Capitola City Council
February 12, 2026

City of Capitola
City Council Meeting Agenda
Thursday, February 12, 2026 – 6:00 PM
City Council Chambers
420 Capitola Avenue, Capitola, CA 95010
Mayor: Margaux Morgan
Vice Mayor: Gerry Jensen
Council Members: Joe Clarke, Melinda Orbach, Susan Westman Regular Meeting of the Capitola City Council – 6 PM

1. Roll Call and Pledge of Allegiance
Council Members Joe Clarke, Melinda Orbach, Susan Westman, Vice Mayor Gerry Jensen, and Mayor Margaux Morgan

2. Additions and Deletions to the Agenda

3. Presentations
Presentations are limited to eight minutes.

A. Acceptance of funds for the Treasure Cove Playground at Jade Street Park from the Friends of Santa Cruz County Parks

4. Additional Materials
Additional information related to an agenda item on this agenda and submitted to the City after distribution of the agenda packet pursuant to Government Code §54957.5. All correspondence received prior to 5:00 p.m. on the Wednesday preceding a Council Meeting will be distributed to Councilmembers to review prior to the meeting. Information submitted after 5 p.m. on that Wednesday may not have time to reach Councilmembers, nor be read by them prior to consideration of an item.

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

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

7. Consent Items
All items listed as “Consent Items” will be enacted by one motion in the form listed below. There will be no separate discussion on these items prior to the time the Council votes on the action unless members of the City Council request specific items to be discussed for separate review. Items pulled 1 City Council Meeting Agenda – February 12, 2026
City of Capitola Page 2
for separate discussion will be considered following General Government. Note that all Ordinances which appear on the public agenda shall be determined to have been read by title and further reading waived.

A. City Council Meeting Minutes
Recommended Action: Approve minutes from the regular meeting on January 22, 2026.

B. Fifth Amendment to Library Joint Powers Agreement
Recommended Action: Authorize the City Manager to execute the fifth amendment to the Joint Powers Agreement for Library Services between the City of Santa Cruz and the County of Santa Cruz and the Cities of Capitola and Scotts Valley, extending the term effective January 1, 2026 through June 30, 2032.

C. Capitola Administrative Policies
Recommended Action: Receive report and revoke the following policies: V-2: Government Access Channel 8 and V-3: Use of Display Cases on the Municipal Wharf Entrance Gate.

D. Name Change for City-Owned Parking Lots Located Near City Hall Recommended Action: Approve renaming the parking facilities currently known as “Beach and Village Parking Lots 1 & 2” to “City Upper Lot” and “City Lower Lot.”

8. General Government / Public Hearings
All items listed in “General Government / Public Hearings” are intended to provide an opportunity for public discussion of each item listed. The following procedure pertains to each General Government item: 1) Staff explanation; 2) Council questions; 3) Public comment; 4) Council deliberation; 5) Decision.

A. 41st Avenue Pavement Rehabilitation and Multimodal Improvements Recommended Action: Approve the plans, specifications, and construction budget of $1,700,000 for the 41st Avenue Pavement Rehabilitation and Multimodal Improvements Project; and authorize the Department of Public Works to advertise for construction bids.

B. Update on Measure Y Sales Tax
Recommended Action: Receive a report on Measure Y Sales Tax and provide staff with direction.

C. Measure Q Grant Application
Recommended Action: Authorize staff to submit a Tier 2 Measure Q Community Impact Grant application in an amount not to exceed $325,000 for invasive species removal, native habitat restoration, and interpretive signage improvements adjacent to the Park at Rispin Mansion along Soquel Creek.

D. Housing for Health Partnership Board Appointment
Recommended Action: Appoint the City of Capitola’s representative on the Santa Cruz County Housing for Health Partnership Policy Board for a two-year term expiring December 2027.

E. Finance Advisory Committee Composition
Recommended Action: Review City Council appointments to the Finance Advisory Committee.

9. Adjournment
The next regularly scheduled City Council meeting is on February 26, 2026, at 6:00 PM. 2 City Council Meeting Agenda – February 12, 2026
City of Capitola Page 3
_____________________________________________________
How to View the Meeting
Meetings are open to the public for in-person attendance at the Capitola City Council Chambers located at 420 Capitola Avenue, Capitola, California, 95010.

Other ways to Watch:

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

Meeting
link: https://us02web.zoom.us/j/83328173113?pwd=aVRwcWN3RU03Zzc2dkNpQzRWVXAydz09 Or dial one of these phone numbers: 1 (669) 900 6833, 1 (408) 638 0968, 1 (346) 248 7799 Meeting ID: 833 2817 3113
Meeting Passcode: 678550
How to Provide Comments to the City Council
Members of the public may provide public comments to the City Council in-person during the meeting.

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

Notice regarding City Council: The City Council meets on the 2nd and 4th Thursday of each month at 6:00 p.m. in the City Hall Council Chambers located at 420 Capitola Avenue, Capitola.

Agenda and Agenda Packet Materials: The City Council Agenda and the complete Agenda Packet are available for review on the City’s website and at Capitola City Hall prior to the meeting. Need more information? Contact the City Clerk’s office at 831-475-7300.

Agenda Materials Distributed after Distribution of the Agenda Packet: Pursuant to Government Code §54957.5, materials related to an agenda item submitted after distribution of the agenda packet are available for public inspection at the Reception Office at City Hall, 420 Capitola Avenue, Capitola, California, during normal business hours.

Americans with Disabilities Act: Disability-related aids or services are available to enable persons with a disability to participate in this meeting consistent with the Federal Americans with Disabilities Act of 1990. Assisted listening devices are available for individuals with hearing impairments at the meeting in the City Council Chambers. Should you require special accommodations to participate in the meeting due to a disability, please contact the City Clerk’s office at least 24 hours in advance of the meeting at 831-475-7300. In an effort to accommodate individuals with environmental sensitivities, attendees are requested to refrain from wearing perfumes and other scented products.

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

Televised Meetings: City Council meetings are cablecast “Live” on Charter Communications Cable TV Channel 8 and are recorded to be rebroadcasted at 8:00 a.m. on the Wednesday following the meetings and at 1:00 p.m. on Saturday following the first rebroadcast on Community 3 City Council Meeting Agenda – February 12, 2026
City of Capitola Page 4
Television of Santa Cruz County (Charter Channel 71 and Comcast Channel 25). Meetings are streamed “Live” on the City’s website by clicking on the Home Page link “Meeting Agendas/Videos.” Archived meetings can be viewed from the website at any time. 4 Capitola City Council
Agenda Report
Meeting: February 12, 2026
From: City Manager Department
Subject: City Council Meeting Minutes
Recommended Action: Approve minutes from the regular meeting on January 22, 2026.

Background: Attached for City Council review and approval are the draft minutes from the regular meeting on January 22, 2026.

Alignment with 2025-2029 Strategic Plan Priority: Accountable Government Attachments:

1. Regular Meeting 1/22/2026
Report Prepared By: Julia Gautho, City Clerk
Approved By: Jamie Goldstein, City Manager
5 Item 7 A.

City of Capitola
City Council Meeting Agenda
Thursday, January 22, 2026 – 6:00 PM
City Council Chambers
420 Capitola Avenue, Capitola, CA 95010
Mayor: Margaux Morgan
Vice Mayor: Gerry Jensen
Council Members: Joe Clarke, Melinda Orbach, Susan Westman Closed Session – 5:30 PM
i. CONFERENCE WITH LEGAL COUNSEL—LIABILITY CLAIMS (Gov. Code § 54956.95) Claims Against the City of Capitola
1) Celeste Baylor
ii. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Govt. Code. §54956.9(d)(2).

One Case
Regular Meeting of the Capitola City Council – 6 PM

1. Roll Call and Pledge of Allegiance - The meeting was called to order at 6:02 PM. In attendance: Council Members Clarke, Orbach, Westman, Vice Mayor Jensen, and Mayor Morgan.

2. Additions and Deletions to the Agenda – None

3. Report on Closed Session – The City Council met and discussed two items on the Closed Session agenda. No reportable action was taken.

4. Additional Materials
A. Item 7F - Staff memorandum and updated agreement distributed after publication of the agenda packet.

B. Item 8A – Four pieces of correspondence received after publication of the agenda packet.

C. Item 8B – Two pieces of correspondence received after publication of the agenda packet.

D. Item 8A - Staff memorandum with updated Exhibit A distributed after publication of the agenda packet.

5. Oral Communications by Members of the Public
 Goran Klepic
 Keith Cahalen
 Mick Routh
 Loreal Weitzel
 Natasha Herzig
 Linda Smith
 Tiffany Hsu
 Lin Hsu
 Cheryl
6 Item 7 A.

City Council Meeting Agenda – January 22, 2026
City of Capitola Page 2

6. Staff / City Council Comments
 Council Member Westman provided updates on her attendance at a recent AMBAG meeting; and provided comments on the City’s work to update the Zoning Code and create objective standards for the review of development of the Capitola Mall.  Vice Mayor Jensen thanked the speakers from the Arukah Project for their comments; provided updates on his attendance at a recent SCCRTC meeting; commended El Toro Bravo on their reopening; and provided comments on the recent complaint received by the Department of Housing and Community Development. Council Member Jensen requested his comments be included in the meeting minutes, a copy of which is included below:

I’d like to take a few additional minutes to address an issue that has given me pause, prompting reflection and a careful consideration of its impact on our community’s trust. I don’t usually prepare my comments or read from the dais, but this situation felt important to speak about directly. First, I want to publicly thank Planning Director Katie Herlihy, her staff, and our consultants for their dedication and the countless hours they’ve invested in navigating the State’s new housing mandates. These mandates are complex, time-sensitive, and critically important to our community’s future. Their work has consistently demonstrated a commitment to protecting the community’s interests, and that commitment has not gone unnoticed. I especially want to acknowledge the department’s outreach. As many of you know, I have consistently advocated for transparency, open communication, and bringing our community together and over the past year, I have seen a major improvement in outreach. This is something I am deeply passionate about. Our community is supportive of providing affordable housing and doing its part to meet broader regional needs. I also believe the Capitola community is committed to meeting State housing requirements while ensuring that the process includes genuine community involvement and transparency. To date, under Katie’s leadership, the City has been and continues to be dedicated to delivering on that commitment with respect to the housing element. We have hosted community meetings, discussed the topic at numerous Planning Commission and City Council meetings, and in every setting, the public has been given opportunities to comment, ask questions, and participate. In addition, each councilmember has an appointed Planning Commissioner who serves as another point of input and engagement. Katie has personally responded to community emails, and her professionalism in those exchanges has been and continues to be outstanding. I also want to thank our Planning Commissioners, Chair Christian, Vice Chair Kieu, and Commissioners Welch, Howard, and Estey for their dedication, guidance, and commitment to this issue, with full transparency and without an agenda other than the best interest of the City. And finally, the City has remained in direct communication with HDC, keeping them updated on the status and timelines related to the Capitola Mall project, which further reflects the City’s good-faith effort to communicate clearly and consistently. I want to address my concern directly. Despite the City’s extensive outreach and transparency, a complaint was filed at the state level, bypassing local opportunities for engagement to advance an agenda. I understand that people can feel frustrated or unheard, but circumventing the local process does a disservice to the community. It misrepresents the status of the process which, as of today, has not received any formal action from either the Planning Department or City Council and places additional legal and administrative burdens on staff already working under significant time pressures. This is not constructive civic engagement; it is disruptive, unnecessary, and adds strain to those who are diligently serving our community. Katie, thank you again. You and your team are operating under intense time constraints, and your professionalism continues to represent our City with integrity. I can only imagine the added workload now facing your department due to this complaint, as well as the potential additional cost to the City at a time when we are already operating under budget constraints. To our community members: if someone has concerns about this process or any other topic the appropriate place to raise them is here in this chamber, at our public meetings, and through direct communication with staff and elected officials. Each council member is available to hear from members of the 7 Item 7 A.

City Council Meeting Agenda – January 22, 2026
City of Capitola Page 3
community to share their perspective. While frustration or impatience can be understandable, going outside the process to advance an agenda is not how we solve community issues, and it should not become the norm. We can ….. and should ….. disagree. Disagreement is healthy. But it must be honest, transparent, and open and not self-serving. That is how we move forward together as one community, respecting both the process and each other. I would also like to request that my detailed comments are reflected in meeting minutes.  Council Member Orbach thanked the speakers from the Arukah Project; requested that the City issue a proclamation recognizing January as Human Trafficking Month; provided comments on the upcoming ceremony celebrating the installation of solar panels at the Capitola Library; provided comments on the complaint submitted by her husband to the Department of Housing and Community Development.
 Mayor Morgan thanked the speakers from the Arukah Project and supported the request for a proclamation; provided comments on the complaint received by the Department of Housing and Community Development and clarified that staff will continue to work with the state on implementation of the Housing Element.

7. Consent Items
A. City Council Meeting Minutes
Recommended Action: Approve minutes from the regular meeting on January 8, 2026.

B. City Check Registers
Recommended Action: Approve check registers dated November 28, 2025, and December 19, 2025.

C. Local Coastal Program Amendments for Cliff Drive Resiliency Recommended Action: Adopt 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. (Ordinance No. 1074)
D. Liability Claim
Recommended Action: Deny liability claim from Celeste Baylor.

E. Fiscal Year 2026-27 Budget Calendar
Recommended Action: Approve the Budget Calendar for Fiscal Year (FY) 2026-27.

F. Use Agreement for Capitola City Hall Council Community Room Recommended Action: Authorize the City Manager to execute an agreement with the Capitola Village and Wharf Business Improvement Area for use of the City Hall Community Room for the next three years.

Council Member Clarke requested to pull Item 7F.

Motion to approve the Consent Calendar Items 7A - 7E: Council Member Orbach Second: Council Member Westman
Voting Yea: Council Members Clarke, Orbach, Westman, Vice Mayor Jensen, and Mayor Morgan

8. General Government / Public Hearings
A. Offshore Oil Drilling
Recommended Action: Authorize the Mayor to submit a letter opposing the Bureau of Ocean Energy Management’s proposed 11th National Outer Continental Shelf Oil & Gas Leasing Program.
8 Item 7 A.

City Council Meeting Agenda – January 22, 2026
City of Capitola Page 4
Public Works Director Kahn presented the staff report.

Public Comment:
 Speaker
 Paula Bradley
 Morganna Johnson
 Darcie Connell
 Alexis, representing Assemblymember Dawn Addis
The Council requested that this topic return for further discussion once the City and County of Santa Cruz update their ordinances to include reference to seabed mining.

Motion to authorize the Mayor to submit a letter opposing the Bureau of Ocean Energy Management’s proposed 11th National Outer Continental Shelf Oil & Gas Leasing Program: Council Member Jensen
Second: Council Member Clarke
Voting Yea: Council Members Clarke, Orbach, Westman, Vice Mayor Jensen, and Mayor Morgan
B. Support for Santa Cruz County Regional Transportation Commission Direction on Coastal Rail Trail Segments 10–11 and Evaluation of the Capitola Trestle Recommended Action: Adopt a resolution expressing support for the Santa Cruz County Regional Transportation Commission’s December 4, 2025 action advancing an Interim Trail configuration for Coastal Rail Trail Segments 9–11 and directing evaluation of the historic Capitola trestle for interim bicycle and pedestrian use.

Public Works Director Kahn presented the staff report.

Public Comment:
 Paula Bradley
 Speaker
The Council thanked the members of the RTC for their efforts on this project.

Motion to adopt Resolution No. 4473: Council Member Westman Second: Council Member Clarke
Voting Yea: Council Members Clarke, Westman, Vice Mayor Jensen, and Mayor Morgan Voting Nay: Council Member Orbach
C. Introduction to Discover Capitola, the City’s Civic Engagement Program Recommended Action: Receive report.

Assistant to the City Manager Woodmansee presented the staff report.

Public Comment: None
D. Temporary/Hourly Employee Pay Schedule
Recommended Action: Adopt a resolution amending the temporary/hourly employee pay schedule. (Continued from December 11, 2025, City Council meeting) Administrative Services Director presented the staff report.

Public Comment: None
Motion to approve the pay adjustment (Resolution No. 4474) and amend the FY 2025-26 Budget to forego the Council travel and training budget: Vice Mayor Jensen 9 Item 7 A.

City Council Meeting Agenda – January 22, 2026
City of Capitola Page 5
Motion amended to include retroactive pay to the date of January 4th: Council Member Westman
Amendment Accepted: Vice Mayor Jensen
Second: Council Member Westman
Voting Yea: Council Members Clarke, Orbach, Westman, Vice Mayor Jensen, and Mayor Morgan

7. Consent Items Pulled for Discussion
F. Use Agreement for Capitola City Hall Council Community Room Recommended Action: Authorize the City Manager to execute an agreement with the Capitola Village and Wharf Business Improvement Area for use of the City Hall Community Room for the next three years. (Pulled for discussion by Council Member Clarke) Assistant to the City Manager Woodmansee presented the staff report.

Public Comment:
 Speaker
Motion to authorize the City Manager to execute an agreement with the BIA for use of the City Hall Community Room for a period of three years: Council Member Orbach Second: Council Member Clarke
Voting Yea: Council Members Clarke, Orbach, Westman, Vice Mayor Jensen, and Mayor Morgan

9. Adjournment
The meeting adjourned at 7:51 PM. The next regularly scheduled City Council meeting is on February 12, 2026, at 6:00 PM.
________________________
Margaux Morgan, Mayor
ATTEST:
______________________
Julia Gautho, City Clerk
10 Item 7 A.

Capitola City Council
Agenda Report
Meeting: February 12, 2026
From: City Manager Department
Subject: Fifth Amendment to Library Joint Powers Agreement Recommended Action: Authorize the City Manager to execute the fifth amendment to the Joint Powers Agreement for Library Services between the City of Santa Cruz and the County of Santa Cruz and the Cities of Capitola and Scotts Valley, extending the term effective January 1, 2026 through June 30, 2032.

Background: The Santa Cruz Public Libraries (SCPL) Joint Powers Authority (JPA) is a legal agreement between the County of Santa Cruz and the Cities of Santa Cruz, Capitola, and Scotts Valley. The JPA was formed in 1996 and oversees the operations and policies. A separate JPA, the Santa Cruz County Library Financing Authority, provides funding for the library system. The SCPL JPA oversees 10 library branches throughout the County and three cities, and the City of Santa Cruz provides contracted administration services to the library system.

The Fifth Amendment to the JPA between the City of Santa Cruz and the County of Santa Cruz and the Cities of Capitola and Scotts Valley relating to Library Services (Fifth Amendment) extends the term from January 1, 2026 through June 30, 2032, to align with the Santa Cruz County Library Financing Authority.

The Library Joint Powers Authority Board of Directors accepted and filed the Fifth Amendment at its December 12, 2025, meeting and forwarded it to member agencies for approval.

Discussion: The Fifth Amendment (Attachment 1) extends the term of the Library Joint Powers Authority (LJPA) to align with the current term of the Library Financing Authority (LFA). The LJPA’s new term will be effective January 1, 2026 through June 30, 2032. No other changes are proposed.

Fiscal Impact: None.

Attachments:

1. Proposed Fifth Amendment

2. Fourth Amendment, signed December 2016
Alignment with 2025-2029 Strategic Plan Priority: Accountable Government; Community Safety; Healthy Families, Community, and Environment
Report Prepared By: Chloé Woodmansee, Assistant to the City Manager Reviewed By: Julia Gautho, City Clerk
Approved By: Jamie Goldstein, City Manager
11 Item 7 B.

FIFTH AMENDMENT TO THE JOINT POWERS AGREEMENT BETWEEN

THE CITY OF SANTA CRUZ AND THE COUNTY OF SANTA CRUZ

AND THE CITIES OF CAPITOLA AND SCOTTS VALLEY,

RELATING TO LIBRARY SERVICES
This Fifth Amendment to the Joint Powers Agreement is effective as of January 1, 2026 once it has been duly approved and executed by all parties hereto by and among the County of Santa Cruz ("County"), the City of Santa Cruz ("Santa Cruz"), the City of Capitola ("Capitola"), and the City of Scotts Valley ("Scotts Valley"), each duly organized and existing under the laws of the State of California.

Recitals

1. Whereas, the above-referenced parties (collectively, “Parties”) executed a Joint Powers Agreement relating to the provision of library services within the cities of Santa Cruz, Capitola and Scotts Valley and the unincorporated area of Santa Cruz County through the establishment of a Library Services Joint Powers Authority (“LJPA” or “Services Authority”) with an effective date of June 24, 1996 ("the 1996 Agreement"); and

2. Whereas, the Parties entered into amendments to the 1996 Agreement:

First Amendment in or about June 1998, a Second Amendment in or about November 1999, Third Amendment in or about June 2007; and

3. Whereas, the Parties entered into a Fourth Amendment to the 1996 Agreement on or about December 16, 2015 (“Fourth Amendment” or “2015 LJPA Agreement”), which replaced and superseded the terms of the original 1996 Agreement and the prior three amendments thereto. The term of the 2015 LJPA Agreement expires on December 31, 2025; and

4. Whereas, the Parties agree to enter into this Fifth Amendment to the 1996 Agreement to extend the term of the 2015 LJPA Agreement, as specified herein.

AGREEMENT
NOW, THEREFORE, it is agreed between the Parties to incorporate the above Recitals hereto, and that the Parties agree to the following:

1. Section “4.Term” of the 2015 LJPA Agreement is hereby amended to extend the term from January 1, 2026 through June 30, 2032.

2. Except as amended by this Fifth Amendment, all other applicable terms and conditions of the 2015 LJPA Agreement shall remain in full force and effect. The terms of this Fifth Amendment shall control if any conflict exists.

3. Each party acknowledges that it has reviewed this Fifth Amendment and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Fifth Amendment.

4. The unenforceability, invalidity or illegality of any provision(s) of this Fifth Amendment shall not render the other provisions unenforceable, invalid or illegal.

Docusign Envelope ID: E13235CF-BCF2-4657-A6FE-8BA10D7E2C75 12 Item 7 B.

5. The Parties may execute this Fifth Amendment in two or more counterparts, which shall, in the aggregate, be deemed an original but all of which, together, shall constitute one and the same instrument. A scanned, electronic, facsimile or other copy of a party’s signature shall be accepted and valid as an original.

6. The signatories to this Fifth Amendment warrant and represent that each is authorized to execute this Fifth Amendment and that their respective signatures serve to legally obligate their respective representatives, agents, successors and assigns to comply with the provisions of this Fifth Amendment.
[SIGNATURE PAGES FOLLOW]
Docusign Envelope ID: E13235CF-BCF2-4657-A6FE-8BA10D7E2C75 13 Item 7 B.

IN WITNESS WHEREOF, the Parties have caused this Fifth Amendment to be effective as of the first date written above and is executed and attested by their proper officers thereunto duly authorized on the day and year stated below.

COUNTY OF SANTA CRUZ
Dated: ______________ By:_______________________________ Nicole D. Coburn
County Executive Officer, Santa Cruz County
ATTESTED:

By: ____________________
Clerk of the Board
Approved as to form:
_______________________________
Office of the Santa Cruz County Counsel
Docusign Envelope ID: E13235CF-BCF2-4657-A6FE-8BA10D7E2C75 1/22/2026
14 Item 7 B.

IN WITNESS WHEREOF, the Parties have caused this Fifth Amendment to be effective as of the first date written above and is executed and attested by their proper officers thereunto duly authorized on the day and year stated below.

CITY OF SANTA CRUZ
Dated: ________________ By:________________________________ Matt Huffaker, City Manager
ATTESTED:

By: ____________________
City Clerk
Approved as to form:
______________________________
Office of the Santa Cruz City Attorney
Docusign Envelope ID: E13235CF-BCF2-4657-A6FE-8BA10D7E2C75 15 Item 7 B.

IN WITNESS WHEREOF, the Parties have caused this Fifth Amendment to be effective as of the first date written above and is executed and attested by their proper officers thereunto duly authorized on the day and year stated below.

CITY OF CAPITOLA
Dated: _________________ By:______________________________ Jamie Goldstein, City Manager
ATTESTED:

By: ____________________
City Clerk
Approved as to form:
______________________________
Capitola City Attorney
Docusign Envelope ID: E13235CF-BCF2-4657-A6FE-8BA10D7E2C75 16 Item 7 B.

IN WITNESS WHEREOF, the Parties have caused this Fifth Amendment to be effective as of the first date written above and is executed and attested by their proper officers thereunto duly authorized on the day and year stated below.

CITY OF SCOTTS VALLEY
Dated: ____________________ By:________________________________ Mali LaGoe, City Manager
ATTESTED:

By: ____________________
City Clerk
Approved as to form:
______________________________
Scotts Valley City Attorney
Docusign Envelope ID: E13235CF-BCF2-4657-A6FE-8BA10D7E2C75 17 Item 7 B.

Certificate Of Completion
Envelope Id: E13235CF-BCF2-4657-A6FE-8BA10D7E2C75 Status: Completed Subject: Complete with Docusign: LJPA_Fifth_Amendment_Jan26.pdf Source Envelope:

Document Pages: 6 Signatures: 1 Envelope Originator:

Certificate Pages: 5 Initials: 0 Nicole Coburn
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
701 Ocean Street
Santa Cruz, CA 95060
[email protected]
IP Address: 63.194.190.249
Record Tracking
Status: Original
1/22/2026 5:17:35 PM
Holder: Nicole Coburn
[email protected]
Location: DocuSign
Security Appliance Status: Connected Pool: FedRamp
Storage Appliance Status: Connected Pool: County of Santa Cruz Location: Docusign Signer Events Signature Timestamp
Jason M. Heath
[email protected]
County Counsel
County of Santa Cruz
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 63.194.190.50
Sent: 1/22/2026 5:19:17 PM
Viewed: 1/22/2026 5:23:27 PM
Signed: 1/22/2026 5:26:39 PM
Electronic Record and Signature Disclosure:

Accepted: 1/22/2026 5:23:27 PM
ID: 54ed8ddd-2f02-4846-863f-e83f6758e47f
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Juliette Rezzato
[email protected]
Chief Deputy Clerk of the Board of Supervisors
County of Santa Cruz
Security Level: Email, Account Authentication
(None)
Sent: 1/22/2026 5:26:40 PM
Viewed: 1/22/2026 5:28:08 PM
Electronic Record and Signature Disclosure:

Accepted: 5/11/2022 7:47:21 AM
ID: 050883f5-a40c-4427-bdbd-fa282a697a25
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 1/22/2026 5:19:17 PM
18 Item 7 B.

Envelope Summary Events Status Timestamps
Certified Delivered Security Checked 1/22/2026 5:23:27 PM Signing Complete Security Checked 1/22/2026 5:26:39 PM
Completed Security Checked 1/22/2026 5:26:40 PM
Payment Events Status Timestamps
Electronic Record and Signature Disclosure
19 Item 7 B.

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Consequences of changing your mind
If you elect to receive required notices and disclosures only in paper format, it will slow the speed at which we can complete certain steps in transactions with you and delivering services to you because we will need first to send the required notices or disclosures to you in paper format, and then wait until we receive back from you your acknowledgment of your receipt of such paper notices or disclosures. Further, you will no longer be able to use the DocuSign system to receive required notices and consents electronically from us or to sign electronically documents from us.

All notices and disclosures will be sent to you electronically Electronic Record and Signature Disclosure created on: 2/28/2022 5:23:37 PM Parties agreed to: Jason M. Heath, Juliette Rezzato
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Unless you tell us otherwise in accordance with the procedures described herein, we will provide electronically to you through the DocuSign system all required notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you during the course of our relationship with you. To reduce the chance of you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required notices and disclosures to you by the same method and to the same address that you have given us. Thus, you can receive all the disclosures and notices electronically or in paper format through the paper mail delivery system. If you do not agree with this process, please let us know as described below. Please also see the paragraph immediately above that describes the consequences of your electing not to receive delivery of the notices and disclosures electronically from us.

How to contact County of Santa Cruz:

You may contact us to let us know of your changes as to how we may contact you electronically, to request paper copies of certain information from us, and to withdraw your prior consent to receive notices and disclosures electronically as follows:

To contact us by email send messages to: [email protected] To advise County of Santa Cruz of your new email address To let us know of a change in your email address where we should send notices and disclosures electronically to you, you must send an email message to us at [email protected] and in the body of such request you must state: your previous email address, your new email address. We do not require any other information from you to change your email address.

If you created a DocuSign account, you may update it with your new email address through your account preferences.

To request paper copies from County of Santa Cruz
To request delivery from us of paper copies of the notices and disclosures previously provided by us to you electronically, you must send us an email to [email protected] and in the body of such request you must state your email address, full name, mailing address, and telephone number. We will bill you for any fees at that time, if any.

To withdraw your consent with County of Santa Cruz
To inform us that you no longer wish to receive future notices and disclosures in electronic format you may:
21 Item 7 B.
i. decline to sign a document from within your signing session, and on the subsequent page, select the check-box indicating you wish to withdraw your consent, or you may; ii. send us an email to [email protected] and in the body of such request you must state your email, full name, mailing address, and telephone number. We do not need any other information from you to withdraw consent.. The consequences of your withdrawing consent for online documents will be that transactions may take a longer time to process..

Required hardware and software
The minimum system requirements for using the DocuSign system may change over time. The current system requirements are found here: https://support.docusign.com/guides/signer-guidesigning-system-requirements.

Acknowledging your access and consent to receive and sign documents electronically To confirm to us that you can access this information electronically, which will be similar to other electronic notices and disclosures that we will provide to you, please confirm that you have read this ERSD, and (i) that you are able to print on paper or electronically save this ERSD for your future reference and access; or (ii) that you are able to email this ERSD to an email address where you will be able to print on paper or save it for your future reference and access. Further, if you consent to receiving notices and disclosures exclusively in electronic format as described herein, then select the check-box next to ‘I agree to use electronic records and signatures’ before clicking ‘CONTINUE’ within the DocuSign system.

By selecting the check-box next to ‘I agree to use electronic records and signatures’, you confirm that:
 You can access and read this Electronic Record and Signature Disclosure; and  You can print on paper this Electronic Record and Signature Disclosure, or save or send this Electronic Record and Disclosure to a location where you can print it, for future reference and access; and
 Until or unless you notify County of Santa Cruz as described above, you consent to receive exclusively through electronic means all notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you by County of Santa Cruz during the course of your relationship with County of Santa Cruz.
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Capitola City Council
Agenda Report
Meeting: February 12, 2026
From: City Manager Department
Subject: Capitola Administrative Policies
Recommended Action: Receive report and revoke the following policies: V-2: Government Access Channel 8 and V-3: Use of Display Cases on the Municipal Wharf Entrance Gate.

Background: The City of Capitola has more than 100 Administrative Policies, all of which are approved by either the City Manager or the City Council. The purposes of Administrative Policies are to establish new City programs or policies, set internal procedures for implementing those programs, set expectations of employee behavior and interaction, and confirm personnel procedures.

Policies that relate to employment relations and benefits often require a meet and confer process with Capitola’s represented groups: the Association of Capitola Employees (ACE) and the Capitola Police Officers Association (CPOA). Most policies are under the City Manager’s authority to approve and/or modify, but some require City Council approval.

On December 11, 2025, Council Member Westman requested that staff review and determine how to make policies more accessible to the public.

Discussion: Staff has reviewed the City’s Administrative Policies and revoked four due to their age and irrelevance. Staff also identified five policies to update as time allows, one of which (I-20: Board, Commission, and Committee Guide) will require City Council review and approval. Staff will return with a red-lined I-20 that includes recommended edits before the end of the year.

Staff recommends that the City Council revoke two policies listed below:
 V-2: Government Access Channel 8 (Attachment 1)
 V-3: Use of Display Cases on the Municipal Wharf Entrance Gate (Attachment 2) Public Access:

On December 11, the Council asked that policies that affect the public be accessible on the City website.

A portal of all adopted policies is currently available on the website under “City Services -> City Clerk’s Office -> Public Records,” however the location may not be particularly intuitive to members of the public.

Therefore, as part of the Citywide Website Update Project, staff is identifying ways to more clearly organize and present administrative policies. For example, when the new website launches, a dedicated webpage will be available for policies related to City Council members. Some policies that establish procedures affecting the public (such as how to participate in the Capitola Village Outdoor Dining Program) are already available on the City website and located on pages associated with the relevant program. Staff is currently assessing how to better organize and centralize this information to improve ease of access and public use.

The new website should launch before summer 2026. Prior to launch, staff will present Council with an overview of the new website, including how the administrative polices are accessed.

Fiscal Impact: None.

Attachments:

1. V-2: Government Access Channel 8

2. V-3: Use of Display Cases on the Municipal Wharf Entrance Gate Alignment with 2025-2029 Strategic Plan Priority: Accountable Government 40 Item 7 C.

Report Prepared By: Chloé Woodmansee, Assistant to the City Manager Reviewed By: Julia Gautho, City Clerk
Approved By: Jamie Goldstein, City Manager
41 Item 7 C.
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ADMINISTRATIVE POLICY
Number:V-2
Issued: 9/26/02
Jurisdiction: City Council

PROGRAMMING POLICY AND OPERATIONAL PROCEDURES
FOR GOVERN1v.ffiNT CHANNEL 8
I. PURPOSE:
. /.

The Government Access Channel (GAC) is a Public, Educational, Governmental (P.E.G.) Access Channel as provided for under the Cable Communications Act of 1984, Section 531, and the cable franchise agreement with the licensed franchisee serving the City of Capitola. The. purpose of the GAC is for cablecasting government related televisions programs and is not intended for general public use.

II. GOALS & OBJECTIVES:

III.

IV.

The following goals & objectives of the City of Capitola Government Access Channel are:

A. Provide greater accessibility to and understanding of, City government by producing and distributing information about policies, procedures, resources, events, activities and services authorized by the City.

B. To widen the dissemination of policies and activities of the legislative and advisory bodies and boards of the City of Capitola and City-supported agencies. , . ....

C. To offer public information to the citizens about the various functions, services and programs performed by the various City Departments, boards and commissions . . D. Post information about various City departments and services using the City Scroll.

PROGRAMMING POLICY
It is the policy of the City of Capitola to provide direct, non-editorial information to the citizens of Capitola concerning the operations and deliberations of the City government.

Announcements for authorized municipal events or events directly or otherwise determined to be of significant municipal interest shall be allowed. Announcements for outside agencies shall generally not be permitted. Public Service Announcements for . community spirited not-for-profit organizations may be considered and are subject to review by the CityManager. The City Council shall serve as the final approval body for resolving disputes for policy matters.

ELIGIBLE USERS .

Eligible municipal access users who may submit video service requests, pre-produced programming or requests for City scroll time include:
42 Item 7 C.
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1 Administrative Policy
Programming and Operational Procedures for GAC
September 26, 2002

A. City of Capitola elected officials
B. City of Capitola boards and commissions upon approval of the board or commission C. City of Capitola special committees and task forces upon approval of the committee or task force.

D. City of Capitola department heads or their designee
E. Outside individuals or groups are not eligible unless sponsored by an eligible user· listed above. All programming requests must come from the eligible users listed above, that is consistent with the City of Capitola's goals and objectives, and are subject to the rules and regulations of this policy.

V. CONTENT GUIDELINES
A. Programming on the GAC shall be non-commercial and shall meet all applicable Federal, State and local laws.

B. The City of Capitola permits live cablecast coverage only of City Council and Planning Commission meetings, tape delayed cablecast of the aforementioned, preproduced programming and the City scroll.

C. Eligible programming includes promotion of City events and services, emergency information, election programming, public safety information, public service . announcements and programming produced by outside sources thatis consistent with the City of Capitola's goals and objectives.

D .. Fund-raising or solicitations for donations, including the selling of promotional items is only allowed for City controlled and authorized activities.

E. The names of sponsors of a video program or City event may only be shown at the end credits of a program. All sponsorships involving outside individuals or groups must be approved by the City CounciL .

F. No obscene, indecent, libelous, slanderous, or illegal material are allowed on the Government Access Channel.

G. City sponsored events may be promoted on the charinel.

H. NON-SECTARIAN PROGRAMl\.1ING: The channel will not cablecast any programming that promotes any particular religious group or belief . . 1. No materials designed to promote the sale of commercial products or services· including advertising by and / or on behalf of candidates for public office. 43 Item 7 C.

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Administrative Policy
Programming and Operational Procedures for GAC
September 26, 2002

J. The person submitting a program for cablecast is responsible for securing all rights and clearances from all persons as may be necessary to transmit its program material over the cable television system.

K The City reserves the right to edit programs, if necessary, and to add disclaimers to programming, if appropriate.

L. The City Council may at its discretion, review all denials for programming.

VI. Requests for City Scroll Time
VII.

A. The City Scroll is a graphic video bulletin board publicizing only City services, events, employment opportunities and announcements pertaining to the public. All City Scroll messages must meet channel content goals and objectives and all other applicable rules and policies of the City. Qualified municipal access users may submit a request.

B. Requests for scroll time (attachment 1) will be reviewed by the City Clerk for· eligibility. Requests that clearly meet the City of Capitola requirements will be scheduled for airing on the channel. .

C. Users who have a request rejected may appeal to the City Manager.

Requests for Air Time
A. Qualified municipal access users may submit pre-produced programming for consideration for airing on the GAC. All requests for air time must be submitted to the City Manager on a "Request for Airtime" form (attachment 1) and a minimum of 30 days prior to requested air date.

B. Requests for air time will be reviewed by the City Manager or his/her designee for eligibility. Requests that clearly meet the City of Capitola requirements will be scheduled for airing on the GAC.

C. Users who have a request rejectedmay appeal to the City Council. . D. Public meetings held in the Council Chambers by other governmental jurisdictions will not be covered live, or videotaped and aired unless authorized by the City . , Council in advance of the event, and if compensation is made to the City of Capitola for all expenses incurred for services provided. .

E. The City may at anytime cancel a scheduled program or change the airtime. When this happens, the City will make a reasonable effort to provide notice; however, the City reserves the right to cancel or reschedule programming without notice. 44 Item 7 C.
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Administrative Policy
Programming and Operational Procedures for GAC
September 26, 2002

VIII. Election Programming; The election programming policy of the City of Capitola shall be to provide direct non-editorial information to the citizens of Capitola concerning the operation and deliberation of local government. Information presented will be related to voter registration, deadlines for absentee ballots, reminders to vote on election day and actual texts of ballot measures~
DecIaredcandidates for any elective office and persons advocating any cause, viewpoint, or proposed policy of a partisan nature will not be eligible to appear on the GAC 90 days prior to an election or unless they appear incidentally as part of a public meeting, or acting as part of their regular duties when such actions do not involve partisan policies.

All candidates for City Council may place a one (1) time meeting announcement during the 90 days prior to the election on the City Scroll.

IX. Hours of Operation:

A. City Scroll: The City Scroll runs 7 days a week, 24 hours a day except when other programming material is airing.

B. Pre-produced Programming: Monday thru Friday, 8am to 8pm. Subject to the cable technicians availability, and Council & Planning commission meetings or as determined by the City Manager.

C. Live Programming: All City Council & Planning Commission Meetings at their regularly scheduled time.

X. . Use of Government Cable Channel Equipment: The use of the GAC video . equipment is restricted to City of Capitola authorized employees and other authorized . cable technicians as approved by the City of Capitola.

XI. Fee for Service: Outside individuals or groups who are sponsored are subject to fees.

Cablecasting of pre-produced programs and the City Scroll will be on a direct cost reimbursable basis, including reasonable charges for administrative costs and eguipment maintenance. For a current list of fees, see attachment 3.

This policy is approved and authorized by: ·tb-J··14
Richard Hill
City Manager
Attachments: 1.. City Scroll Request Form

2. Air Time Request Form

3. Current Fees

4. Waiver Form
RH:lgm
45 Item 7 C.

ATTACIDvIENTl
Request for Air Time: Government Access Television - City of Capitola Your Name
Your Dept.! Sponsor (if
required)
Address
City, State, Zip
Contact Phone Number
Email Address
Preferred Start Date
Preferred End Date
Preferred Start Time
. Program Title: _________________________ _
Program Summary
Program Length: hrs. min.

Time-Sensitive: (circle one)
No Yes
Complete this section if the program must be aired within a specific time frame to maintain its .. relevance. Describe time-sensitive nature and date restrictions .. . . .
. . Waiver Release Form: I have read and understand the waiver rele~seform, which I have ... signed and is attached to this application.

Your Signature: ________________ Date: __ ----.,-__
Sponsor Signature: __ .,--______ ---'-_____ Date: ____ _

FOR OFFICAL USE ONLY
I-=:J Approved D Not Approved ReasonforDenial. ______________ _ ~.

City Manager Signature:--,--_________ _
46 Item 7 C.
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-1
ATTACHNlENT2
Request for City Scroll ,
Government Access Television - City of Capitola
The Government Access Channel runs the City Scroll, which is a video bulleting board publicizing City services only, events, employment opportunities and announcements pertaining to the public. The Scroll runs twenty-four hours a day, seven days a week when other programming is , not scheduled. '
To submit your event, service, or announcement, you must fill in the application below. 8e sure to include your contact phone number and extension. We cannot guarantee that your announcement will air. We reserve the right to edit your announcement.

Your Name __________________________________________ __ Your Dept.!Organization
Address __________________________________________ __
City, State, Zip _____________________ _
Contact Phone Number ' _________________________________ --'--__ ----,-__ _ Email Address
Sponsor (if required)
Preferred Start Date
\ ) Preferred End Date
Note: If no stop date is indicated, the announcement will stop running 30 days from the date it is posted . . Enter your announcement. Include a headline, lines of information, and contact info.

Headline
Line 1
Line 2
Line 3
Line 4
'Contact Info
Your Signature: ____________________ ----,-___________ Date: ______ _ Sponsor Signature: _______________________ --'--____ Date: ______ _

FOR OFFICAL USE ONLY
D Approved D Not Approved' Reason for Denial ___ ----,-_____________________ _ ._} City Clerk Signature: __________ _
47 Item 7 C.

ATTACHMENT 3
/-~
-) CURRENT FEES (9/26/02)
Outside individuals or groups who are sponsored are subject to fees.

Preprogramming: $32.50 per hour, minimum of 3 hours.

City Scroll: $26.43 per hour, minimum of 1 hour.
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48 Item 7 C.
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ATTACHMENT 4

APPLICANT WAIVER FORM

1. I am thoroughly familiar with the content of the program material submitted for cablecast and agree that it complies with applicable federal and state statutes and regulations with regard to cable programming. The Program does not contain any material which is obscene; is intended to mislead or obtain money by false or fraudulent pretense; is related to any lottery or similar scheme offering prizes dependent upon chance; improperly invades the privacy of a citizen or puts someone in a false light; is libelous or slanderous; violates any copyright or trademark of any third party; contains any direct appeal for funds, support or property of value; promotes, endorses or refers to any business, service or product for which economic consideration was received; and/or designed or intended to promote the sale of commercial products, trade or services.

2. I have obtained all approvals, clearances, licenses, etc. which are needed for the Program. This includes, but is not limited to approvals by broadcast stations, networks, sponsors, music licensing organizations, copyright owners, performers' representatives, all persons appearing in or referred to in the Program material, and any other approvals that may be necessary to cablecast the Program.

3. I have paid, or will timely pay, all financial obligations (including residuals, union fees, license fees, etc.), owed to third parties in connection with the creation and cablecast of this Program.

4. - I understand that I am responsible for the content of the Program and ensuring that the Program can be legally distributed. If any legal liability of any kind is caused by distributing the Program, I understand that it is my liability, not the City of Capitola's, or anyone else associated with the distribution. I agree to indemnify and holdharmless The City of Capitola and their agents, employees and representatives from any and all liability and injury (including reasonable attorneys fees and costs incurred in defending claims and _potential claims, civil or criminal) arising from, or in connection with the Program, including but not limited to: alleged violations of laws, rules, regulations or other requirements of local, state and federal authorities; claims of libel, slander, invasion of privacy, or the infringement of common law or statutory \
. copyright; claims for unauthorized use of any trademark, trade name or service mark or the like; alleged breaches of contractual or other obligations owing to third parties and criminal charges or threatened criminal charges against Indemnitees or any of them. This provision is limited by City of Capitola's policy concerning liability for attorneys fees in connection with obscene or defamatory material. _ 5. I understand that false or misleading statements made on this application are grounds for forfeiture of the privilege to use access channel(s).

6. I have read and am thoroughly familiar with the rules and procedures for the use of . the City of Capitola's GAC and agree to abide by them. I hereby grant the City of Capitola permission to reproduce and transmit the Program at the City's discretion:
49 Item 7 C.
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7. I agree that any damage or loss to the program matter submitted by me even though due to negligence or other fault of the City of Capitola, its agents, employees, representatives and affiliates will only entitle me to a like amount of blank videotape~ Except for such replacement, the acceptance of videotape is without other warranty or liability and recovery for any incidental or consequential damages is excluded . ! understand that tapes left longer than 3 months will be recycled.

8. I understand that my contact information below will be made available to the public in connection with the Program.

I have read, understand and will abide by the above policies. I am over 18 years of age.

Signature: ___________________ _ Date: __ _
50 Item 7 C.
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I. PURPOSE

ADMINISTRATIVE POLICY
Use of Display Cases on the
Municipal Wharf Entrance Gate
Number: V-3
Issued: 11114/02
Jurisdiction: City Council
To establish a policy and procedure for the use of the two display cases on the entrance gate to the Capitola Municipal Wharf.

II. POLICY
The display cases on the both columns of the gate are primarily for the use of any and all business establishments leasing space from the City, on the Wharf, for the purpose of advertising their businesses, with the exception noted below. In case of any dispute on the use of space the City Manager shall be the final authority. All advertising must relate directly to the businesses on the Wharf and shall be in conformance with the Capitola City Municipal Codes and shall be approved by the City Manager's office. The business establishments shall be responsible for the development, maintenance, and updating of the material in this case, including all associated costs. No other signage will be allowed around the gate area, and all other signage on the Wharf must comply with City ordinances.

From time to time, the City Manager may notify the businesses of the need to use 33% of either or both display cases. The City Managers office must provide notice 10 working days in advance. The effected businesses will responsible for clearing the required portion of the case as needed by the City. Once the City's needs are complete the business may resume utilizing the entire display case.

Any use of the either display case other than designated above must first be approved by the City Council.

To receive approval for display, a written request must be submitted at least 30 prior to display and all items recommended in the request for display must be identified and specifically described.

III. RESPONSIBILITY
The City Mangers office shall be responsible for implementation of this policy.

This Policy is Approved and Authorized by:

Richard Hill
City Manager
51 Item 7 C.

Capitola City Council
Agenda Report
Meeting: February 12, 2026
From: City Manager Department
Subject: Name Change for City-Owned Parking Lots Located Near City Hall Recommended Action: Approve renaming the parking facilities currently known as “Beach and Village Parking Lots 1 & 2” to “City Upper Lot” and “City Lower Lot.” Background: On March 28, 2013, the City Council approved the project scope, construction plans, and financing for the Lower Pacific Cove Parking Lot Project. As the project neared completion, the City Council considered operating guidelines for the new facility, and the Traffic and Parking Commission (which has since disbanded at City Council recommendation), evaluated naming options for both the upper and lower Pacific Cove parking lots.

At its January 18, 2014, meeting, the Traffic and Parking Commission unanimously recommended renaming the Upper and Lower Pacific Cove Parking Lots to “Beach and Village Parking Lots 1 & 2,” with the upper lot designated as Lot 1 and the lower lot as Lot 2. The recommendation was intended to better identify the lots as serving beach and Village visitors and to support operational needs such as permit issuance and parking management. The City Council subsequently approved this naming convention.

Since that time, the lots have continued to function as important public parking facilities supporting access to City amenities, including the beach and Village area.

Discussion: While the original naming recommendation was intended to assist visitors by identifying the lots with their intended purpose, experience over time has demonstrated that the names “Beach” and “Village” create unintended confusion. The parking lots are not located directly adjacent to either the beach or the Village and visitors unfamiliar with the area frequently interpret the names as indicating immediate proximity.

Each summer since 2014, Junior Guard participants have been provided with parking permits for the Beach and Village Parking Lot 2. The change was intended to reduce mid-day pick-up and drop-off traffic in the Village. While the change improved traffic conditions, the confusing naming of the lots has now led to unintended consequences: permit holders are parking in higher-cost Village spaces, believing they are complying with the rules when they are not.

Confusion between the names of the City-owned lots behind City Hall and the location of public parking spaces in Capitola Village has resulted in recurring wayfinding challenges, visitor inquiries, incorrect assumptions regarding walking distance and accessibility, and “free” use of higher-priced Village parking spots by some permit holders. The current naming convention can lead to frustration for visitors and increased staff time spent providing clarification, especially during the summer months when the Junior Guards program is in session.

Renaming the lots to “City Upper Lot” and “City Lower Lot” would provide clear, neutral, and geographically accurate identifiers. The proposed names maintain the existing distinction between the two facilities while removing references that imply a specific destination. The use of “Upper” and “Lower” reflects the physical relationship between the lots and is consistent with commonly used internal and operational terminology. Staff does not propose utilizing the term “City Hall Parking Lot” as most people identify City Hall parking as the smaller lot adjacent to Capitola Ave.

The proposed change would not alter the operational purpose of the lots, their role in supporting beach and Village access, or existing parking management practices. Rather, the change would improve clarity and reduce confusion while maintaining continuity in parking operations. 52 Item 7 D.

Staff recommends that the City Council approve renaming Beach and Village Parking Lot 1 to City Upper Lot, and Beach and Village Parking Lot 2 to City Lower Lot, for the following reasons:
 Improves wayfinding and reduces visitor confusion.
 Aligns lot names with their actual geographic location.  Reduces staff time spent clarifying directions and parking locations.  Provides clear, neutral naming that remains applicable over time regardless of surrounding land use changes.

Staff has discussed this recommendation with leadership from Capitola Village and Wharf Business Improvement Area nonprofit, and they support the change.

Implementation would include updating signage, City maps, website references, permit materials, and coordination with digital mapping platforms. Approximately five existing signs would need to be replaced to reflect the new lot names. Sign replacement is anticipated to cost approximately $300 total and will be covered within the existing facilities budget. A brief public information effort is recommended to ensure a smooth transition and maintain public awareness of the change.

Fiscal Impact: None. Seasonal parking permits have not yet been printed (thus, we are not required to re-print at extra cost), and the cost to purchase updated parking lot signs is incorporated in the facilities budget.

Alignment with 2025-2029 Strategic Plan Priority: Accountable Government; Community Safety; Economic Opportunity; Healthy Families, Community, and Environment; Sustainable Infrastructure Report Prepared By: Chloé Woodmansee, Assistant to the City Manager Reviewed By: Julia Gautho, City Clerk
Approved By: Jamie Goldstein, City Manager
53 Item 7 D.

Capitola City Council
Agenda Report
Meeting: February 12, 2026
From: Public Works Department
Subject: 41st Avenue Pavement Rehabilitation and Multimodal Improvements Recommended Action: Approve the plans, specifications, and construction budget of $1,700,000 for the 41st Avenue Pavement Rehabilitation and Multimodal Improvements Project; and authorize the Department of Public Works to advertise for construction bids.

Background: 41st Avenue is a key regional corridor serving local neighborhoods, commercial areas, and access to State Route 1. The corridor is included in the City’s Pavement Management Program and has also been the focus of multimodal safety planning to improve conditions for people walking, biking, and driving.

In December 2023, the City was awarded $1 million through the Santa Cruz County Regional Transportation Commission’s Consolidated Regional Transportation Grant Program to support pavement rehabilitation and safety improvements along this corridor. In September 2024, the City Council approved a budget amendment allocating grant funds for design and permitting.

Because much of the project lies within the Caltrans right-of-way, the City was required to complete a Design Engineering Evaluation Report (DEER) and obtain a Caltrans Encroachment Permit. Design is now complete, Caltrans permits have been secured, and the project is ready to bid.

Discussion: Staff is requesting authorization to advertise the project for construction bids. The project will be bid using two scopes:

1. Base Bid – Construction work located entirely within Caltrans right-of-way.

2. Additive Alternate – The base bid scope plus pavement rehabilitation and minor striping improvements extending from Gross Road to Clares Street.

This bid structure allows the City to evaluate contractor pricing across the corridor in a single procurement and preserves flexibility at award without obligating the City to include the additive scope.

Construction is anticipated to occur primarily during nighttime hours to minimize impacts to traffic, businesses, and regional circulation along the corridor. Prior to construction, staff will conduct advance outreach to adjacent property owners and businesses to communicate the construction schedule, anticipated night work, and access considerations.

The broader 41st Avenue corridor planning effort is continuing as a separate, longer-term process being advanced outside of this construction project. The work proposed outside of Caltrans’ right-of-way under this bid is limited to pavement rehabilitation and minor striping adjustments and is intentionally designed so as not to preclude or conflict with potential future corridor improvements. These improvements would not require removal or rework if future changes are implemented as part of the corridor planning effort.

CEQA: The project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Sections 15301 (Class 1 – Existing Facilities), 15302 (Class 2 – Replacement or Reconstruction), and 15304 (Class 4 – Minor Alterations to Land). The project involves pavement rehabilitation, restriping, bicycle and pedestrian improvements, curb ramp reconstruction, and signage upgrades within existing public right-of-way and does not result in an expansion of roadway capacity or changes to existing land use. No healthy, mature, or scenic trees would be removed. The project does not meet any of the exceptions to categorical exemptions listed in CEQA Guidelines Section 15300.2. A Notice of Exemption has been prepared and filed for the project. 54 Item 8 A.

Fiscal Impact: The construction budget for the project is $1,700,000, which reflects the amount currently available for construction following completion of design, environmental clearance, and Caltrans permitting. The engineer’s estimate indicates that total construction costs could range from approximately $1.6 million to $2.1 million, depending on bid pricing and whether the additive alternate is included.

A total of $2,043,000 is budgeted for the project in FY 2025–26, which includes $1,000,000 in Santa Cruz County Regional Transportation Commission grant funding and $1,043,000 in local funds (State Route 1 funds and Measure D). Approximately $350,000 has been budgeted and expended to date for design, environmental clearance, Caltrans permitting, and pre-construction activities, leaving approximately $1.7 million available for construction.

If available funds are sufficient to construct the full project, staff will award the construction contract and proceed with outreach to affected businesses. If bid pricing exceeds available funding or other constraints arise, the project will be returned to the City Council for further direction.

Attachments:

1. Council Reference Plan Set (Selected Sheets)
Alignment with 2025-2029 Strategic Plan Priority: Community Safety; Sustainable Infrastructure Report Prepared By: Jessica Kahn, Public Works Director Reviewed By: Julia Gautho, City Clerk; Marc Tran, City Attorney Approved By: Jamie Goldstein, City Manager
55 Item 8 A.
11/19/2025
11/6/2025
01-22-26
January 22, 2026
56 Item 8 A.

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CA
AINRFOLI 1
CA
AI NRFOLI 1

CA NORTH SOUTH
NIA
LIFOR
CA 1
SOUTH
NORTH
57 Item 8 A.

SOUTH NORTH
NORTH
AI NROFILAC 1
AI NROFILAC 1
AI NR L OFI 1
CA
58 Item 8 A.

NIA
LIFOR
CA
1 59
Item 8 A.
60 Item 8 A.

NORTH
SOUTH
AI NRFOLI 1
CA
AINRFOLI 1
CA
AINRFOLI 1
CA
AI NRFOLI 1

CA NORTH SOUTH
61 Item 8 A.

SOUTH NORTH
NORTH
AI NROFILAC 1
AI NROFILAC 1
AI NR L OFI 1
CA
62 Item 8 A.
63 Item 8 A.
41st Avenue Pavement
Rehabilitation and
Multimodal
Improvements
City Council
February 12, 2026
64 Item 8 A.
•Key regional corridor serving neighborhoods,
businesses, and SR-1 access
•Identified in the PMP for heavy
rehabilitation
•Targeted for multimodal safety improvements
41st Avenue
•December 2023 – $1M RTC Grant awarded
•September 2024 – Design & permitting budget
approved
•Project reviewed with RTC TACs and City
Council (April 2025)
•Caltrans DEER completed, Encroachment Permit
secured
•Design complete; ready to bid
Funding & Status
Long-Term Development
Process Background
41st Avenue Improvements
65 Item 8 A.

Majority of work
within Caltrans
right-of-way
Includes segment
from Gross Road
to Clares Street
(add-alternate)
Critical
connection to SR1 southbound onramp
Primarily
pavement
rehabilitation
with targeted
safety upgrades
Long-Term Development
Process Project Limits
41st Avenue Improvements
66 Item 8 A.
• Failing pavement and trench repairs
• Faded striping and unclear wayfinding
• Bicycle conflicts near SR-1 access
Existing Conditions
• Restore pavement integrity
• Improve pedestrian and bicycle safety
• Clarify SR-1 lane guidance
• Minimize construction disruption
• Remain compatible with future corridor plans
Project Objectives
• Partial Depth Recycling (PDR)
• ADA curb ramp upgrades
• Striping refresh
Treatment Strategy
Long-Term Development
Process Conditions & Approach
41st Avenue Improvements
67 Item 8 A.
• Green conflict striping through transition areas
• Striping reflects Caltrans permitting limits
Intersection Safety Improvements
• ~3-second head start for pedestrians and
cyclists
• Reduces initial turning conflict
Leading Pedestrian Interval (LPI)
• FG 300 Interstate Grade Curb System
• Colored bases for visibility
• Delineators set at 30-inch height
• Placement maintains turning movements while
protecting cyclists
Separated Bikeway Protection
Long-Term Development
Process
Bicycle & Pedestrian Safety
Enhancements
41st Avenue Improvements
68 Item 8 A.

Full lane width Bike
transition striping
Bike Buffer with Delineator
on plastic curb
High Visibility
Crosswalks
69 Item 8 A.
70 Item 8 A.
• Advance pavement markings for SR-1 access
• Directional pavement arrows
Pavement markings
• Reinforces lane selection when pavement
markings are obscured
• All signage coordinated with Caltrans
Overhead signage
Long-Term Development
Process Wayfinding Improvements
41st Avenue Improvements
Wayfinding Pavement
Marking
71 Item 8 A.

Advance Pavement
Marking “SR-1”
Advance Pavement
Marking “Direction”
Wayfinding Sign on 41st
Ave
New Sign
72 Item 8 A.

Advance Pavement
Marking “SR-1”
Advance Pavement
Marking “Direction”
Wayfinding Sign
on Gross Rd
New Sign
73 Item 8 A.

Primarily nighttime work
Maintain business access
Advance outreach to adjacent
property owners
Coordination with Caltrans
for regional traffic impacts
Long-Term Development
Process Construction Approach
41st Avenue Improvements
74 Item 8 A.

Long-Term Development
Process Fiscal Impact
41st Avenue Improvements
Total Project Budget (FY
25–26) $2,043,000
RTC Grant $1,000,000
Local Funds (SB 1 + Measure
D) $1,043,000
Design & Pre-Construction
(expended) ~$350,000
Available for Construction ~$1,700,000
Engineer’s Estimate
(Construction) $1.6M – $2.1M
If bids exceed available funds, staff will
return for direction
75 Item 8 A.
• Base Bid Work entirely within
Caltrans right-of-way
• Additive Alternate Extends pavement
rehabilitation and striping from
Gross Road to Clares Street
Bid with two components
• Single procurement
• Allows full corridor pricing
comparison
• Preserves flexibility at award
• Does not obligate inclusion of
additive scope
Why This Structure?
Long-Term Development
Process Bid Structure
41st Avenue Improvements
76 Item 8 A.

Recommended
Action
Staff recommends Council:
• Approve plans and
specifications
• Approve construction budget
of $1,700,000
• Authorize Department of
Public Works to advertise
for construction bids
77 Item 8 A.

Capitola City Council
Agenda Report
Meeting: February 12, 2026
From: Administrative Services Department
Subject: Update on Measure Y Sales Tax
Recommended Action: Receive a report on Measure Y Sales Tax and provide staff with direction.

Background: Measure Y is a one-half percent sales tax that was passed by Capitola voters in November 2024, replacing Measure F, a one-quarter percent sales tax that was set to expire in December 2027. Per California Department of Tax and Fee Administration (CDTFA) procedures, Measure Y became effective on April 1, 2025, the 1st of the month at least 110 days following the certification of ballot results in December 2024, and sunsets in December 2035.

Measure Y receipts for the 4th quarter of Fiscal Year (FY) 2024-25 (April–June) totaled $574,709; of which, approximately $287,000 was new revenue and $287,000 replaced Measure F budgeted revenue.

During the mid-year budget review in February 2025, staff advised Council that Measure Y revenues for FY 2024-2025 were estimated at $277,000, with approximately $227,000 utilized for market adjustments to employee salaries that were contingent upon the passage of Measure Y.

As mentioned above, actual Measure Y revenue totaled $287,000 for FY 2024-2025, leaving $60,000 in new revenue in FY 2024-2025.

FY 2024-25 Bradley Burns 1% sales tax was approximately $151,000 below budget projections, and the $60,000 of additional Measure Y revenue partially offset this revenue shortfall.

Discussion: The adopted FY 2025-26 Budget included approximately $1.6 million increases to both revenues and expenditures above the prior year. Measure Y accounts for $1.1 million of the revenue increase, and personnel costs account for approximately $1.1 million of the increase in expenditures. The personnel cost increases are a result of a combination of negotiated salary adjustments (which were contingent on the passage of Measure Y), a higher than anticipated increase to the CalPERS UAL annual payment, negotiated cost-of-living adjustments (COLA’s), and regular salary step increases.

The table below is the Measure Y summary that was presented to the City Council during the public hearing at the May 29, 2025, budget workshop. A copy of the relevant presentation slides from that hearing is attached.

Item Amount Notes
Measure Y Estimated Revenue $1,122,140 $17,079 remaining Increase in Personnel Costs $1,105,061
One-time Equity Adjustment $347,720 Negotiated with labor groups 78 Item 8 B.

Benefit Increase $ 101,489 Negotiated with labor groups Cal PERS Unfunded UAL $ 343,262 $756,000 increase of last 2 FY’s Cost of Living Adjustment $312,590 Negotiated with labor groups To date, the City has received one full quarter of Measure Y revenues in FY 2025-26. First quarter (July-September) Measure Y revenues totaled $556,597, which was slightly below budget, while second quarter receipts to date total $353,369, slightly above prior year receipts. The City will receive the “true-up” payment for the second quarter (October-December) in late February.

Expenditures associated with the increased personnel costs are tracking on budget.

As a reminder, sales tax receipts are received from the CDTFA two months in arrears, meaning that the January receipt is for November sales tax revenue, and we will receive the December payment in late February. The first two payments each quarter are estimates based on prior year receipts and current year economic data. The third and largest payment each quarter is the trueup payment that provides actual revenue based on actual sales activity. Since this is the first full year of Measure Y being effective and there is no historical data, the Measure Y estimated payments are based on Measure F’s prior year activity.

In the past few fiscal years, the first quarter sales tax receipts have fluctuated more than has been seen in previous years. Staff recommends waiting until the second quarter receipts are in before making any budget amendments. Staff will provide the final second quarter Measure Y receipt data and recommendations, if any, during the mid-year budget review on February 26th.

Fiscal Impact: None
Attachments:

1. May 29, 2025, Budget Workshop Measure Y Slides
Alignment with 2025-2029 Strategic Plan Priority: Accountable Government Report Prepared By: Jim Malberg, Administrative Services Director Reviewed By: Julia Gautho, City Clerk; Marc Tran, City Attorney Approved By: Jamie Goldstein, City Manager
79 Item 8 B.

Measure Y Summary
Measure Y Estimated Revenue: $1,122,140Increase in Personnel Costs: $1,105,061 ◦ Personnel Costs: $449,209
◦ One-time Equity Adjustment: $347,720◦ Benefit increase: $101,489 ◦ CalPERS Unfunded Actuarial Liability (UAL) Increase: $343,262 ◦ Increase of $756,000 over last two fiscal years
◦ Cost of Living Adjustment (negotiated), step increases: $312,590 80 Item 8 B.
81 Item 8 B.

Measure Y
Sales Tax Update
City Council
Feb. 12, 2026
82 Item 8 B.

Background
Approved Nov 2024
• 67. 5% approval
Replaced Measure F
(one-quarter percent sales tax)
• $1.1 million annually
• Sunset Dec. 31, 2027
Effective Apr 1, 2025
(one-half percent sales tax)
• Additional $1.1 million annually
• Sunset Dec. 31, 2035
83 Item 8 B.
18,000,000
20,000,000
22,000,000
24,000,000
26,000,000 Ten Year Projection
Revenue Expenditures
Budget Forecast
$2 Million
Gap
FY 2025 Proposed FY 2026 Planned FY 2027 Forecast FY 2028 Forecast FY 2029 Forecast FY 2030 Forecast Revenue 19,229,066 19,761,838 20,257,304 20,134,596 19,997,928 20,477,768 Expenditures 19,185,566 19,708,435 20,353,218 21,051,107 21,889,456 22,376,566 Net Impact Fund
Balance 43,500 53,403 (95,914) (916,512) (1,891,528) (1,898,798) 84 Item 8 B.

What was Driving Budget Shortfalls?
• Measure F expiring
2027
• Rising pension costs
• Sales tax not keeping up
with inflation
85 Item 8 B.

PERS Retirement Costs
$2.8 million
POB PaidOff
PERS Forecast
Today 2030 PERS UAL payment is forecasted to be $3.6 million 86 Item 8 B.

Sales Tax
Today Sales Tax gap is $3.1 million
87 Item 8 B.

Based on Polling, New Measure to
Support
Majority of voters recognize the City’s need for additional funding  willing to maintain services through taxes
Top priorities for voters:
• Public safety response
• Roads, sidewalks, and bike lanes
• Beach and new Wharf
• Youth recreation programs
• Support for small businesses
88 Item 8 B.

Why a Sales Tax?
Projected fiscal
challenges
Measure F will
expire in 2027
Previous support
for tax measures
high
Less than 1/3 of
all sales tax paid
by City residents
Sales tax is a way
to balance tax
between visitors
and residents 89
Item 8 B.

Why a Sales Tax?
Beginning July 1, 2024, sales tax rates in the
County were:
• Capitola: 9.00%
• Santa Cruz: 9.75%
• Watsonville: 9.75%
• Scotts Valley: 9.75%
• Unincorporated Santa Cruz County: 9.50%
General fund tax to pay for essential City services
and infrastructure needs
90 Item 8 B.

General Revenue = Services
for the Community
• Public Safety & Community
Policing
• Capitola Beach, Roads &
Parks
• Newly Rebuilt Capitola Wharf
• Recreation & Youth
Programming
91 Item 8 B.

Voter Information
“The proposed 0.5% sales tax
will help Capitola sustain vital
services. Services such as
providing for our police and
workforce, enhancing public
safety and maintaining our
beautiful parks, beaches and
wharf, and improving our
streets, infrastructure, and
recreation programs. This
measure is also crucial for
securing nearly $8 million in
federal funding to stabilize
Cliff Drive against coastal
erosion”
92 Item 8 B.

Voter Information
93 Item 8 B.

If Measure Y Failed
Compensation adjustments negotiated in MOUs approved by City Council in June 2024 would not have taken effect
• Police Officer pay 6% and PW Crew 2% lower
• Monthly health care costs for all employees would rise $50 for employee only, $75 for employee plus one, and $100 for
employee plus family, each year compounding
• Other positions pay would decrease between 0 - 16.95% • No longer have parity in longevity pay between groups • Probable impacts to recruitment and retention
94 Item 8 B.

If Measure Y Failed
• City revenue and expenditures would be different
• City costs in 2025-26 would be $500,000 lower due to MOU negotiated changes not taking effect
• City Revenue in 2025-26 would be $1.1 million lower
• City would need to identify an additional $600,000 in service level reductions this FY
• Measure F expiring in FY 2027-28 would reduce revenue an additional $1.1 million
• Additional $1.1 million in service level reductions would have been needed
95 Item 8 B.

Measure Y Summary
Measure Y Estimated Revenue: $1,122,140
Increase in Personnel Costs: $1,105,061
◦ Personnel Costs: $449,209
◦ One-time Equity Adjustment: $347,720
◦ Benefit increase: $101,489
◦ CalPERS Unfunded Actuarial Liability (UAL) Increase: $343,262 ◦ Increase of $756,000 over last two fiscal years
◦ Cost of Living Adjustment (negotiated), step increases: $312,590 96 Item 8 B.
97 Item 8 B.

FY 2024-25 Receipts
Q4 receipts: $574,709
• $287k new revenue
• $287k replaced Measure F
FY 2024-25 mid-year budget review
• Est. $277k Measure Y (Apr. 1, 2025 – June 30, 2025)
• Effective Apr. 1, 2025, per CDTFA policy
• $227k salary market adjustments (Dec. 22, 2024 – June 30, 2025) • Negotiated effective 1st full pay period following certification of election Bradley-Burns 1% tax
• FY 24-25 $151k below budget
• Measure Y offset $60k 98
Item 8 B.

FY 2025-26 Year-to-Date
Measure Y Receipts
• $556,597 slightly below budget
First Quarter (July – Sept.)
• $353,369 – estimates for Oct. & Nov.
• Tracking slightly above budget
Second Quarter (Oct. – Dec.)
• Two months in arrears
• True-up quarterly
• 1
st two quarters have been volatile last few FY’s
CDTFA Payment Timing
99 Item 8 B.

Conclusion
Measure Y performing as expected
• Monitoring continues
2 nd quarter true-up
• Statement released Feb. 19, 2026
• Electronic payment Feb. 24, 2026
Mid-year budget review
• Feb. 26, 2026
• Budget amendment, if any, during mid-year review 100
Item 8 B.

Capitola City Council
Agenda Report
Meeting: February 12, 2026
From: Public Works Department
Subject: Measure Q Grant Application
Recommended Action: Authorize staff to submit a Tier 2 Measure Q Community Impact Grant application in an amount not to exceed $325,000 for invasive species removal, native habitat restoration, and interpretive signage improvements adjacent to the Park at Rispin Mansion along Soquel Creek.

Background: In November 2024, Santa Cruz County voters approved Measure Q to fund projects that improve water quality, reduce wildfire risk, protect wildlife habitat, and expand equitable access to parks and open space throughout Santa Cruz County. Grant awards are guided by the Measure Q Grant Guidelines and a Five-Year Vision Plan that identify priority actions, geographies, and outcomes for investment.

The Measure Q Grant Program includes two funding tiers. Tier 1 Community Catalyst Grants support smaller-scale stewardship, education, and pilot projects, while Tier 2 Community Impact Grants support more complex, multi-benefit projects that provide broader community or regional benefit.

The current Measure Q grant application period is open from January 26, 2026, through March 6, 2026, with awards anticipated in May 2026.

Discussion: The recently opened Park at Rispin Mansion is a publicly accessible park that includes landscaped areas, natural open space, and riparian habitat adjacent to Soquel Creek. The proposed improvements would benefit the Soquel Creek watershed, which flows directly adjacent to the park and supports riparian habitat and downstream water quality. Portions of the natural and riparian areas adjacent to the park are designated as an Environmentally Sensitive Habitat Area (ESHA) and are impacted by invasive plant species that degrade habitat quality and ecological function.

The City has previously invested in the Park at Rispin Mansion to establish public access and improve site conditions. In addition, the City has supported stewardship efforts at the site, including a volunteer invasive species removal event conducted in 2025. Building on this prior work, staff has identified invasive species management and habitat restoration adjacent to the park as a priority opportunity to protect sensitive resources and preserve prior public investment.

The proposed Measure Q grant application would fund:
 Removal of priority invasive plant species in natural and riparian areas adjacent to the Park at Rispin Mansion;
 Native habitat restoration and enhancement following invasive species removal; and  Installation of interpretive signage focused on habitat protection, watershed health, and stewardship.

All work would be designed and implemented consistent with applicable environmental regulations and ESHA requirements. As the project is scalable, the final scope would be refined based on the grant award amount and site conditions.

Given the ecological sensitivity of the site, the scale of work needed to achieve meaningful environmental benefit, and the opportunity to implement a coordinated restoration effort, staff recommends pursuing a Tier 2 Community Impact Grant.
101
Item 8 C.

Alternative Projects Considered
Other Council-priority park projects were evaluated for Measure Q eligibility and competitiveness.

Esplanade Park is scheduled to receive funding through a State Coastal Conservancy grant for planning and conceptual design work on Feb. 19, and staff is currently advancing that scope. Additional Measure Q funding would be more appropriate for a future implementation phase following completion of the planning effort.

The Monterey Park Playground Project is primarily recreational in nature and has not yet completed public outreach or project definition; therefore, not currently positioned to compete effectively under Measure Q’s environmental and habitat-focused evaluation criteria.

Staff recommends the Park at Rispin Mansion Project as the most grant-ready and competitive Measure Q application at this time.

Fiscal Impact: There is no fiscal impact associated with submitting the grant application. No match is required for Measure Q funding. If the grant is awarded, staff would return to Council with any required grant agreements, environmental compliance actions, or budget adjustments.

Attachments:

1. ESHA and Riparian Areas Map – Park at Rispin Mansion Alignment with 2025-2029 Strategic Plan Priority: Accountable Government; Healthy Families, Community, and Environment; Sustainable Infrastructure
Report Prepared By: Jessica Kahn, Public Works Director Reviewed By: Julia Gautho, City Clerk
Approved By: Jamie Goldstein, City Manager
102
Item 8 C.

Area 1
Area 2
Area 3
Rispin Property - Riparian Areas
103
Item 8 C.

Wharf Road
Capitola Avenue

BASEMAP

C I T Y O F C A P I T O L A
0 100 200 Feet
City Limit
ESHA
Coastal Bluff/Sea Cliff, Beach, and Tidelands
Escalona Gulch Monarch Butterfly Grove
Noble Gulch Riparian Corridor
Soquel Creek Monarch Butterfly Grove
Soquel Creek Riparian Corridor, Creek and Lagoon
Tannery Gulch Riparian Corridor
¬«1
104
Item 8 C.

Measure Q Grant
Application
City Council
February 12, 2026
105
Item 8 C.
• Measure Q funds projects that:
• Improve water quality
• Reduce wildfire risk
• Protect wildlife habitat
• Expand equitable access to parks
and open space
• Tier 2 Community Impact Grants
(>$50k) support larger-scale,
multi-benefit environmental
projects
Long-Term Development
Process Grant Overview
Measure Q Grant Application
106
Item 8 C.

Long-Term Development
Process Project Location
Measure Q Grant Application
Located along
Soquel Creek at
the Park at
Rispin Mansion Riparian
habitat
supports
wildlife and
watershed
health
Invasive plant
species impact
habitat quality
Project is
scalable based
on grant award
107
Item 8 C.
• Removal of priority invasive plant
species
• Native habitat restoration and
enhancement
• Interpretive signage
Proposed Grant Scope
• Comply with ESHA and environmental
regulations
• Be reviewed by a qualified biologist
• Include monitoring as needed
All work will
Long-Term Development
Process Proposed Scope
Measure Q Grant Application
108
Item 8 C.
• Advancing through State Coastal
Conservancy funding
• Potential Measure Q for future
implementation
Esplanade Park
• Primarily recreational in nature
• Not yet defined to be competitive
Monterey Park Playground
Long-Term Development
Process
Alternative Projects
Considered
Measure Q Grant Application
Rispin Project is the most grant-ready
and competitive Measure Q opportunity
at this time
109
Item 8 C.

No match required
No fiscal impact associated with
submitting application
If awarded, staff will return with
grant agreements and any necessary
budget adjustments
Long-Term Development
Process Fiscal Impact
Measure Q Grant Application
110
Item 8 C.

Recommended
Action
Authorize staff to
submit a Tier 2
Measure Q
Community Impact
Grant application
in an amount not
to exceed $325,000
for invasive
species removal,
native habitat
restoration, and
interpretive
signage
improvements
adjacent to the
Park at Rispin
111
Item 8 C.

Capitola City Council
Agenda Report
Meeting: February 12, 2026
From: City Manager Department
Subject: Housing for Health Partnership Board Appointment Recommended Action: Appoint the City of Capitola’s representative on the Santa Cruz County Housing for Health Partnership Policy Board for a two-year term expiring December 2027.

Background: Formerly known as the Homeless Action Partnership (HAP), the Housing for Health Partnership (H4HP) was formed in 2021 and serves as the federally-designated Continuum of Care (CoC) for Santa Cruz County and coordinates resources, programs and services focused on preventing and ending homelessness. Employees from the County of Santa Cruz Human Services Department Housing for Health Division provide staffing support for the H4HP.

The H4HP is a collaboration of five public jurisdictions in Santa Cruz County (the County and the cities of Santa Cruz, Watsonville, Capitola and Scotts Valley) along with housing and service providers, people with lived experience of homelessness and other stakeholders. HUD provides over $4 million per year to the Santa Cruz County community through the work of the H4HP. The H4HP also plays a role in receiving and coordinating other resources from federal and state government agencies.

The Housing for Health Partnership Policy Board (H4HP Board) acts as the governing board for the Santa Cruz County HUD-designated Continuum of Care, known as the Housing for Health Partnership. The Board is responsible for high-level planning and decision-making. It sets overall policy direction, provides system oversight, and delegates implementation, operational, and planning responsibilities to specific Operational Committees and Working Groups. The H4HP Board is responsible for aligning and developing resources, stakeholders, and collective wisdom across the greater Santa Cruz community to promote public health and make significant impacts on the crisis of homelessness, benefitting all residents, particularly those without homes.

Discussion: Pursuant to the Santa Cruz County Housing for Health partnership Governance Charter, Board membership consists of 15 community leaders and stakeholders who represent different entities and constituencies. Capitola and Scotts Valley share a board seat on a rotating basis for two-year terms.

This seat was filled by Scotts Valley for the last two years and it is now Capitola’s turn to appoint a representative for a two-year term (2026-2027). This seat may be filled by an elected official, government staff, or other citizen. The Board is mostly comprised of elected officials, city staff members, public health staff, and those with lived experience. The H4HP Board meets every two months, with the next meeting scheduled for February 9, 2026.

Staff recommends the Council either: 1) appoint a City Council Member to represent Capitola on the Policy Board; or 2) appoint a staff member to represent Capitola on the Policy Board.

Fiscal Impact: None
Alignment with 2025-2029 Strategic Plan Priority: Collaborative Engagement, Dynamic Innovations, Fiscal Sustainability, Resilient Community, Respectful Service Report Prepared By: Rosie Wyatt, Deputy City Clerk
Reviewed By: Julia Gautho, City Clerk
Approved By: Jamie Goldstein, City Manager
112
Item 8 D.

CAPITOLA REPRESENTATIVE ON THE

HOUSING FOR HEALTH PARTNERSHIP

POLICY BOARD
February 12, 2026 113
Item 8 D.

Background
 Formed in 2021 and serves as federally-designated
Continuum of Care (CoC) for Santa Cruz County
 Collaboration of 5 public agencies
 County of Santa Cruz
 Cities of Capitola, Scotts Valley, Watsonville, and Santa Cruz
 Policy Board acts as the governing board
 15 community leaders and stakeholders who represent
different entities and constituencies
 Scotts Valley and Capitola share seat
114
Item 8 D.

Meeting Schedule
 Meetings in Capitola Community Room
 Meetings every other month
 Next meeting April 20 at 11 AM
115
Item 8 D.

Recommended Action
Staff recommends the Council either: 1) appoint
a City Council Member to represent Capitola on
the Policy Board; or 2) appoint a staff member
to represent Capitola on the Policy Board.
116
Item 8 D.

Capitola City Council
Agenda Report
Meeting: February 12, 2026
From: City Manager Department
Subject: Finance Advisory Committee Composition
Recommended Action: Review City Council appointments to the Finance Advisory Committee.

Background: The Finance Advisory Committee (FAC) was originally established in 2000 and advises the City Council on financial matters pertaining to the governing of the City, as well as on the use of fiscal resources.

FAC Bylaws (Resolution No. 4365) state that the FAC is composed of seven or eight members: the Mayor, the Vice Mayor, three at-large members appointed by the City Council, and one or two business representatives recommended by the Chamber of Commerce and appointed by the City Council. If the Mayor or Vice Mayor do not wish to serve, another Council Member can take their place.

On December 11, 2025, the City Council conducted its annual reorganization, naming Margaux Morgan as Mayor and Gerry Jensen as Vice Mayor.

Discussion: The current composition of the FAC is below. Due to the City Council reorganization, staff recommends reviewing the FAC composition to either: 1) affirm that the current composition can continue, or 2) make a motion to change the composition to include the current Mayor/Vice Mayor.

Name Date Appointed Term Expires
Mayor Margaux Morgan 2/13/2025 12/31/2026
Council Member Susan
Westman
6/12/2025 12/31/2026
Emeline Nguyen 1/30/2025 12/31/2026
Keith Cahalen 1/30/2025 12/31/2026
Anthony Rovai 1/30/2025 12/31/2026
Leslie Nielsen 1/30/2025 12/31/2026
Matt Arthur 1/30/2025 12/31/2026
Fiscal Impact: There is no fiscal impact associated with this action.

Alignment with 2025-2029 Strategic Plan Priority: Accountable Government Report Prepared By: Julia Gautho, City Clerk
Approved By: Jamie Goldstein, City Manager
117
Item 8 E.

FINANCE ADVISORY COMMITTEE

COMPOSITION
February 12, 2026 118
Item 8 E.

Background
 FAC composed of 7 or 8 members:
 Mayor,
 Vice Mayor,
 3 at-large members appointed by the City Council,
 1 or 2 business representatives recommended by
Chamber of Commerce and appointed by City Council.
 If Mayor or Vice Mayor do not wish to serve,
another Council Member can take their place.
 Last Council reorganization 12/11/2025
119
Item 8 E.

Current Composition
Name Date Appointed Term Expires
Mayor Margaux Morgan 2/13/2025 12/31/2026
Council Member Susan
Westman
6/12/2025 12/31/2026
Emeline Nguyen 1/30/2025 12/31/2026
Keith Cahalen 1/30/2025 12/31/2026
Anthony Rovai 1/30/2025 12/31/2026
Leslie Nielsen 1/30/2025 12/31/2026
Matt Arthur 1/30/2025 12/31/2026
120
Item 8 E.

Recommended Action
Due to City Council reorganization, staff
recommends reviewing FAC composition to either:
1) affirm the current composition can continue, or
2) make a motion to change composition to
include current Mayor/Vice Mayor.
121
Item 8 E.