City of Capitola
City Council Meeting Minutes
Thursday, December 11, 2025 – 6:00 PM
City Council Chambers
420 Capitola Avenue, Capitola, CA 95010
Mayor: Joe Clarke
Vice Mayor: Margaux Morgan
Council Members: Gerry Jensen, Melinda Orbach, Susan Westman Closed Session – 4:45 PM
i. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Gov’t. Code §54956.9(d)(2), (e)(1).
One Case
ii. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Govt. Code § 54957(b)) City Council's Performance Evaluation of the City Manager Regular Meeting of the Capitola City Council – 6 PM
1. Roll Call and Pledge of Allegiance – The meeting was called to order at 6:00 PM. In attendance: Council Members Jensen, Orbach, Westman, Vice Mayor Morgan, and Mayor Clarke.
2. Additions and Deletions to the Agenda – None
3. Presentations – The Mayor presented a proclamation honoring Rose Filicetti.
4. Report on Closed Session – The City Council met and discussed two items on the Closed Session agenda. No reportable action was taken.
5. Additional Materials
A. Item 9B – One letter and one email received after publication of the agenda packet.
B. Item 9D – Two emails received after publication of the agenda packet.
6. Oral Communications by Members of the Public
• James Ewing Whitman
• Linda Smith
• Molly Turner
7. Staff / City Council Comments
• Police Chief Ryan provided an update on the maintenance of the City’s parking pay stations. • Assistant to the City Manager, Chloe Woodmansee, announced that the City will be accepting applications for “Discover Capitola: a Civic Engagement Academy” beginning on January 5th. • Council Member Jensen commended the Capitola Village and Wharf Business Improvement Area on their recent community events; provided comments about his walk through of the Park at Rispin Mansion; provided comments on his attendance at a recent RTC meeting; and requested an agenda item in January to show support for the RTC’s interim trail and the use of the Capitola trestle.
• Council Member Orbach provided comments on her attendance at a recent METRO meeting.
Docusign Envelope ID: 2735B3AF-C910-423C-8667-71A0861D8360 City Council Meeting Minutes – December 11, 2025
City of Capitola Page 2
• Council Member Jensen requested that METRO provide a presentation at a City Council meeting on services offered.
• Council Member Westman thanked Council Member Jensen for his performance as Santa at recent community events; provided comments on her experience walking through the Park at the Rispin Mansion; and requested an agenda item in February on the City’s Administrative Policies.
• Vice Mayor Morgan provided an update on changes to the City’s website; thanked staff for their work to maintain the City’s parking pay stations; commended the CVWBIA on their recent community events; and requested that staff coordinate with Molly Turner on her request during public comment.
• Mayor Clarke wished City Manager Goldstein a happy birthday; and thanked the Council and community for his time serving as Mayor.
8. Consent Items
A. City Council Meeting Minutes
Recommended Action: Approve minutes from the regular meeting on November 13, 2025, and the special meeting on November 20, 2025.
B. City Check Registers
Recommended Action: Approve check registers dated September 26, 2025, October 10, 2025, October 24, 2025, and November 14, 2025.
C. Mandatory Organic Waste Disposal Reduction Ordinance Recommended Action: Adopt an ordinance amending Chapter 8.04 “Solid Waste Management” of the Capitola Municipal Code, establishing a Mandatory Organic Waste Disposal Reduction Ordinance consistent with Senate Bill 1383 regulations. (Ordinance No. 1072) D. Acceptance of Carbon Reduction Program Grant Funding Recommended Action: Adopt a resolution amending the FY 2025-26 Budget to accept $160,452 in Carbon Reduction Program (CRP) grant funding and appropriate the funds to the Capitola Community Center Renovation Project for the purchase of electric vehicle charging equipment. (Resolution No. 4464)
E. Interest Rate for Tenant’s Security Deposits
Recommended Action: Adopt a resolution setting the interest rate for tenants’ security deposits for 2026 at zero percent (0%). (Resolution No. 4465)
F. 2025 Pavement Maintenance Project Completion
Recommended Action: 1) Accept as complete the 2025 Pavement Maintenance Project constructed by Graham Contractors at a final cost of $684,921; 2) authorize the City Clerk to file and record a Notice of Completion; and 3) authorize the release of the contract retention of $34,246 as prescribed in the construction agreement.
G. Planner Consulting Services Contract Amendment
Recommended Action: Adopt a resolution authorizing the City Manager to execute Amendment 1 to the Professional Services Agreement with CSG Consultants in an amount not to exceed $60,000 for Planning contract services. (Resolution No. 4466) H. Jade Street Site Improvements – Quarterly Progress Update Recommended Action: Receive a quarterly progress report on the full set of Jade Street projects, including the Community Center renovation, patio improvements, Treasure Cove Playground, and the Jade Street Park restroom renovation.
I. 41st Avenue Corridor Plan – Consultant Contract Amendment Docusign Envelope ID: 2735B3AF-C910-423C-8667-71A0861D8360 City Council Meeting Minutes – December 11, 2025
City of Capitola Page 3
Recommended Action: Adopt a resolution amending the FY 2025-26 Budget to allocate $58,000 from the General Plan Update and Maintenance Special Revenue Fund; and authorize the City Manager to execute Amendment 1 to the Professional Services Agreement with SWA Group to expand the 41st Avenue Corridor Plan to include portions of Clares Street and Capitola Road in an amount not to exceed $58,000, subject to City Attorney review and approval. (Resolution No. 4467)
J. Police Multi-Service Officer Job Description
Recommended Action: Approve changing the Community Service Officer job title to MultiService Officer and approve the updated job description.
K. Tobacco Grant FY 2025-26
Recommended Action: Adopt a resolution amending the FY 2025-26 General Fund operating budget to accept a Department of Justice Tobacco Grant in the amount of $55,378. (Resolution No. 4468)
L. Temporary/Hourly Employee Pay Schedule
Recommended Action: Adopt a resolution amending the temporary/hourly employee pay schedule. (Pulled for discussion by Council Member Jensen) M. Watsonville Community Hospital Grant Funding Support Recommended Action: Authorize the Mayor to send a letter to the state legislature supporting Watsonville Community Hospital’s prioritization for Rural Health Transformation Program funding and designation as a regional hub hospital.
N. First Amendment to Municipal Wharf Lease Agreement
Recommended Action: Authorize the City Manager to execute the First Amendment to the Municipal Wharf Lease Agreement with TTD, LLC. in substantially similar form, as approved by the City Attorney, as the attached agreement.
Council Member Jensen requested that quarterly project progress report (Item 8H) be placed on the General Government agenda in the future; thanked the Police Chief for obtaining the grant funding presented in Item 8K; and requested that Item 8L be pulled for discussion.
Motion to approve Items 8A – 8K and 8M-N: Council Member Orbach Second: Council Member Morgan
Voting Yea: Council Members Jensen, Orbach, Westman, Vice Mayor Morgan, Mayor Clarke
9. General Government / Public Hearings
A. Regional Interoperable Next Generation Radio System
Recommended Action: Approve the City of Capitola’s participation in the Regional Interoperable Next Generation (RING) Radio System by (1) authorizing the City Manager to execute the Master Service and Governance Agreement with the County of Santa Cruz and partner agencies and (2) designating the City Manager to serve as the City’s voting member on the RING Executive Committee.
Police Chief Ryan and County RING consultant, Jim Frawley, presented the staff report.
Public Comment:
• James Ewing Whitman
• Keith Cahalen
Docusign Envelope ID: 2735B3AF-C910-423C-8667-71A0861D8360 City Council Meeting Minutes – December 11, 2025
City of Capitola Page 4
Motion to authorize the City Manager to execute the Master Service and Governance Agreement and designate the City Manager to serve on the RING Executive Committee:
Council Member Orbach
Second: Council Member Jensen
Voting Yea: Council Members Jensen, Orbach, Westman, Vice Mayor Morgan, Mayor Clarke
B. Phase 1 Conceptual Design – Grand Avenue Pathway
Recommended Action: Authorize the City Manager to execute a professional services agreement with SSA Landscape Architects, Inc. for Phase 1 Conceptual Design of the Grand Avenue Pathway in an amount not to exceed $13,000, with funding from the Capital Improvement Program (CIP) Fund. (Continued from November 13, 2025, City Council meeting) Public Works Director Kahn presented the staff report.
Public Comment:
• Tom Mater
Motion to execute an agreement with SSA Landscape Architects, Inc. with funding from the Employee Down Payment Assistance Fund: Council Member Westman Second: Vice Mayor Morgan
Voting Yea: Council Members Jensen, Westman, Vice Mayor Morgan, Mayor Clarke Voting Nay: Council Member Orbach
C. Capitola Municipal Code Sections 2.04.140 and 2.04.210 Recommended Action: Introduce for first reading, by title only, waiving further reading, an ordinance amending Capitola Municipal Code Sections 2.04.140 and 2.04.210 to update the process by which City Council Members request agenda items and their rules of debate.
City Clerk Gautho presented the staff report.
Public Comment: None
Motion to introduce Ordinance No. 1073: Vice Mayor Morgan Second: Council Member Orbach
Voting Yea: Council Members Jensen, Orbach, Westman, Vice Mayor Morgan, Mayor Clarke
Mayor Clarke requested the discussion of Item 8L before Item 9D, to allow the Council Reorganization to occur last on the agenda.
8. Consent Items Pulled for Discussion
L. Temporary/Hourly Employee Pay Schedule
Recommended Action: Adopt a resolution amending the temporary/hourly employee pay schedule. (Pulled for discussion by Council Member Jensen) Administrative Services Director Malberg presented an oral report.
Public Comment: None
• Name
The City Council discussed concerns about the City’s financial position and the juxtaposition of offering hourly pay increases.
Motion to continue the item to January 22, 2026: Council Member Westman Docusign Envelope ID: 2735B3AF-C910-423C-8667-71A0861D8360 City Council Meeting Minutes – December 11, 2025
City of Capitola Page 5
Second: Council Member Westman
Voting Yea: Council Members Jensen, Orbach, Westman, Vice Mayor Morgan, Mayor Clarke
9. General Government / Public Hearings
D. City Council Reorganization for 2026
Recommended Action: Nominate and appoint a new Mayor and Vice-Mayor.
City Clerk Gautho presented the staff report.
Public Comment:
• Speaker
Motion to appoint Margaux Morgan as Mayor and Gerry Jensen as Vice Mayor for 2026:
Council Member Westman
Second: Council Member Orbach
Voting Yea: Council Members Jensen, Orbach, Westman, Vice Mayor Morgan, Mayor Clarke
10. Adjournment
The meeting adjourned at 7:41 PM. The next regularly scheduled City Council meeting is on January 8, 2026, at 6:00 PM.
________________________
Margaux Morgan, Mayor
ATTEST:
______________________
Julia Gautho, City Clerk
Docusign Envelope ID: 2735B3AF-C910-423C-8667-71A0861D8360