Agenda packet — Santa Cruz City Council, January 25, 2022 (part 1 of 4)

CITY OF SANTA CRUZ
809 Center Street
Santa Cruz, California 95060

CITY COUNCIL AGENDA
Regular Meeting – January 25, 2022
Updated January 24, 2022
1:00 P.M. CLOSED SESSION, ZOOM
2:00 P.M. CONSENT, GENERAL BUSINESS AND ADVISORY BODY APPOINTMENTS, ZOOM
6:00 P.M. ORAL COMMUNICATIONS AND GENERAL BUSINESS, ZOOM COVID-19 ANNOUNCEMENT: Due to the Omicron variant, in an abundance of caution, this meeting will be held via teleconference ONLY.

In order to minimize exposure to COVID-19 and to comply with the social distancing suggestion, the meeting may be viewed remotely, using any of the following sources:
 Click on Zoom link (no time delay): https://zoom.us/j/94684401344  Online at http://www.cityofsantacruz.com/government/city-council/council-meetings  Online at Watch – Community Television of Santa Cruz County  Comcast Channel 25
Or: Call any of the numbers below. If one is busy, try the next one.  1-833-548-0276 (Toll Free)
 1-833-548-0282 (Toll Free)
 1-877-853-5247 (Toll Free)
 1-669-900-9128
Enter the meeting ID number: 946 8440 1344
 When prompted for a Participant ID, press #.
 Press *9 on your phone to “raise your hand” when the Mayor calls for public comment.  It will be your turn to speak when the Mayor calls on you. Press *6 to unmute yourself.

The timer will then be set to 2 minutes.

Correspondence to be included in the agenda packet must be received by 5:00 pm on Monday, January 24th.

January 25, 2022 City Council 2
PLEASE NOTE:

Requests for extra speaking time on items other than Oral Communications must be made by 5:00 p.m. on Sunday, January 23rd by emailing the Mayor and the City Clerk. Approval will be confirmed via email.
[email protected] [email protected]
The City of Santa Cruz does not discriminate against persons with disabilities. Out of consideration for people with chemical sensitivities we ask that you attend fragrance free. Upon request, the agenda can be provided in a format to accommodate special needs. Additionally, if you wish to attend this public meeting and will require assistance such as an interpreter for American Sign Language, Spanish, or other special equipment, please call the City Clerk’s Department at 420-5030 at least five days in advance so that we can arrange for such special assistance, or email [email protected]. The Cal-Relay system number: 1-800-735-2922.

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 420-5030 al menos cinco días antes para que podamos coordinar dicha asistencia especial o envié un correo electrónico a [email protected]. El número del sistema Cal-Relay es: 1-800-735-2922.

Closed Session
1:00 PM
Closed Session

1. Conference with Labor Negotiators (Government Code §54957.6) Employee Organizations:
a) Fire IAFF Local 1716
b) Fire Management Association
c) OE3 Mid-manager and Supervisor Employees
d) SEIU Local 521
e) Unrepresented
City Negotiator – Lisa Murphy

2. Conference with Legal Counsel – Anticipated Litigation (Government Code §54956.9(d)(4))
Initiation of litigation – (1 potential case to be discussed)

3. Conference with Legal Counsel - Existing Litigation (Government Code §54956.9(d)(1))
Kessner, Bonnie, et al. v. City of Santa Clara, et al.
(Santa Clara County Superior Court Case No. 20CV364054) January 25, 2022 City Council 3
City Council
2:00 PM
Call to Order
Roll Call
Presiding Officer's Announcements
Statements of Disqualification
Additions and Deletions
Oral Communications Announcement – Community members may address the Council for two minutes or less about any matter not on the agenda. 30 minutes is allocated for Oral Communications. No extra time for groups will be granted.

City Attorney Report on Closed Session
Council Meeting Calendar

4. The City Council will review the meeting calendar attached to the agenda and revise it as necessary.

Council Memberships in City Groups and Outside Agencies

5. The Presiding Officer will provide Councilmembers with the opportunity to update Council on any external committee meetings that occurred since the last Council meeting.

January 25, 2022 City Council 4
Consent Agenda

6. Minutes of the January 11, 2022 City Council Meeting (CC) Motion to accept as submitted.

7. Minutes of the January 18, 2022 City Council Study Session (CC) Motion to accept as submitted.

8. Minutes of the January 18, 2022 City Council Special Meeting (CC) Motion to accept as submitted.

The below item is removed from the agenda and will not be discussed.

9. Support for Santa Cruz County Regional Transportation Commission Placing Ballot Measure Related to Public Transit on the Rail Line (CN) Motion to direct the Mayor to send a letter to the Santa Cruz County Regional Transportation Commission (RTC) supporting the RTC placing an advisory measure on the June 2022 County ballot to gauge public support for retaining the option of public transit on the County’s rail line and preserving the railroad tracks.

10. Resolution Establishing the 2022 Security Deposit Interest Rate for Residential Rental Property (ED)
Resolution establishing the 2022 interest rate for the residential security deposits at 0.01% and rescinding Resolution No. NS-29,771.

11. Accept Library Naming Rights Gift Agreement for the Allison Endert Memorial Children's Room at the Branciforte Branch Library (LB) Motion to accept the Library Naming Rights Gift Agreement for the Allison Endert Memorial Children's Room at the Branciforte Branch Library.

January 25, 2022 City Council 5
Consent Agenda (continued)

12. Bay Drive Storm Damage Repair Project (c401507) – Notice of Completion (PW)
Motion to accept the work of American Enviro Services, Inc. (Bakersfield, CA) as completed per the plans and specifications and authorize the filing of the Notice of Completion for Bay Drive Storm Damage Repair Project (c401507).

13. Neary Lagoon Tule and Sediment Removal Project (m409688) – Notice of Completion (PW)
Motion to accept the work of McNabb Construction, Inc. (Lafayette, CA) as completed per plans and specifications and authorize the filing of the Notice of Completion for the Neary Lagoon Tule and Sediment Removal Project (m409688).

14. Water Street Signal Interconnect Conduit Project (c401602) - Advertise for Bids and Award Contract (PW)
Motion to approve the plans and specifications for the Water Street Signal Interconnect Conduit Project (c401602) and authorize staff to advertise for bids and award the contract. The City Manager is hereby authorized and directed to execute the contract, in a form approved by the City Attorney. The Public Works Director is authorized to execute change orders within the approved budget.

15. Ratification of First Amendment to Agreement for Water Meter Box Lids with M&M Backflow & Meter Maintenance (WT)
Motion to ratify the First Amendment to Agreement for Water Meter Box Lids with M&M Backflow & Meter Maintenance in the amount of $254,323.30, and to authorize the Water Director to execute future contract amendments within the approved budget.

End Consent Agenda
January 25, 2022 City Council 6
General Business

16. Establishment of Sister City Relationship Between Biarritz, France and the City of Santa Cruz (PR)
Resolution establishing Biarritz, France as a Sister City of the City of Santa Cruz.

17. Downtown Recovery Programs Update and Resolution (ED) Motion to:
1) Accept a report on the status of Downtown Recovery program activities.
2) Adopt a resolution authorizing the temporary extension of commercial use permit abandonment period in connection with the COVID-19 pandemic.

18. Re-Envision Santa Cruz - Interim Recovery Plan Update (CM) Motion to accept the City’s most recent quarterly progress reports on Re-Envision Santa Cruz, a 12-18 month interim recovery plan, and provide feedback as desired.

19. Ordinance Repealing Chapter 16.03 (Plumbing Fixture Retrofit Regulations) of the Santa Cruz Municipal Code (WT)
Introduce for publication an ordinance to repeal Chapter 16.03 (Plumbing Fixture Retrofit Regulations) of the Santa Cruz Municipal Code.

Advisory Body Appointments or Reappointments

20. Arts Commission (CC)
Appoint one Arts Commissioner with a term expiring on January 31, 2023, and appoint or reappoint an Arts Commissioner with a term expiring on January 31, 2026.

January 25, 2022 City Council 7
Advisory Body Appointments or Reappointments (continued)

21. Board of Building and Fire Appeals (CC)
Appoint one member to the Board of Building and Fire Appeals.

22. Commission for the Prevention of Violence Against Women (CC) Motion to approve Councilmember Kalantari-Johnson's nomination to the Commission for the Prevention of Violence Against Women.

23. Downtown Commission (CC)
Appoint two Downtown Commissioners.

24. Historic Preservation Commission (CC)
Appoint and/or reappoint two Historic Preservation Commissioners.

25. Parks and Recreation Commission (CC)
Appoint and/or reappoint two Parks and Recreation Commissioners.

26. Planning Commission (CC)
Appoint two Planning Commissioners.

27. Sister Cities Committee (CC)
Appoint and/or reappoint three Sister Cities Committee Members with terms expiring on January 31, 2026.

28. Water Commission (CC)
Appoint two Water Commissioners.

Recess - The City Council will recess to the 6:00 p.m. session.

January 25, 2022 City Council 8
City Council
6:00 PM
Call to Order
Roll Call
Oral Communications
Public Hearing

29. 130 Center Street: CP21-0011 (APN 007-023-26) – Appeal of the Planning Commission’s Approval of a Nonresidential Demolition Authorization Permit to Demolish an Existing Commercial Building; a Density Bonus Request to Exceed Height and Reduce Setbacks; and a Special Use Permit, Coastal Permit, and Design Permit to Construct a Six-story, Mixed-use Building with 233 Single Room Occupancy (SRO) Units and 2,356 sq. ft. of Ground Floor Commercial Space on a Parcel Located in the RTC/CZ-O/FP-O (Tourist Residential Beach Commercial/Coastal Zone Overlay/Floodplain Overlay) Zoning Districts and Beach and South of Laurel Area Plan. (Owner: Green Valley Corporation) (PL)
Resolution to deny the appeal and uphold the Planning Commission’s acknowledgment of the environmental determination and approval of the Nonresidential Demolition Authorization Permit, Density Bonus Request, Special Use Permit, Coastal Permit, and Design Permit based on the findings listed in the draft resolution and the Conditions of Approval attached as Exhibit “A.”
Adjournment
January 25, 2022 City Council 9

INFORMATION ITEMS PREVIOUSLY DISTRIBUTED TO CITY COUNCILMEMBERS None Issued.

MAYOR'S PROCLAMATIONS
None Issued.

Public Hearing
If, in the future, you wish to challenge in court any of the matters on this agenda for which a public hearing is to be conducted, you may be limited to raising only those issues which you (or someone else) raised orally at the public hearing or in written correspondence received by the City at or before the hearing.

Any person seeking to challenge a City Council decision made as a result of a proceeding in which, by law, a hearing is required to be given, evidence is required to be taken, and the discretion in the determination of facts is vested in the City Council, shall be required to commence that action either 60 days or 90 days following the date on which the decision becomes final as provided in Code of Civil Procedure Section 1094.6 Please refer to code of Civil Procedure 1094.6 to determine how to calculate when a decision becomes “final.” The 60-day rule applies to all public hearings conducted pursuant to the City’s Zoning Ordinance, Title 24, Santa Cruz Municipal Code. The 90-day rule applies to all other public hearings.

City Council Agenda Legislative History Addendum
No information was submitted.

City staff is responsible for providing the City Clerk with such documentation and information for the Legislative History Addendum. The information will be on file in the City Clerk’s Department.

The Addendum is a listing of information specific to City Council business, but which does not appear on a Council meeting agenda. Such entities would include, but not be limited to: Court decisions, Coastal Commission Appeals of City Council actions, Closed Session Agreements/Settlements, which are public record, Association of Monterey Bay Area Governments, Local Agency Formation Commission.

Meeting Type
Holiday
Jewish Holiday
Regular Meeting
Special Meeting
Study Session (will be added as scheduled)
Budget Hearing
DATE Location Meeting Type
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public February 21
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public April 15/16
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public May 24 and 25 Council Chambers Budget Hearings
May 30
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public July 4
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public September 5
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public September 25/26
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public October 4/5
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public City Council Meeting Calendar for 2022
June 28
September 13
September 27
February 8
City Hall Closure - Presidents' Day
February 22
Please note: Meeting times are not final and are likely to change City Hall Closure - Independence Day
June 14
March 8
March 22
May 10
Passover (City observed - sundown to sundown)
April 12
April 26
May 24
City Hall Closure - Memorial Day
City Hall Closure - Labor Day
August 23
July 12 and 26 Meetings Cancelled - CITY COUNCIL DARK
August 9
Yom Kippur (City observed - sundown to sundown)
Rosh Hashanah (City observed - sundown to sundown)
November 8
October 11
October 25

4.1 Meeting Type
Holiday
Jewish Holiday
Regular Meeting
Special Meeting
Study Session (will be added as scheduled)
Budget Hearing
DATE Location Meeting Type
City Council Meeting Calendar for 2022
Please note: Meeting times are not final and are likely to change November 11
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public November 24
November 25
December 18/19
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public December 25
November 22
December 13
City Hall Closure - Thanksgiving Day
City Hall Closure - Day After Thanksgiving Day
December 27 Meeting Cancelled - CITY COUNCIL DARK
City Hall Closure - Christmas Day
Hanukkah (City observed - sundown to sundown)
City Hall Closure - Veteran's Day (observed)

4.2 Council Membership in City Groups and Outside Agencies (2022) Councilmembers may provide direction, request additional information or that a topic raised be agendized for future Council action. The Presiding Officer may request oral updates from Council Ad Hoc Committees.

City Council Standing Committees Councilmember

Assigned Staff
Community Programs Watkins, Brown, Kalantari-Johnson Tiffany Wise-West Public Safety Watkins, Golder, Cummings Sara De Leon
City Council Ad Hoc Committees Councilmember Assigned Staff Council Ad Hoc Revenue Committee Brown, Watkins, Brunner Laura Schmidt Oversized Vehicles Ordinance Ad Hoc Committee Golder, Kalantari-Johnson, Brunner Brian Borguno Charter Amendment Committee Meyers, Golder, Watkins Casey Hemard Health in All Policies Committee Brunner, Kalantari-Johnson, Watkins Tiffany Wise-West External Governmental Agencies/ Intergovernmental
Coordinating Committees Councilmember Assigned Staff
Association of Monterey Bay Area Governments
(AMBAG)
Cummings, Brown (alternate) Lee Butler
City–Santa Cruz City Schools Committee Watkins, Golder, Kalantari-Johnson Tony Elliot City Select Committee Brunner Matt Huffaker
Library Financing Authority Brunner, Watkins (alternate) Matt Huffaker Homelessness 2x2 Committee Watkins, Brunner Lee Butler
Monterey Bay Air Resources District (City Nominee) Brown Tiffany Wise-West Central Coast Community Energy Policy Board
Central Coast Community Energy Operations Board

Meyers, Brunner (alternate)
Mark Dettle, Tiffany Wise-West (alternate)
Mark Dettle
Santa Cruz County Integrated Waste Management Local
Task Force
Golder, Cummings (alternate)
Bob Nelson, Leslie
O’Malley (staff
alternate)
Santa Cruz County Consolidated Redevelopment
Successor Agency Oversight Board
Meyers Bonnie Lipscomb
Santa Cruz Metropolitan Transit District Board (METRO) Meyers, Kalantari-Johnson Claire Gallogly Santa Cruz County Regional Transportation
Commission (RTC)
Brown, Golder (alternate) Nathan Nguyen
Claire Gallogly
(alternate)
Santa Cruz Mid-County Groundwater Agency Councilmember Meyers, Water Commissioner David Baskin, Water Commissioner Doug Engfer (alternate)
Rosemary Menard

5.1 External Governmental Agencies/ Intergovernmental
Coordinating Committees Councilmember Assigned Staff
Santa Margarita Groundwater Agency Water Commissioner Doug Engfer, Former Water Commissioner David Baskin (citizen alternate)
Rosemary Menard
Local Agency Formation Commission (LAFCO)
(Santa Cruz holds the City Seat through May 2022)
Cummings Matt Huffaker
Joint Powers Authorities/City Groups Staff Appointments Agency Contact Information Santa Cruz County Animal Services
Authority
Laura Schmidt, Bernie Escalante Santa Cruz County Animal Services Authority 2200 7th Avenue
Santa Cruz, CA 95062
https://www.scanimalshelter.org/
Santa Cruz Public Libraries Matt Huffaker Santa Cruz Public Libraries 117 Union Street
Santa Cruz, CA 95060
https://www.santacruzpl.org/
Santa Cruz Regional 9-1-1 Laura Schmidt Santa Cruz Regional 9-1-1 495 Upper Park Rd.

Santa Cruz, CA 95065
(831) 471-1000
External Community Organizations Councilmember/Staff Agency Contact Information Area Agency on Aging (AAA) Advisory
Council
Brown, Brunner (Council alternate), Rita
Hester (citizen alternate)
Seniors Council, Clay Kempf
234 Santa Cruz Ave.

Aptos, CA 95003
Phone: (831) 688-0400
Climate Action Task Force Cummings, Dr. Tiffany Wise-West (staff) Dr. Tiffany Wise-West [email protected]
Cowell Working Group Meyers, Tony Elliot (staff) CWG Facilitated by Save the Waves Criminal Justice Council Cummings, Kalantari-Johnson (alternate), Bernie Escalante
Criminal Justice Council of Santa Cruz County
[email protected]
Downtown Management Corporation Meyers, Cummings, Bonnie Lipscomb (staff) Downtown Management Corporation [email protected]
337 Locust Street,
Santa Cruz, CA 95060
Santa Cruz County Youth Action Network
Kalantari-Johnson
[email protected]
United Way of Santa Cruz County
4450 Capitola Rd, Ste 106
Capitola, CA 95010
Santa Cruz Community Farmers’ Market Watkins, Brunner (alternate) Bonnie Lipscomb (staff)
Mr. Nesh Dillon Executive Director SCCFM
P.O. Box 8189
Santa Cruz, CA 95061
Visit Santa Cruz County Watkins, Brunner, Bonnie Lipscomb (staff) Visit Santa Cruz County 303 Water Street, Suite 100
Santa Cruz, CA 95060
800-833-3494 or 831-425-1234
Community Action Board (CAB) Kalantari-Johnson, Eve Bertram, UCSC Professor (alternate)
Community Action Board of Santa Cruz
County, Inc.
406 Main St. STE 207
Watsonville, CA 95076
831-763-2147

5.2 MINUTES ARE UNOFFICIAL UNTIL APPROVED BY COUNCIL
City of Santa Cruz
809 Center Street
Santa Cruz, California 95060

MINUTES OF A CITY COUNCIL MEETING
January 11, 2022
2:00 PM
Mayor Brunner opened the City Council Closed Session at 2:01 p.m. in a public meeting via Zoom, for the purpose of announcing the agenda, and receiving public testimony.

Roll Call

Present: Councilmembers Kalantari-Johnson (via Zoom), Golder (via Zoom), Cummings (via Zoom), Brown (via Zoom); Vice Mayor Watkins (via Zoom); Mayor Brunner (via Zoom).

Absent: Councilmember Meyers.

Staff: City Manager M. Huffaker (via Zoom), Assistant City Manager L. Schmidt (via Zoom), City Attorney T. Condotti (via Zoom), Interim Finance Director B. Magee (via Zoom), Deputy City Clerk Administrator J. Wood, City Clerk Administrator B. Bush (via Zoom).

Public Comment
Mayor Brunner opened the public comment period at 2:03 p.m. There were no speakers. Mayor Brunner closed the public comment period at 2:03 p.m.

6.1 January 11, 2022 CITY COUNCIL MINUTES 5925
Closed Session

2. Conference With Legal Counsel – Liability Claims (Government Code §54956.95) 1) Claimant: Destiney Mckayla Rodgers
2) Claimant: Susan O'Hara
Claims against the City of Santa Cruz
At this time, the meeting was closed to the public. (See page 5927 for a report on Closed Session.)

6.2 January 11, 2022 CITY COUNCIL MINUTES 5926
City of Santa Cruz
809 Center Street
Santa Cruz, California 95060

MINUTES OF A CITY COUNCIL MEETING
January 11, 2022
3:00 PM
Call to Order – Mayor Brunner called the meeting to order at 3:37 p.m. via Zoom.

Roll Call

Present: Councilmembers Kalantari-Johnson (via Zoom), Golder (via Zoom), Cummings (via Zoom), Brown (via Zoom); Vice Mayor Watkins (via Zoom); Mayor Brunner (via Zoom).

Absent: Councilmember Meyers.

Staff: City Manager M. Huffaker (via Zoom), Assistant City Manager L. Schmidt (via Zoom), City Attorney T. Condotti (via Zoom), Director of Public Works M. Dettle (via Zoom), Interim Chief of Police B. Escalante (via Zoom), Deputy City Manager and Director of Planning and Community Development, and Homelessness Response L. Butler (via Zoom), Interim Finance Director B. Magee (via Zoom), Director of Economic Development B. Lipscomb (via Zoom), Director of Information Technology K. Morgan (via Zoom), Water Director R. Menard (via Zoom), Director of Parks and Recreation T. Elliot (via Zoom), Library Director Y.

Wilburn (via Zoom), Acting Interim Fire Chief R. Young (via Zoom), Homelessness Response Manager L. Imwalle (via Zoom), Principal Planner M. VanHua (via Zoom), Deputy City Clerk Administrator J. Wood, City Clerk Administrator B. Bush (via Zoom).

Presiding Officer's Announcements
Statements of Disqualification – None.

Additions and Deletions – None.

Oral Communications Announcement - The Mayor provided a brief announcement about Oral Communications.

6.3 January 11, 2022 CITY COUNCIL MINUTES 5927
City Attorney Report on Closed Session
Conference with Labor Negotiators (Government Code §54957.6) Employee Organizations:
a) Fire IAFF Local 1716
b) Fire Management Association
c) OE3 Mid-manager and Supervisor Employees
d) SEIU Local 521
e) Unrepresented
City Negotiator – Lisa Murphy
Council received a status report from the City Negotiator, and took no reportable action.

Conference With Legal Counsel – Liability Claims (Government Code §54956.95) 1) Claimant: Destiney Mckayla Rodgers
2) Claimant: Susan O'Hara
Claims against the City of Santa Cruz
Council received a status report, took up under agenda item 10, and took no reportable action.

City Manager Report

3. The City Manager will report and provide updates on the City's business and events, COVID-19 response, and homelessness.

City Manager M. Huffaker provided an update on the COVID-19 global pandemic, and called on Homelessness Response Manager L. Imwalle to provide updates on homelessness and responded to Councilmember questions.

Council Meeting Calendar

4. The City Council reviewed and did not revise the meeting calendar attached to the agenda.

6.4 January 11, 2022 CITY COUNCIL MINUTES 5928
Consent Agenda
City Manager M. Huffaker responded to Councilmember Brown’s questions regarding item 12 and will follow up.

Director of Public Works M. Dettle responded to Councilmember Cummings’ questions regarding item 13.

Mayor Brunner opened the public comment period. The following person spoke via teleconference:

Janine Roth spoke regarding item 13.

Mayor Brunner closed the public comment period.

MOTION: Councilmember Brown moved, seconded by Councilmember Cummings, to approve the Consent Agenda.

ACTION: The motion carried with the following vote.

AYES: Councilmembers Kalantari-Johnson, Golder, Cummings, Brown (with the exception of item 10); Vice Mayor Watkins; Mayor Brunner.

NOES: Councilmember Brown (item 10).

ABSENT: Councilmember Meyers.

DISQUALIFIED: None.

5. Resolution Amending Council Policy 1.3: Risk Management Policy (CA) Resolution No. NS-29,914 was adopted amending Council Policy 1.3 granting the Risk Manager authority to settle liability claims, including claims that have proceeded to litigation for personal or property damages only.

6. Resolution Authorizing the City to Continue Teleconferenced Public Meetings Pursuant to Assembly Bill 361 (CA)
Resolution No. NS-29,915 was adopted authorizing legislative bodies of the City of Santa Cruz to continue the use of teleconferenced meetings pursuant to Assembly Bill 361.

7. Minutes of the December 14, 2021 City Council Meeting (CC) Motion carried to approve as submitted.

6.5 January 11, 2022 CITY COUNCIL MINUTES 5929
Consent Agenda (continued)

8. California Coastal Commission Local Coastal Program Local Assistance Grant Program - Grant Acceptance, Authorization and Appropriation (CM) Resolution No. NS-29,916 was adopted authorizing the City Manager to apply for, accept, and appropriate funds from the California Coastal Commission Local Coastal Program Local Assistance Grant Program for the Santa Cruz Coastal Adaptation Monitoring Program development.

9. Appointment of Representatives to External Agencies, Groups, Council Committees and Task Forces (CN)
Motion carried to appoint representatives to external agencies, groups, City Council committees and task forces for the 2022 calendar year.

10. Liability Claims Filed Against City of Santa Cruz (FN) Motion carried to reject the liability claims of a) Destiney Mckayla Rodgers and b) Susan O’Hara, based on staff recommendation.

11. Lease with Redtree Partners for Space at 1200 Pacific Avenue for Occupancy by the City’s Finance Department (FN)
Motion carried to:
 Adopt Resolution No. NS-29,917 amending the FY 2022 budget to increase appropriation for a new building lease for relocation of the Finance Department.
 Authorize and direct the City Manager to execute a Lease Agreement with Redtree Partners, and any amendments thereto of a non-substantive nature, in a form acceptable to the City Attorney, for premises located at 1200 Pacific Avenue to serve as office space for the Finance Department.

12. Accept Library Naming Rights Gift Agreements for the Branciforte and Garfield Park Branch Libraries (LB)
Motion carried to accept the Library Naming Rights Gift Agreements for the Branciforte and Garfield Park Branch Libraries.

6.6 January 11, 2022 CITY COUNCIL MINUTES 5930
Consent Agenda (continued)

13. Purchase of Six-Gallon Food Scrap Containers (PW)
Motion carried to award a contract for the purchase of six-gallon food scrap containers from Ecovision Environmental (Ontario, Canada) in the amount of $225,000 from the Refuse Fund.

14. Trevethan Avenue Storm/Sewer Project – Phase I (c401307, c401810) – Authorization to Advertise and Award (PW)
Motion carried to approve the plans and specifications for the Trevethan Avenue Storm/Sewer Project – Phase I (c401307, c401810), authorize staff to advertise for bids, and award the contract. The City Manager is hereby authorized and directed to execute the contract in a form approved by the City Attorney. The Director of Public Works is authorized to execute change orders within the approved project budget.

15. Carbonera II Pump Station Replacement (m401601) – Notice of Completion (PW)
Motion carried to accept the work of S.W. Construction, Inc. (Bakersfield, CA) and authorize the filing of the Notice of Completion for the Carbonera II Pump Station Replacement Project (m401601).

16. Intergovernmental Agreements between the San Lorenzo Valley Water District and the City of Santa Cruz Related to the City’s Water Rights Petitions and the District’s Contractual Right to 313.4 Acre Feet per Year of Loch Lomond Water (WT)
Motion carried to approve two agreements between the San Lorenzo Valley Water District (District) and the City of Santa Cruz (City), the first, resolving the District’s water rights protest to the City’s proposed water rights changes and extensions, and the second committing the parties to work collaboratively together to develop an operating plan for the District to make use of its contractual right to 313.4 acre feet of water per year (afy) from Loch Lomond.

The City Manager is hereby authorized and directed to execute these agreements in a form approved by the City Attorney.

6.7 January 11, 2022 CITY COUNCIL MINUTES 5931
Consent Agenda (continued)

17. Resolution Transferring Funds within the Water Enterprise Funds to Meet FY 2022 Financial Targets – Budget Adjustment (WT)
Resolution No. NS-29,918 was adopted transferring $2,000,000 to the Water Operations Fund (Fund 711), $1,300,000 to the Water 90–Day Fund (Fund 716) and $520,000 to Water – Emergency Reserve Fund (Fund 717) from the Water Rate Stabilization Fund (Fund 713).

End Consent Agenda
General Business

18. State of California 2021 Land Use and Housing Legislation Update (PL) Deputy City Manager and Director of Planning and Community Development, and Homelessness Response L. Butler introduced the item and responded to Councilmember questions.

Principal Planner M. VanHua gave a presentation and responded to Councilmember questions.

Mayor Brunner opened the public comment period. The following people spoke.

SPEAKING VIA TELECONFERENCE:

Unidentified person
Rafa Sonnenfeld
Mayor Brunner closed the public comment period.

MOTION: Councilmember Cummings moved, seconded by Councilmember Kalantari-Johnson, to accept the State of California 2021 land use and housing legislation update agenda report.

ACTION: The motion carried with the following vote.

AYES: Councilmembers Kalantari-Johnson, Golder, Cummings, Brown; Vice Mayor Watkins; Mayor Brunner.

NOES: None.

ABSENT: Councilmember Meyers.

DISQUALIFIED: None.

6.8 January 11, 2022 CITY COUNCIL MINUTES 5932
Oral Communications
At 5:29 p.m. Mayor Brunner opened Oral Communications for members of the public who wished to speak regarding items not listed on the City Council agenda.

Atricia spoke regarding the homeless encampments in parks.

Unidentified person spoke regarding the Black Lives Matter movement.

At 5:33 p.m. Mayor Brunner closed Oral Communications.

Adjournment - The City Council adjourned at 5:33 p.m.

Respectfully Submitted:

Julia Wood, Deputy City Clerk Administrator
Attest:

Bonnie Bush, City Clerk Administrator
Approved:

Sonja Brunner, Mayor

6.9 MINUTES ARE UNOFFICIAL UNTIL APPROVED BY COUNCIL
City of Santa Cruz
809 Center Street
Santa Cruz, California 95060

MINUTES OF A CITY COUNCIL STUDY SESSION
January 18, 2022
4:00 PM
Call to Order – Mayor Brunner called the meeting to order at 4:01 p.m. via Zoom.

Roll Call

Present: Councilmembers Kalantari-Johnson (via Zoom), Golder (arrived at 4:07 p.m. via Zoom), Cummings (via Zoom), Brown (via Zoom), Meyers (via Zoom); Vice Mayor Watkins (via Zoom); Mayor Brunner (via Zoom).

Absent: None.

Staff: City Manager M. Huffaker (via Zoom), Assistant City Manager L. Schmidt (via Zoom), Deputy City Attorney C. Bronson (via Zoom), Interim Finance Director B. Magee (via Zoom), Deputy City Manager, and Director of Planning and Community Development, and Homelessness Response L.

Butler (via Zoom), Director of Public Works M. Dettle (via Zoom), Water Director R. Menard (via Zoom), Director of Parks and Recreation T.

Elliott (via Zoom), Director of Information Technology K. Morgan (via Zoom), Acting Interim Fire Chief R. Young (via Zoom), Sustainability and Climate Action Manager T. Wise-West (via Zoom), Deputy City Clerk Administrator J. Wood, City Clerk Administrator B. Bush (via Zoom).

General Business

1. Climate Action Plan 2030 – Target Setting Study Session (CM) Sustainability and Climate Action Manager T. Wise-West gave a presentation and responded to Councilmember questions.

Director of Public Works M. Dettle responded to Councilmember questions.

Mayor Brunner opened the public comment period. The following people spoke.

SPEAKING VIA TELECONFERENCE:

Megan Clemens
Pauline Seales

7.1 January 18, 2022 CITY COUNCIL STUDY SESSION MINUTES 5934 General Business (continued)

1. Climate Action Plan 2030 – Target Setting Study Session (CM) (continued) SPEAKING VIA TELECONFERENCE (continued):

Unidentified person
Peter Bichier
Unidentified person
Unidentified person
Beverly Dechaux
Kristen Liske
Mayor Brunner closed the public comment period.

Adjournment - The City Council adjourned at 6:04 p.m.

Respectfully Submitted:

Julia Wood, Deputy City Clerk Administrator
Attest:

Bonnie Bush, City Clerk Administrator
Approved:

Sonja Brunner, Mayor

7.2 MINUTES ARE UNOFFICIAL UNTIL APPROVED BY COUNCIL
City of Santa Cruz
809 Center Street
Santa Cruz, California 95060

MINUTES OF A CITY COUNCIL SPECIAL MEETING
January 18, 2022
7:00 PM
Call to Order – Mayor Brunner called the meeting to order at 7:01 p.m. via Zoom.

Roll Call

Present: Councilmembers Kalantari-Johnson (via Zoom), Golder (via Zoom), Cummings (via Zoom), Brown (via Zoom), Meyers (via Zoom); Vice Mayor Watkins (via Zoom); Mayor Brunner (via Zoom).

Absent: None.

Staff: City Manager M. Huffaker (via Zoom), Deputy City Clerk Administrator J. Wood, City Clerk Administrator B. Bush (via Zoom).

General Business

1. Advisory Body Interviews
Mayor Brunner opened the public comment period. There were no speakers.

Mayor Brunner closed the public comment period.

The following applicants addressed Council:

Elizabeth Birnbaum, seeking reappointment to the Arts Commission.

Everett Ó Cillín, applying for the Arts Commission.

Vivian Vargas, applying for the Arts Commission.

Rachel Kippen, applying for the Commission for the Prevention of Violence Against Women.

Emma Ledvina, applying for the Commission for the Prevention of Violence Against Women.

Carolyn Kelley, applying for the Downtown Commission.

8.1 January 18, 2022 CITY COUNCIL SPECIAL MEETING MINUTES 5936 General Business (continued)

1. Advisory Body Interviews (continued)
Jennalee Dahlen, applying for the Downtown Commission.

Rafa Sonnenfeld, applying for the Downtown Commission and the Planning Commission.

Don Lauritson, seeking reappointment to the Historic Preservation Commission.

Joe Michalak, seeking reappointment to the Historic Preservation Commission.

Jane Mio, seeking reappointment to the Parks and Recreation Commission.

Jacob Pollock, applying for the Parks and Recreation Commission.

Elizabeth Conlan, applying for the Planning Commission.

Candice Elliot, applying for the Planning Commission.

Pete Kennedy, applying for the Planning Commission and the Water Commission.

Philip Mekis, applying for the Planning Commission.

Mark Mesiti-Miller, applying for the Planning Commission.

Daniel Nelson, applying for the Planning Commission.

Charles Prograce, applying for the Planning Commission.

Sarah Wikle, applying for the Planning Commission.

Shawn Williams, applying for the Planning Commission.

Andrei Kiktev, seeking reappointment to the Sister Cities Committee.

James Mekis, applying for the Water Commission.

Garrett Roffe, applying for the Water Commission.

Adjournment - The City Council adjourned at 8:26 p.m.

8.2 January 18, 2022 CITY COUNCIL SPECIAL MEETING MINUTES 5937 Respectfully Submitted:

Julia Wood, Deputy City Clerk Administrator
Attest:

Bonnie Bush, City Clerk Administrator
Approved:

Sonja Brunner, Mayor

8.3 City Council

AGENDA REPORT
DATE: 01/13/2022
AGENDA OF: 01/25/2022
DEPARTMENT: City Council
SUBJECT: Support for Santa Cruz County Regional Transportation Commission Placing Ballot Measure Related to Public Transit on the Rail Line (CN) RECOMMENDATION: Motion to direct the Mayor to send a letter to the Santa Cruz County Regional Transportation Commission (RTC) supporting the RTC placing an advisory measure on the June 2022 County ballot to gauge public support for retaining the option of public transit on the County’s rail line and preserving the railroad tracks.

BACKGROUND: The Monterey Bay Sanctuary Scenic Trail Network (Coastal Rail Trail) has been a priority for the City of Santa Cruz for more than a decade. During that time, the City has consistently supported the preservation of the option of rail transit along the rail corridor as envisioned in the Monterey Bay Sanctuary Scenic Trail Network Final Master Plan.

Last month a local non-profit organization, Santa Cruz County Greenway (Greenway), submitted signatures to the Santa Cruz County Clerk in support of a ballot measure that would change policies laid out in the Santa Cruz County General Plan related to the use of the rail corridor in the County. The initiative would amend the County’s General Plan, making the Greenway proposal the official County policy and would effectively eliminate the option of both rail and trail along the Coastal Rail Trail.

DISCUSSION: In light of these developments, it is critical that the RTC place an advisory measure on the June 2022 ballot which would simply ask the electorate if they favor retaining the option of passenger rail service on the rail corridor and preserving the rail line.

The initiative proposed by Santa Cruz County Greenway defines the Greenway as follows: “As used in this General Plan, “Greenway” shall mean a trail between the San Lorenzo Bridge in the City of Santa Cruz and Lee Road in the City of Watsonville for commuting, active transportation, and recreation by pedestrians, bicycles, wheelchairs, e-bikes, skateboards, and personal e-mobility that includes two lanes of wheeled traffic on a paved path, a divider, and a separate walkway for pedestrians, with a shoulder on both sides.” However, given the width of the rail corridor, the only way to build a trail meeting these specifications would be to remove the railroad tracks.

In addition, while the initiative states that the Greenway would be an interim use, it deletes every reference to rail service, rail planning, and rail line maintenance from the General Plan.

9.1 The language in the Greenway initiative is confusing and contradictory. As a result, community members may vote in favor of the initiative thinking that they are supporting future rail service on the line. Alternatively, community members may vote in favor of the same language in the initiative believing they are supporting the permanent removal of the tracks. The lack of clarity in the language makes it difficult to determine the will of the public.

In order to obtain a clear sense of the public’s intent, the RTC should place an advisory measure on the June ballot regarding the option of public transit and rail service along the rail corridor to determine if a majority of the voters want to retain the railroad tracks and the option of rail service.

This City Council has gone on record a number of times supporting passenger rail service on the corridor. While the Greenway initiative can be perceived as a mixed and confusing message, an RTC advisory measure could help send a clear and straightforward message regarding rail options, to ensure the public can make an informed decision in their vote. Accordingly, it is recommended that the Mayor send a letter on behalf of the City Council urging the RTC to place this measure on the June ballot.

FISCAL IMPACT: None.

Submitted By:

Sandy Brown
Councilmember
Submitted By:

Justin Cummings
Councilmember
Submitted By:

Sonja Brunner
Mayor
ATTACHMENTS:

None.

9.2 City Council

AGENDA REPORT
DATE: 01/12/2022
AGENDA OF: 01/25/2022
DEPARTMENT: Economic Development
SUBJECT: Resolution Establishing the 2022 Security Deposit Interest Rate for Residential Rental Property (ED)
RECOMMENDATION: Resolution establishing the 2022 interest rate for the residential security deposits at 0.01% and rescinding Resolution No. NS-29,771.

BACKGROUND: Santa Cruz Municipal Code (SCMC) Chapter 21.02 requires that residential renters be paid interest on any security deposit totaling more than $50 held by the landlord. The section further stipulates that the Santa Cruz County Treasurer-Tax Collector annually sets a recommended interest rate for security deposits, which is then adopted by the Santa Cruz County Board of Supervisors. The City Council, by resolution, then adopts that security deposit interest rate for the following year in order to maintain consistency with other jurisdictions within the County.

In early 2013, the City Council amended SCMC Section 21.02.040 to include a subsection permitting landlords to pay tenants’ security deposit interest at the earlier of the following: 1) the termination of tenancy or 2) at the next February occurring after accrued interest reaches fifty dollars ($50.00). In the case that the termination of tenancy occurs before accrued interest reaches fifty dollars, the tenant shall be entitled to a direct payment of the accrued security deposit interest no later than twenty-one (21) days after the tenant has vacated the premises. In the case that the accrued interest reaches fifty dollars before the termination of tenancy, the landlord shall, without demand, pay the tenant the accrued security deposit interest in the form of either a draft payment or a credit against the tenant’s rent (the landlord shall choose between the two methods of payment).

DISCUSSION: In November 2021 the Santa Cruz County Treasurer-Tax Collector conducted a survey of interest paid on savings accounts under $5,000 by six major banking and savings and loan institutions in order to establish the recommended interest rate to be paid on security deposits in 2021. The average interest rate was determined to be 0.01%. The County Board of Supervisors subsequently adopted Resolution No. 314-2021 on December 7, 2021, setting the interest rate at that level effective January 1, 2022.

In accordance with past practices, it is recommended that the 2022 interest rate with the City of Santa Cruz be adjusted retroactive to January 1, 2022 to 0.01%.

10.1 Health in All Policies (HiAP): In terms of assessing this item with respect to the three pillars of Health in All Policies, this action has a direct nexus with equity in that all households renting residential units in the City, including disadvantaged community members, that may be required to provide a security deposit of more than fifty dollars as part of their lease are covered under this section of the municipal code and are entitled to interest on their security deposit as outlined in the code. This resolution will enable the City to provide residential landlords and tenants Citywide with the information regarding the current interest rate.

FISCAL IMPACT: None.

Prepared By:

Jessica Mellor
Management Analyst
Submitted By:

Bonnie Lipscomb
Director of Economic
Development
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

10.2 RESOLUTION NO. NSRESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ

ESTABLISHING THE INTEREST RATE FOR RESIDENTIAL SECURITY DEPOSITS AT 0.01% FOR 2022 AND RESCINDING RESOLUTION NO. NS-29,771 WHEREAS, the City of Santa Cruz adopted Ordinance No. 97-10 on December 9, 1997 amending Chapter 21.02 of the Santa Cruz Municipal Code in order to facilitate uniform regulations throughout the County of Santa Cruz for the payment of interest on residential security deposits; and WHEREAS, Section 21.02.010 requires that the interest rate payable by landlords to tenants on residential security deposits be established from time to time by resolution based on the recommendation of the Santa Cruz County Treasurer-Tax Collector; and WHEREAS, the current rate of interest is 0.01%; and
WHEREAS, in November 2021 the County Treasurer-Tax Collector determined that the average interest rate to be charged in 2022 would be 0.01%, which was duly adopted by the Santa Cruz County Board of Supervisors on December 7, 2021.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz that it hereby rescinds Resolution No. NS-29,771and establishes the interest rate for residential security deposits at 0.01% retroactive to January 1, 2022.

PASSED AND ADOPTED this 25th day of January, 2022, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________
Sonja Brunner, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator

10.3 City Council

AGENDA REPORT
DATE: 01/14/2022
AGENDA OF: 01/25/2022
DEPARTMENT: Library
SUBJECT: Accept Library Naming Rights Gift Agreement for the Allison Endert Memorial Children's Room at the Branciforte Branch Library (LB) RECOMMENDATION: Motion to accept the Library Naming Rights Gift Agreement for the Allison Endert Memorial Children's Room at the Branciforte Branch Library.

BACKGROUND: Recognizing the serious civic challenge of an aging system, county voters in 2016 passed Measure S, a major bond measure to fund critical repairs and upgrades “to support a steady increase in library usage and bring all 10 branches up to 21st century standards.” While this made it possible to begin work on important vision-inspired upgrades, including facility repairs, renovations, and replacements, it did not fully cover the cost of certain essential branch amenities, services, and resources.

Separate capital campaigns for two branches, Capitola and Felton, complemented Measure S funding to help underwrite and complete celebrated new branch facilities. At four other branches, Boulder Creek, La Selva Beach, Live Oak, and Scotts Valley, major renovations are now underway or completed, funded by Measure S together with additional, charitable support.

Now, Measure S-funded major renovations and capital improvements are beginning at three branches—Aptos, Branciforte, and Garfield Park—that will transform these facilities. But important elements of these renovations that their communities seek are beyond the scope of Measure S. Additional funding is therefore required to close the gap between Measure S and community aspirations—to realize the full promise of excellence in library capabilities and character that these communities envision.

DISCUSSION: The Friends of the Santa Cruz Library have fundraised to enhance the Measure S library building projects. Donors who have gifted funds for particular building projects will in exchange receive naming rights within the facility listed below.

Branciforte
$115,000 for the children’s room “Allison Endert Memorial Children’s Room”, in the Branciforte Branch Library.

This naming right will remain in place for the normal life of the Branciforte Library Branch building, or twenty (20) years, whichever is less, and is subject to the JPA (Joint Powers Authority) Board Policy #403, adopted in March 2017.

11.1 FISCAL IMPACT: The amount fundraised, totaling $115,000, is earmarked for the Branciforte Branch Library. The monies will be used to enhance the Measure S funded projects and will be managed by the Library in consultation with the City of Santa Cruz.

Prepared By:

Kira Henifin
Principal Management
Analyst
Submitted By:

Yolande Wilburn
Director of Libraries
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. LIBRARY NAMING POLICY #403.DOCX

2. GIFT AGREEMENT.PDF

11.2 1
Library Naming Policy JPAB Policy # 403
Adopted: 3/2/2017
Revised: xx/xx/xxxx
Five-year Review Schedule: 2022

1. Purpose
This policy establishes the authority and process for philanthropic naming or re-naming of Santa Cruz Public Libraries interior and exterior spaces and features, major programs, and collections associated with specific branches. Philanthropic naming opportunities provide the Library with funds to meet strategic objectives.

2. Library Names
The Santa Cruz Public Libraries (the Library) name each branch according to their geographic location in the county, in order to identify each branch with either the neighborhood where it is located or the neighborhood that it primarily serves. This practice allows library users to easily determine the general location of a library facility they want to visit. Member jurisdictions may determine it appropriate to allow the Library building to be included in a naming policy.

3. Naming Criteria
Santa Cruz Public Libraries interior and exterior spaces and features, major programs, and a collection associated with a specific branch may be named in honor of an individual, family, or entity. Naming or re-naming rights is the purview of the local jurisdictions (City of Capitola, City of Scotts Valley, City of Santa Cruz, and County of Santa Cruz) subject to review by the Library Joint Powers Authority Board (JPAB) consistent with this policy.

Naming opportunity is provided only to those that exemplify the attributes of integrity, civic leadership, and deep commitment to the Library and community, specifically where:
a) the proposed honoree reflects the spirit, values, and mission of the Library in support of free and equal access to information for all.
b) an individual has provided extraordinary service and support to the Library system. c) an individual donor has made a significant monetary contribution to the Library. d) an entity’s financial sponsorship has allowed the Library to significantly advance the provision of programs, services, or collections.

4. Naming Process
Each jurisdiction shall develop, propose, and maintain a list of Naming Opportunities.

The JPAB shall review each jurisdiction’s naming plan to ensure that residents have a unified library experience as they visit branches across jurisdictions, and that the plan is consistent with this policy.

11.3 2
The JPAB shall review each jurisdiction’s naming policy to ensure the plan:
a) is appropriately consistent with other approved naming plans. b) does not overly commercialize the library space.
c) includes clear time limits outlined below.
d) reserves the right to reject any naming proposal or donation from any individual, family, or entity.

Naming rights shall not extend beyond the normal life of any interior or exterior space or feature, major program, or collection associated with a specific branch, or twenty (20) years, whichever is less. In the event that a named Library interior or exterior space or feature, major program, or collection is significantly altered within (a) 75% of the expected lifespan, or (b) a timeframe agreed upon in the naming rights contract, the JPA jurisdiction will carry the name forward in a similar capacity. A jurisdiction’s naming plan may include longer timelines for significant donations, subject to approval by the JPAB.

Naming rights contracts shall be reviewed and approved by the appropriate JPA jurisdiction and reported to the JPAB.

5. Naming Revocation
Any naming opportunity authorized by a JPAB jurisdiction can be revoked only by a vote of that body.

If an individual, family, or entity for whom a naming commitment has been made violates the standards defined in section three (3. Naming Criteria) of this policy, the JPAB may recommend the removal of the individual, family, or entity’s name from the naming opportunity, interior or exterior space or feature, major program, or collection associated with a specific branch.

Before taking such action, the JPAB jurisdiction shall undertake due diligence, including consultation with counsel, as to any legal ramifications that the jurisdiction may expect under any pre-existing agreement(s) related to naming opportunities or in regard to any other matter that may have legal bearing upon a proposed change in name.

Where unforeseen circumstances make it impossible for a donor to complete a monetary donation commitment after associated name placement has occurred, the JPAB shall make reasonable efforts to work with the donor to create a plan for completion of the commitment. However, in certain circumstances it may be necessary and in the best interests of the Library to remove the donor’s name choice from the naming opportunity.

11.4 11.5
City Council

AGENDA REPORT
DATE: 01/13/2022
AGENDA OF: 01/25/2022
DEPARTMENT: Public Works
SUBJECT: Bay Drive Storm Damage Repair Project (c401507) – Notice of Completion (PW)
RECOMMENDATION: Motion to accept the work of American Enviro Services, Inc. (Bakersfield, CA) as completed per the plans and specifications and authorize the filing of the Notice of Completion for Bay Drive Storm Damage Repair Project (c401507).

BACKGROUND: Over the course of the past few years, a portion of the Bay Drive Walkway path has successively been undermined and eroded. Bay Drive was potentially at risk with additional erosion. While the path was still open during work, temporary safety measures were put in place by the Parks and Recreation Department. This project redirected the creek away from the eroded bank and rebuilt and stabilized the bank and repair the path.

At its May 11, 2021 meeting, City Council approved the Bay Drive Storm Damage Repair Project and authorized staff to advertise for bids and award the contract.

On August 25, 2021, the project was awarded to the lowest responsive and responsible bidder American Enviro Services, Inc. (Bakersfield, CA) in the amount of $140,784.36.

The project involved earthwork to relocate the existing channel, reconstruction of the eroded slope, vegetation planting, erosion control, and paving this portion of the path with asphalt concrete.

DISCUSSION: The work for this project is now complete. The project has been inspected by Public Works staff and found to be constructed in accordance with the plans and specifications.

FISCAL IMPACT: The project was completed with a total cost of $220,013.82 and is fully funded from the General Capital Improvement Fund in the FY 2021 Capital Investment Program (CIP).

Prepared By:

Miguel Lizarraga
Associate Professional
Engineer
Submitted By:

Mark R. Dettle
Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. NOTICE OF COMPLETION.DOCX

12.1 Notice of Completion
(Space above for Recorder’s use only)
This instrument is being recorded for the benefit of the City of Santa Cruz.

No recording fee is required pursuant to Government Code § 27383.

NOTICE OF COMPLETION
PURSUANT TO CALIFORNIA CIVIL CODE SECTIONS 8102 AND 9204, NOTICE IS HEREBY GIVEN THAT:

The undersigned is an authorized representative of the owner of the interest or estate stated below.

1. The Owner’s Name and Address. The Project owner is the City of Santa Cruz, a municipal corporation (the “City”).

The City’s mailing address is 809 Center Street, Santa Cruz, California 95060. The City of Santa Cruz has the following interest in the subject Property described below: City Right-Of-Way

2. Title of Project. The full name of the work of improvement/public works project (the “Project”) which is the subject of this Notice of Completion is: Bay Drive Storm Damage Repair Project

3. Project Number: C401507

4. The Property site location description or address (the “Property”) on which the Project was constructed is located in the City of Santa Cruz, County of Santa Cruz, State of California at: Bay Drive Walkway on the Bay Street median between Escalona Dive and Nobel Drive.

5. Date of Completion. The Project on the Property was completed on: November 15, 2021

6. Name of Contractor. The name of the Contractor on the Project is: American Enviro Services, Inc.

7. Address of Contractor. The address of the Contractor on the Project is: 15513 Chateau Montelena Drive, Bakersfield, CA 93314.

8. Nature of Work Performed on the Property or Materials Furnished for the City. The Project consisted of work described as: This project involved earthwork to relocate the existing channel, reconstruction of the eroded slope, vegetation planting, erosion control, and paving this portion of the path with asphalt concrete.

9. The filing of this Notice of Completion was authorized by the Santa Cruz City Council Minute Order on Tuesday, January 25, 2022
DATED:

Mark R. Dettle
Public Works Director, as Owner’s Authorized Agent
City of Santa Cruz
RECORDED AT THE REQUEST OF:

City of Santa Cruz, Public Works
Attn: Miguel Lizarraga
WHEN RECORDED MAIL TO:

City Clerk’s Department
809 Center Street, Room 9
Santa Cruz, CA 95060

12.2 Notice of Completion

VERIFICATION FOR THE CITY OF SANTA CRUZ
The undersigned, being duly sworn, says:

That I am the City Manager (or his/her official designee) of the City of Santa Cruz, a municipal corporation in the State of California. I have read the attached Notice of Completion and know and understand its contents. I declare under penalty of perjury that the facts stated in the Notice of Completion are true and correct, to the best of my knowledge.

Executed on 1/25/2022, at Santa Cruz, California.

Mark R. Dettle
Public Works Director, as Owner’s Authorized Agent
City of Santa Cruz

12.3 Notice of Completion

PROOF OF SERVICE DECLARATION
(California Civil Code § 8118)
I, Miguel Lizarraga, declare that I served copies of the above NOTICE OF COMPLETION on the interested parties, in the manner and at the date and place set forth below (Check One):

Direct Contractor: American Enviro Services, Inc.
15513 Chateau Montelena Drive
Bakersfield, CA 93314
Claimant(s) Who Granite Rock Company
Has/Have Provided 5225 Hellyer Ave, Suite 220
Preliminary Notice(s): San Jose, CA 95138
White Cap, L.P.
297 South Vasco Road
Livermore, CA 94551
☒ REGISTERED, CERTIFIED, OR EXPRESS MAIL: by placing the Notice in a sealed envelope with postage fully prepaid and depositing the envelope in the United States mail by registered, certified, or express mail. Documentation of such service is attached herein.
☐ OVERNIGHT DELIVERY: by causing the Notice to be picked up for overnight delivery by an express service carrier.

Documentation of such service is attached herein.
☐ PERSONAL DELIVERY: by causing the Notice to be personally delivered to each of the addresses above stated on the date below.
☐ CODE OF CIV. PROC. § 415.20: by leaving the Notice and mailing a copy of the Notice in the manner provided under California Code of Civil Procedure § 415.20 for service of a summons and complaint in a civil action.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Executed on January 25, 2022, at Santa Cruz, California.

Miguel Lizarraga

12.4 Notice of Completion 12.5
City Council

AGENDA REPORT
DATE: 01/13/2022
AGENDA OF: 01/25/2022
DEPARTMENT: Public Works
SUBJECT: Neary Lagoon Tule and Sediment Removal Project (m409688) – Notice of Completion (PW)
RECOMMENDATION: Motion to accept the work of McNabb Construction, Inc. (Lafayette, CA) as completed per plans and specifications and authorize the filing of the Notice of Completion for the Neary Lagoon Tule and Sediment Removal Project (m409688).

BACKGROUND: At its February 23, 2021 meeting, City Council approved the advertisement for bid of this project and authorized the City Manager to execute the contract once bids were received. McNabb Construction, Inc. (Lafayette, CA) was the lowest responsive and responsible bidder and was duly awarded the contract.

The Neary Lagoon Management Plan (NLMP) was adopted in 1992 by City Council and approved by the California Coastal Commission. In October 2006, the Neary Lagoon Sedimentation Management Plan was approved by City Council.

The purposes of the Neary Lagoon Tule and Sediment Removal Project were to conduct marsh vegetation removal (primarily tules) and sediment dredging in Neary Lagoon to reduce sedimentation and increase lagoon depths in order to: 1) improve water circulation and flow rates; 2) improve water quality; 3) reduce the proliferation of vegetative growth (primarily tule); and 4) improve habitat. In addition, vegetation management helps to maintain an equal ratio of fresh water marsh to open water area as specified in the NLMP.

This project removed approximately 1,300 tons of sediments and 750 tons of tules from Neary Lagoon and trimmed several trees along the Boardwalk. Tules and sedimentation was brought to the City of Santa Cruz’s Resource Recovery Facility for disposal.

DISCUSSION: The work for this project is now complete. The project has been inspected by the Public Works Department and found to be constructed in accordance with the plans and specifications.

FISCAL IMPACT: The total project cost was $579,906.74, funded by the Wastewater Fund FY 2021 Capital Investment Program (CIP), which designates funds annually for the Neary Lagoon Tule and Sediment Removal Project (m409668). There was no impact to the General Fund.

13.1 Prepared By:

Steve Wolfman
Senior Civil Engineer
Submitted By:

Mark R. Dettle
Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. NOTICE OF COMPLETION.DOCX

13.2 RECORDED AT THE REQUEST OF:

City of Santa Cruz, Public Works
Attn: Steve Wolfman
WHEN RECORDED MAIL TO:

City Clerk’s Department
809 Center Street, Room 9
Santa Cruz, CA 95060
(Space above for Recorder’s use only)
This instrument is being recorded for the benefit of the City of Santa Cruz.

No recording fee is required pursuant to Government Code § 27383.

NOTICE OF COMPLETION
(CA Civil Code Sections 8102 and 9204)
NOTICE IS HEREBY GIVEN THAT:

The undersigned is an authorized representative of the owner of the interest or estate stated below.

1. The Owner’s Name and Address. The Project owner is the City of Santa Cruz, a municipal corporation (the “City”). The City’s mailing address is 809 Center Street, Santa Cruz, California 95060. The City of Santa Cruz has the following interest in the subject Property described below: City Right-Of-Way

1. Project Title and Number. The full name of the work of improvement/public works project (the “Project”) which is the subject of this Notice of Completion is: Neary Lagaoon Tule and Sediment Removal m409668

1. Nature of Work Performed on the Property or Materials Furnished for the City. The Project consisted of work described as: Conduct marsh vegetation removal (primarily tules) and sediment dredging in Neary Lagoon and trim trees along boardwalk

2. The general site location description or address (the “Property”) of the public improvement is located at: Neary Lagoon

1. Name and Address of Contractor. The Contractor on the Project is: McNabb Construction, Inc. 3527 Mt Diablo Blvd #306, Lafayette, CA 94549

2. Construction Lender. The name and address of the construction lender, if any, is:

3. Date of Completion. The Project on the Property was completed on: November 8, 2021

4. The filing of this Notice of Completion was authorized by the Santa Cruz City Council Minute Order on Tuesday, January 11, 2022
DATE:

Mark Dettle
Director of Public Works, City of Santa Cruz
Notice of Completion (Revised Oct 2021) 13.3
City Council

AGENDA REPORT
DATE: 01/13/2022
AGENDA OF: 01/25/2022
DEPARTMENT: Public Works
SUBJECT: Water Street Signal Interconnect Conduit Project (c401602) - Advertise for Bids and Award Contract (PW)
RECOMMENDATION: Motion to approve the plans and specifications for the Water Street Signal Interconnect Conduit Project (c401602) and authorize staff to advertise for bids and award the contract. The City Manager is hereby authorized and directed to execute the contract, in a form approved by the City Attorney. The Public Works Director is authorized to execute change orders within the approved budget.

BACKGROUND: At its January 14, 2014 meeting, City Council approved a motion authorizing the City Manager to execute a future adaptive traffic control vendor agreement for the procurement of the traffic control equipment, which include the Trafficeware 980 ATC traffic signal controller and Gridsmart video detection system. The goals of procuring the traffic control equipment were to: 1) modernize and enhance the robustness of the traffic signal system and 2) improve traffic conditions along various corridors to reduce stop delay and thus, vehicle emissions.

In 2015, staff upgraded the traffic signal equipment at eight intersections along the Ocean Street and Water Street corridors. In 2018, staff upgraded the traffic signal equipment at ten intersections along the Laurel Street and Front Street corridors. In 2020, staff upgraded the traffic signal equipment at nine intersections along the Soquel Avenue corridor.

The Trafficware 980 ATC traffic signal controllers and GridSmart video detection equipment have been successfully operating for over six years and have improved traffic conditions along the Ocean Street, Water Street, Laurel Street, Front Street and Soquel Avenue corridors and crossing arterials.

DISCUSSION: The Trafficware controller and Gridsmart video camera include software that provide remote access to hardware system information, such as status, activity and device performance. The software is critical for staff in quickly identifying and resolving traffic signal hardware issues.

Remote access is achieved through hardwired interconnect cables that run through polyvinyl chloride (PVC) conduit from City Hall to traffic signal intersections throughout the city.

However, the section of Water Street (between Market Street and North Branciforte Avenue) is missing PVC conduit and therefore does not have interconnect cable. The Water Street Signal

14.1 Interconnect Conduit Project will install the missing PVC conduit to allow for installation of interconnect cable in the future. Plans and specifications can be found online at www.cityofsantacruz.com/publicworkprojects.

FISCAL IMPACT: The project is fully funded in the Gas Tax Fund FY 2022 Capital Investment Program (CIP) as Citywide Traffic Signal Controller Upgrade (c401602). There is no impact to the General Fund.

Prepared By:

Dan Estranero
Associate Professional
Engineer
Submitted By:

Mark R. Dettle
Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

14.2 City Council

AGENDA REPORT
DATE: 01/10/2022
AGENDA OF: 01/25/2022
DEPARTMENT: Water
SUBJECT: Ratification of First Amendment to Agreement for Water Meter Box Lids with M&M Backflow & Meter Maintenance (WT)
RECOMMENDATION: Motion to ratify the First Amendment to Agreement for Water Meter Box Lids with M&M Backflow & Meter Maintenance in the amount of $254,323.30, and to authorize the Water Director to execute future contract amendments within the approved budget.

BACKGROUND: In April 2021, through a competitive bidding process, M&M Backflow & Meter Maintenance (M&M) was awarded a contract in the amount $733,451 to supply an estimated 23,000 meter box lids of varying types and sizes. Replace of meter box lids is one element of the Water Department’s overall Meter Replacement Project. Due to limited storage space, lids were expected to be ordered and delivered in monthly shipments throughout the 12 month project schedule. In late November 2021, as the Water Department was finalizing other contracts to initiate the project in January 2022, M&M notified staff that the original bid pricing, order lead time, and delivery schedule for meter lids could not be honored due to supply chain and shipping issues affecting the industry.

DISCUSSION: Upon receiving notice, the Water Department commenced discussion with M&M to understand the supply chain issues and price increase. In parallel, staff contacted the second vendor from the original bid announcement to obtain a new price proposal. The second vendor was non-responsive to staff’s request for updated pricing. After validating the root causes of the supply chain issues purported by the vendor, and receiving no response from the competing vendor, the Water Department negotiated to purchase one-third of the total meter lids at the original bid price and purchase the remaining two-thirds at the revised price. To keep the project on track and avoid incidental delays and cost increases, this first amendment was signed and the order for the remaining two-thirds of the meter lids has been placed. The total contract amount was increased by $254,323.

FISCAL IMPACT: Funds are available in the Water Department’s FY 2022 Capital Investment Program budget, c701603 – Meter Replacement project.

Prepared By:

Kyle Petersen
Customer Service Manager
Submitted By:

Rosemary Menard
Water Director
Approved By:

Matt Huffaker
City Manager

15.1 ATTACHMENTS:

1. FIRST AMENDMENT TO TO AGREEMENT WITH M AND M BACKFLOW AND METER MAINTENANCE.PDF

15.2 15.3

15.4 15.5

15.6 City Council

AGENDA REPORT
DATE: 01/12/2022
AGENDA OF: 01/25/2022
DEPARTMENT: Parks and Recreation
SUBJECT: Establishment of Sister City Relationship Between Biarritz, France and the City of Santa Cruz (PR)
RECOMMENDATION: Resolution establishing Biarritz, France as a Sister City of the City of Santa Cruz.

BACKGROUND: On September 9, 2019, the Santa Cruz Sister Cities Committee (Committee) unanimously approved a recommendation to the City Council to adopt Biarritz, France as a friendship city and to establish a formal relationship. At their October 8, 2019 regular meeting, the City Council of the City of Santa Cruz (Council), per resolution NS-29,578, approved the adoption of the City of Biarritz, France as a friendship city of the City of Santa Cruz. On July 25, 2020 the Mayor of Biarritz formalized the partnership with a letter to then Mayor Justin Cummings, which officially started a friendship city status between the two cities.

Richard Tardits, the delegate to tourism for Biarritz, along with Committee member and friendship city champion, Douglas Hull, discussed a variety of topics for shared exchange including water quality control, seasonal activities, ocean erosion, and surfing programs. In February 2020, Tardits and Hull explored strategies and built teams between the two cities with bi-weekly exchanges via email and Zoom. The meetings were focused on identifying common issues faced by both cities and the need to address climate change adaptation.

As COVID hit Santa Cruz in mid-March 2020, France imposed a lock down on March 17, 2020.

Subsequently, all meeting plans changed and pivoted from a visiting 2021 delegation to virtual meetings of mayors and key members from both cities. A virtual delegation took place on June 29, 2021. Representing Santa Cruz were then Mayor Donna Meyers, Dr. Tiffany Wise-West, Hilary Bryant, Trent Hodges from Save the Waves and then Committee member Hull.

Representing Biarritz, France were Mayor Maïder Arostéguy, vice mayor Richard Tardits, Mathieu Kaiser representing environmental stewardship, Xavier Delanne representing sports, and Anne Pinatel representing arts and culture. City staff liaison Rachel Kaufman attended the meeting which was organized and recorded by the City of Santa Cruz. All meetings remained virtual until both countries allowed for international travel.

A mayoral delegation with then Mayor Meyers, Dr. Wise-West, Committee chair Hull and Committee vice chair Marta Beckwith traveled to Biarritz, France and were welcomed by the Biarritz’s administration in September 2021.

16.1 According to the Santa Cruz Policy for Sister and Friendship and Sister City Status approved by both the Committee and City Council, a Friendship City shall be for two (2) years, at which time a committee-wide evaluation shall be made to see whether the sponsoring group met the adoption policy as a condition prior to the granting of full sister city status.

Prior to the end of friendship term, the chair of the subcommittee for the friendship city seeking sister city status will prepare a report that informs the members of the Committee of the current scope of the relationship and its potential for growth. The report will contain a profile of the city under consideration; the existing constituencies for the sister city candidate in Santa Cruz; likely future constituencies; plans to expand the relationship to other communities; a description of the activities and exchanges that have occurred; a description of the activities and exchanges that are anticipated for the next five (5) years; and a description of how a permanent relationship will be of mutual benefit. The report is included in the agenda packet for Council review.

On November 8, 2021, the Committee reviewed the report from its friendship subcommittee on Biarritz, France and requested that the full Committee grant full sister city status to Biarritz, France for reasons stated in the report (Biarritz Committee Report).

At their regular meeting on January 10, 2022, the Committee voted (9-1) to approve and recommend to City Council a resolution adopting Biarritz, France as a Sister City. Note that there was one vacancy on the Committee at the time of the vote.

DISCUSSION: As the friendship city relationship with Biarritz, France has concluded its twoyear exploratory term (expired as of January 2022). The Committee recommends Council approve official sister city status with Biarritz via resolution. The addition of Biarritz, France as a Santa Cruz sister city would bring the total active sister city relationships to five (5). The other active sister cities relationships include Shingu, Japan (1974), Sestri-Levante, Italy (1980), Alushta, Ukraine (1984), and Jinetope, Nicaragua (1990). The sister city relationship with Puerto La Cruz, Venezuela (1966) is currently inactive.

The action before Council strongly supports the Health in All Policies (HIAP) pillar of sustainability. Both cities have identified an interest in exchange of ideas specific to climate change and its impact on coastal cities.

FISCAL IMPACT: None.

Prepared By:

Rachel Kaufman
Recreation Superintendent
Submitted By:

Tony Elliot
Director of Parks &
Recreation
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOC

2. SANTA CRUZ POLICY FOR SISTER AND FRIENDSHIP CITY STATUS.PDF

3. BIARRITZ COMMITTEE REPORT.PDF

16.2 RESOLUTION NO. NSA RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ DESIGNATING THE

CITY OF BIARRITZ, FRANCE AS A SISTER CITY OF THE CITY OF SANTA CRUZ WHEREAS, the Sister Cities Committee of the City of Santa Cruz, pursuant to the “Santa Cruz Friendship and Sister City Adoption Policy,” Biarritz, France was designated a Friendship City; and WHEREAS, the City Council of the City of Santa Cruz adopted Biarritz, France as an official Friendship City on October 8, 2019 per resolution NS-29,578; and
WHEREAS, through various engagements, delegations and exchanges while as Friendship Cities, a growing connection was established amongst the residents of both cities; and WHEREAS, it is the mission of the Sister Cities Committee to encourage the people of the City of Santa Cruz and the people of its Sister Cities to understand one another as individuals, as members of their community, as citizens of their country, and as part of the family of nations; and WHEREAS, on November 8, 2021, the Sister Cities Committee of the City of Santa Cruz reviewed a report from its subcommittee on Biarritz Friendship City, attached hereto, as Exhibit 1 of this resolution, in which said subcommittee requested that the Sister Cities Committee grant full Sister City status to Biarritz, France for reasons stated in said report; and WHEREAS, Friendship City status is limited in term to not more than two (2) years; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Santa Cruz that Biarritz, France be officially designated a Sister City of the City of Santa Cruz upon receipt of a reciprocal resolution from the Mayor and City Council of the City of Biarritz, France.

PASSED AND ADOPTED this 25th day of January, 2022 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: __________________________
Sonja Brunner, Mayor
ATTEST: ___________________________
Bonnie Bush, City Clerk Administrator

16.3 Santa Cruz Friendship and Sister City Adoption Policy The intent of this document is to define the circumstances, criteria, and processes to nominate and adopt Friendship Cities and recommend to the Santa Cruz City Council the adoption of Sister Cities.

Additionally, a process to reconsider existing relationships is outlined.

Mission and Purpose
The City of Santa Cruz desires to establish relationships with towns and localities abroad to provide opportunities to build friendships, learn about other cultures, and foster international understanding. To this end, the City of Santa Cruz has established the Santa Cruz Sister Cities Committee, a volunteer group of ordinary citizens who, with the support of local elected officials, form long‐term relationships with people and organizations in cities abroad. Through people‐to‐ people relationships, the committee pursues activities and exchanges in thematic areas that are important to both communities, including municipal, business, trade, educational, and cultural exchanges.

I. Defining Friendship and Sister Cities
A. A Friendship City is a designated relationship for two years, where both cities have the opportunity to explore the potential for becoming sister cities. Both cities enter into an agreement to develop and strengthen relationships through a variety of activities, including but not limited to:
 Youth programs/exchanges
 Visitor exchanges
 Cultural and business exchanges
 School affiliations/pen pals (adult & children)
 Humanitarian projects
B. A Sister City relationship is a broad‐based, long‐term partnership between two communities in two countries. This relationship is officially recognized after the highest elected or appointed official from both communities sign an agreement. A city can have multiple sister cities, with community involvement by volunteers, civic organizations, nonprofits, municipal governments, the private sector, and others. Exchange possibilities are as described above for Friendship Cities.

II. Friendship City Selection Criteria & Process
A. Selection Criteria:

Friendship Cities should ideally meet three sets of criteria:
 Criteria related to structural similarities associated with compatibility;  Pre‐existing or easily developed constituencies; and
 Geographic balance.

These criteria are described below.

16.4 Santa Cruz Friendship and Sister City Adoption Policy

1. Structural Similarities:

Potential Friendship Cities should ideally share certain structural commonalities with the City of Santa Cruz to better ensure compatibility and hence the circumstances needed for a long‐lived and thriving relationship.

These structural criteria include:
 Population size
 Key industries
 Geographic characteristics
 Institutions of higher learning
For the City of Santa Cruz, a comparable city would be a university town of about 60,000 people located near the ocean or other large body of water with a municipal wharf or working harbor and served principally by tourism, technology, and agricultural industries.

While successful relationships are based, in part, on shared experiences that derive from structural similarities, the City of Santa Cruz should not insist on an exact match. In evaluating structural criteria, the committee should look for cities that share most, rather than all, of the above criteria.

2. Existing or easily developed constituencies:

The City of Santa Cruz should enter into Friendship City relationships only with cities for which a local base of support exists or can readily be developed. Support can take many forms. For example:
 Expatriate and ethnic ties
 Art and cultural relationships and exchanges
 Educational linkages, including alumni ties
 Service organization activities
 Economic and business relationships
 Youth organization activities
In choosing a Friendship City, the committee should take cognizance of the number, variety, and depth of relationships that already exist. The more existing ties the stronger the relationship will likely prove to be and the greater the likelihood that relationship will successfully transition to a Sister City. In the absence of a preexisting base, the potential to develop a broad base of support, can and should be considered. However, given that the Santa Cruz Sister Cities Committee is a volunteer organization, the committee should prefer those cities which already have local constituencies. The committee should avoid entering into Friendship City relationships with cities where the burden of developing interest among the community will not only fall primarily on its members’ shoulders but also be difficult to develop.

16.5 Santa Cruz Friendship and Sister City Adoption Policy

3. Geographic Balance:

The committee should seek geographic balance for its Friendship Cities. Ideally, selected cities should be spread out across the globe rather than clustered in one geographic region. Currently, the City of Santa Cruz has Sister and Friendship Cities dispersed as follows:

I. North America:
 Jinotepe, Nicaragua
 Chivirico, Cuba (Friendship City)
II. South America:
 Puerto la Cruz, Venezuela
III. Europe:
 Sestri Levante, Italy
 Alushta, Crimean Peninsula
IV. Africa:
 Kasese, Uganda (Friendship City)
V. Asia:
 Shingu, Japan
Future Friendship Cities would ideally be located in South America, Africa, Asia, and Australia/Oceania for geographic balance and a truly global network.

B. Process for Adding a Friendship City:

The Santa Cruz Sister Cities Committee will frequently be faced with requests to establish Sister City relationships with cities abroad. As a rule, the committee should seek to preserve quality over quantity. Committee members’ time and energy are limited, and should be focused on preserving, deepening, and expanding already existing Sister City relationships. However, excellent matches will come along, and the committee should be prepared to identify them. The following process will help the committee do so.

1. Upon receiving a request to establish a Friendship City relationship, the Committee shall seek a volunteer champion from the Committee membership to actively shepherd the request through the Committee’s process. The champion will be a volunteer position only—neither the Chair nor the committee can summarily name a champion. If such a volunteer is not identified from the Committee membership, the Friendship City request will not be processed. The Parks and Recreation staff liaison cannot fulfill this responsibility.

2. Requests for establishing Friendship City relationships may originate from other cities, members of the public, or committee members.

3. If at all possible, Santa Cruz and the candidate Friendship City should attempt to exchange delegations prior to a formal designation. Its purpose is to explore and determine all initial exchange possibilities.

4. The champion will prepare a written report to include:
a. A profile of the city under consideration that details the structural characteristics of the city (population size, geographic location, presence 16.6 Santa Cruz Friendship and Sister City Adoption Policy
of universities, key industries). Moreover, the profile should also detail the languages spoken in the area, give a brief introduction to the structure of the local government, provide a short history of the area, and describe any logistical challenges to travelling to and from the city under consideration.
b. A profile of the existing or likely constituencies for the Friendship City candidate in Santa Cruz.
c. A profile of the existing or likely constituencies in the city under consideration.
d. A description of potential focus areas for activities and exchanges with the Friendship City candidate, including a delineation of those potential activities and exchanges. This section of the report should describe how entering into a Friendship City relationship will benefit both cities. e. Once the report is complete, the champion will request the staff liaison and/or Committee Chair to put the report’s delivery on the next agenda and formally notify the City Council of this proposal; and If the City Council formally acts to object to the proposal, the process will be terminated. If there is no formal objection by the City Council within 45 days, the process shall proceed.
f. At a subsequent committee meeting, the committee will vote on whether or not to adopt the candidate city as a Friendship City.

Capacity
Ceiling:

There can be a maximum of two Friendship Cities at a time.

Length of Friendship City Status:

Friendship City status runs for a two‐year term.

Possibility of Extending Term:

4. Under unusual and unexpected circumstances, the committee at its option may extend Friendship City status for an additional year.

III. Sister City Selection Criteria & Process Selection Criteria At the conclusion of the Friendship City term, the city may be advanced to candidacy for sister city status, provided it meets the following additional criterion:

1. At least one bilateral exchange of delegations must have occurred after Friendship City status had been granted. That is, a delegation from the friendship city must have visited Santa Cruz, and a delegation from Santa Cruz must have visited the friendship city.

Selected delegates on the outbound delegation will have done the following: 16.7 Santa Cruz Friendship and Sister City Adoption Policy
a. They shall present to the full committee before the delegation departs an outline of what they hope to learn and accomplish while abroad.
b. They shall solicit questions from committee members to be investigated while abroad.
c. Upon return, they shall report their findings to the committee and make recommendations.

B. Process:

If the Friendship City meets the additional above criterion, then the committee will consider recommending the Friendship City to the City Council for Sister City status. While the city is being considered for Sister City status, its Friendship City status will be automatically renewed until the process is completed. The process for granting Sister City status is as follows:

1. Prior to the end of friendship term, the chair of the subcommittee for the Friendship City seeking Sister City status will prepare a report that informs the members of the Santa Cruz Sister Cities Committee of the current scope of the relationship and its potential for growth. The report will contain at a minimum the following information:
a. A profile of the city under consideration that details the structural characteristics of the city (population size, geographic location, presence of universities, key industries). Moreover, the profile should also detail the languages spoken in the area, give a brief introduction to the structure of thelocal government, provide a short history of the area, and describe any logistical challenges to travelling to and from the city under consideration.
b. A detailed profile of the existing constituencies for the sister city candidate inSanta Cruz. A profile of likely future constituencies should also be provided ifthe subcommittee intends to involve more segments of the community in the relationship.
c. A detailed profile of the existing constituencies for making Santa Cruz a sister city in the city under consideration. A profile of likely future constituencies should also be provided if the subcommittee knows of it counterpart’s plans to expand the relationship to other communities in the candidate city or if the subcommittee has plans to reach out to other community groups in the candidate city.
d. A description of the activities and exchanges that have occurred already involving the sister city candidate. This section should not only include a description of the inbound and outbound delegations, but also descriptionsof other activities and exchanges in which the two cities have engaged.

16.8 Santa Cruz Friendship and Sister City Adoption Policy e. A description of the activities and exchanges that are anticipated for the next five years. With regard to exchanges, the five‐year plan should provide a realistic description of their type, frequency, and method. f. A description of how a permanent relationship will be of mutual benefit. g. A recommendation for or against Sister City status.

2. At the last committee meeting before friendship term expires, the chair of the subcommittee will .

3. The committee will hear and discuss the report only; no action will be taken.

4. At a subsequent committee meeting, the committee will vote to recommend to the City Council the extensioncity of Sister City status to the candidate city.

IV. Active, Inactive, and Emeritus Sister Cities
A. The activity level of our relationships will vary. While active relationships with all sister cities would be ideal, the reality is that some relationships will become dormant. To deal with this situation, the Santa Cruz Sister Cities Committee needs a mechanism for distinguishing between active and inactive relationships. Sister Cities International has such a mechanism: inactive sister cities can be formally transitioned to an emeritus status.

B. For our committee’s purposes, an intermediate step between active and emeritus should be added. This step would be an informal inactive status which Sister Cities International would not be informed about. It would be for our committee’s use only. In practice, the committee should deem those Sister Cities for which there have been no interactions for 5 years to be inactive. All cities that are deemed inactive can be managed by one subcommittee. Once added to this subcommittee, they can return to active status, but until then, they will be less of an administrative burden on the committee.

C. In distinguishing between active and inactive Sister Cities, the committee’s online presence (City website, Facebook page) can list the active relationships as our Sister Cities and include a section mentioning our inactive Sister Cities. By doing so, the committee can trumpet its active relationships and while also ensuring that inactive cities remain visible to the curiouswho might be inspired to help us restore these dormant relationships.

Sister Cities on the inactive list that have not had any significant interaction for 10 years can be considered for formal emeritus status. Sister Cities International would be informed of this change in status.

16.9 City ProfileHome to 26,000 residents, Biarritz is an elegant and sophisticated beach city with direct access to 2.5 miles of creeks and fine sand beaches. It is located in southern France, on the Atlantic, 13.5 miles from the Spanish border. Its average temperature is 57F, and it experiences 58 inches of precipitation per year. Biarritz is served by a small international airport (BIQ) and a major train station accommodating high-speed trains. Tourism is the key industry, with the population swelling by 250,000 during the summer months. Biarritz is home to four five star palaces, over a hundred restaurants and bars, and to a multitude of luxury shops.

Biarritz is nurturing a growing tech startup environment with a number of new companies focused on ocean health and ecologically sound business values.

The last G7 meeting was hosted by Biarritz in October 2019.

The closest university campus is in Bayonne, 5 miles away, which is part of the University of Pau (12,000 students, 100 majors, 78 miles away). The Bayonne campus offers business and sport management degrees.

The average price of residential real estate in Biarritz is $700/sq ft.

16.10 Biarritz constituencies in Santa CruzSurfing and lifeguard related activities (competitions, schools, and clubs), attract a significant portion of permanent residents in both cities. In addition to surfers, environmentalists, individual and institutional, particularly those focused on ocean health are already involved in programs in which Biarritz participates (Ocean Conservancy, Save the Waves, UCSC). Within the tech industry, companies focused on goods and services for the green/blue economy are potential partners for international development, like Cruz Foam. Finally, Santa Cruz residents who travel are strong candidates for tourism focused alliances and programs.

In the near future, opportunities to showcase Biarritz artists and art driven organizations (including individual galleries and museums) will be developed online.

Santa Cruz constituencies in BiarritzSurfers, members of the ocean and environmental community (including organizations and private businesses), represent the two main existing Santa Cruz constituencies in Biarritz.

Biarritz runs an well established and competitive lifeguard club with over 1,00 members, 600 of which are active every week. The Santa Cruz brand is recognized and promoted by a few small businesses in Biarritz.

16.11 Delegation activitiesA delegation of five Santa Cruz officials and Committee members, including mayor Donna Meyers, Sustainability and Climate Action manager Tiffany Wise-West, Sister City Committee vice- chair Marta Beckwith, Save the Waves program manager Shaun Burns, and chair Douglas Hull visited with Biarritz mayor, five deputy mayors, the international relations staff director, and a number of local association executives September 22-26.

The delegation was officially received at city hall by Biarritz’s first female mayor, Maïder Arostéguy, and later the same day introduced to the local press and senior members of the Franco-American club. The mayor invited the Santa Cruz delegation to lunch at a five star hotel it owns, and contracted its management to Hyatt.

Individual members of the delegation met and connected with deputy mayors (elected officials responsible for setting direction and supervising execution of programs in the four sectors selected to express the relationship between the two sister cities: environment/ocean health, green and blue economic development, surf and sports, and cultural exchanges) every day to set direction and planning strategies.

The delegation attended the annual science based Waves of Change forum, and various themed sessions September 23-25. Both mayors were given the role to officially open the

16.12 forum. Dr. Wise-West presented
the city of Santa Cruz adaptation
plans and strategies on the last
day.

During the forum, the delegation
met with the Secretary General of
Ocean Climate Platform, OCP, and
leaders of the Sea’Ties initiative to
plan their first west coast
workshop in September 2022.

Individual members of the
delegation met with local surf
clubs, the lifeguard association, an
art gallery, and a surf culture art
producer.

The delegation was invited to visit
San Sebastián, a city of 180,000 in
Spain and geographically and economically related to Biarritz as Monterey is to Santa Cruz.

The delegation was introduced to the mayor of San Sebastián. Biarritz may wish to explore forming a marine sanctuary in its bay and call upon Santa Cruz for its experience and relevant data.

Anticipated activitiesSanta Cruz will host the first edition of a multi-year program with Biarritz in September of 2022.

Biarritz will hold the second edition a year later.

Planning for the events to be staged in September 2022 has begun and include the following activities:
1- a Sea’Ties workshop of 40-50 scientists (including UCSC), local gov’t officials, and business leaders focused on lessons learned, winning strategies, and funding opportunities to address coastal erosion and climate adaptation . First week of September. 2- a surfing in Biarritz film festival at the Rio theater. Second week of September. 3- a coastal tech hybrid forum to introduce selected startups to one another, and to the business community in both cities. Third week in September. 4- a contest pitting six elite junior surfers, and six competitive junior lifeguards (15-18) from Biarritz versus their counterparts in Santa Cruz. End of September beginning of October.

In addition, online showcasing of selected art or art exhibits from both cities will be explored to be staged throughout the month.

Finally, Biarritz wishes to design and build a surf museum and will work with Biarritz committee members and their contacts to plan the process and define contents.

The cities of Cascais in Portugal, New Quay in Great Britain, and Mar del Plata in Argentina are exploring joining future expressions of the Biarritz Santa Cruz annual events as members of a coalition of small sophisticated coastal cities with similar profiles and focus on climate change adaptation.

16.13 Mutual benefits of permanent relationshipBiarritz and Santa Cruz share similar geographic profiles, tourism economy, surfing culture DNA, commitment to climate change adaptation and to green/blue economic development.

The collaboration between the two cities will augment the visibility of their climate change adaptation commitment and strategies, prolong their tourism season, extend the international reach of local tech startups.

Specific opportunities for mutual growth and leverage of respective know-how will be explored in:

Ecosystem services concepts for local governments; water quality management; plastics control programs; joint development of surfing and ocean sports; surf heritage museums; stewardship planning for ocean conservation; funding development national and International sources; green Work force development; cross training of NGOs and city staffs.

16.14 City Council

AGENDA REPORT
DATE: 01/12/2022
AGENDA OF: 01/25/2022
DEPARTMENT: Economic Development
SUBJECT: Downtown Recovery Programs Update and Resolution (ED) RECOMMENDATION: Motion to:
1) Accept a report on the status of Downtown Recovery program activities. 2) Adopt a resolution authorizing the temporary extension of commercial use permit abandonment period in connection with the COVID-19 pandemic.

BACKGROUND: In response to the COVID-19 pandemic, the City of Santa Cruz implemented a number of programs to aid in the recovery of small businesses and our commercial districts, especially Downtown. The Temporary Outdoor Expansion Program (TOEP), Downtown Pops! Vacant Storefront Activation Pilot Program, and the Shop Santa Cruz Holiday campaign have become key components of the Downtown Recovery pillar of the City’s interim recovery plan, Re-Envision Santa Cruz.

DISCUSSION: The following is a summary of the progress and successes of the Downtown Recovery programs in the fourth quarter of 2021. More information on these programs will be provided in the staff presentation.

Outdoor Dining Programs – Temporary to Permanent Programs The Economic Development Department (ED) continues to work on transitioning TOEP into a permanent program for both public and private property permit holders. ED issued the 100th permit of the program just before the holiday closure, a major milestone in the program’s second year of operation. ED also entered into contract with Dillon Design Studio to begin development of parklet designs that will be available to businesses for the construction of permanent parklets once approved. Dillon is also conducting an analysis of the construction that some businesses have done for their temporary parklets to determine the feasibility of transitioning these to the permanent models cost effectively, and a survey of participants to gather feedback on investments made, key elements for parklet designs, and other features to inform the design development.

At the November 9, 2021 City Council meeting, staff was directed to work on reopening the 1100 Block of Pacific Avenue in early 2022. In November and December staff conducted outreach with the businesses owners who need to reduce the size of their parklet to enable reopening to provide direction on the next steps. Now that the busy holiday season has passed,

17.1 staff is working with the businesses to begin construction with the goal of completing the work by the end of January to allow for reopening.

Downtown Pops! Vacant Storefront Activation Pilot Program At the April 27, 2021 meeting, City Council authorized the creation of the Downtown Pops! Vacant Storefront Activation Pilot Program Downtown Pops!). Downtown Pops! is designed to help reduce vacancies and provide opportunities to connect new and growing businesses with property owners who are open to short term tenants. The program received significant interest from the business community with 15 applications submitted to the initial request for proposals.

Economic Development has been able to support three tenants so far: Curated by the Sea (703 Front Street); RREVV (1349 Pacific Avenue); and DTA’s Santa Visits (1108 Pacific Avenue).

ED has secured two more locations with one under construction to be ready in early spring.

Downtown Pops! has also created space for conversations with property owners and brokers to make movement toward filling their spaces. The program has helped start the process for some owners to make improvements necessary for future tenants, and connections have been made between property owners and tenants for long term leases without City subsidy due to the increase in awareness and support around these vacant spaces.

Shop Santa Cruz Holiday Campaign
Beginning in November and running through the New Year’s holiday, Economic Development and the Downtown Association presented the second annual Shop Santa Cruz holiday campaign to promote local spending and support our small businesses as they continue to recover from the ongoing impacts of the pandemic. The campaign included the installation of holiday themed banners on Pacific Avenue, bridge signage on Water Street, radio advertisements, a feature in the San Francisco Chronicle holiday guide, window clings with shop local messaging, and a series of events in the Downtown.

New Recovery Tool: Temporary Extension of Use Permit Abandonment Period Economic Development has worked with the Planning and Community Development Department and City Attorney’s Office to develop a resolution for consideration by the City Council authorizing a temporary extension of commercial use permit abandonment periods in connection with the COVID-19 pandemic. Under the municipal code currently, a use permit expires if a use has ceased for a period of six consecutive months. In practice, this means once a business closes or leaves a location for more than six consecutive months their use permit expires and they would be required to obtain new permits from Planning and Community Development and must meet the current code requirements. This could mean that a business that was grandfathered in under previous code requirements could be subject to new rules that would restrict or even prohibit their operations if a new permit is required. Under the proposed resolution, all active commercial use permits as of March 4, 2020, and those approved up to and including the expiration date of the local health emergency declaration, would have the life of the permit automatically extended to expire one year from the expiration date of the emergency declaration, unless otherwise extended by the City Council.

This resolution would provide a recovery tool to support those businesses who are still working through the impacts of the business restrictions and closures to protect the life of their permit as well as provide opportunities to new business owners seeking approval to start their business by allowing them to continue operation of use permits that have been abandoned during the pandemic period. Given the business restrictions and even closure requirements that have come

17.2 into effect throughout the COVID-19 pandemic, many businesses have been forced to close temporarily for periods of time or have made the difficult decision to close permanently - leaving many empty storefronts or spaces in flux while business owners determine the best approach to take in the ever-changing business climate. This extension would allow a use permit to stay active for a longer period to support a business reopening in the same location or a new business taking over the space with the same operations. The extension would provide significant savings on permitting and time to open for those wanting to activate spaces in our commercial districts. It will also be beneficial to brokers and property owners in marketing their vacancies to be able to offer a space that has entitlement approval still in place.

These programs align with the pillars of the Health in all Policies goals of public health, equity and sustainability by focusing on opportunities for safe outdoor dining, reducing barriers to entry for businesses owned by women and people of color and encouraging local shopping to reduce emissions and contributing to the local economy.

FISCAL IMPACT: Revenue will be impacted due to loss of parking meter fees for parking spaces being utilized for the operation of the temporary outdoor expansion program through December 31, 2022, and for the waiver of related fees for permits under the proposed temporary extension of use permits, if approved by Council. If parking occupancy rates increase dramatically in the coming months, staff will return to Council for further discussion of the financial and supply impacts of TOEP for further discussion. Up to $200,000 from the City’s Economic Development Trust Fund has been allocated for the Downtown Pops! pilot program and there will be no direct impact to the General Fund related to implementation. Additionally, there is no cost to the General Fund for the holiday campaign or temporary extension of use permits.

Prepared By:

Rebecca Unitt
Economic Development
Manager
Submitted By:

Bonnie Lipscomb
Economic Development
Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

17.3 RESOLUTION NO. NS-29,XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ

AUTHORIZING THE TEMPORARY EXTENSION OF COMMERCIAL USE PERMIT ABANDONMENT PERIOD IN CONNECTION WITH THE COVID-19 PANDEMIC WHEREAS, on March 4, 2020, Governor Gavin Newsom proclaimed a state of emergency to exist within the State of California due to the threat posed by COVID-19; and WHEREAS, on March 6, 2020, the County of Santa Cruz Health Officer ("Health Officer"), under her civil authority, declared a Local Health Emergency, finding an imminent and proximate threat to public health and welfare from the introduction of COVID-19 in the County of Santa Cruz; and
WHEREAS, in light of the current COVID-19 pandemic, the Santa Cruz City Council declared a local health emergency re COVID-19 by Resolution No. NS-29,640 on March 10, 2020, extended the emergency declaration by Resolution No. NS-29,653 adopted at its regular meeting of April 28, 2020, and further extended the emergency declaration by Resolution Nos. NS-29,677 on June 23, 2020, NS-29,695 on August 11, 2020, NS 29,714 on September 22, 2020, NS-29,739 on November 10, 2020, NS-29,749 on December 8, 2020, NS-29,766, on January 26, 2021, NS29,782, on March 9, 2021, NS-29-802 on April 27, 2021, and NS-29,839 on June 22, 2021, at its special meeting of September 21, 2021 by Resolution No. NS-29, 873, and at its regular meeting of November 9, 2021 by Resolution No. NS-29,884, extending Declaration of Emergency for another sixty days.

WHEREAS, as a result of the restrictions imposed by the State’s COVID-19 related guidance and the County’s Health Order, businesses, and particularly restaurants, have suffered significant economic hardships; for example, more than 100 Santa Cruz businesses closed as a result of pandemic, according to a 2020 survey conducted by the Santa Cruz Chamber of Commerce; and
WHEREAS, it is clear that the longer the emergency declaration is in place, the more difficult it will be for operators to return and reopen their businesses; and WHEREAS, in light of the devastating impacts COVID-19 has had on local businesses, providing certainty with respect to the timeframe that use permits will remain in effect will facilitate business recovery and generate increased sales tax revenue for the City; and WHEREAS, cities across the State are extending the expiration dates of permits to accommodate the disruptions by business closures and restrictions; and WHEREAS, during this State of Emergency, the City of Santa Cruz must consider the welfare of its businesses while protecting the health and welfare of its citizens; and

17.4 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz (City Council) as follows:

1. Extension of the use permit expiration date: That all commercial use permits approved between March 4, 2020, and up to and including the expiration date of the local health emergency declaration, shall have the life of the permit automatically extended to expire one year from the expiration date of the emergency declaration, unless otherwise extended by the City Council. Extension of abandonment period: That all active commercial use permits and nonconforming uses that have ceased operation between March 4, 2020, and up to and including the expiration date of the local health emergency declaration, shall have the six month abandonment period automatically extended to expire one year from the expiration date of the emergency declaration, unless otherwise extended by the City Council.

2. That this resolution shall be implemented as follows:
a. For any new business operator who obtained a use permit during the emergency declaration and was unable to begin operating within the time allowed under the use permit, the new business operator may begin operating upon proof of a valid Business License from the Finance Department in order to exercise its approved use permit and all applicable conditions of approval at the subject property.
b. For any existing business operator that ceased operation for a period of time during the emergency declaration and for which no other use has been approved seeks to resume operation at the same property, the existing business operator shall renew or obtain a new Business License from the Finance Department to continue to exercise its approved use permit and all applicable conditions of approval or prior nonconforming use at the same property.
c. For any new business operator without previous operation at a subject property where the use was abandoned during the emergency declaration period, the new business operator may begin operations under the most recent use permit or consistent with prior nonconforming use upon obtaining a Zoning Clearance from the Planning & Community Development Department and a Business License from the Finance Department to fully exercise the most recent use permit and all applicable conditions of approval or prior nonconforming use at the subject property. Activation of a prior use may be approved by the Planning & Community Development Department in consultation with the Economic Development Director.

3. That the City Council finds that the potential environmental impacts of an approved use permit were considered within the scope of the original permit and the extension of an approved use permit does not have any additional impacts under CEQA that have not been mitigated within the scope of the approved use permit conditions and is therefore exempt from further CEQA review under the Class 1 Existing Facilities Categorical Exemption (CEQA Guidelines section 15301).

17.5 PASSED AND ADOPTED this 25th day of January, 2022 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________
Sonja Brunner, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator

17.6 Downtown Recovery Programs Update
City Council Presentation January 25, 2022

17.7 1. Downtown Pops! Vacant Storefront Activation Program

2. Permanent Parklet & Private Property Outdoor Dining

3. Shop Santa Cruz Holiday Campaign

4. CARD Program

5. Resolution to Extend Commercial Use Permits
Recovery & Rebuilding (2021 and beyond)

17.8 DOWNTOWN POPS!
Vacant Storefront Activation Pilot Program

17.9 1519 Pacific Ave 1407 Pacific Ave
110 Cooper St
1115-1119 Pacific Ave
1308 & 1306 Pacific Ave 1130 Pacific Ave
901 Pacific Ave
1122 Pacific Ave
1335 Pacific Ave 1207 Pacific Ave
N 1547 Pacific Ave

17.10 Leased
Downtown Pops
Potential Tenant
Vacant
Construction
N

17.11 Downtown Pops! Space Activations
703 Front Street
Curated by the Sea
launched September
1349 Pacific Avenue
RREVV
launched November
1108 Pacific Avenue
DTA Santa Visits
Weekends in December

17.12 Downtown Pops! Space Activations
1122 Pacific Avenue
Tenant Improvements
ETA Spring 2022
515 Pacific Avenue
Tenant Improvements
Available Soon
1117 Pacific Avenue
In Progress

17.13 Leased Spaces - Not Downtown Pops! Related
1519 Pacific Avenue
Elliott
920 Pacific Avenue
Santa Cruz Waffle Shop
110 Walnut Avenue
Twigs Tap House - coming soon

17.14 Leased Spaces - Not Downtown Pops! Related
121 Walnut Avenue
Love Me Two Times
113 Walnut Avenue
Arslans Turkish Street Food
117 Walnut Avenue
Jade Boutique

17.15 PERMANENT PARKLET PROGRAM

17.16 PERMANENT PARKLET PROGRAM
Temporary Program Currently Set to Expire December 31, 2022 Program Development Underway for Permanent Program
- Dillon Designs developing 2 parklet models - internal review - Planning Department conducting assessment of private property for permanent approval
- 1100 Block Reopening in progress - working to modify parklets

17.17 SHOP SANTA CRUZ HOLIDAY CAMPAIGN

17.18 17.19

17.20 17.21

CARD PROGRAM

17.22 17.23

RESOLUTION TO EXTEND USE PERMITS

17.24 RESOLUTION TO EXTEND USE PERMITS
Resolution would cover the following scenarios:

1. Provide more time for businesses who received a use permit but were not able to act on it because of the uncertainty of the pandemic

2. Provide an extension of the life of use permits to allow a business owner to resume operation after a closure of more than 6 month

3. Provide a streamlined permitting process for businesses who want to take over the operations of a previous use after a business closed during the pandemic

17.25 EXTENSION OF USE PERMIT EXPIRATION
All commercial use permits approved between March 4, 2020 and up to and including the expiration date of the local health emergency declaration are automatically extended to expire one year from the expiration date of the emergency declaration, unless otherwise extended by the City Council.

17.26 EXTENSION OF USE PERMIT ABANDONMENT PERIOD
All active commercial use permits and nonconforming uses that have ceased operation between March 4, 2020, and up to and including the expiration date of the local health emergency declaration, shall have the six month abandonment period automatically extended to expire one year from the expiration date of the emergency declaration, unless otherwise extended by the City Council

17.27 HOW THIS HELPS RECOVERY
- Streamlines entry process for businesses wanting to take over a previous business operation
- Provides longer runway and assurance for businesses
recovering from COVID closure impacts
- Makes vacancies more marketable with pre-approved uses - Reduces the cost and timeline for permitting

17.28 Recommendation:

Accept the report on the status of the Downtown Recovery Program Activities and to adopt a resolution of the City Council of the City of Santa Cruz authorizing the temporary extension of commercial use permit abandonment period in connection with the COVID-19 pandemic.

17.29 QUESTIONS?

17.30 City Council

AGENDA REPORT
DATE: 01/13/2022
AGENDA OF: 01/25/2022
DEPARTMENT: City Manager
SUBJECT: Re-Envision Santa Cruz - Interim Recovery Plan Update (CM) RECOMMENDATION: Motion to accept the City’s most recent quarterly progress reports on Re-Envision Santa Cruz, a 12-18 month interim recovery plan, and provide feedback as desired.

BACKGROUND: Beginning in December 2019, a novel coronavirus caused an outbreak of respiratory illness (COVID-19) in China. Illness with this virus has ranged from mild to severe, with a highly significant impact on our health care system and personnel. The impact from the virus touched all aspects of our community. Unlike other emergencies, COVID-19 is a public health emergency and the City of Santa Cruz must abide by local public health orders set by the County of Santa Cruz Public Health Officer and statewide orders issued by the Governor.

Public Health Actions:
- On March 4, 2020, the County of Santa Cruz Health Services Agency declared a Local Health Emergency regarding COVID-19.
- On March 10, 2020, City Council declared a local health emergency disaster. - All of the County actions can be found at the County’s COVID-19 Public Information page:
http://santacruzhealth.org/HSAHome/HSADivisions/PublicHealth/CommunicableDiseaseControl/Coronavi rusHome/PublicInformation.aspx
City Strategic Planning Efforts:
- Strategic Plan. On January 14, 2020, Nicole Young of Optimal Solutions Consulting launched the City’s Strategic Plan project at the City Council meeting. Prior to this launch, Optimal Solutions worked with Council at its June 2019 Council Retreat to develop a shorter-term 6 month work plan. In early 2020, staff worked with the consultant to do an internal landscape analysis across all Departments. In March 2020, the City was supposed to begin its external outreach with the community to gather its inputs and opinions. Due to the sheer volume of work needed for COVID-19 response, the outreach and the larger strategic plan project were postponed indefinitely. - Convergence of COVID-19 and Strategic Planning. As the pandemic changed course and different actions were needed, Council and staff recognized that the City needed to stay focused on responsive actions required to make quick adjustments to State and County

18.1 changes, but also to shift some time to evaluation of recovery for both community scale needs such as economic recovery but also internal City operational needs such as workplace safety, new delivery mechanisms, and budget management. - On June 9, 2020, the Council heard and discussed an update which ultimately resulted in shifting from our former broad-based strategic plan to an Interim Recovery Plan encompassing a planning timeline of 12-18 months and establishing a Council Interim Recovery Plan Committee (CIRPC) to work on the Interim Recovery Plan, which would also include a more formal rubric/a set of criteria for decision making for prioritization of tactical City response and recovery.
- On October 29, 2020 at a special meeting, Council engaged in a workshop facilitated by Management Partners and developed:
 Three priority areas of focus for the Council’s and staff’s attention over the next 12 to 18 months.
 Key metrics for tracking recovery.
 A framework for making decisions about new work, services or projects during this period so that Council members and staff can prioritize time and resources on the key areas of focus.
- On November 24, 2020, Council received the Interim Recovery Plan document authored by Management Partners based upon the October workshop and adopted the plan. Key content components of the IRP are:
 Focus Areas:
o Fiscal Sustainability
o Downtown and Other Business Investment
o Infrastructure
 Principles and Processes:
o Equity, Health & Well-being and Sustainability
o Green Economy
o Community Engagement
o Delivery of Core Services
o Risk Management
o Pursuit of All Funding Sources
- On February 23, 2021, Council received and approved an update regarding staff work to operationalize the Interim Recovery Plan, refine its contents to “Re-Envision Santa Cruz”, and adopt on-going status reporting formats.
- On April 27, 2021, Council received and approved Re-Envision’s first quarterly reports and also directed staff to further explore suggestions to incorporating an equity lens into the current metrics and overall measurement model.
- On August 10, 2021, Council received and approved Re-Envision’s second set of quarterly reports.
- On October 26, 2021. Council received and approved Re-Envision’s third set of quarterly reports.

DISCUSSION:

1. Quarterly Progress Report (attached) – October 1, 2021 through December 31, 2021.

Highlights include:

18.2  Adopted the Green Economy resolution and released Phase 1 of the Green Economy analysis as part of Climate Action Plan 2030.
 Began collaborations and partnerships with the County Office of Education, the Santa Cruz County Workforce Development Board, County Public Works and others to develop new opportunities for training local residents in various construction trades and green economy jobs.
 Won awards totaling $44 million in grants and tax credits for the Pacific Station North and South projects. Pacific Station South is set to break ground by April 2022.  Received 16 grant applications for the City Arts Recovery Design (CARD) Pilot Grant Program.
 Secured City Council approval for the updated site and project plan for the Library Mixed-Use Project, which will include up to 125 100-percent affordable housing units alongside a two-story Library with over 40,000 square feet of programmable space.
 Secured the first-ever maintenance permit through the California Coastal Commission to conduct maintenance activities at the Wharf.
 Updated water rate structure, rates and fees to support the Water Department’s ongoing operations and investments in water system facilities, infrastructure and supplies.

2. Performance Metrics Quarterly Report (attached) – Fiscal Year (FY) 2020 Year-to-Date (July-September 2020) Compared to FY 2022 Year-to-Date (July-September 2021)1.

For the key revenue sources of sales tax, admissions tax, and transient occupancy tax, the City saw strong recovery in all areas, with Transient Occupancy Tax FY 2022 Q12 being

3.9% higher than FY 2020 Q1. Sales Tax FY 2022 Q1 was a little over 14.3% higher than FY 2020 Q1.3 Finally, while Admissions Tax in FY 2022 Q1 was 7.5% lower than FY 2020 Q1, it nonetheless made a very strong recovery this summer as the previous report saw Admissions tax being 75.0% lower for FY 2021 YTD compared to FY 2019 YTD.

While the City was open during Q1 2022, the delta variant and pandemic impacts continue to be felt in the business sector in the form of reluctance to open new businesses (down by

20.6% compared to FY 2020), and the Downtown commercial retail vacancy rate has remained relatively flat from this quarter compared to the previous reporting period (2.0% vs.

1.7%). As outlined in Economic Development’s agenda report for this same Council meeting, many programs are currently targeted toward addressing these areas – including 1 At the beginning of Re-Envision Santa Cruz’s reporting, FY 2019 (July 1, 2018 through June 30, 2019) was selected for comparison as the last full “standard” fiscal year that would not have COVID-19 impacts in its numbers.

Since metrics have now been reported for one fiscal year, the time horizon has rolled and now compares FY 2020 to FY 2022. Additionally, please remember that this report lags the narrative report by one quarter due to data availability from reporting sources.
2 Q1 for Santa Cruz’s fiscal year is July through September. 3 Sales Tax’s increase is also couched in the change in the state’s timing of distribution and the impact of the Wayfair decision. On June 21, 2018, the United States Supreme Court ruled in a 5-4 decision in South Dakota v.

Wayfair, Inc., et al, that states can generally require an out-of-state seller to collect and remit sales tax on sales to instate consumers even if the seller has no physical presence in the consumer's state.

18.3 Downtown Pops!, temporary extension of the commercial use permit abandonment period, and the temporary outdoor expansion program.

Building permits and the associated value of them (and therefore overall investment) almost caught up to FY 2020, with the City seeing a 1.60% decline in permits and a 1.8% decline in associated value as compared to FY 2020.

While the consumer revenue metrics are showing strength due to online consumption and the summer tourism months, the recovery of our local businesses remains impacted by the pandemic, with the likelihood of City programs targeted to assist being offset by the emergence of the COVID-19 omicron variant in the next reporting period.

FISCAL IMPACT: None.

Prepared/Submitted by:

Laura Schmidt
Assistant City Manager
Approved by:

Matt Huffaker
City Manager
ATTACHMENTS:

1. Re-Envision Santa Cruz Quarterly Progress Report

2. Re-Envision Santa Cruz Performance Metric Report

3. List of Projects – Re-Envision Santa Cruz

18.4 cityofsantacruz.com/recovery
Quarterly Report: October - December 2021
Summary
The Re-Envision Santa Cruz recovery plan squarely focuses the City on our community’s collective recovery and ongoing resilience. Through the 12-18 month plan, we will execute a bold vision centered on sustainability, equity, community engagement and essential service delivery. We will explore ways to inject our local economy with new jobs, green businesses, affordable housing and resilient green infrastructure. We will bolster what makes Santa Cruz special by supporting our businesses, advocating for new and improved funding sources, and reinvesting in the Downtown and infrastructure from roads and water to parks, facilities and open spaces.

During the fourth reporting period, City staff made progress toward the plan’s goals. Key accomplishments include:
• Adopted the Green Economy resolution and released Phase 1 of the Green Economy analysis as part of Climate Action Plan 2030.
• Began collaborations and partnerships with the County Office of Education, the Santa Cruz County Workforce Development Board, County Public Works and others to develop new opportunities for training local residents in various construction trades and green economy jobs. • Won awards totaling $44 million in grants and tax credits for the Pacific Station North and South projects. Pacific Station South is set to break ground by April 2022. • Received 16 grant applications for the City Arts Recovery Design (CARD) Pilot Grant Program. • Secured City Council approval for the updated site and project plan for the Library Mixed-Use Project, which will include up to 125 100-percent affordable housing units alongside a two-story Library with over 40,000 square feet of programmable space. • Secured the first-ever maintenance permit through the California Coastal Commission to conduct maintenance activities at the Wharf.
• Updated water rate structure, rates and fees to support the Water Department’s ongoing operations and investments in water system facilities, infrastructure and supplies.

18.5 Re-Envision Santa Cruz - Quarterly Report: October - December 2021 2 Downtown and Business Revitalization
Downtown Reinvestment
Downtown Recovery Plan
The Economic Development Department continues to work on the Downtown Recovery plan that includes a slate of programs intended to stimulate and rebuild the Downtown economy. First, the City Council approved an extension of the temporary outdoor expansion program through the end of December 2022, recognizing the need to provide businesses more security in their outdoor dining spaces with the ever-changing conditions of the pandemic. Second, Economic Development and the Downtown Association presented the second annual Shop Santa Cruz holiday shopping campaign to promote local spending and support our small businesses as they continue to recover from the ongoing impacts of the pandemic. The campaign, which ran from November and through the New Year’s holiday, included installing holiday-themed banners and signage, radio advertisements, a feature in the San Francisco Chronicle holiday guide, window clings with shop local messaging, and a series of events in the Downtown. Finally, Economic Development continued to implement the Downtown Pops! Vacant Storefront Activation Program, created in April 2021, with two tenants operating for the holidays receiving subsidized rent - Curated by the Sea and RREVV. Economic Development also took steps to secure three additional spaces for the program, two of which will be available in early 2022.

Downtown Plan Expansion
The effort to explore expanding the downtown plan boundary continued through the reporting period.

After completing an existing conditions analysis, a community meeting was held on Nov. 13, 2021. A project website was developed to elicit community feedback on the urban design and development options, and an online community survey was open through mid-December for additional feedback. This community feedback is now being reviewed, and City staff and the consultant team will be creating several draft development scenarios. These draft development scenarios will be presented to the public and the Planning Commission by spring 2022 to help select one development scenario for further study.

Economic Recovery and Resiliency
Arts in Recovery Grant Program Launch
The City Arts Recovery Design (CARD) Pilot Grant Program received 16 grant applications in December.

This portfolio reflects the broad talent of the local creative economy and artists’ interest in promoting economic recovery, restorative justice, and public health and safety in Santa Cruz. In the next few months, staff and Arts Commissioners will be evaluating the applications for funding potential based on available Public Art funds, anticipated impact and alignment with City priorities. In addition, staff will be looking for grant opportunities and will develop collaborative community relationships to leverage City resources.
5-Yr HUD1 Consolidated Action Plan - CARES Act2

A Consolidated Action Plan Evaluation Report (CAPER) with additional CDBG-CV3 related program reporting and analysis was submitted to HUD in October 2021. Beneficial programs this supported included: Farmer’s Market Match Program, additional COVID screening for Dientes, isolation and supportive services for Elderday and HOPE Services, expanded Meals on Wheels Programs, additional

1 US Department of Housing and Urban Development (HUD). 2 The Coronavirus Aid, Relief, and Economic Security (CARES) Act (2020) implemented a variety of economic stimulus programs to address issues related to the onset of the COVID-19 pandemic. 3 Community Development Block Grant, CARES.

18.6 Re-Envision Santa Cruz - Quarterly Report: October - December 2021 3 support for Second Harvest Food Bank, support for Emergency Eviction Prevention Program (EEPP) in partnership with Community Action Board and additional personal protective equipment (PPE) and pantry supplies for Santa Cruz Community Health Centers.

Increase Affordable and Market-Rate Housing
SRO/SOU Ordinance Amendments
Single Room Occupancy (SRO) and Small Ownership Unit (SOU) are housing developments that focus on smaller units. While SROs are a common unit type, SOUs are often rarer. The landscape of small unit development requirements is changing, and there has been a lot of recent State legislation focused on housing production. The Council-adopted Housing Blueprint Subcommittee recommendations directed staff to review the SRO and SOU ordinances to determine if changes can be made to better support housing production and increase the diversity of housing options in Santa Cruz. After research and internal collaboration, staff drafted an ordinance amendment and presented the item to the Planning Commission in October 2021 for recommendation to the City Council. Planning Commission decided to continue the item and create a subcommittee to discuss the amendments with staff further. The Subcommittee and staff held meetings in November and December, and the Small Units Ordinance Amendments item is expected to be heard by Planning Commission again in early 2022.

Housing Element Update
The Housing Element Update is a required document that shows the State how the City intends to meet specified housing goals for a given eight-year time period. The City’s next Housing Element eight-year cycle is from 2024 through 2031, so the Housing Element must be updated by December 2023. Staff has begun developing a request for proposals (RFP) to be released in early 2022 for a qualified consultant to assist in the update project. Once the City receives final Regional Housing Needs Allocation numbers from the Association of Monterey Bay Area Governments in the first half of 2022, formal work on the Housing Element Update will begin.

Objective Standards
The State of California now requires cities to only use objective standards when reviewing residential development proposals. The City has existing objective standards in place, but there are also standards that are not fully objective and need to be updated. Following several months of community engagement, the first draft of the new objective standards was completed in October 2021. These draft standards were presented to the Planning Commission at its Nov. 4 meeting and a virtual community meeting on Nov. 10. The standards were available for public review for one month through early December. The project team is now reviewing comments from the Planning Commission and the public and developing final draft standards. The final draft standards will then be presented to the Planning Commission and City Council for adoption in spring 2022.

Analysis of Impediments to Fair Housing (AI)
Neighborhood Revitalization Strategy Area (NRSA)
As part of coordinating the multiple HUD plans due in June 2022, the ED Housing Division requested an extension of the current NRSA plan in October 2021. The San Francisco HUD field office approved the extension, allowing the current NRSA to stay in place until June 2023. Additionally, the Housing team coordinated with the HUD Equal Opportunity and Fair Housing division to better align the Analysis of Impediments to Fair Housing (AI) with the timeline and body of work related to the Housing Elements report so that outreach and data analysis can be streamlined.

18.7 Re-Envision Santa Cruz - Quarterly Report: October - December 2021 4 Pacific Station North and South
The Pacific Station South project was awarded a reservation of 9% affordable housing tax credits, which equal around $22.6 million. This was the last of seven funding sources needed to close the financing gap to build the housing. This funding source also has a hard performance deadline to start construction in April 2022. The City was awarded a State HCD Infill & Infrastructure (IIG) grant for approximately $20.9 million. The funding will support site preparation and infrastructure for the planned Pacific Station housing, newly renovated METRO transit station and surrounding improvements. The team also submitted a State Permanent Local Housing Allocation funding application for $415,000.

Library Mixed-Use Project + Affordable Housing
Staff and the project team held nine community meetings between October and December on the preliminary design of the proposed new Library. At the Dec. 14, 2021 meeting, the City Council approved the updated site and project plan for the Library Mixed-Use Project with the following changes: 1) an increase in affordable housing units from a minimum of 50 to a minimum range of between 100-125 units; 2) a decrease in the parking count from 400 to 310 parking stalls; 3) program expansion to include an on-site daycare facility; 4) approval of Library design changes to include a two-story Library facing Cedar and Lincoln Streets with a green roof and adjacent roof deck which allowed for greater site efficiencies enabling an expansion of the library program and an increase in the affordable housing units as well as an enhancement of the sustainable project features. Design development drawings are now underway for the mixed-use project.

Fiscal Sustainability
New and Improved Funding Sources
Grant Writing Managed Service
The City hired B&A Associates to deliver a basic framework to assist with strategic planning of grant opportunities and resources, identifying needs and aligning priorities. Since that time, the City Manager’s Office (CMO) has led the City departments in a strategic grant planning effort. It aims to deliver a grant opportunity strategic plan around late February 2022. Meanwhile, the consultant is working with CMO to pilot a grant writing partnership to pursue Federal Emergency Management Agency (FEMA) funds for the City’s update of the Local Hazard Mitigation Plan (LHMP) and Climate Adaptation Plan. Maintaining certification of the LHMP enables the City to be eligible for certain FEMA funding, and updating the Climate Adaptation Plan enables the City to be competitive on state funding for climate resilience (with the latest State budget containing record-setting funding for this purpose).

The City is also considering a proposal from B&A to actively track grant opportunities and share those with City departments for consideration for application.

Cannabis Ordinance Amendments
A team consisting of staff from the Planning and Community Development Department, the Police Department, and the City Attorney’s Office convened in spring 2021 to discuss potential changes to the enforcement of illegal cannabis activity to better support legal cannabis operators in the City of Santa Cruz. This team then coordinated with the County of Santa Cruz to institute a similar cannabis enforcement program used by County. The City continues to work out project details and possibly draft an illegal cannabis enforcement ordinance amendment in the spring of 2022.

18.8 Re-Envision Santa Cruz - Quarterly Report: October - December 2021 5 Cannabis Equity Grant
The City Council approved the Cannabis Equity Assessment at the Oct. 12, 2021 meeting. The City of Santa Cruz Cannabis Equity Assessment provides a data-informed look at the history of impacts of poverty and the criminalization of cannabis on the community. The assessment includes policy recommendations to guide creating a local cannabis equity program. The program can assist community members who experienced harm from decades of criminalization of cannabis and poverty and support their participation in the legal cannabis industry in the City of Santa Cruz. The Assessment was the first major milestone in completing our State grant-funded scope of work. The final step is to adopt the Equity Program manual and begin implementing the City’s Cannabis Equity Program. The adoption of the program manual will also meet the eligibility requirements for future State grant funds for the program’s operation.

Skypark Disposition
Economic Development staff, working with the City of Scotts Valley, has contracted with Weber-Hayes to conduct environmental characterization of the Skypark Property. This work is needed to address uncertainty around hazardous materials on-site as this uncertainty has derailed previous efforts to liquidate the property. The City of Scotts Valley is also seeking easements along Mount Hermon Road to install new sidewalks. Additionally, staff is working with Santa Cruz County Environmental Health and Pratt (neighboring property owner) on an agreement for ongoing maintenance of water monitoring wells on site and eventual decommissioning of those wells.

DeLaveaga Disc Golf Fees
The Parks and Recreation Department is finalizing an MOU with DeLaveaga Disc Golf Club to formalize the partnership and will work together to conduct a feasibility analysis and develop a plan for pay-toplay first half of 2022.

Recreation Programming Plan/Revenue Policy
Parks and Recreation completed a Revenue Policy and will finalize a Recreation Programming Plan.

Elements of the policy and plan are already in operation, such as a partnership with Simpkins Swim Center to operate the Harvey West Pool through the winter and spring seasons. The fees charged to County Parks (Simpkins Swim Center) capture full cost recovery at the pool, generating revenue for the City’s General Fund.

Infrastructure
Green Economy and Workforce
Workforce Development Initiative
A major focus of the workforce development initiative during the calendar year 2021 was outreach and partnership development. During the last quarter of 2021, the City core team of Interim City Manager Rosemary Menard, HR Director Lisa Murphy, Public Works Director Mark Dettle, Economic Development Director Bonnie Lipscomb, Sustainability and Climate Action Manager Tiffany Wise-West and Communications Manager Elizabeth Smith held exciting and informative sessions with representatives of Cabrillo College’s Workforce Development Programs, engaged with workforce development staff from the Community Action Board, Your Future is Our Business, and United Way of Santa Cruz County, and received a report by the City’s consultant team working on the updated to the Climate Action Plan on the green economy opportunities and challenges.

18.9 Re-Envision Santa Cruz - Quarterly Report: October - December 2021 6 Uniformly, the conversations and engagements of those attending these monthly workforce development initiative meetings have indicated that several opportunities exist for collaborations and partnerships with the County Office of Education, the Santa Cruz County Workforce Development Board, County Public Works and others to develop new opportunities for training local residents in various construction trades and green economy jobs. During the first calendar quarter of 2022, the work will move forward from the partnership building and outreach stages to the actions such as hosting career days, job fairs and working on assisting those completing the County Office of Education’s new PreApprenticeship Program to move into one of several next-step training and development opportunities.

Examples include additional education via Cabrillo College’s programs and services, formal apprenticeships, and city or county trainee-type positions.

Resilient Coast Santa Cruz and Other Pending Grant Projects On Apr. 27, City Council adopted the West Cliff Drive Adaptation and Management Plan, 2021 to establish a vision for proactive coastal management in the face of climate change. It currently is in local level informal review at the California Coastal Commission. Staff members are in consultation with local Commission staff on the plan and its accompanying Resilient Coast work product, the Local Coastal Program Amendment, with sea-level rise policies. They aim for spring 2022 for formal submission of both. Staff also initiated working with partners to develop the coastal change monitoring system (grant pending) and the funding strategy to implement the projects in the plan.

Climate and Energy Action Plan, including Green Economy / Green Recovery Analysis The Climate and Energy Action Plan 2030 development process, Resilient Together, was initiated in April 2021 and will identify the City’s most equitable pathway to carbon neutrality. Staff has conducted two of 4 phases of community engagement to craft the vision and goals of the plan, supported by local equity advisors. With the recent release of the CAP 2030 green economy analysis phase 1 to set the stage for the development of job-supporting climate actions in the next phase of the project, the City also adopted a green economy resolution. The resolution adopted on Dec. 14, 2021 summarizes green economy activities to date and reaffirms the City’s commitment to bolstering high-quality, living wage jobs that protect the environment. Staff and the community will participate in a city council study session on Jan. 18, 2022 to discuss the legal and aspirational CAP 2030 goals under consideration.

Existing Building Decarbonization Retrofit Study
The Existing Building Decarbonization Retrofit Study will determine the most equitable strategy for rapid electrification of existing buildings. The term “Building Electrification” refers to constructing new buildings or retrofitting existing buildings to utilize electric-powered building systems and/or appliances and transitioning away from natural gas-powered building systems and/or appliances. Building electrification will eliminate 26% of community-wide emissions attributed to building energy use.

Staff completed the project’s first phase technical analysis, analyzing building stock characteristics and potential cost impacts to electrify them, feeding into the Climate and Energy Action Plan 2030 process, Resilient Together. Staff is also participating with the NAACP of Santa Cruz County as an equity partner in the Rocky Mountain Institute’s Equitable Home Electrification Program. The City’s Carbon Fund recently awarded funding for the second phase of consultant resources to assist with the technical aspects of the RMI program and to craft the most equitable strategy for rapid electrification of existing buildings by summer 2022. Staff is working with regional partners to seek funding for mutual building electrification priorities, e.g., implementation and workforce development. The federal infrastructure bill will also contain funding for these purposes.

18.10 Re-Envision Santa Cruz - Quarterly Report: October - December 2021 7 Municipal Fleet Electrification Plan
The City completed initial work on municipal fleet electrification planning in September 2021. The City also recently obtained funding for electrified refuse trucks and other landscaping and heavy duty equipment. The Public Works facilities and energy division are completing charging infrastructure projects to accommodate these electrified assets. In early 2022, the City plans to conduct a strategy session and participate in consultation with Central Coast Community Energy to optimize obtaining funding and resources to accelerate our fleet electrification efforts through four new municipallyfocused programs: (1) a Light Duty Fleet Vehicle Electrification Program to coordinate with municipal budgeting cycles; (2) a Planning, Implementation, and Innovation Grants Program to advance specific and measurable outcomes around planning and implementation to electrify municipal operations, including fleets and/or properties; (3) a Medium Duty/Heavy Duty Vehicle Electrification Program: to assist in funding the gap between fossil fuel-based vehicles to electric vehicles; and (4) Building Electrification & Transportation Electrification working groups.

Public Facility Maintenance and Energy Upgrades
Solar plans for Harvey West, the Civic (new roof) and the Soquel/Front garage are being drafted.

Installation for a PG&E loan for the Civic and Harvey West boiler upgrades is almost complete. The Police Department building automated system installation is complete.

Parks, Recreation and Open Spaces
Pogonip Vegetation Management Program
In November, in partnership with Parks and Recreation, the Fire Department identified multiple areas within Pogonip for future vegetation management projects. These areas include the Spring, Lookout, Harvey West Trails and the adjacent canyons. These projects would aid in providing a reduced fire risk in this wildland urban interface (WUI) area and increased access for fire and parks crews. The Fire Department is working on securing additional grant funding for these projects.

Wildland Urban Interface (WUI) 5-Year Vegetation Management Plan As the Fire Department continues to develop work plans and maps for a vegetation management plan for the City’s open spaces, grant funding has been identified and secured. In late October 2021, the Fire and Parks and Recreation Departments completed a shaded fuel break project in lower DeLaveaga. This included treating nearly three acres and creating a shaded fuel break along the Old Vineyard Trail between Brookwood Dr and Pacheco Ave. Completing this and other similar projects will reduce fire risk to the surrounding communities, reduce the potential for negative environmental and climate change impacts and aid the Fire Department in defining the five-year vegetation management plan for the City’s open spaces.

Harvest West Pool Feasibility Study
The Pool Feasibility Study will begin in February with the goal of having a final analysis by summer 2022.

Wharf Economic Development Administration (EDA) Grant for Piling Replacement Staff anticipates seeking Council approval to conduct a bidding process on the piling replacement project in spring 2022. Construction work has a tentative start date of August/September 2022.

Wharf Public Works Plan
In September 2021, Parks & Recreation secured the first-ever maintenance permit through the California Coastal Commission to conduct maintenance activities at the Wharf. It is a one-year permit

18.11 Re-Envision Santa Cruz - Quarterly Report: October - December 2021 8 and will be an opportunity to evaluate how it works in the context of ongoing maintenance needs and functions at the Wharf. Long-term, the department will look to develop a full “public works plan” to serve as a multi-year maintenance permit and guiding document for Wharf maintenance.

Monterey Bay Sanctuary Scenic Trail (MBSST) Rail Trail Segment 7 Phase 2 The project is scheduled to bid in January, with bids due at the end of February.

Resiliency and Improvements
Pure Water Soquel Creek Water District
Construction of the Source Water Pump Station and Tertiary Treatment Facility (TTF) at the COSC Wastewater Treatment Facility began in November 2021. The pump station will send secondary effluent to the Pure Water Soquel Advanced Water Purification Facility. The TTF will provide Title 22 recycled water for City of Santa Cruz’s use. Construction is anticipated to take over a year. Garney Construction is installing pipe on its way toward the Laurel Street bridge this month. Pipe materials for the bridge are delayed, so Garney will skip the bridge for now and continue work on the east side of the bridge in February.

State Route 1/9 Intersection Improvement Project
The project is under construction and is anticipated to be completed this summer. The project fact sheet can be found at: https://tinyurl.com/2p8h257j
Water Capital Improvement Program
Significant progress is being made on the rehabilitation and replacement of existing water system infrastructure. The Newell Creek Dam Inlet/Outlet Replacement Project, an approximately $100 million project to ensure reliable access to stored water in Loch Lomond Reservoir, is nearly 70 percent complete, with an expected completion date of December 2022. The Laguna Diversion Retrofit Project, a $3.8 million project to meet modern standards for diverting water from active streams inhabited by endangered species, is complete. The Meter Replacement project, an approximately $12 million project to improve meter accuracy and provide real-time information to the customer, has been launched, and nearly $200 million of water treatment plant improvements are underway. The Department has been invited to apply for federal funding through the Water Infrastructure Finance and Innovation Act. This low-interest funding of $164M will improve the financial implications to the ratepayer and fund several projects, including Graham Hill Water Treatment plan Facility Improvement Plan, Water Supply, Newell Creek Pipeline and U4 tank.

Water Urban Water Management Plan
Two mandatory planning documents were completed and adopted by the City Council in November 2021: The Urban Water Management Plan (UWMP) and the Water Shortage Contingency Plan (WSCP).

These state-required planning documents form the basis of long-term water supply planning (UWMP) and a roadmap for water use reductions during periods of supply shortages (WSCP). The draft WSCP was put into use to implement a Stage 1 water shortage during summer 2021.

Updated Long-Range Financial Plan and Water Rates
The City Council adopted the 2021 Water Department Long-Range Financial Plan (09/21/2021) and updated water rate structure, rates and fees (11/23/2021) to support the Water Department’s ongoing operations and investments in water system facilities, infrastructure and supplies. These investments will help to ensure reliable water service during normal and increasingly extreme weather conditions resulting from climate change and already being experienced in Santa Cruz.

18.12 Metric
July 2019-
September 2019
FY 2020 YTD
July 2021 -
September 2021
FY 2022 YTD
% Change
Between Fiscal
Years
Previous
Reporting Period
(FY 2019 YTD vs.

FY 2021 YTD) Notes:

Business Licenses Issued 100 54 -46.00% -50.85%
Average Downtown Retail
Commercial Vacancy Rate 3.80% 5.80% +2.00% +1.65% This metric has shifted to focus on the Downtown retail vacancy rate as staff determined that the data is more reliable.

Business Closures Reported
A. Closures Reported
B. Utility Terminations
A. 101
B. 24
A. 32
B. 29
A. -68.32%
B. +20.83%
A. -62.40%
B. +11.76%
A. The number of discontinued business licenses is only what is reported to us by business owners. The data does not account for the potential business owners who do not report to the City that they are closing.

B. Thus, we are also using data from Santa Cruz Municipal Utilities to see if there is data that sheds different light in this area. We assume that utilities are a more proactive approach since business owners terminate service once the business closes to avoid ongoing fees.

Number of Permits Issued
A. Planning Applications
B. Building Permits
A. 136
B. 499
A. 70
B. 491
A. -48.53
B. -1.60%
A. -57.89%
B. -11.94%
Number of planning applications is number of planning applications approved
Total Valuation of Building Permits
Issued $20,502,461 $20,130,651 -1.81% -7.13% These permits capture (most) residential, commercial and industrial construction activity => overall investment.

Transient Occupancy Tax (TOT)
Revenue
$3,826,313 $3,976,510 +3.93% -18.45%
Sales Tax Revenue $6,099,264 $6,973,402 +14.33% +5.97%
Admission Tax Revenue $1,062,637 $983,409 7.46% -75.12% General Fund Reserve ~$25,500,000 ~$18,200,000 -29.20% ANNUAL FY 2021 is estimated year-end fund balance as of 11/2021.

FY 2022 is estimated year-end fund balance as of 11/2021.

General Fund Capital Maintenance
Budget $2,581,135 $2,875,762 +11.41% ANNUAL Numbers are adopted budget.

Maintenance of Parks and Open
Space - Labor Hours per Acre for
Fiscal Year
A. Budgeted
B. Actual
A. 69.77
B. 61.35
A. 68.57
B. 60.15
A. -1.72%
B. -1.96%
A. -4.92%
B. -13.71%
Since Shelter-in-Place orders have been issued, parks and open space usage has surged. So, while usage has increased, maintenance budgeted and actually done has decreased. Parks and Rec is currently working on a process to further refine the actual hours.

Maintenance of Recreational
Facilities - Labor Hours per 1,000
square feet for Fiscal Year
A. Budgeted
B. Actual
A. 99.54
B. Actual Not
Available
A. 99.54
B. Actual Not
Available
A. 0.00%
B. Not Available
A. 0.00%
B. Not Available Parks and Rec is currently working on a process to measure actual hours.

Interim Recovery Plan
Year-to-Date (YTD) Fiscal Year Comparison Metrics Report

18.13 City of Santa Cruz ‐ Re‐Envision Santa Cruz
Projects for Our 12‐18 Month Interim Recovery Plan
January 1, 2021 ‐ June 30, 2022
ID Focus Area Project Category Project
Lead
Department Long(er) Description Re‐Envision Recovery
Green
Economy
Engaged
Community
Equity and
Well‐being
Essential
Service
Delivery
93 Downtown and Business
Revitalization
Downtown Reinvestment Downtown Recovery Plan ED Expansion of Downtown Needs Assessment efforts, expanded into pandemic recovery. X
113 Downtown and Business
Revitalization
Downtown Reinvestment Pacific Avenue Beautification ED RDA bond‐funded and Council approved project based on the Downtown Design Standards including landscaping, sidewalk improvements, lighting, security and some construction costs for placemaking and activation.

X
114 Downtown and Business
Revitalization
Downtown Reinvestment Downtown Alley Improvements ED Bond funded and Council approved Capital Improvement Project to include lighting, placemaking an wayfinding improvements in downtown alleys.

X
115 Downtown and Business
Revitalization
Downtown Reinvestment Lower Pacific Ave Improvements ED Bond‐funded and Council‐approved Infrastructure improvements including parking, street beautification and other related improvements in connection with the METRO project
X
76 Downtown and Business
Revitalization
Downtown Reinvestment Library Mixed‐Use Project ED 35,000‐40,000 square foot new public library, 50‐75 affordable units, commercial/retail and up to 400 public parking spaces.

X XXX
80 Downtown and Business
Revitalization
Downtown Reinvestment Library /Civic Core Revisioning
Process/Project
ED Re‐envisioning of future use of existing library site as part of a larger civic core revitalization project. XX X
79 Downtown and Business
Revitalization
Downtown Reinvestment Farmers' Market Permanent
Location/Structure
ED Permanent downtown home and year‐round structure for farmers' market.
42 Downtown and Business
Revitalization
Downtown Reinvestment Downtown Plan Expansion PLACD Grant‐funded planning for expansion of the Downtown Plan into areas that currently have lower allowed development intensity. The expansion is expected to move the Downtown. The process will increase development capacity for housing and commercial/office uses.

X
21 Downtown and Business
Revitalization
Downtown Reinvestment Parking District Infrastructure PW Design and construct various infrastructure projects within the Downtown parking District.

XX
82 Downtown and Business
Revitalization
Economic Recovery and Resiliency Arts in Recovery Grant Program Launch
ED Design and implement grant program to improve efficiency and expand community involvement in City Arts
programming.

X
99 Downtown and Business
Revitalization
Economic Recovery and Resiliency Economic Development Strategy ED Five year strategic work plan guiding the focus of business development division. XX
78 Downtown and Business
Revitalization
Economic Recovery and Resiliency Grow Santa Cruz Loan Program ED Expanded revolving loan program leveraged with EDA grant funds, focused on pandemic recovery. X
77 Downtown and Business
Revitalization
Economic Recovery and Resiliency Permanent Outdoor Expansion Program
ED Use of public and private adjacent parking areas for outdoor dining. X
92 Downtown and Business
Revitalization
Economic Recovery and Resiliency Permanent Warriors Arena ED Permanent home for SC Warriors and possible mixed‐use project.

XX
98 Downtown and Business
Revitalization
Economic Recovery and Resiliency Wharf Property Management Tenant Retention + Re‐leasing Strategy
ED Specific Wharf strategy to address vacancies and potential new lease rates in an effort to retain City tenants and ensure businesses remain solvent. Re‐leasing vacant City owned spaces
X
68 Downtown and Business
Revitalization
Increase Affordable and Market Rate Housing
Putney Perry Acquisition ED Parcels needed for Pac South site assemblage.

XX
73 Downtown and Business
Revitalization
Increase Affordable and Market Rate Housing
Fee Waiver/Deferral Process ED For multiple upcoming affordable housing projects (125 Coral, Calvary‐Cedar, PacNorth and PacSouth and Library mixed use housing).

XX
74 Downtown and Business
Revitalization
Increase Affordable and Market Rate Housing
Establish Lease‐up Process for AB 2162 Units Working with Housing Authority & County
ED For multiple upcoming affordable housing projects utilizing AB 2162 (Calvary, PacSouth, PacNorth and Library Mixed
Use).

XX
21‐04‐06 Final Project List.xlsx Page 1 of 6 18.14 4/16/2021 11:53 AM City of Santa Cruz ‐ Re‐Envision Santa Cruz
Projects for Our 12‐18 Month Interim Recovery Plan
January 1, 2021 ‐ June 30, 2022
ID Focus Area Project Category Project
Lead
Department Long(er) Description Re‐Envision Recovery
Green
Economy
Engaged
Community
Equity and
Well‐being
Essential
Service
Delivery
60 Downtown and Business
Revitalization
Increase Affordable and Market Rate Housing
Pacific Station South ED 85 unit affordable housing mixed use project. 20,000 square foot office/medical for Santa Cruz Community Health Center and Dientes, providing low‐cost community medical and dental care and approximately 4,000 square foot retail frontage on Pacific.Coastal Permit to demolish three commercial buildings and construct a seven‐story, mixed‐use building with 85 affordable residential apartments, 15,228 square feet of ground floor commercial and residential amenity space, and 15,665 feet of medical office space on the second floor, on a property located within the CBD/CZ‐O/FP‐O zone district and within the Pacific Avenue Retail District and Front Street/Riverfront Corridor subareas of the Downtown Pl
XX
61 Downtown and Business
Revitalization
Increase Affordable and Market Rate Housing
Pacific Station North ED 89‐100 unit affordable housing and mixed‐use transit center with METRO, and approximately 5,000 commercial retail frontage on Pacific.

XX
90 Downtown and Business
Revitalization
Increase Affordable and Market Rate Housing
5‐Yr HUD Consolidated Action Plan ‐ CARES Act
ED CARES Act (CDBG‐CV) funding allocations require additional reporting and planning. X
110 Downtown and Business
Revitalization
Increase Affordable and Market Rate Housing
Affordable Housing Agreements: New Development Projects ED As new housing projects are developed, it is a requirement to execute affordability, participation and other agreements between the developer/owner and the City. There is also ongoing management and review of these agreements both through the annual monitoring and through communications between owners and staff.

X
111 Downtown and Business
Revitalization
Increase Affordable and Market Rate Housing
Analysis of Impediments to Fair Housing (AI)
ED Assist, research and coordinate effort as needed for Analysis of Impediments to Fair Housing (AI). Complete trainings, research requirements and procedure for applying. Coordinating with outside agencies, advance planning and possibly consultants. Plan timeline and needed deliverables for AI. Develop work‐plan and strategize due date in coordination with NRSA due date.

XX
83 Downtown and Business
Revitalization
Increase Affordable and Market Rate Housing
Inclusionary Housing Ordinance‐Workforce Housing Definition ED Develop a workforce housing component of the
Inclusionary housing ordinance, including an employer housing and school housing option.

XX
84 Downtown and Business
Revitalization
Increase Affordable and Market Rate Housing
555 Pacific ED Renegotiation of existing development agreement. X 86 Downtown and Business
Revitalization
Increase Affordable and Market Rate Housing
Develop Affordable Housing Academy ED Per City Council sub‐committee and Council adopted Housing Blueprint Recommendations, create an annual Affordable Housing Academy program for the public to educate on affordable housing in Santa Cruz and affordable housing production.

XX X
112 Downtown and Business
Revitalization
Increase Affordable and Market Rate Housing
Neighborhood Revitalization Strategy Area (NRSA)
ED Evaluate City NRSA for alignment with HUD objectives and requirements, planning of timeline for updating NRSA (due June 2022). Coordinate and investigate timeline and requirements to strategize deliverable deadlines.

XX
62 Downtown and Business
Revitalization
Increase Affordable and Market Rate Housing
190 West Cliff PLACD Coastal Permit, Design Permit, Special Use Permit, Density Bonus Request to exceed height, Encroachment Permit for street and intersection improvements, and Tentative Map to construct a four‐story mixed use project consisting of two levels of underground parking, ground level commercial, and 89 residential condominium units on a parcel located in the RTB(PER)/CZ‐O/SP‐O zone district.

XX
21‐04‐06 Final Project List.xlsx Page 2 of 6 18.15 4/16/2021 11:53 AM City of Santa Cruz ‐ Re‐Envision Santa Cruz
Projects for Our 12‐18 Month Interim Recovery Plan
January 1, 2021 ‐ June 30, 2022
ID Focus Area Project Category Project
Lead
Department Long(er) Description Re‐Envision Recovery
Green
Economy
Engaged
Community
Equity and
Well‐being
Essential
Service
Delivery
63 Downtown and Business
Revitalization
Increase Affordable and Market Rate Housing
Front Street Project PLACD Coastal Permit, Non‐Residential Demolition Authorization Permits, Design Permit, Tentative Map, Special Use Permit, Administrative Use Permit, Revocable License for Outdoor Extension Area, Heritage Tree Removal Permit, and Street Tree Removal to remove one street tree and three heritage trees, to combine five parcels, demolish three commercial buildings including two historic commercial buildings, and to construct a seven‐story, mixed‐use building with 175 residential condos and 11,498 square feet of ground floor and levee front commercial space on property located within the CBD (Central Business District)/CZ‐O (Coastal Zone Overlay)/FP‐O (Floodplain Overlay) zone district and within the Front Street/Riverfront subarea of the Downtown Plan
XX
50 Downtown and Business
Revitalization
Increase Affordable and Market Rate Housing
SRO/SOU Ordinance Amendments PLACD Updates to the Single‐room Occupancy (SRO) and Small Unit Occupancy Ordinances were described in the Council Housing Blueprint Subcommittee recommendations to add more clarity and better coordination of regulations of these two housing types.

X
44 Downtown and Business
Revitalization
Increase Affordable and Market Rate Housing
Housing Element Update PLACD The City of Santa Cruz must update its General Plan Housing Element every eight years. This update will include existing conditions analysis of housing in the City, public outreach, development of policies and objectives, environmental documentation, and adoption of the final Housing Element document.

X
43 Downtown and Business
Revitalization
Increase Affordable and Market Rate Housing
Objective Standards PLACD Planning has received grant funding to create objective development standards for multi‐family residential projects. The State of California now requires cities to only use objective standards when reviewing residential development proposals. Development of the standards will include public participation and review by Planning Commission throughout the process.

X
109 Fiscal Sustainability Efficient Service Delivery Digitization of Annual Compliance Monitoring
ED Project to convert the Annual paper monitoring process to an online, digital process to facilitate the completion of annual monitoring and to adapt to the changing needs in COVID and post‐COVID climate.

X
36 Fiscal Sustainability Efficient Service Delivery Land Use Management Upgrade (TRAKiT)
IT The City has used TRAKiT, for over a decade for land use management, permitting and licensing. The current version of TRAKiT is nearing end of support status from the vendor, making the upgrade a high priority for departments citywide. This upgrade is an opportunity for the City to review and refine existing business processes for efficiency and assess data and reporting needs.

X
39 Fiscal Sustainability Efficient Service Delivery MyCityofSantaCruz Phase 2 IT Add additional payment types to MyCityofSantaCruz.

Payment types to be determined, but likely to include payments for building and planning applications/permits, TOT, Cannabis and Parking Tickets/Permits.

X
54 Fiscal Sustainability Efficient Service Delivery Digital Intake ‐ Building PLACD Convert the previous paper‐only submittal process to all‐ electronic plan review for building permits. X
55 Fiscal Sustainability Efficient Service Delivery Digital Plan Review ‐ Building PLACD Digital review of building plan sets received from applicants. X
58 Fiscal Sustainability Efficient Service Delivery Online Rental Inspection Scheduling PLACD Update software systems to allow for customers to schedule their own rental inspections online, thereby
saving staff time
X
159 Fiscal Sustainability New and Improved Funding Sources Grant Writing Managed Service CMO Develop business case for using consulting services for grant research and writing to maximize grants awarded to City, with built in cost recovery of consulting services.

X
139 Fiscal Sustainability New and Improved Funding Sources Revenue Ballot Measure CN Explore the feasibility of a sales tax ballot measure for in November 2021. XX
21‐04‐06 Final Project List.xlsx Page 3 of 6 18.16 4/16/2021 11:53 AM City of Santa Cruz ‐ Re‐Envision Santa Cruz
Projects for Our 12‐18 Month Interim Recovery Plan
January 1, 2021 ‐ June 30, 2022
ID Focus Area Project Category Project
Lead
Department Long(er) Description Re‐Envision Recovery
Green
Economy
Engaged
Community
Equity and
Well‐being
Essential
Service
Delivery
117 Fiscal Sustainability New and Improved Funding Sources Cannabis Equity Grant ED GoBiz state‐funded project to conduct an equity assessment of the cannabis industry and impact of the war on drugs locally and to develop a local equity program to provide resources and support to equity applicants for the cannabis industry.

XX
85 Fiscal Sustainability New and Improved Funding Sources State/Federal Funding Grants ED Applying for competitive funding for affordable housing and community development opportunities.

XX
94 Fiscal Sustainability New and Improved Funding Sources Skypark Disposition ED Sale of City‐owned property in Scotts Valley. X53 Fiscal Sustainability New and Improved Funding Sources Impact Fee Development ‐ Public Safety and Childcare
PLACD Completion of Child Care and Public Safety Impact Fee studies to determine fee amount, and consideration to adopt three new development fees.

XX
49 Fiscal Sustainability New and Improved Funding Sources Cannabis Ordinance Amendments PLACD A coordinated effort to amend cannabis regulations with the aim to provide greater enforcement of illegal cannabis activity to better support legal cannabis businesses in the City.

X
56 Fiscal Sustainability New and Improved Funding Sources Fee Studies ‐ Building, Code, Misc Fees.

PLACD Completion of study of fees for service related to building permits. Current fee structure based off of 1997 Administrative Building Codes. Other fees may be included such as code fees and other administrative fees like administrative fee for completing payments in person, and fees to cover extended outreach services for planning applications.

X
57 Fiscal Sustainability New and Improved Funding Sources Revision to Code Compliance Division Fee Schedule
PLACD Updating division charges from actual costs to flat rates. X 120 Fiscal Sustainability New and Improved Funding Sources Wharf Parking Fee Increase PR Raising parking fees on the Wharf to generate additional revenues.

X
127 Fiscal Sustainability New and Improved Funding Sources DeLaveaga Disc Golf Fees PR Develop infrastructure and business plan around monetizing disc golf at DeLaveaga. X
132 Fiscal Sustainability New and Improved Funding Sources Recreation Programming Plan/Revenue Policy
PR Update fees, cost recovery targets, and fiscal sustainability plan for Recreation.

X
145 Fiscal Sustainability New and Improved Funding Sources PR Contract Partner Agreements PR Wide‐ranging updates to contracts with P&R partners for programs and services to change fee structures, liability, and expectations.

X
126 Fiscal Sustainability New and Improved Funding Sources West Cliff Parking Fees PR Implement parking fees on West Cliff Drive to generate revenue.

X
146 Fiscal Sustainability New and Improved Funding Sources Updated Water Rates WT The current water rate schedule expires on 6‐30‐21. New rates are required to provided fiscal sustainability for the Water Department and support ongoing work for infrastructure and supply reliability and sustainability.

X
2 Fiscal Sustainability New and Improved Funding Sources City's Re‐envision Santa Cruz ‐ State and Federal Communication and Outreach Plan
WT Develop and implement an integrated state and federal communication and outreach plan for the Santa Cruz Community Investment and Reinvestment Initiative.

X XXXX
28 Infrastructure Green Economy and Workforce Resilient Coast Santa Cruz + Other Pending Grant Projects
CMO West Cliff Drive Public Works Plan adopted by 5/1/2021; LCP amendment adopted by 6/1/2021; 3 new projects identified during Resilient Coast are pending final stage grant award.

X
29 Infrastructure Green Economy and Workforce Climate and Energy Action Plan including Green Economy / Green Recovery Analysis
CMO Determine quick to implement strategies that benefit economy and climate and longer term strategies that support both.

X
35 Infrastructure Green Economy and Workforce Existing Building Decarbonization Retrofit Study
CMO Identify markets, pathways and incentives for existing building electrification retrofits. Proposal pending requested funding from 3C with SLO and SC resources matches pledged.

X
33 Infrastructure Green Economy and Workforce Green Workforce Development Initiative
ED Develop a series of strategies to increase the number of Green Economy jobs and local businesses working on improvement projects with the City. Could include: Mayors Roundtables on Green Economy/Climate Readiness, and other concepts.

XXXX
21‐04‐06 Final Project List.xlsx Page 4 of 6 18.17 4/16/2021 11:53 AM City of Santa Cruz ‐ Re‐Envision Santa Cruz
Projects for Our 12‐18 Month Interim Recovery Plan
January 1, 2021 ‐ June 30, 2022
ID Focus Area Project Category Project
Lead
Department Long(er) Description Re‐Envision Recovery
Green
Economy
Engaged
Community
Equity and
Well‐being
Essential
Service
Delivery
32 Infrastructure Green Economy and Workforce Municipal Fleet Electrification Plan PW Will be completed as part of the PW facilities division work plan in September 2021. X
25 Infrastructure Green Economy and Workforce Public Facility Maintenance and Energy Upgrades
PW Some energy upgrades in progress. Building Maintenance minimally funded.

X
34 Infrastructure Green Economy and Workforce Planning and Funding of West Cliff Drive (WCD) Project
PW WCD adopted by May 1; FY22 CIP and next step
studies/design will be prioritized for funding and
implementation.
3 Infrastructure Green Economy and Workforce City's Build Back Better ‐Workforce Development Initiative
WT City's Build Back Better ‐ Develop and implement a
Workforce Development Initiative.From #33: See developing proposal for other actions, e.g., Mayors Roundtables on Green Economy/Climate Readiness; WTR and other concepts.

XXXX
4 Infrastructure Green Economy and Workforce City's Re‐envision Santa Cruz ‐ Infrastructure and Facilities List
WT Develop the Integrated and Comprehensive Infrastructure and Facilities List to inform local businesses of upcoming projects.

XX
1 Infrastructure Green Economy and Workforce City's Re‐envision Santa Cruz ‐ Integrated and Strategic
Communications
WT Develop and implement an integrated and Strategic
Communication Initiative. XX X
0 Infrastructure Green Economy and Workforce City's Re‐envision Santa Cruz ‐ Community Investment / Reinvestment Strategy
WT Community Investment / Reinvestment Initiative includes projects and initiatives related to: Green Economy; Infrastructure Rehabilitation and Replacement; Workforce Development; Climate Action and Climate Adaptation; Sustainability, and Quality of Life in Santa Cruz.

XXXXXX
87 Infrastructure Parks, Recreation and Open Spaces Rail Trail Art Implementation ED Negotiate Rail Trail Master Agreement with the RTC for Right of Entry along the Rail Trail. Negotiate donation agreements, commissions and installations on the completed segment 97 Infrastructure Parks, Recreation and Open Spaces Wharf Popup/Pandemic Recovery Efforts
ED Help draw new visitors to the wharf by complementing the existing vendors on the wharf with short term new business concepts and curated programming. 118‐01 Infrastructure Parks, Recreation and Open Spaces Wharf Master Plan PR The WMP is a joint effort between PR and ED. It is complete and Council‐approved, but has received a legal challenge. We anticipate needing to work on this over the next several months or more
XX
118‐02 Infrastructure Parks, Recreation and Open Spaces Wharf EDA Grant for Piling Replacement
ED Project to replace subset of wharf pilings (wooden posts on which the wharf sits). This replacement is a constant
rotating need.

X
118‐03 Infrastructure Parks, Recreation and Open Spaces Wharf Master Plan Implementation:

Phase I: Gateway Signage and
Ticketing Entry
ED Funds are secured and the public process for design of the Gateway sign may proceed as directed by Council. X
118‐04 Infrastructure Parks, Recreation and Open Spaces Wharf Master Plan Implementation:

Phase II+
ED Long term implementation of plan including public
outreach and ongoing grant funding.

XX
161 Infrastructure Parks, Recreation and Open Spaces Pogonip Vegetation Management Program
FD Complete shaded fuel breaks within our largest open space, Pogonip.

X
162 Infrastructure Parks, Recreation and Open Spaces Wild Urban Interface 5 Year Vegetation Master Plan
FD Compile master plan for vegetation management in our open spaces and create integrated plan for the next 5 years. X 136 Infrastructure Parks, Recreation and Open Spaces Pogonip Clubhouse PR Philanthropic funding available for renovation of Pogonip Clubhouse; structural review complete; will need design review, access, contract approvals.

X
123 Infrastructure Parks, Recreation and Open Spaces Harvey West Pool Feasibility Study PR Per City Council sub‐committee, develop a pool feasibility study leading to a donor‐based capital campaign. X
140 Infrastructure Parks, Recreation and Open Spaces Westside Pump Track PR Project to renovate Westside Pump Track to an asphalt surface.

X
119 Infrastructure Parks, Recreation and Open Spaces Wharf "Public Works" Plan PR Coastal Commission will need a "public works" plan for the Wharf, similar to the Beach Management Plan, to provide a blanket permit for maintenance and CIP investment into the Wharf
X
10 Infrastructure Parks, Recreation and Open Spaces Monterey Bay Sanctuary Scenic Trail (MBSST) Rail Trail Segments 8 & 9
PW Design and complete environmental review for project, from Wharf roundabout to 17th Ave.

XXX
27 Infrastructure Parks, Recreation and Open Spaces West Cliff Drive Multi‐use Repair, Storm Damage Repair at Chico and
Stair Rehabilitation
PW Repair the path from John to Swanton, repair 2 stairs and address the storm damage near Chico. XXX
21‐04‐06 Final Project List.xlsx Page 5 of 6 18.18 4/16/2021 11:53 AM City of Santa Cruz ‐ Re‐Envision Santa Cruz
Projects for Our 12‐18 Month Interim Recovery Plan
January 1, 2021 ‐ June 30, 2022
ID Focus Area Project Category Project
Lead
Department Long(er) Description Re‐Envision Recovery
Green
Economy
Engaged
Community
Equity and
Well‐being
Essential
Service
Delivery
11 Infrastructure Parks, Recreation and Open Spaces MBSST Rail Trail Segment 7 Phase 2 PW Construct rail trail from Bay/California to Wharf Roundabout (along WWTF and Neary Lagoon).

XXX
13 Infrastructure Parks, Recreation and Open Spaces Swanton Blvd Multi‐Use Trail Connector
PW Development of multi‐use trail along Swanton and
Delaware.

X XXX
116 Infrastructure Resiliency and Improvements Ocean Street Beautification ED Bond‐funded and Council‐approved CIP Project including design development for improvements based on the Ocean Street Plan including development of the design details for landscaping, sidewalk, streetlights.

X
20 Infrastructure Resiliency and Improvements Resource Recovery Facility Infrastructure
PW Design and construct various required infrastructure projects at the recycling center and landfill.

XX X
7 Infrastructure Resiliency and Improvements State Route 1/9 PW Widen intersection to provide additional lanes, and bike and pedestrian improvements. Project also involves property acquisitions and an eminent domain process, both being assisted by City Attorney's office and Economic Development
X
8 Infrastructure Resiliency and Improvements State Route 1 Bridge Replacement PW Replace existing functionally obsolete bridges with one new wider structure.

XX
5 Infrastructure Resiliency and Improvements Downtown Intersection Improvements PW Revise Front/Soquel, Front Laurel and Pacific/Laurel based on Downtown development.
12 Infrastructure Resiliency and Improvements Riverside Ave Utility Undergrounding and Streetscape
PW Utility undergrounding and streetscape on Riverside from the bridge to Beach Street.

X
19 Infrastructure Resiliency and Improvements Pure Water Soquel Creek Water District
PW Upgrade Regional Wastewater Treatment Facility
infrastructure to treat reclaimed water and construct dual pipeline to city limits. 17 Infrastructure Resiliency and Improvements Wastewater Collection System Infrastructure Projects
PW Improve wastewater mains and pump stations city wide. X 18 Infrastructure Resiliency and Improvements Wastewater Treatment Facility Infrastructure Projects
PW Upgrade Regional Wastewater Treatment Facility
infrastructure. XX
150 Infrastructure Resiliency and Improvements Water Capital Improvement Program WT Infrastructure reinvestment and climate adaptation ‐‐ key projects include: Meter Replacement, Newell Creek Inlet‐Outlet Pipeline Replacement, GHWTP Concrete Tanks Replacement, GHWTP Facilities Improvement Project design‐build contract award, Laguna Diversion Capital MaintenanceThis is an approximately $600 million reinvestment it the water system's backbone infrastructure: raw water storage, transmission, and water treatment facilities as well as funding for the water supply projects selected as a result of the water supply augmentation strategy work described XX X
149 Infrastructure Resiliency and Improvements Water Augmentation Strategy WT This effort will culminate in the selection of one or more water supply augmentation projects that will be implemented to improve water supply reliability.

X
147 Infrastructure Resiliency and Improvements Updated Long Range Financial Plan WT The Water Department has developed a 10 year financial plan to guide financial planning and management for the decade ahead. We need to update the 2016 document.

X
148 Infrastructure Resiliency and Improvements Updated Urban Water Management Plan
WT The Water Department is required to update its Urban Water Management Plan and submit it to the state every 5 years.

X
151 Infrastructure Resiliency and Improvements Council Action on Water Shortage Contingency Plan
WT Council action to accept this plan in the specified timeline is needed to ensure that we have a relevant plan in place before the upcoming water demand season in the event we need to implement water restrictions.

X
21‐04‐06 Final Project List.xlsx Page 6 of 6 18.19 4/16/2021 11:53 AM Re-Envision Santa Cruz
Building a future for everyone, together
Council Update
January 25, 2022

18.20 Agenda
01 02
03 Accomplishments
Metrics
Equity
2 18.21
Our Focus Areas
Fiscal Sustainability
Rebuild the City’s strong financial foundation to
maintain excellent service delivery, improve quality of life, and build the resiliency to face future challenges.

Downtown and Business Revitalization
Invest in Santa Cruz’s robust and diverse locally owned businesses, focusing on the Downtown as a center for housing, commerce and transportation, to ensure an equitable recovery for all.

Infrastructure
Reimagine improvements to facilities, systems, and open spaces with a focus on resilience, climate adaptation, and supporting a high quality of life. 3 18.22
Accomplishments (Subset)
See Attachment 1 for Full Progress Report
Infrastructure
• Workforce Development
community outreach meetings
• Climate Action 2030 Council Study
Session
• Pogonip Vegetation Management
Program planning and grant
applications
• Wharf maintenance - first ever
maintenance permit from
California Coastal Commission
• Newell Creek Dam Inlet/Outlet –
70% complete
Fiscal Sustainability
• Skypark contract for
environmental characterization
• Simpkins Swim Center at
Harvey West pool
• Council Ad Hoc Revenue
Committee launch of poll for
possible ballot measure(s)
Downtown and Business
Revitalization
• Downtown expansion plan
community meeting – prep for spring
scenarios for Planning Commission
• Arts in Recovery Grant Program
• Small Unit Ordnance Amendments –
Planning Commission subcommittee
• Pacific Station funding
• Library Mixed-Use – updated site
and project plan
• Mandated Housing Element Update
– start of process
4 18.23
Metrics – July 2021-September 2021
5 All as Compared to Previous Report’s Trends
“-” Utility terminations ~9% higher
“+” Business licenses issued ~5% higher
“+/-” Downtown retail commercial vacancy - flat
“+” Transient occupancy tax ~22% higher
“+” Sales Tax ~8% higher
“+” Admissions Tax ~82% higher
See Attachment 2 for Full Metrics Report

18.24 Health in All Policies – Equity Lens
6 • Target Date – FY 2022 Q4 – business licensing;
vacancy; closures; possibly parks and open space
maintenance hours; recreation facilities
maintenance hours; qualitative reporting re:
partnership agreements with community-based
organizations and other frontline / underrepresented groups • Note: There will be no comparator data as these
are new metrics.

18.25 Re-Envision Santa Cruz
Building a future for everyone, together
Recommendation: Motion to accept the City’s most recent quarterly progress reports on Re-Envision Santa Cruz, a 12-18 month interim recovery plan, and provide feedback as desired.
7 18.26
8 Metrics – July 2021-Septmber 2021

18.27 City Council

AGENDA REPORT
DATE: 01/13/2022
AGENDA OF: 01/25/2022
DEPARTMENT: Water
SUBJECT: Ordinance Repealing Chapter 16.03 (Plumbing Fixture Retrofit Regulations) of the Santa Cruz Municipal Code (WT)
RECOMMENDATION: Introduce for publication an ordinance to repeal Chapter 16.03 (Plumbing Fixture Retrofit Regulations) of the Santa Cruz Municipal Code.

BACKGROUND: Water Department staff with support from the City Attorney’s Office have assessed the feasibility and regulatory obligation associated with repealing Chapter 16.03 (Plumbing Fixture Retrofit Regulations) of the Santa Cruz Municipal Code.

Chapter 16.03 was enacted in 2003 to provide the authority to City staff to administer the City Time-of-Sale ordinance that requires upon the transfer of real property, the retrofit of all noncompliant plumbing fixtures: toilets, urinals and showerheads. The ordinance is one of several programs that implements the City’s Water Conservation Master Plan.

Chapter 16.03 of the Santa Cruz Municipal Code is solely applicable to the transfer of properties within the City jurisdiction. However, with the authority established through Santa Cruz County Code Chapter 7.69 and the City of Capitola Municipal Code Chapter 13.02, the City Time-ofSale ordinance is equally applied to all properties that are served by the City water system.

Since 2003, the administration of the Time-of-Sale Ordinance has been successful in accelerating the replacement of old, inefficient plumbing fixtures, which has contributed to reducing daily demand on the water system and resulted in the certification of over 11,000 properties within the Santa Cruz Water Department service area.

DISCUSSION: The high level of participation and compliance with the Time-of-Sale ordinance, in addition to improvements in state plumbing codes and ongoing water conservation outreach, has resulted in the fact that the majority of properties that are transferred are already in compliance with the requirements and do not require retrofit. These facts have resulted in diminishing returns on securing additional improvements in water efficiency through the ordinance, and has highlighted the conclusion that the ordinance has effectively achieved the maximum water savings possible at this time.

Repealing the Time-of-Sale ordinance and ending the administration of a time and resource intensive program would be a welcomed change by the community of property owners and real estate professionals, and would free up valuable time for Water Conservation staff to focus on

19.1 other priorities. Compliance with the City Time-of-Sale ordinance is one of many pre-requisites for facilitating the timely transfer of a property and compliance comes with the increasing cost of hiring a licensed plumbing or general contractor to complete the required retrofit verification section of the Water Conservation Certificate. Due to the saturation of water efficient indoor plumbing fixtures, it has become increasingly likely that real estate agents unnecessarily incur the cost and complete the process for compliance for properties that are already certified or equipped with compliant fixtures.

In the event that the recommended repeal ordinance is adopted, Senate Bill 407 (California Civil Code Sections 1101.1 – 1101.9) enacted in 2009 would become applicable. The state law is similar in the scope of requirements and efficiency standards for the transfer of residential and commercial properties. However, the state law is indicative of a transition from active to passive enforcement of the existing plumbing fixture efficiency requirements that is dependent on the disclosure of both the retrofit requirements and status of compliance between private parties, the seller and buyer.

Although the recommendation for repeal ordinance for Chapter 16.03 would result in ending a program in the Water Conservation Master Plan, there are other programs available that incentivize customers to continue to implement water efficiency measures. For example, the High Efficiency Toilet rebate program that incentivized compliance with the Time-of-Sale ordinance has been upgraded in 2022 with an increase in rebate of up to $200 for the installation of ultra-high efficiency toilets that are defined as having a maximum of 1.0 gal/flush. Other programs in the Water Conservation Master Plan may continue to be implemented and available for customers to further support their water efficiency efforts.

Upon the adoption of the proposed repeal ordinance, the City Attorney’s Office is prepared to assist Water Conservation staff in proceeding with the respective processes for repealing the Santa Cruz County Code 7.69 and the City of Capitola Municipal Code Chapter 13.02.

FISCAL IMPACT: None.

Prepared By:

Neal Christen
Water Conservation
Representative
Submitted By:

Rosemary Menard
Water Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. ORDINANCE REPEALING CHAPTER 16.03.DOCX

19.2 ORDINANCE NO. 2022-XX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ REPEALING CHAPTER 16.03 OF THE SANTA CRUZ MUNICIPAL CODE PERTAINING TO RETROFIT

REQUIREMENT UPON SALE OF REAL PROPERTY
BE IT ORDAINED by the City Council of the City of Santa Cruz as follows:

Section 1. Chapter 16.03 of the Santa Cruz Municipal Code is hereby repealed.

Section 2. This Ordinance shall be in force and take effect thirty (30) days after final adoption.

PASSED FOR PUBLICATION this 25th day of January, 2022, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________
Sonja Brunner, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator
PASSED FOR FINAL ADOPTION this ____ day of ____, 2022 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________
Sonja Brunner, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator

19.3 ORDINANCE NO. 2022-XX
2 This is to certify that the above and
foregoing document is the original
of Ordinance No. 2022-xx and that
it has been published or posted in
accordance with the Charter of the
City of Santa Cruz.
________________________________
Bonnie Bush, City Clerk Administrator

19.4 Introduction for Publication, Repeal
Ordinance for Santa Cruz Municipal
Code Chapter 16.03
1 19.5
Santa Cruz Municipal Code Chapter 16.03
• Enacted in 2003, Municipal Code Section 16.03
authorized the Water Department to implement the
plumbing fixture retrofit (PFR) regulations in the City by applying a “retrofit on resale” requirement.
• The goal of the PFR program was to accelerate
conversion of high water using plumbing fixtures to
more efficient ones.
• Santa Cruz County Code 7.69 and City of Capitola
Municipal Code 13.02 were also adopted to allow for
the uniform application of the PFR program
throughout the SCWD service area.
• Since 2003, the PFR has been an effective tool for
improving water use efficiency in Santa Cruz’s water
service area.

19.6 PFR Program Accomplishments
• When a property is sold or transferred, the PFR program required the seller to obtain a City Water Conservation Certificate verifying that the buildings indoor plumbing fixtures met required efficiency standards.
– Toilets ≤ 1.28 gpf or existing 1.6 gpf
– Showerheads ≤ 2.0 gpm
– Urinals ≤ 0.5 gpf
• To date, the program has resulted in the certification of 10,386 properties and the replacement of
– 9,538 toilets
– 7,428 showerheads
– 42 urinals

19.7 19.8
Repealing the PFR Would Result in the Following:
• Formally end the program;
• Make applicable, the seller disclosure requirements of SB 407 providing for the same information without
the requirement of City certification;
• Eliminate the cost of inspection for property owners
and the procedural burden of ensuring compliance
for real estate agents.

19.9 City Council

AGENDA REPORT
DATE: 01/10/2022
AGENDA OF: 01/25/2022
DEPARTMENT: City Clerk
SUBJECT: Arts Commission (CC)
RECOMMENDATION: Appoint one Arts Commissioner with a term expiring on January 31, 2023, and appoint or reappoint an Arts Commissioner with a term expiring on January 31, 2026.

BACKGROUND: At its meeting on January 18, 2022 the City Council interviewed prospective candidates for appointment and/or reappointment to the Arts Commission. The terms will expire on January 31, 2023 and January 31, 2026.

DISCUSSION: The Arts Commission allows for two County members, so long as they work in qualifying fields. One of the open positions is eligible for appointment/reappointment of a County resident. The following people are seeking appointment to the Arts Commission:

Elizabeth Birnbaum*
Robert Blitzer
Mary Kopp
Samantha Rose Lee
Lucas Roy Lehman
Everett Ó Cillín
Vivian Vargas
Grant Whipple
*Currently serving on this Commission and seeking reappointment.

FISCAL IMPACT: None.

Prepared By:

Bonnie Bush
City Clerk
Submitted By:

Laura Schmidt
Assistant City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

20.1 City Council

AGENDA REPORT
DATE: 01/10/2022
AGENDA OF: 01/25/2022
DEPARTMENT: City Clerk
SUBJECT: Board of Building and Fire Appeals (CC)
RECOMMENDATION: Appoint one member to the Board of Building and Fire Appeals.

BACKGROUND: At its meeting on January 18, 2022 the City Council interviewed prospective candidates for appointment to the Board of Building and Fire Appeals. The term will expire on January 1, 2023.

DISCUSSION: The following person is seeking appointment to the Board of Building and Fire Appeals:

William Schultz
FISCAL IMPACT: None.

Prepared By:

Bonnie Bush
City Clerk
Submitted By:

Laura Schmidt
Assistant City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

21.1 City Council

AGENDA REPORT
DATE: 01/10/2022
AGENDA OF: 01/25/2022
DEPARTMENT: City Clerk
SUBJECT: Commission for the Prevention of Violence Against Women (CC) RECOMMENDATION: Motion to approve Councilmember Kalantari-Johnson's nomination to the Commission for the Prevention of Violence Against Women.

BACKGROUND: At its meeting on January 18, 2022 the City Council interviewed prospective candidates for appointment to the Commission for the Prevention of Violence Against Women.

The term will expire on January 1, 2025.

DISCUSSION: Councilmember Kalantari-Johnson may nominate one person. The following people are seeking appointment to the Commission for the Prevention of Violence Against Women:

Deborah Christie
Savannagh Hartwell
Rachel Kippen
Samantha Rose Lee
FISCAL IMPACT: None.

Prepared By:

Bonnie Bush
City Clerk
Submitted By:

Laura Schmidt
Assistant City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

22.1 City Council

AGENDA REPORT
DATE: 01/10/2022
AGENDA OF: 01/25/2022
DEPARTMENT: City Clerk
SUBJECT: Downtown Commission (CC)
RECOMMENDATION: Appoint two Downtown Commissioners.

BACKGROUND: At its meeting on January 18, 2022 the City Council interviewed prospective candidates for appointment to the Downtown Commission. One term will expire on January 31, 2023 and the other term will expire on January 31, 2026.

DISCUSSION: The following people are seeking appointment to the Downtown Commission:

Carolyn S. Book-Kelley
Jennalee Dahlen
Savannagh Hartwell
Samantha Rose Lee
Bubb Rader
Rafa Sonnenfeld
The appointed person with the lesser amount of votes will get the shorter term.

FISCAL IMPACT: None.

Prepared By:

Bonnie Bush
City Clerk
Submitted By:

Laura Schmidt
Assistant City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

23.1 City Council

AGENDA REPORT
DATE: 01/10/2022
AGENDA OF: 01/25/2022
DEPARTMENT: City Clerk
SUBJECT: Historic Preservation Commission (CC)
RECOMMENDATION: Appoint and/or reappoint two Historic Preservation Commissioners.

BACKGROUND: At its meeting on January 18, 2022 the City Council interviewed prospective candidates for appointment and/or reappointment to the Historic Preservation Commission. The terms will expire on January 31, 2026.

DISCUSSION: The following people are seeking appointment and/or reappointment to the Historic Preservation Commission:

Don Lauritson*
Samantha Rose Lee
Joe Michalak*
William Schultz
*Currently serving on this Commission and seeking reappointment.

FISCAL IMPACT: None.

Prepared By:

Bonnie Bush
City Clerk
Submitted By:

Laura Schmidt
Assistant City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

24.1 City Council

AGENDA REPORT
DATE: 01/10/2022
AGENDA OF: 01/25/2022
DEPARTMENT: City Clerk
SUBJECT: Parks and Recreation Commission (CC)
RECOMMENDATION: Appoint and/or reappoint two Parks and Recreation Commissioners.

BACKGROUND: At its meeting on January 18, 2022 the City Council interviewed prospective candidates for appointment and/or reappointment to the Parks and Recreation Commission. The terms will expire on January 31, 2026.

DISCUSSION: The following people are seeking appointment and/or reappointment to the Parks and Recreation Commission:

Bradley Angell
Deborah Christie
Jorge Leonardo Cruz
Samantha Rose Lee
Jane Mio*
Dino Pollock*
Jacob Pollock
*Currently serving on this Commission and seeking reappointment.

FISCAL IMPACT: None.

Prepared By:

Bonnie Bush
City Clerk
Submitted By:

Laura Schmidt
Assistant City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

25.1 City Council

AGENDA REPORT
DATE: 01/10/2022
AGENDA OF: 01/25/2022
DEPARTMENT: City Clerk
SUBJECT: Planning Commission (CC)
RECOMMENDATION: Appoint two Planning Commissioners.

BACKGROUND: At its meeting on January 18, 2022 the City Council interviewed prospective candidates for appointment to the Planning Commission. The terms will expire on January 31, 2026.

DISCUSSION: The following people are seeking appointment and/or reappointment to the Planning Commission:

Elizabeth Conlan
Candice Elliott
Pete Kennedy
Kenneth Matlin
John McKelvey
Philip Mekis
Mark Mesiti-Miller
Daniel Nelson
Ron Pomerantz
Charles Prograce
William Schultz
Rafa Sonnenfeld
Sarah Wikle
Shawn Williams
FISCAL IMPACT: None.

Prepared By:

Bonnie Bush
City Clerk
Submitted By:

Laura Schmidt
Assistant City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

26.1 City Council

AGENDA REPORT
DATE: 01/10/2022
AGENDA OF: 01/25/2022
DEPARTMENT: City Clerk
SUBJECT: Sister Cities Committee (CC)
RECOMMENDATION: Appoint and/or reappoint three Sister Cities Committee Members.

BACKGROUND: At its meeting on January 18, 2022 the City Council interviewed prospective candidates for appointment and/or reappointment to the Sister Cities Committee. The terms will expire on January 31, 2026.

DISCUSSION: The following people are seeking appointment and/or reappointment to the Sister Cities Committee:

Andrei Kiktev*
Samantha Rose Lee
Thomas Stelling*
*Currently serving on this Committee and seeking reappointment.

FISCAL IMPACT: None.

Prepared By:

Bonnie Bush
City Clerk
Submitted By:

Laura Schmidt
Assistant City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

27.1 City Council

AGENDA REPORT
DATE: 01/10/2022
AGENDA OF: 01/25/2022
DEPARTMENT: City Clerk
SUBJECT: Water Commission (CC)
RECOMMENDATION: Appoint two Water Commissioners.

BACKGROUND: At its meeting on January 18, 2022 the City Council interviewed prospective candidates for appointment to the Water Commission. The terms will expire on January 31, 2026.

DISCUSSION: The Water Commission allows for one County member, so long as they are a qualified elector who resides outside the City but within the City’s water service area. However, that position is not vacant for this application period, and only City residents are eligible to be appointed. The following people are seeking appointment to the Water Commission:

Ross Albert
Diana Alfaro
Pete Kennedy
Lucas Roy Lehman
Sabrina Lopez
James Mekis
Garrett Roffe
William Schultz
FISCAL IMPACT: None.

Prepared By:

Bonnie Bush
City Clerk
Submitted By:

Laura Schmidt
Assistant City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

28.1 City Council

AGENDA REPORT
DATE: 1/4/2022
AGENDA OF: 1/25/2022
DEPARTMENT: Planning and Community Development
SUBJECT: 130 Center Street: CP21-0011 (APN 007-023-26) – Appeal of the Planning Commission’s Approval of a Nonresidential Demolition Authorization Permit to Demolish an Existing Commercial Building; a Density Bonus Request to Exceed Height and Reduce Setbacks; and a Special Use Permit, Coastal Permit, and Design Permit to Construct a Sixstory, Mixed-use Building with 233 Single Room Occupancy (SRO) Units and 2,356 sq. ft. of Ground Floor Commercial Space on a Parcel Located in the RTC/CZ-O/FP-O (Tourist Residential Beach Commercial/Coastal Zone Overlay/Floodplain Overlay) Zoning Districts and Beach and South of Laurel Area Plan. (Owner: Green Valley Corporation) (PL) RECOMMENDATION: Resolution to deny the appeal and uphold the Planning Commission’s acknowledgment of the environmental determination and approval of the Nonresidential Demolition Authorization Permit, Density Bonus Request, Special Use Permit, Coastal Permit, and Design Permit based on the findings listed in the draft resolution and the Conditions of Approval attached as Exhibit “A.”
BACKGROUND: The approximately 1.19 acres (51,692 square feet) project site is located on the eastern side of Center Street, just north of the intersection of Center and Front Streets.

Commercial and residential uses surround the project site; the site is bounded by an auto body shop to the north, a hotel use to the south, multi-family residential to the east, and commercial as well as Depot Park across Center Street to the west. This project involves a proposal to construct a six-story, mixed-use project consisting of one level of underground parking, ground level commercial space, and 233 single-room occupancy (SRO) units. The parcel is zoned RTC/CZ-O/FP-O (Tourist Residential Beach Commercial/Coastal Zone Overlay/Floodplain Overlay). The purpose of the Tourist Residential Beach Commercial district is to establish standards for development of residential uses mixed with neighborhood commercial, motel, and regional tourist commercial uses. These standards are designed both to improve existing uses and encourage new developments in a manner that maintains a harmonious balance between residential and regional commercial uses. SRO developments of sixteen or more units and mixed residential and commercial developments with commercial and noncommercial uses on the ground floor are permitted with the approval of a Special Use Permit and Design Permit. The project also requires approval of a Coastal Permit because the site is located within the CZ-O (Coastal Zone Overlay) district.

29.1 The Planning Commission heard the application on October 21, 2021. During the hearing, seven members of the public spoke, six in support of the project, and one requesting additional environmental review. After taking public comment, Commissioners discussed the project and were generally supportive of the proposal, complementing the architecture, design and building articulation, as well as expressing the need for affordable housing. Two commissioners opined that the environmental review was not sufficient and that the project may not qualify for a categorical exemption under the California Environmental Quality Act (CEQA). Initially, a motion to approve the project was made, but the motion failed 4-3. A second motion was made to continue the item with direction to staff to provide additional information relating to the environmental exemption, the traffic study, and base density calculation. However, prior to a vote taking place the applicant voluntarily offered four additional affordable units (for a total of thirtyfive very-low income units), with the caveat that if the project were appealed to the City Council, they would no longer be offered and the total number of affordable units would revert back to 31, which meets the minimum requirements for both Inclusionary Housing and Density Bonus Ordinances. A motion to approve the project was made with a condition regarding the four additional affordable units, as well as a condition requiring the retail spaces to include commercial kitchen hoods and ducting for future restaurant uses. The motion passed unanimously (7-0).

On November 1, 2021, an appeal of the Planning Commission’s approval was received from Santa Cruz Tomorrow via appointed representative Gillian Greensite. The appeal expresses concerns regarding the environmental analysis and requests a CEQA review which would address possible soil contamination issues, plus a traffic study inclusive of weekend counts. The appeal letter, entitled Santa Cruz Tomorrow Appeal Letter, dated November 1, 2021, is attached to the report and discussed below.

Following receipt of the appeal, staff coordinated with the City’s environmental consultant for the project to prepare a CEQA Categorical Exemption Review to detail how the project meets CEQA Guidelines section 15332, Class 32 categorical exemption (In-fill). The review addresses many of the concerns expressed in the appeal, including traffic, noise pollution, air quality, and soil contamination.

DISCUSSION: The attachment entitled Planning Commission Staff Report from October 21, 2021 provides an in depth analysis of the proposed project. This staff report addresses the issues raised in the appeal letter submitted by Santa Cruz Tomorrow. The following summarizes each point made in the appeal, followed by responses from staff for each item:

1. The appellant contends the following sections of the General Plan have been violated:

Land Use:
 LU 4.1.2 Amend the Zoning Ordinance to ensure that infill and intensified development is sensitive to existing neighborhood and business districts.

Mobility:
 M3 A safe, efficient, and adaptive road system
 M3.1 Acknowledge and manage congestion
 M3.3.2 Improve access along the Visitor/Beach Area travel corridors through coordinated signs and street naming, protected turn lanes, remote parking/shuttle programs, and other strategies Cf. PR1.6.3

29.2  M3.3 Discourage, reduce and slow through traffic and truck on neighborhood streets
 M3.3.3 Update the Beach and South of Laurel Area Plan to reflect needed improvements along the Visitor/Beach Area travel corridors General Plan policy LU4.1.2 involves a recommendation to amend the Zoning Ordinance to ensure that infill and intensified development is sensitive to existing neighborhood and business districts. In other words, this policy is direction to the City to amend the Zoning Ordinance and is therefore not applicable to this specific project. The project meets all currently adopted Zoning Ordinance requirements and is sensitive to existing neighborhood and business districts in that the project respects the privacy of the abutting residents by orienting most balconies and outdoor spaces toward Center Street and the neighboring commercial uses. Additionally, recently enacted housing bills such as SB330 require cities and counties to apply the ordinances and policies in affect when the subject application is deemed complete. Cities have very limited discretion when reviewing density bonus applications, and are generally obligated to grant a density bonus and incentives, concessions, waivers, or reductions in development standards to the developer so long as the proposed development complies with the applicable affordability requirements and the waivers or incentives/concessions meet certain standards. Projects that include a specified amount of affordable housing are entitled to a density bonus, even if the density bonus would allow a project to exceed the maximum density under the City’s general plan and zoning code.

Related laws, such as the Housing Accountability Act, strictly limit cities’ ability to deny or reduce residential or mixed use project’s unit count or square footage when said project is consistent with a city’s objective standards. To do so, the City would need to find a “significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete,” pursuant to Government Code Section 65589.5(j)(1)(A). Even if the General Plan Policy LU 4.1.2 were simply a policy that called for development to be sensitive to the existing neighborhood and surrounding business district rather than direction to update the Zoning Ordinance to promote such sensitivity, the subjective nature of such a policy precludes the City from using it to deny or reduce the density or intensity of the project based on requirements of the Housing Accountability Act.

Of note, the City is embarking on a Downtown Plan Extension study to consider future redevelopment of the area south of Laurel Street, which includes the subject parcel. The objectives of the effort are to provide additional affordable and market-rate housing in the downtown, improving the connection to the San Lorenzo River and beach areas, and creating new economic opportunities for local businesses and workers. Additional objective standards will be established as part of that project for the extension area.

In response to the policies set forth in the General Plan Mobility chapter, specifically M3 and M3.1, the project is located in an infill environment: near transit, jobs, goods, services, and recreation, and with a complete sidewalk and bike lane network. With easy access to many daily residential needs, the project supports many of the General Plan transportation policies and goals. In regards to Policy M3.3.2, the City has improved access along the Visitor/Beach Area travel corridors through the naming of streets,

29.3 coordinating signal timing on Laurel Street, multimodal improvements on Front and Pacific (including the roundabouts), and a shared parking program. Addressing Policy M3.3, the closest residential neighborhood is the Cedar/Spruce/Sycamore Street area.

None of those streets provide more direct access to or from the area, therefore, it is unlikely that any traffic will be added to those streets as a result of congestion on Cedar Street. Analyzing the surrounding street layout, if there was a situation where there was congestion on Center Street, slow through traffic and trucks would logically use Pacific Avenue or Front Street as opposed to cutting through the neighborhood. Pacific, Front, and Center Streets are classified in the General Plan as arterial streets, and the General Plan states that arterial streets “carry the heaviest traffic and provide regional and intercommunity access.” The appellant claims that Cedar Street congestion will divert traffic to lower westside neighborhoods. However, on busy summer afternoons, drivers already divert away from Cedar Street to avoid existing congestion that already exists in that area. The project would not cause any additional diversions, because substantial congestion is already present that causes diversions for those seeking to take alternative routes. Further, the lower westside is equipped with a network of arterial and collector streets that is intended to handle traffic going to/from that area. Similar to other noted references, Policy M3.3.3 calls for updating the Beach and South of Laurel Area Plan and is not related specifically to the subject project.

2. The Traffic Study for this project examined only weekday traffic. Weekends were not included. While this is not unusual as a general approach, it ignores the fact that on summer weekends, Center Street, Front Street and especially the roundabouts are often gridlock. With this project adding an estimated 1,112 daily trips and with the roundabout half a block to the south, to not assess the impact on the roundabout and feeder roads on weekends violates M3; M3.1; M3.2; M3.3 and LU4.1.2.

SB743 has generally replaced congestion with Vehicle Miles Traveled (VMT) as a measure of traffic impacts. However, jurisdictions have the option to tailor requirements to their unique communities. Public Works staff noted at the Planning Commission meeting that they had the discretion to add weekends to the study but didn't.

Thus we do not have a valid, inclusive measure of the impact of this project on traffic. In addition, given weekend gridlock with the added impact of this project’s traffic, local traffic to and from the lower Westside will likely divert to other neighborhood streets violating LU 4.1.2, increasing VMT.

The City assesses transportation impacts for two reasons: 1) Fee based programs to apply Traffic Impact Fees (TIF); and 2) For consistency with the California Environmental Quality Act (CEQA).

For the TIF program, a developer pays their proportional share of the costs associated with the traffic impacts of their project. The fees collected are used to fund various transportation improvements identified in the TIF program. The city uses the adopted Transportation Study Requirements for Development
(https://www.cityofsantacruz.com/home/showpublisheddocument/86344/6376824429787 70000 ) to determine the need and level of traffic impact analysis based on the proposed development in order to calculate the appropriate fee. These guidelines state “Typical

29.4 study hours for capacity analysis of study intersections and study arterials are: Weekday A.M. peak hour and P.M. peak hour. In other cases, it may include weekend peak hour and project peak hour at the request of the City Engineer or Transportation Manager (page 3).” The TIF program is based on PM peak hour trips. Situations where staff might elect to include weekends would be such scenarios when the peak usage of a new development is higher on weekends than weekdays, such as an amusement park or facility that hosts weekend events. According to the Institute of Traffic Engineers (ITE) trip generation manual that is used for this analysis, weekday PM peak average rates are approximately double that of weekend peak hour rates for SRO units. Staff did not require the applicant to provide weekend counts because doing so would not have accurately portrayed the peak number of trips generated necessary to calculate the required TIF. This project will pay its fair share towards the TIF and downtown improvements, and the best calculation for the TIF uses weekday trips, when trips generated by the project are highest.

In regards to CEQA, SB743 has generally replaced congestion with VMT as a measure of environmental impacts related to traffic. Jurisdictions have the ability to tailor these requirements to adopt thresholds of significance for CEQA related to SB743. The City Council adopted a VMT transportation threshold on June 9, 2020 in accordance with CEQA and state requirements. The threshold generally establishes that a project exceeding a level of 15% below the County-wide average VMT may result in a significant transportation impact. The VMT threshold is 8.7 VMT per capita, which is a 15% reduction from the existing County-wide average VMT of 10.6. The estimated project VMT is 4.2 per capita, which would not exceed the City’s threshold of 8.7 VMT per capita. Because the project also is located within ½ mile of a major transit stop and the project’s per capita VMT also is below the City’s threshold, the project would result in a less-than-significant impact related to traffic1 . Due to the established formula for determining the City’s threshold, weekend traffic counts would not have had any impact on this result.

3. Noise and air quality impacts from increased traffic.

A CEQA Categorical Exemption Review was prepared by Dudek following the Planning Commission approval, and the review concludes that the project would result in a minor traffic increase that would not be of a magnitude to affect ambient noise levels.

Additionally, the California Emissions Estimator Model (CalEEMod) Version 2020.4.0 was used to estimate criteria air pollutant emissions generated during construction and operation of the proposed project. The model results demonstrate that the emissions of criteria air pollutants associated with construction and operation of the proposed project would not exceed the applicable Monterey Bay Air Resources District (MBARD) significance threshold. Therefore, project emissions would result in a less-than-significant impact related to air quality.

29.5 and approximately 257 residential units are under construction or have been approved.

With the addition of these units, the City’s housing units would total 24,426 dwelling units.

That number would increase to 24,659 dwelling units with the addition of the proposed project, which is below the AMBAG 2018 Regional Growth Forecast of 27,706 dwelling units for the year 2025. Therefore, the proposed project would be consistent with the AQMP, and would not conflict with or obstruct implementation of the AQMP.

4. Require CEQA review which would address possible soil contamination issues from a 60-year old current auto body shop on site.

A CEQA Categorical Exemption Review was prepared by Dudek following the Planning Commission approval, and the review concludes that the project site is not included on a list of hazardous waste sites compiled pursuant to Government Code §65962.5. The Cortese List online data resources were reviewed during the preparation of the document:
(1) the list of hazardous waste and substances sites from the Department of Toxic Substances Control’s (DTSC’s) EnviroStor database (DTSC 2021); (2) the list of leaking underground storage tank sites from the State Water Resources Control Board’s (SWRCB’s) GeoTracker database (SWRCB 2021a); (3) the list of sites identified with Waste Constituent Above Hazardous Waste Levels Outside the Waste Management Unit (EPA 2021); and (4) the list of active Cease and Desist Orders and Cleanup and Abatement Orders from the SWRCB (SWRCB 2021b).

The project site is not located on any of the DTSC lists of hazardous materials sites.

According to the SWRCB GeoTracker database, there are nine reported former leaking fuel tank cases within 1,000 feet of the project site. All of which have a cleanup status as completed and closed. There are no former or current leaking fuel tank cases on the project site. A Phase I Environmental Site Assessment (ESA) was also performed for the project site to determine the presence or likely presence of any hazardous substances on the project site. The assessment revealed no evidence of “recognized environmental conditions” (REC) in connection with the property. The term REC refers to the presence or likely presence of any hazardous substances or petroleum products on a property under conditions that indict an existing release, a past release or a material threat of release of any hazardous substances or petroleum products.

Health in All Policies (HiAP)
HiAP is a collaborative approach to improving the health of all people by incorporating health considerations into decision-making across sectors and policy areas. HiAP is based on 3 pillars:
equity, public health, and sustainability. The goal of HiAP is to ensure that all decision-makers are informed about the health, equity, and sustainability impacts of various policy options during the policy development process. The mixed-use project supports the pillar of equity by providing affordable rental units on a site in an area that is improved with sidewalks, street trees, and that is in close proximity to public transportation, commercial goods and services, and recreational areas. The development of residences in this central location encourages a sustainable and healthy lifestyle by promoting alternative forms of transportation. Therefore, the project is considered to be consistent with the three pillars of the HiAP and is recommended as an efficient use of the land.

29.6 Summary and Recommendation
This project involves a proposal to construct a six-story, mixed-use project consisting of one level of underground parking, ground level commercial space, and 233 SRO units. The development will implement the City’s vision for the South of Laurel area as expressed by the General Plan and the Beach and South of Laurel Comprehensive Area Plan by providing much needed deeply affordable and market rate residential units and providing a connection between the downtown and the beach area. The project has been thoughtfully designed to be attractive to both permanent residents and tourists, with emphasis placed on compatibility of design, landscaping, and site planning in compliance with the Design Guidelines of the Beach and South of Laurel Comprehensive Area Plan. Additionally, with a request for a Density Bonus, the project will maximize density while providing 20% of the base units (31) at the very low income level, which will be a significant addition to the city’s affordable housing stock. As indicated above, four additional affordable units were added by the applicant at the Planning Commission hearing with the caveat that if the project were appealed to City Council, they would no longer be offered and the total number of affordable units would revert back to 31, which meets the minimum requirements for both Inclusionary Housing and Density Bonus Ordinances. While the City Council may choose to explore the applicant’s willingness to once again offer these four additional affordable units, consistent with the agreement reached at the Planning Commission and the maximum number of affordable units the City can require of the applicant, the recommended conditions of approval call for the 31 affordable units to be provided. As conditioned, the proposed project meets the requirements of the Zoning Ordinance and provides a development that is compatible with the surrounding area in terms of its use, scale, and design.

Therefore, staff recommends that the City Council deny the appeal, thus upholding the Planning Commission’s approval of the Nonresidential Demolition Authorization Permit, Density Bonus Request, Special Use Permit, Coastal Permit, and Design Permit based on the findings listed in the Resolution and the Conditions of Approval attached as Exhibit “A”.

FISCAL IMPACT: The project would generate a property tax increase due to the proposed improvements to the property, in addition to revenues from associated permits and City fees that cover costs for providing those plan review and inspection services. Provision of broader City services to residential units generally exceeds the service level demand of commercial uses, so City service costs are expected to increase with the new residential units. With the reduction in commercial square footage, the project could result in an accompanying sales tax reduction, though this will ultimately depend on the future use and the comparison of those sales tax revenues with those existing.

Prepared By:

Ryan Bane
Senior Planner
Submitted By:

Lee Butler
Deputy City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. Resolution and Conditions of Approval

2. Santa Cruz Tomorrow Appeal Letter, dated November 1, 2021

3. 130 Center Street CEQA Categorical Exemption Review dated January 3, 2022, prepared by Dudek

29.7 4. Historic Evaluation and Cultural Resource Evaluation for the Property at 130 Center Street in the City of Santa Cruz dated July 16, 2020, prepared by Archaeological Resource Management

5. Tree Survey & Preliminary Impact Assessment dated December 13, 2020, prepared by Kurt Fouts Arborist Consultant

6. Transportation Impact Analysis dated February 9, 2021, prepared by Hexagon Transportation Consultants, Inc.

7. Phase 1 Environmental Site Assessment dated June 30, 2014, prepared by Geare Group Consulting

8. Stormwater Management Plan Mixed-Use Development at 130 Center St. dated July 2021, prepared by BKF Engineers

9. Cultural Resource Evaluation of the Project at 130 Center St dated July 20, 2021, prepared by Archaeological Resource Management

10. Noise Assessment Study for the Planned Mixed-Use Development, 130 Center St, dated February 4, 2021, prepared by Edward L. Pack Associates Inc.

11. Property Management Overview, prepared by Woodmont Real Estate Services

12. Project Base Plans meeting R-T(A) development standards

13. Planning Commission Staff Report from October 21, 2021

14. Planning Commission Minutes from October 21, 2021

15. Public Correspondence
Project Plans can be viewed from the City of Santa Cruz’s website:
www.cityofsantacruz.com/130center/Plan Set
The Geotechnical Investigation dated September 11, 2020, prepared by Cornerstone Earth Group, can be viewed from the City of Santa Cruz’s website:
www.cityofsantacruz.com/130center/Documents

29.8 RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ

ACKNOWLEDGING THE CATEGORICAL EXEMPTION AND APPROVING A

NONRESIDENTIAL DEMOLITION AUTHORIZATION PERMIT TO DEMOLISH TWO

EXISTING COMMERCIAL BUILDINGS, A DENSITY BONUS REQUEST TO EXCEED

HEIGHT AND REDUCE SETBACKS, AND A SPECIAL USE PERMIT, COASTAL PERMIT,

AND DESIGN PERMIT TO CONSTRUCT A SIX STORY, MIXED-USE BUILDING WITH 233 SINGLE-ROOM OCCUPANCY (SRO) UNITS AND 2,356 SQ. FT. OF GROUND FLOOR

COMMERCIAL SPACE ON A PARCEL LOCATED IN THE RTC/CZ-O/FP-O (TOURIST

RESIDENTIAL BEACH COMMERCAL/COASTAL ZONE OVERLAY/FLOODPLAIN

OVERLAY) ZONE DISTRICTS AND BEACH AND SOUTH OF LAUREL AREA PLAN THEREBY DENYING AN APPEAL OF THE PLANNING COMMISSION’S DECISION TO APPROVE THE PROJECT FILED BY SANTA CRUZ TOMORROW (APPLICATION NO.

CP21-0011)
WHEREAS, On February 16, 2021, Swenson submitted an application for a Nonresidential Demolition Authorization Permit to demolish an existing commercial building, a Density Bonus request to exceed height and reduce setbacks, and a Special Use Permit, Coastal Permit, and Design Permit to construct a six story, mixed-use building with 233 Single Room Occupancy (SRO) units and 2,356 sq. ft. of ground floor commercial space on a parcel located in the RTC/CZ-O/FP-O (Tourist Residential Beach Commercial/Coastal Zone Overlay/Floodplain Overlay) zone districts and Beach and South of Laurel Area Plan; and WHEREAS, the project site and its development is governed by the standards and guidelines contained in Municipal Code Title 24, the Zoning Ordinance, and the City of Santa Cruz General Plan and Local Coastal Program; and
WHEREAS, the project qualifies for a Categorical Exemption in State CEQA Guidelines Section 15332 (Class 32 – Infill Exemption) as articulated below; and

WHEREAS, the Planning Commission conducted a public hearing on October 21, 2021 and, after hearing public testimony, voted 7-0 to acknowledge the environmental determination and approve the Nonresidential Demolition Authorization Permit, Density Bonus request, Special Use Permit, Coastal Permit, and Design Permit; and WHEREAS, the Planning Commission’s approval was appealed to the City Council on November 1, 2021 by Santa Cruz Tomorrow via appointed representative Gillian Greensite; and WHEREAS, the City Council conducted a duly noticed public hearing on January 25, 2022 to consider the application and appeal; and
WHEREAS, the City Council now makes the following findings:

29.9 RESOLUTION NO.

Coastal Permit, Section 24.08.250

1. Maintain views between the sea and the first public roadway parallel to the sea.

The project will not affect coastal views because the property is located approximately 1,500 feet inland from Beach Street, which is the first public roadway from the sea.

2. Protect vegetation, natural habitats and natural resources consistent with the Local Coastal Land Use Plan.

The project site is not located within any sensitive natural habitat or resource areas as mapped in the General Plan and the Local Coastal Program. The site is mostly paved with associated areas of landscaping but no mature trees. New landscaping proposed throughout the project will be coastal native and regionally adapted, with a focus on minimizing water use. A tree survey (Attachment 7) has been completed that includes tree protection guidelines and restrictions for the trees abutting the project site, and a condition of approval has been included that the recommendations in the report are followed before and during construction.

3. Be consistent with any applicable design plans and/or area plans incorporated into the Local Coastal Land Use Plan.

The project is consistent with Beach-South of Laurel Area Plan LCP Policies, including:
 Protect and enhance the charming small-scale residential neighborhoods in the South of Laurel while encouraging the significant development opportunities presented by vacant and underutilized parcels. (LU 2.9)  Encourage mixed-use development in the residential sections of the South of Laurel area on major arterials by overlaying the mixed-use zoning district on appropriate areas (LU 2.10)  Multi-level, large scale development to optimize use of opportunity sites;  Locating parking lots to the rear of structures, and wherever possible underground or within structures;
 Balconies, terraces, courtyards, and similar outdoor spaces to take advantage of views and create street vitality;
The proposed project is consistent the Beach and South of Laurel Design Guidelines as articulated in the staff report, as well as with the purpose of the Tourist Residential Beach Commercial district, which is “to establish standards for development of residential uses mixed with neighborhood commercial, motel, and regional tourist commercial use. These standards are designed both to improve existing uses and encourage new developments in a manner that maintains a harmonious balance between residential and regional commercial uses”. Overall, the project is consistent with the City’s vision for development in the South of Laurel Area in that it provides much needed housing, as well as neighborhood commercial, and meets the purpose of the district.

4. Maintain public access to the coast along any coastline as set forth in the Local Coastal Land Use Plan.

29.10 RESOLUTION NO.

The project involves construction of a mixed-use development along an established street approximately 1,500 feet inland from the coast and will maintain public access to the coast.

5. Be consistent with the Local Coastal Land Use Plan goal of providing visitor-serving needs as appropriate.

The project includes ground floor commercial space providing food and retail uses for visitors, the new residences of the development, as well as existing residences in the South of Laurel area.

6. Be consistent with the Local Coastal Land Use Plan goal of encouraging coastal development uses as appropriate.

The project is consistent with the Local Coastal Land Use Plan goal of redeveloping an underutilized piece of land in the South of Laurel area that will provide much needed housing and attractive commercial space that will appropriately extend the operational activities of the coastal area and help visually connect the coastal areas with the downtown.

Design Permit, Section 24.08.430

7. The site plan shall be consistent with physical development policies of the General Plan, any required or optional element of the General Plan, any area plan or specific plan or other city policy for physical development. If located in the Coastal Zone, a site plan shall also be consistent with policies of the Local Coastal Program.

The subject parcel has a Regional Visitor Commercial (RVC) General Plan designation. This designation applies to areas that “emphasize a variety of commercial uses that serve Santa Cruz residents as well as visitors. Mixed-use development is strongly encouraged in RVC districts”. Specifically, the General Plan RVC designation calls out the South of Laurel area to “mixed-use and residential development along with visitor-serving and neighborhood commercial uses to connect the Beach Area with Downtown Santa Cruz. The Beach and South of Laurel Comprehensive Area Plan provides detailed requirements for this area.” The General Plan allows a floor area ratio (FAR) range of 0.25 to 3.5 for parcels which are located in the RVC and which are included in an area plan. The subject parcel is addressed in the Beach and South of Laurel Plan, which provides standards that drive the minimum and maximum development intensity for the area. The project’s FAR is 2.94, which is within the allowed FAR established in the General Plan. The proposed mixed-use project is consistent with the policies of the General Plan, including the following:
 Land Use Development Policy LU3.4 - In neighborhoods near visitor areas, give priority to uses that serve both visitors and residents.  Land Use Development Policy LU3.7 - Encourage higher-intensity residential uses and maximum densities in accordance with the General Plan Land Use designations.
 Land Use Development Policy LU3.7.1 - Allow and encourage development that meets the high end of the General Plan Land Use designation density unless

29.11 RESOLUTION NO.
constraints associated with site characteristics and zoning development standards require a lower density.
 Land Use Development Policy LU3.8 - Allow the following residential uses to exceed the maximum densities in this chapter: Single-Room Occupancy & Density bonus units.
 Mobility Development Policy M1.1 - Reduce automobile dependence by encouraging appropriate neighborhood and activity center development.  Mobility Development Policy M1.3 - Create pedestrian-friendly frontage and streetscapes and attractive pedestrian-oriented areas.
 Economic Development Policy 1.1.2 - Support the development and expansion of businesses that make a balanced contribution to the cultural, environmental, and economic health of the city.
 Economic Development Policy 1.1.3 - Encourage the development of year-round businesses and visitor activities, resources, and destinations that can also attract and engage local residents.
 Economic Development Policy 5.2 - Provide for residents’ daily shopping needs in local-serving neighborhood commercial centers.
 Economic Development Policy 5.2.1 - Encourage neighborhood shopping in nodes of commercial development that serve residential areas and have adequate transit, pedestrian, and bicycle access.
 Economic Development Policy 5.2.2 - Support the development of neighborhood gathering places in conjunction with local-serving neighborhood commercial.

The Beach and South of Laurel Comprehensive Area Plan (B/SOL Plan) was adopted by the City Council in October 1998. The project site is located in the “South of Laurel” subarea that is strategically located between the revitalized Downtown and the Monterey Bay. Its street system, particularly Pacific Avenue, Front Street and Center Street link the two areas, while the Southern Pacific Railroad tracks form an historical hard rail connection between the beach, the wharf and downtown. As the physical link between these two areas, the revitalization of the South of Laurel is seen as a strategic economic and transportation component of a comprehensive strategy. The purpose of the B/SOL Plan is to:

1. Propose a sensitive and realistic program for neighborhood preservation and revitalization targeted to the Beach Flats, Beach Hill, and South of Laurel areas;

2. Establish a comprehensive program for managing:
 Traffic and transportation,
 Tourism and maritime assets, and
 Expansion of the season and linkage with the Downtown; and

3. Enhance the historic resort attributes of the Beach area for residents and visitors.

The B/SOL Plan generally provides land use, transportation, and design recommendations.

29.12 RESOLUTION NO.
street for both residents of the area as well as visitors, and maximizes the development potential of an underutilized infill site. The development is also consistent with the following Beach and South of Laurel Plan policies:
 Protect and enhance the charming small-scale residential neighborhoods in the South of Laurel while encouraging the significant development opportunities presented by vacant and underutilized parcels. (LU 2.9)  Encourage mixed-use development in the residential sections of the South of Laurel area on major arterials by overlaying the mixed-use zoning district on appropriate areas (LU

2.10)
 Multi-level, large scale development to optimize use of opportunity sites;  Locating parking lots to the rear of structures, and wherever possible underground or within structures;
 Balconies, terraces, courtyards, and similar outdoor spaces to take advantage of views and create street vitality;
 Establish levels of public benefit for higher residential designations.  Encourage mixed-use development in the residential sections of the area on major arterials by overlaying the mixed-use zoning district on appropriate areas.  Implement mechanisms to increase rental housing including stock in the South of Laurel area, including a possible waiver of inclusionary requirements for rental project.  Encourage a mixture of market rate and affordable housing.

The proposed project is consistent with the purpose of the Tourist Residential Beach Commercial district which is “to establish standards for development of residential uses mixed with neighborhood commercial, motel, and regional tourist commercial use. These standards are designed both to improve existing uses and encourage new developments in a manner that maintains a harmonious balance between residential and regional commercial uses.” Overall the project is consistent with the City’s vision for development in the South of Laurel area in that it provides a mixed use development with affordable rental housing and street level commercial uses that connect the downtown to the beach area.

8. The exterior design and appearance of buildings and structures and the design of the site plan shall be compatible with design and appearance of other existing buildings and structures in neighborhoods which have established architectural character worthy of preservation.

The “Beach and South of Laurel Plan Design Guidelines,” adopted by the City in October 1998, is both an appendix to the B/SOL Area Plan and part of the City’s certified LCP. The purpose of the Guidelines is to “promote development that respects the physical and environmental characteristics of the community and site, and which reflects functional and attractive site planning and high quality design.” Guidelines are provided for the South of Laurel area in which the proposed project is located, which recommends the use of Victorian, Spanish Colonial Revival, or other traditional architectural themes. New residential development is to exhibit the high quality design and detail of traditional architecture in the community.

29.13 RESOLUTION NO.

The proposed building has been designed in a Spanish Colonial Revival style and is consistent with the previously listed Beach/South of Laurel Area Plan design guidelines.

Additionally, the overall building mass is broken up by architectural treatments, including decks, trellises and overhangs. Rooftop equipment is incorporated into the roof design and screened from adjacent properties. Utility installations such as trash enclosures, storage units, and parking are designed into the building, making them accessible but screened from view.

The Spanish Colonial Revival design incorporates a variety of exterior finish materials including: white cement plaster stucco, Spanish tile roof, cobalt blue tile, colored mosaic tile, decorative ironwork, Spanish tile stair risers, crown molding, metal railings, wood trellises, single hung vinyl windows, and decorative exterior lighting. To ensure that the final building design is well-articulated with the proposed material palette, a condition of approval requires the plans submitted for building permits shall have the same level of articulation, detailing, and dimensionality as shown in the approved plans.

9. Design of the site plan shall respect design principles in terms of maintaining a balance of scale, form and proportion, using design components, which are harmonious, materials and colors that blend with elements of the site plan and surrounding areas.

Location of structures should take into account maintenance of view; rooftop mechanical equipment shall be incorporated into roof design or screened from adjacent properties. Utility installations such as trash enclosures, storage units, traffic-control devices, transformer vaults and electrical meters shall be accessible and screened.

The General Plan allows a floor area ratio (FAR) range of 0.25 to 3.5 for parcels which are located in the RVC and which are included in an area plan. The subject parcel is addressed in the Beach and South of Laurel Plan, which provides standards that drive the minimum and maximum development intensity for the area. The project’s FAR is 2.94, which is within the allowed FAR established in the General Plan. With the exception of height and setbacks, the R-T(C) zone district standards (requiring compliance with RT(A) district standards) are being met, and siting and design standards are consistent with the Design Guidelines of the Beach and South of Laurel Comprehensive Area Plan. The proposed building has been designed in a Spanish Colonial Revival style and is consistent with the previously listed Beach/South of Laurel Area Plan design guidelines. Additionally, the overall building mass is broken up by architectural treatments, including decks, trellises and overhangs. Rooftop equipment is incorporated into the roof design and screened from adjacent properties. Utility installations such as trash enclosures, storage units, and parking are designed into the building, making them accessible but screened from view.

10. Where a site plan abuts, or is in close proximity to, uses other than that proposed, the plan should take into account its effect on other land uses. Where a nonresidential use abuts or is in close proximity to a residential use, the effect of the site plan should maintain the residential quality of adjacent or nearby areas.

The project abuts a variety of uses, including hotels, multiple-family residential, and industrial uses. With a variety of uses surrounding the site, the mixed-use nature of the proposed project maintains compatibility and harmony with the neighboring uses.

29.14 RESOLUTION NO.

11. The orientation and location of buildings, structures, open spaces and other features of the site plan shall be such as to maintain natural resources including significant trees and shrubs to the extent feasible, maintain a compatible relationship to and preserve solar access of adjacent properties, and minimize alteration of natural land forms; building profiles, location, and orientation must relate to natural land forms.

The flat site is mostly paved with two separate buildings, one containing an auto body shop, and the other housing a Hertz rental car business. There are no trees located on the site, though a tree survey has been submitted that identifies four trees on adjacent properties that border the property lines of the parcel. A tree survey (Attachment 7) has been completed that includes tree protection guidelines and restrictions for the trees abutting the project site, and a condition of approval has been included that the recommendations in the report are followed before and during construction.

With a significant variety of scale surrounding the site, the proposed structure maintains compatibility and harmony with the neighboring uses through site orientation. A solar study has been included with the attached plan set.

12. The site plan shall be situated and designed to protect views along the ocean and of scenic coastal areas. Where appropriate and feasible, the site plan shall restore and enhance visual quality of visually degraded areas.

The project site is not located adjacent to the coastline or within any scenic view area.

13. The site plan shall minimize the effect of traffic conditions on abutting streets through careful layout of the site with respect to location, dimensions of vehicular and pedestrian entrances, exit drives and walkways; through the adequate provision of offstreet parking and loading facilities; through an adequate circulation pattern within the boundaries of the development; and through the surfacing and lighting of off-street parking facilities.

The proposed mixed-use project consists of six stories above one level of underground parking garage with a footprint that covers the majority of the site area. The proposed site plan includes a “U”-shaped building, with access to the project site provided from a new driveway from Center Street near the northern property line. The driveway provides access to both grade level parking as well as an underground level. With a combination of over 13- feet of sidewalk right-of-way, in addition to a 15-foot setback, the building is proposed to be setback approximately 28-feet from the back of curb to provide a wide expanse of sidewalk with almost a public plaza feel.

14. The site plan shall encourage alternatives to travel by automobile where appropriate, through the provision of facilities for pedestrians and bicyclists, including covered parking for bicycles and motorcycles where appropriate. Public transit stops and facilities shall be accommodated as appropriate, and other incentive provisions considered which encourage non-auto travel.

29.15 RESOLUTION NO.

The project incorporates 233 private lockers for bike storage, as well a bike café for residents to store and work on bikes. The bike café has the capacity to store up to 72 bikes. With the project located near the beach, West Cliff path, and Boardwalk, visitor-serving facilities will result in many pedestrian trips between the mixed-use development and these surrounding facilities. The project is also adjacent to transit routes and beach shuttle operations.

15. The site shall provide open space and landscaping which complement buildings and structures. Open space should be useful to residents, employees, or other visitors to the site. Landscaping shall be used to separate and/or screen service and storage areas, separate and/or screen parking areas from other areas, break up expanses of paved area, and define open space for usability and privacy.

The development incorporated a number of common open space areas, with the second floor including residential amenities such as a game room, fitness center and a large podium level open space with seating and landscaping. Additionally, the sixth floor contains a community room and larger outdoor recreation deck facing Center Street. The SRO ordinance requires a minimum of 10 square feet of common usable open space per unit, requiring 2,330 square feet for the project. The project far exceeds the requirement by providing approximately 19,388 square feet of common usable open space. Additionally the majority of units have an associated private patio or deck connected to the unit.

16. The site plan shall reasonably protect against external and internal noise, vibration and other factors, which may tend to make the environment less desirable. The site plan should respect the need for privacy of adjacent residents.

The applicant will be required to obtain a building permit for the new building. The structure will be required to meet all applicable regulations of the California Building Code pertaining to noise, vibration, and other factors affecting indoor and exterior environmental quality. The project respects the privacy of the abutting residents by orienting most balconies and outdoor spaces toward Center Street and the neighboring commercial uses. Conditions of approval require that the applicant submit a project-level noise assessment for review and approval prior to building permit issuance and require compliance with the reports’ recommendations to ensure compliance with the noise policies in the General Plan.

17. Signs shall complement the site plan and avoid dominating the site and/or existing buildings on the site or overwhelming the buildings or structures to which they are attached. Multiple signs on a given site should be of a consistent theme.

The applicant will be required to prepare a final signage plan for the project and submit it for Design Permit review and approval by the Planning and Building Divisions prior to occupancy. A project condition requires a signage plan that has a consistent style and material that integrates with the architectural design of the building.

18. Building and structures shall be so designed and oriented to make use of natural elements such as solar radiation, wind, and landscaping for heating, cooling and ventilation.

29.16 RESOLUTION NO.

The proposed building will be designed to meet the City’s Green Building Program requirements. New planted trees and landscaping will reduce the heat island effect.

19. The site plan shall incorporate water-conservation features where possible, including in the design of types of landscaping and in the design of water-using fixtures. In addition, water restricting showerheads and faucets shall be used, as well as water-saving toilets utilizing less than three gallons per flush.

The building will require issuance of a building permit and water-saving elements will be required consistent with the City’s Water Conservation Ordinance. A project condition requires detailed landscape and irrigation plans to be submitted at the time of the building permit application for review by both the Planning and Water Departments. The landscaping and irrigation plans will need to comply with all requirements of the City's Water Efficient Landscape Ordinance, prior to approval and issuance of the building permit.

The project will be required to comply with the City’s mandatory Green Building Program and CAL Green of the California Building Code), including requirements for high-efficiency appliances and low-water usage fixtures plumbing fixtures. The Building Division will verify that the project has incorporated such water conservation features through the building permit plan check process.

20. In all projects in Industrial (I) Zones, building design shall include measures for reusing heat generated by machinery, computers and artificial lighting.

Due to the project location, this finding is not applicable.

21. In all projects in Industrial (I) Zones, all buildings and structures shall be so designed and oriented to make use of natural lighting wherever possible.

Due to the project location, this finding is not applicable.

22. Heating systems for hot tubs and swimming pools shall be solar when possible but in all cases energy efficient.

The project includes a small spa that will be required to meet green building energy efficiency requirements.

23. Enhance the West Cliff Drive streetscape with appropriate building mass, modulation, articulation, coloring and landscaping that is compatible with and would not diminish the visual prominence of the public open space.

The project site is not located on West Cliff Drive.

29.17 RESOLUTION NO.

Special Use Permit, Section 24.08.050

24. The proposed structure or use conforms to the requirements and the intent of this title, and of the General Plan, relevant area plans, and the Coastal Land Use Plan, where appropriate;
The subject parcel has a Regional Visitor Commercial (RVC) General Plan designation. This designation applies to areas that “emphasize a variety of commercial uses that serve Santa Cruz residents as well as visitors. Mixed-use development is strongly encouraged in RVC districts”. Specifically, the General Plan RVC designation calls out the South of Laurel area to “mixed-use and residential development along with visitor-serving and neighborhood commercial uses to connect the Beach Area with Downtown Santa Cruz. The Beach and South of Laurel Comprehensive Area Plan provides detailed requirements for this area.” The General Plan allows a floor area ratio (FAR) for the RVC land use designation of up to 0.25 to 3.5. The project’s FAR is 2.94, which is within the allowed FAR established in the General Plan. The proposed mixed-use project is consistent with the policies of the General Plan, including the following:
 Land Use Development Policy LU3.4 - In neighborhoods near visitor areas, give priority to uses that serve both visitors and residents.  Land Use Development Policy LU3.7 - Encourage higher-intensity residential uses and maximum densities in accordance with the General Plan Land Use designations.
 Land Use Development Policy LU3.7.1 - Allow and encourage development that meets the high end of the General Plan Land Use designation density unless constraints associated with site characteristics and zoning development standards require a lower density.
 Land Use Development Policy LU3.8 - Allow the following residential uses to exceed the maximum densities in this chapter: Single-Room Occupancy (SRO) & Density bonus units.
 Mobility Development Policy M1.1 - Reduce automobile dependence by encouraging appropriate neighborhood and activity center development.  Mobility Development Policy M1.3 - Create pedestrian-friendly frontage and streetscapes and attractive pedestrian-oriented areas.
 Economic Development Policy 1.1.2 - Support the development and expansion of businesses that make a balanced contribution to the cultural, environmental, and economic health of the city.
 Economic Development Policy 1.1.3 - Encourage the development of year-round businesses and visitor activities, resources, and destinations that can also attract and engage local residents.
 Economic Development Policy 5.2 - Provide for residents’ daily shopping needs in local-serving neighborhood commercial centers.
 Economic Development Policy 5.2.1 - Encourage neighborhood shopping in nodes of commercial development that serve residential areas and have adequate transit, pedestrian, and bicycle access.

29.18 RESOLUTION NO.
 Economic Development Policy 5.2.2 - Support the development of neighborhood gathering places in conjunction with local-serving neighborhood commercial.

1. Propose a sensitive and realistic program for neighborhood preservation and revitalization targeted to the Beach Flats, Beach Hill, and South of Laurel areas;

2. Establish a comprehensive program for managing:
 Traffic and transportation,
 Tourism and maritime assets, and
 Expansion of the season and linkage with the Downtown; and

3. Enhance the historic resort attributes of the Beach area for residents and visitors.

The B/SOL Plan generally provides land use, transportation, and design recommendations.

According to the Plan, the basic policy direction for the area is provided in the City’s General Plan, which designates the area as Regional Visitor Commercial. The project is consistent with the 2030 General Plan and B/SOL Plan in that it will provide an important connection between the downtown area and the beach area by providing commercial retail along the street for both residents of the area as well as visitors, and maximizes the development potential of an underutilized infill site. The development is also consistent with the following Beach and South of Laurel Plan policies:
 Protect and enhance the charming small-scale residential neighborhoods in the South of Laurel while encouraging the significant development opportunities presented by vacant and underutilized parcels. (LU 2.9)  Encourage mixed-use development in the residential sections of the South of Laurel area on major arterials by overlaying the mixed-use zoning district on appropriate areas (LU

29.19 RESOLUTION NO.
 Encourage a mixture of market rate and affordable housing.

25. That any additional conditions stipulated as necessary in the public interest have been imposed;
Additional conditions have been added to the approval in order to ensure the commercial and residential activities do not negatively impact surrounding uses.

26. That such use or structure will not constitute a nuisance or be detrimental to the public welfare of the community; and
The project meets all district development standards and the overall building mass is broken up by architectural treatments, including decks, trellises and overhangs. Rooftop equipment is incorporated into the roof design and screened from adjacent properties. Utility installations such as trash enclosures, storage units, and parking are designed into the building, making them accessible but screened from view. The outdoor public seating spaces are oriented away from nearby residences and separated from those adjacent residential uses by building areas. Taking all of these into consideration, the proposed uses incorporated in to the project will not constitute a nuisance or be detrimental to the public welfare of the community. Additional conditions have been added to the approval in order to ensure the development does not constitute a nuisance or would be detrimental to the public welfare of the community.

27. That all thrift store uses shall include a management plan that identifies collection facilities for donated items, operating hours for donation facilities which discourage unsupervised dropoffs, adequate storage areas for sorting the materials, and provides a plan to properly dispose of unusable items in a timely, secure, and orderly fashion and maintains premises in a clean and attractive condition.

Not applicable.

Density Bonus, Section 24.16.270

28. The housing development is eligible for a density bonus and any concessions, incentives, waivers, modifications, or modified parking standards requested; conforms to all

29.20 RESOLUTION NO.
standards for affordability included in this section; and includes a financing mechanism for all implementation and monitoring costs.

Pursuant to Zoning Code Section 24.16.020(5)(b), “SRO Developments. In a rental residential development comprised of SRO units, twenty percent of the single-room occupancy units shall be made available for rent to very low income households at an affordable rent.” With a base density of 155 units, 31 (20%) of the residential units will be required to be provided as affordable housing units at the very-low income level (50% AMI).

According to AB 2345 Government Code Section 65915(f)(2), if 15% of the total conforming base density is designated very low-income, development projects then qualify for a 50% density bonus, or for this particular project, up to 233 total units. All financing mechanisms for implementation and monitoring costs will be provided by the applicants.

29. Any requested incentive or concession will result in identifiable and actual cost reductions to provide for affordable rents or affordable ownership costs based upon appropriate financial analysis and documentation if required by Section.

Not applicable. The project does not include any requests for incentives/concessions.

30. If the density bonus is based all or in part on dedication of land, the approval body has made the findings included in Section 24.16.230.

Not applicable. The project does not include any requests for dedication of land.

31. If the density bonus, incentive, or concession is based all or in part on the inclusion of a child care center, the development conforms to the standards included in Section

24.16.235.

Not applicable. The project does not include a proposal for a child care center.

32. If the density bonus incentive or concession is approved for a condominium conversion, the development conforms to the standards included in Section 24.16.240.

Not applicable. The project does not include a proposal for a condominium conversion.

33. If the incentive or concession includes mixed-use buildings or developments, the nonresidential land uses will reduce the cost of the housing development and the proposed nonresidential uses are compatible with the housing development and with existing or planned development in the area where the proposed housing development will be located.

Not applicable. The project does not include any requests for incentives/concessions.

34. If a waiver or modification is requested, the applicant has shown that the development standards for which the waiver or modification is requested will have the effect of physically precluding the construction of the housing development at the densities or with the incentives or concessions permitted by this Part 3.

29.21 RESOLUTION NO.

The project proposes to exceed the maximum height 36 feet as required in the R-T(A) zone district, proposing a six story building at approximately 75 feet. Complying with the 36-foot standard would require the building to reduce the number of floors and eliminate a substantial number of residential units. This would physically preclude the construction of the project that would include the number of residential units allowed under the State Density Bonus Law. Additionally, the project proposes a reduction to setback requirements.

Complying with the setbacks required in the R-T(A) zone district would require the building to be increasingly stepped back as the height increases. These increased building setbacks would reduce the volume of the building and eliminate a substantial number of residential units. This would physically preclude the construction of the project that would include the number of residential units allowed under the State Density Bonus Law.

35. If a commercial development bonus is requested, the project complies with the requirements of Section 24.16.258, the city has approved the partnered housing agreement, and the bonus has been mutually agreed upon by the city and the commercial developer.

Not applicable. The project does not include a proposal for a commercial development bonus.

36. If the housing development or the commercial development is in the coastal zone, any requested density bonus, incentive, concession, waiver, modification, modified parking standard, or commercial development bonus is consistent with all applicable requirements of the certified Santa Cruz local coastal program, with the exception of density.

The mixed-use development is in the coastal zone and is consistent with the Santa Cruz local coastal program and the Beach-South of Laurel Area Plan LCP Policies, including:
 Protect and enhance the charming small-scale residential neighborhoods in the South of Laurel while encouraging the significant development opportunities presented by vacant and underutilized parcels. (LU 2.9)  Encourage mixed-use development in the residential sections of the South of Laurel area on major arterials by overlaying the mixed-use zoning district on appropriate areas (LU

2.10)
 Multi-level, large scale development to optimize use of opportunity sites;  Locating parking lots to the rear of structures, and wherever possible underground or within structures;
 Balconies, terraces, courtyards, and similar outdoor spaces to take advantage of views and create street vitality;
The project will not affect coastal views because the property is located approximately 1,500 feet inland from Beach Street, which is the first public roadway from the sea. The project site is not located within any sensitive natural habitat or resource areas as mapped in the General Plan and the Local Coastal Program. The site is mostly paved with associated areas of

29.22 RESOLUTION NO.
landscaping but no mature trees. New landscaping proposed throughout the project will be coastal native and regionally adapted, with a focus on minimizing water use.

The project includes ground floor commercial space providing food and retail uses for visitors, the new residences of the development, as well as existing residences in the South of Laurel area. As proposed, the project is consistent with applicable policies of the Local Coastal Program, which seek to minimize the impact of development on coastal resources and provide visitor-serving uses in the beach area.

With Respect to the California Environmental Quality Act

37. The California Environmental Quality Act (CEQA) provides several “categorical exemptions” which are applicable to categories of projects and activities that the Lead Agency has determined generally do not pose a risk of significant impacts on the environment. The project consists of a 233 SROs and ground floor commercial within the developed urban area of the city of Santa Cruz. The project has been determined to be exempt from CEQA under a Categorical Exemption pursuant to State CEQA Guidelines Section 15332 (Class 32-Infill Development Projects).

The City Council has considered the Categorical Exemption and finds that it is consistent with the California Environmental Quality Act in that the project is an Infill Development Project, in conformance with the General Plan and Zoning designations, less than five acres in size and surrounded by urban uses with no wildlife habitat value, no significant effects relating to traffic, noise, air quality, or water quality, and adequately served by all required utilities and public services. After reviewing the comments received during the public review process, the responses and supporting documentation provided, including the 130 Center Street CEQA Categorical Exemption Review prepared by Dudek, the City Council finds, on the basis of the whole record before it, that there is no substantial evidence that the project will have a significant effect on the environment, and that the Categorical Exemption reflects the City’s independent judgment and analysis.

Nonresidential Demolition Authorization Permit, Section 24.08.1230

38. The cultural resources evaluation is accepted as accurate and complete; and the cultural resources evaluation concludes that the building or structure is not eligible for listing on the city historic building survey.

There are two commercial buildings on the site that are proposed for demolition. The primary structure is a single story commercial building that was constructed in 1963 based on City of Santa Cruz Building Permit records, and the other is the Hertz Rental Car structure that was constructed in 1981 as a detached showroom. Pursuant to the Nonresidential Demolition Authorization Permit ordinance, the purpose of this permit is to evaluate requests for demolition of nonresidential structures fifty years of age or older, and of undetermined age, to ensure that those which may have historic value are not demolished.

A historic evaluation (DPR 523) was prepared by city approved historian Robert Cartier of Archaeological Resource Management in July of 2020 which concluded that that the

29.23 RESOLUTION NO.
property is not listed on the California Register of Historic Resources, the National Register of Historic Places, or the City of Santa Cruz Historic Building Survey, and does not appear eligible for listing in any of the registers. Thus the structures do not appear to be historically significant and are not eligible for listing on the City Historic Building Survey.

39. The project which will replace the demolished building or structure has been, or is concurrently being, approved by the city, and an appropriate building permit has been, or is concurrently being, issued; unless some other practical hardship can be documented rendering this requirement inappropriate.

The proposed mixed-use project is being approved concurrently with the approval to demolish the two subject structures.

40. The property owner has been advised of the benefits of listing the property on the city historic building survey and incorporating the preservation of the historic resource into the proposed project.

Not applicable as the property has been determined to not be eligible for listing.

41. The cultural resources evaluation determines that the resource is eligible for listing on the city historic building survey, appropriate environmental review has been completed in accordance with the California Environmental Quality Act, and the zoning administrator can make a finding of overriding consideration that the replacement project will have public benefits which will outweigh the impact of loss of the historic resource.

It has been determined that the property does not qualify as a historic resource. Therefore, this finding does not apply.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz that it hereby acknowledges the Categorical Exemption and the Nonresidential Demolition Authorization Permit to demolish an existing commercial building, a Density Bonus request to exceed height and reduce setbacks, and a Special Use Permit, Coastal Permit, and Design Permit to construct a six story, mixed-use building with 233 Single Room Occupancy (SRO) units and 2,356 sq. ft. of ground floor commercial space on a parcel located in the RTC/CZ-O/FP-O (Tourist Residential Beach Commercial/Coastal Zone Overlay/Floodplain Overlay) zone districts and Beach and South of Laurel Area Plan subject to the Findings listed above and the Conditions of Approval listed in Exhibit “A,” attached hereto and made a part hereof, thereby denying the appeal.

29.24 RESOLUTION NO.

PASSED AND ADOPTED this 25th day of January 2022, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________
Sonja Brunner, Mayor
ATTEST: _________________________
Bonnie Bush, City Clerk Administrator

29.25 EXHIBIT "A"

CONDITIONS OF APPROVAL FOR THE PROJECT ON PROPERTY AT
130 Center Street – CP21-0011
Nonresidential Demolition Authorization Permit to demolish an existing commercial building, a Density Bonus request to exceed height and reduce setbacks, and a Special Use Permit, Coastal Permit, and Design Permit to construct a six story, mixed-use building with 233 Single Room Occupancy (SRO) units and 2,356sq. ft. of ground floor commercial space on a parcel located in the RTC/CZ-O/FP-O (Tourist Residential Beach Commercial/Coastal Zone Overlay/Floodplain Overlay) zone districts and Beach and South of Laurel Area Plan.

1. If one or more of the following conditions is not met with respect to all its terms, then this approval may be revoked.

2. All plans for future construction which are not covered by this review shall be submitted to the City Planning and Community Development Department for review and approval.

3. This permit shall be exercised within three (3) years of the date of final approval or it shall become null and void.

4. If, upon exercise of this permit, this use is at any time determined by the Planning Commission to be incompatible with the surrounding neighborhood, revocation of, or amendment to, this permit by the Planning Commission could occur.

5. The use shall meet the standards and shall be developed within limits established by Chapter 24.14 of the Santa Cruz Municipal Code as to the emission of noise, odor, smoke, dust, vibration, wastes, fumes or any public nuisance arising or occurring incidental to its establishment or operation.

6. The applicant shall be responsible for the completeness and accuracy of all forms and supporting material submitted in connection with any application. Any errors or discrepancies found therein may result in the revocation of any approval or permits issued in connection therewith.

7. The development of the site shall be in substantial accordance with the approved plans submitted and on file in the Department of Planning and Community Development of the City of Santa Cruz. All aspects of construction must be completed prior to occupancy.

Major modifications to plans or exceptions to completion may be granted only by the City authority which approved the project.

29.26 8. All refuse and recycling activities during construction shall be done in accordance with Chapter 6.12 of the Santa Cruz Municipal Code. Be aware that private companies offering refuse or debris box services are not allowed to operate within the City limits, except under certain limited circumstances detailed in Chapter 6.12.160.

9. Future uses shall submit a disclosure statement for Zoning Administrator review prior to issuance of any occupancy permit regarding materials and chemicals to be used and disposed of from the site.

10. The property owner agrees as a condition and in consideration of the approval of this discretionary development permit that it will, pursuant to agreement and/or statutory provisions as applicable, including but not limited to Government code Section 66474.9, defend, indemnify and hold harmless the City of Santa Cruz or its agents, officers and employees from any claim, action or proceeding against the City or its agents, officers or employees to attack, set aside, void or annul this approval, which action is brought within the time period provided for under law, including but not limited to, Government Code Section 66499.37, as applicable. The property owner will reimburse the City for any court costs and attorney’s fees, which the City may be required by a court to pay as a result of such action. City may, at its sole discretion, participate in the defense of such action; but such participation shall not relieve applicant of his obligations under this condition. An agreement to this effect shall be recorded upon demand of the City Attorney or concurrent with the issuance of building permits, use of the property, filing of the final map, whichever occurs first and as applicable. The City shall promptly notify the property owner of any such claim, action or proceeding and the City shall cooperate fully in the defense thereof. If the City fails to promptly notify the property owner of any such claim, action or proceeding or fails to cooperate fully in the defense thereof, the property owner shall not thereafter be responsible to defend, indemnify or hold the City harmless.

PRIOR TO BUILDING PERMIT ISSUANCE:

11. All final working drawings shall be submitted to the Zoning Administrator for review and approval in conjunction with building permit application. The plans submitted for building permits shall have the same level of articulation, detailing, and dimensionality as shown in the approved plans. All approved exterior finishes and materials shall be clearly notated on the building permit plans.

12. The applicant and contractor who obtains a building permit for the project shall be required to sign the following statement at the bottom of these conditions, which will become conditions of the building permit:
“I understand that the subject permit involves construction of a building (project) with an approved Design Permit. I intend to perform or supervise the performance of the work allowed by this permit in a manner which results in a finished building with the same level of detail, articulation, and dimensionality shown in the plans submitted for building permits. I hereby acknowledge that failure to

29.27 construct the building as represented in the building permit plans, may result in delay of the inspections process and/or the mandatory reconstruction or alteration of any portion of the building that is not in substantial conformance with the approved plans, prior to continuation of inspections or the building final.” Signature of Building Contractor Date

13. Plans submitted for building permit issuance shall include civil plans and documents prepared by a licensed civil engineer that include dedications, architectural plans prepared by a California licensed architect, and landscape plans. All plan sheets shall be internally consistent.

14. All requirements of the Building, Fire, Public Works and Water Departments shall be completed prior to occupancy and continuously maintained thereafter.

15. Adequate provisions shall be made to supply water to each of the premises covered by this application. The design of water facilities shall be to standards of the Water Department, and plans therefore must be submitted to the Water Department Director for review and approval prior to the issuance of a building permit.

16. Plans submitted for building permit issuance shall include electric vehicle charging stations as required per Section 24.12.241 of the Zoning Ordinance.

17. Landscape and irrigation plans shall be submitted at the time of the building permit application and will be reviewed by both the Planning Department and Water Department.

The landscape and irrigation plans shall demonstrate compliance with all requirements of the City’s Water-Efficient Landscaping Ordinance in Chapter 16.16 of the Santa Cruz Municipal Code prior to issuance of the building permit.

18. The building permit plans shall include a construction plan that indicates site access areas, staging areas, and parking areas for construction vehicles during all phases of construction.

The hours of construction shall comply with Chapter 9.36 of the Municipal Code.

19. All trees shall be a minimum 15-gallon size.

20. Bike parking shall be provided in accordance with Section 24.12.250-252 of the City's Zoning Ordinance.

21. All utilities and transformer boxes shall be placed underground in accordance with the provisions of Section 24.12.700 through 24.12.740 of the Zoning Ordinance. Private utilities are not permitted to be located within the public right of way without prior approval of the Public Works Department.

29.28 22. A drainage plan shall be submitted in conjunction with application for building permits.

23. The plans shall identify the location and size of the heating structure for the spa. The equipment shall be located within an enclosed structure and shall be located away from residences and shall not be visible from the public way. If feasible, the heating equipment shall be solar-generated. Noise levels from the heating unit shall be considered in determining the necessary sound ratings for nearby residential construction.

24. Plans submitted for building permits shall demonstrate compliance with Storm Water Best Management Practice (BMP) and Low Impact Development (LID) requirements for Private and Public Development projects contained in “Chapter 6B of the Best Management (BMP) Practices Manual for the City’s Storm Water Management Program”. All implemented LID measures shall be shown on the plans. A final Storm Water Control Plan (SWCP), Operations & Maintenance Plan and signed Maintenance Agreement shall also be submitted with the plans. The SWCP shall demonstrate that the project meets the applicable requirements in the City’s Storm Water BMPs for Private and Public Development Projects.

25. Handicap access shall be provided in accordance with California Building Code.

26. All new mechanical equipment and appurtenances, including gas and water meters, electrical boxes, roof vents, air conditioners, antennas, etc. visible from the public way and from adjacent properties, shall be screened with material compatible with the materials of the building and shall be subject to the approval of the Zoning Administrator.

27. Final colors shall be approved by the Zoning Administrator prior to application for building permits.

28. The applicant shall be responsible for filing a Notice of Intent (NOI) with the State Regional Water Quality Control Board (RWQCB) and for developing a Storm Water Pollution Prevention Plan (SWPPP) prior to commencement of any soil disturbing activities at the site. Prior to issuance of a building permit, the applicant shall provide the City with proof of coverage under the state’s Construction Activities Storm Water General Permit, including a copy of the letter of receipt and Waste Discharger Identification (WDID) number issued by the State Regional Water Quality Control Board (SWQCB) that acknowledges the property owner’s submittal of a complete Notice of Intent (NOI) package.
i. Planning, Building, and Public Works permits associated with the Coastal Development Permit approval referenced herein, shall be the responsibility of the Permittee or successors and assigns; and that the same risk, liability, and indemnification criteria outlined above shall apply to the City’s cessation or relocation of access or services.

29. An exterior lighting plan shall be provided which shall indicate that all exterior building lighting and landscape lighting is shielded to contain the light source in a downward

29.29 direction to minimize off-site glare. Sufficient exterior lighting shall be provided at the sidewalk, within recessed areas, and within the parking garages to provide security and safety to pedestrians at night.

30. Fees. The following fees shall be paid prior to building permit issuance in addition to all other fees required for building permit issuance:
(a) The applicant shall pay required Traffic Impact Fees (TIF), currently estimated at $308,000 based on the applicant’s traffic impact analysis report, unless phased or deferred payment terms are approved by the Planning and Public Works Directors.

Changes to the project, net new PM Peak Hour Trips and/or the per trip fee may change the amount of the TIF. The final TIF amount will be determined by the City based on the final building permit plans.
(b) The applicant shall pay the fair share of Downtown Transportation Improvements, currently estimated at $32,335.
(c) The applicant shall pay the Park and Recreation Facility Tax pursuant to Chapter

5.72 of the City of Santa Cruz Municipal Code based on the final building permit plans.
(d) The applicant shall pay the Child Care Impact Fees and Public Safety Impact Fees pursuant to Chapters 18.48 and 18.49 of the City of Santa Cruz Municipal Code based on the final building permit plans.

31. The applicant shall pay required Public Works On-Site and Off-Site Public Improvements Inspection Fee based on the final building permit

32. The applicant shall provide Planning and Building Department staff with verification that a qualified geotechnical engineer has reviewed the plans for consistency with the project geotechnical and geologic reports, prior to issuance of a building permit. A final review letter shall be provided by the geotechnical engineer prior to final inspection.

33. A project-level noise assessment shall be submitted as part of the building permit plan check process. The window and door schedules shall clearly note the STC ratings for all exterior windows and doors. The ratings shall comply with all building codes and shall take into consideration all on-site noise generating equipment, such as the pool/spa equipment, etc.

34. Plans shall include a note that the project is located in a sensitive archaeological area and is subject to on-site monitoring by a qualified archaeologist during all earth-disturbing activities. Failure to provide on-site monitoring could result in delays in construction, fines, and subsequent subsurface investigation.

35. The applicant shall submit a copy of a signed contract with a city-approved archaeologist to perform on-site monitoring during all earth-disturbing activities.

36. Requirements for the approval of grading:

29.30  All grading shall be done in accordance with the latest City of Santa Cruz Municipal Code, Chapter 24.27.
 All work shall be in accordance with recommendations specified in the geotechnical investigation report prepared.
 All clearing, site preparation or earth work shall be performed under inspection by the Soils Engineer and to the satisfaction of the Soils Engineer.  Dust caused by the grading operations shall be controlled by proper watering.  A grading permit from the Chief Building Official will be required prior to commencement of work.
 A pre-grading conference at the site is required prior to the start of grading with the following people present: owner, contractor, engineer, soils engineer, and City Inspector, or their representatives.
 The engineer will inspect the site after grading has been completed, and inform the City of Santa Cruz whether grading was done in conformance with the grading plans.  Plans set forth in the schedule, location, and type of planting shall be submitted to the Planning Department for approval upon completion.
 Work shall be done in accordance with approval plans on file in the Building Department.
 Grading shall be done during periods of dry weather, and protective measures shall be incorporated during grading to prevent siltation from any grading project halted due to rain.

37. All commercial spaces shall be constructed to support a future food service use. Plans must include ducting and venting plans for all commercial spaces. All ducting and venting should be designed to be hidden or incorporated into the building design. Plans shall also show the locations of grease traps, grease lines, and grease storage facilities.

38. The owner shall comply with the inclusionary housing requirements as outlined in Section

24.16 of the Zoning Ordinance. A Participation Agreement establishing compliance with inclusionary housing requirements shall be entered into prior to building permit issuance.

DURING CONSTRUCTION:

39. During all grading and subsurface excavations (including utility-line trenching) an archaeologist, authorized by the Planning Department, shall be present to collect and catalog any material uncovered. The cost for this service shall be paid by the applicant. At the completion of subsurface work, the applicant shall submit a letter prepared by the project archaeologist to confirm that the required monitoring has been completed and to report the results of the monitoring.

40. Any person exercising a development permit or building permit who, at any time in the preparation for or process of excavating or otherwise disturbing earth, discovers any human remains of any age or any artifact or any other object which reasonably appears to be evidence of an archaeological/cultural resource or paleontological resource, shall:
a. Immediately cease all further excavation, disturbance, and work on the project site;

29.31 b. Cause staking to be placed completely around the area of discovery by visible stakes not more than ten feet apart forming a circle having a radius of not less than one hundred feet from the point of discovery; provided, that such staking need not take place on adjoining property unless the owner of the adjoining property authorizes such staking;
c. Notify the Santa Cruz County sheriff-coroner and the city of Santa Cruz planning director of the discovery unless no human remains have been discovered, in which case the property owner shall notify only the planning director; d. Grant permission to all duly authorized representatives of the sheriff-coroner and the planning director to enter onto the property and to take all actions consistent with this section.

41. Work shall be halted and resources examined in the event of encountering archaeological or paleontological resources during construction. If the find is significant, the city will require the treatment of the find in accordance with the recommendations of the evaluating paleontologist. Treatment may include, but is not limited to, specimen recovery and curation or thorough documentation.

42. The plan for erosion control approved as part of this application shall be submitted and all work installed by November 1.

43. Grading shall be done during periods of dry weather and protective measures shall be incorporated during grading to prevent siltation from any grading project halted due to rain.

44. Prior to site grading or any disturbance all trees and/or tree stands indicated for preservation on approved plans shall be protected through fencing or other approved barricade. The recommended tree protection included as part of the arborist report (Tree Survey & Preliminary Impact Assessment. December 13, 2020. Prepared by Kurt Fouts) shall be adhered to. Such fencing shall protect vegetation during construction and shall be installed to the satisfaction of the Director of Planning and Community Development prior to construction. A signed contract with a certified arborist shall be provided prior to building permit issuance to ensure that the arborist report recommendations are implemented.

45. No alteration of grade shall occur within the drip line of any tree or tree stand marked for preservation.

46. No equipment storage, filling/stockpiling or storage and/or dumping of construction-related materials shall occur within the drip line of any tree and/or tree stand marked for preservation.

47. Trees damaged in the course of construction shall be repaired in accordance with accepted arboreal methods. All required tree repair shall be completed and accepted by the City of Santa Cruz prior to occupancy of the premises.

29.32 48. Any tree marked for preservation which is subsequently removed shall be replaced by two (2) specimen trees of a variety and at locations specified by the Director of Planning. All such trees shall be replaced prior to occupancy of the premises.

PRIOR TO BUILDING PERMIT FINAL/OCCUPANCY:

49. All landscaping shall be installed prior to final utility release or issuance of occupancy permits.

50. Subsequent to occupancy of the premises, all landscaping shall be permanently maintained.

Such maintenance shall be secured through an 18-month bond prior to occupancy.

51. The applicant shall prepare a signage plan for the project and submit it for design permit review and approval before occupancy of structure.

OPERATIONAL CONDITIONS:

52. The property owner shall be responsible for the on-going maintenance of the building and site in good condition including maintenance of exterior materials, landscaping, sidewalks, street furniture, lighting, open space areas, upper floor balconies free of clutter, appropriate window treatments, and the parking garages.

53. This permit does not allow for the service of alcohol or live entertainment with future commercial uses. Any proposed alcohol or live entertainment uses shall obtain approval of a separate Use Permit and/or entertainment permit.

54. Prior to commercial/business use of a building or site, owners or tenants shall obtain a Zoning Clearance/Occupancy Permit from the City Planning Department and a Business License from the City Finance Department.

55. Security cameras shall be provided in the parking garages, stairwells, and plazas.

Recordings shall be accessible to police within 24 hours with a minimum 30-day retention capability.

56. Ground floor glass shall not be reflective, tinted, mirrored or otherwise screened from public view.

29.33 29.34

29.35 29.36

29.37 To: Ryan Bane, Senior Planner
City of Santa Cruz Planning and Community Development Department From: Stephanie Strelow, Daniel Hoffman
Subject: 130 Center Street CEQA Categorical Exemption Review Date: January 10, 2022

As a follow-up to our recent discussions, this memo provides a review of application of CEQA Guidelines section 15332, Class 32 categorical exemption (In-fill) to the proposed project at 130 Center Street.

Background

1. Application No: CP21-0011

2. Project Title: Calypso - 130 Center Street Project

3. Project Location: 130 Center Street (007-023-26); see Figure 1.

4. General Plan Designation: Regional Visitor Commercial (RVC)

5. Zoning: Tourist Residential Beach Commercial (RTC) / Coastal Zone Overlay (CZ-O) / Floodplain Overlay (FP-O)
Project Location
The project is located at 130 Center Street in the City of Santa Cruz (City) on a flat 1.19-acre (51,692-square-foot) parcel. The project site is located on the eastern side of Center Street, immediately north of the intersection of Center and Front Streets and is surrounded by commercial and residential uses. The site is bounded by an auto body shop to the north, a motel to the south, multi-family residential development to the east, and commercial retail uses and Depot Park to the west. The flat site is mostly paved with surface parking and two separate buildings, one containing an auto body shop and the other housing a Hertz rental car business. The site contains no trees. A tree survey submitted as part of the application identifies four trees on adjacent properties that border the property lines of the parcel.

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Figure 1. Project Location

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Project Description
The project consists of a Nonresidential Demolition Authorization Permit to demolish two existing commercial building, a Density Bonus request to exceed height and reduce setbacks, and a Special Use Permit, Coastal Permit, and Design Permit to construct a six-story, mixed-use building consisting of one level of underground parking, ground-level commercial space, and 233 single-room occupancy (SRO) residential units. The project proposes the demolition of two existing onsite commercial buildings. The proposed mixed-use development would provide 209 parking spaces, two ground-floor commercial spaces totaling 2,356 square feet, 61 new trees, landscaping, open space, and recreational amenities for residents. The project would connect to the existing City water, storm drain, and sanitary sewer infrastructure. Stormwater would be controlled onsite through various measures including a biofiltration area, mechanical filtration, and planters. Grading for the project would consist of cuts of soil up to 15 feet deep for the planned parking garage basement excavation.

Density Bonus Request
The project includes a density bonus request pursuant to California Government Code §§ 65915 – 65918, which was enacted in 1979 to encourage the provision of affordable housing units by offering a combination of benefits to developers. For projects that include the requisite number of affordable housing units, and upon the request of an applicant, cities are required to (i) allow more market rate units to be built than otherwise allowed by the applicable zoning designation); (ii) provide “incentives or concessions,” such as reduced development standards, that result in actual and identifiable cost savings for the project; (iii) provide “waivers or modifications” of development standards that would physically preclude the project from being constructed; and (iv) allow reduced parking requirements. Cities are generally obligated to grant a density bonus and incentives, concessions, waivers, or reductions in development standards to the developer so long as the proposed development complies with the applicable affordability requirements and the waivers or incentives/concessions meet certain standards. Projects that include a specified amount of affordable housing are entitled to a density bonus, even if the density bonus would allow a project to exceed the maximum density under the City’s general plan and zoning code.

The amount of the density bonus is based on the number of affordable units at each income level that are included in a project. To determine whether a project qualifies for a density bonus, the percentage of affordable units is based on the maximum number of units that would be permitted under the City’s zoning code (i.e., the “base density”). Market-rate projects providing certain percentages of affordable units or units at deeper levels of affordability are entitled to an increase in density up to 50% of the total number of units that are allowed under the City's Zoning Ordinance, depending on specified percentages and levels of affordability. The density bonus units themselves are not required to be affordable, and pursuant to Section 24.16.250(2) of the Santa Cruz Municipal Code (as well as the State Density Bonus and California case law), “density bonus units shall not be included in the “total units” when determining the number of affordable units required to qualify a housing development for a density bonus.” Thus, by law, the percentages of affordable units that qualify a project for the density bonus are based on the base project only and not the base project plus the density bonus units.

City staff has determined the base density is 155 units that could be developed on the project site under current General Plan and zoning requirements. With a base density of 155 units, 31 (20%) of the residential units will be required to be provided as affordable housing units at the very-low income level. According to Government Code Section 65915(f)(2), if 15% of the total conforming base density is designated very low-income, development projects then qualify for a 50% density bonus, which results in up to 233 total units as proposed with this project.

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In addition to allowing more market rate units to offset the cost of providing affordable units, the law also provides a variety of tools that applicants can utilize to make projects physically or more economically feasible, including incentives/concessions and waivers that allow for modification of development standards if those standards would result in “actual and identifiable cost reductions” to the project or that “physically preclude” construction of the density bonus project. The project applicant is allowed to request as many waivers from development standards as needed if the development standard would preclude the density bonus project from being built at the allowed density. The applicant has requested two waivers of development standards, both of which are required to be waived if they preclude project development.

Waiver 1: The project proposes to exceed the maximum height 36 feet as required in the R-T(A) zone district, proposing a six-story building at approximately 75 feet. Complying with the 36-foot standard would require the building to reduce the number of floors and eliminate a substantial number of residential units. This would physically preclude the construction of the project that would include the number of residential units allowed under the State Density Bonus Law.

Waiver 2: The project proposes a reduction to setback requirements. Complying with the setbacks required in the R-T(A) zone district would require the building to be increasingly stepped back as the height increases.

These increased building setbacks would reduce the volume of the building and eliminate a substantial number of residential units. This would physically preclude the construction of the project that would include the number of residential units allowed under the State Density Bonus Law.

Pursuant to density bonus state law and the City’s zoning ordinance, the applicant will be required to provide justification for any requested waivers. The City must grant these waivers unless they violate state or federal law, create a specific adverse impact on health and safety or the physical environment that cannot be mitigated, or adversely impact real property listed on the California Register of Historical Resources. The City has no evidence that the following waivers requested should not be granted as required by state law:

Reasons Why Project is Exempt
CEQA provides “categorical exemptions” that are applicable to categories of projects and activities that the California Natural Resources Agency has determined generally do not pose a risk of significant impacts on the environment. The Class 32 categorical exemption is for “infill development” projects that meet the following criteria:
(a) The project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations; (b) The proposed development occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses;
(c) The project site has no value as habitat for endangered, rare or threatened species; (d) Approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and
(e) The site can be adequately served by all required utilities and public services.

The proposed project meets all of the foregoing criteria to claim the application of the infill exemption, as explained below.

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A. Consistency with General Plan and Zoning Designations, Policies, and Regulations The project is consistent with General Plan and zoning land use designations and all applicable General Plan policies and zoning regulations. The project site is designated Regional Visitor Commercial (RVC) in the General Plan. The RVC designation is applied to areas that “emphasize a variety of commercial uses that serve Santa Cruz residents as well as visitors. Mixed-use development is strongly encouraged in RVC districts”. Specifically, the RVC designation calls out the South of Laurel area for “mixed-use and residential development along with visitor-serving and neighborhood commercial uses to connect the Beach Area with Downtown Santa Cruz. The Beach and South of Laurel Comprehensive Area Plan provides detailed requirements for this area.” The General Plan allows a floor area ratio (FAR) range of 0.25 to 3.5 for parcels that are designated RVC and are included in an area plan. The project is located within the boundaries of the Beach and South of Laurel (B/SOL) Plan, which provides standards that drive the minimum and maximum development intensity for the area. The project’s FAR is 2.94, which is within the allowed FAR established in the General Plan. Thus, the proposed mixed-use project land uses are consistent with the General Plan designation. The proposed project also is consistent with the policies of the General Plan and the provisions and recommendations of the B/SOL Plan.

Project consistency with General Plan policies and regulations is described further in the January 25, 2022 City Council staff report.

As previously indicated, the project involves a Density Bonus request that would require a waiver of development standards that would physically preclude the construction of the density bonus project. As described above and further in the City staff report dated October 11, 2021, the project involves a waiver to allow for three additional stories and reduced setbacks; these waivers are required because the applicant has shown that applicable zoning development standards would physically preclude the construction of the number of residential units allowed under the State Density Bonus Law.

The project site is zoned R-T(C) (Tourist Residential Beach Commercial) with Coastal Zone (CZ-O) and Floodplain (FP-O) Overlays. The purpose of the R-T(C) district is to establish standards for development of residential uses mixed with neighborhood commercial, motel, and regional tourist commercial use. Pursuant to 24.10.620.2(i) of the Santa Cruz Municipal Code, “Mixed residential and commercial developments with noncommercial uses on the ground floor, subject to the R-T(A) District regulations” and 24.10.620.2(p) are permitted, “Single-room occupancy housing with sixteen units or more” are allowed subject to approval of a Special Use Permit and Design Permit, both of which are included as part of this application. Municipal Code Section 24.10.620.2(i) states that the R-T(A) (Subdistrict A – Medium-Density Residential) Zone District standards are to be applied to the project.

As indicated above, the applicant is requesting a height waiver and a reduction to the required setbacks as part of the density bonus request as explained below. With the exception of height and setbacks, project is consistent with all the R-T(A) zone district requirements.

The maximum height of buildings in the R-T(A) zoning district is 36 feet. However, California State Density Bonus Law and the City’s corresponding Density Bonus Ordinance provide tools to incentivize affordable housing and/or deeper levels of affordability. One incentive is that applicants can utilize a waiver or modification to development standards if those standards would “physically preclude” construction of the density bonus project. For the proposed project, the applicant is requesting a waiver to the district height standard to allow for three additional stories, with the highest point of the building proposed at approximately 75 feet. There are

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roof structures that extend above the 75-foot height, including stairway housing for access to roof decks and a decorative bell tower, which are also included as part of the requested height waiver, however these types of features are typically permitted to exceed height standards under Section 24.12.150 of the Santa Cruz Municipal Code. A waiver to front, side, and rear yard setbacks is proposed as detailed in the City staff report for the project.

The court decision in Wollmer v. City of Berkeley expressly held that the waivers a city was required to grant for a Density Bonus-eligible project did not result in planning and zoning inconsistencies that disqualified the project from the categorical exemption for infill development, because the mandatory nature of the waivers meant that those standards were inapplicable to the project. The Court found that “taking these laws together as they operate in the context of a density bonus project, it is clear that the waived zoning standards are not “applicable” and that the requirements of Guidelines section 15332, subdivision (a) were met.” Therefore, based on the City’s analyses and the Wollmer decision, the project is consistent with the City’s General Plan designation and all applicable General Plan policies as well as with applicable zoning designations and regulations.

B. Project Site Size and Surroundings
The 1.19-acre site is entirely located within City of Santa Cruz limits and is less than five acres in size. The project site is surrounded by urban uses including an auto body shop to the north, hotel use to the south, multifamily residential development to the east, and commercial retail uses and Depot Park to the west. The project area is served by the Santa Cruz Metropolitan Transit District (Metro) bus service. The nearest bus stop to the project site is approximately 300 feet to the east along Pacific Avenue which serves the Metro Routes 19 and

20. C. Project Site Habitat Value
The project site and surrounding properties are developed. The site is developed with two existing commercial uses and surface parking lot; the site has no trees and is almost entirely covered with existing pavement or structures. The site is not within mapped areas of potential sensitive habitat as depicted in the City’s General Plan, and there are no known endangered or threatened species on or adjacent to the site due to the site’s location within a developed urban area (City of Santa Cruz 2012a). Therefore, the project has no value as habitat for endangered, rare, ore threatened species.

D. Significant Effects Relating to Traffic, Noise, Air Quality, or Water Quality Traffic
In December 2018, the California Natural Resources Agency certified and adopted a CEQA Guidelines update package, including the new Guidelines section implementing Senate Bill 743. SB 743 and the Guidelines state that level of service (congestion) will no longer be considered to be an environmental impact under CEQA and that vehicle miles traveled (VMT) is the most appropriate measure of transportation impact. Cities were required to adopt new thresholds and/or procedures related to VMT by July 2020.

In accordance with the amended CEQA Guidelines, the City has transitioned from intersection level of service (LOS) formerly used for traffic impact analyses to VMT as the metric for determining potentially significant

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impacts. The City adopted a VMT transportation threshold on June 9, 2020 in accordance with CEQA and state requirements. The threshold generally establishes that a project exceeding a level of 15% below the Countywide average VMT may result in a significant transportation impact.

The City’s guidelines to determine whether a land use project is within the VMT threshold includes a screening process in which situations are identified under which projects are determined to not have a significant impact and further analysis is not required. Projects, or portions of the project, that meet the screening criteria do not require a CEQA transportation analysis. Such projects will have a non-significant CEQA transportation impact based on their project location and characteristics. These include:
• Small projects that generate fewer than 110 trips per day; • Projects near high quality transit: within a ½ mile of a major transit stop or a high quality transit corridor with a combined service interval frequency of 15 minutes or less during the AM and PM peak hours;
• Local-serving retail;
• Local essential service;
• Map based screening; and
• Redevelopment projects that do not result in a net increase in VMT.

According to the City’s VMT Implementation Guidelines, retail development less than 50,000 square feet can be considered local-serving retail. The policy states that local-serving retail development would have a lessthan-significant impact on VMT. The project proposes 2,618 square feet of retail use on the ground floor, so it is considered local-serving and would not have a VMT impact. Additionally, projects within one half-mile of an existing major transit stop would be expected to result in a less-than-significant impact (City of Santa Cruz 2020). The project site is located within one-half of a major transit stop (Santa Cruz Metro Station). Thus, the project would not result in a significant impact related to VMT based on the City’s adopted threshold and would not conflict or be inconsistent with CEQA Guidelines section 15064.3.

The project traffic study also identified the VMT for the residential portion of the project. When assessing a residential project, the project’s VMT is divided by the number of residents expected to occupy the project to determine the VMT per capita. When assessing a retail project, the project’s total VMT, as opposed to a percapita or per-employee VMT metric, is measured. The total VMT for the region with and without the project is calculated. The difference between the two scenarios is the net change in total VMT that is attributable to the project. A project may indicate a significant transportation impact if the anticipated VMT exceeds 85% of existing County-wide average VMT per capita. The VMT threshold is 8.7 VMT per capita, which is a 15% reduction from the existing County-wide average VMT of 10.6. The estimated project VMT is 4.2 per capita, which would not exceed the City’s threshold of 8.7 VMT per capita. Because the project also is located within ½ mile of a major transit stop and the project’s per capita VMT also is below the City’s threshold, the project would result in a less-than-significant impact related to traffic (Hexagon Transportation Consultants 2021).

It is also noted that a traffic impact study was prepared for the project in accordance with City requirements.

The study found that the intersection level of service analysis results show that all study intersections would operate at acceptable LOS during both AM and PM peak hours under existing plus project conditions.

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Noise
The project would include mixed-use residential and commercial development with predominantly residential uses. Residential land uses would not be associated with activities that would generate substantial permanent increases in ambient noise levels. Per City staff review, the project respects the privacy of the abutting residents by orienting most balconies and outdoor spaces toward Center Street and the neighboring commercial uses.

The project would result in a minor traffic increase over existing conditions, but it would not be of a magnitude to affect ambient noise levels or result in a substantial increase in ambient noise levels.

In addition, Municipal Code Section 9.36.010 prohibits offensive noise between the hours of 10 PM and 8 AM and Section 9.36.020 prohibits unreasonably disturbing noises. Furthermore, Section 24.14.260 prohibits increases of sound levels above five dBA above the local ambient noise level on a residential property. These regulations are intended to prevent increases in ambient noise levels and would be considered uniformly applied regulations to which the proposed Project would be subject to compliance.

There also would be a temporary increase in existing noise levels during grading and construction of the project.

Noise impacts resulting from construction would depend on the noise generated by various pieces of construction equipment, the timing and duration of noise-generating activities, and the distance between construction noise sources and noise-sensitive receptors, as well as existing ambient noise levels. Noise generated during construction would vary throughout the construction period and on any given day, depending on the construction phase and the type and amount of equipment used at the construction site. The highest noise levels would be generated during grading of the site, with lower noise levels occurring during building construction and finishing. Sensitive noise receptors are located at an apartment complex approximately 200 feet west of the project site. However, construction sound levels would be intermittent and varied through a single day as well as the duration of project construction. Overall, construction noise levels would be temporary, short-term and fluctuate throughout the construction period.

Therefore, the proposed project’s impacts related to permanent and temporary increased noise levels would be less than significant.

Furthermore, a noise assessment study was performed for the project, which evaluated project noise exposures against standards of the City’s Noise Element, State of California Code of Regulations, Title 24, and the CALGreen Non-Residential Mandatory Measures of Title 24. The study concludes that the project would be exposed to exterior noise levels that are within the 65-decibel (dB) day-night level (DNL) average sound level limit set by the City’s Noise Element standards; therefore, the study does not provide further design or construction recommendations to manage exterior noise levels (Edward L. Pack Associates, Inc. 2021). The study also evaluates levels of interior noise exposure for the project and concludes that exterior noise levels could exceed City Noise Element standards of 45 dB DNL by 2 db. The study provides interior design recommendations for the project to achieve compliance with this standard. Implementation of these design recommendations would be required prior to issuance of the project’s building permit. Therefore, the project would not result in any significant effect related to noise.

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Air Quality
The California Emissions Estimator Model (CalEEMod) Version 2020.4.0 was used to estimate criteria air pollutant emissions generated during construction and operation of the proposed project. CalEEMod is a statewide computer model developed in cooperation with air districts throughout the state to quantify criteria air pollutant emissions associated with construction activities from a variety of land use projects, such as residential, commercial, and industrial facilities. A construction assumptions scenario was developed based on the best available information known and provided by the applicant. Key construction assumptions include phase types, phase timing and duration, off-road equipment use (e.g., type, quantity, and hours of operation per day), number of vehicle trips (e.g., haul trucks, vendor trucks, and worker vehicles) and trip distance, ground disturbance acreage, amount of demolition debris, and paving area.

Emissions of criteria air pollutants associated with construction and operation of the proposed project based on the CalEEMod results are shown on Tables 1 and 2. As shown, maximum daily emissions would not exceed the applicable Monterey Bay Air Resources District (MBARD) significance threshold. related to air quality.

Potential conflicts with the MBARD’s Air Quality Management Plan (AQMP) also were considered, using MBARD’s procedure, which compares residential dwelling units with the Association of Monterey Bay Area Governments’ (AMBAG’s) adopted housing unit forecast for the City. The City had 24,169 existing dwelling units as of January 1, 2021 (California Department of Finance 2021), and approximately 1,356 residential units are under construction or have been approved. With the addition of these units, the City’s housing units would total 25,525 dwelling units. That number would increase to 25,758 dwelling units with the addition of the proposed project, which is below the AMBAG 2018 Regional Growth Forecast of 27,706 dwelling units for the year 2025.

Therefore, the proposed project would be consistent with the AQMP, and would not conflict with or obstruct implementation of the AQMP.

Therefore, project emissions would result in a less-than-significant impact Table 1. Estimated Maximum Daily Construction Criteria Air Pollutant Emissions Year
ROG NOx CO SOx PM10 PM2.5
pounds per day
2022 1.30 19.45 9.04 0.04 1.50 0.69
2023 4.12 32.21 41.44 0.09 3.30 1.85
2024 37.18 32.61 44.46 0.10 3.61 1.91
Maximum Daily
Emissions

37.18 32.61 44.46 0.10 3.61 1.91
MBARD Threshold N/A N/A N/A N/A 82 N/A
Threshold Exceeded? N/A N/A N/A N/A No N/A
Notes: CO = carbon monoxide; MBARD = Monterey Bay Air Resources District; N/A = not applicable; NOx = oxides of nitrogen; PM10 = coarse particulate matter; PM2.5 = fine particulate matter; ROG = reactive organic gases; SOx = sulfur oxides.

The values shown are the maximum summer or winter daily emissions results from CalEEMod.

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Table 2. Estimated Maximum Daily Operational Criteria Air Pollutant Emissions Emission Source
ROG NOx CO SOx PM10 PM2.5
pounds per day
Project
Area 3.92 0.22 19.22 <0.01 0.11 0.11
Energy 0.07 0.64 0.31 <0.01 0.05 0.05
Mobile 4.94 5.72 44.82 0.07 7.28 1.98
Total 8.93 6.58 64.35 0.08 7.43 2.14
Existing
Area 0.27 <0.01 <0.01 0.00 <0.01 <0.01
Energy <0.01 0.01 0.01 <0.01 <0.01 <0.01
Mobile 0.88 0.93 6.62 0.01 0.76 0.21
Total 1.16 0.94 6.64 0.01 0.76 0.21
Net Change in Emissions
Net Change (Project – Existing) 7.77 5.64 57.71 0.07 6.68 1.93 MBARD Threshold 137 137 550 150 82 N/A
Threshold Exceeded? No No No No No N/A
Notes: CO = carbon monoxide; MBARD = Monterey Bay Air Resources District; N/A = not applicable; NOx = oxides of nitrogen; PM10 = coarse particulate matter; PM2.5 = fine particulate matter; ROG = reactive organic gases; SOx = sulfur oxides.

The values shown are the maximum summer or winter daily emissions results from CalEEMod. The Project scenario includes vehicle-miles traveled reductions for: Increased Density, Increased Diversity, Increased Transit Accessibility (0.15 miles from the Santa Cruz Metro Transit District hub) and Integrate Below Market Rate Housing.

The Existing scenario includes vehicle-miles traveled reductions for: Increased Transit Accessibility.

The City received a comment letter on behalf of the Laborers International Union of North America, Local Union 270 and its members living in the City of Santa Cruz (“LIUNA”),that requests that impacts related to exposure to formaldehyde released by the building materials and furnishings commonly found in residential constructionbuilding materials should be assessed under CEQA. Discussion of impacts on indoor air quality on future occupants of new construction is not specified or required by the State CEQA Guidelines or California’s air district guidelines. California air districts base their thresholds of significance for CEQA purposes on the levels that scientific and factual data demonstrate that the air basin can accommodate without affecting the attainment date for the state and federal ambient air quality standards (AAQS). The AAQS is based on maximum pollutant levels in outdoor air that would not harm the public’s health. Furthermore, building materials are required to reduce exposure to toxic substances through compliance with the U.S. Environmental Protection Agency and the California Air Resources Board regulations, such as 40 CFR Part 770, Formaldehyde Emission Standards for Composite Wood Products. The regulations typically apply to manufacturers, distributors, importers, fabricators, and retailers of the products. All building materials used for the project would be required to comply with the applicable federal and state standards.

In addition, the project will need to comply with the 2019 CALGreen Code, which specifies that composite wood products (such as hardwood plywood and particleboard) meet the requirements for formaldehyde as specified

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in the California Air Resources Board’s Air Toxic Control Measures. The 2019 CALGreen building code also does not allow added formaldehyde-based resins or ultra-low emitting formaldehyde resins, and requires documentation of compliance with the California Air Resources Board’s Air Toxic Control Measures. (See Section 5.504.4.5, Chapter 5, Part 11, 2019 California Green Building Standards Code, July 2019, incorporated herein by this reference.) Furthermore, the comment is speculative in the assertion that composite wood materials would be used in the interior of the building. Indoor building materials will not be known until the building permit stage, and as stated above, these materials will be required to comply with the California Air Resources Board and 2019 CALGreen building code.

The commenter’s conclusions were not based on the assumption that the project would be built in accordance with CARB’s Air Toxic Control Measures and 2019 CALGreen building code. The commenter provides no evidence to substantiate a contrary conclusion that in spite of the project using materials that comply with the standards of the California Air Resources Board’s Air Toxic Control Measures, the project would still expose occupants to toxic substances.

Furthermore, to the degree that LiUNA is arguing that the project will have a significant air quality impact and therefore the exemption doesn’t apply, they have not met their burden. The Project is required to comply with current codes, including CALGreen—which as indicated above requires that all composite wood products used on the interior of a building “shall meet the requirements for formaldehyde as specified in ARB’s Air Toxics Control Measure for Composite Wood (17 CCR 93120 et seq.).” (Cal. Code Regs., tit. 24, § 5.504.4.5.) An agency may cite a project’s compliance with regulatory standards to support the conclusion that the project will not result in significant impacts. (CEQA Guidelines, § 15126.4, subd. (a)(1)(B); City of Maywood v. Los Angeles Unified School Dist. (2009) 208 Cal.App.4th 362, 409–413 [cleanup of high school site performed under supervision of regulatory agency supported conclusion that impact would be insignificant]; Tracy First v. City of Tracy (2009) 177 Cal.App.4th 912, 933–934 [compliance with energy standards in building code]; Oakland Heritage (2011) 195 Cal.App.4th 884, 896 [upholding city’s use of regulatory standard to determine whether impact will be significant].) Moreover, the evidence provided by LiUNA’s “expert” on indoor air quality does not rise to the level of substantial evidence because it is generalized and does not address the specific impacts of this project. (See Save the Plastic Bag Coalition v. City of Manhattan Beach (2011) 52 Cal.4th 155.) To the degree that LiUNA is arguing that the unusual circumstances exception applies, that argument fails as well. The analysis of potential toxins could apply to any new building, and therefore does not demonstrate an unusual circumstance. LiUNA points to no unique features of this project that render the indoor emissions any more severe than any other new building constructed in compliance with current state and local building codes.

Furthermore, even if there were any impact on project residents from indoor air emissions as asserted by LiUNA (which there is not), project effects on future residents are not properly considered significant environmental impacts under CEQA (California Building Industry Assn. v. Bay Area Air Quality Management Dist. (2015) 62 Cal.4th 369, 377.)
Water Quality
The proposed project does not involve any discharges that would violate any water quality standards or waste discharge requirements. The City has developed a Storm Water Management Program (SWMP) in order to fulfill the requirements of the National Pollutant Discharge Elimination System (NPDES) General Permit for

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Discharges of Storm Water from Small Municipal Separate Storm Sewer Systems (MS4) (General Permit) and to reduce the amount of pollutants discharged in urban runoff. In compliance with the regulations, the City’s comprehensive SWMP is designed to reduce the discharge of pollutants and to protect water quality. The City also adopted an ordinance for “Storm Water and Urban Runoff Pollution Control” (Chapter 16.19 of the City’s Municipal Code), as part of its Storm Water Management Plan. The ordinance identifies prohibited discharges and required Best Management Practices (BMPs) for construction and new development. City regulations (Municipal Code section 16.19.140) requires that any construction project, including those undertaken under any permit or approval granted pursuant to Titles 15 (Streets and Sidewalks), 18 (Buildings and Construction), and 24 (Zoning) of the Municipal Code, shall implement BMPs including the City’s mandatory BMPs as detailed in the latest BMP manual published by the City’s Public Works Department. The City’s BMP manual requires the project to include a structural or treatment control BMPs, or a combination of BMPs, to reduce potential pollutant loadings in storm water runoff to the maximum extent practicable. A stormwater control plan (SWCP) has been prepared for the project that details drainage features to collect and treat stormwater runoff. The project proposes to install a biofiltration area and mechanical filtration system and would be designed so that stormwater would collect into this system. Stormwater would be filtered through this system before it is discharged from the site. The SWCP is subject to review and approval by the City’s Engineering Department.

Construction activity on projects that disturb one or more acres of soil must obtain coverage under the State’s General Permit for Discharges of Storm Water Associated with Construction Activity (Construction General Permit, 99-08-DWQ). Construction activity subject to this permit includes clearing, grading, and disturbances to the ground such as stockpiling or excavation. The Construction General Permit requires the development and implementation of a Stormwater Pollution Prevention Plan (SWPPP). The SWPPP is required to list BMPs that the discharger will use to protect stormwater runoff. Proposed grading and development on the project site would disturb more than 1 acre and, thus, the project would be subject to the Construction General Permit and preparation of a SWPPP.

Compliance with regulations contained in the City’s Municipal Code regarding implementation of stormwater BMPs, grading requirements and implementation of erosion control plans (Chapters 16.19 and 18.45 and section 24.14.060), as well as preparation and implementation of a SWPPP during construction, would avoid/minimize potential storm runoff water quality impacts.

E. Utilities and Public Services
The project site is in an urban area and is currently served by public utilities and services for water, wastewater, gas, electricity, and solid waste. The proposed mixed-use project will continue to be served by existing utilities and service providers. Except for gas and electricity, all services and utilities are provided by the City. All existing public services and utilities are adequate to serve the proposed project.

Exceptions to Categorical Exemptions
The City has further considered whether the project is subject to any of the exceptions to the use of a categorical exemption found at CEQA Guidelines Section 15300.2. This section prohibits the use of categorical exemptions under the following circumstances:
(a) for certain classes of projects (not the Class 32 infill exemption) due to location;

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(b) when the cumulative impact of successive projects of the same type in the same place, over time, is significant;
(c) where there is a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances;
(d) where the project may result in damage to scenic resources, including but not limited to, trees, historic buildings, rock outcroppings, or similar resources, within a highway officially designated as a state scenic highway;
(e) where the project is located on a state designated hazardous waste site; and (f) where the project may cause a substantial adverse change in the significance of a historical resource.

A. Location
As noted above, §15300.2(a) does not apply because the Class 32 category of this project is not excluded on the basis of location.

B. Cumulative Impacts
Under CEQA Guidelines §15300.2(b), a categorical exemption shall not be used when the cumulative impact of successive projects of the same type in the same place, over time is significant. Successive projects of the same type in the same place as the proposed project have not been approved or proposed. Therefore, this exception does not apply to the project.

There are four approved mixed-use residential and commercial projects in the downtown area, located approximately one-third mile (1,800 feet) northeast of the project site. These projects would result in construction of 559 residential units with ground-floor commercial uses, but there would be a net reduction in commercial square footage due to demolition of existing commercial buildings. There are also several pending development projects in the downtown area. However, the proposed project is not located adjacent to nor within 500 feet of the downtown area, and does not constitute a project in the same type and same place as the other approved projects. Approved projects in the downtown area would be subject to the citywide regulations as noted above, which regulate impacts related to air quality, noise, traffic, and water quality and have undergone CEQA review. There is no evidence to conclude that significant impacts will occur based on past project approvals or that the proposed project's impacts are cumulatively considerable when evaluating any cumulative impacts associated with construction air quality, noise, transportation or water quality in the area surrounding the proposed project.

C. Significant Impacts Due to Unusual Circumstances
Under CEQA Guidelines §5300.2(c), a categorical exemption shall not be used where there is a reasonable possibility that the activity will have a significant effect on the environment due to "unusual circumstances." The project site possesses no unusual environmental characteristics and would not result in a change in the use of the site.

The project site’s immediate area has similar General Plan and zoning designations as the subject property.

There are no “unusual circumstances” that differentiates the project from the general class of similarly situated projects. The project site is approximately 1.19 acres and almost entirely covered by impervious surface. The

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site is located within the coastal zone, but is within an urban area, surrounded by development, and sensitive resources are not present as explained below. There are no “unusual circumstances” that differentiate the project from the general class of similarly situated properties or projects. For example, other properties in the surrounding area have developed or could develop a similar mixed-used project, utilizing waivers permitted under the provisions of the state and local density bonus laws.

The proposed project would result in a building height of 75 feet, which is higher than other buildings in the immediate vicinity due to waivers required for qualifying projects that include density bonus units. However, the proposed project is similar in height and scale as two approved mixed-use projects in the downtown area that are also designated RVC in the General Plan, and as other proposed affordable housing unit projects in the City. As indicated above, the additional height allowed by an approved waiver pursuant to the density bonus law would not be considered to conflict with zoning standards, and would not therefore, be considered an unusual circumstance. Furthermore, CEQA (Public Resources Code section 21099) states that aesthetic impacts of a residential, mixed-use residential, or employment center project on an infill site within a transit priority area shall not be considered significant impacts on the environment, although design review would still be required pursuant to local City requirements and regulations. The project site is considered an infill site and also is located within a transit priority area. City staff has reviewed the project and made the required findings for issuance of a Design Permit.

Furthermore, there is no substantial evidence that the proposed project would result in a significant impact as explained below. Therefore, there are no unusual circumstances that may lead to a significant effect on the environment.

The project would not substantially increase impervious surfaces on site and includes a SWCP and design drainage features that would manage stormwater runoff. Therefore, the project would not modify the overall drainage patterns on- or offsite. The project is located with an A99 Flood Zone as designated by the Federal Emergency Management Agency (FEMA). This designation indicates that the project area is subject to inundation by a 1-percent-annual-chance flood event, but which will ultimately be protected upon completion of an under-construction Federal flood protection system. A99 Zones are areas where enough progress has been made on the construction of a protection system, such as dikes, dams, and levees, to consider it complete for insurance rating purposes (FEMA 2017), which in this case are improvements to the levee adjacent to San Lorenzo River (City of Santa Cruz 2012b). For these reasons, the project site does not contain unusual hydrologic conditions or circumstances, and the project would result in significant impacts related to drainage or water quality degradation.

A geotechnical investigation conducted for the project addressed concerns involving ground rupture, lateral spreading, seismic settlement, tsunami/seiche, and flooding. The investigation concluded that the project is geotechnically feasible given the existing soil conditions and implementation of construction and design recommendations included in the geotechnical report (Cornerstone Earth Group 2020). A standard condition of approval has been included that requires the geotechnical report be submitted as part of the building permit application, and that the geotechnical recommendations are incorporated into the building design.

As indicated above, the project would not result in impacts to biological resources as none exist on the project site or surrounding area. The property is located within a sensitive archaeological area. A cultural resource evaluation was conducted, which included archival search and a surface reconnaissance. The archival research

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revealed that no previously recorded archaeological resources are located within the proposed project area. No significant cultural materials, prehistoric or historic were noted during surface reconnaissance. The project site does not contain historical resources as explained below in subsection F.

Due to the presence of recorded sites within one-eighth mile of the project site and the general sensitivity of the area, a standard condition of approval has been included that requires that a qualified archaeologist monitor construction activities into native soils for the proposed project. If prehistoric and/or historic deposits or features are discovered during construction, construction will be required to cease and a qualified archaeologist will be required to inspect and prepare recommendations for handling of the artifacts. This is consistent with requirements set forth in the City’s Municipal Code (Section 24.12.430) related to potential discovery of unidentified archaeological resources during construction would be considered an application of uniformly applied development standards, not mitigation. Discovery of unidentified (e.g., buried) cultural resources during any construction would be subject to this requirement as a standard condition of approval.

Thus, the proposed project would not result in significant impacts to archaeological resources.

The project site is not located in a mapped fire hazard area per the City’s General Plan (City of Santa Cruz 2012a). Also, the project site not located in or near a state responsibility area or lands classified as very high fire hazard severity zones by CALFIRE (CALFIRE 2007).

For these reasons, there are no unusual circumstances surrounding the project that would suggest a reasonable possibility of a significant effect on the environment due to such circumstances, and this exception does not apply to the project.

D. Scenic Resources
Under CEQA Guidelines §15300.2(d), a categorical exemption shall not be used for a project which may result in damage to scenic resources, including but not limited to, trees, historic buildings, rock outcroppings, or similar resources, within a highway officially designated as a state scenic highway. There are no designated state scenic highways within the City; therefore, project site is not located within or near a highway officially designated as a state scenic highway. The project would not result in damage to scenic resources within a state scenic highway and this exception does not apply to the project.

E. Hazardous Waste Sites
Under CEQA Guidelines §15300.2(e), a categorical exemption shall not be used for a project located on a site which is included on any list compiled pursuant to §65962.5 of the Government Code (i.e., the Cortese List).

The project site is not included on a list of hazardous waste sites compiled pursuant to Government Code §65962.5. The following Cortese List online data resources were reviewed during the preparation of this document: (1) the list of hazardous waste and substances sites from the Department of Toxic Substances Control’s (DTSC’s) EnviroStor database (DTSC 2021); (2) the list of leaking underground storage tank sites from the State Water Resources Control Board’s (SWRCB’s) GeoTracker database (SWRCB 2021a); (3) the list of sites identified with Waste Constituent Above Hazardous Waste Levels Outside the Waste Management Unit (EPA 2021); and (4) the list of active Cease and Desist Orders and Cleanup and Abatement Orders from the SWRCB (SWRCB 2021b).

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The project site is not located on any of the DTSC lists of hazardous materials sites. According to the SWRCB GeoTracker database, there are nine reported former leaking fuel tank cases within 1,000 feet of the project site. All of which have a cleanup status as completed and closed. There are no former or current leaking fuel tank cases on the project site. A Phase I Environmental Site Assessment (ESA) was also performed for the project site to determine the presence or likely presence of any hazardous substances on the project site. The assessment revealed no evidence of “recognized environmental conditions” (REC) in connection with the property (Greare Group Consulting 2014). The term REC refers to the presence or likely presence of any hazardous substances or petroleum products on a property under conditions that indicate an existing release, a past release or a material threat of release of any hazardous substances or petroleum products .

Therefore, based on the above review, the project site is not included on any list compiled pursuant to Government Code §65962.5 and this exception does not apply to the project.

F. Historical Resources
Under CEQA Guidelines §15300.2(f), a categorical exemption shall not be used for a project which may cause a substantial adverse change in the significance of a historical resource. According to maps developed for the City’s General Plan, the project site is not located within a designated historic district (City of Santa Cruz 2012a).

However, the project site is located in an area mapped as archaeologically sensitive per the City’s General Plan.

Therefore, a Cultural Resource Evaluation was conducted for the proposed project, which found no significant cultural materials, prehistoric or historic on the site; see subsection C above.

A historic evaluation also was prepared, which concluded that that the subject property is not listed on the California Register of Historic Resources, the National Register of Historic Places, or the City of Santa Cruz Historic Building Survey, and does not appear eligible for listing in any of the registers (Archaeological Resource Management 2020b). Therefore, existing structures on the project site are not historical resources under the definition of CEQA.

Based on this information, the project would not result in a substantial adverse change to the significance of a historic resource, and this exception does not apply to the project.

For these reasons, the City is able to document that the project qualifies for the Categorical Exemption found at CEQA Guidelines section 15332, the infill exemption, and that none of the potential exceptions to the use of a categorical exemption apply to this project or the project site.

REFERENCES
Archaeological Resource Management. 2020a. Cultural Resource Evaluation of the Project at 130 Center Street in the City of Santa Cruz. July 20, 2020.

Archaeological Resource Management. 2020b. Proposal for an Historical Evaluation and Cultural Resource Evaluation for the Property at 130 Center Street in the City of Santa Cruz. July 16, 2020.

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California Department of Finance. May 2021. “Table 2: E-5 City/County Population and Housing Estimates, 1/1/2021.” Available online at: https://dof.ca.gov/Forecasting/Demographics/Estimates/E5/documents/E-5_2021_InternetVersion.xlsx CALFIRE (California Department of Forestry and Fire Protection). 2007. Fire Hazard Severity Zones Maps.

Accessed on December 7, 2021 at https://osfm.fire.ca.gov/divisions/wildfire-planningengineering/wildland-hazards-building-codes/fire-hazard-severity-zones-maps/.

City of Santa Cruz. June 2020. Resolution of the City Council of the City of Santa Cruz Adopting the Use of Vehicle Miles Traveled as the New Transportation Measure of Environmental Impacts. June 9, 2020 with Draft SB 743 Implementation Guidelines (May 27, 2020).

City of Santa Cruz. 2012a. General Plan 2030. Adopted June 26, 2012. Available online at https://www.cityofsantacruz.com/government/city-departments/planning-and-communitydevelopment/long-range-policy-planning/general-plan.

City of Santa Cruz. 2012b. City of Santa Cruz General Plan 2030 Final EIR. SCH #2009032007. Certified June 26, 2012. Includes Draft EIR document, dated September 2011. Available online at https://www.cityofsantacruz.com/government/city-departments/planning-and-communitydevelopment/long-range-policy-planning/general-plan.

Cornerstone Earth Group. 2020. Geotechnical Investigation for Center Street Residential Development.

September 11, 2020.

DTSC (California Department of Toxic Substances Control). 2021. Waste and Substances Site List – Site Cleanup (Cortese List). Accessed October 21, 2021 at https://dtsc.ca.gov/dtscs-cortese-list/.

Edward L. Pack Associates, Inc. 2021. Noise Assessment Study for the Planned Mixed-Use Development 130 Center Street, Santa Cruz. February 4, 2021.

EPA (California Environmental Protection Agency). 2021. Sites identified with Waste Constituent Above Hazardous Waste Levels Outside the Waste Management Unit. Accessed on October 21, 2021 at https://calepa.ca.gov/wp-content/uploads/sites/6/2016/10/SiteCleanup-CorteseList-CurrentList.pdf.

FEMA (Federal Emergency Management Agency). 2017. FEMA Flood Map Service Center. Accessed on December 7, 2021 at https://msc.fema.gov/portal/search.

Greare Group Consulting. 2014. Phase 1 Environmental Site Assessment. June 30, 2014.

Hexagon Transportation Consultants, Inc. 2021. 130 Center Street Mixed-Use Development Transportation Impact Analysis. February 9, 2021.

SWRCB (California State Water Resources Control Board). 2021a. SWRCB GeoTracker database. Accessed on October 21, 2021 at https://geotracker.waterboards.ca.gov/.

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SWRCB (California State Water Resources Control Board). 2021b. List of active Cease and Desist Orders and Cleanup and Abatement Orders. Accessed on October 21, 2021 at https://www.waterboards.ca.gov/waterrights/water_issues/programs/enforcement/compliance/.

29.55 Archaeological Resource Management
Robert R. Cartier, Ph.D.
496 North 5th Street
San Jose, CA 95112
Telephone (408) 295-1373
Fax (408) 286-2040
email: [email protected]
Swenson July 16, 2020
Attn: Mr. Daniel Sell
777 N. 1st Street, 5th Floor
San Jose, CA 95112
RE: PROPOSAL FOR AN HISTORIC EVALUATION AND CULTURAL RESOURCE EVALUATION FOR THE PROPERTY AT 130 CENTER STREET IN THE CITY OF

SANTA CRUZ
Dear Ms. Sell;
As per your request our firm is submitting the enclosed historical evaluation of the property at 130 Center Street in the City of Santa Cruz. Based upon the requirements of the City of Santa Cruz, a methodology was designed which included the following services:
- a visual description of the structure including general appearance, condition, and architectural style
- photography of the structure
- documentation of property ownership history
- an evaluation of the structure using the criteria of the City of Santa Cruz, the National Register of Historic Places, and the California Register - State Historic Resources Evaluation forms (DPR) 523 for the structure
Based upon the results of this investigation, it was determined that the property at 130 Center Street is not currently listed on the California Register of Historic Resources (CRHR) or the National Register of Historic Places (NRHP), or the City of Santa Cruz Historic Building Survey, and does not appear eligible for listing in any of these registers. Thus the structured does not appear to be historically significant, and no further recommendations are being made. .

Sincerely,
Robert Cartier, Ph.D.

RC/dj Principal Investigator

29.56 State of California - The Resources Agency Primary # ______________________________ DEPARTMENT OF PARKS AND RECREATION HRI # _______________________________ PRIMARY RECORD Trinomial ______________________________ NRHP Status Code ______________________
Other Listings ________________________________________ Review Code ________ Reviewer __________ Date ________
Page _1_ of 25 Resource Name or # ___130 Center Street___ P1. Other Identifier: ______Chris Bordner Auto Body_________________________________ P2. Location: ____ Not for Publication _x__ Unrestricted *a. County __Santa Cruz__ and (P2b and P2c or P2d. Attach a Location Map as necessary.) *b. USGS 7.5' Quad: Santa Cruz,CA Date: 2012 T ; R ; 1/4 of 1/4 of Sec ; BM c. Address: 130 Center Street City: Santa Cruz Zip: 95060 d. UTM: 10S 5 86 666mE/40 91 565mN
e. Other Locational Data: (e.g., parcel #, directions to resource, elevation, etc., as appropriate) APN: 007 023 26
*P3a. Description: (Describe resource and its major elements. Include design, materials, condition, alterations, size, setting, and boundaries.) The primary structure at 130 Center Street is a single story commercial building in fair condition. Irregular in plan, the structure consists of a showroom area featuring broad, shallowly sloped cantilevered awnings supported by angled wooden support columns. This showroom area is surfaced with stucco, and features full length ribbon windows. The remainder of the structure consists of garage, utility, and storage areas, constructed of a combination of cinder blocks and wooden framed sections. The roof is flat, with little to no parapet. Fenestration throughout the structure is aluminum framed, with fixed panes along the front showroom and a combination of fixed and sliding windows elsewhere. The rear portion of the structure extends at a diagonal from the front showroom, and includes a series of garage bays. A separate wing addition extends from the showroom and includes a low row of informal shed-roofed storage areas.
*P3b. Resource Attributes:HP06 (commercial 1-3 stories) *P4. Resources Present: x_Building __Structure __Object __District __Element of District __Site __Other P5a. Photo or drawing (Photo required for buildings, structures, objects.) P5b. Description of Photo: (View, date, accession #) View of the front façade of 130 Center Street
*P6. Date Constructed/Age and Sources
Historic x Prehistoric Both
Constructed 1963 based on City of Santa Cruz
Building Permit
*P7. Owner and Address:

Green Valley Corporation
777 N. 1st Street, 5th Floor
San Jose, CA 95112
*P8. Recorded by:

Robert Cartier
Archaeological Resource Management
496 North 5th Street
San Jose, CA 95112
*P9. Date Recorded: 7/16/2020
*P10. Survey Type: Intensive
*P11. Report Citation: (Cite Survey Report and other sources, or enter "none.") None
DPR 523A (1/95) *Required Information

29.57 * Attachments: __None x_Location Map __Sketch Map x_Continuation Sheet x_Building, Structure, and Object Record __Archaeological Record __District Record __Linear Feature Record __Milling Station Record __Rock Art Record __Artifact Record __Photographic Record __Other (List):

State of California - The Resources Agency Primary # ________________________________ DEPARTMENT OF PARKS AND RECREATION HRI # ________________________________

BUILDING, STRUCTURE, AND OBJECT RECORD
Page _2_ of 25 *NRHP Status Code ___130 Center Street__ *Resource Name or # (Assigned by recorder) _______________________________ B1. Historic Name: _____130 Center Street___________________________________ B2. Common Name: _____Chris Bordner Auto Body_____________________________________________ B3. Original Use: ____Automotive Sales/Repair____ B4. Present Use: ____Automotive repair________ *B5. Architectural Style: _____modern commercial_____________ *B6. Construction History: (Construction date, alterations, and date of alterations) Based upon visual evaluation and available documentation, the primary structure at 130 Center Street was constructed in 1963 (BP#A9238) as a garage and showroom. Since its original construction multiple additions have been made to the building.
*B7. Moved? _x_ No ___ Yes ___ Unknown Date: _______ Original Location: __________________ *B8. Related Features:

Also present on the property is the Hertz Rental Car structure and a small detached shed. The structure at 132 Center Street (currently Hertz Rentals) was constructed in 1981 (BP#B0511) by Bomar Construction, as a detached showroom.

It is of wooden frame construction and features a massive cantilevered awning around the flat roof.

B9a. Architect: ____unknown__________ b. Builder: ____Cecil Miller______________ *B10. Significance: Theme ____automotive/commercial_______ Area _____Santa Cruz, CA______ Period of Significance ___Post-War___ Property Type __private commercial__ Applicable Criteria ___N/A_____ The land on which the subject structure now stands is tied to the early history of the logging industry in Santa Cruz.

Based upon Sanborn Fire Insurance Maps, by 1886 the subject property made up a portion of the Grover & Company Lumber yard. By 1905 the land was part of the Loma Prieta Lumber Company yard. However, by 1928, the land was vacant. It remained vacant in the 1950 Sanborn map. By 1960 the subject property made up a portion of a 4.977 acre property owned by Keith and Elinor Shaffer and Tanner G. Wilson. Based upon visual evaluation and available documentation, the structure at 130 Center Street was constructed in 1963. Cecil Miller was the construction contractor (BP#A9238). The structure has been used for automotive sales and repairs since its construction, and was listed as a garage and showroom on the original building permit. By 1964 the property owners included Keith and Elinor Shafer, as well as Clarence and Amy Nelson. On July 14, 1964 the property was sold to David S. Arata Jr. and his wife Alma Arata (Book 1631 of Official Records, Page 653).

See Continuation Sheet, Page 4
B11. Additional Resource Attributes: (List attributes and codes) ___________N/A_______________________ *B12. References:

See Continuation Sheet, Page 8
B13. Remarks:
*B14. Evaluator: ___Robert R. Cartier____________
*Date of Evaluation: _______7/16/2020________
(This space reserved for official comments.)
DPR 523A (1/95) *Required Information

29.58 State of California - The Resources Agency Primary # ________________________________ DEPARTMENT OF PARKS AND RECREATION HRI # ________________________________ LOCATION MAP Trinomial ________________________________ Page _3_ of 25 Resource Name or # (Assigned by recorder) _______130 Center Street ____________________ *Map Name: ____Santa Cruz, CA____ *Scale: ___7.5 Minute__ *Date of Map: ___2018__ DPR 523A (1/95) *Required Information

29.59 State of California - The Resources Agency Primary # ______________________________ DEPARTMENT OF PARKS AND RECREATION HRI # _______________________________ CONTINUATION SHEET Trinomial ______________________________ Page _4_ of 25 *Resource Name or # (Assigned by recorder) _____130 Center Street_________ *Recorded by Archaeological Resource Management Date 7/16/2020 Continuation x Update Continued from B10:

The Arata’s retained ownership of the property until March 5, 1980, when they placed it in a family trust, with themselves as trustees (Book 3171 of Official Records, Page 395). In 1981 the structure at 132 Center Street was constructed as a detached showroom. At this time the business was known as Porsche-Audi of Santa Cruz. By 2000, their son David J. Arata was trustee, and on November 21, 2000, he took the property out of trust (Assessor’s Document #2000-0057104). On June 30, 2004, he placed the property into trust once again, with himself and his wife Carrie Arata as trustees (Assessor’s Document# 2004-0047825). On February 27, 2013, the property was sold to Green Valley Corporation, who are the current owners (Assessor’s Document #2013-0010334).

City of Santa Cruz Historic Preservation Ordinance
According to the City of Santa Cruz Historic Preservation Ordinance (Ordinance #2003-14). A property shall be determined eligible for inclusion in the City of Santa Cruz Historic Building Survey based upon the following Criteria:

The property is either a building, site, or object that is:

1. Recognized as a significant example of the cultural, natural, archaeological, or built heritage of the city, state, or nation; and/or

2. Associated with a significant local, state, or national event; and/or

3. Associated with a person or persons who significantly contributed to the development of the city, state, or nation; and/or

4. Associated with an architect, designer, or builder whose work has influenced the development of the city, state, or nation; and/or

5. Recognized as possessing special aesthetic merit or value as a building with quality of architecture and that retains sufficient features showing its architectural significance; and/or

6. Recognized as possessing distinctive stylistic characteristics or workmanship significant for the study of a period, method of construction, or use of native materials; and/or

7. Retains sufficient integrity to accurately convey its significance.

Or a district which is:

8. Recognized as a geographically definable area possessing a significant concentration of buildings that are well designed and other structures, sites, and objects which are united by past events or by a plan or physical development; or is

9. Recognized as an established and geographically definable neighborhood united by culture, architectural styles or physical development.

The structure at 130 Center Street is not currently listed in the City of Santa Cruz Historic Building Survey. In addition, it does not appear eligible for listing in this register. The structure is not recognized as a significant example of the built heritage of the city, and thus does not appear eligible for listing under Criterion 1. It is not associated with significant historic events, and thus does not appear eligible for listing under Criterion 2. It is not associated with historically significant persons, thus it does not appear eligible for listing under Criterion 3. It is not known to be the work of an architect or builder of note, and thus does not appear eligible for listing under Criterion 4. It does not possess special aesthetic or architectural merit, and thus does not appear eligible under Criterion 5. Although it is an example of modern commercial architecture, it is not a notable example of this style and does not appear eligible for inclusion under Criterion 6. In addition, the structure has suffered multiple modifications, is somewhat lacking in integrity. Thus it does not appear to be eligible for inclusion under Criterion 7. The structure is not a part of an historic district, and thus Criteria 8 and 9 do not apply.

DPR 523A (1/95) *Required Information

29.60 State of California - The Resources Agency Primary # ______________________________ DEPARTMENT OF PARKS AND RECREATION HRI # _______________________________ CONTINUATION SHEET Trinomial ______________________________

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Santa Cruz City CouncilJanuary 25, 2022

Santa Cruz City Council
January 25, 2022