The Capitola Municipal Code is current through Ord. 1067, and legislation passed through November 14, 2024.
Chapter 17.32
SPECIAL PURPOSE ZONING DISTRICTS Revised 1/25 Revised 6/25 Sections:
17.32.010 Purpose of the special purpose zoning districts.
17.32.020 Land use regulations. Revised 1/25 Revised 6/25
17.32.030 Development standards.
17.32.010 Purpose of the special purpose zoning districts.
A. Community Facility (CF). The CF zoning district provides areas for public and community facilities serving Capitola residents and visitors. Land uses permitted in the CF zoning district include public uses such as governmental offices, police and fire stations, community centers, schools, libraries, and other similar uses. The CF zoning district implements the public/quasipublic land use designation in the general plan.
B. Parks and Open Space (P/OS). The P/OS zoning district provides parks, recreational facilities, and open space for the use and enjoyment of the community and visitors. The P/OS zoning district also protects and preserves environmentally sensitive natural areas and habitat in Capitola. The P/OS zoning district implements the parks and open space land use designation in the general plan. (Ord. 1043 § 2 (Att. 2), 2020)
17.32.020 Land use regulations. Revised 1/25 Revised 6/25 A. Permitted Uses. Table 17.32-1 identifies land uses permitted in the CF and P/OS zoning districts.
B. Commercial Uses in the P/OS Zoning District. Commercial uses that are accessory to a permitted use in the P/OS zoning district are permitted with a conditional use permit as long as the park, recreation, and open space purposes are met by the overall development.
C. Visitor Accommodations in New Brighton State Beach. Visitor accommodations and campground uses are permitted in the New Brighton State Beach.
D. P/OS Standards. The following standards apply to uses in the P/OS zoning district:
1. Any structure, land use, or removal of vegetation or natural materials that in the opinion of the community development director is inconsistent with the purpose of the P/OS zoning district is prohibited.
2. Development shall be subordinate to its recreational, scenic, or natural resource purpose consistent with the local coastal program (LCP). Natural resource protection shall include protection of arroyos; creeks, riparian corridors, and other environmentally sensitive habitat; and woodlands.
3. No new structures are permitted on the open, sandy beach area of Capitola except for appropriate public facilities (e.g., the flume and jetties), required shoreline protective structures (approved beach erosion control structures), and structures required for public health and safety (e.g., lifeguard stands) if otherwise consistent with the local coastal program.
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Capitola Municipal Code
Chapter 17.32 SPECIAL PURPOSE ZONING
DISTRICTS
The Capitola Municipal Code is current through Ord. 1067, and legislation passed through November 14, 2024.
Table 17.32-1: Permitted Land Uses in the CF and P/OS Zoning Districts Key Zoning District
Additional Regulations
P Permitted Use
CF P/OS
A Administrative
Permit required
M Minor Use Permit
required
C Conditional Use
Permit required
– Use not allowed
Public and Quasi-Public Uses
Colleges and Trade Schools C –
Community Assembly P [1] –
Cultural Institutions P [1] –
Day Care Centers P [1] –
Government Offices P –
Parks and Recreational Facilities P [1] P [1]
Public Paths and Coastal Accessways [2] P P
Public Safety Facilities P –
Schools, Public or Private P –
Transportation, Communication, and Utilities Uses
Recycling Collection Facilities C – Section 17.96.130
Utilities, Major C C
Utilities, Minor P P
Wireless Telecommunications Facilities See Chapter 17.104 Other Uses
Accessory Uses and Structures See Chapter 17.52
Temporary Uses and Structures See Section 17.96.180
Urban Agriculture
Community Gardens M [1] M [1]
Note:
[1] Publicly owned and/or operated facilities only.
[2] Coastal armoring to support public paths and coastal accessways along Cliff Drive is allowable. See Capitola LCP policy II-4 and VII-12.
(Ord. 1066 § 2 (Att. 1), 2024; Ord. 1043 § 2 (Att. 2), 2020) 211
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Capitola Municipal Code
Chapter 17.32 SPECIAL PURPOSE ZONING
DISTRICTS
The Capitola Municipal Code is current through Ord. 1067, and legislation passed through November 14, 2024.
17.32.030 Development standards.
A. Floor Area Ratio. The maximum permitted floor area ratio (FAR) is 0.25 in the P/OS zoning district and as determined by the planning commission through the design review process in the CF zoning district.
B. Other Development Standards. Other development standards (e.g., setbacks, height, building coverage) in the CF and P/OS zoning districts shall be determined by the planning commission through the design review and coastal development permit (if in the coastal zone) process. (Ord. 1043 § 2 (Att. 2), 2020)
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Capitola Municipal Code
Chapter 17.64 ENVIRONMENTALLY SENSITIVE
HABITAT AREAS
The Capitola Municipal Code is current through Ord. 1067, and legislation passed through November 14, 2024.
Chapter 17.64
ENVIRONMENTALLY SENSITIVE HABITAT AREAS
Sections:
17.64.010 Purpose.
17.64.020 Applicability.
17.64.030 General standards.
17.64.040 Soquel Creek, Lagoon, and Riparian Corridor.
17.64.050 Monarch butterfly habitat – Rispin-Soquel Creek and Escalona Gulch.
17.64.010 Purpose.
This chapter establishes standards to protect and preserve environmentally sensitive habitat areas in Capitola consistent with Capitola’s general plan, local coastal program (LCP), and the requirements of the Coastal Act. (Ord. 1043 § 2 (Att. 2), 2020)
17.64.020 Applicability.
This chapter applies to the following environmentally sensitive habitat areas. Environmentally sensitive habitat areas (ESHA) are any areas in which plant or animal life or their habitats are either rare or especially valuable because of their special nature or role in an ecosystem and which could be easily disturbed or degraded by human activities and developments. ESHA includes wetlands, coastal streams and riparian vegetation, and terrestrial ESHA, including habitats of plant and animal species listed under the federal or California Endangered Species Act. The ESHA map identifies properties in the general location of sensitive habitats. The precise location of sensitive habitats within a site shall be identified in the biological study as required within Section 17.64.030(G) (Biological Study). In addition, the following areas are categorically ESHA as identified in Capitola’s LCP:
A. Soquel Creek, Lagoon, and Riparian Corridor.
B. Noble Gulch Riparian Corridor.
C. Tannery Gulch Riparian Corridor.
D. Monarch butterfly habitat – Rispin-Soquel Creek and Escalona Gulch. (Ord. 1043 § 2 (Att. 2), 2020)
17.64.030 General standards.
The following standards apply to all environmentally sensitive habitat areas:
A. Allowable Development within Sensitive Habitat Area. The only allowed development within the sensitive habitat areas as identified in the biological study required in subsection G of this section (Biological Study) shall be those uses dependent on the resource (e.g., low-intensity public access and recreation, nature study, restoration). The only new uses allowed in wetlands and streams/riparian areas shall be those specified in Coastal Act Sections 30233 and 30236, respectively.
B. Impact Prevention. Allowable development within an environmentally sensitive habitat area shall be sited and designed to prevent impacts which would significantly degrade the area. 213
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Capitola Municipal Code
Chapter 17.64 ENVIRONMENTALLY SENSITIVE
HABITAT AREAS
The Capitola Municipal Code is current through Ord. 1067, and legislation passed through November 14, 2024.
C. Long-Term Protection. Allowable development shall be sited, designed, and maintained to achieve the long-term protection of the environmentally sensitive habitat areas.
D. Prohibited Areas for Development. With the exception of restoration and resource protection and enhancement activities and resource-dependent uses as set forth in A above, no new development may encroach into the waters of Soquel Creek or Lagoon, be sited within the root zone of riparian or butterfly host trees, or require the removal of trees in a monarch butterfly habitat area which provide roosting habitat or wind protection.
E. Minimum Setbacks.
1. Development may not encroach into required minimum setbacks from environmentally sensitive habitat areas as shown in Table 17.64-1 (Required Setbacks from Environmentally Sensitive Habitat Areas), except as allowed in subsection (E)(2) of this section. The setbacks listed below are minimums and may be increased depending on the findings of the biological study required in subsection G of this section.
Table 17.64-1: Required Setbacks from Environmentally Sensitive Habitat Areas Environmentally Sensitive Habitat
Area Minimum Setback
Soquel Creek and Lagoon 35 feet from the western shoreline of Soquel Creek Lagoon [1]
Soquel Creek Riparian Corridor 25 feet from the outer edge of riparian vegetation. On the heavily developed east side of the lagoon and creek (from Stockton Avenue to Center Street) the setback
requirement shall be measured from the bank of Soquel
Creek. In no case may the setback be located on the
west side of the pedestrian path.
Noble Gulch Riparian Corridor 35 feet from the outer edge of riparian vegetation Tannery Gulch Riparian Corridor 50 feet from the outer edge of riparian vegetation Other ESHA A setback sufficient to ensure the protection of ESHA habitat values as identified in the biological study as required within subsection G of this section (Biological Study).
Note:
[1] Does not apply to public facilities outside the coastal zone. Within the coastal zone, applies to public facilities unless otherwise specified in Section 30233 of the Coastal Act.
2. To allow for a minimum level of development on a physically constrained lot, the city may allow a reduction to the required minimum setback; provided, that a biological study determines that the reduced setback does not have a significant adverse effect on the ESHA and its habitat value.
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Capitola Municipal Code
Chapter 17.64 ENVIRONMENTALLY SENSITIVE
HABITAT AREAS
The Capitola Municipal Code is current through Ord. 1067, and legislation passed through November 14, 2024.
F. Setback Exceptions on Developed Lots.
1. The city may grant an exception to the minimum setbacks in subsection E of this section (Minimum Setbacks) for the following projects on developed lots:
a. An addition or modifications to an existing single-family home, or an accessory structure, that does not extend closer to the environmentally sensitive habitat area, and provided the addition or modification or accessory structure is compatible with, and will not significantly degrade, the ESHA and/or its habitat values.
2. A “developed lot” means a lot that is developed or utilized to its ultimate potential use according to the applicable zoning district. For example, an R-1 lot that contains a single-family home or a permitted public/quasi-public use is considered developed. A residential or commercial lot that is vacant or used periodically for temporary uses (e.g., seasonal holiday sales) is not considered developed.
3. The city may grant an exception with the approval of an administrative permit, or a coastal development permit for sites located within the coastal zone, upon finding that the project is:
a. Sited and designed to prevent impacts which would significantly degrade environmentally sensitive habitat areas;
b. Consistent with the recommendation of the biological study prepared for the proposed development; and
c. Compatible with the continuance of habitat and recreation activities within environmentally sensitive habitat areas.
4. The city may attach conditions to the administrative permit or coastal development permit to ensure compliance with all city policies and regulations pertaining to the protection of environmentally sensitive habitat areas.
5. City approval of an exception shall not require the applicant to prepare a biological study.
G. Biological Study. For any proposed development located on a parcel within the ESHA areas identified above, the city shall contract with a qualified biologist at the applicant’s expense to prepare a biological study. Biological studies shall at a minimum include the following:
1. Field surveys to determine the presence and location of any sensitive habitats and sensitive plant and animal species; and
2. A biological report which includes vegetation maps, a list of all observed native plant and animal species, an evaluation of other sensitive species which were not observed but have the potential to occur on the site, an impact analysis, and recommendations for avoiding, minimizing, or mitigating impacts. The biological report shall identify appropriate building and other setbacks, appropriate use, restoration, and development standards within setbacks, wetland buffers, landscape recommendations, and mitigation monitoring and reporting requirements as appropriate.
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Capitola Municipal Code
Chapter 17.64 ENVIRONMENTALLY SENSITIVE
HABITAT AREAS
The Capitola Municipal Code is current through Ord. 1067, and legislation passed through November 14, 2024.
H. Waiver of Biological Study. The city may waive the requirement of a biological study on a developed lot if a project is proposed in a previously developed area of the lot and the project will not degrade the ESHA and/or its habitat values.
I. Conservation Easements and/or Deed Restrictions. If necessary and appropriate to protect natural areas and ESHA, the city shall require a permanent conservation easement or deed restriction over any portion of the property containing environmentally sensitive habitat areas and their required setbacks.
J. Erosion Control and Water Quality.
1. All development shall conform to erosion control and water quality requirements consistent with federal, state, and local regulations. Within riparian areas, allowed grading shall be minimized within the riparian setback area. Grading shall not be permitted to damage the roots of riparian trees or trees within butterfly habitat areas. Grading shall only take place during the dry season.
2. During construction, erosion control measures shall be implemented, including limiting removal of vegetation, minimizing exposure of bare soils, replanting disturbed soils with suitable native species, controlling runoff, and preventing sedimentation from entering drainages. All areas outside the immediate construction areas shall not be disturbed. The city shall require measures for temporary drainage retention during construction, including mulching, erosion control seeding, and other measures as needed to prevent any sediment from reaching sensitive habitat areas.
K. Removal of Native Riparian Trees. Removal of native riparian trees within riparian corridors is prohibited unless it is determined by the community development director, on the basis of an arborist report, that such removal is in the public interest by reason of good forestry practice, disease of the tree, or safety considerations.
L. Dead Trees in Riparian Corridors. Snags, or standing dead trees, shall not be removed from riparian corridors unless in imminent danger of falling, where same would lead to a public safety issue. Removal shall be consistent with all applicable provisions of Chapter 12.12 (Community Tree and Forest Management). Any removed tree shall be replaced with a healthy young tree of an appropriate native riparian species or appropriate habitat for monarch butterflies.
M. Landscaping Plan. A landscaping plan shall be prepared for proposed developments that identifies the location and extent of any proposed modification to existing vegetation and the locations, kinds, and extent of new landscaping. The emphasis of such plans shall be on the maintenance and enhancement of native species, the removal of existing invasive species, and the enhancement of natural habitat. New invasive plant or tree species are prohibited, with the exception of species which positively contribute to monarch butterfly habitat.
N. Wood-Burning Fireplaces. Wood-burning fireplaces shall be prohibited in structures built on sites where monarch butterflies may be disturbed due to chimney smoke. The city discourages wood-burning fireplaces for residential uses in all other areas of Capitola. (Ord. 1043 § 2 (Att. 2), 2020)
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Capitola Municipal Code
Chapter 17.64 ENVIRONMENTALLY SENSITIVE
HABITAT AREAS
The Capitola Municipal Code is current through Ord. 1067, and legislation passed through November 14, 2024.
17.64.040 Soquel Creek, Lagoon, and Riparian Corridor.
The following standards apply in the Soquel Creek, Lagoon, and Riparian Corridor in addition to the standards in Section 17.64.030 (General standards):
A. No New Development. No new development is permitted within the riparian corridor along Soquel Creek and Lagoon, except for restoration and resource protection and enhancement activities, and, outside the coastal zone only, public facilities.
B. Division of Land. New divisions of land may be approved only if each new parcel contains adequate area outside the riparian or stream bank setback to accommodate new development. (Ord. 1043 § 2 (Att. 2), 2020)
17.64.050 Monarch butterfly habitat – Rispin-Soquel Creek and Escalona Gulch.
The following standard applies to both the Rispin-Soquel Creek and the Escalona Gulch monarch butterfly habitat areas in addition to the standards in Section 17.64.030 (General standards):
A. Permitted Construction Periods. Construction for otherwise allowable development within or on properties contiguous to the designated butterfly groves shall be prohibited during fall and winter months when the monarch butterflies are present. Removal or modification of trees (including pruning) within the groves shall not be permitted during these periods except when determined by the community development director, on the basis of an arborist report, to be an emergency necessary to protect human life or property.
B. Tree Protection.
1. Development shall be sited and designed to avoid removal of large trees. New development located immediately adjacent to large trees shall be evaluated by an arborist to ensure that the development will not negatively impact the tree in the future.
2. Trees removed for construction shall be replaced based on a written tree replanting program developed in consultation with a qualified monarch butterfly expert. The trees shall be sited in strategic locations as identified by the replanting program.
3. Barrier fencing shall be installed around large trees, especially cluster trees, for protection during construction.
C. Structure Height. The city shall limit structure heights as needed to prevent shading of cluster sites.
D. Construction Involving Heavy Equipment. No construction involving heavy equipment that may bump into the cluster trees or produce heavy plumes of exhaust smoke is permitted during the months in which the monarch butterflies are in residence (October 1st to March 1st). (Ord. 1043 § 2 (Att. 2), 2020)
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Chapter 17.68 – GH Geologic Hazards District
1 Chapter 17.68
GH GEOLOGIC HAZARDS DISTRICT*
Sections:
17.68.010 Definitions.
17.68.020 Applicability.
17.68.030 Purpose.
17.68.040 Combining district.
17.68.050 Principal permitted uses.
17.68.060 Accessory uses.
17.68.070 Conditional uses.
17.68.080 Development standards.
17.68.090 Beach area regulations.
17.68.100 Bluff and cliff area regulations.
17.68.110 Earthquake fault areas.
17.68.120 Floodplain.
17.68.130 Landslide areas.
17.68.140 Steep slope areas.
17.68.150 Other geologic hazard areas.
17.68.160 Contents of geologic/engineering reports.
17.68.170 Appeals.
17.68.180 Requirement of disclosure of property location by seller to seller's agent.
17.68.190 Report to be noted on subdivision maps.
_________________
* Prior ordinance history: Ords. 472, 562.
17.68.010 Definitions. For purposes of this chapter the following definitions shall apply:
A. "Bluff or Seacliff” means a landform that includes a scarp or steep face of rock adjacent to the bay or ocean and meeting one of the following two parameters:
a. The toe is now or was historically (generally within the last two hundred years) subject to marine erosion.
b. The toe of which lies within an area otherwise identified in Public Resources Code Section 30603(a)(1) or (a)(2).
or cliff" means the scarp or steep face of rock, decomposed rocks, sediment or soil resulting from erosion, faulting, folding or excavation of land mass and exceeding ten feet in height, and includes what we commonly know as "cliffs." B. "Floodplain" means the land on either side of the creek or other watercourse which may be subject to flooding, includes 218
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2 but is not necessarily limited to any one-hundred year floodplain, as determined by the Federal Flood Insurance Program.
C. "Geological hazard" means a threat to life, property or public safety caused by geological or hydrological processes such as faulting and secondary seismic effects, including but not limited to: liquefaction, landsliding, erosion, flooding, tsunami, or storm wave inundation. (Ord. 628 §2 (part), 1987).
D. “Coastal hazard” includes but is not limited to episodic and long-term shoreline retreat and coastal erosion, high seas, ocean waves, storms, tsunami, tidal scour, wave overtopping, coastal flooding, landslides, bluff and geologic instability, bluff retreat, liquefaction and their interaction, many of which are likely to worsen with sea level rise.
17.68.020 Applicability. The regulations set forth in this chapter apply in all GH districts. (Ord. 628 §2 (part), 1987).
17.68.030 Purpose. The GH district is designed to inform property owners and potential property owners of lands which are located in areas containing geological hazards, including, but not limited to, floodplains, fault zones, known landslide areas, bluffs, tsunami inundation areas, and high liquefaction areas.
Along the shoreline and in areas subject to coastal hazards, the GH district is also designed (a) to protect and enhance bluff, shoreline, offshore, and sandy beach recreational areas for public use and enjoyment while ensuring all development (including private structures and public infrastructure)is safe from coastal hazards as much as possible both now and in the future; and (b) to ensure that otherwise allowable development is sited, designed, and conditioned to minimize risks to life and property, to avoid being subject to coastal hazards, and where development cannot entirely avoid coastal hazards, to appropriately mitigate for all adverse impacts to coastal resources, including to bluff, shoreline, offshore, and sandy beach recreational areas.
(Ord. 628 §2(part), 1987).
17.68.040 Combining district. Land classified GH shall also have a basic zoning classification as defined in Chapters 17.12 through 17.45. For example, R-1-GH means that the R-1 district regulations apply as well as the GH regulations. (Ord. 628 §2(part), 1987).
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3 17.68.050 Principal permitted uses. The following are principal permitted uses the GH district:
A. All uses permitted in the basic zoning district. (Ord. 628 §2(part), 1987).
17.68.060 Accessory uses. The following are accessory uses permitted in the GH district:
A. All accessory uses permitted in the basic zoning
district. (Ord. 628 §2(part), 1987).
17.68.070 Conditional uses. The following are conditional uses in the GH district:
A. All conditional uses in the basic zoning district. (Ord. 628 §2(part), 1987).
17.68.080 Development standards. The development standards in the GH district shall be the same as the basic zoning district except in those instances when more restrictive standards are necessary to provide assurance that stability and structural integrity can be maintained for the economic life of the project (fifty years.) (Ord. 628 §2(part), 1987).
17.68.090 Beach area regulations. In the GH district:
A. A geologic/engineering report shall be required for all developments located on or adjacent to a beach, including shoreline protective measures. "Shoreline protective measures" includes the installation, in an area where coastal process operate, of any structure or material, including but not limited to riprap or a seawall, for the purpose of protecting any structure, including a road, utility or transmission line.
Shoreline protection structures shall be permitted only when they are:
1. Necessary If required to protect coastal-dependent
uses, andor existing development structures (other than accessory structures), or public beaches in danger from erosion; or and
2. Necessary to protect public beaches in danger from
erosion, and oOnly if nonstructural solutions (i.e.e.g., artificial beach nourishment, relocation of structures, etc.) and any other less environmentally damaging alternatives (such as nature-based adaptation measures) have proven to be
infeasible; and
3. If they are determined to be the least
environmentally damaging feasible alternative to protect the 220
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Chapter 17.68 – GH Geologic Hazards District
4 endangered structure/beach/use; and
4. If all coastal resource impacts are avoided, and
where all unavoidable impacts are commensurately mitigated; including that they are Ddesigned so as to eliminate or mitigate adverse impacts on local shoreline sand supply, public access, marine habitats, visual resources, and paleontological
resources, and any other coastal resources; and
45. Designed to provide lateral and vertical public
access elements where feasible (Ord. 628 §2(part), 1987).
17.68.100 Bluff and seacliff area regulations. In the GH district:
A. Bluff and seacliff top development shall be permitted only if the design and setback provisions are designed to assure stability and structural integrity for the expected life of the development(at least fifty years;)and if the development (including storm runoff, foot traffic, grading and irrigation) will neither create nor contribute significantly to erosion problems or geological instability of the site or surrounding areas.
B. A geologic/engineering report shall be required for any blufftop or seacliff development which is proposed within two hundred feet of the seacliff edge. In specific areas of known geological stability or where adequate protective devices already exist (as determined by adequate geologic evaluation and historic evidence), a lesser area of demonstration may be designated. The city may designate a greater area of
demonstration or exclude development entirely in areas of known high instability. (Ord. 677 §15 (A), 1989; Ord. 628 §2(part), 1987).
17.68.110 Earthquake fault areas. In any area determined by the State Geologist, pursuant to Public Resources Code Section 2622, to be a special studies zone, a geologic/ engineering report shall be required before any developmental permit may be issued. Nothing in this section shall diminish the duties of any person arising out of the AlquistPriolo- Special Studies Zone Act (Public Resources Code Section 2621 and following.) (Ord. 628 §2(part), 1987).
17.68.120 Floodplain. Any development in the GH district which is proposed to be located within the one-hundred year riverine floodplain of Soquel Creek or Noble Creek shall be constructed so as to conform to the Federal Flood Insurance 221
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Chapter 17.68 – GH Geologic Hazards District
5 program guidelines for development control. (Ord. 628 §2(part), 1987).
17.68.130 Landslide areas. In areas determined by the
planning director, the public works director, the building inspector or the planning commission to have a landslide potential, a geologic/engineering report shall be required. (Ord. 628 §2(part), 1987).
17.68.140 Steep slope areas. Any development in the G-H district which is designed to be built on a slope in excess of thirty percent shall require a geologic/engineering report. The report shall include methods of achieving structural stability as well as any mitigation measures for preventing erosion. (Ord. 677 §15 (B), 1989: Ord. 628 §2(part), 1987).
17.68.150 Other Geologic hazard areas. The planning
commission may require a geologic/engineering report in other areas of geologic hazards. (Ord. 628 §2(part), 1987).
17.68.160 Contents of geologic/engineering reports. All geologic/engineering reports required by this chapter shall be prepared according to the guidelines for practice issued by the California Division of Mines and Geology, specifically, No. 37 Guidelines for Preparing Engineering Geological Reports and Coastal Commission Guidelines for Bluff Top Development. The required geological reports for all developments shall be prepared by a registered geologist or professional engineer with expertise in soils or foundations eng ineering, or by a certified engineering geologist. Because the city staff may not contain the expertise necessary to evaluate the adequacy of a report, the city may employ, at the applicant's expense, an appropriate expert to evaluate the adequacy of the report. (Ord. 628 §2(part), 1987).
Bluff and hillside stability evaluations shall consider a range of coastal hazards—including erosion rates, wave climate, storm surge, and sea-level rise—over a 50-year planning horizon.
Proposed development shall incorporate mitigation measures designed to perform for a minimum of 50 years post-occupancy.
Slope stability shall meet minimum factors of safety of 1.5 (static) and 1.1 (seismic, pseudostatic) unless otherwise justified by a site-specific analysis prepared and sealed by a California-licensed Geotechnical Engineer (GE) or Certified Engineering Geologist (CEG) and accepted by the City of 222
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6 Capitola.
17.68.170 Appeals. Planning commission determination made pursuant to this chapter may be appealed to the city council as provided in Chapter 2.56. (Ord. 628 §2(part), 1987).
17.68.180 Requirement of disclosure of property location by seller to seller's agent. A person who is acting ron behalf of real property which is located within a GH district, or the seller if he is they are acting without an agent, shall disclose any prospective purchaser the fact that the property is located within a GH district. The planning director may adopt methods of informing owners and real estate salespersons of this
requirement. (Ord. 628 §2(part), 1987).
17.68.190 Report to be noted on subdivision maps. All
geologic/engineering reports prepared in conjunction with an application to subdivided property shall be noted on the map as provided in Government Code Section 66434(f). (Ord. 628 §2(part), 1987).
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Capitola Municipal Code
Chapter 17.76 PARKING AND LOADING
The Capitola Municipal Code is current through Ord. 1067, and legislation passed through November 14, 2024.
Excerpt from Chapter 17.76 - PARKING AND LOADING
17.76.090 Visitor serving parking.
A. Shuttle Program Parking. Parking for the free summer beach shuttle program shall be provided in a remote lot or lots, such as those located on Bay Avenue and the Village public parking lots. The free shuttle shall operate, at a minimum, on weekends and holidays between Memorial Day weekend and Labor Day weekend.
B. Public Parking in the Coastal Zone.
1. Public parking existing as of June 9, 2021, in the following locations in the CF zoning district shall be maintained for public parking:
a. The Upper City Hall parking lot;
b. The Cliff Drive overlook parking; and
c. The Cliff Drive Southern Pacific Regional Transportation Commission railroad rightof-way parking unless Cliff Drive must be relocated due to cliff erosion.
2. Substantial changes in public parking facilities in the coastal zone require a local coastal program (LCP) amendment.
3. Expansion of any existing legally established residential parking programs and/or new residential parking programs in the coastal zone require an amendment to coastal development permit 3-87-42 and consistency with the LCP land use plan.
4. The city shall evaluate the potential impact on public coastal access when considering a coastal development permit application for any development that would reduce public parking spaces near beach access points, shoreline trails, or parklands, including any changes to the residential parking program established under coastal development permit 3-87-42.
When parking is reduced, the city shall evaluate alternative opportunities for public coastal access as needed to ensure existing levels of public access are maintained, or if possible enhanced. Such opportunities may include bicycle lanes and bicycle parking, pedestrian trails, relocated vehicular parking spaces, and enhanced shuttle/transit service. (Ord. 1043 § 2 (Att. 2), 2020)
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4902-9328-5250 v1
RESOLUTION NO. 24-___
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAPITOLA ADOPTING
AMENDMENTS TO THE LOCAL COASTAL PROGRAM LAND USE PLAN
(CHAPTER 2: PUBLIC ACCESS AND CHAPTER 7: NATURAL HAZARDS) AND
DIRECTING THE CITY MANAGER TO SUBMIT THE AMENDMENTS TO THE
CALIFORNIA COASTAL COMMISSION FOR CERTIFICATION (CEQA EXEMPT) WHEREAS, the City of Capitola’s Local Coastal Program (LCP) was certified by the California Coastal Commission in December of 1981 and has since been amended from time to time; and
WHEREAS, the LCP Land Use Plan (LUP) is a component of the City’s certified Local Coastal Program that establishes policies for land use, public access, coastal resources, and hazard management; and
WHEREAS, the Public Works Department initiated the Cliff Drive Resiliency Project as a comprehensive effort to address bluff erosion, sea-level rise, and stormwater drainage impacts along the Cliff Drive corridor while also enhancing pedestrian, bicycle, and coastal access; and
WHEREAS, the City of Capitola received a $500,000 Coastal Commission LCP grant for the Cliff Drive Resiliency Project, requiring updates to Capitola’s LCP relative to the Cliff Drive improvements; and
WHEREAS, City staff prepared draft amendments to the LUP, specifically Chapter 2:
Public Access and Chapter 7: Natural Hazards, to update outdated references, clarify policies, and introduce new policies related to shoreline structures, sea-level rise, climate adaptation planning, and public access (“LUP Amendments”), which are attached hereto as Exhibit A and incorporated herein by this reference; and WHEREAS, the draft LUP Amendments were made available for public review at City Hall, the Community Center, the Capitola Library, and online, in compliance with Coastal Act Section 30514; and
WHEREAS, the Planning Commission held a duly noticed public hearing on September 4, 2025 and October 2, 2025, reviewed the proposed LUP Amendments, considered all public comments, and recommended the City Council approve the LUP Amendments; and
WHEREAS, Coastal Commission staff have requested two additional clarifying changes to the LUP Amendments as detailed in the staff report associated with this Resolution, 225
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which are not substantial and do not require reconsideration by the Planning Commission pursuant to Gov. Code section 65356; and
WHEREAS, the City Council conducted a duly noticed public hearing on January 8, 2025, considered all testimony, and determined that the proposed LUP Amendments, including the additional clarifying edits requested by Coastal Commission Staff, are consistent with the General Plan and intended to be implemented in a manner fully conforming with the California Coastal Act.
NOW, THEREFORE, BE IT HEREBY RESOLVED, by the City Council of the City of Capitola, that:
1. The above recitals are incorporated herein by this reference.
2. Adoption of the LUP Amendments is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Public Resources Code section 21080.9, which exempts activities and approvals by any local government for the preparation and adoption of a local coastal program or long-range land use development plan under the Coastal Act. Further, the Project is categorically exempt from CEQA because it can be seen with certainty that there is no possibility that the Project will have a significant effect on the environment. (CEQA Guidelines, 14 Cal. Code of Regs. Section 15061(b)(3)).
3. The City Council hereby adopts the LUP Amendments, and this Resolution declares and reflects the City’s intent to amend the Local Coastal Program Land Use Plan, as drafted, if certified by the California Coastal Commission, in full conformity with the provisions of the California Coastal Act.
BE IT FURTHER RESOLVED, that the City Manager or their designee is directed to submit the LUP Amendments to the California Coastal Commission for its review and certification. If the Coastal Commission approves the LUP Amendments, they will take effect automatically upon Coastal Commission approval. If the Coastal Commission modifies the LUP Amendments, only the modifications will require formal action by the City of Capitola.
I HEREBY CERTIFY that the foregoing resolution was passed and adopted by the City Council of the City of Capitola on the ___ day of ____________, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
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21 Includes changes per CAP-MAJ-1-07
Includes changes per CAP-MAJ-2-04
II. PUBLIC ACCESS COMPONENT
BACKGROUND
The California Coastal Act of 1976 includes strong policies to assure public access to and along the shoreline. Section 30500(a) of the Act requires that each Local Coastal Program contain a specific public access component to assure that maximum public access to and along the coast and public recreational opportunities are provided.
RELEVANT COASTAL ACT POLICIES
There are numerous references throughout the Coastal Act to the provision and protection of public access. Section 30001.5 provides the legislative intent on access protection.
Section 30001.5 states:
The legislature further finds and declares that the basic goals of the state for the coastal zone are to:
a) Protect, maintain, and, where feasible, enhance and restore the overall quality of the coastal zone environment and its natural and manmade resources. b) Assure orderly, balanced utilization and conservation of coastal zone resources taking into account the social and economic needs of the people of the state.
c) Maximize public access to and along the coast and maximize public recreational opportunities in the coastal zone consistent with sound resources conservation principles and constitutionally protected rights of private property owners.
d) Assure priority for coastal-dependent and coastal-related development over other development on the coast. (Amended by Cal. Stats. 1979, CH. 1090.) e) Encourage state and local initiatives and cooperation in preparing procedures to implement coordinated planning and development for mutually beneficial uses, including educational uses, in the coastal zone.
The following are the major Coastal Act policies dealing with public access. 227
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22 SEC. 30210
In carrying out the requirement of Section 4 of Article X of the California Constitution, maximum access, which shall be conspicuously posted, and recreational opportunities shall be provided for all the people, consistent with public safety needs and the need to protect public rights, rights of private property owners, and natural resource areas from overuse.
SEC. 30211
Development shall not interfere with the public’s right of access to the sea where acquired through use or legislative authorization, including, but not limited to, the use of dry sand and rocky coastal beaches to the first line of terrestrial vegetation.
SEC. 30212
a) Public access from the nearest public roadway to the shoreline and along the coast shall be provided in new development projects, except where (1) it is inconsistent with public safety, military security, or the protection of fragile coastal resources; (2) adequate access exists nearby; or (3) agriculture would be adversely affected.
Dedicated accessway shall not be required to be opened to public use until a public agency or private association agrees to accept responsibility for maintenance and liability of the accessway.
b) For purposes of this section, “new development” does not include:
1) Replacement of any structure pursuant to the provisions of subdivision (g) of section 30610.
2) The demolition and reconstruction of a single-family residence; provided that the reconstructed residence shall not exceed either the floor area, height, or bulk of the former structure by more than 10 percent, and that the reconstructed residence shall be sited in the same location on the affected property as the former structure.
3) Improvements to any structure which do not change the intensity of its use, which do not increase either to floor area, height, or bulk of the structure by more than 10 percent, which do not block or impede public access, and which do not result in a seaward encroachment by the structure.
4) Any repair or maintenance activity for which the commission has determined, pursuant to Section 30610, that a coastal development permit will be required unless the regional commission or the commission determines that such activity will have an adverse effect on lateral public access along the beach.
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23 As used in this subdivision, “bulk” means total interior cubic volume as measured from the exterior surface of the structure.
c) Nothing in this division shall restrict public access, nor shall it excuse the performance of duties and responsibilities of public agencies which are required by Sections 66478.1 to 66478.14, inclusive, of the Government Code and by Section 4 of Article X of the California Constitution. (Amended by Cal. Stats. 1979, Ch. 919.)
SECTION 30212.5
Wherever appropriate and feasible, public facilities, including parking areas or facilities, shall be distributed throughout an area so as to mitigate against the impacts, social and otherwise, of overcrowding or overuse by the public or any single area.
SECTION 30213
Lower cost visitor and recreational facilities and housing opportunities for persons of low and moderate income shall be protected, encouraged, and where feasible, provided.
Developments providing public recreational opportunities are preferred. New housing in the coastal zone shall be developed in conformity with the standards, policies, and goals of local housing elements adopted in accordance with the requirements of subdivision (c) of Section 65302 of the Government Code.
SECTION 30214
a) The public access policies of this article shall be implemented in a manner that takes into account the need to regulate the time, place, and manner of public access, depending on the facts and circumstances in each case; including, but not limited to, the following:
1) Topographic and geologic site characteristics.
2) The capacity of the site to sustain use and the level of intensity of use. 3) The appropriateness of limiting public access to the right to pass and repass, depending on such factors as the fragility of the natural resources in the area and the proximity of the access area to adjacent residential uses. 4) The need to provide for the management of access areas, so as to protect the privacy of adjacent property owners and to protect the aesthetic values of the area by providing for the collection of litter.
b) It is the intent of the Legislature that the public access policies of this article be carried out in a reasonable manner that considers that equities and that balances the 229
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24 rights of the individual property owner with the public’s constitutional rights of access, pursuant to Section 4 of Article X of the California Constitution. Nothing in this section, or any amendment thereto, shall be considered as a limitation on the rights guaranteed to the public under Section 4 of Article X of the California Constitution.
c) In carrying out the public access policies of this article, the commission, regional commissioners and any other responsible public agency shall consider and encourage the utilization of innovative access management techniques, including, but not limited to, agreements with private organizations which would minimize management costs and encourage the use of volunteer programs. (Added by Stats. 1979, Ch. 919.)
DEFINITIONS
Shoreline Access is the provision of the pedestrian access from a public thoroughfare to and along the shoreline.
Lateral Accessway is an area of land providing public access along the water’s edge.
Lateral accessways should be used for public pass and repass, passive recreational use, or as otherwise found appropriate in a certified LUP. Lateral accessways can be on a beach, where contact with the water’s edge is possible, or a bluff where only visual access is possible, or at the rear (water side) of buildings adjacent to the water’s edge (i.e. the Esplanade).
Vertical Accessway is an area of land providing a connection between the first public road, trail, or use area nearest the sea and the publicly owned tidelands or established lateral accessway. A vertical accessway should be used for public pass and repass, passive recreational use or as otherwise found appropriate in a certified LUP.
Scenic Overlook is an area of land providing public access along a shorefront bluff or along the coast inland from the shoreline.
Upland Trail is an area of land providing public access along a shorefront bluff or along the coast inland from the shoreline. An upland trail can also provide access from the first public road nearest the sea to a scenic trail or another upland trail paralleling the shoreline. An upland trail should be used for public pass and repass, or as otherwise found appropriate in a certified LUP.
EXISTING ACCESS AND FUTURE DEMAND IN CAPITOLA
Working Paper Number One for the Capitola LUP entitled Access (issued in June, 1979) includes a description of existing vertical and lateral accessways and scenic vista points in the Capitola Coastal Zone. The Working Paper also includes a detailed survey of the parking situation in Capitola Village as a constraint to access. Additional work on parking and vehicular concerns was done by a transportation consultant and the data from those studies is also available for review.
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25 The land adjacent to Capitola’s shoreline is densely developed with residential development along the Cliff Drive and Grand Avenue bluffs, as well as a mixture of residential and commercial uses in Capitola Village adjacent to Capitola Beach. Vertical access to the sea from Cliff Drive and Grand Avenue is virtually impossible difficult due to the height of the cliff and substantial continuing erosion; however, there are public access stairways from both Cliff Avenue and Cliff Drive, which connect to the Village and Hooper Beach, respectively. The wooden staircase is often impacted during storm events causing temporary closures to the Cliff Drive access to Hooper Beach. That said, most users of the Capitola shoreline typically gain access from the Esplanade, the wharf area, or from New Brighton beach.
Following is a general description of the major lateral and vertical access areas and scenic overlooks.
CLIFF DRIVE (all descriptions below as of 2025)
Two well-used viewpoints are located along Cliff Drive between the western city limit line and the wharf. Both pullouts are unpaved, have garbage cans and are lined with safety railings approximately five feet inland because the cliff was receding and undermining the posts. The western viewpoint is owned by the City and has room for approximately 11 cars. There are no benches, but people sometimes sit on the railing.
Through a Coastal Conservancy Grant, the City has recently provided a stairway access to the beach. The city is developing a vista point along Cliff Drive in the turnout above the Hooper Beach stairway.
On the inland side of Cliff Drive, an unpaved area along the Southern Pacific right-ofway is used for public parking (approximately 50 spaces). The City has a formal agreement with Southern Pacific concerning use of this area. People going to Capitola Beach often park here and walk down to the beach. There are no sidewalks or bike paths in the City’s narrow road right-of-way; this causes dangerous conflicts between pedestrians and vehicles. The City of Capitola has been given a grant by the Coastal Conservancy (for funding) to develop a paved parking lot on the Southern Pacific Railroad property.
Cliff Drive is a key route linking Capitola Village to the greater Santa Cruz County community. The corridor provides visitors with parking and access to the wharf, beach and village, as well as two popular vista points in the area between the western city limit line and the wharf. On the inland side of Cliff Drive, the City manages a parking area within the former Southern Pacific right-of-way, by formal agreement with the Santa Cruz County Regional Transportation Commission (SCCRTC), which purchased the rail right-of-way in 2012.
A City stairway provides access to Hooper Beach at the downcoast viewpoint. The Cliff Drive corridor does not include contiguous sidewalks or a separated bike path. In the upper Cliff Drive corridor, pedestrians and bicyclists share an approximately six foot231 Item 8 B.
26 wide portion of the right-of-way, which may result in dangerous conflicts between pedestrians, vehicles, and cyclists. The wooden staircase is often impacted during storm events causing temporary closures to the Cliff Drive access to Hooper Beach.
Regional improvements in multi-modal access in the RTC right-of-way are planned as part of a Monterey Bay Sanctuary Scenic Trail , but they are not currently (2025) in place.
The Cliff Drive corridor has historically been protected from erosion by a shoreline armoring system consisting of a rock revetment at the base of the bluff and a retaining wall at the top of the bluff. The base of the bluff has been undermined over time, and the retaining wall at the top of the bluff is being undercut as the bluff recedes. Adapting the corridor to respond to ongoing erosion and increasing impacts due to sea level rise is necessary to preserve the Cliff Drive corridor and improve conditions for all users.
Protecting the bluff with an updated armoring system is likely a necessary component; however, a full analysis as part of a project evaluation that identifies a suite of alternatives is essential to determine a preferred and feasible course of action. The cost of addressing these threats is high, and if funds are not available to address the entire bluff all at once, a phased approach should be employed.
HOOPER BEACH
This small City-owned and maintained beach is located west of the wharf. Access at the end of Wharf Road is down a roadway that is occasionally used as a boat ramp. Access is also provided via a vertical stairway along the midpoint of Cliff Drive, and as noted above, is often impacted during storm events causing temporary closures. There are 11 public parking spaces at the end of Wharf Road; 9 in close proximity to the front of the Venetian Court and approximately 26 private spaces reserved for guests of the two motels. Pedestrian access is also obtained along the beach from the main beach to the east.
Underlying title to Hooper Beach is owned by Esther H. Hooper. There are no signs indicating that this beach is private and there are no barriers to keep the public out. On the beach itself are located two garbage cans and a City sign; “No dogs on beach – Capitola City Ordinance.” These improvements were placed there by the City.
In recent years, the City’s maintenance of this beach has included lifeguard service (summer only), raking, litter pick-up and rat abatement in the rocks (principally in the new rip-rap placed below the Cliff Drive houses).
Public beach use is clearly evident. Also, small sailboats are stored on the beach during the summer.
CAPITOLA WHARF
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27 The Wharf is located on tidelands and submerged public trust lands. In 1935, the State gave the lands in trust to the County of Santa Cruz. In December of 1979, Santa Cruz County conveyed those portions of the tidelands and submerged lands within City limits to the City of Capitola.
Before storms weakened the structure in early 1978, and made it unsafe for public use, the wharf was used for pier fishing, a bait and tackle shop, boat rental and boat launching.
The City of Capitola owns the wharf and received a grant from the Wildlife Conservation Board to partially fund the rehabilitation of the wharf. The wharf restoration project was financed with 75% federal and state funds, plus 25% local funds. Repair work on the wharf structure was completed in 1981.
New buildings on the wharf now house a small restaurant, bait and tackle shop, boat rental concession and wharf maintenance.
The reopening of the wharf has provided free public fishing access. A condition of the financial participation of the Wildlife Conservation Board is that free public access to the facility be maximized.
Following completion in 1981, the City built two structures on the end of the wharf including a small restaurant and a bait and tackle shop with boat rental concessions. The wharf continued to provide free public fishing access. A condition of the financial participation of the Wildlife Conservation Board was that free public access to the facility be maximized.
In 2021, the City completed Phase 1 of a Wharf Resiliency and Public Access Improvement Project. The project repaired the steel piles at the head of the wharf and the structure underneath the wharf buildings. In the winter of 2022 and 2023 the Wharf sustained severe storm damage which resulted in the demolition of the two structures housing the restaurant and the bait and tackle shop.
Phase 2 of the Wharf Resiliency and Public Access Improvements incorporated storm damage repair into the design. The project involved new decking, new railing, repairs and replacement to 148 piles, utility repairs and replacement, and the installation of permanent public restrooms with three stalls. Additionally, amenities including a new gated archway with mosaic panels, a bronze fish pathway leading to 4 scenic viewing stations each with binoculars and picnic tables, a water filling station, 40 benches, 4 picnic benches, 10 bike racks, and public art donor wall were installed through a partnership with a local community group which created the Capitola Wharf Enhancement Project. The Capitola Wharf reopened in the summer of 2024.
In 2024, the City began work on a Wharf Master Plan, to guide the future use of the Wharf. This effort was still in the initial public outreach and planning phase in the summer of 2025.
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28 VENETIAN COURT
This condominium style subdivision (apparently one of the first in the state) was created in 1924. The units, fronting on Capitola beach, include a paved walkway with a contiguous two foot seawall, following the perimeter boundary of the subdivision at the edge of the beach. Access to the units (which are used as permanent homes, weekend homes, vacation rentals and motel units) and to the beach is gained in three locations:
• at the west side of the complex, a paved walkway comes down from the end of the Wharf Road to the perimeter walkway;
• a paved walkway starting at the sidewalk along Wharf Road and passing down through the middle of the complex with a sign at the beginning of the walkway which reads:
“Private Property
Right to Pass Revocable At Any Time”
• four steps come down from the sidewalk at the west end of the Stockton Avenue bridge and join the perimeter walkway.
THE ESPLANADE
There are several commercial buildings in the ocean side of the Esplanade. Between the buildings are separate accessways from the Esplanade to the beach:
• between 221 and 215 Esplanade is a breezeway that dead ends at Soquel Creek Lagoon, without steps down to the waterline;
• between 207 and 203 the Esplanade is a breezeway that terminates on Capitola Beach; • running behind 203 the Esplanade is a narrow deck that was declared open to public use by the courts (Hansen V. Korzyma).
Curb Parking is provided along the Esplanade.
CAPITOLA BEACH
The City beach receives extensive public use. An aerial survey taken by the County on four afternoons in August of 1976 showed an average of 429 people on the beach in midafternoon and a maximum of 520. With an estimated area of 4.4 acres, the average density of beach use was 97.4 people per acre, with a maximum of 118.2. Trash cans and a public restroom at the beach are maintained by the City.
Public parking is located along both sides of the Esplanade and on nearby city streets. A groin marks the eastern end of the beach.
The recently completed Esplanade Park project, a joint project between the Coastal Conservancy, the County of Santa Cruz Sanitation District and the City of Capitola, has 234
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29 provided a landscaped pedestrian area used for viewing and other passive open space activities. The project has consolidated the restrooms and sewage pump station into an architecturally-designed building. Other benefits of the project include:
• providing facilities adjacent to the beach and the sea for persons who find use of the beach itself difficult (i.e. the elderly and handicapped, etc.) • significantly expanding area of land near the beach available for open space recreational use for residents and visitors.
• providing opportunities for enhancement of a visually degraded area.
FROM CAPITOLA BEACH TO NEW BRIGHTON BEACH
During low tide, people sometimes pass between Capitola and New Brighton beaches by walking along a narrow sand and rock beach that lies at the base of 90 foot high bluffs.
Steep topography restricts access options from above the beach; due to the dangerous situation caused by the eroding cliffs, access is discouraged by the City along the cliff base as well.
EL SALTO/ESCALONA GULCH
At the turn of the century, access along the top of the cliff was a tree-lined public path known as Lovers’ Lane, on the ocean side of Grand Avenue. Lovers’ Lane was lost in the 1930s because of cliff erosion.
Escalona Drive (called Railroad Avenue on the 1884 Camp Capitola subdivision map) is paved to the point approximately 500 feet east of Sacramento Avenue. At that point, a chain blocks vehicular access and what is apparently a private dirt road curving south out toward the ocean. The original subdivision map shows Escalona Drive in this area curving around to meet Grand Avenue at the edge of the cliff. The current parcel map shows Grand Avenue ending at Sacramento Avenue – it has been closed between Hollister and Sacramento Avenues because of cliff erosion. These parcel maps show Escalona Drive with an undeveloped right-of-way curving over 400 feet beyond the chain.
A footpath runs from near the chain on Escalona Drive down through Escalona Gulch and up to Grove Lane on the east side of the gulch. The course of the gulch becomes steep near the ocean and there is no access to the water below. A five foot wide pedestrian easement is recorded on the east bank of the gulch, but it does not run as far as the railroad.
A condition of coastal permit No. P-80-11 for a land division on part of the El Salto Resort property, was that an offer of dedication for two easements be made. These easements are to provide a public trail from El Salto Drive (also known as Prospect Street) to the bluff edge for observation of the shoreline. So far, the property owner has 235
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30 chosen not to exercise the permit for the land division and has not recorded the easement offers. If and when these offers are recorded, the city should accept it in order to help realize the goal of a bluff-top trail.
RAILROAD
The Southern Pacific Regional Transportation Commission Railroad right-of-way next to Park Avenue has been used by pedestrians traveling parallel to the coastline. The wide part of the right-of-way is used by many people to view the ocean. The entrance to this potential vista point would be from Grove Lane as it crosses the railroad tracks. Two undeveloped pedestrian paths cross the right-of-way on the way down to New Brighton beach; the western path goes from the parklike area in the wide portion of the right-ofway down steeply to the emergency access road leading to New Brighton beach. The other path goes from Park Avenue opposite Coronado Street down to the New Brighton parking lot. Both paths are heavily used by the local residents, though neither one is recognized as an official access point by State Park representatives. The authorized entrance to the park is almost one-third of a mile to the northeast. During early public workshops on the Capitola LCP, citizens and City officials suggested that these paths should remain open. Later sections of this document include information on possibilities for future uses of the railroad right-of-way and for New Brighton State beach.
SOQUEL CREEK
The Local Coastal Program Working Paper Number 1 – Access – described the issues and possibilities concerning public access along Soquel Creek. The Capitola General Plan Circulation Element has a policy that Soquel Creek have a pedestrian path from Highway One to the Village Center. In fact, the Soquel Creek corridor has a long history of public trail use. As development has taken place in the corridor, access has been altered, and in some cases, diminished.
Because of the sensitive nature of the riparian corridor and the habitat it provides for various species of resident and migratory birds (including the black crown night herons, which are on the Audobon Society “blue list”) an extension of the path, and especially the use of bridges, should not be required.
The dedications offered by Timmons, Rafaelo and Golino, for access easements should not be accepted by the City. However, the City shall accept and require scenic conservation easements to ensure that the banks of the creek are maintained in their natural conditions.
The City should continue to maintain the existing paths and provide for public access at the city-owned parks along the northerly reaches of the creek. In addition, the city should enhance the public’s abilities to reach upper Soquel Creek from the lagoon, by way of Riverview Drive and Wharf Road.
NEW BRIGHTON STATE BEACH
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31 New Brighton beach, as part of the state park, has become a large day-use parking area.
Facilities for camping accommodate recreational vehicles and tents. Campers arriving by bicycle can stay overnight for a nominal fee. In addition to the previously-mentioned emergency access road, there is a walkway down from the camping area to the beach.
People can also enter New Brighton beach on foot from the southeast along the beach from Seacliff and Rio Del Mar. The county’s aerial beach survey in 1976 counted an average of 175 people on this 13.4 acre beach, for an average density of 13.1 people per acre. The maximum counted in four August afternoons was 223, representing a density of
16.6 people per acre. The City would encourage greater usage and access by the public of New Brighton beach.
EXISTING POLICIES AND REGULATIONS
The Capitola General Plan (January 1975) includes some policies for the provision and protection of public access within Capitola. These include goals for the creation of a cycling and pedestrian path system and the protection and enhancement of scenic overlooks. Some of the general plan goals are beginning to be realized through the completion of the East Cliffs bikeway by Santa Cruz County, and by the requirement of access easements by the City and Coastal Commission. The City is also taking positive steps toward improving coastal access by restoration of the Capitola Wharf, obtaining a Coastal Conservancy Grant for a stairway from the wharf to the beach, and through operation of the shuttle bus system.
There is no reference or requirement in Capitola’s zoning ordinance regarding the provision of access with new or expanded developments. The City has required access easements along Soquel Creek and the shoreline in development permits on a case-bycase basis. While this is a positive step, a certifiable LUP must include a more comprehensive long-term program for providing and protecting coastal access. The following policies set the framework for the access program. The implementation portion of the LCP will include specific regulations requiring access and the City’s program for improving trails and overlooks.
The LCP represents the commitment of the City of Capitola to provide continuing protection and enhancement of its coastal resources. It is recommended that certain resource areas in this jurisdiction may require further public attention to ensure their protection and enhancement. Included in this concern are:
• degraded, or less that pristine, wetlands of any size, such as the lagoon at the mouth of Soquel Creek;
• some form of deterioration or development pressures;
• areas which are appropriate for well-adjusted visitor, commercial, and recreational facilities such as the beach area.
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32 POLICIES AND IMPLEMENTATION FOR
PUBLIC ACCESS COMPONENT – CAPITOLA LCP
GENERAL POLICIES
Policy II-1 It shall be the policy of the City of Capitola to provide safe and adequate pedestrian access to and along the shoreline as designated in the Shoreline Access Plan (see Maps II-1,2, and 3).
Implementation:
a) Develop ordinance to require dedications to implement the shoreline access plan.
Use available coastal access and open space grant programs for acquisition and development (i.e. Coastal Conservancy and State Parks and Recreation).
Policy II-2 It shall be the policy of the City of Capitola to maintain the existing shuttle bus system so that it serves as an alternative to automobile use and parking within the Village. Furthermore, the City shall continue to seek out and implement other parking alternatives that may become available in the future. The intensity of development within Capitola Village shall be limited to the availability of parking. The City may designate two Village metered parking spaces, or similar space, to allow for the operation of a Valet Parking Program. These two parking spaces shall be available for use by the general public when the Valet Parking Program is not in operation. The Valet Parking Program shall not otherwise reduce the general public parking supply.
Implementation:
a) The City shall continue to provide a free summer beach shuttle program on summer weekends and summer holidays from a remote lot or lots, such as on Bay Avenue.
b) Continue the financing mechanism for the free summer beach shuttle program.
c) Periodically review parking innovations and multi-modal enhancements in other coastal communities for possible use in Capitola.
d) The City or a private entity approved by the City may operate a valet parking program by leasing private parking spaces and/or lots during 238
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33 weekends and/or evenings, and where the spaces/lots are located within a reasonable distance from the Village. The program operator can charge a reasonable fee, approved by the City, to users of the valet parking program. For a fee, automobile drivers may leave their cars with a valet, when then has the choice to park in the leased private parking spaces/lots when the businesses or services that typically use these spaces/lots are not open. The owners of these spaces/lots are compensated for the use of the spaces/lots, and issues such as liability will be addressed by the private company operating the valet service.
Policy II-3 It shall be the policy of the City of Capitola to design and implement a sign program for visitor information to specifically facilitate the use of beach access points.
Implementation:
Develop a beach access signage program and a signage program to direct visitors to the Shuttlebus lot, keeping traffic from circling in the Village area when possible.
SPECIFIC POLICIES
Policy II-4 Provide for a safe pedestrian and bicycle path and/or sidewalk on or along Cliff Drive, and provide improvements including landscaping, benches, etc., and parking turn-out areas to facilitate both pedestrian and auto use.
The City shall evaluate ways to maximize Cliff Drive’s public access and multimodal transportation utility, and shall pursue funding and projects to transform Cliff Drive into a complete street to provide safe access for pedestrians, bicyclists, and motorists. Development along Cliff Drive shall be designed to enhance and maximize public access and multimodal transportation opportunities while simultaneously minimizing and mitigating for any unavoidable adverse coastal resource impacts to the maximum extent feasible. Any critical infrastructure/public works development along Cliff Drive shall incorporate user amenities such as benches, waste, and recycling facilities, and vehicular and bicycle parking for those visiting the coastline.
Implementation:
a) Develop a bicycle multi-modal improvement plan for the Cliff Drive/Village/Park Avenue area and seek Regional Transportation Commission funds for development.
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34 b) Develop a beautification and access improvement plan for the Cliff Drive Wharf area.
Policy II-5 Obtain agreement from Southern Pacific and improve parking area on inland side of Cliff Drive within Southern Pacific and Cliff Drive rights of-way. This is intended to add to Wharf user parking.
Continue collaboration with SCCRTC through design and construction phases of the Coastal Rail Trail project to provide safe access for pedestrians and bicyclists travelling along Cliff Drive. Integrate parking along Cliff Drive to support users visiting the coast, wharf, and coastal trail.
Implementation:
Acquire necessary easements for long-term usage of Southern Pacific right-of-way for parking and utilize Coastal Conservancy funding for development.
HOOPER BEACH AREA
Policy II-6 Overnight storage of catamarans and other small craft will not be allowed to conflict with the use of beach area by the general public.
Implementation:
Establish an ordinance to prohibit overnight storage of catamarans and other small craft on the beach, under the wharf, or in any other area used by the public.
Policy II-75 Maintain, at minimum, the existing rights of the public to use the sandy beach.
Implementation:
None.
WHARF AREA
Policy II-86 Complete restoration of the wharf as a free access public fishing pier and develop small, low intensity facilities that provide complementing public services (i.e. food service facilities, fishing/boating accessory shop, maintenance and repair operations, water taxi service, public restrooms, etc.)
Implementation
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35 Develop concessionaire agreements that specify and limit types of uses on the wharf, consistent with Policy II-68.
Policy II-97 Provide adequate parking nearby to support the wharf uses (specifically boat launching activities) and establish operational guidelines that minimize conflicts between pedestrians and Wharf traffic.
Implementation:
a) Acquire necessary easements for long-term usage of Southern Pacific right-of-way for parking and utilize Coastal Conservancy funding for development.
a) Develop concessionaire agreements that specify and limit types of uses of wharf consistent with Policy II-68.
Policy II-108 Improve the design of Wharf Road/Cliff Drive intersection to improve multi-modal transportation and traffic circulation (see Exhibit II-1).
Implementation:
Place improvements for intersection within the City’s Capital Improvements Program (1981-82).
VENETIAN COURT AREA:
Policy II-119 Clarify and maintain public access over and along the Venetian Court perimeter walkway adjacent to the public beach.
Implementation:
Maintain the existing public access through and along the Venetian Court.
THE VILLAGE AREA:
Policy II-1210 Develop a scheme for safe multi-modal bicycle connection between Cliff Drive and Park Avenue and improve multi-modal bicycle parking facilities.
Implementation:
Develop overall bicycle a multi-modal improvement plan for Cliff DriveVillage-Park Avenue transition utilizing directional signing and seek Regional Transportation Commission funds for development. 241
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36 CAPITOLA BEACH AREA:
Policy II-1411 Maintain a commitment to all existing access walkways and paths to Capitola Beach.
Implementation:
Develop an inventory of all existing, as well as desired public accessways.
RESTROOM/PUMP STATION PARKING AREA:
Policy II-1512 Maintain the Esplanade public facilities/park area improvements.
BETWEEN CAPITOLA AND NEW BRIGHTON BEACH:
Policy II-1613 Access along beach should not be formalized, and due to safety factors, should be signed to warn of potential hazards from tidal action and cliff erosion.
Implementation:
Provide warning signing at either end of the beach.
Policy II-1714 Designate Park Avenue and the Southern Pacific Railroad right-of-way along the bluff top as the lateral coastal accessway Preserve coastal access between Capitola Village and New Brighton and develop vista points and connecting pathways in cooperation with Southern Pacific Railroad RTC and State Parks. Evaluate the potential for continuation of the Grand Avenue bluff-top path from Hollister Avenue to Escalona Avenue concurrent with any development proposals for parcels adjacent to this area.
Implementation:
Acquire right-of-way easements from Southern Pacific and Seek funding from the Transportation Commission, Coastal Conservancy, and private sources for multimodal improvements and development of bicycle path, improved pedestrian accessways, and vista points which are not hazardous.
Policy II-1815 Because of environmental sensitivity of the natural ecosystem along the creek, the City will maintain existing pathways and park sites for public use but will prevent further disruption that might occur because of expansion of path systems along Soquel Creek.
Implementation:
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37 Develop an ordinance that requires scenic conservation easements or land dedications to preserve the open space/habitat qualities of Soquel Creek. 243
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74 VII. NATURAL HAZARDS
BACKGROUND
The hazards policy group of the land use plan concerns the following: seismic shaking, liquefaction, tsunamis, landslides, flooding, and bluff and beach erosion. A brief definition of each type of hazard is given along with a summary of the hazards existing in Capitola’s coastal zone. For a more detailed discussion of each type of hazard and the remainder of the background information below, see Capitola LCP Working Paper #2 (May 1980; available at Commission or City offices).
SEISMIC SHAKING
Seismic shaking is caused by movement of the earth’s crust in fault zones. Active faults are located offshore from Capitola in Monterey Bay and in the Santa Cruz mountains.
While no active faults underlie the City, a high magnitude earthquake along any of the nearby faults would result in intense shaking.
LIQUEFACTION
Liquefaction occurs in areas underlain by unconsolidated water-saturated sediments.
During seismic shaking, these areas acquire liquid-like properties which can result in ground failure and buildings sinking, tilting, or toppling. The hazard areas in the coastal zone are the Village, the Soquel Creek mouth and banks, and noble Gulch. A map is attached which shows the areas subject to liquefaction.
TSUNAMIS
Tsunamis or seismic sea waves are large oceanic waves, resulting from submarine volcanic eruptions, seismic events, or landslides. The maximum probable tsunami to hit Capitola’s shoreline is estimated to be 20 feet in height. Portions of the Village and mouth of Soquel Creek could be inundated as indicated on the attached map.
LANDSLIDES
Landslides occur as a result of ground failure in inherently unstable materials, as well as during seismic shaking on steep slopes. Several human-induced factors contribute to slope instability. These activities include removal of vegetation, alteration of slopes by grading and construction, top loading of slopes with structures, and alteration of slope drainage patterns by channeling runoff from impervious surfaces or otherwise blocking natural drainage paths.
There exist in the coastal zone several areas with slopes of 30 percent or greater. These areas are located along Soquel Creek, Noble Gulch, and Escalona Gulch. The Escalona Gulch landsliding potential is compounded by the fact that the area is covered by highly erodible soils.
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75 FLOODING
The lowlands along Soquel Creek, most of the Village, and the lowlands immediately adjacent to Noble Gulch lie within the 100 year floodplain (i.e. all this area is expected to flood at least once every 100 years).Soquel Creek has flooded several times in the past and will probably flood again. Development within the floodplain increases the severity of floods by obstructing waterflow and supplying debris which can accumulate, causing flood waters to back up and rise.
BLUFF AND BEACH EROSION
The beaches and bluffs of most of the California coastline are eroding. In Bluffs in the City of Capitola, the bluffs extend both up and downcoast of the Village, and these areas are eroding at a moderate to fairly high rate (from up to 1.5 to 3 feet per year). Both private and public development is presently threatened by such bluff retreat. The most important public property properties immediately endangered is are along Grand Avenue at Depot Hill and Cliff Drive. Several residential structures are also threatened along those bluffs. Presently the only seawall or protective device to reduce the rate of erosion is the rip-rap placed at the base of the bluff just upcoast of Hooper Beach. Other than armoring nearest the Village, the bluffs along Depot Hill are almost entirely unarmored (as of 2025). The armoring at Cliff Drive is significant, but it is being undercut by ongoing and episodic erosion. Without intervention, the bluff will continue to recede, threatening the Cliff Drive corridor. In terms of beach/shoreline erosion, Capitola Beach has experienced periodic episodes of erosion and lost sand after the Santa Cruz Small Craft Harbor was completed, apparently including because the harbor and its jetties have interfered with downcoast transport of beach sand. The City had a groin installed in 1970 and In 1970, the Army Corps of Engineers constructed a groin at the downcoast end of the Esplanade, which was accompanied by imported sand to fully recharge the beach.
The groin has helped maintain and restore beach width at Capitola Beach, and was refurbished in 2020 to help extend its life and preserve its efficacy. A concrete seawall at the inland boundary of the separates the beach from protects the parking lot and Village businesses from wave attack unless the waves are large enough to, although large waves/wave events periodically top the wall, resulting in flooding and storm damage in the Village, an event which has occurred in recent past winters. .
RELEVANT COASTAL ACT POLICIES
The following Coastal Act policies pertain to natural hazards in Capitola’s coastal zone:
SEC. 30253 (1) AND (2)
New development shall:
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76 1) Minimize risks to life and property in areas of high geologic, flood, and fire hazard.
2) Assure stability and structural integrity, and neither create nor contribute significantly to erosion, geologic instability, or destruction of the site or surrounding area or in any way require the construction of protective devices that would substantially alter natural landforms along bluffs and cliffs.
SEC. 30211
Development shall not interfere with the public’s right of access to the sea where acquired through use or legislative authorization, including, but not limited to, the use of dry sand and rocky coastal beaches to the first line of terrestrial vegetation.
SEC. 30212
a) Public access from the nearest public roadway to the shoreline and along the coast shall be provided in new development projects except where (1) it is inconsistent with public safety, military security needs, or the protection of fragile coastal resources, (2) adequate access exists nearby, or (3) agriculture would be adversely affected. Dedicated accessway shall not be required to be opened to public use until a public agency or private association agrees to accept responsibility for maintenance and liability of the accessway. b) For purposes of this section, “new development” does not include:
Replacement of any structure pursuant to the provisions of subdivision (g) of section 30610.
a. The demolition and reconstruction of a single-family residence; provided that the reconstructed residence shall not exceed either the floor area, height, or bulk of the former structure by more than 10 percent, and that the reconstructed residence shall be sited in the same location on the affected property as the former structure.
b. Improvements to any structure which do not change the intensity of its use, which do not increase either to floor area, height, or bulk of the structure by more than 10 percent, which do not block or impede public access, and which do not result in a seaward encroachment by the structure.
c. Any repair or maintenance activity for which the commission has determined, pursuant to Section 30610, that a coastal development permit will be required unless the regional commission or the commission determines that such activity will have an adverse effect on lateral public access along the beach.
c) As used in this subdivision, “bulk” means total interior cubic volume as measured from the exterior surface of the structure.
Nothing in this division shall restrict public access, nor shall it excuse the performance of duties and responsibilities of public agencies which are 246
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77 required by Sections 66478.1 to 66478.14, inclusive, of the Government Code and by Section 4 of Article X of the California Constitution. (Amended by Cal. Stats. 1979, Ch. 919.)
SEC. 30230
Marine resources shall be maintained, enhanced, and where feasible, restored.
Special protection shall be given to areas and species of special biological or economic significance. Uses of the marine environment shall be carried out in a manner that will sustain the biological productivity of coastal waters and that will maintain healthy populations of all species of marine organisms adequate for long-term commercial, recreational, scientific, and educational purposes.
SEC. 30231
The biological productivity and the quality of coastal waters, streams, wetlands, estuaries, and lakes appropriate to maintain optimum populations of marine organisms and for the protection of human health shall be maintained and, where feasible, restored through, among other means, minimizing adverse effects of waste water discharges and entrainment, controlling runoff, preventing depletion of ground water supplies and substantial interference with surface water flow, encouraging waste water reclamation, maintaining natural vegetation buffer areas that protect riparian habitats, and minimizing alteration of natural streams.
SEC. 30233 (a)
a) The diking, filling, or dredging of open coastal waters, wetlands, estuaries, and lakes shall be permitted in accordance with other applicable provisions of this division, where there is no feasible less environmentally damaging alternative, and where feasible mitigation measures have been provided to minimize adverse environmental effects, and shall be limited to the following:
1) New or expanded port, energy, and coastal-dependent industrial facilities, including commercial fishing facilities.
2) Maintaining existing, or restoring previously dredged, depths in existing navigational channels, turning basins, vessel berthing and mooring areas, and boat launching ramps.
3) In wetland areas only, entrance channels for new or expanded boating facilities; and in a degraded wetland, identified by the Department of Fish and Game pursuant to subdivision (b) of Section 30411, for boating facilities if, in conjunction with such boating facilities, a substantial portion of the degraded wetland is restored and maintained as a biologically productive wetland; provided, however, that in no event shall the size of the wetland area used for such boating facility, including 247
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78 berthing space, turning basins, necessary support service facilities, be greater than 25 percent of the total wetland area to be restored. 4) In open coastal waters, other than wetlands, including streams, estuaries, and lakes, new or expanded boating facilities.
5) Incidental public service purposes, including, but not limited to, burying cables and pipes or inspection of piers and maintenance of existing intake or outfall lines.
6) Mineral extraction, including sand for restoring beaches, except in environmentally sensitive areas.
7) Restoration purposes.
8) Nature study, aquaculture, or similar resource-development activities.
SEC. 30235
Revetments, breakwaters, groins, harbor channels, seawalls, cliff retaining walls, and other such construction that alters natural shoreline processes shall be permitted when required to serve coastal-dependent uses or to protect existing structures or public beaches in danger from erosion and when designed to eliminate or mitigate adverse impacts on local shoreline sand supply. Existing marine structures causing water stagnation contributing to pollution problems and fishkills should be phased out or upgraded where feasible.
SEC. 30244
Where development would adversely impact archaeological or paleontological resources as identified by the State Historic Preservation Officer, reasonable mitigation shall be required.
SEC. 30251
The scenic and visual qualities of coastal areas shall be considered and protected as a resource of public importance. Permitted development shall be sited and designed to protect views to and along the ocean and scenic coastal areas, to minimize the alteration of natural land forms, to be visually compatible with the character of surrounding areas, and, where feasible, to restore and enhance visual quality in visually degraded areas. New development in highly scenic areas such as those designated in the California Coastline Preservation and Recreation Plan prepared by the Department of Parks and Recreation and by local government shall be subordinate to the character of its setting.
SEC. 30270
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79 The commission shall take into account the effects of sea level rise in coastal resources planning and management policies and activities in order to identify, assess, and, to the extent feasible, avoid and mitigate the adverse effects of sea level rise.
EXISTING POLICIES AND REGULATIONS
SEISMIC SHAKING & LIQUEFACTION
The City of Capitola has adopted and enforced the Uniform Building Code which stipulates standard construction methods for areas subject to earthquakes. The Seismic Safety Element of the General Plan has a policy which requires that in areas identified in the General Plan EIR as having high to very high seismic shaking hazard, a geologic study shall be done which delineates adequate structural mitigation measures prior to approval of development plans.
TSUNAMIS
The General Plan states that any development, redevelopment, or major rehabilitation along the beachfront and mouth of Soquel Creek that may be subject to runup shall require a report demonstrating measures of mitigation for potential flooding. The General Plan also requires an adequate setback from bluff edges to reduce the hazard of wave runup. This setback is to be determined in a geologic report which the City is to require for all bluff top developments.
LANDSLIDES
Although the City’s General Plan does not have a specific section on landslides, unstable slopes are treated by the Open Space Element. The Open Space Element prohibits development along riparian areas which are susceptible to landslides.
FLOODING
The General Plan states that no new development should take place within the 100-year flood plain of Soquel Creek unless federal flood plain standards are met. The zoning ordinance includes a flood plain zoning overlay and flood plain regulations which are applied to the 100-year flood plain as designated by FEMA. The flood plain ordinance does not allow new construction or substantial improvement in the designated flood way and requires that such development in the flood plain be elevated above the flood height for residential construction or flood-proofed for commercial development.
BLUFF AND BEACH EROSION
In response to ongoing bluff and beach erosion, multiple armoring structures exist along the Capitola shoreline. However, such armoring structures, while protecting development 249
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80 inland of them, have a series of adverse coastal resource impacts, including ultimately leading to a loss of beach.
The bluffs and beaches are threatened by storms, erosion, and sea level rise; and adaptation, in light of such coastal hazards, will prove critical in coming years. The City will continue to engage in coastal adaptation planning to address known vulnerabilities of bluff and beach erosion and explore mechanisms to better protect resources and enhance and adapt public and recreational access opportunities and amenities.
The City’s General Plan includes the Coastal Commission’s interim guideline (of 1974) on bluff top development as a policy in the Seismic Safety Element. However, the Coastal Commission has revised its bluff top policy to make it more clear and stringent; this indicates a need for the City to possibly update its policy. The Conservation Element has policies on both beach and bluff erosion. It recommends replacement of sand lost from erosion and stabilization measures for Capitola Beach. The Conservation Element also includes a policy that shoreline protection works can be placed after detailed study of the subject area. Is also ranks the types of permissible shoreline works as follows:
1) Addition of rip-rap at the base of the cliffs;
2) Provision of additional rock groins to encourage permanent expansion of beaches if feasible;
3) Provision of seawalls as a last resort where other methods are not satisfactory.
STATE AND FEDERAL REGULATIONS
Several agencies have jurisdiction over areas that are involved in the above hazard types.
These are:
• California Coastal Commission – Even after the City’s LCP has been certified and is being implemented, the Coastal Commission retains permit control jurisdiction over tidelands, submerged lands, and public trust lands (pursuant to Coastal Act Section 30519), and performs an oversight role in relation to the City’s delegated jurisdictional responsibilities.
• State Department of Fish and Game Wildlife– Requires a permit for any activity in Soquel Creek and the immediate banks, and reviews any project proposed for ocean waters.
• State Lands Commission – Requires a permit for any project which is a seaward of the Mean High Tide line or which would alter the MHT line, i.e. the State’s boundary.
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81 • State Department of Parks and Recreation – If their property is to be utilized for any project, including as access to another site, the Department’s permission is necessary.
• U.S. Army Corps of Engineers – Requires a permit for any activity which is seaward of the Mean High Tide line or is in any navigable water or wetland. • Regional Water Quality Control Board – Activities affecting California's surface, coastal, or ground waters require a permit from the Central Coast Regional Water Quality Control Board.
• Monterey Bay National Marine Sanctuary – Regulated activities below Mean High Tide Line require a National Marine Sanctuary permit.
Natural Hazards Component Policies
GENERAL POLICIES
Policy VII-1 It shall be the policy of the City of Capitola to adequately plan for natural hazards in new development, reduce risks to life and property, and revise all plans and Zoning Ordinances to be in conformance with all the policies of the Coastal Act relating to hazards and shoreline structures. The City shall further take into account the effects of sea level rise in coastal resources planning and management policies and activities in order to identify, assess, and, to the extent feasible, avoid and mitigate the adverse effects of sea level rise.
Implementation:
a) Requires geologic/engineering reports in areas of high seismic shaking for structures subject to public use or multi-residential as required by the UBC.
b) Revise Zoning Ordinance to require geologic reports for all development proposed on coastal bluffs or beaches, including shoreline structures such as seawalls and including provisions of Policy VII-8.
Policy VII-2 All geologic/engineering reports required by the City pursuant to the policies of this component shall be prepared by a qualified geologist/engineer according to the guidelines for practice issued by the California Division of Mines and Geology Geological Survey and shall be based on the best available, professionally accepted science and scientific guidance., specifically CDMG notes Numbers 37 (Guidelines to Geologic/Seismic Reports), 43 (Recommended Guidelines for Determining the Maximum Probably Earthquakes), 44 (Recommended 251
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82 Guidelines for Preparing Engineering Geologic Reports) and interpretive Coastal Commission for Bluff Top Development.
Bluff and hillside stability evaluations shall consider a range of coastal hazards—including erosion rates, wave climate, storm surge, and sea-level rise—over a 50-year planning horizon. Proposed development shall incorporate mitigation measures designed to perform for a minimum of 50 years post-occupancy. Site-specific analysis must be prepared and sealed by a California-licensed Geotechnical Engineer (GE) or Certified Engineering Geologist (CEG) and accepted by the City of Capitola.
Implementation:
Incorporate policy requirements for all development proposals subject to Policy VII-2.
SPECIFIC POLICIES
Seismic Safety Policies
Policy VII-3 The City shall require all new building plans, for public use structures or multi-residential (more than three units), to conform with the Uniform Building Code construction standards.
Implementation:
Requires geologic/engineering reports in areas or high seismic shaking for structures subject to public use or multi-residential as required by the UBC.
Tsunamis
Policy VII-4 Measures to mitigate possible flooding shall be submitted for all new structures that will be occupied by the public located in areas as shown on Map VII-3.
Implementation:
Develop regulations limiting development in coastal flood hazard areas as designated by FEMA.
Landslides
Policy VII-5 A geologic/engineering report which indicated methods of achieving structural stability and mitigation measures to prevent erosion shall be submitted for any structure which is to be constructed on a slope in excess of 30 percent.
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83 Implementation:
Revise Zoning Ordinance to require geologic/engineering report for structures to be built on slopes in excess of 30 percent.
Flooding
Policy VII-6 It shall be the policy of the City to adopt a local flood plain ordinance consistent with the Federal Emergency Management Agency (FEMA) requirements for designated 100-year riverine flood plains Implementation:
Adopt riverine flood plain ordinance.
Beach and Bluff Erosion
Objective: Protect and enhance bluff, shoreline, offshore, and sandy beach recreational areas for public use and enjoyment while ensuring all development (including private structures and public infrastructure) is protected, as much as possible, from both current and future coastal hazards. Ensure that otherwise allowable development is sited, designed, and conditioned to minimize risks to life and property, to avoid being subject to coastal hazards, and where development cannot entirely avoid coastal hazards, to appropriately mitigate for adverse impacts to coastal resources, including to bluff, shoreline, offshore, and sandy beach recreational areas.
Policy VII-7 Bluff and cliff top development shall be approved only if design and setback provisions are adequate to assure stability and structural integrity for the expected economic lifespan of the development (at least 50 years) and if the development (including storm runoff, foot traffic, grading, and irrigation) will neither create nor contribute significantly to erosion problems or geologic instability of the site or surrounding area. This policy shall be carried out by requiring geologic reports as per Policy VII8.
Implementation:
Revise Zoning Ordinance to require geologic reports for all development proposed on coastal bluffs or beaches, including shoreline structures such as seawalls and with specific emphasis on provisions outlined in Policy VII-7.
Policy VII-8 A geologic/engineering report shall be submitted for any bluff top or cliff development proposed within 200 feet of the cliff edge. 253
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84 The City may designate a lesser area of demonstration in specific areas of known geologic stability (as determined by adequate geologic evaluation and historic evidence) or where adequate protective works already exist.
The City may designate a greater area of demonstration or exclude development entirely in areas of known high instability.
The technical geology report shall be prepared by a registered geologist or professional civil engineer qualified professional with expertise in shoreline processes soils or foundation engineering or by a certified engineering geologist. The report shall consider and analyze any information required by Policy VII-2.
Implementation:
a) Revise Zoning ordinance to require geologic reports for all development proposed on coastal bluffs or beaches, including shoreline structures, such as seawalls and including provisions of Policy VII-8.
a) Develop maps for public information showing areas and parcels requiring the submittal of geologic reports.
Policy VII-9 Shoreline structures, such as including but not limited to seawalls, revetments, groins, and breakwaters, shall be permitted only to serve coastal dependent uses, to protect existing development structures (other than accessory structures), or to protect public beaches in danger of erosion; shall only be permitted only if nonstructural solutions (such as artificial beach nourishment and relocating structures) and any other less environmentally damaging alternatives (such as nature-based adaptation measures) have proved to be infeasible; shall only be permitted if determined to be the least environmentally damaging feasible alternative to protect the endangered structure/beach/use; and, shall only be permitted if all coastal resource impacts are avoided as much as possible, and where all unavoidable impacts are commensurately mitigated. Such structures shall be designed to eliminate or mitigate adverse impacts on local shoreline sand supply, public access, visual resources, marine habitats, and paleontological resources, and other coastal resources. It is further the policy of the City of Capitola that no permanent channelization of the mouth of Soquel Creek shall be permitted. The seasonal movement of sand to form the lagoon, maintenance dredging and infill of bulkheads shall not be considered permanent channelization.
Implementation:
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85 Incorporate policy direction in Planning Commission and Architectural and Site Review for projects involving shoreline structures.
Policy VII-10 The City should continue to participate with the State Department of Boating and waterways in studying the bluff erosion problem and possible solutions. The City should participate in any proposed shoreline project only if the project is in conformance with other LCP policies.
Implementation:
a) Present results of bluff erosion study by the Department of Boating and Waterways to the public for review. Pursue funding for proposed measures, if any, if they appear feasible.
b) Develop an ordinance to require notification of potential erosion hazards to any new owner, upon sale of properties along Coastal bluffs within Capitola.
Policy VII-11 The City shall construct future drainage projects and improve existing drainage facilities where feasible so that runoff is filtered and treated, and directed away from the coastal bluffs, or if it cannot be (except that where such measures are infeasible it shall be discharged in a place and manner so as not to contribute to erosion of a bluff or beach.) As a condition of approval f For any coastal adaptation strategies along Cliff Drive, require the removal of any non-native and invasive plans and replacement with native bluff plants and explore the feasibility of directing drainage to inland drainage systems. Ensure that drainage in coastal hazard areas does not contribute to coastal bluff or other shoreline and erosion, and camouflage all drainage elements to minimize impact to visual resources.
Implementation:
Cooperate with AMBAG in the development of erosion control regulations for all new development as required by the regional Water Quality Control Board with specific emphasis on reducing erosion impacts on coastal bluffs and beaches.
Policy VII-12 Notwithstanding other LCP provisions, resiliency and adaptation projects may be approved along Cliff Drive provided they use the best available science to address and mitigate impacts from sea level rise and climate change related phenomena, enhance public recreational access, and protect/enhance ESHA/paleontological resources.
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86 Capitola Village
Policy VII-13 Capitola Village is critically important for the City, not only for its residents, but also its visitor-focused economy and its significant public recreational access offerings. Due to its low-lying nature, the Village and its fronting beach are threatened by storms, erosion, and sea level rise.
Adaptation in light of such coastal hazards will prove critical in coming years. The City is pursuing funding to embark on coastal adaptation planning to address known vulnerabilities of the Village and Capitola Beach and explore mechanisms to better protect Village resources and enhance and adapt public and recreational access opportunities and amenities.
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87 MAP NOTES
The LCP Land Use Plan Map has been prepared by using the same format as the City of Capitola General Plan Map, in order to make it easier to use. The land use designations in the General Plan are carried over into the Land Use Plan where they are consistent with the Coastal Act of 1976. The maps included in the text should be considered as part of the Land Use Plan Map and provide further interpretation of the Land Use Plan policies. The full-size versions of these reduced maps will be available for review in the City offices.
Also, as in a General Plan Map, this Land Use Plan Map is not meant to be a parcel-byparcel description of appropriate land uses. Rather, the Map should be uses in conjunction with the Policies to guide development of individual parcels. Other map notes follow.
1) The Map shows land use designations only for those areas that are both in the Coastal Zone and the City limits.
2) The Coastal Zone boundary line is approximate. Official boundary maps are available in the Coastal Commission and the City of Capitola offices. 3) As under the current Capitola General Plan, in some cases, the designated land use is not representative of the existing land use. The designated use should direct future permits and planning.
4) The location of coastal bluffs that are shown are only approximate. Policies of the Natural Hazards Component should guide land use involving bluffs. 5) In areas designated residential, public facilities (e.g. fire station, parks, schools) are permitted uses.
6) The V-5 symbol on the map denotes that a site is designated for a visitor-serving use.
Visitor-serving uses are defined in the Recreation and Visitor-Serving Component. 7) The Mixed Commercial-Residential land use indicates that combined commercial and residential uses are appropriate on a single site. This land use designation is defined in the Housing Component.
8) The map has 6 high-density residential uses designated. Two of these sites have been identified in the Housing Component Policies as suitable for low and moderate income housing projects.
9) The Village Center area is outlined. Design and Development Guidelines for the Village are included in the Visual Resources and Special Communities Component.
Land areas in the Village are designated for Residential or Mixed CommercialResidential, Visitor-Serving and Public Facilities compatible with land use patterns. 257
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City of Capitola
City Council Meeting
January 8, 2025
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Cliff Drive Resiliency Project
LCP & LUP Zoning Amendments
Cliff Drive Resiliency Project Background
Purpose: Address bluff erosion, sea-level rise & stormwater drainage impacts along Cliff Drive corridor
Project extends from western City limit to Capitola Village Features: Pedestrian & bike access, connections to Hooper Beach & Wharf overlook
Tonight: Considering policy changes to City’s LCP to allow future permitting of Project
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Cliff Drive Resiliency Project
LCP & LUP Zoning Amendments
Project Direction
August 2024: Council reviewed alternatives & selected Alternative 3 (Full Bluff Protection)
• Continuous bluff stabilization
• Class I multi-use path
• Cantilevered sections where needed
• Overlooks & reconfigured parking
September 4, 2025: PC review and suggested edits to LUP October 2, 2025: PC positive recommendation
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LCP & LUP Zoning Amendments
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Cliff Drive Resiliency Project
LCP & LUP Zoning Amendments
1 2
3 4
Phasing depends upon risk
assessment of bluff
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LCP & LUP Zoning Amendments
Community Engagement
Community Meeting: August 12, 2025
Project overview & Q&A
City Council Update: August 28, 2025
Phased approach discussed due to $10.5M FHWA
funding
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Cliff Drive Resiliency Project
LCP & LUP Zoning Amendments
Why LCP Policy Amendment Are Needed
LCP = Policy & Regulatory Framework for Capitola’s coastal zone
• Must reflect current conditions and resilience planning • Updates ensure consistency with:
- Sea-level rise planning
- Public access improvements
- Bluff stabilization & shoreline structures
• Facilitates future consideration of Project
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LCP & LUP Zoning Amendments
Proposed Zoning Amendments
Chapter 17.32 – Parks & Open Space
• Allows Cliff Drive Resiliency Project improvements
• Limits development to ensure scenic/recreational priority • Prohibits private development on beaches
Chapter 17.68 – Geological Hazards
• New definitions: bluff/seacliff and coastal hazards
• Expanded purpose statement
• Removes outdated report references
• Establishes 50-year minimum standard
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LCP & LUP Zoning Amendments
Proposed Zoning Amendments
Chapter 17.64 – ESHA
Clarifies exception for resource-dependent uses:
- Low-intensity public access & recreation
- Nature study
- Restoration
Chapter 17.76 – Parking & Loading
Updates reference from Southern Pacific Railroad → Regional Transportation Commission
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LCP & LUP Zoning Amendments
Proposed Policy Amendments to LCP Land Use Plan
1. Capitola’s Land Use Plan Chapter 2: Public Access
2. Capitola’s Land Use Plan Chapter 7: Natural Hazards
1. Update existing condition descriptions
2. Replace outdated references (SPRR → RTC)
3. Amend policies to:
- Support multi-modal enhancements
- Enhance public coastal access
- Address sea-level rise & shoreline structures
- Improve drainage management
4. Climate adaptation policies to initiate adaptation planning 267
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LCP & LUP Zoning Amendments
Proposed Amendments to LCP Land Use Plan
September 4, 2025 Planning Commission Added Amendments
• Update three references to the Hooper stairs related to storm drainage and temporary closure
• Policies II-4 and II-10 changed bicycles to multi-modal • Policy II-7 and VII-8 correct outline numbering
• Policy II-10 remove RTC reference
• Policy VII-2 regarding 50-year planning horizon.
• Policy VII- 11 remove storm water filtration and invasive species requirement. • Changed one additional reference from Southern Pacific to Regional Transportation Commission and removed language around acquisition of right-of-way
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Cliff Drive Resiliency Project
LCP & LUP Zoning Amendments
Coastal Commission Addition Edits:
CMC Chapter 17.68 Geological Hazards, LUP Chapter 2: Public Access, and LUP Chapter 7: Natural Hazards.
Clarifying edits and do not alter processes or policies 269
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LCP & LUP Zoning Amendments
Recommended Action:
1) Introduce for first reading, by title only, waiving further reading of the text, an ordinance amending Capitola Municipal Code Title 17: Zoning, Chapter
17.32 Parks and Open Space, Chapter 17.64 ESHA, Chapter 17.76 Parking and Loading, and Chapter 17.68 Geological Hazard (collectively, the “Zoning Code Amendments”) and authorizing submittal to the California Coastal Commission for Certification;
2) Adopt a resolution amending Capitola’s Land Use Plan Chapter 2: Public Access and Chapter 7: Natural Hazards (collectively, the “Land Use Plan Amendments”) and authorizing submittal to the California Coastal Commission for certification; and
3) Find that the above actions are exempt from the California Environmental Quality Act (CEQA).
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4899-8350-1698 v1
Capitola City Council
Agenda Report
Meeting: January 8, 2026
From: Administrative Services Department
Subject: Annual and Five-Year Impact Fee Report
Recommended Action: Adopt a resolution adopting the Fiscal Year 2024-25 Development Impact Fee Annual Report.
Background: In California, State legislation sets certain legal and procedural parameters for the charging of development impact fees. This legislation was passed as Assembly Bill (AB) 1600 by the California Legislature and is now codified as California Government Code Sections 66000 through 66023 (“Mitigation Fee Act”). The Mitigation Fee Act requires any local agency that imposes development impact fees to prepare annual findings and five-year findings providing specific information about those fees. The Development Impact Fee Annual Report serves as both the annual and five-year report.
The City of Capitola collects affordable housing impact fees, affordable housing in-lieu fees, tree replacement in-lieu fees, bike in-lieu fees, and public art fees, all of which are subject to the Mitigation Fee Act reporting requirements.
On December 12, 2025, staff published the City of Capitola’s Annual and Five-Year Assembly Bill 1600 Report for FY 2024-2025, in accordance with the provisions of California Government Code Section 66006 (b) and 66001 (d).
Discussion: When new development is constructed, or an existing use is changed to a use that has additional impacts on public facilities, the City experiences increased demand for the services and facilities it provides. Impact fees are one-time contributions made by project applicants to offset the impacts that result from their project. Impact fees cannot exceed the reasonable costs to address the proportionate impacts of new development. This means applicants only pay their fair share of necessary upgrades to meet the increased demand that results from their project, and their impact fees cannot be used to address deficiencies that existed before their project. The Mitigation Fee Act regulates impact fees and requires the City to demonstrate the required nexus between the impact of the project on public facilities and the fees charged to the project applicant.
The Mitigation Fee Act imposes certain accounting and reporting requirements with respect to the fees collected. The Mitigation Fee Act also requires any local agency that imposes development impact fees to prepare an annual report and a five-year report that provides specific information about those fees, summarizing the fee revenue collected, expenditures made with this fee revenue, fund balances, and plans for future expenditures based upon additional fee collection.
The attached Development Impact Fee Annual Report serves both the annual and five-year findings. Upon adoption, the Development Impact Fee Annual Report will remain publicly available on the City’s website. Staff will submit the Development Impact Fee Annual Report to the City Council for adoption on an annual basis.
The City currently has an unexpended balance from housing impact fees, housing in-lieu fees, tree replacement fees, bike parking in-lieu fees, and public art fees.
Housing Impact Fee: The year-end balance of Housing Impact Fees for FY 2024-25 was $144,598. In FY 2025-26, $121,250 has been programmed for first-time home buyer down payment assistance and housing rehabilitation.
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Housing In-Lieu Fee: The year-end balance of Housing Impact Fees for FY 2024-25 was $204,882. The Pacific Cove Resident Relocation Program loan was retired in the previous fiscal year. The remaining funds will be utilized for the City’s housing rehabilitation loan and grant program in Fiscal Year 2025-2026.
Housing impact fees and housing in-lieu fees are deposited into the Housing Trust Fund. This special revenue fund can be utilized for the following activities:
1. Creation of new affordable units.
2. Preservation of existing affordable housing (rehabilitation).
3. Assistance with multi-family rehabilitation programs and projects.
4. Conversion of market-rate units to affordable housing units.
5. Construction of affordable accessory dwelling units.
6. Acquisition and rehabilitation of potential limited equity housing cooperatives.
7. First-time homebuyer loans.
8. Predevelopment loans/grants to assist non-profit and for-profit developers with project feasibility studies, site acquisition, and preliminary design studies for potential affordable housing projects.
Within the Development Impact Fee Annual report, $20,000 is identified for first-time homebuyer assistance and $225,000 for the housing rehabilitation program.
Tree Replacement In-Lieu Fee: The year-end balance of tree replacement in-lieu fees for FY 2024-25 was $127. The funds were utilized toward the planting and maintenance of trees during the fiscal year.
Bike Parking In-Lieu Fee: This fee is associated with the Village outdoor dining program. The year-end balance of bike in-lieu fees for FY 2024-25 was $1,200. The funds can be utilized toward the installation of bike racks.
Public Art Fee: The year-end balance of public art fees for FY 2024-25 was $100,200. The funds can be utilized toward various public art projects.
Within the Development Impact Fee Annual report, $65,505 is identified for future public art projects.
Fiscal Impact: The acceptance of this report has no fiscal impact.
Attachments:
1. Resolution
2. Development Impact Fee Annual Report
Report Prepared By: Luis Ruiz, Accountant II
Reviewed By: Jim Malberg, Administrative Services Director, Julia Gautho, City Clerk, Marc Tran, City Attorney
Approved By: Jamie Goldstein, City Manager
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4937-9776-2434 v2
RESOLUTION NO. _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAPITOLA
ACCEPTING AND ADOPTING THE DEVELOPMENT FEE IMPACT REPORT PURSUANT TO GOVERNMENT CODE SECTIONS 66001 AND 66006
WHEREAS, the City of Capitola imposes development fees that are subject to the Mitigation Fee Act (Gov. Code §§ 66000 et seq.): the Housing Impact Fee, the Housing In-Lieu Fee, the Tree Replanting In-Lieu Fee, Bike In-Lieu Fee, and Public Art Fee (collectively, Impact Fees); and WHEREAS, pursuant to Government Code Section 66006, the City is required to prepare an annual report regarding the collection and use of the Impact Fees within one hundred eighty (180) days after the close of each fiscal year; and
WHEREAS, pursuant to Government Code Section 66001, the City is required to make findings with respect to any unexpended Impact Fees funds every fifth fiscal year following the first deposit into the Impact Fee accounts; and
WHEREAS, Staff has prepared the City of Capitola Annual and Five-Year Impact Fee Report also known as the Development Impact Fee Annual Report (Exhibit A), and incorporated by reference; and
WHEREAS, the Development Impact Fee Annual Report satisfies the reporting requirements stated in Government Code sections 66001 and 66006; and WHEREAS, notice was provided to the extent required by Government Code section 66006; and WHEREAS, pursuant to Government Code section 66006, subdivision (b)(2), the Development Impact Fee Annual Report has been made available to the public not less than fifteen (15) days from the date of the next regularly scheduled public meeting. The report has been available for public review at the Clerk’s office and on the City’s website since December 12, 2025.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Capitola that the forgoing recitals are true and correct.
BE IT FURTHER RESOLVED that the City Council does hereby find and adopt as follows:
1. In accordance with Government Code Section 66000 et seq., the City has conducted an annual and five-year review of its Impact Fees and capital infrastructure programs and the Council has reviewed the Development Impact Fee Annual Report for the Fiscal Year 2024-25 attached hereto as Exhibit A, which is hereby accepted and adopted as the report required pursuant to Government Code sections 66001 and 66006.
2. The funds have been used for the purposes stated in said report and are necessary to mitigate impacts resulting from development in the City and there is a reasonable relationship between the use of the fees and the type of development project upon which the fee is imposed.
3. Effective Date. This resolution shall take effect immediately upon its adoption.
4. The City Clerk shall certify the adoption of this Resolution and shall cause a certified Resolution to be filed in the Office of the City Clerk. 274
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I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the City Council of the City of Capitola on the 8
th day of January 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_____________________
Margaux Morgan, Mayor
ATTEST:
____________________
Julia Gautho, City Clerk
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City of Capitola
AB 1600 Report
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INTRODUCTION AND BACKGROUND
In California, State legislation sets certain legal and procedural parameters for the charging of development impact fees. This legislation was passed as AB1600 by the California Legislature and is now codified as California Government Code Sections 66000 et. seq. (“Mitigation Fee Act”). This State law went into effect on January 1, 1989.
R e q u i r e m e n t s f o r D e v e l o p m e n t I m p a c t F e e R e p o r t i n g The Mitigation Fee Act imposes certain accounting and reporting requirements with respect to the fees collected. The fees must be deposited in special accounts to avoid comingling the fees with the City’s other revenues or funds. Interest on each development fee fund or account must be credited to that fund or account and used only for those purposes for which the fees were collected.
The Mitigation Fee Act also requires any local agency that imposes development impact fees to prepare an Annual Report on Development Impact Fees (“Report”), containing annual findings and five-year findings that provide specific information about those fees. This Report serves both of those functions and has been prepared for the City of Capitola for the fiscal year (FY) ended June 30, 2025, in accordance with the provisions of the California Government Code Section 66006 (b) and 66001 (d).
Annual Findings
California Government Code Section 66006 (b) requires each local agency that imposes Development Impact Fees under the Mitigation Fee Act to prepare annual findings providing specific information about those fees for the previous fiscal year. Specifically, Section 66006 (b) requires that for each separate fund, the local agency shall make available to the public the information shown below for the most recent fiscal year.
66006 (b) (1) (A): A brief description of the type of fee in the account or fund. 66006 (b) (1) (B): The amount of the fees.
66006 (b) (1) (C): The beginning (July 1) and ending (June 30) balance of a particular impact fee fund. 66006 (b) (1) (D): The amount of the fees collected, and interest earned by fund. 66006 (b) (1) (E): An identification of each public improvement upon which fees were expended and the amount of expenditures on each improvement including the total percentage of the cost of the public improvement that was funded with fees.
66006 (b) (1) (F): An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement and an identification of each public improvement identified in a previous report and whether construction began on the approximate date noted in the previous report.
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Annual and Five-Year Development Impact Fee Report
Fiscal Year Ended June 30, 2025
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66006 (b) (1) (G): A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended; and, in the case of an interfund loan, the terms of the loan, including the repayment schedule for the loan, and the rate of interest that the account or fund will receive on the loan. 66006 (b) (1) (H): A summary of any refunds made, and their respective amount, due to sufficient funds being collected to complete financing of scheduled public improvements and the amount of reallocation of funds made due to administrative costs of refunding unexpended revenues exceeding the amount to be refunded.
Five-Year Findings
California Government Code Section 66001 (d) (1) requires the local agency make of the following findings every fifth year with respect to that portion of the account remaining unexpended, whether encumbered to a specific project or remaining unencumbered in an impact fee fund. 66001 (d) (1) (A): Identify the purpose to which the fee is to be put. 66001 (d) (1) (B): Demonstrate a reasonable relationship between the fee and purpose for which it is charged.
66001 (d) (1) (C): Identify all sources and amounts of funding anticipated to complete financing in incomplete improvements.
66001 (d) (1) (D): Designate the approximate dates on which the funding is expected to be deposited into the appropriate account or fund.
State law requires the City to prepare and make available to the public the above information within 180 days after the last day of each fiscal year. The City Council must review the Report at a regularly scheduled public meeting not less than fifteen days after the information is made available to the public. This report was filed with the City Clerk’s office and available for public review on December 12, 2025. 278
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Annual and Five-Year Development Impact Fee Report
Fiscal Year Ended June 30, 2025
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ANNUAL REPORT
D e s c r i p t i o n o f I m p a c t F e e P r o g r a m s 66006(b)(1)(A) and 66013(d)(1)
The City has 5 development impact fee programs.
1. Affordable Housing Impact Fee (CMC 18.05). Housing development projects creating less than seven for-sale housing units pay an affordable housing impact fee that is used to provide assistance for production of affordable housing units, acquisition of at-risk units, or rehabilitation of affordable housing units for very low-, low-, and moderate-income households.
2. Affordable Housing In-Lieu Fee (CMC 18.02). Residential development projects that are subject to the City’s affordable housing inclusionary requirements may elect to pay affordable housing inlieu fees, rather than produce the required inclusionary units on site in accordance with the City’s requirements. Affordable housing in-lieu fees are used to assist in the construction of new or the rehabilitation of existing affordable housing units.
3. Tree In-Lieu Fee (CMC 12.12.190). The Tree In-Lieu fee is a fee that the City imposes on residential and non-residential development in-lieu of planting required trees. The purpose of this fee is to fund the community tree and forest management account, measured by the number of trees required to be planted, to maintain and plant trees for the need created when trees are removed.
4. Public Art Fee (CMC 2.58). Eligible private and public construction projects are subject to fee for public art. The City of Capitola wishes to enhance the cultural and aesthetic environment of the City, to encourage creativity, the appreciation of the arts and our cultural heritage. Through the establishment of a program of public art funded by eligible development projects, the City will promote the general welfare through balancing the community’s physical growth and revitalization with its cultural and artistic resources.
5. Bicycle In-Lieu Fee (CMC 17.96.170). A Street dining deck that eliminates an on-street parking space must include a bicycle parking rack integrated in the street dining deck design or within the private property of the eating or dining establishment. The bicycle parking rack must provide a minimum of two bicycle parking spaces for each eliminated vehicle parking space. As an alternative to providing the bicycle parking rack, the City may allow an applicant to pay an in-lieu fee which fee shall be deposited in the City’s in-lieu bike fund to create a central bicycle parking location.
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Annual and Five-Year Development Impact Fee Report
Fiscal Year Ended June 30, 2025
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C u r r e n t I m p a c t F e e S c h e d u l e s
66006(b)(1)(B)
Affordable Housing Impact Fee
The Affordable Housing Impact Fee in effect during the fiscal year ending June 30, 2025, are presented below in Table 1.
Table 1 Affordable Housing Impact Fee
Affordable Housing In-Lieu Fee
The Affordable Housing in-Lieu Fee in effect during the fiscal year ending June 30, 2025, are presented below in Table 2.
Table 2 Affordable Housing In-Lieu Fee
For sale housing development of six or less units $25 per square foot Rental multi-family $6 per square foot
Addition to housing units of 50% or more $2.50 per square foot For sale housing developments of two to six units $25 per square foot For sale housing development of seven or more units Total Units # Units # Units Built
7 1 $0
8-13 1 Total # units minus 7 @ $25
Square foot
14 2 $0
15-20 2 Total # units minus 14 @
$25 Square foot
21 3 $0
22-27 3 Total # units minus 21 @
$25 Square foot
28 4 $0
Rental Multi-Family $6 per square foot
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Annual and Five-Year Development Impact Fee Report
Fiscal Year Ended June 30, 2025
Page | 5
Tree In-Lieu Fee
The Tree In-Lieu Fee in effect during the fiscal year ending June 30, 2025, are presented below in Table 3.
Table 3 Tree In-Lieu Fee
Tree replacement in-lieu fee $600 per tree
Public Art Fee
The Public Art Fee in effect during the fiscal year ending June 30, 2025, are presented below in Table 4.
Table 4 Public Art Fee
Eligible Private Development Project 1% of total building permit valuation Eligible Public Project 2% of total project budget
Bicycle In-Lieu Fee
The bicycle in-lieu fee in effect during the fiscal year ending June 30, 2025. Are presented below in Table 5.
Table 5 Bicycle In-Lieu Fee
Annual Bicycle In-Lieu Fee $300 per year per bicycle parking space Material & Installation Fee $200 per bicycle parking space 281
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Annual and Five-Year Development Impact Fee Report
Fiscal Year Ended June 30, 2025
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A n n u a l F i n a n c i a l S u m m a r y
Table 6. Annual Financial Summary
Statement of Affordable Housing Fee Program
Revenues, Expenditures, and Changes in Fund Balance
For the Fiscal Year Ending June 30, 2025
The City received $70,423 in affordable housing impact fees during the fiscal year, totaling $144,598 with previous year’s fees. These funds are expected to be used in fiscal year 2025-2026 to assist first time homebuyers in affordable housing.
Description FY 2024/25
REVENUES
Fees $ 70,423
Interest 0
Total Revenues $ 70,423
Interfund Transfers $0
Interfund Loans Interest rate of loan: 0% $0
Refunds $0
EXPENDITURES -- Capital Improvements Amount Percent
None $0 0%
Total Expenditures $0
REVENUES OVER (UNDER)
EXPENDITURES $ 70,423
Fund Balance, Beginning of the Year $74,175
Fund Balance, End of Year $ 144,598
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A n n u a l F i n a n c i a l S u m m a r y
Table 7. Annual Financial Summary
Statement of Affordable Housing In-Lieu Program
Revenues, Expenditures, and Changes in Fund Balance
For the Fiscal Year Ending June 30, 2025
The Pacific Cove Resident Relocation Program loan ended during Fiscal Year 23/24. The remaining funds will be utilized for the City’s housing rehabilitation loan and grant program in fiscal year 2025-2026.
Description FY 2024/25
REVENUES
Fees $ 629
Interest $ 16,998
Total Revenues $ 17,627
Interfund Transfers $0
Interfund Loans Interest rate of loan: 0% $0
Refunds $0
EXPENDITURES – Capital Improvements Amount Percent
None $0 0%
Total Expenditures $ 15,693
REVENUES OVER (UNDER)
EXPENDITURES $ 1,934
Fund Balance, Beginning of the Year $ 202,948
Fund Balance, End of Year $ 204,882
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Annual and Five-Year Development Impact Fee Report
Fiscal Year Ended June 30, 2025
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Table 8. Annual Financial Summary
Statement of Tree In-Lieu Fee Program
Revenues, Expenditures, and Changes in Fund Balance
For the Fiscal Year Ending June 30, 2025
During fiscal year 2024-2025, $34,400 of tree in-lieu funds were used to fund tree pruning in 41st Avenue and at Peery Park. Future fee revenue will be used for additional tree work throughout the City.
Description FY 2024/25
REVENUES
Fees $0
Interest $0
Total Revenues $0
Interfund Transfers $0
Interfund Loans Interest rate of loan: 0% $0
Refunds $0
EXPENDITURES -- Capital Improvements Amount Percent
41st Ave. Tree Pruning $XXX XX%
Peery Park Tree Pruning $XXX XX%
Total Expenditures $ 34,400
REVENUES OVER (UNDER)
EXPENDITURES ($ 34,400)
Fund Balance, Beginning of the Year $ 34,527
Fund Balance, End of Year $ 127
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Annual and Five-Year Development Impact Fee Report
Fiscal Year Ended June 30, 2025
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Table 9. Annual Financial Summary
Statement of Public Art Fee
Revenues, Expenditures, and Changes in Fund Balance
For the Fiscal Year Ending June 30, 2025
During fiscal year 2024-2025, the Begonia Festival Art Commemorative Project, Park Avenue Tile Project, and Monterey Avenue Railing Project were completed. The Art and Cultural Commission is currently working on future project concepts.
Description FY 2024/25
REVENUES
Fees $ 34,460
Interest $ 0
Total Revenues $ 34,460
Interfund Transfers $0
Interfund Loans Interest rate of loan: 0% $0
Refunds $0
EXPENDITURES -- Capital Improvements Amount Percent
Art in Public Places $92,765 0%
Total Expenditures $ 92,765
REVENUES OVER (UNDER)
EXPENDITURES ($ 58,305)
Fund Balance, Beginning of the Year $ 158,505
Fund Balance, End of Year $ 100,200
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Annual and Five-Year Development Impact Fee Report
Fiscal Year Ended June 30, 2025
Page | 10
Table 10. Annual Financial Summary
Statement of Bike In-Lieu Program
Revenues, Expenditures, and Changes in Fund Balance
For the Fiscal Year Ending June 30, 2025
During fiscal year 2024-2025, the one participant in the bike-in-lieu program withdrew. The $1,200 fund balance will be utilized for bike racks on the Capitola Wharf in FY 2025-26.
Description FY 2024/25
REVENUES
Fees $ 1,244
Interest $ 0
Total Revenues $ 1,244
Interfund Transfers $0
Interfund Loans Interest rate of loan: 0% $0
Refunds $ 1,244
EXPENDITURES -- Capital Improvements Amount Percent
None $0 0%
Total Expenditures $ 0
REVENUES OVER (UNDER)
EXPENDITURES $0
Fund Balance, Beginning of the Year $ 1,200
Fund Balance, End of Year $ 1,200
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Annual and Five-Year Development Impact Fee Report
Fiscal Year Ended June 30, 2025
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FIVE-YEAR REPORT AND FINDINGS
California Government Code Section 66001(d)(1) requires the City to make findings every fifth year with respect to that portion of each impact fee account that remains unexpended, whether encumbered to a specific project or remaining unencumbered in an impact fee fund. As of June 30, 2025, 5 funds have unexpended balances totaling $451,007. Therefore, the City is reporting the following findings relating to each of the fee programs.
66001(d)(1)(A): Identify the purpose to which the fee is to be put. 66001(d)(1)(B): Demonstrate a reasonable relationship between the fee and purpose for which it is charged.
66001(d)(1)(C): Identify all sources and amounts of funding anticipated to complete financing in incomplete improvements.
66001(d)(1)(D): Designate the approximate dates on which the funding is expected to be deposited into the appropriate account or fund.
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Annual and Five-Year Development Impact Fee Report
Fiscal Year Ended June 30, 2025
Page | 12
A f f o r d a b l e H o u s i n g I m p a c t F e e
The purpose of the Affordable Housing Impact Fee is to mitigate the impact of new development on the need for affordable housing infrastructure and facilities and to provide affordable housing to serve new growth as the City’s population increases. There is a reasonable relationship between the fee and the purpose for which it is charged because the fee does not exceed the reasonable costs of meeting the demand for affordable housing generated by new housing development projects.
There is an unexpended balance in the Affordable Housing Impact Fee fund, which is expected to be used to fund improvements to housing stock, which will provide affordable housing for Capitola residents.
The estimated timing and cost of the project are shown below. This project is expected to begin in FY 2025/26. The balance of the project costs is expected to be funded with grants and other revenue.
Table 11: Affordable Housing Impact Fee Project Identification Project Name Estimated
Start Year
Total
Project
Cost
% Funded
with Impact
Fee Revenue
Amount funded
with Impact Fee
Revenue
Amount
funded with
other sources
Other
Funding
Sources
First time home
buyer down
payment
assistance
2025/2026 $40,000 50% $20,000 $20,000
Housing
Rehabilitation
Program
2025/2026 $225,000 55% $123,750 $101,250
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Annual and Five-Year Development Impact Fee Report
Fiscal Year Ended June 30, 2025
Page | 13
A f f o r d a b l e H o u s i n g I n - L i e u F e e
The purpose of the Affordable Housing In-Lieu Fee is to mitigate the impact of new development on the need for affordable housing infrastructure and facilities and to maintain existing and provide new affordable housing to serve new growth as the City’s population increases. There is a reasonable relationship between the fee and the purpose for which it is charged because the fee does not exceed the reasonable costs of meeting the demand for affordable housing generated by new housing development projects.
There is an unexpended balance in the Affordable Housing In-Lieu Fee fund, which is expected to be used to fund improvements to housing stock, which will provide affordable housing for Capitola residents.
The estimated timing and cost of the project are shown below. This project is expected to begin in FY 2025/26. The balance of the project costs is expected to be funded with grants and other revenue.
Table 12: Affordable Housing Impact Fee Project Identification Project Name Estimated
Start Year
Total Project
Cost
% Funded
with Impact
Fee Revenue
Amount funded
with Impact Fee
Revenue
Amount
funded
with other
sources
Other
Funding
Sources
First time home
buyer down
payment
assistance
2025/2026 $40,000 50% $20,000 $20,000
Housing
Rehabilitation
Program
2025/2026 $225,000 45% $101,250 $123,750
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Annual and Five-Year Development Impact Fee Report
Fiscal Year Ended June 30, 2025
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T r e e I n -L i e u F e e
The purpose of the Tree In-Lieu Fee is to mitigate the impact of tree removals to accommodate development in the City.
There is a reasonable relationship between the fee and the purpose for which it is charged because the fee does not exceed the reasonable costs of meeting the demand for replacing trees removed by new development projects.
There is an unexpended balance in the Tree In-Lieu Fee fund, which is expected to be used to fund the planting and maintenance of trees.
The estimated timing and cost of the project are shown below. This project began in FY 2023/2024. The balance of the project costs is expected to be funded with grants and other revenue.
Table 13: Tree In-Lieu Fee Project Identification
Project Name Estimated Start
Year
Total Project Cost % Funded with
Impact Fee
Revenue
Amount funded
with Impact Fee
Revenue
Tree planting and
maintenance on
City property
2024/2025 $32,027 100% $32,027
Tree Supply
Program
2024/2025 $2,500 100% $2,500
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Annual and Five-Year Development Impact Fee Report
Fiscal Year Ended June 30, 2025
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P u b l i c A r t F e e
The purpose of the Public Art Fee is to enhance the cultural and aesthetic environment of the city, to encourage creativity, the appreciation of the arts and our cultural heritage. There is a reasonable relationship between the fee and the purpose for which it is charged because the fee does not exceed the reasonable costs of mitigating new developments’ impact on public art projects.
There is an unexpended balance in the Public Art fund, which is expected to be used to fund future public art projects.
The estimated timing and cost of the project are shown below. Table 14: Public Art Fee Project Identification
Project Name Estimated Start
Year
Total
Project
Cost
% Funded with
Impact Fee
Revenue
Amount funded
with Impact Fee
Revenue
Amount
funded with
other sources
Future Public Art 2025/2026 $65,505 100% 65,505 $0
Capitola Municipal Code Chapter 2.56 – Art and Cultural Commission states that the Art & Cultural Commission shall advise the City Council on the allocation of public funds for the support & encouragement of public art.
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Annual and Five-Year Development Impact Fee Report
Fiscal Year Ended June 30, 2025
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B i k e I n -L i e u F e e
The purpose of the Bike In-Lieu Fee is to mitigate the impact of removing automobile parking spaces due to street dining and accommodate bicycle parking in the village. There is a reasonable relationship between the fee and the purpose for which it is charged because the fee does not exceed the reasonable costs of providing two bicycle parking spaces within the street right-of-way.
There is an unexpended balance in the Bike In-Lieu fund, which is expected to be used to install bike racks within the City.
The estimated timing and cost of the project are shown below. This project is expected to begin in FY 2025/2026. The balance of the project costs is expected to be funded with grants and other revenue.
Table 15: Public Art Fee Project Identification
Project Name Estimated Start
Year
Total
Project
Cost
% Funded with
Impact Fee
Revenue
Amount funded
with Impact Fee
Revenue
Amount
funded with
other sources
Bike Rack
Installation
2025/2026 $1,200 100% $1,200 $0
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FY 2024–25
Development
Impact Fee
Annual
Report
City of Capitola
January 8, 2026
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Background
• Development impact fees
governed by AB 1600
(Mitigation Fee Act)
• Codified in Government
Code Sections 66000–66023
• Requires annual and fiveyear reporting
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Item 8 C.
Fees Subject to Reporting
• Affordable
housing impact
fees
• Affordable
housing in-lieu
fees
• Tree
replacement inlieu fees
• Bike parking inlieu fees
• Public art fees
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Item 8 C.
Purpose of Impact Fees
• Offset impacts
of new
development
• One-time
contribution
• Limited to
proportionate
share of impacts
• Cannot
correct existing
deficiencies
296
Item 8 C.
Housing
Impact
Fees
• FY 2024–25 balance: $144,598
• FY 2025–26 programmed: $121,250 – First-time homebuyer assistance – Housing rehabilitation – Six or less units 297
Item 8 C.
Housing
In-Lieu
Fees
• FY 2024–25 balance: $204,882
• Pacific Cove loan retired – Funds programmed for housing rehabilitation – Seven or more units
298
Item 8 C.
Other
Fee
Balances
Tree Replacement Fees: – Balance: $127 (used for
planting & maintenance)
Bike Parking In-Lieu Fees: – Balance: $1,200 (bike rack installation)
Public Art Fees: – FY 2024–25 balance:
$100,200
• $65,505 identified for future
public art projects
299
Item 8 C.
Conclusion
• REPORT COMPLIES
WITH MITIGATION
FEE ACT
• ENSURES
TRANSPARENCY AND
ACCOUNTABILITY
• ACCEPTANCE OF
REPORT HAS NO
FISCAL IMPACT
• STAFF
RECOMMENDS
ADOPTION
300
Item 8 C.
Recommended
Action
• Adopt a resolution adopting
the Fiscal Year 2024–25
Development Impact Fee
Annual Report.
301
Item 8 C.
Capitola City Council
Agenda Report
Meeting: January 8, 2026
From: Administrative Services Department
Subject: FY 2024-25 Audit Report
Recommended Action: Receive report.
Background: The City of Capitola is required by state statute to publish a complete set of financial statements presented in conformity with generally accepted accounting principles and audited in accordance with generally accepted auditing standards. The audit must be conducted by a firm of licensed certified public accountants.
The City’s Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2025, has again received an “unmodified” opinion, which indicates the auditor believes the financial statements are presented fairly in all material respects. The City’s annual audit and ACFR meet all state and federal requirements and will be available to the public at City Hall as well as on the City’s website.
Discussion: The financial report presents the financial condition, results of operations, and current economic condition for the City and component units’ Fiscal Year ended June 30, 2025. Financial information for the Successor Agency is presented as a separate Private Purpose Trust Fund within the ACFR.
The independent audit firm Chavan and Associates, LLP issued the following opinion on the City’s financial records, found on page two of the ACFR: “In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Capitola, California, as of June 30, 2025, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.”
The Fiscal Year (FY) 2024-25 ACFR has been submitted to the Government Finance Officers’ Association for the Excellence in Financial Reporting Award. The City’s ACFR has received this prestigious award for the last nine fiscal years. Previously, the City had received the California Society of Municipal Finance Officers Award for the Outstanding Financial Reporting every year since FY 2000.
In addition to the ACFR, the auditor also issues a Management Letter and the Letter of Required Disclosures to the Governing Body and Statement of Auditing Standards (SAS) 114. The Management Letter discusses the City’s internal control over financial reporting and makes recommendations, if necessary, of controls that need to be strengthened. The SAS 114 Letter is a document that discusses, among other matters, any significant audit findings. Neither document identified any areas of concern.
302
Item 8 D.
Fiscal Impact: The following are key financial highlights of the FY 2024-25 ACFR:
Net Position
o Current and other assets $ 13,159,117
o Capital assets 59,463,385
o Total Assets $ 72,622,502
o Total Deferred Outflows of Resources $ 9,785,754
o Other Liabilities $ 2,309,993
o Long-term liabilities
Due in one year 70,379
Due in more than one year 34,494,468
o Total Liabilities $ 36,874,840
o Total Deferred Inflows of Resources $ 1,632,623
o Net Position:
o Net investment in capital assets $ 52,141,330
o Restricted 13,446,693
o Unrestricted (21,687,230)
o Total Net Position $ 43,900,793
Revenues
o General Revenues:
o Taxes:
Sales and use taxes $ 8,633,916
Property taxes 3,340,070
Transient occupancy taxes 2,256,352
Franchise taxes 742,443
Business license taxes 334,274
Cannabis tax 254,790
o Investment income 633,607
o Miscellaneous revenue 1,234,425
o Program Revenues:
Charges for services 3,471,250
Operating grants and contributions 1,286,376
Capital contributions and grants 3,015,706
o Total Revenues $ 25,203,209
Expenses
o General Government $ 6,146,543
o Public Safety 9,242,727
o Community Development 1,676,942
o Culture and Recreation 3,560,635
o Public Works 5,178,574
o Interest and other charges 18,097
o Total Expenses $ 25,823,518
o Revenues over Expenses ($ 620,309)
o Prior Period Adjustment 222,461
303
Item 8 D.
o Change in Net Position (397,848)
o Beginning Net Position 44,298,641
o Ending Net Position $ 43,900,793
General Fund
o Fund balance:
o Restricted:
PERS Retirement Trust $ 1,662,822
o Assigned:
Emergency Reserve 1,631,506
Contingency Reserve 2,364,346
o Unassigned 272,067
o Total Fund Balance $ 5,930,741
Capital Assets:
o Land $ 4,883,789
o Building & Improvements 17,785,112
o Equipment 5,467,569
o Infrastructure 47,501,639
o Construction in Progress 6,967,309
o Total Capital Assets $ 82,605,418
o Less Depreciation 29,770,296
o Capital Assets Net of Depreciation $ 52,835,122
Long-Term Debt / Liability
o Beach & Village Parking Lease 693,792
o Compensated Absences 1,104,385
o Net OPEB Obligation 1,567,639
o Net Pension Liability 31,795,399
o Total Long-Term Debt $ 35,161,215
The next opportunity to review the City’s financial picture, including updated revenue and expenditure forecasts, will be during the FY 2026-27 budget hearings.
Attachments:
1. City of Capitola FY 2024-25 ACFR (Due to holidays, to be provided as Additional Materials)
Report Prepared By: Jim Malberg, Administrative Services Director Reviewed By: Julia Gautho, City Clerk
Approved By: Jamie Goldstein, City Manager
304
Item 8 D.
City of Capitola
Annual Comprehensive
Financial Report
January 8, 2026
305
Item 8 D.
Audit
Requirement &
Compliance
• Prepared in accordance with Generally
Accepted Accounting Principles (GAAP)
• Audited by independent licensed
Certified Public Accounting (CPA) firm
• Meets all state & federal requirements
306
Item 8 D.
Audit
Opinion
• Unmodified (Clean) Opinion
• Financial statements fairly presented
• Auditor: Chavan and Associates, LLP
• 2nd year of 5-year contract
307
Item 8 D.
Awards & Recognition
• Submitted to Government Finance Officers of
America (GFOA)
• Excellence in Financial Reporting since 2012
• Anticipate award for FY 2024-25
• California Society of Municipal Finance Officers
(CSMFO) Award recipient FY 2000 – 2011
• Only eligible to receive one award annually
308
Item 8 D.
FY 2024–25 Financial Snapshot
• Clean (Unmodified) Audit Opinion
• Total Revenues: $25.2M | Total Expenses: $25.6M
• Change in Net Position: ($400,000)
• Ending Net Position: $43.9M
• General Fund Balance: $6.0M
• Capital Assets (Net): $52.8M
• Long-Term Liabilities: $35.2M
• No audit findings or management concerns
309
Item 8 D.
Net Position Highlights
Total Assets: $72.6 million
• Deferred outflows of resources: $9.8 million
Total Liabilities: $36.8 million
• Deferred inflows of resources: $1.6 milion
Ending Net Position: $43.9 million
310
Item 8 D.
General Fund Balance
• Total Fund Balance: $6.0M
– Emergency Reserve: $1.6 million – Contingency Reserve: $2.4 million – CalPERS Retirement Trust: $1.7 million – Unassigned: $300,000 311
Item 8 D.
FY 2024–25
General Fund
Operations
Net Impact: ($511,000)
Total Expenses: $20.5
Public Safety largest
expenditure
$134,000 above
budget projection
Total Revenues: $19.3M
Major sources: taxes &
charges for services
$377,000 below
budget projection
312
Item 8 D.
Main
Drivers of
$377,000
Revenue
Shortfall
• Total sales tax: ($150,000)
• TOT: ($100,000)
• Parking citations: ($168,000)
• Parking revenue: ($80,000)
• Cannabis Tax: ($45,000)
• Net of all other revenue:
$166,000
313
Item 8 D.
Main Drivers
of
$134,000
Expenditure
Overage
City Attorney ($55k)
• Complex projects and Public Records
Community Services and
Recreation ($52k)
• Offset by higher revenue
General Government ($27k)
• City-wide
314
Item 8 D.
FY 2024–25 General Fund
Tax Revenues by Source
• Total Tax Revenue: $15.6 million – Sales Tax: $8.6 million • 9.9% increase over last 10 years – Property Tax: $3.3 million • 52.3% increase over last 10 years – Transient Occupancy Tax (TOT): $2.3 million • 55.5% increase over last 10 years – Franchise Tax: $742,000 – Business License: $334,000 – Cannabis Tax: $255,000 315
Item 8 D.
FY 2024–25 General Fund
Expenses by Function
• General Government: $4.6 million – City Council, City Manager Dept., City Attorney’s Office, Administrative Services Dept. & Community Grants
• Public Safety: $7.9 million
• Community Development: $844,000
• Culture and Recreation: $2.9 million
• Public Works: $3.9 million
• Capital Outlay: $315,000
316
Item 8 D.
Capital Assets
• Net Capital Assets: $52.8M
– Land: $4.9 million – Buildings & Improvements:
$15.0 million – Infrastructure: $24.1 million – Equipment: $1.8 million – Construction in Progress:
$7.0 million
317
Item 8 D.
Long-Term Liabilities
• Total Long-Term Liabilities: $35.2M
– CalPERS Pension Liability: $31.8 million – Other Post Employment Benefits (OPEB): $1.6 million – Compensated Absences: $1.1 million – Beach & Village Parking Lease:
$694,000
318
Item 8 D.
Next Steps
Recommended
Action Receive report
Financial
updates
FY 2025-26 mid-year budget review
FY 2026–27 budget hearings
319
Item 8 D.
Capitola City Council
Agenda Report
Meeting: January 8, 2026
From: City Manager Department
Subject: City Council Representation on Regional Boards Recommended Action: Appoint a representative to the Santa Cruz County Community Action Board.
Background: City Council Members sit on several County and Multi-Jurisdiction boards, one of which is the Santa Cruz County Community Action Board (CAB). CAB’s purpose is to partner with the community to eliminate poverty and create social change through advocacy and essential service.
On January 30, 2025, the City Council reappointed Kristen Brown to serve as Capitola’s representative on CAB. Kristen Brown has served as Capitola’s representative since 2014. On December 1, 2025, Kristen Brown submitted her resignation.
Discussion: The City Council should (by motion and vote) appoint a new representative to replace Kristen Brown. The Council may appoint a Council Member or a member of the public to represent Capitola on the Board. If the Council wishes to appoint a member of the public, staff will advertise the vacancy to the public.
CAB meets on the third Wednesday of the month, with its next meeting on January 21, 2026.
A full list of current assignments to regional boards and advisory groups is included as Attachment 1.
Fiscal Impact: None.
Attachments:
1. List of Appointments
Report Prepared By: Julia Gautho
Approved By: Jamie Goldstein, City Manager
320
Item 8 E.
2025 COUNTY/MULTI-COUNTY BOARDS
CAPITOLA REPRESENTATIVES LIST
Name of Board – Meeting Information Capitola Representative(s) Advisory Council of the Area Agency
on Aging -Seniors Council of
Santa Cruz & San Benito
Counties
(Meets: 2nd Wednesday of each month
except for August and December, at 10
AM in Aptos)
No Term Limits. Recommended to review
appts. every 2 years.
Susan Westman (Appt. July 25)
Jacques Bertrand (Alt. Appt. Sept.
25)
Arts Council Santa Cruz County
(Meeting dates are variable;
Wednesdays 4:30-6:30 PM)
Not a dedicated Capitola seat
No Alternate. No Term Limits
Roy Holmberg (A&C) (Nom. By Art
& Cultural 1/21/25, confirmed by
CC 2/13/25)
Association of Monterey Bay Area
Governments (AMBAG)
▲ ♦
(Meets: 2nd Wednesday of each month at
6 PM in Monterey)
No Term Limits. Recommended to review
appts. every 2 years.
Susan Westman (Appt. July 25)
Margaux Morgan (Alternate)
Bicycle Advisory Committee of the
SCCRTC
(Santa Cruz County Regional
Transportation Commission)
Term expires March 2027
Paula Bradley (Nom. Feb. 24)
Alternate: Christopher O’Connell
(Nom. Jan. 25)
Recruited through RTC, City Council
reviews applications and provides
nominations.
Capitola Community Safety
Foundation
No Alternate, No Term Limits, no fixed
term
Joe Clarke (Appt. Dec. 24)
Central Coast Community Energy
Policy Board
(Meets: Meeting dates are variable,
virtual option in SC County)
Shared seat with Scotts Valley, Chosen by
City Selection, No Term Limits. Terms last
2 years.
Currently Scotts Valley, Capitola in
2026
Community Action Board of Santa
Cruz County
(Meets: 3rd Wednesday of each month at
6:15 PM)
2-year terms
VACANT (Term expires 12/2027)
Community Television of Santa Cruz
County Board of Directors
(Meets: Monthly at 5:30 PM)
Chloe Woodmansee, Assistant to
the City Manager
321
Item 8 E.
2025 COUNTY/MULTI-COUNTY BOARDS CAPITOLA REPRESENTATIVES 2 Criminal Justice Council of Santa
Cruz County ♦
(Meets: Quarterly at 3 PM)
2 seats, 1 Council and 1 Council, CM, or
ACM
Review following seating of new Council
Joe Clarke (Appt. Dec. 24)
Gerry Jensen
LAFCO (Local Agency Formation
Commission) ▲ ♦
(Meets: 1st Wednesday of each month
except for July, at 9 AM in the County
Board of Supervisors Chambers, 701
Ocean Street, Santa Cruz)
Share voting seat with Scotts Valley. Exofficio when not holding voting seat. 2- year terms. Term ends 2027.
Joe Clarke (Appt. Jan. 25)
League of California Cities
(Meets: Monterey Bay Division meets
on the 1st Monday of every other month
at 7 PM at various locations.)
Open to All Council Members
Measure Q Citizens Advisory Board
(Meets: Various locations throughout
County)
Appointed by City Council, 4-year term.
Scott Harway (Appt. Mar. 25)
Monterey Bay Unified Air Pollution
Control District (MBUAPCD)▲
(Meets: 3rd Wednesday of each month
at 1:30 PM at the District Office: 24580
Silver Cloud Ct., Monterey)
Chosen by Selection Committee, rotates
between all cities in County. Council
should review and recommend every 2
years.
Gerry Jensen (Appt. Jan. 25)
Santa Cruz County Children’s
Network
(Meets five times a year at noon in the
County Office of Education)
No Term Limits. Council should review
and recommend every 2 years.
Melinda Orbach (Appt. Jan. 25)
Santa Cruz County Conference &
Visitors Council
(Meets: Last Wednesday at 3:00 PM
every other month except for November
when meeting is TBD, at Goodwill
Industries, 350 Encinal Street, Santa
Cruz)
Chosen by City Selection Committee, rotates
between Cap, Wat, SV. Council should review
and recommend every 2 years.
Not currently Capitola
322
Item 8 E.
2025 COUNTY/MULTI-COUNTY BOARDS CAPITOLA REPRESENTATIVES 3 Santa Cruz County Flood Control &
Water
Conservation District, Zone 5
▲ ♦
(Meets: Quarterly on the 4th Tuesday at
10 AM in the County Board of
Supervisors Chambers, 701 Ocean
Street)
Council to review appointments annually
Joe Clarke (Appt. Dec. 24)
Melinda Orbach (Alternate)
Santa Cruz County Hazardous
Materials Advisory Commission
(Meets: 4th Wednesday of every other
month at 9 AM at Capitola City Hall
Community Room)
Four-year term expires in April 2027
Nicholas Brown (Appt. Apr. 23)
Santa Cruz County Library Financing
Authority ♦
(Meets: Semi-annually, in January and
June, Main Library)
Council to review appointments annually
Melinda Orbach (Appt. Dec. 24)
Joe Clarke (Alternate)
Santa Cruz Public Libraries Library
Advisory Commission
(Meets: Monday evenings, various
branches)
4-year term, expires March 2027
Mike Termini (Appt. Jan. 23)
Recruited through Library, City Council
reviews applications and provides
appointment.
Santa Cruz Public Libraries Joint
Powers Authority Board ▲ (LJPA)
(Meets: 1st Monday of each month at
7:30 PM at the Main Library
Community Room)
City Manager is appointed by JPA
Jamie Goldstein
Santa Cruz County Integrated Waste
Management Local Task Force
(Meets: Quarterly)
Erika Senyk (Appt. Dec. 24)
Susan Westman (Alternate – Appt.
June 2025)
Santa Cruz County Regional
Transportation Commission
(SCCRTC) ▲ ■
(Meets: 1st Thursday of each month
except for July, at 9 AM at various
locations)
No Term Limits. Council should review
and recommend every 2 years.
Gerry Jensen (Appt. June 25)
Joe Clarke (Alternate)
323
Item 8 E.
2025 COUNTY/MULTI-COUNTY BOARDS CAPITOLA REPRESENTATIVES 4 Santa Cruz County Sanitation District
▲ ♦
(Meets: 1st & 3rd Thursday of each
month at 4:45 PM at the East Cliff
Pumping Station on Lode St., Santa
Cruz)
Council to review appointments annually
Joe Clarke (Appt. Dec. 24)
Gerry Jensen (Alternate)
Santa Cruz Metropolitan Transit
District Board ▲ ■
(Meets: 3rd Friday of each month at
8:15 AM at various locations)
Four-year term, expires December 31,
2024
Melinda Orbach (Appt. Dec. 24)
Susan Westman (Alternate – Appt.
June 2025)
Santa Cruz Regional 911 Board▲
(Meets: Every other month at 1:30 PM)
City Manager is appointed
Jamie Goldstein, City Manager
Housing for Health Partnership
Policy Board
Two-year term, rotates with Scotts Valley, term
expires Fall 2026
Not currently Capitola
Santa Cruz County Animal Services
Agency
Chief Ryan
United Way Youth Liaison Program Joe Clarke (Appt. July 2024) Melinda Orbach (Appt. June 2025)
▲ = Members are required to File Statements of Economic Interest, Form 700 ■ = Members are required to complete AB 1234 Ethics Training ♦ = Council Member appointment required
Revised: 12/12/2025 JG
324
Item 8 E.