of urban design cohesion.

2. Establishes the Capitola Mall as all the properties between Clares Street, 41st Avenue and Capitola Road.

3. Allow for building height up to 75 feet for Mall Redevelopment.

4. Define “Mall Redevelopment” to mean a mix of uses that includes residential and retail/commercial components.

5. Exclude parking garages from the project FAR calculations.

6. Adopt objective development standards to facilitate mall redevelopment.

Housing Element Program 1.7 also direct the City to annually work with property owners and developers to pursue redevelopment opportunities of the Capitola Mall site. In accordance with this program, and to gather feedback in preparation for the zoning code updates for the Mall site, staff met with a representative of Merlone Geier Partners (MGP), the majority owner of the Capitola Mall. At the initial meeting in May, staff learned that MGP was interested in the City pursuing a form-based code to create greater certainty in the review process. At a follow-up meeting in June, staff had the opportunity to ask more questions about the request for form-based code and received insight on similar zoning updates in Alameda, CA. Since the initial two meetings, staff have been working with Ben Noble Planning to identify the steps and costs associated with implementing a form-based code. At the third meeting with MGP on July 23, 2025, staff reported the estimated cost ($150,000–$200,000) and timing (1 year) of adopting a form-based code for the mall site. Following the meeting, on August 1, 2025, staff received an email from MGP requesting a change in direction and expressing MGP’s preference to fast-track less comprehensive updates that could be adopted before the end of 2025. 385
Item 9 C.
4916-4468-0033 v1
On May 23, 2024, the City Council authorized a Professional Service Agreement with Ben Noble Planning in the amount of $124,375 to implement Housing Element programs. The funding for this agreement was a mix of REAP 2.0 grant funds ($64,375) and General Plan funds ($60,000). The City adopted the majority of the Housing Element implementation in 2024, but incurred added costs associated with the multifamily amendments. The Professional Services Agreement for $124,375 has a remaining balance of $46,611.

Staff recommends amending the PSA with Ben Noble to include additional funds for Housing Element implementation of Programs 1.6 and 1.7. The additional funds, ranging from $45,781 to $150,000, is due to the additional costs associated with multifamily amendments and the higher costs associated with Program 1.6 and 1.7, as discussed below.

Discussion: To implement Programs 1.6 and 1.7 and facilitate redevelopment of the Capitola Mall, the City must update its Zoning Code and General Plan. Staff, in coordination with Ben Noble Planning, has identified three potential approaches for consideration, each with varying timelines, levels of public engagement, and costs.

Option 1 – Objective Standards: This option would amend multiple sections of the Zoning Code and General Plan to replace discretionary review with objective standards, increase height and FAR allowances, and update objective standards with anticipated building types. It would include three stakeholder meetings, one community workshop, and interim presentations to the Planning Commission and City Council to review preliminary standards prior to publishing the public draft. This approach completes the project in April 2026 to allow for input and refinement. Estimated cost: $75,972. (See Attachment 2) If the City were to take this approach, property owners within the mall block could submit a redevelopment plan in May 2026, to be reviewed against the new objective standards and subject the increased height and FAR.

Option 2 – Expedited Objective Standards: This option includes the same Zoning and General Plan amendments as Option 1 but incorporates a more limited public engagement process. Public engagement would be limited to initial stakeholder input and public participation through public hearings at Planning Commission and City Council meetings. This approach allows completion by December 31, 2025, with most work occurring early in the process. Estimated cost: $45,781 (See Attachment 1). If the City were to take this approach, property owners within the mall block could submit a planning application for redevelopment in January 2026, to be reviewed against the new streamlined objective standards and subject the increased height and FAR. MGP has requested this option.

Option 3 – Form-Based Code: This approach would replace conventional zoning for the site with a formbased code, which focuses on the physical form and relationship of buildings to streets, sidewalks, and public spaces. It would establish cohesive design standards for height, massing, setbacks, architecture, landscaping, and public amenities, and could require commercial uses along main streets or gathering areas. A form-based code also includes a regulating plan, which is a map that designates where different building form standards apply. This plan guides the character and intensity of the development within the mapped area. This process provides the highest level of design control and predictability, but requires significant time, funding, and coordination with the property owners. A unique feature of this option is a multi-day workshop design-charette to receive early input from the property owners and the public.

Estimated cost: $150,000. After receiving the comments from MGP related to timing, the consultant was able to cut back the timeline from one year to approximately 8 months. (See Attachment 3) If the City were to take this approach, property owners within the mall block could submit a redevelopment plan in May 2026, to be reviewed against the highly prescriptive form-based code and regulating map, and subject the increased height and FAR.
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Item 9 C.
4916-4468-0033 v1
Option 1 – Objective
Standards
Option 2 – Expedited
Objective Standards
Option 3 – FormBased Code
Description Amends Zoning Code
and General Plan to
replace discretionary
review with objective
standards; increases
height/FAR; tailored to
likely building types and
includes multiple public
outreach opportunities
Same as Option 1, but
eliminates three
stakeholder meetings, one
community workshop, and
interim Commission and
Council review.

Zoning framework
based on building form,
public space, and
streetscape design;
establishes cohesive,
mixed-use vision for
the site.

Timeline for
Completion
April 2026 Jan. 2026 May 2026
Estimated Cost $75,972 $45,781 $150,000
Public
Engagement
Stakeholder meetings,
workshop, interim
reviews
Initial stakeholder input +
public hearings
Early engagement with
multi-day workshop
design-charette and
coordination with
property owner and
residents
Key Advantages Balances timely
completion with public
engagement;
substantially complies
with State housing law;
predictable design
outcomes and
placemaking.

Quickest and least
expensive option; meets
Housing Element
requirements; aligns with
property owner preference;
predictable design
outcomes and
placemaking
High-quality,
predictable design
outcomes; supports
walkability and public
space; allows
comprehensive site
planning.

Key
Considerations
Less prescriptive than
form-based code; more
community
engagement; more
PC/CC involvement;
slightly longer and
increased City costs as
compared to Option 2.

Staff/consultant led; limited
community engagement;
less PC/CC involvement;
less time to carefully
consider and develop
standards.

Highest cost; longest
timeline; likely requires
property owner
participation for
success.

For all options, an economic consultant will assist in the review of the updates with the goal of ensuring redevelopment has a fiscal positive outcome for both the developer and the City.

Fiscal Impact: The Professional Services Agreement for $124,375 has a remaining balance of $46,611.

The original contract allocated $64,375 for Housing Element implementation and $20,000 per year for annual code updates over three years ($60,000 total). The contract spans three fiscal years, beginning in FY 2024-25.

Given the ongoing changes to state housing laws, staff recommends reserving the remaining $46,611 for code updates over the next two years and amending the contract to cover the full cost of the option selected by the City Council.
387
Item 9 C.
4916-4468-0033 v1
The resolution, budget amendment, and contract amendment each have sections to be updated (description and cost) depending on the option selected by City Council, as follows:

Option 1 Objective Standards $75,972
Option 2 Expedited Objective Standards $45,781
Option 3 Form Based Code $150,000
Mall-related updates are part of the Housing Element implementation and will be funded through the General Plan Special Revenue Fund.

Attachments:

1. Option 1: Objective Standards

2. Option 2: Expedited Objective Standards

3. Option 3: Form Based Code

4. Resolution

5. Budget Amendment

6. Contract Amendment
Report Prepared By: Katie Herlihy, Community and Economic Development Director Reviewed By: Julia Gautho, City Clerk; Samantha Zutler, City Attorney Approved By: Jamie Goldstein, City Manager
388
Item 9 C.

BEN NOBLE
City and Regional Planning
510.559.6901 | [email protected]
  www.bnplanning.com  
August 15, 2025
Katy Herlily, AICP
Community & Economic Development Director
City of Capitola
420 Capitola Avenue, Capitola, CA 95010
Re: Capitola Mall Proposal
Dear Katie,
Below is my proposed scope, schedule, and budget to prepare Zoning Code and General Plan amendments to implement Housing Element Program 1.7 (Capitola Mall Redevelopment). I will complete this work in partnership with Ryan Call, an architect with the urban design consulting firm Urban Field Studio. Ryan’s resume is attached to this proposal.

SCOPE
Task 1: Project Initiation
a. Background Material Review
I will compile and review background materials related to the project, including the General Plan, Zoning Code, economic analysis, prior Capitola Mall redevelopment applications, and other relevant information.
b. Stakeholder Meetings (Round 1)
I will prepare materials for and attend two Zoom stakeholder meetings with the Capitola Mall representatives, other mall property owners, and other stakeholders as needed. c. Planning Commission Meeting 1
I will prepare materials for and attend a Planning Commission meeting to introduce the Capitola Mall project and receive initial feedback on key project issues.

Task 2: Preliminary Objective Standards
a. Preliminary Standards Outline
I will prepare a brief memorandum outlining recommended standards and other needed Zoning Code Amendments to implement Housing Element Program 1.7.
b. Stakeholder Meetings (Round 2)
I will prepare materials for and attend two stakeholders to receive feedback on the preliminary standards outline.
389
Item 9 C.
  www.bnplanning.com  
c. Community Workshop
I will prepare materials for and attend a community workshop to receive public feedback on initial concepts for Capitola Mall standards.
d. Planning Commission Meeting 2
I will prepare materials for and attend a Planning Commission meeting to receive public feedback on the initial concepts for Capitola Mall standards.
e. City Council City Council Meeting
I will prepare materials for and attend a City Council meeting to receive public feedback on the initial concepts for Capitola Mall standards.

Task 3: Draft Amendments
a. Staff Review Draft
I will prepare amendments to the Zoning Code and General Plan to implement Housing Element program 1.7 (concerning the Capitola Mall). Expected amendments include the following:
 Revisions to Zoning Code Chapter 17.88 and other chapters as needed to implement Housing Element Programs 1.7.
 Objective standards for Mall redevelopment, with revisions to Zoning Code Chapter 17.82 as needed.
 General Plan Land Use Element amendments to bring Capitola Mall policies and standards into conformance with the Zoning Code amendments
b. Stakeholder Meetings (Round 3)
I will meet with Capitola Mall representatives and other stakeholders via Zoom to discuss the draft amendments.
c. Public Review Draft
I will incorporate staff input and stakeholder feedback to prepare public review draft amendments.

Task 4: Public Review and Adoption
a. Planning Commission Hearings (2)
I will prepare materials for and attend two Planning Commission hearings on the amendments. b. City Council Hearing
I will prepare materials for and attend a City Council hearing on the amendments.

Task 5: Project Management and Engagement
a. Subconsultant Coordination
I will coordinate work products, review draft products, and provide direction to Urban Field Studio and the economics subconsultants.
b. City Coordination Meetings
I will participate in weekly coordination meetings with City staff. 390
Item 9 C.
  www.bnplanning.com  
c. Public Announcements and Updates
I will assist City staff to provide public announcements and updates on the Capitola Mall project.

SCHEDULE
Table 1 shows an estimated schedule to complete the scope of work described above.

Table 1: Project Schedule
Task Completion Date
Task 1: Project Initiation
Background Material Review September, 2025
Stakeholder Meetings (Round 1) September, 2025
Planning Commission Meeting 1 October, 2025
Task 2: Preliminary Objective Standards
Preliminary Standards Outline October, 2025
Stakeholder Meetings (Round 2) November, 2025
Community Workshop November, 2025
Planning Commission Meeting 2 December, 2025
City Council City Council Meeting December, 2025
Task 3: Draft Amendments
Staff Review Draft January, 2026
Stakeholder Meetings (Round 3) January, 2026
Public Review Draft February, 2026
Task 4: Public Review and Adoption
Planning Commission Hearings (2) March, 2026
City Council Hearing April, 2026
BUDGET
As shown in Table 2, the estimated cost for me to complete the task described above is $75,972, which includes $20,000 for Urban Field Studio, $7,500 for an economist subconsultant, and a $4,352 contingency.

391
Item 9 C.
  www.bnplanning.com  
Table 2: Budget

Tasks Hours Cost
Task 1: Project Initiation
a. Background Material Review 4 $680
b. Stakeholder Meetings (Round 1) 8 $1,360
c. Planning Commission Meeting 1 20 $3,400
Task 2: Project Approach
a. Project Approach Outline 8 $1,360
b. Stakeholder Meetings (Round 2) 8 $1,360
c. Community Workshop 25 $4,250
d. Planning Commission Meeting 2 20 $3,400
e. City Council City Council Meeting 20 $3,400
Task 3: Draft Amendments
a. Staff Review Draft 20 $3,400
b. Stakeholder Meetings (Round 3) 8 $1,360
c. Public Review Draft 15 $2,550
Task 4: Public Review and Adoption
a. Planning Commission Hearings (2) 35 $5,950
b. City Council Hearing 20 $3,400
Task 5: Project Management
a. Subconsultant Coordination 15 $2,550
b. City Coordination Meetings 15 $2,550
c. Public Announcements and Updates 15 $2,550
Total Hours 256
Billing Rate $170
Total Labor $43,520
Urban Field Studio Subconsultant $20,000
Economist Subconsultant $7,500
Travel Expenses $600
Contingency (10%) $4,352
TOTAL COST $75,972
392
Item 9 C.
  www.bnplanning.com  
Please do not hesitate to contact me with any additional questions. I look forward to continuing to work with you on this project.

Sincerely,
Ben Noble
City and Regional Planning
393
Item 9 C.

Ryan Call
Urban Field Studio
Partner, AIA
[email protected]
With over 24 years of experience in planning and architectural design, Ryan has developed a particular expertise in master planning mixed-use urban communities with a focus on vibrant retail districts and public spaces. His primary interest lies in the strategic aspects of the design and development process where he has worked on a variety of projects from neighborhood shopping centers to regional shopping centers, to mixed-use multi-block districts. His presentation expertise has proven key to the success of many projects, especially during the critical public process and approvals phases.

MIXED-USE MASTER PLANS
Bayfair Mall Redevelopment Implementation Plan, San Leandro, CA Palo Alto Mixed-Use Typologies Site Testing
University of Chicago 53rd Street District Mixed-Use Master Plan University of Chicago Washington Park Innovation Center Master Plan Mueller Aldrich Street District, Austin, TX
Scotts Valley Town Center, Scotts Valley, CA
NewPark Mall Mixed-Use Specific Plan, Newark, CA
Dublin SCS Properties, City of Dublin, CA
Downtown Dublin Vision, City of Dublin, CA

REGIONAL RETAIL CENTERS
Hillsdale Shopping Center North Block, San Mateo, CA
Stonestown Galleria Anchor Redevelopment, San Francisco, CA HSC Mervyns Department Store Reconfiguration, San Mateo, CA Tucson Mall Anchor Redevelopment, Tucson, CA
Eastridge Shopping Center, San Jose, CA

PUBLIC OUTREACH AND EDUCATION
Alisal District Identity Master Plan, Salinas, CA
Downtown Dublin Vision, Dublin, CA
SCS Property Public Outreach, Dublin, CA
Latimer Square Public Workshop and Charette, Bloomington, IN Telegraph Avenue Public Workshop and Charette, Berkeley, CA Harold Way Workshop and Charette, Berkeley, CA

DESIGN GUIDELINES
Green Tree Mixed-Use Retail and Residential Guidelines, Vacaville, CA Latimer Square PUD Design Guidelines, Bloomington Indiana

PROFESSIONAL AWARDS
AIA California Urban Design Award for Downtown Dublin
ICSC Gold Award for Hillsdale Shopping Center - San Mateo ULI Apgar Award for 2015

COMMUNITY ACTIVITIES
Berkeley Design Advocates
Downtown Berkeley Association Volunteer - Former Board Member Richmond Yacht Club Junior Program Volunteer

EDUCATION
Washington State University,
Bachelor of Architecture

ASSOCIATIONS
American Institute of
Architects
ICSC
Urban Land Institute
Ryan Call
Urban Field Studio
Partner, AIA
[email protected]
With over 24 years of experience in planning and architectural design, Ryan has developed a particular expertise in master planning mixed-use urban communities with a focus on vibrant retail districts and public spaces. His primary interest lies in the strategic aspects of the design and developmentprocess where he has worked on a variety of projects from neighborhood shopping centers to regional shopping centers, to mixed-use multi-block districts. His presentation expertise has proven key to the success of many projects, especially during the critical public process and approvals phases.

DESIGN GUIDELINES
Green Tree Mixed-Use Retail and Residential Guidelines, Vacaville, CA Latimer Square PUD Design Guidelines, Bloomington Indiana

PROFESSIONAL AWARDS
AIA California Urban Design Award for Downtown Dublin
ICSC Gold Award for Hillsdale Shopping Center - San Mateo ULI Apgar Award for 2015

COMMUNITY ACTIVITIES
Berkeley Design Advocates
Downtown Berkeley Association Volunteer - Former Board Member Richmond Yacht Club Junior Program Volunteer

EDUCATION
Washington State University
Bachelor of Architecture

ASSOCIATIONS
American Institute of Architects
ICSC
Urban Land Institute
urbanfieldstudio.com
CLIENT
Catellus

YEAR COMPLETED
2008-2020

CONTACT
Greg Weaver (Now at Arterra
Development)
[email protected]
TEAM
ELS Architecture and Urban
Design
orked on the Mueller Aldrich District
ust over 10 years encompassing tasks
strict master planning, to individual site
sing and tenant pursuits, and concluding
g the Austin Energy head Quarters
s.
gned with a focused, intimate retail
of the developments signature parks.
ming was fixed, the supporting land uses
ast and west of the street. Each block was
both residential and commercial uses in
d construction typologies. As a result, the
a booming office market, a boutique hotel,
ema, for sale luxury condominiums and
nts. The amenity package of parks, access
cial entertainment helped attract the Texas
y Headquarters (later designed by ELS).
ich District at Mueller*
Texas
urbanfieldstudio.com
ich District at
Town Center
CLIENT
Catellus Development
Corporation

YEAR COMPLETED
2016

CONTACT
Greg Weaver
President of Development
512-703-9202
TEAM
Ryan Call (while Director
of Urban Design at ELS)
Architecture
Stantec
Lifescapes International
d the team that planned the 39-acre Mueller Town
core for the redevelopment of the former Robert
t in Austin. The sustainably designed, LEED ND
e district is under construction and includes retail,
nment tenants, Class A office space, multi-family
es. The Town Center serves as the commercial
development, which already includes residential
Children’s Medical Center, and the University
h Campus. ELS’ master planning and preliminary
in 315,000 sf of Class A office construction, a
House Cinema, a district parking garage, multi
ps, and restaurants. The project won an AIA East Bay
ompleted while Ryan Call was Director of Urban Design At ELS Architecture and Urban Design 394
Item 9 C.

CAPITOLA MALL ZONING CODE AMENDMENTS

EXPEDITED OPTION
2025 2026
Sept Oct Nov Dec Jan
Planning Commission MeeƟng X
Amendments Outline X
Stakeholder MeeƟng X
Staff Review DraŌ Amendments X
Public Review DraŌ Amendments X
Planning Commission Hearing X
City Council Hearing X
Tasks Hours Cost
Task 1: Draft Amendments
a. Planning Commission Meeting 25 $4,250
b. Stakeholder Meetings 8 $1,360
c. Amendments Outline 10 $1,700
d. Staff Review Draft Amendments 25 $4,250
e. Public Review Draft Amendments 20 $3,400
f. Planning Commission Hearing 25 $4,250
g. City Council Hearing 20 $3,400
Task 2: Project Management
a. Subconsultant Coordination 10 $1,700
b. City Coordination Meetings 10 $1,700
c. Public Announcements and Updates 10 $1,700
Total Hours 163
395
Item 9 C.

Billing Rate $170
Total Labor $27,710
Urban Field Studio Subconsultant $10,000
Economist Subconsultant $5,000
Travel Expenses $300
Contingency (10%) $2,771
TOTAL COST $45,781
396
Item 9 C.

CAPITOLA MALL ZONING CODE AMENDMENTS

FBC OPTION
2025 2026
Sept Oct Nov Dec Jan Feb Mar Apr May
Task 1: Project Initiation
Start-up Tasks X
Workshop Approach X
Task 2: Multi-Day Workshop
Workshop Planning and Preparation X
Multi-Day Workshop X
Final Workshop Deliverables X
Task 3: Form-Based Code Elements
Draft Form-Based Code Elements X
Final Form-Based Code Elements X
Task 4: Draft Amendments
Staff Review Draft X
Public Review Draft X
Task 5: Public Review and Adoption
Planning Commission Hearings (2) X X
City Council Hearing X
397
Item 9 C.

Tasks Ben Noble Opticos Total
Task 1: Project Initiation
a. Start-up Tasks $680 $5,000 $5,680
b. Workshop Approach $1,360 $5,000 $6,360
Task 2: Multi-Day Workshop
a. Workshop Planning and Preparation $1,360 $15,000 $16,360 b. Multi-Day Workshop $0 $35,000 $35,000
c. Final Workshop Deliverables $680 $10,000 $10,680
Task 3: Form-Based Code Elements
a. Draft Form-Based Code Elements $1,700 $15,000 $16,700 b. Final Form-Based Code Elements $1,360 $5,000 $6,360
Task 4: Draft Amendments
a. Staff Review Draft $10,200 $2,500 $12,700
b. Public Review Draft $5,100 $2,500 $7,600
Task 5: Public Review and Adoption
a. Planning Commission Hearings (2) $5,950 $2,500 $8,450 b. City Council Hearing $3,400 $2,500 $5,900
Task 6: Project Management
a. Subconsultant Coordination $2,550 $0 $2,550
b. City Coordination Meetings $2,550 $0 $2,550
c. Public Announcements and Updates $2,550 $0 $2,550
Total Labor $39,440 $100,000 $139,440
Economist Subconsultant $7,500
Travel Expenses $600
Contingency (10%) $13,944
TOTAL COST $161,484
398
Item 9 C.
1st AMENDMENT TO THE

PROFESSIONAL SERVICES AGREEMENT
between
CITY OF CAPITOLA and BEN NOBLE CITY AND REGIONAL PLANNING WHEREAS, on May 29, 2024, the City of Capitola (City) and the Ben Noble City and Regional Planning (the “Parties”) entered into a Professional Services Agreement (“Agreement”); and
WHEREAS, the Parties wish to amend the Contract to increase the contract value.

THEREFORE BE IT RESOLVED:

1. Appendix one is amended to include Housing Element Implementation for Mall Zoning; and

2. Appendix two is amended to Increase the not to exceed amount from $124,375 to $(Amount pending City Council direction at 8/28/2025 meeting). Increase amounts will be used for Housing Element Implementation related to the Capitola Mall and Community Benefits within the zoning code from preparation to adoption services by Ben Noble City and Regional Planning.

All other terms and conditions of the Agreement remain in full force and effect.

CONSULTANT: Ben Noble City and Regional Planning
__________________________________ Date: ___________________ By:

CITY OF CAPITOLA
___________________________________ Date: ___________________ By: Benjamin Goldstein, City Manager
APPROVED AS TO FORM:
___________________________________ Date: ___________________ Samantha W. Zutler, City Attorney
399
Item 9 C.

RESOLUTION NO. _____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAPITOLA
AMENDING THE 2025-26 FISCAL YEAR CITY BUDGET AND CAPITAL IMPROVEMENT

PROGRAM BUDGET
WHEREAS, it is necessary to adopt the 2025-26 Fiscal Year Budget for all City funds and Capital Improvement Program; and
WHEREAS, the City Council conducted budget study sessions, heard and considered public comments, had modified and proposed a budget accordingly, and on June 26, 2025, adopted such budget for the Fiscal Year July 1, 2025 through June 30, 2026; and WHEREAS, on May 23, 2024, the City Council authorized a Professional Services Agreement with Ben Noble Planning in the amount of $124,375 to implement Housing Element programs, funded through a combination of REAP 2.0 grant funds and General Plan funds; and WHEREAS, the City adopted the majority of Housing Element implementation measures in 2024 but incurred added costs associated with multifamily housing amendments, leaving a remaining balance of $46,611 under the Ben Noble Planning agreement; and WHEREAS, the agreement with Ben Noble Planning must be amended to include additional funding for Housing Element implementation of Programs 1.6 and 1.7, including zoning code updates for the Capitola Mall site; and
WHEREAS, in response, staff, in coordination with Ben Noble Planning, developed three potential approaches to update the Zoning Code and General Plan: (1) Expedited Objective Standards, (2) Objective Standards with enhanced public engagement, and (3) Form-Based Code, with costs ranging from $45,781 to $150,000 depending on scope, timeline, and level of public input; and
WHEREAS, it is necessary to amend the Fiscal Year 2025-26 Adopted Budget to increase appropriations in the General Plan Update and Maintenance Fund account number 1313-00-00-000- 4305.900 in the amount of $___________; and
NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Capitola that the 2025-26 Fiscal Year Budget is hereby amended, including Exhibit A (Budget Amendment) to this Resolution; and
BE IT FURTHER RESOLVED that the Administrative Services Director is directed to enter the budget into the City's accounting records in accordance with appropriate accounting practices, and the City Manager, with the Finance Director's assistance, shall assure compliance therewith.

I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the City Council of the City of Capitola on the 28
th day of August 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
400
Item 9 C.
_____________________
Joe Clark, Mayor
ATTEST:
____________________ ___
Julia Gautho, City Clerk
401
Item 9 C.

Budget Adjustment Request
Date
08/20/2025
Requesting Department *
Community Development
Type of Adjustment
Administrative
Council
Item #
Council Date
August 28, 2025
Council Approval
Revenues
Account Number Account Description Increase/Decrease
+ Add
Search
$
Total Revenues
$ 0.00
Expenditures
Account Number Account Description Increase/Decrease
+ Add
Search
1313-00-00-000-4305.900 CS-Contracts General $
Total Expenditures
$ 0.00
Net Impact
$ 0.00
Purpose
8/20/25, 10:19 AM Laserfiche | CDD - Budget Amendment Request https://app.laserfiche.com/forms/Form/ResumeDraft?ResumeDraftId=b33f011d-1534-472c-8d3c-e7b8af0d5295 1/2 402
Item 9 C.

Department Head Approval
Sign
Finance Director Approval
Sign
City Manager Approval
Sign
Submit Save as Draft
8/20/25, 10:19 AM Laserfiche | CDD - Budget Amendment Request https://app.laserfiche.com/forms/Form/ResumeDraft?ResumeDraftId=b33f011d-1534-472c-8d3c-e7b8af0d5295 2/2 403
Item 9 C.

CAPITOLA MALL UPDATE &

BEN NOBLE PLANNING CONTRACT

AMENDMENT
404
Item 9 C.

CAPITOLA MALL UPDATE &

BEN NOBLE PLANNING

CONTRACT AMENDMENT
Recommended Actions

1. Receive update on Capitola Mall / Housing Element Programs

1.6 & 1.7

2. Provide direction on zoning update approach

3. Adopt resolution amending FY 2025–26 Budget for Housing Element implementation

4. Authorize City Manager to execute Amendment 1 with Ben Noble Planning
405
Item 9 C.

CAPITOLA MALL UPDATE
Background – Long Range Planning
2011 41st Avenue / Capitola Mall Re-Visioning Plan
2013 General Plan Update
2024 Housing Element Update
406
Item 9 C.

CAPITOLA MALL UPDATE
Background – Implementation Planning
Zoning Code Updates

1. Reduced parking requirements and allowed mixed use (2010)

2. Community Benefits (2018)
• 50 feet height & 2.0 FAR for Mall Redevelopment

2. Updated Regional Commercial Zoning (2018)
• Vertical and horizontal mixed use allowed throughout
• Decreased parking

3. Objective Standards for Multifamily and Mixed Use (2022)

4. Removed barriers to housing (2024) 407
Item 9 C.

CAPITOLA MALL UPDATE
Background – Prior Mall Redevelopment Concepts
2019 Pre Application from Merlone Geier Partners (MGP)
629 Residential Units
330,000 sf Commercial
408
Item 9 C.

CAPITOLA MALL UPDATE
Housing Element
Capitola Mall: Key redevelopment site
• Program 1.6: Development Regulations
• Program 1.7: Shopping Center
Redevelopment
Sites Inventory Housing Units
Entire Block 1,777
MGP Properties 1,125
409
Item 9 C.

CAPITOLA MALL UPDATE
Housing Element Program Deliverables

1. Develop land use policies to facilitate shopping center redevelopment with a strong sense of urban design cohesion

2. Establishes Capitola Mall as all properties between Clares St, 41st Ave, and Capitola Rd.

3. Building height up to 75 feet for Mall Redevelopment

4. Define “Mall Redevelopment” to mean a mix of uses including residential and retail/commercial components

5. Exclude parking garages from project FAR calculations

6. Adopt objective development standards to facilitate mall redevelopment 410
Item 9 C.

CAPITOLA MALL UPDATE
Implementing deliverable requires zoning code updates
Outreach to MGP regarding zoning updates
May 2025: MGP requested form-based code (FBC)
June 2025: Discussion & questions
July 2025: Staff shared FBC cost/timing → $150k–200k, ~1 year Aug 2025: MGP requested objective standards and completion by December 2025
411
Item 9 C.

CAPITOLA MALL UPDATE
Options for zoning update to implement deliverables
Option 1 – Objective Standards
Option 2 – Expedited Objective Standards (MGP Request)
Option 3 – Form-Based Code
412
Item 9 C.

CAPITOLA MALL UPDATE
Option 1 – Objective Standards
• Amend Zoning Code and General Plan with objective standards • Increase building height (75 ft) and FAR (2.0)
• Includes 3 rounds of stakeholder meetings + 1 community workshop, PC/CC study sessions
• Completion: April 2026
• Estimated cost: $75,972
413
Item 9 C.

CAPITOLA MALL UPDATE
Amend Chapter 17.82: Objective Standards for Multifamily and Mixed-Use Residential Development
• Circulation and streetscape
• Parking and Vehicle Access
• Building placement, orientation, and entries
• Building Massing
• Façade and Roof Design
• Other site features
414
Item 9 C.

CAPITOLA MALL UPDATE
Amend Chapter 17.88
Incentives for Community Benefits
• Update qualifications for Mall Redevelopment with objective standards
• Increase height to 75 feet
• Exclude parking structures from 2.0 max FAR
415
Item 9 C.

CAPITOLA MALL UPDATE
3 STAKEHOLDER MEETINGS &
1COMMUNITY WORKSHOP
416
Item 9 C.

CAPITOLA MALL UPDATE
3 STAKEHOLDER MEETINGS &
1COMMUNITY WORKSHOP
417
Item 9 C.

CAPITOLA MALL UPDATE

EXAMPLE OBJECTIVE STANDARDS
Public Plazas Block Patterns
418
Item 9 C.

CAPITOLA MALL UPDATE

EXAMPLE OBJECTIVE STANDARDS
Pedestrian Realm Dimensions
Upper Floor Building Modulation
Building Massing
419
Item 9 C.

CAPITOLA MALL UPDATE
Option 2 – Expedited Objective Standards
• Amend Zoning Code and General Plan with objective standards • Increase building height (75 ft) and FAR (2.0)
• Includes 1 stakeholder meetings
• Completion: Jan. 2026
• Estimated cost: $45,781
420
Item 9 C.

CAPITOLA MALL UPDATE
Option 3 – Form Based Code
• Replace existing zoning with form-based code for Mall block • Focus on building form + frontages and their relationship to streets, sidewalks and public spaces
• Includes design charette + cohesive design standards + regulating map
• Completion: ~8 months (mid-2026)
• Estimated cost: $161,484
421
Item 9 C.

CAPITOLA MALL UPDATE
FBC: WORKSHOP WITH

COMMUNITY & STAKEHOLDERS
422
Item 9 C.

CAPITOLA MALL UPDATE

CREAT CODE FRAMEWORK & REGULATING PLAN
423
Item 9 C.

CAPITOLA MALL UPDATE

CREAT CODE FRAMEWORK & REGULATING PLAN
424
Item 9 C.

CAPITOLA MALL UPDATE

CREAT CODE FRAMEWORK & REGULATING PLAN
425
Item 9 C.

CAPITOLA MALL UPDATE
Option Engagement Timeline Cost

1. Objective Standards
PC/CC,
Stakeholders +
Workshop
Apr 2026 $75,972

2. Expedited Standards Hearings only Jan 2026 $45,781

3. Form-Based Code
Charette/
Community
Workshops
~8 months
(mid-2026) $161,484
Comparison of Options
426
Item 9 C.

CAPITOLA MALL UPDATE
Option Regulations
Redevelopment
approval
process

1. Objective Standards Less Prescriptive
More Flexible PC Review

2. Expedited Standards Less Prescriptive
More Flexible PC Review

3. Form-Based Code More Prescriptive
Less Flexible
Increased
Administrative
Review
Comparison of Options
427
Item 9 C.

CAPITOLA MALL UPDATE
Fiscal Impact
• Current contract balance: $46,611
• Funds needed: $45,781 – $161,484 (depending on option) • Funds available in General Plan Maintenance Fund
• Recommendation: Reserve contract balance for ongoing code updates; Amend contract to cover full cost of chosen option 428
Item 9 C.

CAPITOLA MALL UPDATE
Council Direction
• Select preferred zoning update approach
• Amend FY 2025–26 Budget to allocate funding
• Authorize contract amendment with Ben Noble Planning
• Continue coordination with MGP and stakeholders
429
Item 9 C.

DRAFT MOTION
Authorize contract amendment with Ben Noble
Planning to implement option ___,
and
Amend FY 2025–26 Budget to allocate
1: $76,000 2: $46,000 3: $162,000
from General Plan Maintenance Fund, and
430
Item 9 C.

Capitola City Council
Agenda Report
Meeting: August 28, 2025
From: Public Works Department
Subject: Sustainable Transportation Planning Grant for the Capitola Active Transportation Plan
Recommended Action: 1) Adopt a resolution authorizing the City Manager to enter into a grant agreement with the California Department of Transportation (Caltrans) for the Capitola Active Transportation Plan; 2) Authorize the City Manager to execute a professional services agreement with Ecology Action, the City’s co‑applicant for the project, in the amount of $305,000; and, 3) Adopt a resolution amending the FY 2025-26 budget to accept the grant revenue and appropriate funds for the project.

Background: In January 2025, the City applied for the Caltrans Sustainable Transportation Planning Grant Program, which is funded through Senate Bill 1 (SB 1 – The Road Repair and Accountability Act of 2017) and state and federal sources. The application requested $450,000 in grant funds, with a City in‑kind match of $60,000 in staff time, to prepare a Citywide Active Transportation Plan (ATP).

The City has since received a conditional notice of award from Caltrans. One of the requirements before receiving the final award is adoption of a resolution by the City Council that identifies the project title, authorizes acceptance of the grant, and designates the City Manager to sign the grant agreement on the City’s behalf.

Since the time of application, City staff has received updated direction regarding Municipal Code Section

8.72. The project scope and grant contract has been updated to comply with Code Section 8.72 and the project title has been changed to the Capitola Active Transportation Plan.

Discussion The Capitola Active Transportation Plan will be the City’s first comprehensive plan for improving pedestrian, bicycle, and multimodal travel throughout the City. The plan will evaluate existing conditions, identify barriers to walking and biking, and recommend infrastructure and programmatic solutions to improve access and safety for all users, including seniors, youth, and people with disabilities.

It will also incorporate climate resilience, Vision Zero safety strategies, and equity-focused approaches, while ensuring consistency with the City’s General Plan, the County’s Regional Transportation Plan, and state policies such as the Climate Action Plan for Transportation Infrastructure (CAPTI).

Ecology Action, a Santa Cruz-based non-profit with extensive experience in sustainable transportation planning, is a co-applicant on the grant. Ecology Action’s role in the grant has also been adjusted; they will lead community outreach and engagement, equity-focused programming, and coordination with local partners, while supporting the City in meeting Caltrans requirements.

In addition to Ecology Action’s role, the City will issue a Request for Proposals (RFP) to retain a qualified transportation planning consultant. The consultant will perform the technical scope of the plan, including data collection, analysis of existing conditions, network planning, safety studies, conceptual designs, and cost estimates for priority projects. There is $145,000 budgeted in grant funds for this work. The consultant contract will be awarded separately and brought back to the City Council for approval at a future meeting.

Fiscal Impact: The total project budget is $510,000. The Caltrans grant provides $450,000 in funding, and the City will contribute $60,000 in in‑kind staff time as the required local match. No additional General Fund allocation is required.
431
Item 9 D.

Attachments:

1. Resolution

2. Amended Scope of Work

3. Professional Services Agreement with Ecology Action

4. Resolution and Budget Amendment
Report Prepared By: Jessica Kahn, Public Works Director Reviewed By: Julia Gautho, City Clerk; Jim Malberg, Finance Director; Samantha Zutler, City Attorney Approved By: Jamie Goldstein, City Manager
432
Item 9 D.

RESOLUTION NO._______

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

OR DESIGNEE TO EXECUTE A PLANNING GRANT AGREEMENT WITH THE CALIFORNIA DEPARTMENT OF

TRANSPORTATION FOR THE CAPITOLA ACTIVE TRANSPORTATION PLAN WHEREAS, the City of Capitola is eligible to receive State funding for transportation planning through the California Department of Transportation (Caltrans); and WHEREAS, the City of Capitola applied for and was conditionally awarded $450,000 through Caltrans’ Sustainable Transportation Planning Grant Program, funded by Senate Bill 1 (SB 1 – The Road Repair and Accountability Act of 2017), for the Capitola Active Transportation Plan; and WHEREAS, a Restricted Grant Agreement must be executed with Caltrans before such funds can be reimbursed to the City through the grant program; and WHEREAS, the City Council desires to delegate authority to execute the grant agreement and any amendments thereto to the City Manager or their designee to ensure timely acceptance and administration of the grant.

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

1. The City Council hereby authorizes the City Manager, or designee, to execute all Restricted Grant Agreements and any amendments thereto with the California Department of Transportation for the Capitola Active Transportation Plan, and to make any non substantive revisions as approved by the City Attorney and take all necessary action to effectuate receipt of the grant funds.

2. The City Council authorizes the City Manager, or designee, to make necessary budget amendments to execute the Capitola Active Transportation Plan.

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 28th day of August, 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ABSTAIN:
____________________________
Joe Clarke, Mayor
ATTEST:
________________________________
Julia Gautho, City Clerk
433
Item 9 D.
434
Item 9 D.

Page 1 of 10 ends

Capitola City CouncilAugust 28, 2025

Capitola City Council
August 28, 2025