Santa Cruz City Council
June 14, 2022

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

CITY COUNCIL AGENDA
Regular Meeting – June 14, 2022
Updated June 13, 2022 – Change in meeting location
9:30 A.M. CLOSED SESSION, ZOOM
11:30 A.M. CONSENT, GENERAL BUSINESS AND PUBLIC HEARINGS, ZOOM 6:00 P.M. ORAL COMMUNICATIONS AND GENERAL BUSINESS, ZOOM IMPORTANT NOTICE - COVID-19 ANNOUNCEMENT: Due to the rise of local COVID cases, in an abundance of caution, this meeting will be held via teleconference ONLY.

In order to minimize exposure to COVID-19, 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” or select “Raise Hand,” in the webinar controls on your device 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 3 minutes.

Correspondence to be included in the agenda packet must be received by 5:00 pm on Monday, June 13th.

June 14, 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, June 12th 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 CalRelay 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
9:30 AM
Closed Session

1. Conference with Labor Negotiators (Government Code §54957.6) SEIU Temporary Employees
SEIU Service Employees
Mid Managers, OE3
Supervisors, OE3
Fire Management
Fire, IAFF
Police Management
Police Officers Association
Executives
City Negotiator - Lisa Murphy

2. Public Employee Performance Evaluation (Government Code §54957) City Attorney
June 14, 2022 City Council 3
Closed Session (continued)

3. Conference with Legal Counsel - Existing Litigation (Government Code §54956.9(d)(1))
Regents of the University of California, et al. v. City of Santa Cruz (Santa Cruz County Superior Court Case No. 20CV02152)

4. Conference with Legal Counsel - Anticipated Litigation (Government Code §54956.9(d)(4))
Initiation of litigation (one potential case)
June 14, 2022 City Council 4
11:30 AM
Call to Order
Roll Call
Presentation

5. Mayoral Proclamation Declaring June 15, 2022 as World Elder Abuse Awareness Day
Presiding Officer's Announcements
Statements of Disqualification
Additions and Deletions
City Attorney Report on Closed Session
City Manager Report

6. The City Manager will report and provide updates on the City's business and events of interest.

Council Meeting Calendar

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

June 14, 2022 City Council 5
Consent Agenda

8. Resolution Authorizing the City to Continue Teleconferenced Public Meetings Pursuant to Assembly Bill 361 (CA)
Resolution authorizing legislative bodies of the City of Santa Cruz to continue the use of teleconferenced meetings pursuant to Assembly Bill 361.

9. Minutes of the May 24, 2022 City Council Meeting (CC) Motion to approve as submitted.

10. Minutes of the May 25, 2022 City Council Special Meeting (CC) Motion to approve as submitted.

11. Santa Cruz County Latino Affairs Commission Nomination (CC) Motion to nominate Pablo Velasquez as a Santa Cruz County Latino Affairs Commissioner.

12. Library Financing Authority Joint Powers Agreement (CM) Motion to approve the Fourth Amendment to the Joint Exercise of Powers Agreement Establishing the Santa Cruz County Library Financing Authority, and authorize the City Manager to sign the amendment, in a form to be approved by the City Attorney.

13. Contract for Operation of the Safe Parking Tier 3 Program (CM) Motion to authorize and direct the City Manager to execute a contract, in a form approved by the City Attorney, with the Association of Faith Communities for Safe Parking Tier 3 operation.

14. Award Contract for Graffiti Abatement Services (ED) Motion to accept the bid from Graffiti Protective Coatings, Inc. for graffiti abatement services in the amount of $125,000 and authorize the City Manager to execute an agreement, in a form approved by the City Attorney, with Graffiti Protective Coatings, Inc.

June 14, 2022 City Council 6
Consent Agenda (continued)

15. Equitable Community Revitalization Grant Program – Authorization to Apply for and Accept Grant Awards for the Pacific Station South, Jessie Street Marsh, and Lower Main Meadow, Pogonip Open Space Projects (ED)
Resolution authorizing and directing staff to apply for and accept grant funds for three separate applications to the California Department of Toxic Substances Control (DTSC) for the Equitable Community Revitalization Grant (ECRG) Program to assist with soils investigation and/or hazardous materials remediation for each of the Pacific Station South, Jessie Street Marsh, and the Lower Main Meadow, Pogonip Open Space project sites. (Attachments 1-3), and authorizing the City Manager to execute any agreements or documents necessary for acceptance and implementation of the grant(s).

16. Contractor Living Wage Rate Annual Prescription for 2022 (FN) Resolution upwardly indexing the prescribed minimum living wage rate for contract workers where the contractor employer provides minimum vacation leave, sick leave and health insurance benefits for its employees, and an alternate higher minimum living wage to be paid where the contractor employer does not provide each of those minimum benefits for its employees, along with other
conditions/definitions related to value of the contract, trainee status, etc. by 5.20%, the amount which corresponds to San FranciscoOakland-Hayward Area Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers, for the period ending October 31, 2021, to become effective July 1, 2022; and rescinding Resolution No. NS29,772.

17. General Obligation Refunding Bonds – Tax Rate Authorization (FN) Resolution setting the tax rate for FY 2023 with respect to the City’s General Obligation Refunding Bonds.

June 14, 2022 City Council 7
Consent Agenda (continued)

18. FY 2023 Funding for Senate Bill 1 Road Maintenance and Rehabilitation Account (RMRA) (PW)
Motion to:
1) Adopt a resolution approving the FY 2023 allocation of SB 1 Road Maintenance and Rehabilitation Account funds and authorizing the City Manager to submit the project list to the California Transportation Commission; and
2) Adopt a resolution transferring and appropriating funds in the amount of $566,449 from the Gas Tax Fund (Fund 221) to reflect anticipated RMRA revenues.

19. Citywide Vegetation Management – Change Order (PW)
Motion to approve a change order for Citywide Vegetation Management with Lewis Tree Service (Santa Cruz, CA) in the amount of $24,000.

20. Measure D Expenditure Plan: FY 2023-2027 (PW)
Motion to approve the proposed Measure D Five-Year Expenditure Plan for FY 2023-2027.

June 14, 2022 City Council 8
Consent Agenda (continued)

21. Murray Street Bridge Seismic Retrofit and Barrier Rail Replacement (c409321) – Approval of Plans and Specifications and Authorization to Advertise and Award; Approval of Request for Proposals for Construction Management Services and Authorization to Advertise and Award Contract (PW)
Motion to:
1) Approve the plans and specifications for the Murray Street Seismic Retrofit and Barrier Rail Replacement Project (c409321) 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 project budget; and 2) Approve the Request for Proposals for Construction Management Services and authorize staff to advertise for proposals 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 project budget.

22. Senate Bill 743 Implementation - Analysis of Transportation Impacts (PW)
Motion to adopt the updates to the City of Santa Cruz SB 743 Implementation Guidelines to reflect changes supporting a range of residential development types.

23. West Cliff Stairs Rehabilitation (m401402) - Approve Change Order (PW)
Motion to approve a change order with Tom Ralston Concrete (Santa Cruz, CA), to improve ocean access at Steamer Lane. 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 project budget.

End Consent Agenda
June 14, 2022 City Council 9
Consent Public Hearing

24. Cooperative Retail Management Business Real Property Improvement District Assessments for FY 2023 (ED)
Resolution confirming the Cooperative Retail Management Business Real Property Improvement District Annual Plan FY 2023 and levying Cooperative Retail Management Business Real Property Improvement District Assessments for FY 2023.

25. Downtown Association: Parking and Business Improvement Area Assessments for FY 2023 (ED)
Resolution confirming the Parking and Business Improvement Area FY 2023 Plan prepared by the Downtown Association and levying the Parking and Business Improvement Area Assessments for FY 2023.

General Business

26. Parks and Recreation Commission Appointment (CC)
Appoint one member to the Parks and Recreation Commission, with a term ending January 31, 2023.

June 14, 2022 City Council 10
General Business (continued)

27. Fiscal Year 2023 Proposed Budget Adoption (FN)
Motion to:
1) Adopt a resolution adopting the Fiscal Year (FY) 2023 Budget including the Capital Investment Program (CIP), effective July 1, 2022; authorizing the City Manager to allocate within the applicable Funds the FY 2023 Budget Schedule of Budget Changes to the appropriate accounting classifications and to approve related and applicable transfer in/out between funds; and authorizing the Finance Director to create additional appropriations to provide for commitments carried over from the prior fiscal year, including contract and purchase order encumbrances and unexpended project balances, so long as there is a sufficient fund balance to finance these commitments; and 2) Adopt a resolution amending the Classification and Compensation Plans for the new FY 2023 Budget Personnel Complement by implementing the approved FY 2023 Budget/Position changes in several departments; and
3) Approve and appropriate funds for the FY 2023 Priority 1 Capital Investment Program projects as funding becomes available; and 4) Accept the Water Commission’s recommendations regarding the Water Department’s FY 2023 Operating and Capital Investment Program (CIP).

28. Emergency Ordinance Amending Chapter 16.02 (Water Conservation) of the Santa Cruz Municipal Code (WT)
Motion to adopt an emergency ordinance prohibiting and regulating certain uses of water from the City water supply system not essential to the public health and safety and for water conservation purposes.

June 14, 2022 City Council 11
General Business (continued)
Please note:
 The Public Comment period for the below item will be for 29.1 and 29.2.  Group requests for extra speaking time will be limited to a total of four groups, with an allotment of 2 minutes each. Requests for extra speaking time must be emailed to the City Clerk and Mayor Brunner by 5:00 p.m. on Sunday, June 12th. Approval will be on a first come, first serve basis, and will be confirmed via email.
[email protected] [email protected]
 Public comment will be limited to no more than a total of 30 minutes. Each speaker will have 1 minute.

29. Housing Element

29.1. Approval of a Contract with Kimley-Horn and Associates for Consultant Services for the 6th Cycle Housing Element Update (PL)
Direct the City Manager to execute the contract, in a form approved by the City Attorney, with Kimley-Horn and Associates in the amount of $260,769 to procure consultant services to complete the 6th Cycle Housing Element Update.

29.2. Resolution Providing Guidance to the City’s 6th Cycle Housing Element (CN)
Resolution providing guidance to the City 6th Cycle Housing Element Update process.

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

June 14, 2022 City Council 12
City Council
6:00 PM
Call to Order
Roll Call
Oral Communications Announcement – Community members may address the Council for three 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.

Oral Communications
General Business
Please note – Public Comment:
 Group requests for extra speaking time will be limited to a total of four groups, with an allotment of 2 minutes each. Requests for extra speaking time must be emailed to the City Clerk and Mayor Brunner by 5:00 p.m. on Sunday, June 12th. Approval will be on a first come, first serve basis, and will be confirmed via email.
[email protected] [email protected]
 Public comment will be limited to no more than a total of 30 minutes. Each speaker will have 1 minute.

June 14, 2022 City Council 13
General Business (continued)

30. Downtown Plan Expansion, Preferred Development Scenario for Study under CEQA (PL)
Motion to direct staff to initiate work on an Environmental Impact Report (EIR) relating to the area identified for expansion of the boundary of the Downtown Plan, and provide that the preferred development scenario include the following: a minimum of 1,800 housing units; maximum heights of 225 feet for one taller building element, 185 feet for three taller elements, and 145 feet of one taller element, with each height being inclusive of anticipated height increases associated with a 50% density bonus and with the taller building elements comprising only a portion of shorter podium building forms; an option for auto circulation including the permanent closure of Spruce Street east of Pacific Avenue; the creation of new civic space in the closed Spruce Street right of way; enhanced pedestrian connections between the Downtown and the beach; and options for the location of a permanent arena facility for the Santa Cruz Warriors, with a preferred location being on the south side of Spruce Street between Pacific Avenue and Front Street.

Adjournment
June 14, 2022 City Council 14

INFORMATION ITEMS PREVIOUSLY DISTRIBUTED TO CITY COUNCILMEMBERS Addendum to City Council Agenda - June 14, 2022

31. Portfolio Management Report – Pooled Cash and Investments as of April 30, 2022 - 5/12/22 (FNFYI 354)

MAYOR'S PROCLAMATIONS
Addendum to City Council Agenda - June 14, 2022

32. Proclaiming Monday, May 23, 2022 as “Santa Cruz Surfing Statue Day” and encouraging all citizens to join in celebrating the original members of the Santa Cruz Surfing Club for their vision and contributions to our community, while never forgetting this coming Memorial Day weekend those “49 frogs on the wall” in Washington, DC, who sacrificed for all Americans—including past, present, and future surfers.

33. Proclaiming the month of May 2022 as “Asian American, Native Hawaiian, and Pacific Islander Heritage Month” and encouraging all citizens to join in honoring AANHPIs and their multitude of contributions that have enriched our City and country.

34. Proclaiming the month of June 2022 as “Men’s Health Month” and the week leading up to an including Father’s Day, June 13–19, 2022, as “Men’s Health Week” and encouraging all citizens to pursue preventative health practices and early detection efforts throughout the year.

35. Proclaiming the month of June 2022 as “LGBTQ+ Pride Month” and urging all residents to recognize the contributions made by members of the LGBTQ+ community and to actively promote the principles of equality, liberty, and justice.

June 14, 2022 City Council 15
MAYOR'S PROCLAMATIONS (continued)
Addendum to City Council Agenda - June 14, 2022 (continued)

36. Proclaiming Sunday, June 5, 2022 as “Assemblymember Mark Stone Day” and encouraging all citizens to join in honoring him and thanking him for his numerous contributions on behalf of the LGBTQ+ community.

37. Proclaiming Friday, June 24, 2022 as “Santa Cruz Rotary Club President Jeanette Pagliaro Day” and encouraging all citizens to celebrate her service to the community of Santa Cruz, California, and its tradition of doing so with fun and fellowship.

Advisory Body Appointments
The following positions are vacant. Council will make the appointments at a future meeting.

Transportation and Public Works Commission One opening
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.

June 14, 2022 City Council 16
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. 1 City Manager’s Report
June 14, 2022

6.1 2
Murray Street Bridge
• Murray Street Bridge Seismic Retrofit & Barrier
Rail Project further delayed
• The revised timeline due to permitting & rightof-way issues • Ground-breaking not before the spring of 2023
More info: cityofsantacruz.com/MurrayStreetBridge

6.2 3
Measure E
• Anticipated November
2022 elections
• Mayor
• District 4
• District 6

6.3 4
Measure F • 25,000 more votes to
be counted Countywide
• Too close to call
• Decreased support
compared to November
2021likely from
inflation

6.4 5
Homelessness Response

6.5 6
Benchlands Closure • City Overlook shelter fully
operational
• County demobilizing Armory
and Oceana Hotel
• Attack on Parks Yard
requires increased security
• Closure dependencies • Staffing • Site control & Safety • Adequate amount of shelter

6.6 7
Safe
Parking
Tier 3
• Contract on with AFC
consent agenda today
• 24/7 program with wraparound supportive services
• Accommodate
approximately 22 vehicles
at a time
• Armory/Overlook Location

6.7 8
Coral Street Master Planning • Purchase of 125 Coral Street completed in May
• Bids due for Design Charrette
RFP on 6/22
• Process to inform
development of a navigation
center and supportive housing

6.8 Meeting Type
Holiday
Jewish Holiday
Regular Meeting
Special Meeting
Study Session (will be added as scheduled)
Budget Hearing
DATE Location Meeting Type
Council Chambers/Zoom Closed Session ‐ Closed to the Public Council Chambers/Zoom Council Regular Meeting ‐ Open to the Public July 4
July 28 Special Meeting ‐ Open to the Public
Council Chambers/Zoom Closed Session ‐ Closed to the Public Council Chambers/Zoom Council Regular Meeting ‐ Open to the Public Council Chambers/Zoom Closed Session ‐ Closed to the Public Council Chambers/Zoom Council Regular Meeting ‐ Open to the Public September 5
Council Chambers/Zoom Closed Session ‐ Closed to the Public Council Chambers/Zoom Council Regular Meeting ‐ Open to the Public September 25/26
Council Chambers/Zoom Closed Session ‐ Closed to the Public Council Chambers/Zoom Council Regular Meeting ‐ Open to the Public October 4/5
Council Chambers/Zoom Closed Session ‐ Closed to the Public Council Chambers/Zoom Council Regular Meeting ‐ Open to the Public Council Chambers/Zoom Closed Session ‐ Closed to the Public Council Chambers/Zoom Council Regular Meeting ‐ Open to the Public Council Chambers/Zoom Closed Session ‐ Closed to the Public Council Chambers/Zoom Council Regular Meeting ‐ Open to the Public November 11
Council Chambers/Zoom Closed Session ‐ Closed to the Public Council Chambers/Zoom Council Regular Meeting ‐ Open to the Public November 24
November 25
December 18/19
Council Chambers/Zoom Closed Session ‐ Closed to the Public Council Chambers/Zoom Council Regular Meeting ‐ Open to the Public December 25
City Council Meeting Calendar for 2022
November 22
December 13
City Hall Closure ‐ Thanksgiving Day
City Hall Closure ‐ Day After Thanksgiving Day
June 28
September 13
September 27
Please note: Meeting times are not final and are likely to change City Hall Closure ‐ Independence Day
City Hall Closure ‐ Labor Day
August 23
July 12 and 26 Meetings Cancelled ‐ CITY COUNCIL DARK
August 9
December 27 Meeting Cancelled ‐ CITY COUNCIL DARK
City Hall Closure ‐ Christmas Day
Hanukkah (City observed ‐  sundown to sundown)
Yom Kippur (City observed ‐  sundown to sundown)
Rosh Hashanah (City observed ‐  sundown to sundown)
November 8
October 11
October 25
City Hall Closure ‐ Veteran's Day (observed)

7.1 City Council

AGENDA REPORT
DATE: 06/02/2022
AGENDA OF: 06/14/2022
DEPARTMENT: City Attorney
SUBJECT: Resolution Authorizing the City to Continue Teleconferenced Public Meetings Pursuant to Assembly Bill 361 (CA)
RECOMMENDATION: Resolution authorizing legislative bodies of the City of Santa Cruz to continue the use of teleconferenced meetings pursuant to Assembly Bill 361.

BACKGROUND: On March 4, 2020, Governor Newsom issued a proclamation of State of Emergency in response to the developing COVID-19 pandemic. Due to the continued spread of the virus, the Governor issued Executive Order N-29-20 on March 17, 2020, which included a provision authorizing suspensions to the Ralph M. Brown Act’s (“Brown Act”) teleconferencing rules in order to facilitate virtual meetings while public health orders were in place.

On June 11, 2021, the Governor issued Executive Order N-08-21, which provided that the Brown Act teleconferencing suspensions would expire after September 30, 2021. On September 16, 2021, the Governor signed Assembly Bill 361 (“AB 361”), an urgency measure taking effect immediately, which amended the Brown Act to allow local legislative bodies to continue using teleconferencing and virtual meeting technology provided certain conditions are met.

DISCUSSION: AB 361 allows for teleconferenced meetings during a declared State of Emergency, as defined under the California Emergency Services Act, if one of the following circumstances apply: (1) State or local officials have imposed or recommended measures to promote social distancing; (2) The legislative body is meeting to determine whether, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees; or (3) The legislative body has determined that, as a result of the emergency, meeting in person presents imminent risks to the health or safety of attendees.1 The Governor’s March 4, 2020 proclamation of State of Emergency is still in effect. Measures continue to exist that impose and recommend measures to promote social distancing. The California Department of Public Health (“CDPH”) requires that all individuals wear masks indoors in specific, high-risk settings.2 Further, the CDPH and the Santa Cruz County Health 1 Cal. Gov’t Code § 54953(e)(1)(A)-(C)
2 See CDPH, Guidance for the Use of Face Coverings (Updated April 20, 2022), https://www.cdph.ca.gov/Programs/CID/DCDC/Pages/COVID-19/guidance-for-face-coverings.aspx.

8.1 Officer strongly recommend that all individuals continue to wear masks in indoor public settings.3
The highly transmissible omicron variant recently caused significant increases in positive cases and hospitalizations locally and throughout the State, demonstrating the unpredictable the nature of the pandemic and that transmission rates have the potential to rise quickly. Additionally, other variants of COVID-19 exist, and it is unknown at this time whether other variants may result in a new surge in COVID-19 cases. As such, holding meetings in person would present imminent risks to the health or safety of attendees due to the continued spread of COVID-19.

To continue teleconferenced meetings under AB 361, the City Council will need to declare every thirty (30) days that it has reconsidered the circumstances of the State of Emergency and either (1) the State of Emergency continues to directly impact the ability of the members to meet safely in person; or (2) State or local health officials continue to impose or recommend measures to promote social distancing.4
This declaration is needed for any use of teleconferenced meetings pursuant to AB 361, including for two City meeting models: (1) A City Council hybrid model that uses the City Council Chambers as an in person venue along with teleconference attendance; and (2) Continued use of teleconferencing for City Council and Brown Act City boards, commissions and committees.

At its regular meeting of October 12, 2021, the City Council adopted Resolution No. NS-29,877, authorizing legislative bodies of the City of Santa Cruz to continue using teleconferenced meetings pursuant to AB 361. At its regular meetings of November 9, 2021, November 23, December 14, 2021, January 11, 2022, February 8, 2022, March 8, 2022, March 22, 2022, April 12, 2022, May 10, 2022, and May 24, 2022 the City Council adopted Resolution Nos. NS29,886, NS-29,894, NS-29,900, NS-29,915, NS-29,923, NS-29,933, NS-29,942, NS-29,954, NS-29,975, and NS-29,987, further authorizing legislative bodies of the City of Santa Cruz to continue using teleconferenced meetings pursuant to AB 361.

This Resolution would re-authorize the legislative bodies of the City of Santa Cruz to continue to use teleconferenced meetings for an additional thirty (30) days from the date of its adoption.

FISCAL IMPACT: None.

Prepared By:

Stephanie Duck
Deputy City Attorney
Submitted By:

Tony Condotti
City Attorney
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX
3 See Press Release, Twelve Bay Area Health Officers to Life Most Indoor Mask Mandates on February 16 (Feb. 9, 2022), https://www.santacruzhealth.org/Portals/7/pdfs/Coronavirus/02.09.22%20ABAHO%20Masking_FINAL.pdf.

See also, BAY AREA HEALTH OFFICERS URGE PUBLIC TO TAKE PRECAUTIONS AS COVID LEVELS RISE (May 13, 2022),
https://www.santacruzhealth.org/Portals/7/pdfs/Coronavirus/ABAHOMaskRecommendationENG.05132022.pdf. 4 Cal. Gov’t Code § 54953(e)(3).

8.2 RESOLUTION NO. NS-XX,XXX

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

THE CONTINUED USE OF TELECONFERENCED MEETINGS PURSUANT TO ASSEMBLY BILL 361
WHEREAS, on March 4, 2020, Governor Newsom declared a State of Emergency, as defined under the California Emergency Services Act, due to the COVID-19 pandemic; and WHEREAS, on March 17, 2020, due to the threat of COVID-19, Governor Newsom issued Executive Order N-29-20, which suspended certain requirements of Government Code section 54950 et seq., the Ralph M. Brown Act (“Brown Act”), in order to allow local legislative bodies to conduct meetings telephonically or electronically without a physical meeting place; and
WHEREAS, on June 11, 2021, Governor Newsom issued Executive Order N-08-21, which stated that the provision suspending requirements of the Brown Act in Executive Order N-29-20 would remain in effect through September 30, 2021, at which point the suspensions would expire; and
WHEREAS, on September 16, 2021, Governor Newsom signed Assembly Bill 361 into law, an urgency measure effective upon adoption, amending the Brown Act to allow legislative bodies to continue to meet remotely during a proclaimed State of Emergency, and either state or local officials have imposed or recommended measures to promote social distancing, or the legislative body determines that meeting in person would present imminent risks to the health or safety of attendees;
WHEREAS, on October 12, 2021, the City Council adopted Resolution No. NS-29, 877, making its initial finding that the requisite conditions exist for the legislative bodies of the City of Santa Cruz to conduct remote teleconference meetings; and WHEREAS, on November 9, 2021, November 23, 2021, December 14, 2021, January 11, 2022, February 8, 2022, March 8, 2022, March 22, 2022, April 12, 2022, May 10, 2022, and May 24, 2022, the City Council adopted Resolution Nos. NS-29,886, NS-29,894, NS29,900, NS-29,915, NS-29,923, NS-29,933, NS-29,942, NS-29,954, NS-29,975, and NS29,987, each making a subsequent finding that the requisite conditions exist for the legislative bodies of the City of Santa Cruz to conduct remote teleconference meetings; and WHEREAS, as a condition of authorizing the continued use of teleconferenced meetings, the City Council must, every 30 days, reconsider the circumstances of the State of Emergency that exists in the City and the City Council has done so; and WHEREAS, the State of Emergency proclaimed by the Governor on March 4, 2020, remains in effect; and

8.3 2
WHEREAS, the California Department of Public Health and the Santa Cruz County Health Officer require that all individuals wear face coverings indoors in specified high-risk settings, and continue to strongly recommend that all individuals wear face coverings in indoor public settings; and
WHEREAS, the highly contagious omicron variant recently caused a significant increase in positive cases and hospitalizations locally and throughout the State of California, demonstrating the unpredictable nature of the pandemic, and that transmission rates have the potential to rise quickly; and
WHEREAS, other variants of COVID-19 exist, including an Omicron subvariant, BA.2, and it is unknown at this time whether this or other variants may result in a new surge in COVID-19 cases; and
WHEREAS, due to the continued impact of COVID-19, the City continues to be concerned about the health and safety of attendees at public meetings should they be held in person and in a shared indoor public meeting space, as such, the City Council desires to take the actions necessary to comply with AB 361 and to continue to hold its meetings remotely.

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

A. The City Council hereby acknowledges that the Governor’s State of Emergency proclamation issued on March 4, 2020 remains in effect; and B. The City Council finds that due to the emergence of the omicron variant and the continued threat of COVID-19, holding in person meetings for the City Council, City Commissions, and City Committees continues to present imminent risks to the health or safety of attendees.

C. The legislative bodies of the City of Santa Cruz are hereby authorized and directed to take all actions necessary to carry out the intent and purpose of this Resolution, including continuing to conduct open and public meetings in accordance with Government Code section 54953(e) and other applicable provisions of the Brown Act.

D. This Resolution shall take effect immediately upon its adoption and shall be effective until the earlier of (i) thirty days from the adoption of this Resolution, or (ii) such time the City Council adopts a subsequent resolution in accordance with Government Code section 54953(e)(3) to extend the time during which the legislative bodies of the City of Santa Cruz may continue teleconferencing without compliance with the Brown Act’s prior rules regarding teleconferencing.

8.4 3
PASSED AND ADOPTED this 14th day of June, 2022 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

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

MINUTES OF A CITY COUNCIL MEETING
May 24, 2022
10:30 AM
Mayor Brunner opened the City Council Closed Session at 10:32 a.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 (arrived at 10:34 a.m. via Zoom), Cummings (via Zoom), Brown (via Zoom), Meyers (via Zoom); Mayor Brunner (via Zoom).

Absent: Vice Mayor Watkins.

Staff: City Manager M. Huffaker (via Zoom), Assistant City Manager L. Schmidt (via Zoom), City Attorney T. Condotti (via Zoom), Director of Human Resources L. Murphy (via Zoom), Interim Finance Director B. Magee (via Zoom), Director of Economic Development and Housing B. Lipscomb (via Zoom), Director of Planning and Community Development L. Butler (via Zoom), Director of Public Works M. Dettle (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 10:34 a.m. There were no speakers. Mayor Brunner closed the public comment period at 10:35 a.m.

9.1 May 24, 2022 CITY COUNCIL MINUTES 6094
Referral to Closed Session

1. 136 River Street (APN 008-311-07) (ED)
MOTION: Councilmember Cummings moved, seconded by Councilmember Golder, to approve a referral to Closed Session for discussion regarding price, terms of payment, or both.

ACTION: The motion carried with the following vote.

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

NOES: None.

ABSENT: Vice Mayor Watkins.

DISQUALIFIED: None.

Closed Session

2. Conference with Labor Negotiators (Government Code §54957.6) SEIU Temporary Employees
SEIU Service Employees
Mid Managers, OE3
Supervisors, OE3
Fire Management
Fire, IAFF
Police Management
Police Officers Association
Executives
City Negotiator - Lisa Murphy

9.2 May 24, 2022 CITY COUNCIL MINUTES 6095
Closed Session (continued)

3. Conference with Legal Counsel - Anticipated Litigation (Government Code §54956.9(d)(2))
Significant exposure to litigation (1 potential case to be discussed)

4. Real Property Negotiations (Government Code §54956.8) 1) Property: 115-C Coral Street
APN: 008-191-33 portion
Owner: City of Santa Cruz
City Negotiator: Bonnie Lipscomb
Negotiating Parties: N/A
Under Negotiation: Lease price, terms, or both
2) Property: 136 River Street
APN: 008-311-07
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City and Thomas, Bobby James, & Elizabeth June, Trustees
Under Negotiation: Price, terms of payment, or both

5. Conference with Legal Counsel – Existing Litigation (Govt. Code §54956.9(d)(1))
City of Santa Cruz et al. v. Pacific Gas and Electric Co.

Santa Cruz Superior Court Case No. 21CV02211
At this time, the meeting was closed to the public. (See pages 6097—6098 for a report on Closed Session.)

9.3 May 24, 2022 CITY COUNCIL MINUTES 6096
City of Santa Cruz
809 Center Street
Santa Cruz, California 95060

MINUTES OF A CITY COUNCIL MEETING
May 24, 2022
12:30 PM
Call to Order – Mayor Brunner called the meeting to order at 12:30 p.m. via Zoom.

Roll Call

Present: Councilmembers Kalantari-Johnson (via Zoom), Golder (arrived at 1:21 p.m. via Zoom), Cummings (via Zoom), Brown (via Zoom), Meyers (via Zoom, left at 3:00 p.m.); 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), City Attorney T. Condotti (via Zoom), Director of Public Works M. Dettle (via Zoom), Chief of Police B. Escalante (via Zoom), Director of Planning and Community Development L. Butler (via Zoom), Interim Finance Director B. Magee (via Zoom), Director of Economic Development and Housing B. Lipscomb (via Zoom), Director of Information Technology K. Morgan (via Zoom), Director of Human Resources L. Murphy (via Zoom), Fire Chief R. Oatey (via Zoom), Director of Parks and Recreation T. Elliot (via Zoom), Recreation Supervisor D.

Lawson-Thomas (via Zoom), Business Liaison R. Unitt (via Zoom), Principal Management Analyst C. Hemard (via Zoom), Deputy City Clerk Administrator J. Wood, City Clerk Administrator B. Bush (via Zoom).

Presentations

6. Beach Safety Week
Fire Chief R. Oatey gave a presentation on Beach Safety Week. Recreation Supervisor D. Lawson-Thomas spoke.

7. Mayoral Proclamation Declaring June 2022 as LGBTQ+ Pride Month Mayor Brunner spoke about presenting a proclamation declaring June 2022 as LGBTQ+ Pride Month at the upcoming Santa Cruz PRIDE event.

9.4 May 24, 2022 CITY COUNCIL MINUTES 6097
Presiding Officer's Announcements
Statements of Disqualification – Mayor Brunner announced that she will be recusing herself from voting on items 13 and 14, the annual work plans for the Downtown Association, which is her employer.

Additions and Deletions – None.

City Attorney Report on Closed Session
Conference with Labor Negotiators (Government Code §54957.6) SEIU Temporary Employees
SEIU Service Employees
Mid Managers, OE3
Supervisors, OE3
Fire Management
Fire, IAFF
Police Management
Police Officers Association
Executives
City Negotiator - Lisa Murphy
Conference With Legal Counsel – Liability Claims (Government Code §54956.95) Council received a status report from the City Negotiator, and took no reportable action.

Conference with Legal Counsel - Anticipated Litigation (Government Code §54956.9(d)(2))
Significant exposure to litigation (1 potential case to be discussed) Council received a status report, and by a 6-0 vote with Councilmember Watkins absent, approved the settlement of a claim by former City employee, Susan O’Hara, in the sum of $250,000. A copy of the settlement agreement can be obtained upon request by members of the public once it has been fully executed and finalized.

9.5 May 24, 2022 CITY COUNCIL MINUTES 6098
City Attorney Report on Closed Session (continued)
Real Property Negotiations (Government Code §54956.8)
1) Property: 115-C Coral Street
APN: 008-191-33 portion
Owner: City of Santa Cruz
City Negotiator: Bonnie Lipscomb
Negotiating Parties: N/A
Under Negotiation: Lease price, terms, or both
2) Property: 136 River Street
APN: 008-311-07
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City and Thomas, Bobby James, & Elizabeth June, Trustees
Under Negotiation: Price, terms of payment, or both
Council received a status report from the City Negotiator, and took no reportable action.

Conference with Legal Counsel – Existing Litigation (Govt. Code §54956.9(d)(1))
City of Santa Cruz et al. v. Pacific Gas and Electric Co.

Santa Cruz Superior Court Case No. 21CV02211
Council received a status report, and took no reportable action.

Council Meeting Calendar

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

9.6 May 24, 2022 CITY COUNCIL MINUTES 6099
Council Memberships in City Groups and Outside Agencies

9. The Presiding Officer provided Councilmembers with the opportunity to update Council on any external committee meetings that occurred since the last Council meeting
Councilmember Cummings: Local Agency Formation Commission (LAFCO), Downtown Management Corporation, Criminal Justice Council, and Beach Flats Parking Subcommittee.

Councilmember Brown: Area Agency on Aging (AAA), Santa Cruz County Regional Transportation Commission (RTC), and Monterey Bay Air Resources District (MBARD).

Councilmember Kalantari-Johnson: Youth Action Network, Community Action Board, and Safe Parking Subcommittee (Oversized Vehicles Ordinance Subcommittee).

Vice Mayor Watkins: Health in All Policies (HiAP) Subcommittee, and Homelessness 2x2 Committee.

Mayor Brunner: Health in All Policies (HiAP) Subcommittee, and City Select Committee.

Consent Agenda
Councilmember Kalantari-Johnson made a comment on item 12.

Councilmembers Brown and Cummings made comments on item 16.

Councilmember Cummings pulled item 13 for further discussion.

Vice Mayor Watkins pulled item 14 for further discussion.

Director of Public Works M. Dettle responded to Councilmember Cummings’ questions regarding item 15.

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

James Ewing Whitman spoke regarding items 16 and 10.

Unidentified person spoke regarding item 12.

Mayor Brunner closed the public comment period.

9.7 May 24, 2022 CITY COUNCIL MINUTES 6100
Consent Agenda (continued)
MOTION: Vice Mayor Watkins moved, seconded by Councilmember Meyers, to approve the remaining Consent Agenda.

ACTION: The motion carried unanimously with the following vote.

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

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

10. Resolution Authorizing the City to Continue Teleconferenced Public Meetings Pursuant to Assembly Bill 361 (CA)
Resolution No. NS-29,987 was adopted authorizing legislative bodies of the City of Santa Cruz to continue the use of teleconferenced meetings pursuant to Assembly Bill 361.

11.. Minutes of the May 10, 2022 City Council Meeting (CC) Motion carried to approve as submitted.

12. Support of California's Opposition to the Draft Supreme Court Decision to Overturn Roe v. Wade (CN)
Motion carried directing the Mayor to send a letter to Governor Newsom in support of California's opposition to the draft Supreme Court decision to overturn the Roe v. Wade ruling.

At this time, Mayor Brunner recused herself and left the meeting.

13. Downtown Association: Parking and Business Improvement Area Assessments for FY 2023 (ED)
Business Liaison R. Unitt responded to Councilmember questions.

Vice Mayor Watkins opened the public comment period. There were no speakers. Vice Mayor Watkins closed the public comment period.

9.8 May 24, 2022 CITY COUNCIL MINUTES 6101
Consent Agenda (continued)

13. Downtown Association: Parking and Business Improvement Area Assessments for FY 2023 (ED) (continued)
MOTION: Councilmember Meyers moved, seconded by Councilmember Cummings, to:
 Approve the plan prepared by the Downtown Association for FY 2023; and  Adopt Resolution No. NS-29,988, a resolution of intention to levy a Downtown Association Parking and Business Improvement Assessment for FY 2023 and schedule a public hearing for June 14, 2022, after the hour of 11:00 a.m., on the levy of the assessments for FY 2023.

ACTION: The motion carried with the following vote.

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

NOES: None.

ABSENT: None.

DISQUALIFIED: Mayor Brunner.

14. Cooperative Retail Management Business Real Property Improvement District Assessments for FY 2023 (ED)
Vice Mayor Watkins opened the public comment period. There were no speakers. Vice Mayor Watkins closed the public comment period.

MOTION: Councilmember Meyers moved, seconded by Councilmember Cummings, to
 Approve the FY 2022 Annual Report and FY 2023 Plan prepared by the Downtown Management Corporation; and
 Adopt Resolution No. NS-29,989, a resolution of intention to levy a Cooperative Retail Management Business Real Property Improvement District Assessment for FY 2023 and schedule a public hearing for June 14, 2022, after the hour of 11:00 a.m., on the levy of the assessments for FY 2023.

9.9 May 24, 2022 CITY COUNCIL MINUTES 6102
Consent Agenda (continued)

14. Cooperative Retail Management Business Real Property Improvement District Assessments for FY 2023 (ED) (continued)
ACTION: The motion carried with the following vote.

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

NOES: None.

ABSENT: None.

DISQUALIFIED: Mayor Brunner.

15. Police Department Roof Restoration – Award Contract (PW) Motion carried to award a contract with Tremco Inc. (Foster City, CA) for the restoration of the Police Department roof in the amount of $126,925. 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 project budget.

16. Purchase of Three Electric Medium/Heavy Duty Vehicles and Amending the FY 2022 Budget and Appropriation of Funds for Three Electric Vehicles (g402203, p402209, and g402204) – Budget Adjustment (PW)
Motion carried to:
 Adopt Resolution No. NS-29,990 amending the FY 2022 budget and appropriating funds in the amount $1,049,446 to fully fund the purchase of three heavy and medium duty electric vehicles (g402203, p402209, and g402204); and
 Adopt Resolution No. NS-29,991 to apply, accept, and appropriate grant funds from the Monterey Bay Air Resources District’s AB 2766 Motor Vehicle Emissions Reduction Grant and for other Monterey Bay Air Resources District grant programs that the City is eligible for a five-year term; and  Adopt Resolution No. NS-29,992 to apply, accept, and appropriate grant funds from the Central Coast Community Energy Membership Agency Medium and Heavy Duty Electric Vehicle Program Grant and for other California Energy Commission grant programs that the City is eligible for a five-year term; and

9.10 May 24, 2022 CITY COUNCIL MINUTES 6103
Consent Agenda (continued)

16. Purchase of Three Electric Medium/Heavy Duty Vehicles and Amending the FY 2022 Budget and Appropriation of Funds for Three Electric Vehicles (g402203, p402209, and g402204) – Budget Adjustment (PW) (continued)  Authorize the purchase of one electric refuse hauler and one electric flatbed totaling $856,203 from the Refuse Fund, and one electric dump truck in the amount of $193,243 from the Street Maintenance Division General Fund.

17. Resolution to Apply for State Water Resources Control Board Funding for the Newell Creek Pipeline (WT)
Resolution No. NS-29,993 was adopted authorizing the Water Department to apply for State Water Resources Control Board (SWRCB) funding for the Newell Creek Pipeline.

End Consent Agenda
At this time, Mayor Brunner returned to the meeting.

Public Hearing

18. 2nd Reading and Adoption of Ordinance No. 2022-06, An Ordinance Transitioning to District-Based Elections and Selecting a 7-District Map Option and a 6-District Map Option, along with Related Election Sequencing (CN) City Attorney T. Condotti responded to Councilmember questions.

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

SPEAKING VIA TELECONFERENCE:

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

Principal Management Analyst C. Hemard and Doug Johnson, Demographer with National Demographics Corporation, responded to Councilmember questions.

9.11 May 24, 2022 CITY COUNCIL MINUTES 6104
Public Hearing (continued)

18. 2nd Reading and Adoption of Ordinance No. 2022-06, An Ordinance Transitioning to District-Based Elections and Selecting a 7-District Map Option and a 6-District Map Option, along with Related Election Sequencing (CN) (continued)
MOTION: Vice Mayor Watkins moved, seconded by Councilmember Golder, to adopt Ordinance No. 2022-06 transitioning to district-based elections and selecting a 7-district map option and a 6-district map option, along with related election sequencing.

SUBSTITUTE MOTION: Councilmember Cummings moved, seconded by Councilmember Brown, to continue this item to after the June 7th election to provide more transparency.

ACTION: The substitute motion was not accepted with the following vote.

AYES: Councilmembers Cummings, Brown.

NOES: Councilmembers Kalantari-Johnson, Golder, Meyers; Vice Mayor Watkins; Mayor Brunner.

ABSENT: None.

DISQUALIFIED: None.

SUBSTITUTE MOTION: Councilmember Cummings moved, seconded by Councilmember Brown, to adopt maps 604b and 101d.

MOTION: Vice Mayor Watkins moved, seconded by Councilmember Meyers, to call the question.

ACTION: The motion to call the question carried with the following vote.

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

NOES: Councilmember Cummings, Brown.

ABSENT: None.

DISQUALIFIED: None.

ACTION: The substitute motion was not accepted with the following vote.

AYES: Councilmembers Cummings, Brown.

NOES: Councilmembers Kalantari-Johnson, Golder, Meyers; Vice Mayor Watkins; Mayor Brunner.

ABSENT: None.

DISQUALIFIED: None.

9.12 May 24, 2022 CITY COUNCIL MINUTES 6105
Public Hearing (continued)

18. 2nd Reading and Adoption of Ordinance No. 2022-06, An Ordinance Transitioning to District-Based Elections and Selecting a 7-District Map Option and a 6-District Map Option, along with Related Election Sequencing (CN) (continued)
Councilmember Brown stated for the record that she has a political agenda to ensure that under-represented voices are heard and better represented in the decisions Council makes, and she is very proud of that. The idea that having a political agenda is inappropriate and is very dismaying to her.

Councilmember Cummings stated for the record that Council’s decision here is to address racially polarized voting. The staff recommendation for these maps were the following: NDC has revised the initial draft maps in response to feedback received at the public hearing on March 29. Staff recommends that the Council select Map 604b, as it most effectively incorporates the majority of the feedback received for the six-district map. At the public hearing on March 29 and in the City’s Polco survey, the community and City Council indicated Map 101 was the preferred model, with a few modifications. Staff recommends that the Council select Map 101d, as it most effectively incorporates the majority of the feedback received for the seven-district map.

ACTION: The original motion carried with the following vote.

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

NOES: Councilmember Cummings, Brown.

ABSENT: None.

DISQUALIFIED: None.

9.13 May 24, 2022 CITY COUNCIL MINUTES 6106
General Business

19. Historic Preservation Commission Appointment (CC)
Mayor Brunner opened the public comment period. There were no speakers.

Mayor Brunner closed the public comment period.

Councilmember Kalantari-Johnson nominated Frank Zwart.

Councilmember Golder nominated William Schultz.

Voting for Frank Zwart: Councilmembers Kalantari-Johnson, Golder, Cummings, Brown, Meyers; Vice Mayor Watkins; Mayor Brunner.

Frank Zwart was appointed to the Historic Preservation Commission with a term ending January 31, 2024.

20. Sister Cities Committee Appointment (CC)
Mayor Brunner opened the public comment period. There were no speakers.

Mayor Brunner closed the public comment period.

Councilmember Brown nominated Linda Snook and Amy West.

Vice Mayor Watkins nominated Michael Tassio.

Voting for Linda Snook: Councilmembers Cummings, Brown; Vice Mayor Watkins; Mayor Brunner.

Voting for Michael Tassio: Councilmembers Kalantari-Johnson, Golder, Meyers; Vice Mayor Watkins; Mayor Brunner.

Voting for Amy West: Councilmembers Kalantari-Johnson, Golder, Cummings, Brown, Meyers.

Due to a tie vote, another vote was taken to determine the terms.

Voting for Amy West: Councilmembers Kalantari-Johnson, Golder, Cummings, Brown, Meyers; Vice Mayor Watkins; Mayor Brunner.

Amy West was appointed to the Sister Cities Committee with a term ending January 31, 2026, and Michael Tassio was appointed with a term ending January 31, 2023.

9.14 May 24, 2022 CITY COUNCIL MINUTES 6107
General Business (continued)

21. Impact Report for the Empty Home Tax Initiative Petition (FN) Interim Finance Director B. Magee spoke and responded to Councilmember questions.

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

SPEAKING VIA TELECONFERENCE:

Amanda
Eric Grodberg
Unidentified person
Cyndi Dawson
Unidentified person
Unidentified person
Katie Spencer
Jasmeen Miah
Mayor Brunner closed the public comment period.

MOTION: Councilmember Brown moved, seconded by Vice Mayor Watkins, to order an impact report, pursuant to California Elections Code Section 9212, related to the Empty Home Tax initiative petition, with the report to come to Council at the June 28, 2022 meeting.

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.

9.15 May 24, 2022 CITY COUNCIL MINUTES 6108
General Business (continued)

22. Report of Effect for Our Downtown, Our Future Initiative Petition (CN) Councilmember Kalantari-Johnson and City Manager M. Huffaker spoke.

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

SPEAKING VIA TELECONFERENCE:

Alyssa Kroeger
Kyle Kelley
Unidentified person
Mayor Brunner closed the public comment period.

MOTION: Councilmember Kalantari-Johnson moved, seconded by Vice Mayor Watkins, to order an impact report, pursuant to California Elections Code Section 9212 and as described herein, related to the Our Downtown, Our Future initiative petition, with the report to come to Council no later than July 28, 2022.

FRIENDLY AMENDMENT: Councilmember Brown requested that the consultants include representatives from Our Downtown, Our Future in conversation as part of their analysis. Councilmember Kalantari-Johnson and Vice Mayor Watkins accepted.

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.

Recess - The City Council recessed at 4:04 p.m. to the 5:15 p.m. session.

9.16 May 24, 2022 CITY COUNCIL MINUTES 6109
City Council
5:15 PM
Call to Order – Mayor Brunner called the meeting to order at 5:15 p.m. via Zoom.

Roll Call

Present: Councilmembers Kalantari-Johnson (via Zoom), Golder (via Zoom), Cummings (arrived at 5:24 p.m. 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), Director of Libraries Y. Wilburn (via Zoom), Director of Information Technology K. Morgan (via Zoom), Director of Planning and Community Development L. Butler (via Zoom), Director of Human Resources L. Murphy (via Zoom), Fire Chief R. Oatey (via Zoom), Water Director R. Menard (via Zoom), Water Chief Financial Officer D. Baum (via Zoom), Deputy City Clerk Administrator J. Wood, City Clerk Administrator B. Bush (via Zoom).

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

Oral Communications
At 5:18 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.

James Ewing Whitman spoke regarding a naturally occurring ice age, and homelessness.

Bryan Shields spoke regarding the need for labor standards in the construction workforce.

John Hall spoke regarding the Our Downtown, Our Future initiative petition.

Rob Darrow spoke regarding the upcoming Santa Cruz Pride weekend, thanking City Council for making Santa Cruz one of the most LGBTQ+ friendly cities in the nation.

9.17 May 24, 2022 CITY COUNCIL MINUTES 6110
Oral Communications (continued)
Marie Bunch spoke regarding mitigating tobacco waste in Santa Cruz.

Unidentified person spoke regarding ending tobacco waste in Santa Cruz.

Unidentified person spoke regarding homelessness, and housing.

At 5:36 p.m. Mayor Brunner closed Oral Communications.

Presentations

23. FY 2023 Proposed Budget
City Manager M. Huffaker and Interim Finance Director B. Magee gave a presentation providing an overview of the FY 2023 proposed budget.

Director of Libraries Y. Wilburn gave a presentation on Library’s proposed budget for FY 2023 and responded to Councilmember questions.

Interim Finance Director B. Magee gave a presentation on Finance’s proposed budget for FY 2023 and responded to Councilmember questions.

Director of Information Technology K. Morgan gave a presentation on Information Technology’s proposed budget for FY 2023 and responded to Councilmember questions.

Director of Human Resources L. Murphy gave a presentation on Human Resources’ proposed budget for FY 2023 and responded to Councilmember questions.

Water Director R. Menard and Water Chief Financial Officer D. Baum gave a presentation on Water’s proposed budget for FY 2023 and responded to Councilmember questions.

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

SPEAKING VIA TELECONFERENCE:

James Ewing Whitman
Unidentified person
Mayor Brunner closed the public comment period.

Adjournment - The City Council adjourned at 7:57 p.m.

9.18 May 24, 2022 CITY COUNCIL MINUTES 6111
Respectfully Submitted:

Julia Wood, Deputy City Clerk Administrator
Attest:

Bonnie Bush, City Clerk Administrator
Approved:

Sonja Brunner, Mayor

9.19 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
May 25, 2022
9:00 AM
Call to Order – Mayor Brunner called the meeting to order at 9:01 a.m. via Zoom.

Roll Call

Present: Councilmembers Kalantari-Johnson (left at 3:00 p.m. via Zoom), Golder (arrived at 1:00 p.m. via Zoom), Cummings (via Zoom), Brown (via Zoom); Vice Mayor Watkins (arrived at 11:25 a.m., left at 12:33 p.m. returned at 2:45 p.m. 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 Economic Development and Housing B. Lipscomb (via Zoom), Interim Finance Director B. Magee (via Zoom), Director of Information Technology K.

Morgan (via Zoom), Director of Planning and Community Development L. Butler (via Zoom), Fire Chief R. Oatey (via Zoom), Director of Public Works M. Dettle (via Zoom), Director of Parks and Recreation T. Elliot (via Zoom), Water Director R. Menard (via Zoom), Principal Management Analyst L. Bass (via Zoom), Assistant Director of Public Works/City Engineer N. Nguyen (via Zoom), Deputy City Clerk Administrator J.

Wood, City Clerk Administrator B. Bush (via Zoom).

Presentations

1. FY 2023 Proposed Budget
Director of Economic Development and Housing B. Lipscomb gave a presentation and responded to Councilmember questions.

Director of Planning and Community Development L. Butler gave a presentation and responded to Councilmember questions.

Assistant City Manager L. Schmidt gave a presentation on the City Council, the City Manager’s Office, and City Attorney’s Office proposed budgets for FY 2023 and responded to Councilmember questions.

Council took a break at 10:55 a.m. and returned at 11:05 a.m.

10.1 May 25, 2022 CITY COUNCIL SPECIAL MEETING MINUTES 4917 Presentations (continued)

1. FY 2023 Proposed Budget (continued)
Chief of Police B. Escalante gave a presentation and responded to Councilmember questions.

Fire Chief R. Oatey gave a presentation and responded to Councilmember questions.

Council took a break at 12:33 p.m. a.m. and returned at 1:03 p.m.

Director of Public Works M. Dettle gave a presentation and responded to Councilmember questions.

Director of Parks and Recreation T. Elliot and Principal Management Analyst L.

Bass gave a presentation and responded to Councilmember questions.

Interim Finance Director B. Magee introduced the Capital Improvement Program’s proposed budget for FY 2023 and called on the following individuals to give presentations on their department’s Capital Improvements and respond to Councilmember questions: Assistant Director of Public Works/City Engineer N. Nguyen, Director of Parks and Recreation T. Elliot, Director of Economic Development and Housing B. Lipscomb, and Fire Chief R. Oatey.

Mayor Brunner opened the public comment period. There were no speakers.

Mayor Brunner closed the public comment period.

Adjournment - The City Council adjourned at 3:24 p.m.

Respectfully Submitted:

Julia Wood, Deputy City Clerk Administrator
Attest:

Bonnie Bush, City Clerk Administrator
Approved:

Sonja Brunner, Mayor

10.2 City Council

AGENDA REPORT
DATE: 06/03/2022
AGENDA OF: 06/14/2022
DEPARTMENT: City Clerk
SUBJECT: Santa Cruz County Latino Affairs Commission Nomination (CC) RECOMMENDATION: Motion to nominate Pablo Velasquez as a Santa Cruz County Latino Affairs Commissioner.

BACKGROUND: The City of Santa Cruz has two seats on the Santa Cruz County Latino Affairs Commission and the Council is responsible for nominating the members to fill those spots. The Santa Cruz County Board of Supervisors ultimately accepts the nominations and appoints new members.

DISCUSSION: Due to a vacancy of one of the City-nominated seats on the Santa Cruz County Latino Affairs Commission, the City of Santa Cruz must nominate a replacement.

FISCAL IMPACT: None.

Prepared By:

Bonnie Bush
City Clerk
Submitted By:

Laura Schmidt
Assistant City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. APPLICATION.PDF

11.1 11.2

11.3 City Council

AGENDA REPORT
DATE: 06/02/22
AGENDA OF: 06/14/22
DEPARTMENT: City Manager
SUBJECT: Library Financing Authority Joint Powers Agreement (CM) RECOMMENDATION: Motion to approve the Fourth Amendment to the Joint Exercise of Powers Agreement Establishing the Santa Cruz County Library Financing Authority, and authorize the City Manager to sign the amendment, in a form to be approved by the City Attorney.

BACKGROUND: Financing of public library services in the County is provided through the Santa Cruz County Library Financing Authority (LFA), a Joint Powers Authority formed in 1996 by the County of Santa Cruz and the cities of Santa Cruz, Watsonville, Scotts Valley and Capitola, established for the purpose of consolidating and providing for equitable financing of library services. LFA funding is currently provided through the proceeds of the voter-approved ¼-cent sales tax for libraries (Measure R) and from jurisdictional contributions (also referred to as Maintenance of Effort contributions) from the cities of Santa Cruz and Watsonville and the County Library Fund, which includes Capitola and Scotts Valley.

Under the original LFA agreement approved in June 1996, the cities of Santa Cruz and Watsonville contributed a fixed amount from their general funds, and the County Library Fund contributed an amount based on property taxes collected in the unincorporated area and cities of Capitola and Scotts Valley. When the LFA was established, the City of Santa Cruz contributed more than the County Library Fund based on population, and these amounts were intended to equalize. That occurred in approximately 15 years, and the County Library Fund's contribution continued to grow from property taxes.

In December 2015, the jurisdictions amended the LFA agreement to establish a five-year term through June 30, 2021 and to adjust the contributions as follows:
 County Library Fund - The County Library Fund contributes a fixed amount of approximately $5 million annually beginning in FY 2017. The County Board of Supervisors allocates any excess property taxes in the Library Fund for exclusive use on library improvements or services at County Library Fund branches in consultation with the cities of Capitola and Scotts Valley and library staff.  City of Santa Cruz - The City of Santa Cruz contributes an amount that increases $70,000 annually beginning in FY 2017. The Santa Cruz City Council allocates an additional $30,000 annually for exclusive use on library improvements or services at

12.1 City branches in consultation with library staff.
 City of Watsonville - The City of Watsonville contributes a fixed amount and receives a fixed distribution, beginning a phased down approach to reach the targeted level of funding based on the population served. The remaining amount available from contributions is distributed to the Santa Cruz City/County Library System.

In June 2021, the jurisdictions further amended the LFA agreement to increase the contributions for the City of Santa Cruz and the County Library Fund in FY 2022. This one-year extension allowed staff to consider the funding of major maintenance at branches and update the schedule for Watsonville target funding based on the population served and property tax growth.

The jurisdictions have reached a new agreement for a three-year extension with increased contributions in FY 2023 through FY 2025. This aligns with the current term of the Joint Powers Agreement relating to library services, which expires at the end of 2025.

The jurisdictions wish to further amend the LFA agreement to increase the contributions for the City of Santa Cruz and the County Library Fund in FY 2022 while a long-term agreement is reached that takes into consideration the funding of major maintenance at branches. Staff are also updating the schedule for Watsonville target funding based on the population served and property tax growth.

DISCUSSION The attached Fourth Amendment to the Joint Exercise of Powers Agreement Establishing the Santa Cruz County Library Financing Authority extends the term through June 30, 2025 and provides for the contributions and distributions detailed in Tables 1 and 2.

Table 1: Contributions of the Cities and County
Fiscal Year City of Santa
Cruz
City of
Watsonville
County Library
Fund
2022-23 $1,976,853 $541,684 $6,322,019
2023-24 $2,214,546 $541,684 $6,870,918
2024-25 $2,452,089 $541,684 $7,422,372
While the City of Watsonville’s contribution remains the same, the contributions of the City of Santa Cruz and County Library Fund will both increase in FY 2023 through FY 2025. The amounts have been determined based on a formula weighted equally by population and library square footage in each jurisdiction. The formula makes adjustments for system wide use of the Downtown Branch as well as a rent offset for system wide administrative staff housed at the Downtown Branch. Staff are working with the Santa Cruz City/County Library System to obtain better data on library usage so that these factors can be used as part of the future formula. Based on the current formula, the City of Santa Cruz’s contribution is expected to reach a targeted level of funding equal to the County Library Fund by FY 2026.

12.2 Table 2: Distributions to the Libraries
Fiscal Year Santa Cruz
City/County
Library System
Watsonville
Library
2022-23 $7,276,853 $1,563,703
2023-24 $8,114,546 $1,512,602
2024-25 $8,952,089 $1,464,056
The Santa Cruz City/County Library System's distribution will continue to increase in FY 2023 through FY 2025, while the Watsonville Library's distribution will remain fixed in FY 2023 and then begin to decrease in FY 2024. The Watsonville Library’s distribution is expected to reach the targeted level of funding from the County Library Fund based on the population served by FY 2026, or 11 years earlier than anticipated due to adjustments to the population served and property tax growth.

FISCAL IMPACT: The FY 2023 recommended budget for the County Library Fund includes the anticipated $1 million increase from $5.3 million to $6.3 million.

Prepared By:

Bonnie Bush
City Clerk
Submitted By:

Laura Schmidt
Assistant City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. FOURTH AMENDMENT MAY 2022.DOCX

12.3 Library Financing JPA Fourth Amendment May 2022

FOURTH AMENDMENT TO THE JOINT EXERCISE OF POWERS

AGREEMENT ESTABLISHING THE SANTA CRUZ COUNTY LIBRARY

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

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

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

Section 3.1 – Maintenance of Effort Contributions of the Cities. Commencing with the 2022- 23 fiscal year, the City of Santa Cruz shall contribute a Maintenance of Effort (“MOE”) amount each year in the amounts shown below:

12.4 Library Financing JPA Fourth Amendment May 2022
City of Santa Cruz Maintenance of Effort
Fiscal Year Amount
2022-23 $1,976,853
2023-24 $2,214,546
2024-25 $2,452,089
Commencing with the 2022-23 fiscal year, the City of Watsonville shall contribute a MOE amount each year in the amounts shown below:

City of Watsonville Maintenance of Effort
Fiscal Year Amount
2022-23 $541,684
2023-24 $541,684
2024-25 $541,684
Section 3.2 – Maintenance of Effort Contributions of the County. Commencing with the 2022-23 fiscal year, and subject to the terms below, the County of Santa Cruz, on behalf of the Unincorporated Area and the cities of Capitola and Scotts Valley, shall contribute a MOE amount from the County Library Fund each year in the amounts shown below:

County Library Fund Maintenance of Effort
Fiscal Year Amount
2022-23 $6,322,019
2023-24 $6,870,918
2024-25 $7,422,372
If the Annual Net Amount of Allocated Taxes received by the County Library Fund is less than the annual MOE amount shown above, the County shall contribute the lesser amount as its annual MOE contribution. In no instance shall the County’s annual MOE contribution exceed the Annual Net Amount of Allocated Taxes received by the County Library Fund.

If the Annual Net Amount of Allocated Taxes received by the County Library Fund exceeds the annual MOE amount shown above, the County shall allocate any excess funds in the County Library Fund for exclusive use on library improvements, major maintenance, or services at County Library Fund branches (including Capitola and Scotts Valley branches) with input by library staff and the cities of Capitola and Scotts Valley.

12.5 Library Financing JPA Fourth Amendment May 2022

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

Section 4.3 – Disbursement of Funds. Commencing with the 2023-23 fiscal year, the amounts available from MOE contributions, taxes or fees, and carryover balances or surplus funds shall be disbursed as follows:
(A) The estimated amount available from MOE contributions shall be distributed to the Santa Cruz City/County Library System and the Watsonville Library each year in the amounts shown below:

Santa Cruz City/ County Library System
Fiscal Year Amount
2022-23 $7,276,853
2023-24 $8,114,546
2024-25 $8,952,089
Watsonville Library
Fiscal Year Amount
2022-23 $1,563,703
2023-24 $1,512,602
2024-25 $1,464,056
The Watsonville Library’s MOE distribution remains fixed at $1,563,703 in the 2022-23 fiscal year and then reduces so that the Watsonville Library’s share of the Annual Net Amount of Allocated Taxes received by the County Library Fund reaches the targeted level of funding based on the population served.

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

Section 6.1 – Term. The changes outlined in this Fourth Amendment shall commence upon the execution by the parties hereto, and will continue to remain in effect through June 30, 2025.

All other provisions of said Agreement shall remain the same.

12.6 Library Financing JPA Fourth Amendment May 2022
IN WITNESS WHEREOF, the parties hereto have caused this Fourth Amendment to be executed and attested by their proper officers thereunto duly authorized on the day and year stated below the name of each of the parties. This Fourth Amendment may be signed in counterparts, each of which shall be deemed an original, and all of which shall constitute one and the same agreement.

COUNTY OF SANTA CRUZ Approved as to form:

By :

Dated :

CITY OF SANTA CRUZ Approved as to form:

By :

Dated :

CITY OF WATSONVILLE Approved as to form:

By :

Dated :

CITY OF CAPITOLA Approved as to form:

By :

Dated :

CITY OF SCOTTS VALLEY Approved as to form:

By :

Dated :

12.7 City Council

AGENDA REPORT
DATE: June 9, 2022
AGENDA OF: June 14, 2022
DEPARTMENT: City Manager’s Office
SUBJECT: Contract for Operation of the Safe Parking Tier 3 Program (CM) RECOMMENDATION: Motion to authorize and direct the City Manager to execute a contract, in a form approved by the City Attorney, with the Association of Faith Communities for Safe Parking Tier 3 operation.

BACKGROUND: The Oversized Vehicle Ordinance was passed by the City Council on November 9, 2021. In conjunction with the passage of the ordinance, Council directed staff to develop a three-tiered safe parking program for provide safe locations for individuals living in their oversized vehicles on City streets. The three tiers are as follows:
- Tier 1 is an emergency program with three parking spots that opened earlier this year. It typically serves participants for only a single night, but short extensions may be authorized in limited circumstances.
- Tier 2 is a program where participants can reserve a parking spot to return to nightly. It also opened earlier this year, with the initial roll-out containing six spaces and with significant capacity to expand at the current and additional locations as demand increases. - Tier 3 is a 24/7 program with wrap-around supportive services. It is expected to accommodate approximately 22 vehicles at a time.

This three-tiered system was created to provide safe, accessible parking spots for individuals so they can stabilize and work toward more long-term shelter and housing. The City’s commitment to safe parking was re-affirmed as part of the City’s Three-Year Homelessness Response Action Plan, which was adopted by Council on March 8, 2022.

DISCUSSION: Through the Homelessness and Housing Services Request for Qualifications process, the City received two vendor submissions for operating a Tier 3 Safe Parking program.

Staff reviewed the two proposals, and the Association of Faith Community (AFC) submission scored the highest. Therefore, staff recommends that Council approve the attached contract between the City of Santa Cruz and the Association of Faith Communities to operate a Tier 3 Safe Parking Program.

AFC is an experienced service provider that operates their SafeSpaces safe parking program throughout the County of Santa Cruz. For this program, AFC will partner with The Free Guide, a local non-profit that provides resources and service connections to the unsheltered community.

13.1 AFC will be responsible for administrative oversight and technical expertise for the program, and The Free Guide will be responsible for the day-to-day operations and service provision at the program site. Staff have worked closely with AFC and The Free Guide staff in the development of the scope of work contained in the attached contract.

The City has been leasing the National Guard Armory site for the past 2 ½ years. During most of this time, the County has been operating programs for persons experiencing homelessness at the Armory. In fall of 2021, the County began closing the three emergency shelters that have been operating at the Armory. The County will close their last shelter program at this site on June 30, 2022. The front parking lot of the Armory, where the County’s “Pavilion” shelter once stood, will be the site of this Tier 3 Safe Parking Program. This site can accommodate 20-22 oversized vehicles, with more possible depending on the size of vehicles. Since it is a parking lot, it is very suitable for such a program. Additional infrastructure will be placed to provide a community area for participants, office space for staff, and hygiene facilities. The existing shuttle program will be available for program participants to access downtown throughout the day.

The City is currently funding a shelter program in the south lawn of the Armory site, operated by the Salvation Army. The new Tier 3 Safe Parking Program will be the second City-funded program at the Armory site. The inside of the Armory building will be vacated by the County as of June 30th. City staff is currently assessing the funding and operational options to determine if a new, City-funded program can be opened to replace the emergency shelter closed by the County.

Health in All Policies (HiAP). The proposed contract is consistent with the three HiAP pillars of equity, sustainability, and health. The Tier 3 safe parking program will provide individuals currently residing in their vehicles with a safe location to park, access services, stabilize, and work towards a move into an improved living situation. The services related to sanitation and hygiene, as well as the services providing connections to benefits, barrier removal, job training, and housing, all promote equity, sustainability, and personal health.

Environmental Review.

The California Environmental Quality Act (CEQA) provides several “categorical exemptions” which are applicable to categories of projects and activities that the Natural Resource Agency has determined generally do not pose a risk of significant impacts on the environment. Section 15307 of the CEQA Guidelines “consists of actions taken by regulatory agencies... to assure the maintenance, restoration, or enhancement of a natural resource where the regulatory process involves procedures for protection of the environment.” Section 15308 of the CEQA Guidelines “consists of actions taken by regulatory agencies… to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for the protection of the environment.”
The proposed contract will result in an existing paved parking area being used as parking. The individuals served in the program are already parking oversized vehicles in the City, and the subject program is not anticipated to result in any additional impacts associated with parking of oversized vehicles. The provision of trash and sanitation facilities at this location would reduce environmental impacts associated with overnight parking on City streets where sanitation facilities, including restrooms and trash services, are unavailable. Thus, beneficial impacts to the environment are expected from the proposed program. Daily shuttle services to/from the program will reduce the need for the oversized vehicles to drive on City streets for the occupants to meet their daily needs, so a reduction in overall vehicle miles travelled is anticipated. Thus,

13.2 with the program expecting to result in beneficial environmental effects, the project is also exempt under Code of Regulations Section 15061(b), the “common sense exemption,” since it can be seen with certainty that no significant effect on the environment will occur.

FISCAL IMPACT: The total amount for this contract for Tier 3 Safe Parking is $392,348 for one year. On December 14, 2021, the Council approved the use of $1,038,920 in American Rescue Plan Act (ARPA) funds to support all elements of the Safe Parking programs, including $260,000 for a Tier 3 operator. The actual cost of this contract exceeds the estimated amount by $132,348. Staff expects this higher than projected cost for a Tier 3 operator to be offset by lower than expected costs in implementing other elements of the Safe Parking program. Funding for a Tier 3 Safe Parking operator beyond this first year is not yet identified.

Prepared By:

Larry Imwalle
Homelessness Response
Manager
Submitted By:

Laura Schmidt
Assistant City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:
1) Contract for Tier 3 Safe Parking Program Operation

13.3 City of Santa Cruz Professional Services Agreement for Safe Parking Program June, 2022 Page 1

PROFESSIONAL SERVICES AGREEMENT FOR

SAFE PARKING PROGRAM OPERATION AND MANAGEMENT AT THE ARMORY THIS AGREEMENT for professional services is made by and between the City of Santa Cruz (“City”) and The Association of Faith Communities (AFC), a California Corporation (“Contractor”) (referred to individually as a “Party” and collectively, as the “Parties”) for the term beginning July 1, 2022 (the “Effective Date”), and ending on June 30, 2023.

NOW, THEREFORE, in consideration of each other’s mutual promises, the Parties hereto agree as follows:

SECTION 1: SCOPE OF WORK
Contractor will furnish services as defined and described in the Scope of Work, attached hereto as Exhibit A and incorporated herein.

SECTION 2: RESPONSIBILITIES OF CONTRACTOR
All work performed by Contractor, or under Contractor’s direction, shall be rendered in accordance with the generally accepted practices, and to the standards of, Contractor's profession. Contractor represents and warrants that Contractor: (i) is fully experienced and properly qualified to perform the work and services provided for herein, (ii) has the financial capability required for the performance of the work and services, and (iii) is properly equipped and organized to perform the work and services in a competent, timely, and proper manner, in accordance with the requirements of this Agreement.

Contractor shall not undertake any work beyond the Scope of Work set forth in Exhibit A unless such additional work is approved in advance and in writing by City. The cost of such additional work shall be reimbursed to Contractor by City on the same basis as provided for in Section 4.

If, in performing the work, it is necessary to conduct field operations, security and safety of the job site will be the Contractor's responsibility excluding, the security and safety of any facility of City within the job site which is not under the Contractor's control.

Contractor shall meet with Larry Imwalle, Homelessness Response Manager, hereinafter called "Manager"; or other designated and authorized City personnel, or third parties as necessary, on all matters connected with carrying out of Contractor’s services described in Exhibit A. Such meetings shall be held at the request of either Party. Review and City approval of completed work shall be obtained monthly, or at other intervals as may be mutually agreed upon during the course of this Agreement. Review, approval, or acceptance of Contractor’s work by City or others shall not relieve Contractor from responsibility for errors and omissions in Contractor’s work.

SECTION 3: RESPONSIBILITIES OF THE CITY
City shall make available to Contractor all necessary data and information in the City's possession and shall actively assist Contractor in obtaining such information from other agencies and individuals as needed. Contractor is entitled to reasonably rely upon the accuracy and completeness of such data and information, provided that Contractor shall provide City prompt written notice of any known defects in such data and information.

The Manager may authorize a staff person to serve as his or her representative. The work in progress shall be reviewed at such intervals as may be mutually agreed upon between the Parties. The City will be the sole judge of acceptable work, provided that such approval will not be unreasonably withheld or delayed. If the work is not acceptable, City will inform Contractor of the changes or revisions necessary to secure approval.

13.4 City of Santa Cruz Professional Services Agreement for Safe Parking Program June, 2022 Page 2
SECTION 4: FEES AND PAYMENT
For services actually performed, the City will compensate Contractor at the rates set forth in the Fee Schedule detailed in Exhibit B and in accordance with the terms set forth therein. Payment for Contractor's services in carrying out the entire the Scope of Work shall be made within the budget limit, or limits shown, upon Exhibit B. Such payment shall be considered the full compensation for all personnel, materials, supplies, and equipment used by Contractor in the Scope of Work.

Contractor agrees that the payments to Contractor specified in this Section 4 will constitute full and complete compensation for all obligations assumed by Contractor under this Agreement. Where conflicts regarding compensation may occur, the provisions of this section apply.

Variations from the budget for each task which are justified by statements indicating personnel time expended and submittal of a revised budget are only allowed with prior City approval; however, in no event shall the total fee charged for the Scope of Work set forth in Exhibit A exceed the budget of $392,348.00 without advance written City authorization in the form of an amendment or change order.

Invoices shall be issued to the City monthly consistent with the requirements set forth in Exhibit A , and detail the time worked by each class of employee on each task and the expenses incurred for which billing is made. Unless otherwise specified in the fee schedule, payments shall be made monthly by the City within 30 days based on itemized invoices from the Contractor which list the actual costs and expenses.

SECTION 5: TRAVEL REIMBURSEMENT POLICY
The City shall not be responsible for any travel, meal, or lodging reimbursements to Contractor and/or Contractor’s employees.

SECTION 6: CHANGES IN WORK
The City, in its sole discretion, reserves the right with notice of 30 days, to order reductions in the scope of services. No changes in the Scope of Work shall be made without the written approval of City and Contractor. Any change requiring compensation in excess of the sum specified in Exhibit B shall be approved in advance in writing by the City. Only City’s authorized representative(s) is authorized to approve changes to this Agreement on behalf of City.

SECTION 7: TIME OF BEGINNING AND SCHEDULE FOR COMPLETION The term of this Agreement shall be on the effective date of this Agreement and terminating on June 30, 2023. It is expressly understood by the Parties hereto that this Agreement and its commencement is dependent and conditioned upon the execution and grant of a License Agreement (“License”) to the City from the California Military Department (the “State”) for use of the Santa Cruz Armory located at 301 Armory Rd., Santa Cruz, CA 95065-2101; and in the event that said License is not executed, this Agreement will not go into effect and the City incurs no responsibilities or liabilities under this Agreement.

Contractor shall begin work as specified once a written authorization to perform services under this Agreement has been issued by the City, after said License has been granted by the State to the City and this Agreement has been approved and authorized by the City.

Neither party will be held responsible for delay or default caused by declared emergencies, natural disasters, or any Force Majeure event which is beyond the party's reasonable control. Contractor will, however, make all reasonable efforts to remove or eliminate such a cause of delay or default and will, upon the cessation of the cause, diligently pursue performance of its obligations in this Agreement.

13.5 City of Santa Cruz Professional Services Agreement for Safe Parking Program June, 2022 Page 3
The City reserves the right to obtain the item(s) and/or services covered by this Agreement from another source during any on-going suspension of service due to the circumstances outlined above.

SECTION 8: TERMINATION
The City may terminate the Agreement for convenience by providing written notice to Contractor not less than 30 calendar days prior to an effective termination date. However, this Agreement shall terminate immediately upon any termination of the License for any reason whatsoever, without any liability upon the City, its officials, officers, and employees.

The Contractor may terminate the Agreement for cause by providing written notice to the City not less than 30 calendar days prior to an effective termination date.

The City may, at its option, allow Contractor to cure its failure to perform within 15 business days (or longer period authorized in writing by the City) from the date of the City’s termination notice. The termination shall be become effective if Contractor has not cured within such time period to the City’s satisfaction.

Contractor may terminate this Agreement for cause if the City fails to cure a material default in performance within a period of 30 calendar days (or such longer period agreed to by the Contractor), from date of the Contractor’s written termination notice specifying the default in performance.

Upon notice of termination by either the City or Contractor, the Contractor will immediately act to not incur any additional obligations, costs or expenses, except as may be reasonably necessary to terminate its activities. The City’s only obligation to the Contractor will be just and equitable payment for services authorized by, and received to the satisfaction of, the City up to and including the effective date of termination less any amounts withheld. All finished or unfinished work or documents procured or produced under the Agreement will become property of the City upon the termination date. In the event of Contractor’s failure to perform pursuant to the Agreement, the City reserves the right to obtain services elsewhere and Contractor will be liable for the difference between the prices set forth in the terminated Agreement and the actual cost to the City. Termination of the Agreement pursuant to this paragraph shall not relieve the Contractor of any liability to City for additional costs, expenses, or damages sustained by City due to failure of the Contractor to perform pursuant to the Agreement. City may withhold any payments to Contractor for the purpose of set-off until such time as the exact amount of damages due City from Contractor is determined. After the effective date of termination, Contractor will have no further claims against the City under the Agreement. No other compensation will be payable for anticipated profit on unperformed services.

SECTION 9: INSURANCE
Prior to the beginning of and throughout the duration of the Agreement, Contractor will maintain and comply with the Insurance Requirements as set forth in Exhibit C. Contractor will insure the City against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder. The insurance coverages required shall not in any way limit the liability of the Contractor.

SECTION 10: INDEMNIFICATION
Contractor agrees, to the fullest extent permitted by law, to indemnify, defend, and hold harmless the City, its officials, officers, employees, agents, and volunteers (collectively, “Indemnitees”) from and against any and all liability, claim, action, loss, injury, damage, judgment, or expense, including attorneys’ fees and costs (“Losses”) caused by or resulting from the negligence, recklessness, or willful misconduct of Contractor, Contractor’s officers, employees, agents, or subcontractors in any way related to this Agreement. Contractor’s duty to indemnify and hold harmless Indemnitees shall not apply to the extent such Losses are caused by the sole or active negligence or willful

13.6 City of Santa Cruz Professional Services Agreement for Safe Parking Program June, 2022 Page 4
misconduct of Indemnitees, as determined by an adjudicatory body or court of competent jurisdiction, if applicable.

The obligation to defend shall arise regardless of any claim or assertion that Indemnitees caused or contributed to the Losses.

In the event this Agreement involves the performance of design professional services by Contractor, Contractor’s officers, employees, agents, or subcontractors, Contractor’s costs to defend Indemnitees shall not exceed the Contractor’s proportionate percentage of fault per Civil Code §2782.8. This section shall survive the termination or expiration of this Agreement.

SECTION 11: EQUAL EMPLOYMENT OPPORTUNITY/NON-DISCRIMINATION POLICIES City’s policies promote a working environment free from abusive conduct, discrimination, harassment, and retaliation; and require equal opportunity in employment for all regardless of race, religious creed (including religious dress and grooming practices), color, national origin (including language use restrictions), ancestry, religion, disability (mental and physical), medical condition, sex, gender (including gender identity and gender expression), physical characteristics, marital status, age, sexual orientation, genetic information (including family health history and genetic test results), organizational affiliation, and military or veteran status, or any other consideration made unlawful by local, State or Federal law. City requires Contractor to comply with all applicable Federal and State and local equal employment opportunity laws and regulations, and Contractor is responsible for ensuring that effective policies and procedures concerning the prevention of abusive conduct, discrimination, harassment, and retaliation exist in Contractor’s business organization. The City’s current Equal Employment Opportunity and Non-Discrimination policies to which this Section applies may be viewed at http://www.codepublishing.com/CA/SantaCruz/?SantaCruz09/SantaCruz0983.html and http://www.cityofsantacruz.com/home/showdocument?id=59192.

SECTION 12: LEGAL ACTION/ATTORNEYS’ FEES
If any action at law or in equity is brought to enforce or interpret the provisions of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees in addition to any other relief. The laws of the State of California, with jurisdiction in the Santa Cruz County Superior Court, shall govern all matters relating to the validity, interpretation, and effect of this Agreement and any authorized or alleged changes, the performance of any of its terms, as well as the rights and obligations of Contractor and the City.

SECTION 13: AMENDMENTS
This Agreement may not be amended in any respect except by way of a written instrument which expressly references and identifies this particular Agreement, which expressly states that its purpose is to amend this particular Agreement, and which is duly executed by the City and Contractor. Contractor acknowledges that no such amendment shall be effective until approved and authorized by the City’s authorized representative. No representative of the City is authorized to obligate the City to pay the cost or value of services beyond the scope of services set forth in Exhibit A.

Such authority is retained solely by the City Manager, Manager, or their designee. Unless expressly authorized by the City Manager or Manager, Contractor’s compensation shall be limited to that set forth in Exhibit B, Fee Schedule.

SECTION 14: MISCELLANEOUS PROVISIONS

1. Director and Assistant Director. Manager reserves the right to approve the Director and Assistant Director assigned by Contractor to said work. No change in assignment may occur without prior written approval of the City.

2. Contractor Services Only. Contractor is employed to render professional services only and any payments made to Contractor are compensation solely for such professional services.

13.7 City of Santa Cruz Professional Services Agreement for Safe Parking Program June, 2022 Page 5

3. Independent Contractor. In the performance of this Agreement, it is expressly understood that Contractor, including each of Contractor’s employees, agents, subcontractors or others under Contractor’s supervision or control, is an independent contractor solely responsible for its own acts and omissions, and shall not be considered an employee of the City for any purpose. Contractor agrees to comply with AB5, codified at Labor Code section 2750.3, and shall indemnify, defend and hold harmless the City, its officials, officers, employees, and agents against any claim or liability, including attorneys’ fees and costs, arising in any manner related to this Agreement that an employee, agent or others under Contractor’s supervision or control was misclassified.

4. Contractor Not an Agent. Except as City may specify in writing, Contractor shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Contractor shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever.

5. Subcontractors. Contractor shall obtain prior approval of the City prior to subcontracting of any work pursuant to this Agreement. If at any time, the City determines any subcontractor is incompetent or unqualified, Contractor will be notified and will be expected to immediately cancel the subcontract. Contractor shall require and verify that all subcontractors maintain insurance meeting all of the requirements stated herein, including naming the City of Santa Cruz, its officers, officials, employees, agents, and volunteers as additional insureds. Any modification to the insurance requirements for subcontractors must be agreed to by the City in writing.

6. Assignment. This Agreement shall not be assigned without first obtaining the express written consent of the Manager or after approval of the City Council. Neither party may assign this Agreement unless this Agreement is amended in accordance with its terms.

7. Conflicts of Interest. Contractor owes City a duty of loyalty in performing the work and services under this Agreement. Contractor covenants (on behalf of Contractor and Contractor’s employees, agents, representatives, and subcontractors) that there is no direct or indirect interest, financial or otherwise, which would conflict in any manner or degree with the performance of services required under this Agreement. Contractor acknowledges and agrees to comply with applicable provisions of conflict of interest law and regulations, including the Political Reform Act, Section 1090 of the Government Code, and the City’s conflict of interest code. Contractor will immediately advise City if Contractor learns of a conflicting financial interest of Contractor during the term of this Agreement.

8. City Property. The work, or any portion, of Contractor in performing this Agreement shall become the property of City. The Contractor may be permitted to retain copies of such work for information and reference in connection only with the provision of services for the City. All materials and work product, whether finished or unfinished, shall be delivered to City upon completion of contract services or termination of this Agreement for any reason.

Unless otherwise provided herein, Contractor agrees that all copyrights which arise from creation of project-related documents and materials pursuant to this Agreement shall be vested in the City and Contractor waives and relinquishes all claims to copyright or other intellectual property rights in favor of City. Any work product related to this Agreement shall be confidential, not to be used by the Contractor on other projects or disclosed to any third party, except by agreement in writing by the City, or except as otherwise provided herein. Contractor’s final deliverables shall comply with Section 508 (29 U.S.C. Section 794d) accessibility requirements, as applicable.

9. Intellectual Property and Indemnity. Contractor represents to City that, to the best of Contractor’s knowledge, any Intellectual Property (including but not limited to: patent, patent application, trade secret, copyright and any applications or right to apply for registration, computer software programs or applications, tangible or intangible proprietary information, or any other intellectual property right) in connection with any services and/or products related to this Agreement does not violate or infringe upon any Intellectual Property rights of any other person or entity.

13.8 City of Santa Cruz Professional Services Agreement for Safe Parking Program June, 2022 Page 6
To the fullest extent permitted by law, Contractor agrees to indemnify, defend, and hold harmless City, its officials, officers, employees, and agents, from any and all claims, demands, actions, liabilities, damages, or expenses (including reasonable attorneys’ fees and costs) arising out of a claim of infringement, actual or alleged, direct or contributory, of any Intellectual Property rights in any way related to Contractor’s performance under this Agreement or to the City’s authorized intended or actual use of Contractor’s product or service under this Agreement. This provision shall survive termination or expiration of this Agreement.

If any product or service becomes, or in the Contractor’s opinion is likely to become, the subject of a claim of infringement, the Contractor shall, at its sole expense: (i) provide the City the right to continue using the product or service; or (ii) replace or modify the product or service so that it becomes non-infringing; or (iii) if none of the foregoing alternatives are possible even after Contractor’s commercially reasonable efforts, in addition to other available legal remedies, City will have the right to return the product or service and receive a full or partial refund of an amount equal to the value of the returned product or service, less the unpaid portion of the purchase price and any other amounts, which may be due to the Contractor. City shall have the right to retrieve its data and proprietary information at no charge prior to any return of the product or termination of service.

10. Confidentiality.
a. Contractor shall not acquire any ownership interest in data and information (“City Data”) received by Contractor from City, which shall remain the property of the City. Certain information may be considered confidential (“Confidential Information”). Confidential Information shall mean all information or proprietary materials (in every form and media) not generally known to the public and which has been or is hereafter disclosed or made available directly or indirectly through any means of communication, either verbally or in writing that has been designated in writing as “Confidential” in connection with this Agreement. Unless otherwise required by law, Contractor shall not, without City’s written permission, use or disclose City Data and/or Confidential Information other than in the performance of the obligations under this Agreement. As between Contractor and City, all City Confidential Information shall remain the property of the City. Contractor shall not acquire ownership interest in the City’s Confidential Information. b. Contractor shall be responsible for ensuring and maintaining the security and confidentiality of City Data and Confidential Information, protect against any anticipated threats or hazards to the security or integrity of City Data and Confidential Information, protect against unauthorized access to or use of City Data and Confidential Information that could result in substantial harm or inconvenience to City or any end users; and ensure the proper return and/or disposal of City Data and Confidential Information upon termination of this Agreement with notice to the City.
c. Contractor shall take appropriate action to address any incident of unauthorized access to City Data and Confidential Information, including addressing and/or remedying the issue that resulted in such unauthorized access, notifying City as soon as possible of any incident of unauthorized access to City Data and Confidential Information, or any other breach in Contractor’s security that materially affects City or end users; and be responsible for ensuring compliance by its officers, employees, agents, and subcontractors with the confidentiality provisions hereof. Should confidential and/or legally protected City Data be divulged to unauthorized third parties, Contractor shall comply with all applicable federal and state laws and regulations, including but not limited to California Civil Code sections 1798.29 and 1798.82 at Contractor’s sole expense. Contractor shall not charge City for any expenses associated with Contractor’s compliance with these obligations.
d. Contractor shall defend, indemnify and hold harmless City, its officials, officers, employees and agents against any claim, liability, loss, injury or damage (including attorneys’ fee and costs) arising out of, or in connection with, the unauthorized use, access, and/or disclosure of City Data and/or Confidential

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Information by Contractor and/or its agents, employees or sub-contractors, excepting only loss, injury or damage caused by the sole negligence or willful misconduct of the City. This provision shall survive the termination or expiration of this Agreement.

11. Contractor's Records. Contractor shall maintain accurate accounting records and other written documentation pertaining to the costs incurred relating to this Agreement for examination and audit by the City, State, or federal government, as applicable, during the period of this Agreement, and for a period of at least five years from the date of the final City payment for Contractor's services, or date of the termination of this Agreement, whichever is later . If Contractor engages a subcontractor to perform work related to this Agreement with a cost of $10,000 or more over a 12 month period, such subcontract shall contain these same requirements. This provision shall survive the termination of this Agreement.

12. California Public Records Act. City is a public agency subject to the disclosure requirements of the California Public Records Act (“CPRA”). If Contractor’s proprietary information is contained in documents or information submitted to City, and Contractor claims that such information falls within one or more CPRA exemptions, Contractor must clearly mark such information “Confidential and Proprietary,” and identify the specific lines containing the information. In the event of a request for such information, City will make best efforts to provide notice to Contractor prior to such disclosure. If Contractor contends that any documents are exempt from the CPRA and wishes to prevent disclosure, it is required to obtain a protective order, injunctive relief, or other appropriate remedy from a court of law in Santa Cruz County before the City is required to respond to the CPRA request. If Contractor fails to obtain such remedy within the time the City is required to respond to the CPRA request, City may disclose the requested information without any liability to Contractor. Contractor further agrees that it shall defend, indemnify and hold City harmless against any claim, action or litigation (including but not limited to all judgments, costs, and attorney’s fees) that may result from denial by City of a CPRA request for information arising from any representation, or any action (or inaction), by the Contractor.

13. Compliance with Laws. All activities of Contractor, its employees, subcontractors and/or agents will be carried out in compliance with all applicable federal, state, and local laws and regulations.

14. Licensure. Contractor warrants that Contractor, its subcontractors and/or agents (if any) has/have complied with any and all federal, state, and local licensing requirements and agrees to provide proof of a current City of Santa Cruz Business Tax Certificate if:
 Contractor, its subcontractor(s) and agent(s) or its business is/are located in the City of Santa Cruz;  Will perform actual work in the City of Santa Cruz for 6 or more days annually; or  Will use company vehicles to deliver within the City of Santa Cruz for 6 or more days annually.

For additional information and licensing requirements, view the City’s Business Licenses and Permits webpage at: https://www.cityofsantacruz.com/government/city-departments/finance/licenses-fees-and-taxes/businesslicenses-and-permits or call the Revenue and Taxation division at 831/420-5070.

15. Living Wage. Every contract for services to the City for $10,000 or more, is subject to City of Santa Cruz Living Wage Ordinance number 2000-25. If applicable, Contractor agrees to comply with the requirements of the Living Wage ordinance as provided in Santa Cruz Municipal Code Chapter 5.10.

16. Prevailing Wages for Public Work. To the extent that the work or services to be performed under this Agreement may be considered a “public work” (construction, alteration, demolition, or repair work) pursuant and subject to Labor Code section 1720 et seq., Contractor (and any subcontractor performing the work or services) shall conform to any and all prevailing wage requirements applicable to such work/and or services under this Agreement. Contractor (and any subcontractor) shall adhere to the prevailing wage determinations made by the Director of Industrial Relations (DIR) pursuant to California Labor Code Part 7, Chapter 1, Article 2, applicable to the work, if any. All workers employed in the execution of a public works contract (as such term

13.10 City of Santa Cruz Professional Services Agreement for Safe Parking Program June, 2022 Page 8
is defined California Labor Code section 1720 et seq. and section 1782(d)(1)) must be paid not less than the specified prevailing wage rates for the type of work performed. (CA Labor Code sections 1720, 1774 and 1782.) To the extent applicable to the scope of work and services under this Agreement, Contractor agrees to be bound by the state prevailing wage requirements, including, but not limited to, the following:
a. If a worker is paid less than the applicable prevailing wage rate owed for a calendar day (or any portion thereof), Contractor shall pay the worker the difference between the prevailing wage rate and the amount actually paid for each calendar day (or portion thereof) for which the worker(s) was paid less than the prevailing wage rate, as specified in Labor Code section 1775; b. Contractor shall maintain and make available payroll and worker records in accordance with Labor Code sections 1776 and 1812;
c. If Contractor employs (and/or is legally required to employ) apprentices in performing the work and/or services under this Agreement, Contractor shall ensure compliance with Labor Code section 1777.5; d. Contractor is aware of the limitations imposed on overtime work by Labor Code sections 1810 et seq. and shall be responsible for any penalties levied in accordance with Labor Code section 1813 for failing to pay required overtime wages;
e. Contractor shall post a copy of the applicable wage rates at each jobsite at a location readily available to its workers.
f. Any failure of Contractor and/or its subcontractor to comply with the above requirements relating to a public work project shall constitute a breach of this Agreement that excuses the City’s performance of this Agreement at the City’s sole and absolute option and shall be at the sole risk of Contractor. Contractor on behalf of itself and any subcontractor, agree to indemnify, defend and hold harmless the City and its officials, officers, employees, and agents from and against any and all claims, liabilities, losses, costs, expenses, attorney’s fees, damages, expenses, fines, financial consequences, interest, and penalties, of any kind or nature, arising from or relating to any failure (or alleged failure) of the Contractor and any subcontractor to pay prevailing wages or to otherwise comply with the requirements of prevailing wage law relating to a public work.
g. Contractor acknowledges that it and/or any sub-contractor may not engage in the performance of any contract for public work unless currently registered with the DIR and qualified to perform public work pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)].

17. Storm Water Requirements. To the extent applicable to the Scope of Work under this Agreement, Contractor, Contractor’s employees, subcontractors, and agents are required to abide by the applicable City of Santa Cruz Storm Water Best Management Practices (BMPs) for the duration of the work. The City’s mandatory Storm Water BMPs, which are listed according to the type of work, operations, or business, are located on the City website at: https://www.cityofsantacruz.com/government/city-departments/public-works/stormwater/bestmanagement-practices

18. Dispute Resolution. The Parties agree to attempt in good faith to resolve through negotiation any dispute, claim or controversy arising out of or relating to this Agreement. Either party may initiate negotiations by providing written notice in letter form to the other party, setting forth the subject of the dispute and the relief requested.

Promptly upon such notification, the Parties shall meet at a mutually agreeable time and place in order to exchange relevant information and perspective, and to attempt to resolve the dispute. In the event that no resolution is achieved, and if, but only if, the parties mutually agree, then prior to pursuing formal legal action,

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the parties shall make a good faith effort to resolve the dispute by non-binding mediation or negotiations between representatives with decision-making power, who, to the extent possible, shall not have had substantive involvement in the matters of the dispute. To the extent that the dispute involves or relates to a public works project, the Parties agree to attempt to resolve the dispute by complying with the claims process as set forth in Public Contract Code section 9204(e), but without waiving the requirements of the California Tort Claims Act, Gov’t Code section 800 et seq. unless otherwise agreed to by the Parties.

19. Force Majeure. Neither party hereto shall be considered in default in the performance of its obligation hereunder to the extent that the performance of any such obligation is prevented or delayed by an act of God, natural disaster, pandemic, acts of terrorism, war, or other peril, which is beyond the reasonable control of the affected party and without the negligence of the respective Parties. Each party hereto shall give notice promptly to the other of the nature and extent of any Force Majeure claimed to delay, hinder or prevent performance of the services under this Agreement. Each Party will, however, make all reasonable efforts to remove or eliminate such a cause of delay or default and will, upon the cessation of the cause, diligently pursue performance of its obligations in this Agreement. In the event either party is prevented or delayed in the performance of its respective obligation by reason of such Force Majeure, the only remedy is that there may be an equitable adjustment of the schedule based on City’s sole discretion.

20. Complete Agreement. This Agreement, along with any attachments, is the full and complete integration of the Parties’ agreement with respect to the matters addressed herein, and that this Agreement supersedes any previous written or oral agreements between the Parties with respect to the matters addressed herein. Unless otherwise stated, to the extent there is any conflict between this Agreement and any other agreement (written or oral), the terms of this Agreement shall control.

21. Severability. The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the other provisions unenforceable, invalid or illegal.

22. Waiver. Waiver by any party of any portion of this Agreement shall not constitute a waiver of the same or any other portion hereof.

23. Governing Law. This Agreement shall be governed by and interpreted in accordance with California law.

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

25. MacBride Principles/Peace Charter. City of Santa Cruz Resolution NS-19,378 (7/24/90) encourages all companies doing business in Northern Ireland to abide by the MacBride Principles and Peace Charter.

26. Notices. If either party shall desire or is required to give notice to the other such notice shall be given in writing, via email and concurrently delivered by overnight Federal Express [or priority U.S. Mail], addressed to recipient as follows:

To CITY:

City Manager’s Office
Lisa Murphy, Deputy City Manager
809 Center St., Rm 207
Santa Cruz, CA 95060
[email protected]
831-420-5042
To CONTRACTOR:

The Association of Faith Communities (AFC)
Judy Hutchison
532 Center Street
Santa Cruz, CA 95060
[email protected]
831-226-4788

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Changes to the above information shall be given to the other party in writing ten (10) business days before the change is effective.

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

28. Warranty of Authority. The signatories to this Agreement warrant and represent that each is authorized to execute this Agreement and that their respective signatures serve to legally obligate their respective representatives, agents, successors and assigns to comply with the provisions of this Agreement. [SIGNATURES ON FOLLOWING PAGE]

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Approved As To Form:

By: ______________________________ Date: __________________ Office of the City Attorney

CITY OF SANTA CRUZ
By: ______________________________ Date: __________________ Matthew Huffaker
City Manager

THE ASSOCIATION OF FAITH COMMUNITIES
By: ______________________________ Date: __________________ Printed: ___________________________ Title: __________________

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EXHIBIT A: SCOPE OF WORK

SCOPE OF WORK OVERVIEW
The City of Santa Cruz (CITY) is entering into a contract with The Association of Faith Communities (AFC), A California Corporation (CONTRACTOR), to operate a Safe Parking Program for unsheltered individuals living in their vehicles.

CONTRACTOR shall operate a 24-hour emergency safe parking program, 7 days per week, located at 301 Armory Road in Santa Cruz. The safe parking program will be sited at the Armory north parking lot (within the fenced area) for up to 25 oversized vehicles. Services will include safe and secure parking spots; access to bathroom and shower amenities; and case management aimed at permanent housing exit-focused linkages and referral services.

PERFORMANCE MEASUREMENTS
What Services
Will Be Provided? How Well Will Services Be Provided? What Change Will Result? A minimum of 20
unduplicated
individuals will
receive program
services per
day/night during
the contract period.
100% of enrolled individuals shall have
a completed assessment and entry into
HMIS within 14 days of program
enrollment.

Data Collection Tools: Monthly client
reports & Homelessness Management
Information System (HMIS)
20% of program participants will exit
homelessness to a permanent housing destination
within 12 months.
60% of program participants will have become
housing ready within 12 months.
70% of program participants will have a
documented instance of overcoming a housing
barrier within 4 months of entering the program.

Data Collection Tool: HMIS

SERVICE PRINCIPLES
CONTRACTOR shall ensure the program adheres to Housing First, Trauma Informed Care, and Harm Reduction principles:

HOUSING FIRST
 CONTRACTOR shall conduct all emergency sheltering activities in adherence with the principals of Housing First.
 There are no requirements for sobriety, income, adherence to substance use treatment, or mental health treatment in order to receive shelter services. The focus is on shelter as a step towards permanent housing. CONTRACTOR shall work to ensure addiction and mental health issues do not become barriers to participation in the program, and that referrals are given to recovery providers for those that wish to seek help in confronting their behavioral health challenges.

TRAUMA INFORMED CARE (TIC)

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 TIC in a shelter is important because individuals currently experiencing homelessness are more likely to have experienced traumatic incidents in their lifetime than people in the general population. CONTRACTOR response to behavioral incidents shall be guided by TIC principles and practice.

HARM REDUCTION
 CONTRACTOR shall not mandate abstinence from drugs and alcohol or require treatment for mental health symptoms or substance use as a requirement for program eligibility. Responses to participant situations focus on behaviors related to the health and safety of the individual, other participants and staff in the shelter, and the intent is to keep someone in shelter safely while also ensuring the safety of staff and other shelter participants. Exits due to behavior are reserved for only the most severe incidents or when there are multiple incidents that continue to jeopardize the health and safety of participants and staff.
 All harm reduction principles contained in this AGREEMENT are subject to the following:

CONTRACTOR shall not permit any alcoholic beverage and/or illicit substances to be offered for sale, stored, given away or otherwise disposed or consumed on any public areas of site, nor shall CONTRACTOR permit any use of tobacco products on any part of the site within twenty (20) feet of entrances, doorways or opening windows, and then only in a controlled area under CONTRACTOR supervision.

CITY RESPONSIBILITIES

1. CITY shall be responsible for the requisite infrastructure at the Armory north parking lot site for CONTRACTOR to provide the services described in this scope of work including sanitation and hygiene facilities.

2. CITY will provide maintenance of the site/structures as well as cover utility costs and responsibilities for the site, including refuse service.

CONTRACTOR RESPONSIBILITIES

1. CONTRACTOR shall:
a. Ensure the safe parking program operates on a 24 hours/day, 7 days/week basis. b. Provide all shelter participants with case management services including housing navigation and connection to County services
c. Not allow participants to congregate in a group or be outside between 10:00 pm. and 6:00 am. d. Provide each participant a defined space and minimize personal belongings to allow for ingress and egress of guests and staff.

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3. CONTRACTOR shall ensure that all participants with physical limitations receive the personal assistance needed for personal care needs, such as cleaning, bathing, moving into or out of wheelchairs, or changing clothes, as well as getting into/out of transportation vehicles.

4. CONTRACTOR shall ensure that all shelter participants are able to safely access and use all amenities at or brought to the site, such as portable toilets, hand washing stations and showers.

5. CONTRACTOR shall ensure that its safe parking program has Policies and Procedures that at a minimum include:
a. Shelter layout that meets all applicable government zoning and building requirements b. Shelter requirements
c. Safety procedures
d. Parking policies
e. Neighborhood interface procedures
f. Shower policies
g. Janitorial/storage expectations
h. Armory requirements to be met by Contractor
i. Written plan for responding to first aid and health emergencies including basic first aid supplies accessible on site
j. Written evacuation plan for emergencies, i.e. Fire, Earthquake. i. Organizational Chart depicting CONTRACTOR reporting structure and contact information for CONTRACTOR management personnel to be called for different types of problems, i.e. facilities, client behavior, emergency, etc. ii. Shelter staff position descriptions, responsibilities and expectations iii. Information on required Service Principles as indicated in this contract iv. Information on connections to mainstream services, referral and priority eligibility

6. CONTRACTOR shall ensure its staff can readily access Shelter Program Policies and Procedures for consistency and clarity in conducting contracted services.

7. CONTRACTOR shall maintain a healthy environment.

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a. CONTRACTOR shall refer any participant with a suspected or known infectious disease to the Homeless Persons Health Project (866-731-HPHP).
b. CONTRACTOR shall immediately notify City of any incidents that resulted in a call to 911, including the nature of the call and the outcome of the incident by contacting Larry Imwalle [email protected] or (831) 420-5405.

8. CONTRACTOR shall utilize identified systems for data collection and reporting, as well as participant and program assessment and evaluation. Systems shall be approved by the Manager, and reports from the system shall be provided to the CITY upon request.

9. CONTRACTOR shall take necessary steps to ensure participants do not create or their conduct constitute a nuisance in the immediate vicinity of the site.

10. CONTRACTOR shall ensure that pets of participants occupying the site are prohibited inside the Armory, except for those meeting the definition of service animal, defined under Title II and II of the ADA as limited to dogs individually trained to do work or perform tasks for the benefit of an individual with a disability, including, physical, sensory, psychiatric, intellectual, or other mental disability.

11. CONTRACTOR shall not drive any nails, tacks, pins, or other objects into the walls, ceilings, partitions, windows, woodwork, or other part of buildings or structures on site, nor change in any manner or move any fixture on site or make any alterations or changes to site without prior written consent of the CITY.

12. Upon expiration or termination of this AGREEMENT, CONTRACTOR shall remove all decorations, display, signs or equipment from the site.

COVID-19 TEMPORARY EMERGENCY SHELTER IN PLACE PROVISIONS

1. During the duration of the COVID-19 public health emergency, CONTRACTOR shall maintain a healthy, virus free environment by ensuring all shelter participants and staff comply with County COVID-19 prevention and containment protocols and shall follow County protocols if any positive cases of COVID-19 among participants or staff occur. CONTRACTOR shall comply with specific health orders for shelter operations issued by federal, state, or county public health authorities.

2. CONTRACTOR shall ensure that staff have access to the Santa Cruz County COVID-19 Shelter Guidance and that staff receive appropriately skilled and knowledgeable regarding COVID-19 health safety protocols and have adequate access to personal protective equipment to ensure the health and safety of staff and participants.

3. During the duration of the COVID-19 public health emergency CONTRACTOR shall:
a. Provide clear COVID-19 information to shelter participants, related to restrictions and limitations required for safe sheltering during the COVID-19 SIP response period.

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b. Enforce participant compliance with restrictions and limitations required of them for participating in the program.
c. Offers the following to shelter participants during COVID-19 SIP daytime shelter hours, including:
i. Access to computer tablets so that participants may contact service providers and explore housing opportunities with the assistance of daytime shelter staff when assistance is needed.
ii. Medical screening to check for COVID-19 symptoms, per the County of Santa Cruz COVID-19 prevention and containment protocols
 If a need to quarantine is determined as a result of symptomatic medical screening or exposure to COVID-19 per County COVID-19 prevention and containment protocols, the symptomatic or exposed individual shall be isolated or quarantined on site until the individual can be transported to a separate medical isolation or quarantine site. d. Ensures necessary transportation is provided for essential trips such as medical/behavioral health appointments and laundry, during COVID-19 SIP daytime shelter hours

PERSONNEL & SITE SUPERVISION

1. CONTRACTOR shall recruit, hire and maintain minimum staffing levels as specified in “Exhibit B – Budget” at a skill set sufficient to perform all the duties required to work with referred or identify potentially eligible participants and ensure the following are accomplished:
 Assessment of all safe parking applicants
 Safe parking participants’ entrance to and exit from the program happen in a coordinated manner  Appropriate oversight of safe parking operations to ensure the health and safety of participants and staff

2. CONTRACTOR shall ensure all paid and volunteer staff are instructed on CONTRACTOR’s program policies and procedures, and that a policy and procedures manual is available on site.

CONNECTION TO ADDITIONAL SERVICES

1. CONTRACTOR shall ensure all participants receive a SMART PATH assessment, and that information on participants is entered into HMIS.

2. CONTRACTOR shall refer and link participants with appropriate community-based resources and programs to meet needs identified during the intake and assessment process. CONTRACTOR shall work to ensure participants attain resources to which they were referred by program staff.

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3. CONTRACTOR shall ensure that participants receive transportation linkage and referral assistance when necessary to obtain appropriate community resources and support.  To assist participants with disabilities to access transportation assistance, CONTRACTOR shall contact The Lift Line (https://communitybridges.org/liftline/) for disabled transportation assistance services or a similar free transportation service.

TRANSPORTATION
A transportation shuttle already exists at the program site. The shuttle program is currently operated by the Salvation Army, funded by the CITY. The CITY will work with the Salvation Army to scale up the shuttle program as needed to accommodate the safe parking program participants. Should the Salvation Army no longer operate a program at this site, the CITY will work with the CONTRACTOR to determine appropriate next steps to continue the operation of the shuttle.

SYSTEMS FOR DATA COLLECTION
CONTRACTOR shall utilize the following approved systems for data collection and reporting, as well as participant and program assessment and evaluation.

HOMELESS MANAGEMENT INFORMATION SYSTEM (HMIS)

1. CONTRACTOR shall utilize HMIS as the agreed upon collaborative system for program and participant data collection and reporting.

2. CONTRACTOR shall complete HMIS data entry for each participant that includes information sharing authorization, new client entry if needed, program intake, SMART PATH assessment, participant update information, participant referral information, and participant exit information.

REFERRALS, ELIGIBILITY AND PRIORITY CRITERIA

BASIC REFERRAL CRITERIA

1. CONTRACTOR shall accept referrals of participants from the CITY. CONTRACTOR shall prioritize referrals from the CITY, but may also accept referrals from the SMART PATH Coordinated Entry System (CES), from County agencies, and from local non-profits in the event there are available spaces

2. CONTRACTOR shall ensure that all participants are provided information about the Homeward Bound program and offered Homeward Bound as a diversion option at program intake.

BASIC ELIGIBILITY CRITERIA FOR SHELTER SERVICES
The basic eligibility for entry into the program, as established by CITY, is that participants are living in their vehicles while experiencing homelessness (literally homeless, unsheltered other than vehicle).

REPORTING AND COORDINATION REQUIREMENTS

1. CONTRACTOR shall immediately notify CITY of any significant issues with program participants; time is of the essence. Significant issues include but are not limited to disciplinary or safety issues that impact participants’ program stay.

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2. Training: CONTRACTOR shall ensure that personnel listed under “Exhibit B – Budget” are appropriately trained in Housing First, HMIS, SMART PATH CES, Trauma Informed Care, Harm Reduction, to facilitate their ability to utilize evidence-based Housing First and other best practices.

INVOICES

1. CONTRACTOR shall provide monthly invoices, using a template provided by the CITY, to document services costs based on the budget detailed in this scope of work and the attached Exhibit B - Budget document.

2. Monthly invoices shall be submitted via email to CITY authorized staff (Megan Bunch [email protected]) within 10 calendar days following the end of the month in which the services were provided.

BACK UP DOCUMENTATION AND REPORTING

1. CONTRACTOR shall provide required backup documentation on monthly contracted activities along with monthly invoices when submitted.

2. CONTRACTOR shall utilize the HMIS to enter, track and measure data on each participating individual, based on the Performance Measurement outcomes stated in this scope of work.

3. CONTRACTOR shall utilize monthly reports and other reports as needed, to enter, track and measure data not already captured within HMIS, based on the Performance Measurement outcomes stated in this scope of work.

4. CONTRACTOR is responsible for providing monthly reports, by the 15th of the subsequent month, to include Performance Measurement outcomes and:
 Census of participants (number of new and returning, and days of stay)  Participant demographics (age, gender, race & ethnicity)  Location of last permanent housing (City, zip code)
 Identified needs
 Space capacity/utilization
 Staffing capacity
 Number of participants exiting the program and reason for exiting  County services (and non-profit organization) that have provided services onsite  List of incident reports (if any)

SCOPE OF WORK OR BUDGET MODIFICATION

1. Changes to the budget, including transfers between budget categories within a specific fiscal year may be made only through a budget modification, which must be requested to the CITY in writing by the CONTRACTOR in advance of the modification, providing the transfer is less than 30% (cumulative), is within a single budget suffix of the approved budget, and is within the total original fiscal year budget.

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2. Budget modification requests must be received no later than May 15th of the fiscal year in which the budget modification is applicable and must have prior approval by CITY authorized staff to be approved.

ADDITIONAL TERMS AND CONDITIONS

1. Corrective Action: CONTRACTOR shall perform the agreed upon services detailed in this scope of work, submit timely invoices and reports, and work to meet agreed upon outcomes as detailed herein. CONTRACTOR failure to provide any of these agreed upon terms may result in a Corrective Action request. Corrective Action requests will specify ongoing problems in the performance of these contract terms and a deadline by which to rectify problems and will also require the CONTRACTOR to submit a brief Corrective Action Plan detailing how ongoing problems will be resolved. Failure to adequately address steps outlined in the Corrective Action Plan may ·result in the withholding of payment on invoices and/or termination of the contract.

2. Federal Funding: CONTRACTOR certifies they are not suspended, debarred or proposed for debarment from receiving federal funds; declared ineligible to receive federal funds; or voluntarily excluded from participation in covered transactions by any federal department or agency.

3. Uninterrupted Provision of Services: In order to maintain uninterrupted services under this agreement, the CONTRACTOR shall ensure that the budgeted staffing for the contracted services are maintained, which includes providing coverage for staff vacancies or leaves of more than two weeks. Additionally, CONTRACTOR program and direct service staff must be replaced within 90 days of the start of staffing vacancies.

4. Notification of Personnel Changes: In the event of key personnel changes or leaves of more than two weeks for positions funded by this agreement (e.g., program manager or assistant program manager), the CONTRACTOR shall report changes to the CITY within 10 business days of occurrence.

5. Instruction: The CONTRACTOR shall provide this Scope of Work to all of its employees who conduct activities under this contract, so that CONTRACTOR staff clearly understands expected activities per this agreement. The CONTRACTOR will train any new employees who work in any capacities related to the provisions of this contract, in the requirements of this contract.

6. Publicity and Outreach: The CONTRACTOR agrees to obtain CITY approval prior to use for all contracted program marketing materials, including but not limited to flyers, brochures, written success stories, social media posts, and website information. The CONTRACTOR shall ensure that the CITY logo and name are included on all contracted program marketing materials and will obtain these directly from CITY authorized staff for approved uses.

7. Media Inquiries: Should the CONTRACTOR receive press/media inquiries regarding the services provided through this contract, the CONTRACTOR shall notify the CITY’s Public Information Officer (PIO) of the inquiry, at [email protected] or at 831-420-5016.

Press/media may also be referred directly to the PIO for additional information.

13.22 City of Santa Cruz Professional Services Agreement for Safe Parking Program June, 2022 Page 20

13.23 City of Santa Cruz Professional Services Agreement for Safe Parking Program June, 2022 Page 21
EXHIBIT B: EXHIBIT B: FEE SCHEDULE
The total amount payable under this agreement shall not exceed $392,348.00.

Program participation will vary due to a number of factors. This variation in Program participation will impact the costs associated with Program operation. The approved Program budget (Exhibit D) is based on maximum participation of 22 vehicles. Should participation be lower, the Program costs, and therefore, Contractor invoices, will also be lower. It is therefore necessary that the Contractor provide accurate monthly reports and invoice monthly based on the associated costs incurred.

Contractor will invoice the City on or before the 15th of each month. Monthly invoices should include the following information and costs:
 Average number of Program participants for the invoicing month  Payroll costs with staff levels/hours for the invoicing month  Supply costs with list of supplies purchased to support the Program during the invoicing month

13.24 City of Santa Cruz Professional Services Agreement for Safe Parking Program June, 2022 Page 22
EXHIBIT C: INSURANCE REQUIREMENTS
A. CERTIFICATE REQUIREMENTS
The City will be issued a Certificate of Insurance (a Memorandum of Understanding will not be accepted) with the following minimum requirements:
 Certificate(s) will show current policy number(s) and effective dates,  Coverage and policy limits will meet, or exceed, requirements below,  The Certificate Holder will be City of Santa Cruz, Risk Management, 333 Front Street., Suite 200, Santa Cruz, CA 95060,
 Certificate will be signed by an authorized representative,  An endorsement will be provided to show the City, its officers, officials, employees, agents, and volunteers as additional insureds, and
 Coverages must be maintained during the term of the Agreement with the City, Unless a longer duration is required.

B. MINIMUM SCOPE AND LIMITS OF INSURANCE
Contractor acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. If Contractor maintains broader insurance coverage and/or higher limits than the minimums shown below, the City of Santa Cruz requires and shall be entitled to the broader insurance coverage and/or higher limits maintained by Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Santa Cruz. Coverage will be at least as broad as:
 COMMERCIAL GENERAL LIABILITY (CGL): $2,000,000 PER OCCURRENCE; $2,000,000 AGGREGATE Proof of coverage for $2 Million per occurrence including products and completed operations, property damage, bodily injury, personal and advertising injury will be provided on Insurance Services Office (ISO) Form CG 00 01 covering CGL. If a general aggregate limit applies, either the general aggregate limit will apply separately to this project/location or the general aggregate limit will be at least twice the required occurrence limit.
 PROFESSIONAL LIABILITY (ERRORS AND OMISSIONS): $2,000,000 PER OCCURRENCE OR CLAIM, $2,000,000 AGGREGATE.

Contractor will maintain insurance appropriate to Contractor’s profession; with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after date of completion of the services under this Agreement. If coverage is canceled or non-renewed and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date or start of work date, Contractor must purchase “extended reporting” coverage for a minimum of five (5) years after completion of contract work.  AUTOMOBILE LIABILITY:

Proof of coverage for $1,000,000 provided on ISO Form Number CA 00 01 covering any auto (Code 1), or if Contractor has no owned autos, hired, (Code 8) and non-owned autos (Code 9), per accident for bodily injury and property damage.
 WORKERS’ COMPENSATION AS REQUIRED BY THE STATE OF CALIFORNIA, WITH STATUTORY LIMITS, AND EMPLOYER’S LIABILITY INSURANCE: $1,000,000 per accident for bodily injury or disease.

The Worker’s Compensation policy must be endorsed with a waiver of subrogation in favor of the City for all work performed by the Contractor and its employees.

13.25 City of Santa Cruz Professional Services Agreement for Safe Parking Program June, 2022 Page 23

OTHER INSURANCE PROVISIONS
The insurance policies are to comply with the following provisions:
 ADDITIONAL INSURED STATUS
The City, its officers, officials, employees, agents, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of Contractor including materials, parts, or equipment furnished in connection with such work or operations.

General liability coverage will be provided in the form of an endorsement to Contractor’s insurance at least as broad as ISO Form CG 20 10 11 85, or if not available, through the addition of both CG 20 10 CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 (if a later edition is used).  PRIMARY COVERAGE
For any claims related to this Agreement, Contractor’s insurance coverage will be primary insurance as respects the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents, or volunteers will be excess of Contractor’s insurance and will not contribute with it.
 NOTICE OF CANCELLATION
Each insurance policy required above shall state that the coverage shall not be canceled, except with notice to the City.
 WAIVER OF SUBROGATION
Contractor hereby grants to the City a waiver of any right to subrogation, except as otherwise not applicable, which any insurer of said Contractor may acquire against the City by virtue of the payment of any loss, including attorney’s fees under such insurance. Contractor agrees to obtain any endorsement that may be necessary to effectuate this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.  EXCESS LIABILITY/UMBRELLA INSURANCE POLICIES
The excess/liability policies will provide similar coverage as the primary CGL policy with no new exclusions - Excess liability insurance must follow form the terms, conditions, definitions, and exclusions of the underlying CGL insurance. The excess/umbrella policy must also be written on a primary and noncontributory basis for an additional insured, and that it will apply before any other insurance that is available to such additional insured which covers that person or organization as a named insured, and we will not share with that other insurance.

The policy regarding Limits of Insurance regarding Aggregates must provide that the aggregate limits if applicable shall apply in the same manner as the aggregate limits shown in the Schedule of the Underlying Insurance.
 SELF-INSURED RETENTIONS
Self-insured retentions must be declared to and approved by the City. City may require Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related expenses.

The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.
 ACCEPTABILITY OF INSURERS
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A: VII, unless otherwise acceptable to the City.
 CLAIMS MADE POLICIES
If any of the required policies provide coverage on a claims-made basis:

13.26 City of Santa Cruz Professional Services Agreement for Safe Parking Program June, 2022 Page 24

1. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.

2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Contractor must purchase “extended reporting” coverage for a minimum of five (5) years after completion of contract work.  VERIFICATION OF COVERAGE
Contractor will furnish the City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL Policy listing all policy endorsements to be approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning will not waive the Contractor’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

C. SUBCONTRACTORS
Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that City is an additional insured on insurance required from subcontractors.

D. SPECIAL RISKS/CIRCUMSTANCES
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances and provide notice to Contractor.

13.27 City of Santa Cruz Professional Services Agreement for Safe Parking Program June, 2022 Page 25
EXHIBIT D: APPROVED PROGRAM BUDGET
FTE Per hour Month Year
Case Manager 1.00 25 4,333.33 52,000.00
Site Organizer 1.00 35 6,066.67 72,800.00
Program Manager/ED 1.00 35 6,066.67 72,800.00
Intern 0.625 20 2,166.67 26,000.00
Subtotal Staffing 18,633.33 223,600.00
Benefits & Payroll 30% 5,590.00 67,080.00
Total Salaries & Benefits 24,223.33 290,680.00
Supplies & first aid kits 650.00 7,800.00
Towing 600.00 7,200.00
Computers, Tablets &
Accessories 583.33 7,000.00
Training 333.33 4,000.00
Insurance 1,666.67 20,000.00
Facilities Total 3,833.33 46,000.00
Discretionary Fund 1,666.67 20,000.00
Subtotal 29,723.33 356,680.00
Agency Fee (10%) 2,972.33 35,668.00
Grand Total 32,695.67 392,348.00
Per active client 1,634.78 19,617.40
Per active client per day 53.75
Active Clients 20

13.28 City Council

AGENDA REPORT
DATE: 06/03/2022
AGENDA OF: 06/14/2022
DEPARTMENT: Economic Development
SUBJECT: Award Contract for Graffiti Abatement Services (ED) RECOMMENDATION: Motion to accept the bid from Graffiti Protective Coatings, Inc. for graffiti abatement services in the amount of $125,000 and authorize the City Manager to execute an agreement, in a form approved by the City Attorney, with Graffiti Protective Coatings, Inc.

BACKGROUND: In 2003 the Redevelopment Agency established a graffiti abatement program using volunteers and a private contractor to remove graffiti. Over the years the number of reports for graffiti removal increased and it became more efficient to contract out for graffiti abatement services. Since 2006 Parks and Recreation, Public Works, Economic Development and the Water Department have contributed funds for graffiti removal services and Economic Development has solicited bids for the graffiti abatement services contract. The City issued an Invitation for Bids on April 19, 2022.

DISCUSSION: Graffiti Protective Coatings, Inc. (GPC) has been the City’s abatement contractor for over ten years and has provided excellent graffiti abatement services. They have responded to work orders in a timely fashion. From January 2022 to March 2022, GPC has responsed to 1093 tags.

GPC not only removes graffiti but also restores surfaces to their orignial condition. When paint is used for removal, they provide a 99% paint color match. In 2019, GPC worked with City staff to integrate the City’s Community Request Service Portal (CRSP) with their abatement tracking system. GPC invested time and resources to ensure that the reporting and tracking systems were fully integrated. This system allows full access and automatic data transfer to log work orders by address, description, property type, surface, removal method, size, moniker and pictures, and also allows the data to easily be shared and tracked. This improved reporting system integration has led to greater program efficiency.

By the close of the competitive bid period on May 5, 2022, only one submission has been received. The proposal was from GPC. GPC had not raised their charge since 2018. For 2023, their proposal was for an increase of 32%. In further negotiation with staff, GPC agreed to lower this bid to a 10% increase, in exchange for language in the contract for optional annual extensions with a price increase based on an agreed Consumer Price Index (CPI) with a cap of 7% increase in any year. The contract also provides for two annual renewal options if agreed upon by the parties.

14.1 FISCAL IMPACT: Parks and Recreation, Public Works, Economic Development and Water Departments have included funds totaling $125,000 for this service in the FY 2023 budget.

Prepared By:

Kathryn Mintz
Development Manager
Submitted By:

Bonnie Lipscomb
Director of Economic
Development
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

14.2 City Council

AGENDA REPORT
DATE: 06/03/2022
AGENDA OF: 06/14/2022
DEPARTMENT: Economic Development
SUBJECT: Equitable Community Revitalization Grant Program – Authorization to Apply for and Accept Grant Awards for the Pacific Station South, Jessie Street Marsh, and Lower Main Meadow, Pogonip Open Space Projects (ED)
RECOMMENDATION: Resolution authorizing and directing staff to apply for and accept grant funds for three separate applications to the California Department of Toxic Substances Control (DTSC) for the Equitable Community Revitalization Grant (ECRG) Program to assist with soils investigation and/or hazardous materials remediation for each of the Pacific Station South, Jessie Street Marsh, and the Lower Main Meadow, Pogonip Open Space project sites. (Attachments 1-3), and authorizing the City Manager to execute any agreements or documents necessary for acceptance and implementation of the grant(s).

BACKGROUND: In 2021, Gov. Gavin Newsom signed legislation known as the Cleanup In Vulnerable Communities Initiative (CVCI), allocating $500 million to expedite the cleanup and beneficial reuse of properties contaminated by hazardous substances. Under the CVCI, priority is given to properties in historically vulnerable and disadvantaged communities. The Department of Toxic Substances Control (DTSC) Office of Brownfields will provide more than $250 million in grants from the CVCI through the California Equitable Communities Revitalization Grant (ECRG) to incentivize cleanup and investment in disadvantaged areas.

ECRG prioritizes state investment in projects that reduce environmental threats to vulnerable and disadvantaged communities through projects identifying or addressing contamination from hazardous materials. Funds are available on a competitive basis to local communities, nonprofits, special districts, and tribes. Projects eligible for funding include:
1) Community-Wide Assessments (CWA) to obtain information about environmental conditions at four or more sites within a study area.
2) Site-specific Environmental Investigation and/or cleanup planning at a specific site that is slated for reuse.
3) Site-specific Environmental Cleanups. This includes planning, implementation and reporting costs for the environmental cleanup, pilot tests and sampling/analysis to design the cleanup, public engagement and cleanup-related California Environmental Quality Act (CEQA) activities.

To be considered for funding, projects must meet one of the following criteria:
(1) CalEnvironscreen 3.0 (CES) score greater than 75%

15.1 (2) Provide a direct benefit to Native American Tribes; or, (3) Demonstrate a site reuse benefit to under-served populations.

CES 3.0 is a California Office of Environmental Health Hazard Assessment online mapping tool which provides a percentile ranking for every census tract in the state, reflecting the negative social and environmental factors impacting that census tract in relation to every other census tract population in California. The City’s projects did not meet the target criteria for numbers 1 and 2. Nevertheless, City staff conferred with DTSC and the projects are eligible for funding because they provide exceptional public benefit to disadvantaged communities, and, depending on the types of projects received through the competitive process, have the potential to score favorably. However, it should be noted that the scoring criteria heavily weights criteria 1 and 2.

ED and P&R each submitted applications to ECRG and collaborated on the process, but due to short notice and current capacity limitations neither department was able to seek Council authorization prior to the submittal deadline of April 4, 2022. Pursuant to Administrative Procedure Order I-17, staff is now seeking authorization for these applications and for acceptance of grant funds, should they be awarded. No local match is required for this grant program, but existing project funding leveraged for redevelopment is considered in the scoring.

The project sites are discussed in more detail in the following section. In addition, the City’s development partner First Communities Housing, applied to ECRG independently for Pacific Station North, but received review and support from ED staff for that application.

DISCUSSION: Santa Cruz has often struggled to secure brownfield cleanup funding due to low scoring on CES. ECRG however, is tailored to also reward projects which significantly benefit tribes and low-income or disadvantaged communities; provided those projects can demonstrate project readiness, have a plan to reuse the site, and a clear public benefit.

Santa Cruz has numerous City owned sites with environmental contamination in need of remediation. Many of these sites, like Skypark and Pacific Station, have long been planned for sale or redevelopment. Yet, the uncertainty and cost of addressing on-site contamination remains a significant hurdle to future uses. Discoveries of contamination at Jessie Street Marsh and Pogonip Open Space also necessitate environmental assessment, planning, and cleanup work.

Given these needs and the complexity of remediation projects, staff often collaborates on cleanup efforts. At the Pogonip Lower Main Meadow for instance, ED secured and P&R implemented a Targeted Site Investigation (TSI) grant from DTSC, which has progressed environmental assessment of the site to a stage where a detailed cleanup plan and permitting are now needed.

After review of eligible contaminated sites currently planned for reuse, as well as discussions with DTSC and their consultant, City staff applied for ECRG grant funds at the three sites outlined below. The ECRG grant program is beneficial to these projects for several reasons. For one, the total funding amount is greater than other programs and can fund the remediation at Pacific Station South. For another, the funding allows for necessary tasks that are not typically eligible for funding such pre-construction work like developing plans, undertaking CEQA review, and paying permit fees. These activities are greatly needed for the Jessie Street Marsh and Pogonip Open Space projects. Funding must be utilized by June 2024, and project scopes were developed to ensure they could meet timeline requirements.

Pacific Station South – ED requested up to about $859,000 to assist its development partner, For the Future Housing, with costs related to remediation of onsite contamination. Contamination on

15.2 the Pacific Station South site is primarily related to former automobile uses and remediation of gas plumes from leaking underground storage tanks, which had been previously removed but not remediated to residential standards now required for the affordable housing project. Eligible costs include project management, demolition, site clearance and abatement, and installation of a vapor inclusion barrier system to mitigate the risk of underground gas intrusion into the project.

Lower Main Meadow, Pogonip Open Space – P&R requested $387,600 to prepare a shovelready remediation plan for the Lower Main Meadow at Pogonip. Much of the Lower Main Meadow is covered with lead and polycyclic aromatic hydrocarbons from a historic skeet shooting use. The City is working with the County of Santa Cruz Environmental Health Division to finalize the characterization of the site. Additional work needs to occur to determine how the site can be restored to open space or can be safely farmed by the Homeless Garden Project. The grant award would complete the characterization of the soils contamination, develop a Remedial Action Plan and Site Management Plan to address the contamination, perform community engagement to discuss the approach to remediation and inform the public, develop construction plans to implement the remediation plan (i.e. grading, erosion control, planting plan), conduct an Environmental Impact Report to review the project under CEQA, and pay for necessary permits from the County of Santa Cruz Environmental Health Division, Regional Water Quality Control Board, Army Corps of Engineers, and California Department of Fish and Wildlife for activities within their jurisdiction. If awarded, at the conclusion of work period, the City would be in solid position to apply for additional grant funding to implement the remediation.

Jesse Street Marsh – P&R requested $182,750 to prepare a shovel-ready remediation plan for a former dumping area at Jessie Street Marsh. A portion of Jessie Street Marsh has low levels of lead contamination from the historic deposition of construction materials. Removing the contamination would allow for the expansion of wetland and installation of a multi-use trail. The approach is similar to the tasks described above for the Lower Main Meadow at Pogonip and is intended to fully permit the project so that grant funding can be pursued to clean-up the site.

Acceptance of these grant funds will further the City’s Re-envision goals of business revitalization, affordable housing, homeless response, and infrastructure investment. Staff recommends the City Council adopt a resolution authorizing and directing staff to apply for and accept funds from the ECRG grant for each of the three projects listed above and authorizing the City Manager or his designee to execute any agreements or documents necessary for acceptance and implementation of the grant(s).

FISCAL IMPACT: The project would not result in impacts to the City’s General Fund and would generate project funding to advance these capital projects. Staff time and capacity will need to be directed toward implementation of the projects and grant management, some costs of which may be eligible for reimbursement under the ECRG grant.

Prepared By:

David McCormic
Asset Manager
Submitted By:

Bonnie Lipscomb, Director of
Economic Development
Tony Elliot, Director of Parks
and Recreation
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

15.3 RESOLUTION NO. NS-29,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ APPROVING

THE APPLICATION FOR EQUITABLE COMMUNITY REVITALIZATION GRANT (ECRG) FUNDS FOR THREE SITES
WHEREAS, the State Department of Toxic Substances Control has been delegated the responsibility by the Legislature of the State of California and United States Environmental Protection Agency for the administration of the Equitable Community Revitalization Grant Program, setting up necessary procedures governing the application; and WHEREAS, said procedures established by the City of Santa Cruz Administrative Procedure Order Section I, #17 for Grant Submittal and Administration require the Applicant to certify by resolution the approval of the application before submission or as soon as practical after submission of said application(s) to the State; and
WHEREAS, successful Applicants will enter into a contract with the State of California to complete the Grant Scope project;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz that the filing of grant applications for each of the Homeless Garden Project Farm at the Lower Main Meadow in Pogonip Open Space, Jessie Street Marsh, and Pacific Station South is approved; and:

1. Certifies that said Applicant has or will have available, prior to commencement of any work on the project included in this application, the sufficient capacity to complete the project if the grant is awarded; and

2. Certifies that the Applicant has reviewed, understands, and agrees to the General Provisions contained in the contract shown in the ECRG Guidelines and Example Agreement; and

3. Delegates the authority to City Manager to accept the grant and appropriate any awarded grant funds, conduct all negotiations, sign and submit all documents, including, but not limited to applications, agreements, amendments, and payment requests, which may be necessary for the completion of the Grant Scope; and

4. Agrees to comply with all applicable federal, state and local laws, ordinances, rules, regulations and guidelines.

5. Will consider promoting inclusion per Public Resources Code §80001(b)(8 A-G).

15.4 RESOLUTION NO. NS-29,XXX
2 PASSED AND ADOPTED this 14th day of June, 2022, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

15.5 City Council

AGENDA REPORT
DATE: 06/07/2022
AGENDA OF: 06/14/2022
DEPARTMENT: Finance
SUBJECT: Contractor Living Wage Rate Annual Prescription for 2022 (FN) RECOMMENDATION: Resolution upwardly indexing the prescribed minimum living wage rate for contract workers where the contractor employer provides minimum vacation leave, sick leave and health insurance benefits for its employees, and an alternate higher minimum living wage to be paid where the contractor employer does not provide each of those minimum benefits for its employees, along with other conditions/definitions related to value of the contract, trainee status, etc. by 5.20%, the amount which corresponds to San Francisco-Oakland-Hayward Area Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers, for the period ending October 31, 2021, to become effective July 1, 2022; and rescinding Resolution No. NS29,772.

BACKGROUND: On October 24, 2000, City Council adopted Ordinance No. 2000-25 pertaining to the payment of a living wage for contract workers where the contractor employer provides minimum vacation leave, sick leave and health insurance benefits for its employees, and an alternate higher minimum living wage to be paid where the contractor employer does not provide each of those minimum benefits for its employees, along with other conditions/definitions related to value of the contract, trainee status, etc. Section 5.10.040 of the ordinance requires that the City Council adopt a recommendation regarding adjustments to minimum living wage rates and benefits annually to be effective on July 1st. This section of the ordinance further requires that, at a minimum, the living wage rates shall be upwardly indexed each year by an amount which corresponds to the San Francisco-Oakland-Hayward area CPI for Urban Wage Earners and Clerical workers for the twelve-month period ending on October 31st of the previous year.

DISCUSSION: This CPI data for the period ending October 31, 2021, reflects an increase of

5.20%. Staff recommends that this percentage be used to upwardly index the current living wage rate, effective July 1, 2022. Using this percentage to calculate the new minimum living wage rates will result in the following:

1. The minimum living wage to be paid to contractor employees when they receive the minimum leave and health insurance benefits prescribed in this resolution shall be increased to $19.01 per hour.

16.1 2. The minimum living wage to be provided to contractor employees where the contractor employees do not receive the minimum leave and health insurance benefits prescribed in this resolution shall be increased to $20.73 per hour.

3. The minimum sick leave, vacation leave and health insurance benefits which must be provided to contractor employees in order to qualify for the $19.01 per hour wage rate shall be as follows:

A. Compensated sick leave/vacation leave: a combined twelve days annually for fulltime contractor employees and prorated for contractor employees working less than full time.

B. Uncompensated sick leave/vacation leave: a combined 10 days annually for full-time contractor employees and prorated for contractor employees working less than full time.

C. Health insurance benefits: the payment of at least $1.72 per hour towards the payment for a health insurance policy for each contractor employee.

FISCAL IMPACT: This raise in the minimum contractor living wage may increase contract pricing for some service contracts; however it is not possible to determine any fiscal impact to the City at this time.

Prepared By:

Paula Cardozo
Buyer
Submitted By:

Bobby Magee
Interim Finance Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOC

16.2 RESOLUTION NO. NS-29,

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ ESTABLISHING MINIMUM LIVING WAGE RATES EFFECTIVE JULY 1, 2022 AND RESCINDING RESOLUTION NO. NS-29,772
WHEREAS, the City Council adopted Ordinance No. 2000-25 on October 24, 2000 to prescribe a minimum living wage rate for contract workers where the contractor employer provides minimum vacation leave, sick leave and health insurance benefits for its employees, and an alternate higher minimum living wage to be paid where the contractor employer does not provide each of those minimum benefits for its employees, along with other conditions/definitions related to value of the contract, trainee status; and WHEREAS, the living wage ordinance, at Municipal Code Section 5.10.030 requires the payment of a living wage to all contractor employees as that term is defined in the ordinance; and
WHEREAS, Section 5.10.040 requires the City Council on an annual basis to consider a recommendation annually to prescribe by resolution the minimum living wage rates to be paid to contractor employees pursuant to the requirements of the ordinance to become effective no later than July 1 of each year.

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

1. The minimum living wage to be paid to contractor employees when said contractor employees receive the minimum vacation leave, sick leave, and health insurance benefits prescribed in this resolution shall be $19.01 per hour.

2. The minimum living wage to be provided to contractor employees where the contractor employees do not receive the minimum vacation leave, sick leave, and health insurance benefits prescribed in this resolution shall be $20.73 per hour.

3. The minimum vacation leave, sick leave, and health insurance benefits which must be provided to contractor employees in order to qualify for the $19.01 per hour minimum living wage prescribed in this resolution shall be as follows:

A. Compensated sick leave/vacation leave: a combined 12 days annually for full-time contractor employees and prorated for contractor employees working less than full time.

B. Uncompensated sick leave/vacation leave: a combined 10 days annually for full-time contractor employees and prorated for contractor employees working less than full time.

16.3 C. Health insurance benefits: the payment of at least $1.72 per hour towards the payment for a health insurance policy for the contractor employee.

PASSED AND ADOPTED this 24th day of May 2022 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

16.4 City Council

AGENDA REPORT
DATE: 06/03/2022
AGENDA OF: 06/14/2022
DEPARTMENT: Finance
SUBJECT: General Obligation Refunding Bonds – Tax Rate Authorization (FN) RECOMMENDATION: Resolution setting the tax rate for FY 2023 with respect to the City’s General Obligation Refunding Bonds.

BACKGROUND: In November 1998, voters in the City of Santa Cruz approved the issuance of General Obligation Bonds (Bonds) in the amount of $7,000,000 for the purchase of greenbelt property, the renovation of the City’s fire stations, and the purchase/improvement of a City park adjacent to the depot site. Resources to repay the Bonds come from property tax levies within the City of Santa Cruz. The tax rate is established by the City Council each year and then forwarded to the County of Santa Cruz for inclusion on the property tax bills. The Bonds were refunded in December 2009 to reduce the overall cost of debt service and, thereby, realize financial savings for the taxpayers.

DISCUSSION: For the upcoming property tax billing, the City directs the County of Santa Cruz to levy on all taxable property in the City, in addition to all other taxes, a continuing direct and ad valorem tax in the amount of $515,306.57 to be used toward the payment of principal and interest coming due on the Bonds. Because the County of Santa Cruz is on the “Teeter Plan,” the City will receive 100% of the assessment. There is no need to factor in an amount for delinquencies.

The attached resolution establishes the appropriate tax rate, and instructs the Interim Director of Finance to forward a copy to the County of Santa Cruz and take whatever action is necessary to have the assessment placed on the 2022-2023 property tax bills.

FISCAL IMPACT: If the City does not provide the County of Santa Cruz with the required information to levy ad valorem taxes upon all property within the City, the City would still be required to make the Bond payment. Thus, it is recommended that the Resolution be approved, so that there will be no fiscal impact to the City of Santa Cruz.

Prepared By:

Michael Manno
Accountant II
Submitted By:

Bobby Magee
Interim Finance Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

17.1 17.2
RESOLUTION NO. NSRESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ SETTING THE TAX RATE FOR FY 2023 WITH RESPECT TO

GENERAL OBLIGATION REFUNDING BONDS
WHEREAS, more than two-thirds of the electors voting at a special municipal election held on November 3, 1998, voted for a proposition authorizing the issuance by the City of general obligation bonds in the aggregate principal of $7,000,000 (the "1998/1999 Bonds") for the purpose of providing funds for certain municipal improvements, including fire station improvements, community park improvements, and the acquisition of property to be used for open space purposes; and WHEREAS, pursuant to such authorization the City has previously issued the 1998/1999 Bonds in the form of $4,500,000 principal amount of current interest bonds and $2,498,473.25 principal amount of capital appreciation bonds; and
WHEREAS, the City Council has issued and sold its City of Santa Cruz 2009 General Obligation Refunding Bonds (the “Refunding Bonds”) in the aggregate principal amount not to exceed $8,000,000 for the purpose of refunding all of the outstanding 1999 current interest bonds and all of the outstanding 1998 capital appreciation bonds and thereby realizing financial savings to the property tax payers of the City; and WHEREAS, pursuant to Section 43632 of the California Government Code, the City Council is required annually to levy and collect until the bonds are paid, or until there is a sufficient amount in the treasury set apart to meet all payments of principal and interest coming due, a tax sufficient to pay the principal of and interest on the Refunding Bonds coming due and payable before the proceeds of a tax levied at the next general tax levy will be available; and
WHEREAS, the City has determined that it is necessary to levy and collect an amount of $515,306.57 toward the payment of principal and interest coming due on the Refunding Bonds on March 1 and September 1, 2023, and thereby directs the County of Santa Cruz to levy on all taxable property in the City, in addition to all other taxes, a continuing direct and ad valorem tax in the amount of $515,306.57 based on the estimated assessed values for all rolls (secured, unsecured and utility) for FY 2023.

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

Section 1. Levy of Tax. The City Council hereby determines that the tax rate necessary to pay the principal of and interest on the Refunding Bonds coming due and payable on March 1 and September 1, 2023, is equal to a continuing direct and ad valorem tax in the amount of $515,306.57, and such tax rate shall be and is hereby levied in accordance with all applicable requirements of law.

Section 2. Collection of Tax. The Interim Director of Finance is hereby directed to forward a copy of this Resolution to the Auditor-Controller of the County of Santa Cruz and to the Board of Supervisors of the County of Santa Cruz, and to take such actions and execute such documents as may be required to cause the tax rate set forth in Section 1 to be placed on the 2022-2023 property tax bills and collected by the County of Santa Cruz.

Section 3. Application of Tax. As provided in Section 43634 of the California Government Code, all taxes levied pursuant to this Resolution shall be used only for payment of the Refunding Bonds and the interest thereon.

Section 4. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption.

PASSED AND ADOPTED this 14th day of June, 2022 by the following vote:

AYES:

NOES:

ABSENT:

17.3 DISQUALIFIED:

APPROVED________________________
Mayor
ATTEST: ___________________________
City Clerk Administrator

17.4 1
Rosemary Balsley
From: Garrett <[email protected]>
Sent: Sunday, June 12, 2022 12:36 PM
To: City Council
Subject: 6.14.22 Consent Agenda Item #17

6.14.22 Consent Agenda Item #17
Dear Council,
I am surely ignorant of the intricacies of muni bonds, but if I am interpreting this correctly I read here in the agenda you refinanced 1998/1999 bonds in 2009, which we are still paying on. Santa Cruz has dozens of muni bonds besides these also as you know.

I'm just wondering, 2009 was just after the financial crisis and muni bond rates in general went ballistic compared to normal years as default fears soared. I read many financial muni bond annalists we pounding the table for investors to buy them at the time having such a great yield returns which turned out to be true. High yields are NOT great for municipalities and those who pay taxes to support them.

I also note muni bonds yields in general bottomed in yield in 2021 since then (MUCH lower than 2009).

Just a question, but did the city missed out on refunding these bonds in all this time and especially when the getting was good, and was refunding in 2009 in retrospect the best time really to do so and to continue just sitting on those? That's a real question.

To the lay person, it doesn't seem so. Maybe you should ask finance to explain and if I'm wrong in questioning this, So solly.

Garrett Philipp

17.5 City Council

AGENDA REPORT
DATE: 06/03/2022
AGENDA OF: 06/14/2022
DEPARTMENT: Public Works
SUBJECT: FY 2023 Funding for Senate Bill 1 Road Maintenance and Rehabilitation Account (RMRA) (PW)
RECOMMENDATION: Motion to:
1) Adopt a resolution approving the FY 2023 allocation of SB 1 Road Maintenance and Rehabilitation Account funds and authorizing the City Manager to submit the project list to the California Transportation Commission; and
2) Adopt a resolution transferring and appropriating funds in the amount of $566,449 from the Gas Tax Fund (Fund 221) to reflect anticipated RMRA revenues.

BACKGROUND: Senate Bill (SB) 1, the Road Repair and Accountability Act, was enacted by the legislature and approved by the governor in April 2017. SB 1 provides the first significant, stable, and on-going increase in state transportation funding in more than two decades. Formula funds are provided to cities in Santa Cruz County, the County of Santa Cruz, Santa Cruz Metro, the Regional Transportation Commission and Caltrans. Guidelines for the use of the different funding categories have been developed and made available to cities and counties on a competitive basis.

SB 1 will generate $1.5 billion per year to cities and counties statewide and will be distributed based on existing gas tax formulas. Cities and counties are expected to prioritize basic road maintenance and rehabilitation projects for these funds, though other projects are also eligible.

They must meet California Constitution Article XIX and other statutory requirements. The California Transportation Commission (CTC) is responsible for monitoring fund allocation and expenditure.

DISCUSSION: Based on the CTC approved guidelines, cities and counties are required to adopt a resolution and submit a list of projects annually to the CTC by July 15, 2022 to the RMRA program and it must reflect how the agency intends to use the SB 1 funds. The RMRA is estimated to provide an additional $1,366,449 in Gas Tax funds to the City of Santa Cruz (City) next fiscal year. Public Works has developed a project list based on the need to fund Gas Tax eligible projects developed during the FY 2023 Capital Investment Program (CIP) process.

Public Works intends to focus the use of RMRA funds on road rehabilitation.

18.1 SB 1 also stabilizes the State Transportation Improvement Program (STIP) and State Highway Operation and Protection programs (SHOPP) that will benefit local transportation programs and projects. It also funds several competitive programs such as the Active Transportation Program (ATP), Transit and Intercity Rail Capital Program (TIRCP), Solutions for Congested Corridors, Local-State Partnership Program and Caltrans’ planning grants. City Council approved grant submissions for the Active Transportation Program, State Local Partnership Program and Caltrans planning grants in the past.

FISCAL IMPACT: SB 1 has a positive impact to the City’s transportation and maintenance budget by providing an estimated $1,366,449 in new Gas Tax revenue to the FY 2022 CIP. In order to effectively reflect these funds in the budget, a budget adjustment of an additional $566,449 to the existing budget of $800,000 is included with this report. Additionally, other SB 1 programs will fund important transportation projects in the City and region.

Prepared By:

Joshua Spangrud
Senior Professional Engineer
Submitted By:

Mark R. Dettle
Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOC

2. BUDGET ADJUSTMENT.PDF

3. CITY OF SANTA CRUZ SB1 PROJECT LIST - FY 2023.DOCX

18.2 RESOLUTION NO. NSRESOLUTION OF THE CITY OF SANTA CRUZ ADOPTING THE FY 2023 LIST OF PROJECTS FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 in order to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of the City of Santa Cruz are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City of Santa Cruz must adopt a list of all projects proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1 by resolution, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, the City of Santa Cruz will receive an estimated $1,366,449 in RMRA funding in Fiscal Year 2023 from SB 1; and
WHEREAS, the City of Santa Cruz has undergone a thorough public process to ensure public input into our community’s transportation and infrastructure priorities through consideration of the City’s Capital Improvement program at public meetings before the Transportation and Public Works Commission and, the City Council, and through social media; and
WHEREAS, the City of Santa Cruz uses a variety of tools to develop the Capital Investment Program, such as a Pavement Management System, operational resources and public input to develop the SB 1 projects to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the communities priorities for transportation investment; and
WHEREAS, the FY 2023 funding from SB 1 will help the City of Santa Cruz maintain, rehabilitate and restore the city’s infrastructure including street storm drains and catch basins citywide to prevent flooding, storm damage repair projects, rehabilitate arterial streets that include pedestrian and bicycle systems improvements that improve access and safety in Santa Cruz in FY2023; and that SB 1will fund many similar and larger projects into the future; and WHEREAS, the 2016 California Statewide Local Streets and Roads Needs Assessment found that the City of Santa Cruz’s streets and roads are in a “Good” condition with a current average PCI of 62 and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into a “Very Good” condition, PCI goal

18.3 of over 70 as well as repair other deficiencies and improve our multi-modal transportation system; and
WHEREAS, without revenue from SB 1, the City of Santa Cruz, would otherwise fall further behind in maintaining our street infrastructure, not be able to reduce flooding impacts, and limit our ability to improve access and safety for our community; and WHEREAS, if the Legislature and Governor failed to act, city streets and county roads would have continued to deteriorate, having many and varied negative impacts on our community; and
WHEREAS, cities and counties own and operate more than 81 percent of streets and roads in California, and from the moment we open our front door to drive to work, bike to school, or walk to the bus station, people are dependent upon a safe, reliable local transportation network; and
WHEREAS, modernizing the local street and road system provides well-paying construction jobs and boosts local economies; and
WHEREAS, the local street and road system is also critical for farm to market needs, interconnectivity, multimodal needs, and commerce; and
WHEREAS, police, fire, and emergency medical services all need safe reliable roads to react quickly to emergency calls and a few minutes of delay can be a matter of life and death; and WHEREAS, maintaining and preserving the local street and road system in good condition will reduce drive times and traffic congestion, improve bicycle safety, and make the pedestrian experience safer and more appealing, which leads to reduce vehicle emissions helping the City and State achieve its air quality and greenhouse gas emissions reductions goals; and WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on maintenance and safety, investing in complete streets infrastructure, and using appropriate technology, materials and practices, will have significant positive co-benefits in and for our community.

NOW THEREFORE BE IT RESOLVED by the City Council of the City of Santa Cruz that the:

1. The foregoing recitals are true and correct.

2. The City of Santa Cruz is adopting the SB 1Road Maintenance and Rehabilitation Account (RMRA) Project List for FY 2023.

18.4 PASSED AND ADOPTED this 14th day of June, 2023, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: _____________________________
Sonja Brunner, Mayor
ATTEST: ____________________________
Bonnie Bush, City Clerk Administrator

18.5 City of Santa Cruz

BUDGET ADJUSTMENT REQUEST
3XUSRVH

ACCOUNT REVENUE EDEN ACCOUNT TITLE

TOTALREVENUE

ACCOUNT EXPENDITURE EDENACCOUNT TITLE

TOTAL EXPENDITURE
NET: $

REQUESTED BY

DEPARTMENT HEAD

APPROVAL

BUDGET/ACCOUNTING
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FINANCE DIRECTOR

APPROVAL

CITYMANAGER

APPROVAL
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2023
06/14/2022
To increase appropriations by $566,449 to reflect estimated reimbursement from gas tax funds (RMRA) for FY 23. Currently budgeted in c400809 $800,000 from gas tax and actual reimbursement expected is $1,366,449.
317-00-00-0000-49130 c400809 514-0-0 From Gas Tax Fund 566,449 566,449
317-40-64-9311-57304 c400809 100-2020-0 Street Systems 566,449 221-00-00-0000-59126 To CIP - Arterial Streets and Roads funds 566,449 1,132,898
-566,449
Joshua
Spangrud
Digitally signed by
Joshua Spangrud
Date: 2022.05.19
08:24:14 -07'00'
Mark
Dettle
Digitally signed
by Mark Dettle
Date: 2022.05.19
09:59:51 -07'00'
Nicholas
Gong
Digitally signed by Nicholas Gong
DN: cn=Nicholas Gong, o=City of
Santa Cruz, ou=Finance,
[email protected],
c=US
Date: 2022.06.03 10:30:30 -07'00'
Bobby
Magee
Digitally signed by Bobby Magee
DN: cn=Bobby Magee, o=City of
Santa Cruz, ou=Finance,
[email protected]
m, c=US
Date: 2022.06.06 08:04:11 -07'00'

18.6 City of Santa Cruz
(To City Council for approval June 14, 2022)
Road Maintenance and Rehabilitation Account (RMRA) Project List (SB1) – FY 2023 Total Project Costs: $2,200,000
Total RMRA Funds: $1,366,449
Project Type Project Name Total Project
Est. Cost
SB 1
Portion
Estimated
Project Start
Date
Estimated Project
Completion Date
Community Benefit
Summary
Pavement,
Sidewalk and
Access Ramps
Arterial,
Collector and
Street
Reconstruction
$2,200,000 $1,366,449 07/01/22 06/30/23 Improve multimodal road conditions for
all users including
accessibility.

18.7 City Council

AGENDA REPORT
DATE: 06/03/2022
AGENDA OF: 06/14/2022
DEPARTMENT: Public Works
SUBJECT: Citywide Vegetation Management – Change Order (PW) RECOMMENDATION: Motion to approve a change order for Citywide Vegetation Management with Lewis Tree Service (Santa Cruz, CA) in the amount of $24,000.

BACKGROUND: The Public Works Street Maintenance division maintains more than 50 areas within the city limits annually. These efforts manage vehicle traffic and bicycle and pedestrian access to improve safety, as well as limit fire risks in the public right of way.

DISCUSSION: Each year, the City of Santa Cruz (City) hires multiple contractors for vegetation management. Lewis Tree Service is the only company of this group that is able to perform the work necessary and complete identified critical projects before the fiscal year ends.

Lewis Tree Service has demonstrated the expert knowledge and experience to take care of the City’s greenbelt areas. They also offer 24/7 response ability, cranes/excavator and qualified operators. Lewis Tree Service staff are willing to work in poison oak-infested areas and, most importantly, conduct safe work zones in live vehicle traffic. Unfortunately, the other contractors have not been willing to take on some of the work and are not able to complete the worked needed before the end of the fiscal year.

Public Works staff are recommending that City Council approve this change order with Lewis Tree Service to complete the most crucial vegetation management projects. Staff have identified certain areas that pose a higher fire risk that need immediate management before the fire season officially begins.

The current Lewis Tree purchase order is $99,000 but the change order needed to complete all City projects before the end of FY 2022 will increase that contract to $123,000. All purchase orders crossing the $100,000 threshold requires City Council approval.

FISCAL IMPACT: There are adequate funds in the Public Works FY 2022 General Fund budget within the Street Maintenance division for these services. There is no impact to the General Fund.

Prepared By:

Christina Alberti
Management Analyst
Submitted By:

Mark R. Dettle
Director of Public Works
Approved By:

Matt Huffaker
City Manager

19.1 ATTACHMENTS:

None.

19.2 City Council

AGENDA REPORT
DATE: 06/03/2022
AGENDA OF: 06/14/2022
DEPARTMENT: Public Works
SUBJECT: Measure D Expenditure Plan: FY 2023-2027 (PW)
RECOMMENDATION: Motion to approve the proposed Measure D Five-Year Expenditure Plan for FY 2023-2027.

BACKGROUND: Measure D, the transportation ballot measure, was approved by Santa Cruz County voters on November 8, 2016. Funding is provided to five transportation categories of projects: neighborhood projects, transportation for seniors and people with disabilities, highway corridors, active transportation, and the rail corridor. The Santa Cruz County Regional Transportation Commission (RTC) is responsible for the implementation and administration of the measure.

The Expenditure Plan categories include formula funding allocations to local jurisdictions under the “Neighborhood Category.” The City of Santa Cruz (City) is projected to receive $1.641 million in FY 2023 and $8.651 million over the FY 2023-2027 five-year period. With the COVID-19 pandemic, the Measure D sales tax revenue projections were reduced, but less than originally anticipated. The City has requested and been approved for Measure D funds allocated to the RTC for funding the Coastal Rail Trail within the City’s Segments 7, 8, and 9, and maintenance and educational funds.

The City Council (Council) has approved the past five Measure D Five-Year Expenditure Plans and has entered into a master funding agreement with the RTC. The City must enter into project agreements with RTC for each project that receives RTC Measure D funds. The Measure D program also requires an annual audit and final report that is reviewed by RTC staff and its oversight committee.

DISCUSSION: In order to move forward with receiving funds, local agencies are required to hold a public hearing to annually develop a five-year program of projects. The public hearing was held on March 21, 2022 before the Transportation and Public Works Commission (TPWC).

By motion, the TPWC recommended that the Council approve the proposed Measure D FiveYear Expenditure Plan for FY 2023-2027.

The five-year program must meet the RTC guidelines, be consistent with the master funding agreement, and must demonstrate that these funds will be used to enhance, not replace current transportation investments. A “Maintenance of Effort” report is developed annually to address this last requirement and may include performance measures. Additional details on the

20.1 requirements and future policies can be found on the RTC webpage (www.sccrtc.org). Staff implemented changes to the draft plan to fully fund the Monterey Bay Sanctuary Scenic (Rail Trail) Segment 7 Phase 2 using funds allocated to paving and unspent funds from other projects.

RTC also increased its regional contributions to the project.

The past five approved five-year expenditure plans included RTC funds for Segments 7, 8, and 9 of the Coastal Rail Trail, other Active Transportation Projects (ATP), Safe Routes to School (SR2S), Youth Safety Programs, and Road Rehabilitation. Attached is the City’s Measure D Proposed 5-Year Project Funding List which also includes the approved allocations in the previous five fiscal years. It includes the grant amounts that Measure D is used to match that are approved and proposed. The proposed City funded projects are generally split approximately 50- 50 between local street paving and ATP projects over the five-year allocation period, however that has changed twice with increased project costs, resulting in less paving funds. The street reconstruction and paving projects also include new access ramps, sidewalk repairs, and enhanced bike lane and crosswalk striping that comprise anywhere from 5-20% of the paving project cost. This augments the City Measure D share for active transportation.

Projects recently constructed and programs implemented with Measure D funds include paving on a number of residential, collector, and arterial streets such as Delaware and Fairmount, and the Street Smarts and SR2S Youth Safety Bike Safety Programs. The Segment 7, Phase 2 Rail Trail project construction has been awarded and will be starting soon. Segment 8 and 9 design and environmental review process is well underway. Other grant funding was used on many of these projects.

Measure D approval recognized the need for a new funding source to better fund street reconstruction, overlay and other paving methods, and critical infrastructure maintenance that benefits all mobility uses. Even with Measure H (no funding provided in FY22) approved many years ago by City residents, occasional state grants and gas tax, the current funding only covered about half of the City’s paving needs. Measure D and the passage of SB 1, the Road Repair and Accountability Act of 2017, is funding a more robust City paving program that now meets about 70% of our needs, though with inflation that percentage is shrinking.

The five-year project funding list will be modified annually based on project schedules, cost estimates, and new project requests. The funding is incorporated annually into the Capital Investment Program (CIP) for projects and Public Works operating budgets for maintenance and programs.

FISCAL IMPACT: The COVID-19 pandemic has impacted Measure D revenues though current projections reflect a smaller impact than previously anticipated. Measure D continues to have a positive impact to the City’s transportation budget by providing new transportation revenue to the City’s CIP and will be used advantageously to match additional transportation grants. In addition, funding from the RTC Measure D allocation for the Rail Trail projects will assist with the implementation and maintenance of the projects in the City. There is no impact to the General Fund.

Prepared By:

Nathan Nguyen
Assistant Director/City
Engineer
Submitted By:

Mark R. Dettle
Director of Public Works
Approved By:

Matt Huffaker
City Manager

20.2 ATTACHMENTS:

1. CITY MEASURE D PROPOSED 5-YEAR PROJECT FUNDING LIST.PDF

20.3 Project No. FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 Project Funding
Summary - All
Years (FY23-27)
Supporting
Grants & Local
Funding
$ 200,000 $ 200,000 $ 400,000
$ 200,000 $ 200,000 $ 400,000
1,100,000 $        1,000,000 $        1,150,000
$        1,000,000 $        2,410,800
$ 2,370,000 $ 2,370,000
$ 1,700,000 $ 1,700,000
$            500,000
$            500,000 $            668,560
m402001 $              25,000 $              60,000 $ 60,000 60,000 $ 60,000 $ 60,000 $ 60,000 $ 300,000 $ 300,000 $ c402301 $50,000 $50,000 250,000 $ c402210 $ 300,000 200,000 $ 500,000 $ 1,500,000 $ c401805 $ 200,000 $ 200,000 $ 1,700,000 Complete $                         ‐
c401806 $ 100,000 100,000 $ 400,000 $
c400809 $            100,000
c401812 $               100,000 50,000 $            Complete $              65,000 $ 10,000 $ 10,000
$              15,000 $ 10,000 10,000 $ 10,000 $ 10,000 $ 10,000 $ 50,000 $ g401901 $               88,000 33,000 $               83,000 $               $              35,000 $ 35,000 35,000 $ 35,000 $ 35,000 $ 35,000 $ 175,000 $ Varies per yearc400809 $             156,000 250,000 $             300,000 $             ‐ $                          $                         ‐ $ 500,000 650,000 $ 500,000 $ 500,000 $ 500,000 $ 2,650,000 $ Varies per year c400810 $             156,000 250,000 $             300,000 $             300,000 $             $                         ‐ $ 500,000 650,000 $ 500,000 $ 500,000 $ 500,000 $ 2,650,000 $ Varies per year $         1,113,560 1,150,000 $         1,688,000 $         448,000 $             $        2,460,800 $ 1,445,000 3,495,000 $ 1,645,000 $ 1,045,000 $ 1,045,000 $ 8,675,000 $ (FY23-27)$         ‐ 1,600,000 $                          1,000,000 $         25,000 $               $         1,210,000 $ 260,000 2,440,000 $ 260,000 $ 60,000 $ 60,000 $ 3,080,000 $ (FY23-27)$         1,349,000 1,462,000 $         1,292,000 $         1,521,000 $         $1,640,000 $ 1,687,000 1,641,000 $ 1,731,000 $ 1,772,000 $ 1,820,000 $ 8,651,000 $ (FY23-27) Total City Measure D Allocation Request
Project Title
Market Street Bikelanes and Sidewalk
c401413
City Measure D Apportionment Estimate
City Residential & Collector St Reconstruction and Overlay Street Reconstruction and Paving Projects Total RTC Measure D Allocation Request
Downtown Bike Locker Replacement ProgramCity Arterial & Collector St Reconstruction and Overlay $ 22,900,000
$ 14,100,000
Complete
COVID Slow Streets ProgramMB Sanctuary Scenic Trail (Rail Trail) Segment 7 SLR Parkway Phase III -Trestle Trail Widen **Street Smarts Traffic Safety Program p402001SR2S and Youth Bike Safety Programs $ 30,000
MB Sanctuary Scenic Trail (Rail Trail) Segment 8 & 9 c401804Swanton Blvd Multi-use Path Pacific Ave Sidewalk between Front and Second Active Transportation Program ProjectsBicycle and Pedestrian ProjectsMB Sanctuary Scenic Trail (Rail Trail) - MaintenanceMB Sanctuary Scenic Trail (Rail Trail) Segment 7 -Phase 3 c402208 $ 2,400,000 City of Santa Cruz Measure D - Proposed 5 Year Project Funding List FY23-27 (plus previous 5 program years) Ocean-Plymouth Multi-Modal ImprovementsBay Dr. Protected Bike Lanes & Pedestrian Path P:\PWTE\Measure D\Revised Proposed Measure D Expenditure Plan FY 2023-2027 05.23.22.xlsx 20.4 City Council

AGENDA REPORT
DATE: 06/03/2022
AGENDA OF: 06/14/2022
DEPARTMENT: Public Works
SUBJECT: Murray Street Bridge Seismic Retrofit and Barrier Rail Replacement (c409321) – Approval of Plans and Specifications and Authorization to Advertise and Award; Approval of Request for Proposals for Construction Management Services and Authorization to Advertise and Award Contract (PW)
RECOMMENDATION: Motion to:
1) Approve the plans and specifications for the Murray Street Seismic Retrofit and Barrier Rail Replacement Project (c409321) 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 project budget; and
2) Approve the Request for Proposals for Construction Management Services and authorize staff to advertise for proposals 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 project budget.

BACKGROUND: The Murray Street Bridge, which passes over the Santa Cruz Small Craft Harbor, requires a retrofit to bring the structure up to current seismic codes. This project has been long delayed, first because the State of California (State) withheld state matching funds during one of the State’s financial crises. When the State passed Proposition 1B, matching funds became available again and the project was restarted in 2007. In addition, working with the County of Santa Cruz Sanitation District to relocate its sanitary sewer force main was a lengthy and difficult process, due to the design constraints and funding challenge. The Murray Street Bridge is the last bridge in the City of Santa Cruz that currently requires a seismic retrofit, the other bridges having been completed in the early 2000’s.

DISCUSSION: On March 21, 2022, the Transportation and Public Works Commission unanimously voted to approve the recommendation that the City Council approve plans and specifications for the Murray Street Bridge Seismic Retrofit and Barrier Replacement, authorize staff to advertise for bids, and authorize the Director of Public Works to execute change orders within the approved budget.

21.1 This project will install new piles, extend the existing pile caps to incorporate the new piles, construct a new line of columns, place new bentcaps, widen the deck of the bridge and construct new see-through barrier rails. The resulting project, in addition to the structural upgrades, will result in a bridge deck with wide 6-foot bike lanes and a 7.5-foot sidewalk along the south (ocean) side to support two-way pedestrian path of travel. The elevated curbs adjacent to the bike lanes will be replaced with standard 6-inch-high curbs to improve the bicycle user experience.

The solid concrete vehicular barrier will be replaced with rails that will allow for better views to the harbor and ocean. State and federal funding allows for improvements within 200 feet of the bridge abutments and therefore the project includes widening the bike lanes and sidewalk to improve the transitions and storm drain system on the west side of the bridge.

The project is estimated to take two and a half years to construct, partially due to the constrained site, and the complexity of relocating boats and businesses, reconstructing docks, and numerous utility upgrades. The project is currently awaiting final certification for right-of-way and the issuance of permits from the regulatory agencies. The revised timeline has all permitting and right-of-way issues resolved by late 2022 and an advertisement for bid anticipated early next year after the holiday season. Due to the size and complexity of the project, a consulting firm will be retained for construction management (CM) services. The request for proposals (RFP) is included in this item. Once the RFP is approved, staff will advertise and select a consultant. The CM firm will then be able to complete constructability reviews and be in a position to actively manage the construction.

The City of Santa Cruz (City) has begun coordination efforts with the surrounding agencies on traffic impacts. During most of the two and a half year construction, a detour plan will close westbound traffic and maintain one-way eastbound traffic, from Seabright Avenue towards 7th Avenue. At times the bridge will have to be closed in its entirety as equipment and materials are moved and set up for different phases of work, requiring full road and path closures and detours at Seabright Avenue and 7th Avenue. In addition, the harbor’s paths under the bridge will be closed at alternating times to allow for the construction. The project specifications address the detours and closures, and public noticing. Specific details of the traffic impacts will be communicated to the public after a contractor is awarded the project. Plans and specifications can be found online at www.cityofsantacruz.com/publicworksprojects.

FISCAL IMPACT: The project (c401329) is funded through the Federal Highway Bridge Program (HBP, 88.53%) with the State matching funding (11.47%) coming from proposition 1B funds. There may be some local match required for non-participating items, which will be covered by the City’s Gas Tax funds as well as the project utility partners. The project construction is estimated at $31 million, including construction management costs. There is no impact to the General Fund.

Prepared By:

Joshua Spangrud
Senior Professional Engineer
Submitted By:

Mark R. Dettle
Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

21.2 City Council

AGENDA REPORT
DATE: 06/03/2022
AGENDA OF: 06/14/2022
DEPARTMENT: Public Works
SUBJECT: Senate Bill 743 Implementation - Analysis of Transportation Impacts (PW) RECOMMENDATION: Motion to adopt the updates to the City of Santa Cruz SB 743 Implementation Guidelines to reflect changes supporting a range of residential development types.

BACKGROUND: In 2013, Governor Brown signed Senate Bill (SB) 743 (Steinberg, 2013), which created a process to change the way that transportation impacts are analyzed under the California Environmental Quality Act (CEQA). Specifically, SB 743 required the Governor’s Office of Planning and Research (OPR) to amend the CEQA Guidelines to provide an alternative to Level of Service (LOS) for evaluating transportation impacts. Automobile delay is no longer be considered a significant impact under CEQA after July 1, 2020. Vehicle Miles Traveled (VMT) is the new metric. Transportation impacts related to air quality, noise and safety must still be analyzed under CEQA where appropriate.

In order to comply with SB743, the City of Santa Cruz joined the Cities of Watsonville, Capitola, and Scotts Valley and the County of Santa Cruz to collectively approach this new paradigm of measuring transportation impacts for the purposes of environmental review. The Cities and County hired Kimley Horn Transportation Consultants to assist with the necessary work, including updating the baseline conditions, updating and running the Countywide Transportation Model, mapping, and producing thresholds of significance for the Santa Cruz region. On June 9, 2020, the City of Santa Cruz adopted VMT thresholds of significance and SB743 Guidelines in conformance with SB743 guidelines.

Since adoption, each jurisdiction has been using the adopted SB743 guidelines for development review. As this is a new process, project leads and consultant team have kept in communication to identify any needed updates as we tested these new thresholds in the real world. At this time, staff recommends minor updates to the SB743 Guidelines in order to add supportive housing types to the exemption list.

DISCUSSION: VMT considers the distance that new residents or employees would travel on average as the result of the new development. VMT is advantageous to compact, mixed use development within an established urban limit because it “rewards” a project for being in close proximity to daily needs such as schools, grocery stores, jobs, and services. Likewise, projects that are on the far edges of town or are greenfield development would be more likely have high VMT because daily destinations are further away. If a project generates a VMT above the stated

22.1 thresholds of significance, common ways to reduce VMT on a project level are investments in Transportation Demand Management (TDM) such as transit passes, bike and pedestrian programs, car share, on-site childcare facilities, and other means. Other ways include the construction or contribution to bike and pedestrian or high occupant vehicle projects.

The City of Santa Cruz currently uses our adopted SB 743 Implementation Guidelines, which includes screening criteria and thresholds of significance. This report recommends adding a category for “supportive housing” to the exemptions list. The Supportive Residential Development: Adding supportive housing to infill locations generally exhibit low VMT. These project can include memory care project, permanent supportive housing projects, convalescent homes, assisted living project, and similar project types that include support for the residents. Projects that are supportive residential development, or the residential component of a mixed-use development, in infill locations shall be assumed to have a less than significant impact on transportation under CEQA.

Finally, the City will update the City’s VMT thresholds and methodology on an as needed basis to reflect changes in CEQA requirements, new methodology development, or refinement of process moving forward. As such, the City shall regularly review these guidelines for applicability and project sponsors and consultants should contact the City to ensure that they are applying the most recent guidelines for project impact assessment.

FISCAL IMPACT: There is no impact to the General Fund.

Prepared By:

Claire Gallogly
Transportation Planner
Submitted By:

Mark R. Dettle
Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. SENATE BILL 743 IMPLEMENTATION - CLEAN.PDF

2. SENATE BILL 743 IMPLEMENTATION - TRACK CHANGES.PDF

22.2 1 SB 743 Implementation
June 2020
SB 743 Implementation Guidelines City
of Santa Cruz
May 12, 2022
Background
In 2013, SB 743 was signed into law by California Governor Jerry Brown with a goal of reducing Greenhouse Gas (GHG) emissions, promoting the development of infill land use projects and multimodal transportation networks, and to promote a diversity of land uses within developments. One significant outcome resulting from this statue is the removal of automobile delay and congestion, commonly known as level of service (LOS), as a basis for determining significant transportation impacts under the California Environmental Quality Act (CEQA).

The Governor’s Office of Planning and Research (OPR) selected Vehicle Miles Traveled (VMT) as the principal measure to replace LOS for determining significant transportation impacts. VMT is a measure of total vehicular travel that accounts for the number of vehicle trips and the length of those trips. OPR selected VMT, in part, because jurisdictions are already familiar with this metric. VMT is already used in CEQA to study other potential impacts such as GHG, air quality, and energy impacts and is used in planning for regional Sustainable Communities Strategies (SCS).

VMT also allows for an analysis of a project’s impact throughout the jurisdiction rather than only in the vicinity of the proposed project allowing for a better understanding of the full extent of a project’s transportation-related impact. It should be noted that SB 743 does not disallow an City of Santa Cruz to use LOS for other planning purposes outside the scope of CEQA.

Land Use Projects
An approach to identify transportation impacts under CEQA for land-use that closely align with guidance provided within the OPR Technical Advisory on Evaluating Transportation Impacts in CEQA (2018). While the OPR guidance related to SB 743 has been a helpful introduction to using VMT to evaluate projects, it does not provide a complete solution. There are a multitude of complex practical issues that are not addressed by the OPR guidance. OPR Guidance does not specifically address land uses beyond residential, office and retail, and it provides latitude on some elements of implementation. In response to this, a specific series of analysis steps for SB 743 project evaluation have been developed to clarify requirements and reduce potential confusion. Exhibit 1 provides a graphical representation of this analysis process.

22.3 2 SB 743 Implementation
June 2020
Exhibit 1 – Process for CEQA VMT Analysis for Land Use Projects Step 1
• Evaluate land use
Step 2
• Screen for non-signifcant transportation impact
Step 3
•Determine significance threshold and methodology
Step 4
• Scope of Analysis Agreement
Step 5
•Analysis and Mitigation
Step 6
• Mitigation Monitoring (if Required)

22.4 3 SB 743 Implementation
June 2020
Step 1: Evaluate Land Use Type
During the initial step the land use projects will need to be evaluated for the following considerations:
 Land use type. For the purposes of analysis, the Institute of Transportation Engineers (ITE) land use codes serve as the basis of land use definitions. Although it is recognized that VMT evaluation tools and methodologies are typically not fully sensitive to some of the distinctions between some ITE categories, the use of ITE land use codes is useful for maintaining consistency across analyses, determining trip generation for other planning level tools, and maintaining a common understanding of trip making characteristics amongst transportation professionals. The ITE land use code is also used as an input into the sketch planning tool.  Mixed Use. If there are multiple distinct land uses within the project (residential, office, retail, etc.), they will be required to be analyzed separately unless they are determined to be insignificant to the total VMT. Mixed use projects are permitted to account for internal capture which depending on the methodology may require a distinct approach not covered in this documentation.
 Redevelopment projects. As described under the Non-Significant Screening Criteria section, redevelopment projects which have lower VMT than the existing on-site use can be determined to have a non-significant impact.

Step 2: Screen for Non-Significant Transportation Impact The purpose of this step is to determine if a presumption of a non-significant transportation impact can be made on the facts of the project. The guidance in this section is primarily intended to avoid unnecessary analysis and findings that would be inconsistent with the intent of SB 743. A detailed CEQA transportation analysis will not be required for land use elements of a project that meet the screening criteria shown in Exhibit 2. If a project is mixed use in nature, only those elements of the project that do not comply with the elements in Exhibit 2 would require further evaluation to determine transportation significance for CEQA purposes.

22.5 4 SB 743 Implementation
June 2020
Exhibit 2 – Screening Criteria
Screening Criteria OPR Guidance
SMALL PROJECTS1 Expected to cause a less-than-significant impact:
 Project generation is less than 110 trips per day
CEQA transportation analysis required if:
 It is inconsistent with the Sustainable Communities Strategy as determined by the City of Santa Cruz

PROJECTS NEAR HIGH
QUALITY TRANSIT2
Expected to cause a less-than-significant impact:
 Within a ½ mile of an existing major transit stop.
 Maintains a service interval frequency of 15 minutes or less during the morning and afternoon peak commute periods.

CEQA transportation analysis required if:
 Has a Floor Area Ratio (FAR) of less than 0.75
 Includes more parking for use by residents, customers, or employees of the project than required by the City of Santa Cruz
 It is inconsistent with the Sustainable Communities Strategy as determined by the City of Santa Cruz
 Replaces affordable residential units with a smaller number of moderate- or high-income residential units

LOCAL-SERVING
RETAIL3
Expected to cause a less-than-significant impact:
 No single store on-site exceeds 50,000 square feet
 Project is local-serving as determined by the City of Santa Cruz CEQA transportation analysis required if:
 If the nature of the service is regionally focused as determined by the City of Santa Cruz

AFFORDABLE
HOUSING4
Expected to cause a less-than-significant impact:
1 2018 OPR Guidance, page 12
2 2018 OPR Guidance, page 13
3 2018 OPR Guidance, page 16
4 2018 OPR Guidance, page 14. As described, “Evidence supports a presumption of less than significant impact for a 100 percent affordable residential development (or the residential component of a mixed-use development) in infill locations. Lead agencies may develop their own

22.6 5 SB 743 Implementation
June 2020
Exhibit 2 – Screening Criteria
Screening Criteria OPR Guidance
 A high percentage of affordable housing is provided as determined by the City of Santa Cruz
CEQA transportation analysis required if:
 The percentage of affordable housing is determined by the City of Santa Cruz to not be high in relation to the residential element of a project

LOCAL ESSENTIAL
SERVICE5
Screening allowed if:
 Day care center
 Public K-12 School
 Police or Fire facility
 Medical/Dental office building
 Government offices (in-person services such as post office, library, and utilities)


MAP-BASED
SCREENING6
Expected to cause a less-than-significant impact:
 Area of development is under threshold as shown on screening map as allowed by City of Santa Cruz
CEQA transportation analysis required if:
 Represent significant growth as to substantially change regional travel patterns as determined by the City of Santa Cruz

REDEVELOPMENT
PROJECTS7
Expected to cause a less-than-significant impact:
 Project replaces an existing VMT-generating land use and does not result in a net overall increase in VMT
presumption of less than significant impact for residential projects (or residential portions of mixed-use projects) containing a particular amount of affordable housing, based on local circumstances and evidence.” 5 Based on assumption that, like local-serving retail, the addition of necessary local in-person services will reduce VMT given that trips to these locations will be made irrespective of distance given their non-discretionary nature. 6 2018 OPR Guidance, page 12
7 2018 OPR Guidance, Page 18
If the nature of the service is regionally focused as determined by the City of Santa Cruz
CEQA transportation analysis required if:
 Supportive Housing Types (assisted living, permanant supportive housing, memort care, etc)

22.7 6 SB 743 Implementation
June 2020
Exhibit 2 – Screening Criteria
Screening Criteria OPR Guidance
CEQA transportation analysis required if:
 Project replaces an existing VMT-generating land use and results in a net overall increase in VMT

22.8 7 SB 743 Implementation
June 2020
Step 3: Significance Threshold and Methodology
The purpose of this step is to determine the threshold of significance for application to a land use project. Significance thresholds are based on land use type, broadly categorized as efficiency and net change metrics. Efficiency metrics include VMT/Capita and Work VMT/employee8 . As described in Table
1, “Net Change” refers to the net change in regional VMT. “Net Change” is used for elements that include a significant customer base, such as commercial uses although it can extend to a variety of uses that have similar characteristics as shown in Exhibit 3.

Exhibit 3 - Significance Threshold and Methodology
Threshold Basis Efficiency Net Change
Example Land Use Residential, Professional Office,
Industrial
Retail, Medical Office, Sports
Venue
Example VMT Thresholds Per capita, per employee Region VMT change Customer Component No Yes
Allowable Methods
Non-Significant Screening Criteria,
The City of Santa Cruz Sketch
Planning Tool, Travel Demand
Model
Non-Significant Screening
Criteria, Travel Demand Model
For projects with a significant customer basis it is typically appropriate to separate employee trip characteristics from the customer base unless the customer base is minimal in nature. Under these circumstances, it is most appropriate to evaluate the total of the delta in regional VMT resultant from the customer base plus the delta of VMT resultant from employees based on the following formula:
(number of employees) x (estimated VMT/employee – threshold VMT/employee) The threshold of significance will accordingly correspond to the “Net Change” threshold as described in Exhibit 3. Under these circumstances, it is most appropriate to evaluate this total Net Change as the basis for evaluating the outcome of mitigations in terms of determining transportation significance although each element of the project should be tallied separately for the purposes of clarity.

8 Work VMT specifically applies to commute trips as represented by the attractions in the Travel Demand Model. Refer to Appendix A for additional information

22.9 8 SB 743 Implementation
June 2020
VMT Thresholds of Significance
OPR suggests a 15 percent VMT reduction relative to existing local or regional average VMT levels. The thresholds of significance recommended by OPR, as they relate to the City of Santa Cruz, are summarized in Exhibit 4.

Exhibit 4 - OPR suggested VMT Thresholds of Significance Land Use OPR Guidance9
Residential 15% below existing county-wide average VMT per capita Office 15% below existing county-wide average VMT per employee Retail Net increase in total VMT
Based on these criteria the VMT thresholds of significance shown in Exhibit 5 have been established.

Exhibit 5 - VMT Thresholds of Significance
Land Use VMT Threshold Basis
Residential 11.9 VMT/capita10 15% below existing county-wide average VMT per capita.

Office 6.4 Work VMT/Employee11 15% below existing county-wide average Work VMT per employee
Retail Net regional change Using the county as the basis Other
Employment Work VMT/Employee12 15% below existing county-wide average Work VMT per employee for similar land uses Other
Customer
Net regional change Using the county as the basis
Note that the inclusion of “Other Employment” and “Other Customer” refers to all other service and goods providers that are not included in the basic office/retail categories. As shown they follow a similar approach to the office/retail categories with the principal difference being that the average/basis for of the threshold would the aggregation of the specific “other” land use across the county (i.e. an industrial project would use industrial uses, etc.).

9 2018 OPR Guidance, Pages 15-16
10 Residential VMT specifically applies to all Home-Based trips residential trips as represented in the Travel Demand Model. Refer to Appendix A for additional information.
11 Work VMT specifically applies to commute trips as represented in the Travel Demand Model. Refer to Appendix A for additional information 12 Work VMT specifically applies to commute trips as represented in the Travel Demand Model. Refer to Appendix A for additional information

22.10 9 SB 743 Implementation
June 2020
Based on improvements to methods and data as well as other modeling modifications there will be periodic updates to the numerical threshold values shown, however the relative approach for calculating them should remain the same. The values in the current sketch planning tool, discussed in the next section, will supersede the information provided in the table above. Additional thresholds for various employment types are also provide in the sketch planning tool.

Sketch Planning Tool
The City of Santa Cruz has developed a sketch planning tool for use in SB 743 land use project analysis.

The purpose of the tool is to calculate VMT for a land use project. As with any sketch planning tool, there are distinct limitations in terms of its application including limits on the type and size of development that can be applied to. Note that it is anticipated that the tool will continue to evolve in response to data or methodological changes and as such it is important that the most current version of the tool be utilized. Broadly, the sketch planning tool provides the following information:
 Institute of Transportation Engineers (ITE) Trip Generation  VMT Threshold Analysis
 Greenhouse Gas (GHG) Estimation
 Transportation Demand Management (TDM) Evaluation
The VMT Analysis methodology is summarized in Appendix A.

Step 4: Scope of Analysis Agreement
Prior to undertaking VMT analysis, a scope compliant with the City of Santa Cruz’s requirements should be prepared and submitted for approval. Given the potential complexities of some uses, particularly those not identified as residential, retail, or office, an agreement regarding the threshold and methodology is important to avoid analysis that is not compliant with the City of Santa Cruz’s requirements.

Step 5: Analysis and Mitigation
During this step the analysis agreed to under Step 4 should be completed. Relevant documentation providing enough detail that assumptions are clearly understandable, and methods that can be replicated should be provided along with the results of the VMT analysis for the proposed project.

If a significant transportation impact is identified, feasible mitigation measures to avoid or reduce the impact must be identified. CEQA requires that the mitigation measures are included in the project’s environmental assessment. OPR provides a list of potential measures to reduce VMT but gives the lead City of Santa Cruz full discretion in the selection of mitigation measures.

The type and size of the project will determine the most appropriate mitigation strategies for VMT impacts. For large projects such as general plans or specific plans, VMT mitigations should concentrate on the project’s density and land use mix, site design, regional policies, and availability of transit, bicycle, and pedestrian facilities. For smaller projects such as an individual development project, VMT mitigations will typically require the preparation of a transportation demand management (TDM)

22.11 10 SB 743 Implementation
June 2020
program. A TDM program is a combination of strategies to reduce VMT. The program is created by an applicant for their land use project based on a list of strategies agreed to with the City of Santa Cruz.

The City of Santa Cruz has developed a list of potential TDM strategies appropriate for their jurisdiction and what magnitude of VMT reduction could be achieved. The selection process was guided by the California Air Pollution Control Officers Association (CAPCOA) recommendations found in the 2010 publication Quantifying Greenhouse Gas Mitigation Measures. The area context of the City of Santa Cruz also influenced the type of TDM strategies that were selected. CAPCOA has found strategies with the largest VMT reduction in rural areas include vanpools, telecommute or alternative work schedules, and master planned communities with design and land-use diversity to encourage intra-community travel.

Based on empirical evidence, CAPCOA found the cross-category maximum for all transportation-related mitigation measures is 15% for suburban settings.

Appendix B summarizes available TDM strategies along with the maximum VMT reduction, applicable land use application, and complementary strategies. The City of Santa Cruz’s sketch planning tool includes the TDMs summarized in Appendix B.

Step 6: Mitigation Monitoring
As required by CEQA, the City of Santa Cruz will require ongoing mitigation monitoring and reporting.

The specifics of this will be developed on a project basis.

Transportation Projects
Depending on the specific nature of a transportation project; it can alter trip patterns, trip lengths, and even trip generation. Research has determined that capacity-enhancing projects can and often do increase VMT. This phenomenon is commonly referred to as “induced demand”. While methods are generally less developed for the analysis of induced demand compared to other areas of transportation analysis, there is still the need to quantify and understand its impact to the transportation system considering the requirements of SB 743.

Similarly, to land use projects, the approach to transportation project analysis closely align with the 2018 OPR Guidance. In terms of analysis, the analyst should first determine whether the transportation project has been prescreened and determined to have a non-significant impact as described in the following section.

Screen for Non-Significant Transportation Impact
The following non-significant impact examples are provided directly from the 2018 OPR Guidance13:
 Rehabilitation, maintenance, replacement, safety, and repair projects designed to improve the condition of existing transportation assets (e.g., highways; roadways; bridges; culverts;  Transportation Management System field elements such as cameras, message signs, detection, or signals; tunnels; transit systems; and assets that serve bicycle and pedestrian facilities) and that do not add additional motor vehicle capacity

13 2018 OPR Guidance, Page 20

22.12 11 SB 743 Implementation
June 2020
 Roadside safety devices or hardware installation such as median barriers and guardrails  Roadway shoulder enhancements to provide “breakdown space,” dedicated space for use only by transit vehicles, to provide bicycle access, or to otherwise improve safety, but which will not be used as automobile vehicle travel lanes
 Addition of an auxiliary lane of less than one mile in length designed to improve roadway safety  Installation, removal, or reconfiguration of traffic lanes that are not for through traffic, such as left, right, and U-turn pockets, two-way left turn lanes, or emergency breakdown lanes that are not utilized as through lanes
 Addition of roadway capacity on local or collector streets provided the project also substantially improves conditions for pedestrians, cyclists, and, if applicable, transit  Conversion of existing general-purpose lanes (including ramps) to managed lanes or transit lanes, or changing lane management in a manner that would not substantially increase vehicle travel
 Addition of a new lane that is permanently restricted to use only by transit vehicles  Reduction in number of through lanes
 Grade separation to separate vehicles from rail, transit, pedestrians or bicycles, or to replace a lane in order to separate preferential vehicles (e.g., HOV, HOT, or trucks) from general vehicles  Installation, removal, or reconfiguration of traffic control devices, including Transit Signal Priority (TSP) features
 Installation of traffic metering systems, detection systems, cameras, changeable message signs and other electronics designed to optimize vehicle, bicycle, or pedestrian flow  Timing of signals to optimize vehicle, bicycle, or pedestrian flow  Installation of roundabouts or traffic circles
 Installation or reconfiguration of traffic calming devices  Adoption of or increase in tolls
 Addition of tolled lanes, where tolls are sufficient to mitigate VMT increase  Initiation of new transit service
 Conversion of streets from one-way to two-way operation with no net increase in number of traffic lanes
 Removal or relocation of off-street or on-street parking spaces  Adoption or modification of on-street parking or loading restrictions (including meters, time limits, accessible spaces, and preferential/reserved parking permit programs)

22.13 12 SB 743 Implementation
June 2020
 Addition of traffic wayfinding signage
 Rehabilitation and maintenance projects that do not add motor vehicle capacity  Addition of new or enhanced bike or pedestrian facilities on existing streets/highways or within existing public rights-of-way
 Addition of Class I bike paths, trails, multi-use paths, or other off-road facilities that serve nonmotorized travel
 Installation of publicly available alternative fuel/charging infrastructure  Addition of passing lanes, truck climbing lanes, or truck brake-check lanes in rural areas that do not increase overall vehicle capacity along the corridor Significance Threshold and Methodology
For projects that increase roadway capacity and are not identified under the Non-Significant Screening Criteria in the prior section, the significance criterion should be change in regional VMT. A finding of a significant impact would be determined if a transportation project results in a net increase in regional VMT.

22.14 13 SB 743 Implementation
June 2020
Appendix A
VMT Analysis Methodology
Travel Demand Models (TDMs) are broadly considered to be amongst the most accurate of available tools to assess regional and sub-area VMT. While the Association of Monterey Bay Area governments (AMBAG) maintains the regional travel demand model as a part of the Metropolitan Transportation Plan/Sustainable Communities Strategy program (MTP/SCS), Santa Cruz County maintains its own travel demand model (SCC TDM) as part of the General Plan. The latest available version of the SCC TDM was developed as part of the 2020 General Plan update was determined to be the best fit for developing the VMT thresholds as it has the most up to date land use information for the County, as well as detailed roadway and transit networks in the model.

The 2019 Base Year model scenario was used for the baseline conditions and 2040 Future Year model scenario was used for the cumulative conditions in the City. The four incorporated cities included in the model (City of Capitola, City of Santa Cruz, City of Scotts Valley, and the City of Watsonville) are major contributors of the trips throughout the County during a typical weekday.

As many of the County’s daily trips originate from or are destined for areas outside of the County such as the Bay area and Monterey County (external trips), their total length could not be computed solely using the SCC TDM, additional analysis was required. The length of these trips was determined using two main processes, using Big Data and SCC TDM output files. Data was obtained from Teralytics that summarized the number of trips to and from the County to the surrounding Counties at the Census Tract level for the entire month of October 2019. The distance between each Census Tract was determined by using the TransCAD software, the modeling platform the SCC TDM runs on. The multipath analysis function within the TransCAD software was used to determine the point to point distance between the centroid of each Census Tract using the internal pathing algorithm that determines the shortest path along the roadway network between the centroid of each Census Tract pair. The shortest path between each County Census Tract and each non-County Census Tract that contained at least one trip was multiplied by the share of the total trips to and from each Census Tract within the County to determine the average trip length to and from the County Census Tract. The average trip length was applied to each TAZ based on the TAZ to Census Tract association and multiplied by the number of externa trips to and from that TAZ to determine the total external VMT by TAZ.

However, before beginning the Countywide VMT analysis, the zonal structure and various components of the SCC TDM were thoroughly reviewed to make the best use of model results to determine the VMT thresholds.

Model Zone Structure
VMT was computed at Traffic Analysis Zone (TAZ) level to determine the thresholds as well as to allow for comparisons among different areas throughout the County. There are 696 TAZs within the County, including 364 TAZs within the unincorporated parts of the County.

Socio-Economic Data
Socioeconomic data (SED) and other model inputs are associated with each TAZ. Out of several different variables in the model SED, the VMT analysis mainly focused on population, the number of households, the number of students, and types of employment that are used in the trip generation component. VMT

22.15 14 SB 743 Implementation
June 2020
computation was focused on the number of households in each TAZ and employment variables by 6 industries to determine rest of the trips. Employment variables used in the model are listed below.

Employment by Industry type:

1. Agriculture

2. Construction

3. Industrial and Manufacturing

4. Retail and Food

5. Service (White Collar, non-government jobs)

6. Public Administration (Government jobs)
Trip Generation
The SCC TDM runs a series of complex steps to estimate daily trip productions and attractions by various trip purposes for each TAZ. The trip purposes are listed below.

Model Trip Purpose:

1. Home-Based Work (HW)

2. Home-Based Other (HO)

3. Home-Based School, K-12 (HK)

4. Home-Based College (HC)

5. Home-Based Shopping (HS)

6. Work-Based Other (WO)

7. Other-Based Other (OO)
The production model uses several variables such as number of workers, household income, age, household size and car availability depending on the trip purpose. Trip productions for every TAZ in the model were compiled separately by each trip purpose. The attraction model uses employment categories for the HW trip purpose, whereas it uses the employment categories and number of students (K-12 and University) for all non-HW trip purposes. The attraction model estimates trip attractions to each TAZ by regression coefficients that vary by employment type. Trip attractions for every TAZ were compiled by each purpose and by each employment type based on these regression coefficients.

22.16 15 SB 743 Implementation
June 2020
Person Trips, Vehicle Occupancy, Trip Distance
Trip productions and attractions were compiled after the mode choice step, and only auto trips were used for the analysis. After the vehicle trip productions and attractions were computed for each trip purpose, trip lengths were applied for each zone pair from the skim matrices in the model to compute the production and attraction VMT by purpose.

VMT by Land Use Type
The residential VMT was computed by combining the production VMT for all the Home-Based trip purposes. VMT for non-residential land uses was computed from the attraction VMT by appropriate trip purposes and regression coefficients used in the attraction model.

Residential and non-residential VMT by each TAZ were computed and average VMT were determined by City, County and Region levels to determine City’s thresholds.

22.17 16 SB 743 Implementation
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Appendix B
City of Santa Cruz
TDM
Measure
#
Transportation
Demand
Management
Measure
Description TDM Type Max VMT
Reduction
VMT
Reduction
Type
Transit Strategies
1 Transit Stops
Coordinate with local
transit agency to
provide bus stop near
the site. Real time
transportation
information displays
support on-the-go
decision making to
support sustainable trip
making. Only get a
reduction on a nonHQT line, cannot get
both.

Infrastructure 3% All
2 Safe and Well-Lit
Access to Transit
Enhance the route for
people walking or
bicycling to nearby
transit (typically offsite). Provide
Emergency 911
phones along these
routes to enhance
safety.

Infrastructure 1% All
3 Implement
Neighborhood
Shuttle
Implement projectoperated or projectsponsored
neighborhood shuttle
serving residents,
employees, and visitors
of the project site
Incentive 5% All
4 Transit Subsidies
Involves the
subsidization of transit
fare for residents and
employees of the
project site. This
strategy assumes
transit service is
already present in the
project area. Incentive 5% All
Pays for employees to
use local transit. This
could either be a
discounted ticket or a
full-reimbursed transit
ticket. Include Trolley
considerations.

22.18 17 SB 743 Implementation
June 2020
City of Santa Cruz
TDM
Measure
#
Transportation
Demand
Management
Measure
Description TDM Type Max VMT
Reduction
VMT
Reduction
Type
Communication & Information Strategies
5 Mandatory Travel
Behavior Change
Program
Involves the
development of a travel
behavior change
program that targets
individuals’ attitudes,
goals, and travel
behaviors, educating
participants on the
impacts of their travel
choices and the
opportunities to alter
their habits. Provide a
web site that allows
employees to research
other modes of
transportation for
commuting. Employeefocused travel behavior
change program that
targets individuals
attitudes, goals, and
travel behaviors,
educating participants
on the impacts of their
travel choices and the
opportunities to alter
their habits.

Incentive
4%
All
6 Promotions &
Marketing
Involves the use of
marketing and
promotional tools to
educate and inform
travelers about sitespecific transportation
options and the effects
of their travel choices
with passive
educational and
promotional materials.

Marketing and public
information campaign
to promote awareness
of TDM program with
an on-site coordinator
to monitor program.

Incentive All

22.19 18 SB 743 Implementation
June 2020
City of Santa Cruz
TDM
Measure
#
Transportation
Demand
Management
Measure
Description TDM Type Max VMT
Reduction
VMT
Reduction
Type
Commuting Strategies
7 Employer Sponsored
Vanpool or Shuttle
Implementation of
employer-sponsored
employee vanpool or
shuttle providing new
opportunities for
access to connect
employees to the
project site.

Incentive /
Infrastructure 5% Commute
8 Preferential Carpool
/ Vanpool Parking
Spaces
Reserved carpool /
vanpool spaces closer
to the building
entrance.

Infrastructure 1%
9 Passenger Loading
Zones for Carpool /
Vanpool
Provide easy access
for carpools or
vanpools.

Infrastructure 1%
10 On-site Carts or
Shuttles or bikes
Provide on-site cart or
shuttle for employees
to travel across
campus.

Incentive /
Infrastructure 2% All
11 Emergency Ride
Home (ERH)
Program
Provides an occasional
subsidized ride to
commuters who use
alternative modes.

Guaranteed ride home
for people if they need
to go home in the
middle of the day due
to an emergency or
stay late and need a
ride at a time when
transit service is not
available. Ecology
Action is preferred
vendor. This
supplemental to the
other trip reduction
strategies. ADD to 5
and 6
Incentive 4% Commute
12 On-site Childcare
Provides on-site
childcare to remove the
need to drive a child to
daycare at a separate
location.

Infrastructure 4% All

22.20 19 SB 743 Implementation
June 2020
City of Santa Cruz
TDM
Measure
#
Transportation
Demand
Management
Measure
Description TDM Type Max VMT
Reduction
VMT
Reduction
Type
13 Telecommuting
Four-Ten work
schedule results in
20% weekly VMT
reduction, 10% trip
reduction equals 15%
VMT reduction
20%
14 Alternative work
schedule
Alternative Fridays off
(Nine-Ten schedule)
Shared Mobility Strategies
15 Mandatory Ride
Amigos-Share
Program
Increases vehicle
occupancy by providing
ride-share matching
services, designating
preferred parking for
ride-share participants,
designing adequate
passenger
loading/unloading and
waiting areas for rideshare vehicles, and
providing a website or
message board to
connect riders and
coordinate rides. Need
a point person form the
business on-site
Incentive 10% Commute
16 Employee/Employer
Car Share
Implement car sharing
to allow people to have
on-demand access to a
vehicle, as-needed.

This may include
providing membership
to an existing program
located within 1/4 mile,
contracting with a thirdparty vendor to extend
membership-based
service to an area, or
implementing a projectspecific fleet that
supports the residents
and employees on -
site.

Incentive 1% All

22.21 20 SB 743 Implementation
June 2020
City of Santa Cruz
TDM
Measure
#
Transportation
Demand
Management
Measure
Description TDM Type Max VMT
Reduction
VMT
Reduction
Type
Provide an on-site car
vehicle for employees
to use for short trips.

This allows for
employees to run
errands or travel for
lunch.

Incentive 2% Commute
17 School Carpool
Program
Implements a school
carpool program to
encourage ride-sharing
for students.

Incentive 15% School
Bicycle Infrastructure Strategies
18 Bike Share Sign up for shared
bikes.

Incentive /
Infrastructure 7% All
19 Implement/Improve
On-street Bicycle
Facility
Implements or provides
funding for
improvements to
corridors and crossings
for bike networks
identified within a onehalf mile buffer area of
the project boundary, to
support safe and
comfortable bicycle
travel.

Infrastructure 4% All
20 Include Bike Parking
in excess of City
Code
Implements long-term
bicycle parking to
support safe and
comfortable bicycle
travel by providing
parking facilities at
destinations
Infrastructure 1%
All 21
Include Secure Bike
Parking and
Showers in excess
of City Code
Implements additional
end-of-trip bicycle
facilities to support safe
and comfortable bicycle
travel.

Infrastructure
2%
22 Bicycle Repair
Station / Services
On-site bicycle repair
tools and space to use
them supports on-going
use of bicycles for
transportation.

Infrastructure 1%

22.22 21 SB 743 Implementation
June 2020
City of Santa Cruz
TDM
Measure
#
Transportation
Demand
Management
Measure
Description TDM Type Max VMT
Reduction
VMT
Reduction
Type
Neighborhood Enhancement Strategies
23 Traffic Calming
Improvements
Implements traffic
calming measures
throughout and around
the perimeter of the
project site that
encourage people to
walk, bike, or take
transit within the
development and to the
development from
other locations.

Infrastructure 3% All
24 Pedestrian Network
Improvements
Implements pedestrian
network improvements
throughout and around
the project site that
encourages people to
walk.

Infrastructure 2% All
Miscellaneous Strategies
25 Virtual Care
Strategies for
Hospitals/Health
care
providers/MOB/Clinic
Resources to allow
patients to access
healthcare services or
communicate with
healthcare staff through
online or off-site
programs.

Infrastructure 5% Hospital
Visitors
26 On-site Affordable
Housing
Provides on-site
affordable housing in
excess of inclusionary
rates % of units is the
% reduction developer
can get.

Infrastructure TBD All
Parking Strategies
27 Reduce Parking
Supply
Changes on-site
parking supply to
provide less than the
amount required by
municipal code.

Permitted reductions
could utilize
mechanisms such as
TOC, Density Bonus,
Bike Parking
ordinance, or locating
in a Specific Plan Area.

Infrastructure 10.0% All

22.23 22 SB 743 Implementation
June 2020
City of Santa Cruz
TDM
Measure
#
Transportation
Demand
Management
Measure
Description TDM Type Max VMT
Reduction
VMT
Reduction
Type
28 Unbundle Parking
Unbundles parking
costs from property
costs, requiring those
who wish to purchase
parking spaces to do
so at an additional cost.

Implementation of
residential permit
parking zones for longterm use of on-street
parking in residential
area at the expense to
the developer.

Incentive 10% Residential
29 Parking Cash-Out
Provide employees a
choice of forgoing
current parking for a
cash payment to be
determined by the
employer. The higher
the cash payment, the
higher the reduction.

Incentive 5.0% Commercial
Only
30 Residential Area
Parking Permits Incentive 0.25%
Only in nonCoastal
Commission
areas
31 Parking
Management
Strategies
Strategies to
encourage efficiency in
parking facilities and
improve the quality of
service to parking
users
Incentive 1% Valet

22.24 1 SB 743 Implementation
June 2020
SB 743 Implementation Guidelines City
of Santa Cruz
May 12, 2022
Background
In 2013, SB 743 was signed into law by California Governor Jerry Brown with a goal of reducing Greenhouse Gas (GHG) emissions, promoting the development of infill land use projects and multimodal transportation networks, and to promote a diversity of land uses within developments. One significant outcome resulting from this statue is the removal of automobile delay and congestion, commonly known as level of service (LOS), as a basis for determining significant transportation impacts under the California Environmental Quality Act (CEQA).

The Governor’s Office of Planning and Research (OPR) selected Vehicle Miles Traveled (VMT) as the principal measure to replace LOS for determining significant transportation impacts. VMT is a measure of total vehicular travel that accounts for the number of vehicle trips and the length of those trips. OPR selected VMT, in part, because jurisdictions are already familiar with this metric. VMT is already used in CEQA to study other potential impacts such as GHG, air quality, and energy impacts and is used in planning for regional Sustainable Communities Strategies (SCS).

VMT also allows for an analysis of a project’s impact throughout the jurisdiction rather than only in the vicinity of the proposed project allowing for a better understanding of the full extent of a project’s transportation-related impact. It should be noted that SB 743 does not disallow an City of Santa Cruz to use LOS for other planning purposes outside the scope of CEQA.

Land Use Projects
An approach to identify transportation impacts under CEQA for land-use that closely align with guidance provided within the OPR Technical Advisory on Evaluating Transportation Impacts in CEQA (2018). While the OPR guidance related to SB 743 has been a helpful introduction to using VMT to evaluate projects, it does not provide a complete solution. There are a multitude of complex practical issues that are not addressed by the OPR guidance. OPR Guidance does not specifically address land uses beyond residential, office and retail, and it provides latitude on some elements of implementation. In response to this, a specific series of analysis steps for SB 743 project evaluation have been developed to clarify requirements and reduce potential confusion. Exhibit 1 provides a graphical representation of this analysis process.

22.25 2 SB 743 Implementation
June 2020
Exhibit 1 – Process for CEQA VMT Analysis for Land Use Projects Step 1
• Evaluate land use
Step 2
• Screen for non-signifcant transportation impact
Step 3
•Determine significance threshold and methodology
Step 4
• Scope of Analysis Agreement
Step 5
•Analysis and Mitigation
Step 6
• Mitigation Monitoring (if Required)

22.26 3 SB 743 Implementation
June 2020
Step 1: Evaluate Land Use Type
During the initial step the land use projects will need to be evaluated for the following considerations:
 Land use type. For the purposes of analysis, the Institute of Transportation Engineers (ITE) land use codes serve as the basis of land use definitions. Although it is recognized that VMT evaluation tools and methodologies are typically not fully sensitive to some of the distinctions between some ITE categories, the use of ITE land use codes is useful for maintaining consistency across analyses, determining trip generation for other planning level tools, and maintaining a common understanding of trip making characteristics amongst transportation professionals. The ITE land use code is also used as an input into the sketch planning tool.  Mixed Use. If there are multiple distinct land uses within the project (residential, office, retail, etc.), they will be required to be analyzed separately unless they are determined to be insignificant to the total VMT. Mixed use projects are permitted to account for internal capture which depending on the methodology may require a distinct approach not covered in this documentation.
 Redevelopment projects. As described under the Non-Significant Screening Criteria section, redevelopment projects which have lower VMT than the existing on-site use can be determined to have a non-significant impact.

Step 2: Screen for Non-Significant Transportation Impact The purpose of this step is to determine if a presumption of a non-significant transportation impact can be made on the facts of the project. The guidance in this section is primarily intended to avoid unnecessary analysis and findings that would be inconsistent with the intent of SB 743. A detailed CEQA transportation analysis will not be required for land use elements of a project that meet the screening criteria shown in Exhibit 2. If a project is mixed use in nature, only those elements of the project that do not comply with the elements in Exhibit 2 would require further evaluation to determine transportation significance for CEQA purposes.

22.27 4 SB 743 Implementation
June 2020
Exhibit 2 – Screening Criteria
Screening Criteria OPR Guidance
SMALL PROJECTS1 Expected to cause a less-than-significant impact:
 Project generation is less than 110 trips per day
CEQA transportation analysis required if:
 It is inconsistent with the Sustainable Communities Strategy as determined by the City of Santa Cruz

PROJECTS NEAR HIGH
QUALITY TRANSIT2
Expected to cause a less-than-significant impact:
 Within a ½ mile of an existing major transit stop.
 Maintains a service interval frequency of 15 minutes or less during the morning and afternoon peak commute periods.

CEQA transportation analysis required if:
 Has a Floor Area Ratio (FAR) of less than 0.75
 Includes more parking for use by residents, customers, or employees of the project than required by the City of Santa Cruz
 It is inconsistent with the Sustainable Communities Strategy as determined by the City of Santa Cruz
 Replaces affordable residential units with a smaller number of moderate- or high-income residential units

LOCAL-SERVING
RETAIL3
Expected to cause a less-than-significant impact:
 No single store on-site exceeds 50,000 square feet
 Project is local-serving as determined by the City of Santa Cruz CEQA transportation analysis required if:
 If the nature of the service is regionally focused as determined by the City of Santa Cruz

AFFORDABLE
HOUSING4
Expected to cause a less-than-significant impact:
1 2018 OPR Guidance, page 12
2 2018 OPR Guidance, page 13
3 2018 OPR Guidance, page 16
4 2018 OPR Guidance, page 14. As described, “Evidence supports a presumption of less than significant impact for a 100 percent affordable residential development (or the residential component of a mixed-use development) in infill locations. Lead agencies may develop their own

22.28 5 SB 743 Implementation
June 2020
Exhibit 2 – Screening Criteria
Screening Criteria OPR Guidance
 A high percentage of affordable housing is provided as determined by the City of Santa Cruz
CEQA transportation analysis required if:
 The percentage of affordable housing is determined by the City of Santa Cruz to not be high in relation to the residential element of a project

LOCAL ESSENTIAL
SERVICE5
Screening allowed if:
 Day care center
 Public K-12 School
 Police or Fire facility
 Medical/Dental office building
 Government offices (in-person services such as post office, library, and utilities)


MAP-BASED
SCREENING6
Expected to cause a less-than-significant impact:
 Area of development is under threshold as shown on screening map as allowed by City of Santa Cruz
CEQA transportation analysis required if:
 Represent significant growth as to substantially change regional travel patterns as determined by the City of Santa Cruz

REDEVELOPMENT
PROJECTS7
Expected to cause a less-than-significant impact:
 Project replaces an existing VMT-generating land use and does not result in a net overall increase in VMT
presumption of less than significant impact for residential projects (or residential portions of mixed-use projects) containing a particular amount of affordable housing, based on local circumstances and evidence.” 5 Based on assumption that, like local-serving retail, the addition of necessary local in-person services will reduce VMT given that trips to these locations will be made irrespective of distance given their non-discretionary nature. 6 2018 OPR Guidance, page 12
7 2018 OPR Guidance, Page 18
If the nature of the service is regionally focused as determined by the City of Santa Cruz
CEQA transportation analysis required if:
 Supportive Housing Types (assisted living, permanant supportive housing, memort care, etc)

22.29 6 SB 743 Implementation
June 2020
Exhibit 2 – Screening Criteria
Screening Criteria OPR Guidance
CEQA transportation analysis required if:
 Project replaces an existing VMT-generating land use and results in a net overall increase in VMT

22.30 7 SB 743 Implementation
June 2020
Step 3: Significance Threshold and Methodology
The purpose of this step is to determine the threshold of significance for application to a land use project. Significance thresholds are based on land use type, broadly categorized as efficiency and net change metrics. Efficiency metrics include VMT/Capita and Work VMT/employee8 . As described in Table
1, “Net Change” refers to the net change in regional VMT. “Net Change” is used for elements that include a significant customer base, such as commercial uses although it can extend to a variety of uses that have similar characteristics as shown in Exhibit 3.

Exhibit 3 - Significance Threshold and Methodology
Threshold Basis Efficiency Net Change
Example Land Use Residential, Professional Office,
Industrial
Retail, Medical Office, Sports
Venue
Example VMT Thresholds Per capita, per employee Region VMT change Customer Component No Yes
Allowable Methods
Non-Significant Screening Criteria,
The City of Santa Cruz Sketch
Planning Tool, Travel Demand
Model
Non-Significant Screening
Criteria, Travel Demand Model
For projects with a significant customer basis it is typically appropriate to separate employee trip characteristics from the customer base unless the customer base is minimal in nature. Under these circumstances, it is most appropriate to evaluate the total of the delta in regional VMT resultant from the customer base plus the delta of VMT resultant from employees based on the following formula:
(number of employees) x (estimated VMT/employee – threshold VMT/employee) The threshold of significance will accordingly correspond to the “Net Change” threshold as described in Exhibit 3. Under these circumstances, it is most appropriate to evaluate this total Net Change as the basis for evaluating the outcome of mitigations in terms of determining transportation significance although each element of the project should be tallied separately for the purposes of clarity.

8 Work VMT specifically applies to commute trips as represented by the attractions in the Travel Demand Model. Refer to Appendix A for additional information

22.31 8 SB 743 Implementation
June 2020
VMT Thresholds of Significance
OPR suggests a 15 percent VMT reduction relative to existing local or regional average VMT levels. The thresholds of significance recommended by OPR, as they relate to the City of Santa Cruz, are summarized in Exhibit 4.

Exhibit 4 - OPR suggested VMT Thresholds of Significance Land Use OPR Guidance9
Residential 15% below existing county-wide average VMT per capita Office 15% below existing county-wide average VMT per employee Retail Net increase in total VMT
Based on these criteria the VMT thresholds of significance shown in Exhibit 5 have been established.

Exhibit 5 - VMT Thresholds of Significance
Land Use VMT Threshold Basis
Residential 11.9 VMT/capita10 15% below existing county-wide average VMT per capita.

Office 6.4 Work VMT/Employee11 15% below existing county-wide average Work VMT per employee
Retail Net regional change Using the county as the basis Other
Employment Work VMT/Employee12 15% below existing county-wide average Work VMT per employee for similar land uses Other
Customer
Net regional change Using the county as the basis
Note that the inclusion of “Other Employment” and “Other Customer” refers to all other service and goods providers that are not included in the basic office/retail categories. As shown they follow a similar approach to the office/retail categories with the principal difference being that the average/basis for of the threshold would the aggregation of the specific “other” land use across the county (i.e. an industrial project would use industrial uses, etc.).

9 2018 OPR Guidance, Pages 15-16
10 Residential VMT specifically applies to all Home-Based trips residential trips as represented in the Travel Demand Model. Refer to Appendix A for additional information.
11 Work VMT specifically applies to commute trips as represented in the Travel Demand Model. Refer to Appendix A for additional information 12 Work VMT specifically applies to commute trips as represented in the Travel Demand Model. Refer to Appendix A for additional information

22.32 9 SB 743 Implementation
June 2020
Based on improvements to methods and data as well as other modeling modifications there will be periodic updates to the numerical threshold values shown, however the relative approach for calculating them should remain the same. The values in the current sketch planning tool, discussed in the next section, will supersede the information provided in the table above. Additional thresholds for various employment types are also provide in the sketch planning tool.

Sketch Planning Tool
The City of Santa Cruz has developed a sketch planning tool for use in SB 743 land use project analysis.

The purpose of the tool is to calculate VMT for a land use project. As with any sketch planning tool, there are distinct limitations in terms of its application including limits on the type and size of development that can be applied to. Note that it is anticipated that the tool will continue to evolve in response to data or methodological changes and as such it is important that the most current version of the tool be utilized. Broadly, the sketch planning tool provides the following information:
 Institute of Transportation Engineers (ITE) Trip Generation  VMT Threshold Analysis
 Greenhouse Gas (GHG) Estimation
 Transportation Demand Management (TDM) Evaluation
The VMT Analysis methodology is summarized in Appendix A.

Step 4: Scope of Analysis Agreement
Prior to undertaking VMT analysis, a scope compliant with the City of Santa Cruz’s requirements should be prepared and submitted for approval. Given the potential complexities of some uses, particularly those not identified as residential, retail, or office, an agreement regarding the threshold and methodology is important to avoid analysis that is not compliant with the City of Santa Cruz’s requirements.

Step 5: Analysis and Mitigation
During this step the analysis agreed to under Step 4 should be completed. Relevant documentation providing enough detail that assumptions are clearly understandable, and methods that can be replicated should be provided along with the results of the VMT analysis for the proposed project.

If a significant transportation impact is identified, feasible mitigation measures to avoid or reduce the impact must be identified. CEQA requires that the mitigation measures are included in the project’s environmental assessment. OPR provides a list of potential measures to reduce VMT but gives the lead City of Santa Cruz full discretion in the selection of mitigation measures.

The type and size of the project will determine the most appropriate mitigation strategies for VMT impacts. For large projects such as general plans or specific plans, VMT mitigations should concentrate on the project’s density and land use mix, site design, regional policies, and availability of transit, bicycle, and pedestrian facilities. For smaller projects such as an individual development project, VMT mitigations will typically require the preparation of a transportation demand management (TDM)

22.33 10 SB 743 Implementation
June 2020
program. A TDM program is a combination of strategies to reduce VMT. The program is created by an applicant for their land use project based on a list of strategies agreed to with the City of Santa Cruz.

The City of Santa Cruz has developed a list of potential TDM strategies appropriate for their jurisdiction and what magnitude of VMT reduction could be achieved. The selection process was guided by the California Air Pollution Control Officers Association (CAPCOA) recommendations found in the 2010 publication Quantifying Greenhouse Gas Mitigation Measures. The area context of the City of Santa Cruz also influenced the type of TDM strategies that were selected. CAPCOA has found strategies with the largest VMT reduction in rural areas include vanpools, telecommute or alternative work schedules, and master planned communities with design and land-use diversity to encourage intra-community travel.

Based on empirical evidence, CAPCOA found the cross-category maximum for all transportation-related mitigation measures is 15% for suburban settings.

Appendix B summarizes available TDM strategies along with the maximum VMT reduction, applicable land use application, and complementary strategies. The City of Santa Cruz’s sketch planning tool includes the TDMs summarized in Appendix B.

Step 6: Mitigation Monitoring
As required by CEQA, the City of Santa Cruz will require ongoing mitigation monitoring and reporting.

The specifics of this will be developed on a project basis.

Transportation Projects
Depending on the specific nature of a transportation project; it can alter trip patterns, trip lengths, and even trip generation. Research has determined that capacity-enhancing projects can and often do increase VMT. This phenomenon is commonly referred to as “induced demand”. While methods are generally less developed for the analysis of induced demand compared to other areas of transportation analysis, there is still the need to quantify and understand its impact to the transportation system considering the requirements of SB 743.

Similarly, to land use projects, the approach to transportation project analysis closely align with the 2018 OPR Guidance. In terms of analysis, the analyst should first determine whether the transportation project has been prescreened and determined to have a non-significant impact as described in the following section.

Screen for Non-Significant Transportation Impact
The following non-significant impact examples are provided directly from the 2018 OPR Guidance13:
 Rehabilitation, maintenance, replacement, safety, and repair projects designed to improve the condition of existing transportation assets (e.g., highways; roadways; bridges; culverts;  Transportation Management System field elements such as cameras, message signs, detection, or signals; tunnels; transit systems; and assets that serve bicycle and pedestrian facilities) and that do not add additional motor vehicle capacity

13 2018 OPR Guidance, Page 20

22.34 11 SB 743 Implementation
June 2020
 Roadside safety devices or hardware installation such as median barriers and guardrails  Roadway shoulder enhancements to provide “breakdown space,” dedicated space for use only by transit vehicles, to provide bicycle access, or to otherwise improve safety, but which will not be used as automobile vehicle travel lanes
 Addition of an auxiliary lane of less than one mile in length designed to improve roadway safety  Installation, removal, or reconfiguration of traffic lanes that are not for through traffic, such as left, right, and U-turn pockets, two-way left turn lanes, or emergency breakdown lanes that are not utilized as through lanes
 Addition of roadway capacity on local or collector streets provided the project also substantially improves conditions for pedestrians, cyclists, and, if applicable, transit  Conversion of existing general-purpose lanes (including ramps) to managed lanes or transit lanes, or changing lane management in a manner that would not substantially increase vehicle travel
 Addition of a new lane that is permanently restricted to use only by transit vehicles  Reduction in number of through lanes
 Grade separation to separate vehicles from rail, transit, pedestrians or bicycles, or to replace a lane in order to separate preferential vehicles (e.g., HOV, HOT, or trucks) from general vehicles  Installation, removal, or reconfiguration of traffic control devices, including Transit Signal Priority (TSP) features
 Installation of traffic metering systems, detection systems, cameras, changeable message signs and other electronics designed to optimize vehicle, bicycle, or pedestrian flow  Timing of signals to optimize vehicle, bicycle, or pedestrian flow  Installation of roundabouts or traffic circles
 Installation or reconfiguration of traffic calming devices  Adoption of or increase in tolls
 Addition of tolled lanes, where tolls are sufficient to mitigate VMT increase  Initiation of new transit service
 Conversion of streets from one-way to two-way operation with no net increase in number of traffic lanes
 Removal or relocation of off-street or on-street parking spaces  Adoption or modification of on-street parking or loading restrictions (including meters, time limits, accessible spaces, and preferential/reserved parking permit programs)

22.35 12 SB 743 Implementation
June 2020
 Addition of traffic wayfinding signage
 Rehabilitation and maintenance projects that do not add motor vehicle capacity  Addition of new or enhanced bike or pedestrian facilities on existing streets/highways or within existing public rights-of-way
 Addition of Class I bike paths, trails, multi-use paths, or other off-road facilities that serve nonmotorized travel
 Installation of publicly available alternative fuel/charging infrastructure  Addition of passing lanes, truck climbing lanes, or truck brake-check lanes in rural areas that do not increase overall vehicle capacity along the corridor Significance Threshold and Methodology
For projects that increase roadway capacity and are not identified under the Non-Significant Screening Criteria in the prior section, the significance criterion should be change in regional VMT. A finding of a significant impact would be determined if a transportation project results in a net increase in regional VMT.

22.36 13 SB 743 Implementation
June 2020
Appendix A
VMT Analysis Methodology
Travel Demand Models (TDMs) are broadly considered to be amongst the most accurate of available tools to assess regional and sub-area VMT. While the Association of Monterey Bay Area governments (AMBAG) maintains the regional travel demand model as a part of the Metropolitan Transportation Plan/Sustainable Communities Strategy program (MTP/SCS), Santa Cruz County maintains its own travel demand model (SCC TDM) as part of the General Plan. The latest available version of the SCC TDM was developed as part of the 2020 General Plan update was determined to be the best fit for developing the VMT thresholds as it has the most up to date land use information for the County, as well as detailed roadway and transit networks in the model.

The 2019 Base Year model scenario was used for the baseline conditions and 2040 Future Year model scenario was used for the cumulative conditions in the City. The four incorporated cities included in the model (City of Capitola, City of Santa Cruz, City of Scotts Valley, and the City of Watsonville) are major contributors of the trips throughout the County during a typical weekday.

As many of the County’s daily trips originate from or are destined for areas outside of the County such as the Bay area and Monterey County (external trips), their total length could not be computed solely using the SCC TDM, additional analysis was required. The length of these trips was determined using two main processes, using Big Data and SCC TDM output files. Data was obtained from Teralytics that summarized the number of trips to and from the County to the surrounding Counties at the Census Tract level for the entire month of October 2019. The distance between each Census Tract was determined by using the TransCAD software, the modeling platform the SCC TDM runs on. The multipath analysis function within the TransCAD software was used to determine the point to point distance between the centroid of each Census Tract using the internal pathing algorithm that determines the shortest path along the roadway network between the centroid of each Census Tract pair. The shortest path between each County Census Tract and each non-County Census Tract that contained at least one trip was multiplied by the share of the total trips to and from each Census Tract within the County to determine the average trip length to and from the County Census Tract. The average trip length was applied to each TAZ based on the TAZ to Census Tract association and multiplied by the number of externa trips to and from that TAZ to determine the total external VMT by TAZ.

However, before beginning the Countywide VMT analysis, the zonal structure and various components of the SCC TDM were thoroughly reviewed to make the best use of model results to determine the VMT thresholds.

Model Zone Structure
VMT was computed at Traffic Analysis Zone (TAZ) level to determine the thresholds as well as to allow for comparisons among different areas throughout the County. There are 696 TAZs within the County, including 364 TAZs within the unincorporated parts of the County.

Socio-Economic Data
Socioeconomic data (SED) and other model inputs are associated with each TAZ. Out of several different variables in the model SED, the VMT analysis mainly focused on population, the number of households, the number of students, and types of employment that are used in the trip generation component. VMT

22.37 14 SB 743 Implementation
June 2020
computation was focused on the number of households in each TAZ and employment variables by 6 industries to determine rest of the trips. Employment variables used in the model are listed below.

Employment by Industry type:

1. Agriculture

2. Construction

3. Industrial and Manufacturing

4. Retail and Food

5. Service (White Collar, non-government jobs)

6. Public Administration (Government jobs)
Trip Generation
The SCC TDM runs a series of complex steps to estimate daily trip productions and attractions by various trip purposes for each TAZ. The trip purposes are listed below.

Model Trip Purpose:

1. Home-Based Work (HW)

2. Home-Based Other (HO)

3. Home-Based School, K-12 (HK)

4. Home-Based College (HC)

5. Home-Based Shopping (HS)

6. Work-Based Other (WO)

7. Other-Based Other (OO)
The production model uses several variables such as number of workers, household income, age, household size and car availability depending on the trip purpose. Trip productions for every TAZ in the model were compiled separately by each trip purpose. The attraction model uses employment categories for the HW trip purpose, whereas it uses the employment categories and number of students (K-12 and University) for all non-HW trip purposes. The attraction model estimates trip attractions to each TAZ by regression coefficients that vary by employment type. Trip attractions for every TAZ were compiled by each purpose and by each employment type based on these regression coefficients.

22.38 15 SB 743 Implementation
June 2020
Person Trips, Vehicle Occupancy, Trip Distance
Trip productions and attractions were compiled after the mode choice step, and only auto trips were used for the analysis. After the vehicle trip productions and attractions were computed for each trip purpose, trip lengths were applied for each zone pair from the skim matrices in the model to compute the production and attraction VMT by purpose.

VMT by Land Use Type
The residential VMT was computed by combining the production VMT for all the Home-Based trip purposes. VMT for non-residential land uses was computed from the attraction VMT by appropriate trip purposes and regression coefficients used in the attraction model.

Residential and non-residential VMT by each TAZ were computed and average VMT were determined by City, County and Region levels to determine City’s thresholds.

22.39 16 SB 743 Implementation
June 2020
Appendix B
City of Santa Cruz
TDM
Measure
#
Transportation
Demand
Management
Measure
Description TDM Type Max VMT
Reduction
VMT
Reduction
Type
Transit Strategies
1 Transit Stops
Coordinate with local
transit agency to
provide bus stop near
the site. Real time
transportation
information displays
support on-the-go
decision making to
support sustainable trip
making. Only get a
reduction on a nonHQT line, cannot get
both.

Infrastructure 3% All
2 Safe and Well-Lit
Access to Transit
Enhance the route for
people walking or
bicycling to nearby
transit (typically offsite). Provide
Emergency 911
phones along these
routes to enhance
safety.

Infrastructure 1% All
3 Implement
Neighborhood
Shuttle
Implement projectoperated or projectsponsored
neighborhood shuttle
serving residents,
employees, and visitors
of the project site
Incentive 5% All
4 Transit Subsidies
Involves the
subsidization of transit
fare for residents and
employees of the
project site. This
strategy assumes
transit service is
already present in the
project area. Incentive 5% All
Pays for employees to
use local transit. This
could either be a
discounted ticket or a
full-reimbursed transit
ticket. Include Trolley
considerations.

22.40 17 SB 743 Implementation
June 2020
City of Santa Cruz
TDM
Measure
#
Transportation
Demand
Management
Measure
Description TDM Type Max VMT
Reduction
VMT
Reduction
Type
Communication & Information Strategies
5 Mandatory Travel
Behavior Change
Program
Involves the
development of a travel
behavior change
program that targets
individuals’ attitudes,
goals, and travel
behaviors, educating
participants on the
impacts of their travel
choices and the
opportunities to alter
their habits. Provide a
web site that allows
employees to research
other modes of
transportation for
commuting. Employeefocused travel behavior
change program that
targets individuals
attitudes, goals, and
travel behaviors,
educating participants
on the impacts of their
travel choices and the
opportunities to alter
their habits.

Incentive
4%
All
6 Promotions &
Marketing
Involves the use of
marketing and
promotional tools to
educate and inform
travelers about sitespecific transportation
options and the effects
of their travel choices
with passive
educational and
promotional materials.

Marketing and public
information campaign
to promote awareness
of TDM program with
an on-site coordinator
to monitor program.

Incentive All

22.41 18 SB 743 Implementation
June 2020
City of Santa Cruz
TDM
Measure
#
Transportation
Demand
Management
Measure
Description TDM Type Max VMT
Reduction
VMT
Reduction
Type
Commuting Strategies
7 Employer Sponsored
Vanpool or Shuttle
Implementation of
employer-sponsored
employee vanpool or
shuttle providing new
opportunities for
access to connect
employees to the
project site.

Incentive /
Infrastructure 5% Commute
8 Preferential Carpool
/ Vanpool Parking
Spaces
Reserved carpool /
vanpool spaces closer
to the building
entrance.

Infrastructure 1%
9 Passenger Loading
Zones for Carpool /
Vanpool
Provide easy access
for carpools or
vanpools.

Infrastructure 1%
10 On-site Carts or
Shuttles or bikes
Provide on-site cart or
shuttle for employees
to travel across
campus.

Incentive /
Infrastructure 2% All
11 Emergency Ride
Home (ERH)
Program
Provides an occasional
subsidized ride to
commuters who use
alternative modes.

Guaranteed ride home
for people if they need
to go home in the
middle of the day due
to an emergency or
stay late and need a
ride at a time when
transit service is not
available. Ecology
Action is preferred
vendor. This
supplemental to the
other trip reduction
strategies. ADD to 5
and 6
Incentive 4% Commute
12 On-site Childcare
Provides on-site
childcare to remove the
need to drive a child to
daycare at a separate
location.

Infrastructure 4% All

22.42 19 SB 743 Implementation
June 2020
City of Santa Cruz
TDM
Measure
#
Transportation
Demand
Management
Measure
Description TDM Type Max VMT
Reduction
VMT
Reduction
Type
13 Telecommuting
Four-Ten work
schedule results in
20% weekly VMT
reduction, 10% trip
reduction equals 15%
VMT reduction
20%
14 Alternative work
schedule
Alternative Fridays off
(Nine-Ten schedule)
Shared Mobility Strategies
15 Mandatory Ride
Amigos-Share
Program
Increases vehicle
occupancy by providing
ride-share matching
services, designating
preferred parking for
ride-share participants,
designing adequate
passenger
loading/unloading and
waiting areas for rideshare vehicles, and
providing a website or
message board to
connect riders and
coordinate rides. Need
a point person form the
business on-site
Incentive 10% Commute
16 Employee/Employer
Car Share
Implement car sharing
to allow people to have
on-demand access to a
vehicle, as-needed.

This may include
providing membership
to an existing program
located within 1/4 mile,
contracting with a thirdparty vendor to extend
membership-based
service to an area, or
implementing a projectspecific fleet that
supports the residents
and employees on -
site.

Incentive 1% All

22.43 20 SB 743 Implementation
June 2020
City of Santa Cruz
TDM
Measure
#
Transportation
Demand
Management
Measure
Description TDM Type Max VMT
Reduction
VMT
Reduction
Type
Provide an on-site car
vehicle for employees
to use for short trips.

This allows for
employees to run
errands or travel for
lunch.

Incentive 2% Commute
17 School Carpool
Program
Implements a school
carpool program to
encourage ride-sharing
for students.

Incentive 15% School
Bicycle Infrastructure Strategies
18 Bike Share Sign up for shared
bikes.

Incentive /
Infrastructure 7% All
19 Implement/Improve
On-street Bicycle
Facility
Implements or provides
funding for
improvements to
corridors and crossings
for bike networks
identified within a onehalf mile buffer area of
the project boundary, to
support safe and
comfortable bicycle
travel.

Infrastructure 4% All
20 Include Bike Parking
in excess of City
Code
Implements long-term
bicycle parking to
support safe and
comfortable bicycle
travel by providing
parking facilities at
destinations
Infrastructure 1%
All 21
Include Secure Bike
Parking and
Showers in excess
of City Code
Implements additional
end-of-trip bicycle
facilities to support safe
and comfortable bicycle
travel.

Infrastructure
2%
22 Bicycle Repair
Station / Services
On-site bicycle repair
tools and space to use
them supports on-going
use of bicycles for
transportation.

Infrastructure 1%

22.44 21 SB 743 Implementation
June 2020
City of Santa Cruz
TDM
Measure
#
Transportation
Demand
Management
Measure
Description TDM Type Max VMT
Reduction
VMT
Reduction
Type
Neighborhood Enhancement Strategies
23 Traffic Calming
Improvements
Implements traffic
calming measures
throughout and around
the perimeter of the
project site that
encourage people to
walk, bike, or take
transit within the
development and to the
development from
other locations.

Infrastructure 3% All
24 Pedestrian Network
Improvements
Implements pedestrian
network improvements
throughout and around
the project site that
encourages people to
walk.

Infrastructure 2% All
Miscellaneous Strategies
25 Virtual Care
Strategies for
Hospitals/Health
care
providers/MOB/Clinic
Resources to allow
patients to access
healthcare services or
communicate with
healthcare staff through
online or off-site
programs.

Infrastructure 5% Hospital
Visitors
26 On-site Affordable
Housing
Provides on-site
affordable housing in
excess of inclusionary
rates % of units is the
% reduction developer
can get.

Infrastructure TBD All
Parking Strategies
27 Reduce Parking
Supply
Changes on-site
parking supply to
provide less than the
amount required by
municipal code.

Permitted reductions
could utilize
mechanisms such as
TOC, Density Bonus,
Bike Parking
ordinance, or locating
in a Specific Plan Area.

Infrastructure 10.0% All

22.45 22 SB 743 Implementation
June 2020
City of Santa Cruz
TDM
Measure
#
Transportation
Demand
Management
Measure
Description TDM Type Max VMT
Reduction
VMT
Reduction
Type
28 Unbundle Parking
Unbundles parking
costs from property
costs, requiring those
who wish to purchase
parking spaces to do
so at an additional cost.

Implementation of
residential permit
parking zones for longterm use of on-street
parking in residential
area at the expense to
the developer.

Incentive 10% Residential
29 Parking Cash-Out
Provide employees a
choice of forgoing
current parking for a
cash payment to be
determined by the
employer. The higher
the cash payment, the
higher the reduction.

Incentive 5.0% Commercial
Only
30 Residential Area
Parking Permits Incentive 0.25%
Only in nonCoastal
Commission
areas
31 Parking
Management
Strategies
Strategies to
encourage efficiency in
parking facilities and
improve the quality of
service to parking
users
Incentive 1% Valet

22.46 City Council

AGENDA REPORT
DATE: 06/03/2022
AGENDA OF: 06/14/2022
DEPARTMENT: Public Works
SUBJECT: West Cliff Stairs Rehabilitation (m401402) - Approve Change Order (PW) RECOMMENDATION: Motion to approve a change order with Tom Ralston Concrete (Santa Cruz, CA), to improve ocean access at Steamer Lane. 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 project budget.

BACKGROUND: In 2021, Tom Ralston Concrete (TRC) was hired to rehabilitate the access stairs from West Cliff Drive to the water at Steamer Lane. The stairs were completed by November 2021but there was a suggestion that a concrete path could be constructed to improve ocean access from the bottom of the stairs through the rip-rap to the water’s edge. Access to the water at this location, even with the stairs in place, has been treacherous for some time as people had to scramble down the rip-rap with no defined pathway. The surfer organization, Save the Waves, pledged to donate $17,500 to the City of Santa Cruz in order for these improvements to take place.

DISCUSSION: While the stairs themselves were completed in November 2021, the construction of the ‘stepping pads’ was delayed because the construction would be dictated by both tides and sea state. In April, TRC had a window of opportunity to complete the ‘stepping pads’ (i.e. flat sea state and a minus low tide), but the work was more involved and more material was used than originally contemplated. As a result, the purchase order went over the $100,000 limit for a minor contract and now requires approval by the City Council.

FISCAL IMPACT: The project will have a final cost of $111,600 and is funded by FY 2022 Capital Investment Program (CIP) project, West Cliff Stair Repair (m401402). Save the Waves contributed $17,500 to the project. There is no additional impact to the General Fund.

Prepared By:

Josh Spangrud
Senior Professional Engineer
Submitted By:

Mark R. Dettle
Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

23.1 City Council

AGENDA REPORT
DATE: 06/03/2022
AGENDA OF: 06/14/2022
DEPARTMENT: Economic Development
SUBJECT: Cooperative Retail Management Business Real Property Improvement District Assessments for FY 2023 (ED)
RECOMMENDATION: Resolution confirming the Cooperative Retail Management Business Real Property Improvement District Annual Plan FY 2023 and levying Cooperative Retail Management Business Real Property Improvement District Assessments for FY 2023.

BACKGROUND: On February 8, 1994 the City Council adopted Ordinance 94-06 adding Chapter 5.06 to the Santa Cruz Municipal Code establishing the Cooperative Retail Management Business Real Property Improvement District (District) and levying assessments on the properties along Pacific Avenue pursuant to the Parking and Business Improvement Area Law of 1989 for the purpose of establishing a Downtown Hospitality Program. The City Council approved the Downtown Management Corporation (DMC) as an advisory board to make recommendations on the expenditure of revenues collected from the assessment. In 1996, the area was expanded to include side streets between Cedar and Front Streets and some downtown alleyways including Lincoln-Cathcart, Pacific-Front, Pearl Alley, Plaza Lane, Locust Lane, Commerce Lane, Elm Lane, and Birch Lane.

DISCUSSION: On May 24, 2022 the City Council approved the DMC FY 22/23 Annual Report/Plan and adopted a resolution stating its intention to levy business improvement assessments for FY 2023.

The assessments for FY 2023 are based upon the linear foot frontage, lot size and building size of the real property used for commercial or business purposes within the District. For property fronting Pacific Avenue, the rates are $6.35 per linear foot, $.07 per lot square foot and $.05 per building square foot. The rate per linear foot is $4.75, $.07 per lot square foot and $.05 per building square feet for property with frontage on side streets and alleys as follows: between Cedar and Front Streets and located on Soquel Avenue; Locust, Cooper, Church, Walnut, Lincoln, Cathcart, Elm and Maple Streets; Plaza, Locust, Commerce, Elm and Birch Lanes; Pearl Alley; Lincoln-Cathcart and Pacific-Front alley ways. Rental residential property is assessed at a discounted rate of $.025 per building square foot. If a property borders Pacific Avenue, a side street and an alley in the CRM District, the alley side will not be assessed (in other words, no more than two sides will be used in the assessment methodology).

The Resolution of Intention was published in the Sentinel and mailed to affected property owners as required by State law.

24.1 At the public hearing portion of this meeting, City Council shall hear and consider written and oral protests pertaining to the proposed levy of assessments, the amount of the proposed assessments, the proposed improvements and activities to be funded with the revenues derived from the proposed levy of assessments, and/or the proposed boundaries of the District in accordance with State & Highways Code Sections 36524 and 36525.

At the conclusion of the public hearing, absent the receipt of written ballots from property owners casting a majority vote against the proposed assessment, Council is requested to adopt a resolution confirming the DMC's plan, as approved by the Council on May 24, 2022.

FISCAL IMPACT: The City owns property within the boundaries of the District. The assessment is $41,749.93 for the City properties. The City also contributes $16,500 from kiosk rentals and sidewalk license areas and $10,000 from Economic Development towards the downtown cleaning contract.

Prepared By:

Rebecca Unitt
Economic Development
Manager
Submitted By:

Bonnie Lipscomb
Director of Economic
Development
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

24.2 RESOLUTION NO. NS-29,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ CONFIRMING THE FISCAL YEAR 2023 COOPERATIVE RETAIL MANAGEMENT

BUSINESS REAL PROPERTY IMPROVEMENT DISTRICT ASSESSMENTS

AND THE ANNUAL REPORT/PLAN FOR THE DISTRICT
WHEREAS, the Downtown Management Corporation has prepared a report to the City of Santa Cruz for FY 23 pertaining to the business improvement area assessments for the Cooperative Retail Management Business Real Property Improvement District (the "District") under California Streets and Highways Code Section 36533 and Santa Cruz Municipal Code Chapter 5.06; and WHEREAS, that report was filed with the City Clerk on May 6, 2022; and WHEREAS, on May 24, 2022 the City Council adopted Resolution No. NS-29,989 stating its intention to levy business improvement assessments for FY 2023; and WHEREAS, pursuant to the City Council's May 24, 2022 resolution of intention, the City Council, on June 14, 2022 in accordance with California Streets and Highways Code Section 36535, held a public hearing as provided for in Streets and Highways Code Sections 36524 and 36525 at which time it considered the annual report, and the levy of business improvement assessments for FY 2023.

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

1. The FY 2023 Cooperative Retail Management Business Real Property Improvement District Area Annual Plan filed by the Downtown Management Corporation of Santa Cruz, a California nonprofit corporation ("DMC"), with the City Clerk on May 24, 2022 is hereby confirmed.

2. The adoption of this resolution shall constitute the FY 2023 levy of assessment provided for in Chapter 5.06 of the Santa Cruz Municipal Code pertaining to the downtown business improvement area zone and rate of the Cooperative Retail Management business real property improvement assessments.

PASSED AND ADOPTED this 14th day of June, 2022, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ________________________
Mayor
ATTEST: ___________________________
City Clerk Administrator

24.3 City Council

AGENDA REPORT
DATE: 06/03/2022
AGENDA OF: 06/14/2022
DEPARTMENT: Economic Development
SUBJECT: Downtown Association: Parking and Business Improvement Area Assessments for FY 2023 (ED)
RECOMMENDATION: Resolution confirming the Parking and Business Improvement Area FY 2023 Plan prepared by the Downtown Association and levying the Parking and Business Improvement Area Assessments for FY 2023.

BACKGROUND: At its May 24, 2022 meeting, the City Council approved the annual plan prepared by the Downtown Association for FY 2023. In addition, the City Council adopted a resolution stating its intention to levy Parking and Business Improvement Area Assessments for FY 2023, and scheduled a public hearing for June 14, 2022, in accordance with state law.

Additionally, in June 2019 the City and DTA began working with Progressive Urban management Associations (P.U.M.A.) to facilitate a strategic plan for the Downtown. Following community outreach events, stakeholder interviews, and a community survey, PUMA recommended the creation of a Property Based Improvement District (PBID) that would replace the DTA and Downtown Management Corporation. This process was put on hold due to the impacts of COVID-19, but there is still interest on the part of the DTA in revisiting plan.

DISCUSSION: At the June 14, 2022 public hearing, written and oral protests may be made in accordance with State Streets & Highways Code Sections 36524 and 36525 regarding the levy of the business improvement assessments. The Downtown Association’s annual plan proposes no change in the assessment area for FY 2023; however the per square foot rate of assessment will increase from $0.43 to $0.45 based on the Consumer Price Index adjustment allowed in the assessment formula.

At the conclusion of the public hearing, absent a majority protest, staff recommends that Council adopt a resolution confirming the Downtown Association’s plan. The resolution shall also constitute a levy of the parking and business improvement assessments for FY 2023.

FISCAL IMPACT: There is no fiscal impact to the City. Revenues collected from the assessment are turned over to the Downtown Association to be spent for promotional activities in the Parking and Business Improvement Area.

25.1 Prepared By:

Rebecca Unitt
Economic Development
Manager
Submitted By:

Bonnie Lipscomb
Director of Economic
Development
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

25.2 RESOLUTION NO. NS-XX,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ

CONFIRMING THE DOWNTOWN PARKING AND BUSINESS IMPROVEMENT AREA

ANNUAL PLAN AND LEVYING BUSINESS IMPROVEMENT ASSESSMENTS FOR FISCAL YEAR 2023
WHEREAS, the Downtown Association has prepared an annual plan to the City of Santa Cruz for fiscal year 2023 pertaining to the Downtown Parking and Business Improvement Area Assessments for the Downtown Association Parking and Business Improvement Area under California Streets and Highways Code §36533; and
WHEREAS, that annual plan was filed with the City Clerk; and WHEREAS, the City Council on May 24, 2022 adopted Resolution No. NS-29,988 stating its intention to levy business improvement assessments for FY 2023; and WHEREAS, pursuant to City Council’s May 25, 2021 Resolution of Intention, the City Council on June 14, 2022 in accordance with California Streets and Highways Code §§36535 and 36541, held a public hearing as provided for in Streets and Highways §§36524 and 36525, at which time it considered the annual report and the levy of business improvement assessments for FY 2023; and
WHEREAS, at said public hearing, the City Council considered all protests to the annual levy of the business improvement assessments.

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

1. The Downtown Parking and Business Improvement Area Annual Plan for FY 2023 filed by the Downtown Association of Santa Cruz with the City Clerk, is hereby confirmed by the City Council.

2. The City Council hereby finds that the formula for assessment established pursuant to Santa Cruz Municipal Code §5.05.040 is a reasonable estimate of the benefits derived by the categories of business classified therein. The City Council finds said businesses derive substantial benefit from the improvements and promotional events funded by the assessment, which make the business improvement zone a cleaner, safer, more enjoyable and more economically viable place to conduct business. The formula contained at §5.05.040 is hereby found to constitute a reasonable means of allocating said estimated benefit, by taking into account: (1) the type of business operation; (2) the location and; (3) the size of the operation.

25.3 RESOLUTION NO. NS-XX,XXX
2 3. The adoption of the resolution shall constitute fiscal year 2023 levy of assessment provided for in Chapter 5.05 of the Santa Cruz Municipal Code pertaining to downtown parking and business improvement area zones and rate of business promotion assessments.

PASSED AND ADOPTED this 14th day of June, 2022 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

25.4 City Council

AGENDA REPORT
DATE: 06/03/2022
AGENDA OF: 06/14/2022
DEPARTMENT: City Clerk
SUBJECT: Parks and Recreation Commission Appointment (CC) RECOMMENDATION: Appoint one member to the Parks and Recreation Commission, with a term ending January 31, 2023.

BACKGROUND: Due to a resignation, the Parks and Recreation Commission has a vacancy.

DISCUSSION: The following people are seeking appointment:

Bradley Angell
Deborah Christie
Jorge Leonardo Cruz
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:

1. APPLICATIONS.PDF

26.1 26.2

26.3 26.4
Bradley E. Angell, Resume, Page 2 of 4
* Direct lead on many “rough order of magnitude” ROM investigations for complex on-campus capital improvements, including an Arts program update, an update of the Quarry Amphitheater for staff support, and the renovation of the Communications building to better support both the Film & Digital Media’s academic program alongside ITS’s server/help-desk functions.

Sustainability Analyst, Santa Clara County, Facilities and Fleet, San Jose, California; January 2017 – April 2019 * Lead administrator for a municipal solid waste operations contract procurement planned to be 5 to 10 years, budgeted for just under $1 million per year and planned to manage all resource recovery requirements for County facilities. * Planned and administered $80,000 contract procurement of a research, information services, and environmental resource analysis consultant to advance objectives of the Sustainability Master Plan that began August 2017. * Developed energy generation, storage, and efficiency programs with training focused on meeting Zero Net Energy goals. * Researched, negotiated, and drafted the currently adopted Santa Clara County-wide Zero Carbon resolution. * Lead research and coordinating agent for innovative now-adopted county-wide Sustainability Master Plan. * Co-lead and stakeholder coordinator in the development of a county-wide sustainable county working group. * Investigated, designed and administered new internship position to advance a regional resilience advisory committee that included a major local agricultural element, beginning in June and lasting until June 2018. * Staff writing and reporting to Board of Supervisor Housing, Land Use, Environment and Transportation committee. * Developed enhanced greenhouse gas and energy intensity reducing practices on a County-wide basis to advance goals directly related to municipal and community climate action plans. * Lead representative for the Bay Area Regional Energy Network (BayREN) Codes & Standards program. * Developed Title 24, Part 6 building code programs and training focused on executing widespread adoption of Zero Net Energy design objectives, exceeding energy code compliance per project, improving code cycle update language, and developing arduous model ordinance policy throughout the nine counties of the SF Bay Area.

Senior Management Analyst, City of Palo Alto, Palo Alto, California; November 2016 - December 2016 * Primary budget manager for Development Services department managing all building permitting and inspection services. * Departmental strategic planner charged with transitioning organization from general fund to enterprise fund operation.

Senior Administrative Analyst, University of California, Santa Cruz, California; September 2012 - October 2016 * Heavily supported campus-wide grounds operations management (15+ employees) including Integrated Pest Management staff activities.
* Authorship of primary business plan for $1.5+ million annual budget for zero-waste operations at UC Santa Cruz. * Solicited, reviewed, and primary contract administrator for +$100,000 annual contract for dumpster sensor technology. * Primary contract administrator, lead technician, and information services analyst for front-loader truck scale system. * Execution of new business plan in July 2015 based on an alternative election conducted at the Vice-Chancellor level whereby seven proposals defined in a pro forma format for a six-year project timeline were thoroughly reviewed. * Lead designer and implementation agent of innovative weight-based digital resource metrics system including hardware coordination, operational mapping, web design, software programming and integrated data management. * Directed programming of $13 million, six-acre on-campus Resource Recovery Facility including space planning, all major equipment specification, and production of first generation to-scale schematic models. * Regular expert speaker on behalf of UC Santa Cruz regarding the implementation of the campus’s novel digital framework for the Physical Plant’s sustainable, complex and innovative Refuse & Recycling operation. * Received STAR (Staff Appreciation & Recognition) Award four years in a row on May 24, 2013, June 6, 2014, June 8, 2015, and recently on May 9, 2016 in acknowledgment of demonstrated excellence in customer service, exceptional performance, innovation and creative thinking.

Project Coordinator, HPC Architecture, Inc., Santa Clara, California; May 2008 - November 2010 * Active sustainable design, extensive local regulatory compliance, construction administration and project management for commercial and mixed-use clients to secure timely project delivery in the San Francisco Bay Area. * Select projects include: SORAA LED Research & Production Laboratory, Fremont, California (80,000 sq.ft.); First Solar Research & Testing Facility, Santa Clara, California (110,000 sq.ft.); Umbarger Square Shell & Tenant Improvement Project, San Jose, California (120,000 sq.ft.); Façade Redesign, 331 Commercial Street, San Jose, California (30,000 sq.ft.). * Internal business publications production including: Applying Americans with Disability Act under the California Building Code Checklist; Design and installation of company website and bi-monthly newsletter; Updated “General Specifications” for HPC Architecture drawing sets; Updated standard fee and retainer agreements.

26.5 Bradley E. Angell, Resume, Page 3 of 4
Project Coordinator, Graduate Research Assistant, Center for Health Systems & Design, Texas A&M University, College Station, Texas; September 2005 - May 2006, then January 2008 - May 2008 * Analysis and synthesis of extensive National Institutes of Health environmental design study coordinating findings from over 30 senior living communities based on 1,600 resident surveys throughout the United States, including the Chicago, Houston, and Seattle metropolitan areas.
* Worked directly under Dr. Susan Rodiek in the production of multi-media Access to Nature presentation materials, including cinematic, web, and print materials focused on improving the design of assisted-living facilities.

Associate Attorney, Law Office of James C. Kuppenbender, Sacramento, California; July 2007 - January 2008 * Counsel in general law practice primarily focused on real property, planning, environmental and business law. * Direct representation in case types including corporate counsel for small construction industry clients, MTBE tort litigation on behalf of a major property management client, counsel for property developers in local government disputes, and general lien enforcement/defense for small construction industry clients.

Assistant Planner, City of Sacramento, Sacramento, California; November 2006 - June 2007 * Planning and land use coordination under Senior Planner Jeanne Corcoran on the Central City Geographic Team. * Interpretation, application and consultation for permit seekers as to the zoning, building and regulatory law compliance.

Intern, Brazos Valley Solid Waste Management Agency, College Station, Texas; April 2005 - September 2005 * Supported the local agency’s recycling, composting and gardening programs for the Bryan-College Station community. * Led composting and environmental policy presentations at exhibitions, events and environmental courses. * Assisted in the administration of hazardous waste management, landfill operations, and high-tech waste disposal.

Environmental Scientist II, Jones & Stokes Associates (now ICF International), Sacramento, California; March 2002 - August 2004
* Collaborated with like professionals including landscape architects, planners, engineers and fellow attorneys for land use and environmental policy solutions for both public and private sector clients. * Primary author on multitude of California Environmental Quality Act documents and their accompanying natural resource alteration permit applications (CWA § 401 Wetland Permits, DFG §1600 Streambed Alt. Agreement, etc.). * Project coordinator, contract administrator, and supportive co-author on environment resource management plans for major clients, including Integrated Pest Management Plans for regional Sonoma County wineries. * Clients included: City of Quincy, California; Lower Northwest Interceptor District; Peter Michael Winery, Calistoga, California; Port of Stockton, California; Mare Island, Vallejo, California.

CONFERENCES & LECTURE PRESENTATIONS
2015 Speaker, Urbanism Against Marginalization: Revisiting the Common-Interest Development as a Vessel for Minor Architectural Production. November 3-5, ARCHTHEO ’15: Theory and History of Architecture Conference Series, Istanbul, Turkey.
2015 Speaker, Weight-based Metrics for Zero Waste 2020: Innovations in Automation Critical to Waste Diversion.

October 27, Association for the Advancement of Sustainability in Higher Education, Minneapolis, Minnesota. 2015 Poster (Invited), Embracing the Silos: The Benefits of Disciplinary Purity in Achieving Campus Sustainability in Waste Reduction. October 26, Association for the Advancement of Sustainability in Higher Education, Minneapolis, Minnesota.
2014 Speaker, Best Management Practices: Real-Time Waste Metrics for Weight Based Recharge and Diversion, California Higher Education Sustainability Conference. June 18, University of California, San Diego, California. 2014 Speaker, Smart Dumpster: Employing Python to Report Real-Time Resource Fill to Operational Managers.

PyCon 2014. April 13, Python Software Foundation, Montreal, Quebec. 2012 Speaker, Minor Architecture as Planning Design: Urban-Architectural Design for Communities Facing Disenfranchisement. International Conference-Workshop on Sustainable Architecture & Urban Design. March 3, Penang, Malaysia.
2011 Speaker, Minor Architecture as Design Practice: Environmental Justice and the Politics of Urban Modernization. International Conference on the Constructed Environment. October 29, Chicago, Illinois.

26.6 Bradley E. Angell, Resume, Page 4 of 4

AWARDS, HONORS & GRANTS
2016 Staff Appreciation & Recognition [STAR] Award ($750), Physical Plant, University of California, Santa Cruz 2015 Staff Appreciation & Recognition [STAR] Award ($870), Physical Plant, University of California, Santa Cruz 2014 Energy Efficiency and Sustainability Best Practice Award, University of California, Santa Cruz, Real-time Waste Metrics for Weight Based Recharge and Diversion, California Higher Education Sustainability Conference 2014 Staff Appreciation & Recognition [STAR] Award ($650), Physical Plant, University of California, Santa Cruz 2013 Staff Appreciation & Recognition [STAR] Award ($620), Physical Plant, University of California, Santa Cruz 2012 International Conference Travel Grant ($500), College of Architecture, Texas A&M University 2009 Romenic Traveling Grant for Architectural Research ($8,000), College of Architecture, Texas A&M University 2009 L.T. Jordan Institute Fellowship ($1,500), Memorial Student Center, Texas A&M University

26.7 26.8

26.9 Please note: This application is considered a public document, and will be available for release upon request.

CITY OF SANTA CRUZ APPLICATION FOR APPOINTMENT TO ADVISORY BODIES Applications will be considered active for two years from date of submission.

NAME DATE

RESIDENCE ADDRESS CITY ZIP
EMAIL HOME # CELL #

EMPLOYER OCCUPATION
REGISTERED CITY VOTER? Yes ܆ No ܆ YEARS LIVED IN CITY LIMITS OF SANTA CRUZ EMPLOYED BY CITY OF SANTA CRUZ? Yes ܆ No ܆ PRESENTLY SERVING ON ADVISORY BODY?** Yes ܆ No ܆ PERSONAL REFERENCE (optional) PHONE

ADVISORY BODIES
If you are applying for more than one advisory body, please rank your preferences numerically with #1 as your first choice.

Arts Commission* Parks and Recreation Commission*
Board of Building Appeals* Planning Commission*
Commission for the Prevention of Violence
Against Women* Transportation and Public Works Commission* Downtown Commission* Sister Cities Committee
Equal Employment Opportunity Committee Water Commission* Historic Preservation Commission* Other:

If you are applying for a specialized category, please indicate:

Advisory Body Category
* A Statement of Economic Interest must be filed after appointment by those appointed to the advisory bodies marked with an asterisk (*). The statement includes, but is not limited to, disclosure of financial, business and real property interests held by the appointee (and spouse) in the City of Santa Cruz or within 2 miles of the jurisdiction of the City of Santa Cruz. ** Council Policy 5.1 states that members shall not serve simultaneously on more than one advisory body. If you are presently serving on (or are appointed to) an advisory body, your application to serve on a second advisory body will be forwarded to the Council for consideration only if you indicate that you are willing to resign from the first advisory body. If you are appointed to serve on an advisory body, you may also be eligible to serve on another advisory body or task force if it is scheduled to sunset within 13 months.

SIGN AND RETURN TO CITY CLERK’S DEPARTMENT
By Email [email protected]
By Mail/In Person: 809 Center Street, Room 9
Santa Cruz, CA 95060
Signature of Applicant Fax: 831-420-5031
ɿ 3/($6(86(7+(5(9(56(6,'()25$'',7,21$/,1)250$7,21ɿ Jorge Leonardo Cruz 9/22/2020
Santa Cruz 95062
City of Watsonville Comms. & Envr. Coord.
6 ■
Jorge Savala
#1

EMAIL FORM PRINT FORM
Signature of Applicant
Please note: This application is considered a public document, and will be available for release upon request.

CITY OF SANTA CRUZ APPLICATION FOR APPOINTMENT TO ADVISORY BODIES Applications will be considered active for two years from date of submission.

NAME DATE

RESIDENCE ADDRESS CITY ZIP
EMAIL HOME # CELL #

EMPLOYER OCCUPATION
REGISTERED CITY VOTER? Yes ܆ No ܆ YEARS LIVED IN CITY LIMITS OF SANTA CRUZ EMPLOYED BY CITY OF SANTA CRUZ? Yes ܆ No ܆ PRESENTLY SERVING ON ADVISORY BODY?** Yes ܆ No ܆ PERSONAL REFERENCE (optional) PHONE

ADVISORY BODIES
If you are applying for more than one advisory body, please rank your preferences numerically with #1 as your first choice.

Arts Commission* Parks and Recreation Commission*
Board of Building Appeals* Planning Commission*
Commission for the Prevention of Violence
Against Women* Transportation and Public Works Commission* Downtown Commission* Sister Cities Committee
Equal Employment Opportunity Committee Water Commission* Historic Preservation Commission* Other:

If you are applying for a specialized category, please indicate:

Advisory Body Category
* A Statement of Economic Interest must be filed after appointment by those appointed to the advisory bodies marked with an asterisk (*). The statement includes, but is not limited to, disclosure of financial, business and real property interests held by the appointee (and spouse) in the City of Santa Cruz or within 2 miles of the jurisdiction of the City of Santa Cruz. ** Council Policy 5.1 states that members shall not serve simultaneously on more than one advisory body. If you are presently serving on (or are appointed to) an advisory body, your application to serve on a second advisory body will be forwarded to the Council for consideration only if you indicate that you are willing to resign from the first advisory body. If you are appointed to serve on an advisory body, you may also be eligible to serve on another advisory body or task force if it is scheduled to sunset within 13 months.

SIGN AND RETURN TO CITY CLERK’S DEPARTMENT
By Email [email protected]
By Mail/In Person: 809 Center Street, Room 9
Santa Cruz, CA 95060
Signature of Applicant Fax: 831-420-5031
ɿ 3/($6(86(7+(5(9(56(6,'()25$'',7,21$/,1)250$7,21ɿ Jorge Leonardo Cruz 9/22/2020
Santa Cruz 95062
City of Watsonville Comms. & Envr. Coord.
6 ■
Jorge Savala
#1

26.10 Please use the following space to provide any relevant qualifications or experiences you think would enhance your effectiveness on the advisory body for which you are applying. Feel free to attach additional sheets.

How did you hear about the advisory body opening?
܆ City Website ܆ Word of mouth ܆ Display ad ܆ City Staff or Commissioner Other (explain)
I have enjoyed our local parks and also brought youth from south county to enjoy the parks through the first and only outdoor bilingual education program called Growing Up Wild / Creciendo a lo salvaje based in the corralitos mountains.

I think open public spaces are essential to community development and I would like to work with other community members to ensure that all people in Santa Cruz feel welcomed and invited to these spaces. I would also like for people to be able to recreate and appreciate the balance that the Awaswas people were able to maintain in these lands with the local habitat of their time and uncover the rich natural history that surrounds us.
■

26.11 26.12

26.13 26.14

26.15 26.16

26.17 26.18

26.19 26.20

26.21 26.22

26.23 26.24

26.25 City Council

AGENDA REPORT
DATE: 06/03/2022
AGENDA OF: 06/14/2022
DEPARTMENT: Finance
SUBJECT: Fiscal Year 2023 Proposed Budget Adoption (FN) RECOMMENDATION: Motion to:
1) Adopt a resolution adopting the Fiscal Year (FY) 2023 Budget including the Capital Investment Program (CIP), effective July 1, 2022; authorizing the City Manager to allocate within the applicable Funds the FY 2023 Budget Schedule of Budget Changes to the appropriate accounting classifications and to approve related and applicable transfer in/out between funds; and authorizing the Finance Director to create additional appropriations to provide for commitments carried over from the prior fiscal year, including contract and purchase order encumbrances and unexpended project balances, so long as there is a sufficient fund balance to finance these commitments; and
2) Adopt a resolution amending the Classification and Compensation Plans for the new FY 2023 Budget Personnel Complement by implementing the approved FY 2023 Budget/Position changes in several departments; and
3) Approve and appropriate funds for the FY 2023 Priority 1 Capital Investment Program projects as funding becomes available; and
4) Accept the Water Commission’s recommendations regarding the Water Department’s FY 2023 Operating and Capital Investment Program (CIP).

BACKGROUND: The City Charter requires the City Manager to annually prepare the proposed budget for the start of the new fiscal year and transmit it to the Council at or before the first Council meeting of June. The FY 2023 Proposed Operating Budget and Capital Investment Program were posted to the City’s website on May 19, 2022. Both documents can be accessed online at www.cityofsantacruz.com, or at the City Clerk’s Office at 809 Center Street, Room 9, and at the Downtown Library. The Final Adopted Budget and CIP will be published online to the City’s Budget webpage, after all the approved changes have been made.

The Water Commission annually reviews the budget for the City of Santa Cruz Water Department, and makes recommendations to the City Council. The Commission met on June 6, 2022, at a publicly noticed meeting and performed a detailed review of the Water Department’s budget. Attached are the Commission’s recommendations and detail of the Operating and CIP budget.

27.1 DISCUSSION: On May 24 and May 25, 2022, City Council was presented with a FY 2023 Proposed Budget totaling $421,157,437, including $127,092,674 in the General Fund, and $122,780,696 million in the Capital Investment Program (CIP). The City’s budget outlook for FY 2023 shows signs of pandemic recovery but despite estimated General Fund revenue increase of about 8% over last fiscal year, inflation has diminished any real growth. Other concerns on the horizon include rising liability insurance costs, replacement of the City’s Enterprise Resource Planning (ERP) system, rising pension costs, and the threat of another recession starting as early as July 2022. Increased demand for City services such as special events, parking, waste reduction, landfill, online services, technology and engineering, plus the implementation of Council priorities such as sidewalk vending, grants management, economic development programming and homelessness response, have strained the City’s fiscal capacity. The American Rescue Plan Act (ARPA) and the California State $14 million have offset significant impact to the General Fund, but this funding is not sustainable as the sources are one-time revenue. A summary of their appropriations is attached. The compounding effects of the City's ongoing structural financial challenges has resulted in a proposed budget that draws our unrestricted General Fund balance down to zero. Absent a significant new revenue source, such as the passing of the Measure F half cent sales tax, the City will need to re-evaluate its current service delivery and make significant adjustments.

Considering the factors above, departments were directed to recommend a 2.5% reduction to their budgets and absorb any increase in operating costs. A list of the budget solutions by department are attached, entitled “FY 2023 General Fund Budget Solutions.” Throughout the two-day budget hearings, Council was also presented with position requests from various departments that would increase operational efficiency and provide capacity to implement new programs, outlined in Personnel Profile - Overview of Changes. The proposed personnel requests would have a net increase of 10 FTE to the General Fund and 4.0 FTE net increase within the Enterprise and other funds.

On May 25, 2022, Council was presented with a CIP budget proposal that included a list of General Funded Priority 1 projects, attached. The projects were evaluated and ranked against a set of criteria that support the City’s Re-Envision Santa Cruz recovery plan, as well as take into consideration the asset/project’s current status and need. The FY 2023 CIP includes a $5 million General Fund appropriation that could be used to leverage anticipated state and federal grant and stimulus money. By approving the projects on the Priority 1 list, the City will be positioned to act swiftly and be competitive when applying for funding.

At the conclusion of the two-day budget hearing, Council expressed interest in exempting the Parks and Recreation Department (PR) from their proposed $178,007 target reduction. About $96,000 of the proposed reductions would impact the department’s temporary staff budgets in various divisions. For further clarification, these proposed reductions in temporary staffing will not impact the department's ability to deliver status quo services. The remaining $75,000 would reduce contingency budgets to address special projects as they arise, postage, printing service, fleet management, as well as a $3,000 reduction to the Sister Cities budget used for events and delegation gifts. Should further action be taken at budget adoption, the recommendation is to have the department make corresponding adjustments by reducing funding from its CIP requests.

27.2 Finally, attached are a list of minor adjustments and administrative budget corrections. Edits to the budget book (such as grammar and typos) are also reflected in the published adopted budget book, though they are not outlined as they are non-substantive in nature.

FISCAL IMPACT: The FY 2023 Adopted Budget includes $421,311,677 of total appropriations. Included in the operating budget is the City’s Primary General Fund of $126,814,851, which supports our day-to-day public safety, roads, traffic, and parks operations.

Prepared By:

Lupita Alamos
Budget Manager
Submitted By:

Bobby Magee
Interim Finance Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. FY 2023 RESOLUTION BUDGET ADOPTION.DOCX

2. EXHIBIT A - SCHEDULE OF ADMINISTRATIVE BUDGET CORRECTIONS.PDF

3. EXHIBIT B - FY 2023 GENERAL FUND CIP PRIORITY 1 PROJECTS AND CRITERIA.PDF

4. EXHIBIT C - FY 2023 RECAP OF FUNDS.PDF

5. EXHIBIT D - SUMMARY OF PROJECTED REVENUES AND OTHER FINANCING SOURCES.PDF

6. EXHIBIT E - SUMMARY OF PROJECTED EXPENDITURES AND OTHER FINANCING USES.PDF

7. EXHIBIT F - SUMMARY OF TRANSFERS.PDF

8. HUMAN RESOURCES MEMO- CHANGES TO PERSONNEL PROFILE.DOCX

9. RESOLUTION AMENDING CLASS AND COMP PLANS.DOC

10. PERSONNEL PROFILE- OVERVIEW OF CHANGES.DOCX

11. FY 2023 GENERAL FUND BUDGET SOLUTIONS.PDF

12. ARPA USE SUMMARY.DOCX

13. CA 14M SUMMARY.DOCX

14. CIP SUMMARY.PDF

15. WATER DEPARTMENT FY 2023 PROPOSED OPERATING BUDGET.PDF

16. EXAMPLE OF QUARTERLY FINANCIAL REPORT PREPARED FOR AND DISTRIBUTED TO THE WATER COMMISSION.PDF

17. WATER DEPARTMENT FY 2023 BUDGET ANALYTICS.PDF

18. WATER DEPARTMENT FY 2023 FIVE-YEAR FINANCIAL PRO FORMA.PDF

19. WATER COMMISSION LETTER TO CC.PDF

27.3 RESOLUTION NO.NSA RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ ADOPTING A BUDGET FOR FISCAL YEAR 2023
BE IT RESOLVED, by the City Council of the City of Santa Cruz, that the budget of the City of Santa Cruz for Fiscal Year (FY) 2023, including the Capital Investment Program (CIP), as proposed in that certain document entitled “City of Santa Cruz Proposed Annual Budget Fiscal Year 2023,” on file with the City Clerk, is hereby adopted for FY 2023, effective July 1, 2022, with the addenda thereto as determined by the City Council and detailed in the attached Exhibits:

Exhibit A: Schedule of Administrative Budget Corrections Exhibit B: General Fund Priority 1 CIP Projects
Exhibit C: FY 2023 Recap of Funds
Exhibit D: FY 2023 Summary of Projected Revenues and other Financing Sources Exhibit E: FY 2023 Summary of Projected Expenditures and Other Financing Sources
Exhibit F: FY 2023 Summary of Transfers
BE IT FURTHER RESOLVED that the Finance Director is authorized to create additional appropriations in order to provide for necessary commitments carried over from the prior fiscal year, including contract and purchase order encumbrances and unexpended project balances, so long as there is a sufficient fund balance to finance these commitments.

PASSED AND ADOPTED this 14th day of June, 2002, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED:

Sonja Brunner, Mayor
ATTEST:

City Clerk Administrator

27.4 Schedule of Budget Changes FY 2023 Proposed to Adopted Revenue
Dept Fund
Add/Reduce
/New Project # Project Name GL Account String Account Description Amount One‐
time Annual Justification
ED 253 Reduce h512001 HOME Admin 253‐51‐81‐0000‐43110
Federal operating grants & contributions (1,017) HUD final award lower than estimate ED 261 Reduce h512115 CDGB Admin & Planning 261‐51‐81‐0000‐43110 Federal operating grants & contributions (8,487) x HUD final award lower than estimate ED 261 Reduce h512113
Homeless Infrastructure Projects‐CM 261‐51‐81‐0000‐43110 Federal operating grants & contributions (33,947) x HUD final award lower than estimate Non‐Dept 311 Reduce c102101
Homeless Infrastructure Projects 311‐00‐00‐0000‐49126 From CDBG Fund (33,947) x HUD final award lower than estimate Non‐Dept 311 Add c101701
Space Utilization Plan for City Hall 311‐00‐00‐0000‐49108 Funding ‐ City Public Trust 100,000 x Missing from CIP
Non‐Dept 317 Reduce c400809
City Arterial & Collector Street 317‐00‐00‐0000‐49169 From 2016 Transportat (100,000) x Reduce funding $100k from $750k to $650k Non‐Dept 317 Reduce c400810
City Residential and Collector Street 317‐00‐00‐0000‐49169 From 2016 Transportat (100,000) x Reduce funding $100k from $750k to $650k Expenditures
Dept Fund
Add/Reduce
/New/Move Project # Project Name GL Account String Account Description Amount One‐
time Annual Justification
PL 101 Add 101‐50‐75‐2302‐51110 Regular full time                4,258 Change the Senior Code Compliance Specialist to Code Compliance Supervisor ‐ increase of 4.3% CMO 101 Add 101‐10‐03‐1211‐52199
CPVAW‐ Professional Services             16,274  x
Adjust Professional Services amount to reflect status quo request CMO 101 Reduce 101‐10‐03‐1212‐52132
Police Auditor‐ Professional Services            (15,000) x Reduce appropriation to meet reduction target
ED 101 Add 101‐51‐80‐5401‐51911 Interfund labor - credit        (490,234) x corrections to interfund labor credits PD 101 Move
101‐20‐22‐2105‐52226 & 52227
Vehicle Fuel and Work Order Charges            (17,200) x Move $17,200 budget from Activity 2105 Park Rangers to 2103 Patrol PD 101 Add
101‐20‐22‐2103‐52226 & 52227
Vehicle Fuel and Work Order Charges             17,200  x Move $17,200 budget from Activity 2105 Park Rangers to 2103 Patrol ED 253 Move h512303
HOME‐ ARP Pacific Station North 253‐51‐6105‐51911 Interfund labor - charge           190,000 interfund labor charge budgetd in wrong fund
ED 253 Reduce h512001 HOME Admin 253‐51‐81‐5207‐52121 Interfund labor - charge (1,017) HUD final award lower than estimate ED 261 Reduce h512115 CDGB Admin & Planning 261‐51‐81‐5204‐54990 Miscellaneous supplies and services              (1,000) HUD final award lower than estimate ED 261 Reduce h512115 CDGB Admin & Planning 261‐51‐81‐5204‐52121 Interfund labor - charge              (7,487) HUD final award lower than estimate

27.5 Dept Fund
Add/Reduce
/New/Move Project # Project Name GL Account String Account Description Amount One‐
time Annual Justification
CMO 311 Reduce c102101
Homeless Infrastructure Projects 311‐10‐00‐9990‐57990 Other capital outlay (33,947) x HUD final award lower than estimate PW 317 Reduce c400809
City Arterial & Collector Street 317‐40‐64‐9311‐57304 Street Systems (100,000) x Reduce $100k due to Measure D Funding ($2,450,000 to $2,350,000) PW 317 Reduce c400810
City Residential and Collector Street 317‐40‐64‐9311‐57304 Street Systems (100,000) x Reduce $100k due to Measure D Funding ($1,250,000 to $1,150,000) PW 311 Add c101701
Space Utilization Plan for City Hall 311‐10‐11‐9410‐57203 Project Cost           100,000  x Missing from CIP PW 311 Add c601403
SLR Mouth & Lagoon Mgmt Plan Dev 311‐40‐00‐9145‐57106 Land Improvements 80,000 x Missing exp budget in Eden PW 221 Add c402301
Bay Dr Protected Bike Lanes & Ped Path 224‐00‐00‐0000‐59107 To Gas Tax Fund             50,000  x move from 226 to 224 PW 311 Add c402302
Escalona Dr Storm Drain Pipe Replacement 311‐00‐00‐0000‐49101 From General Fund                4,000  x Missing from CIP PW Add c402302
Escalona Dr Storm Drain Pipe Replacement 311‐00‐00‐0000‐49130 From Gas Tax Fund                4,000  x Missing from CIP PW 741 Add c402201
Soquel Garage Improvements 741‐40‐64‐7452‐57309 Parking lots           300,000  x Missing from CIP PW 721 Add c401405 WWTF‐Electrical Systems 721‐40‐65‐7252‐57301 Sewer systems          847,000  x correction from 94,176 PW 731 Reduce 731‐40‐63‐7306‐52151 Program services           (14,906) x duplicate line item Non‐Dept 101 Add 101‐00‐00‐0000‐59191 Intra‐entity fund transf          211,137  x Missing from Proposed Non‐Dept 134 Add 134‐00‐00‐0000‐49191 Intra‐entity fund transf          211,137  x Missing from ProposedHR 844 Move 844‐12‐07‐1232‐52199 Other professional & technical services              (2,400) x Move budget to correct activity HR 844 Add 844‐12‐07‐7824‐52199
Other professional & technical services                2,400  x Move budget to correct activity CHANGES TO BUDGET NARRATIVE ‐ CORRECTING THE NARRATIVE
Personnel ProfileRemove the ED .5 Coordinator position listed New, this position already exists in the department complimentPublic Works‐Change title from Office Supervisor to official title of Administrative Services SupervisorDepartment SummariesFinance Budget Smmary (Fund 842)Parks & Recreation Staffing number of custodians listed 30 instead of the actual 3 within this classification.Public Works‐Change title from Office Supervisor to Administrative Services SupervisorCIP Changes by DepartmentPW c402213 adjusted FY22 total to include mid‐year requestPW c601301 adjusted FY22 total to include mid‐year requestPW c401306 adjusted FY22 total to include mid‐year requestPW c401903 correction to project descriptionPW m609195 correction to project descriptionPR c302208 change from $200,000 to $275,000

27.6 FY2023 Budget
General Fund CIP Priority Criteria
The following outlines the proposed criteria of prioritizing new capital improvement project requests to ensure consistency with Re-Envision Santa Cruz recovery strategy among other considerations:

Fiscal Sustainability: Project Funding Availability

1. Project funding is significantly leveraged by grants, State or Federal aid

2. Rank is increased based on assessment of the amount of funding needed to complete the current project phase and entire project.
a) 75% + of project funding has been secured
b) 50%+ of project funding has been secured
c) At least 25%+ of project funding has been secured
d) Less than 25% of project funding has been secured
Downtown and Other Business Sectors1. Contributes toward economic development and revitalization/recovery efforts Infrastructure: Asset Condition, Maintenance & Longevity1. Existing conditions and capacity to meet basic levels of service is deficient

2. Avoids potential failure due to substandard conditions

3. Improves the overall reliability of the capital asset and infrastructure system

4. Major implications of delaying the project such as significant future costs, or negative community impacts

5. Extent to which reduces City operations and maintenance expenditures

6. Increases the longevity of the capital asset or extends the useful life of the asset in the long term Regulatory or Mandated Requirements1. By legal or regulatory mandate or requirement, court order, settlement or mitigation of plausible legal claims.

Project Readiness1. Ready to enter the phase corresponding to the funding proposed.

2. Complex environmental issues or known significant legal challenges shall be scored lower than projects without said complications.

Health in All Policies (HiAP)-

1. Equity: How does the project move the City towards achieving social equity goals referenced in the Community Assessment Project?

2. Sustainability: How does the project advance the sustainability goals referenced in the City’s 2020 Climate Action Plan?

3. Public Health: Public Health- How does the project advance the health outcome goals in the HiAP community well-being outcome indicators?

27.7 FY2023 Budget
Unfunded Projects- Priority 1
The following projects have been approved for implementation/construction as General Funding becomes available at the discretion of the City Manager.

General Fund CIP Funding Priority 1
Butler Building for Fire Station 3 26,500
Fire Station 2 Exercise & Storage Facility (rear expansion) 750,000 Generator for Fire Station #3 200,000
West Cliff Drive Stabilization 500,000
Fire Engine Ladder Pierce Tiller 100' 1,500,000
Fire Station 3 Sewer Line w Clean Out 45,000
DeLaveaga Disc Golf Course "Pay to Play": Welcome Area and Course Safety Improvements 235,000
Public Facilities - Energy Savings and Maintenance 200,000 Fire Stations Paging System 150,000
Downtown Recovery - Phase I-IV Infrastructure and Site
Beautification and Safety Improvements 470,000
Parks Operations Maintenance Yard - Building Safety
Improvements 90,000
Driving Range Outdoor Safety Improvements 200,000
Driving Range Roof & Building Improvements 600,000
Escalona Avenue Storm Drain Pipe Replacement 4,000
Total General Fund CIP Funding Priority Unfunded Projects: 4,970,500

27.8 Estimated Projected Projected Projected Projected Projected Projected Estimated Beginning Revenues & Other Operating Capital Debt Other Ending Fund Balance Other Sources Financing Sources Expenditures Outlay Service Financing Uses Fund Balance Governmental Fund Types -
General Fund (101-199)
Primary Operating Funds:
101 Primary General Fund 5,230,544 113,952,945 7,909,185 (105,514,284) (5,246,716) (2,166,052) (13,887,799) 277,823 Subtotal 113,952,945 5,230,544 7,909,185 (105,514,284) (5,246,716) (2,166,052) (13,887,799) 277,823 Reserved and Designated for Special Programs:
103 Code Enforcement/Civil Penalties 245,434 17,304 - (84,671) - (1,218) - 176,849 104 Wharf Fund 1,073,061 2,732,061 1,841,321 (4,007,550) (25,000) (141,523) - 1,472,370 108 Green Building Education Resource 45,883 518,133 - (499,579) - (16,003) - 48,434 121 Civic Equip Maintenance/Replacement (18,025) 190 - (10,000) - - - (27,835) 122 Co-op Retail Management Fund 10,226 220,466 - (220,000) - - - 10,692 123 Kiosk Maintenance Fund 23,343 10,238 - (45,827) - - - (12,246) 125 Street Tree Fund 150,905 21,639 - (15,000) - - - 157,544 132 City Emergency Reserve Fund 15,908,445 33,013 669,656 - - - - 16,611,114 133 Carbon Reduction Fund 1,915 2,498 33,110 - - - (3,487) 34,036 134 Cannabis Children's Fund 509,553 1,650 211,137 (211,137) - - - 511,203 136 Economic Development Trust 2,044,902 64,045 1,197,772 (1,045,000) - - (1,300,000) 961,719 141 CASp Certification and Training Fund 69,025 - - (7,000) - - - 62,025 150 Housing In-lieu Program 103,944 338 - - - - - 104,282 151 DeAnza Hardship Fund 274,726 4,036 - - - - - 278,762 162 Contributions and Donations-Parks & Rec 244,040 15,781 - (38,384) - - - 221,437 Total Reserved and Designated 20,687,375 4,278,035 3,316,353 (6,184,147) (25,000) (158,745) (1,303,487) 20,610,384 General Fund without Public Trust 25,917,919 118,230,980 11,225,538 (111,698,431) (5,271,716) (2,324,797) 20,888,207 (15,191,286) 130 City Public Trust Fund 73,287 5,021,954 - (85,000) - - (115,000) 4,895,241 Total General Fund 118,304,267 30,939,873 11,225,538 (111,783,431) (5,271,716) (2,324,797) (15,306,286) 25,783,448 Special Revenue Funds
Public afety Special Revenue (210-219):
211 SLESF 272,461 437,491 - (128,497) - - - 581,455
212 Traffic Offender Fund 346,614 34,368 - - - - - 380,982 213 Local Law Enforce Block Grant 200,000 253,900 - - - - - 453,900 214 Police Asset Seizure Fund 163,498 5,202 - - - - - 168,700 215 Public Safety Impact Fee - Police Fund 200,000 63,434 - - - - - 263,434 216 Asset Seizure/Youth Crime Prevention Fund 3,326 49 - - - - - 3,375 217 Public Safety Impact Fee - Fire Fund 200,000 63,329 - - - - - 263,329 218 Childcare Impact Fee Fund 44,429 125,000 - - - - - 169,429 Total Special Police Revenue 1,376,021 1,037,080 - (128,497) - - - 2,284,604State Highway 221 Gasoline Tax Fund 615,022 22,427,308 150,000 (726,860) (20,850,000) (22,809) (1,004,161) 588,500 Total State Highway 615,022 22,427,308 150,000 (726,860) (20,850,000) (22,809) (1,004,161) 588,500 Transportation Measure D
224 2016 Transporation Measure D 52,914 1,607,579 - (88,183) - - (3,095,000) (1,522,690) Total Clean River, Beaches 52,914 1,607,579 - (88,183) - - (3,095,000) (1,522,690) Traffic Impact Fee Funds
226 Traffic Impact Fee-Citywide Fund (565,563) 566,103 - (157,195) - - (150,000) (306,655) Total Traffic Impact Fee Funds (565,563) 566,103 - (157,195) - - (150,000) (306,655) Clean River, Beaches Fund (235)
235 Clean River, Beaches 2,055,456 658,967 - (813,972) (400,000) - (344) 1,500,108 Total Clean River, Beaches 2,055,456 658,967 - (813,972) (400,000) - (344) 1,500,108 Recap of Funds - FY 2023 Estimated Fund Balance

27.9 Estimated Projected Projected Projected Projected Projected Projected Estimated Beginning Revenues & Other Operating Capital Debt Other Ending Fund Balance Other Sources Financing Sources Expenditures Outlay Service Financing Uses Fund Balance Recap of Funds - FY 2023 Estimated Fund Balance
Parks and Recreation (240-249):
241 NW Quadrant - Parks & Rec Fee Fund 78,239 3,726 - - - - (100,000) (18,035) 242 SW Quadrant - Parks & Rec Fee Fund 1,952 808 - - - - - 2,760 243 NE Quadrant - Parks & Rec Fee Fund 131,892 2,452 - - - - (23,000) 111,344 244 SE Quadrant - Parks & Rec Fee Fund 60,487 1,771 - - - - (58,716) 3,542 249 Parks & Rec Tax Combined 1,228,718 537,232 - - - - (150,000) 1,615,950 Total Parks and Recreation 545,989 1,501,288 - - - - (331,716) 1,715,561 Housing & Community Development (250-269):HOME
251 HOME Investment Partnership Fund 389,861 5,728 - - - - - 395,589 252 HOME Investment Partnership Fund 194,637 2,860 - - - - - 197,497 253 HOME Investment Partnership Fund 658,912 3,288,337 - (269,136) - - (3,019,201) 658,912 Subtotal HOME 3,296,925 1,243,410 - (269,136) - - (3,019,201) 1,251,998 CDBG
261 Community Development Block Grant Fund 350,797 677,566 - (378,513) - - (399,053) 250,797 Subtotal CDBG 350,797 677,566 - (378,513) - - (399,053) 250,797 Other Housing Funds (271-279);
272 Red Cross Housing Recnstr Loan Repayment 64,962 2,219 - (36,000) - - - 31,181 273 CalHOME-FTHB Revolving Loan Fund 177,583 2,609 - - - - - 180,192 274 BEGIN - Housing Loan Revolving Fund 30,000 - - - - - - 30,000 275 HOME-American Dream FTH 68,762 1,011 - - - - - 69,773 279 Affordable Housing Trust Fund 1,677,068 5,611,935 - (818,995) - - (7,457,640) (987,632) Subtotal Other Housing 2,018,376 5,617,774 - (854,995) - - (7,457,640) (676,485) Total Housing & Community Development 3,612,582 9,592,265 - (1,502,644) - - (10,875,894) 826,309 Low & Moderate Income House Funds
281 SA LHIH-Merged 1,706,835 180,066 - (117,247) - - - 1,769,654 Total Low & Moderate Income House Funds 1,706,835 180,066 - (117,247) - - - 1,769,654Other Special Revenue Funds (225,291); 291 Transportation Development Act Fund 1 1,023,884 - (1,023,884) - - - 1 292 American Rescue Plan Act 9,926,945 - - - - - (486,000) 9,440,945 293 State Homeless Response Program 13,850,000 - - - - (10,840,000) - 3,010,000 Total Other Special Revenue Funds 23,776,946 1,023,884 - (1,023,884) - - (11,326,000) 12,450,946 Total Special Revenue Funds 34,131,501 37,639,241 150,000 (4,558,481) (21,250,000) (22,809) (26,783,115) 19,306,338 Capital Projects Funds
Capital Improvement Projects (310-319)311 General Capital Improvement Projects (973,008) 25,280,000 24,837,063 (46,510,167) - (275,394) (46,425) 2,312,069 313 CIP Fund - 2% For Public Art - CIP Fund 205,964 1,397 (84,423) 90,336 - - - 213,274 315 CIP Fund - Sidewalk Constr. In-Lieu Fund 181,455 27,129 - (25,000) - - - 183,584 316 CIP - Santa Cruz Library 3,240,538 2,045,369 - - - - - 5,285,907 317 CIP Fund - Street maintenance & Rehabilitation (4,531,924) 25,478 2,100,000 - (3,500,000) - - (5,906,446) 319 Wharf Tenant Capital Improvement Contrib 229,169 163,201 - - (151,590) - - 240,780 331 SC Street Improvements - Harvey West (21) - - - - - - (21) 341 Information Technology 413 - 2,420,000 - (420,000) - - 2,000,413 Total Capital Improvement Projects 27,542,574 (1,647,415) 29,447,399 (109,423) (50,581,757) (275,394) (46,425) 4,329,560 Debt Service Funds
411 General Obligation Bonds Debt Service 1,422,712 18,005 - - - (542,701) - 898,015 413 Lease Revenue Bonds 465,848 433,967 - - - (357,394) - 542,421 411 General Obligation Bonds Debt Service 1,888,560 451,972 - - - (900,095) - 1,440,436 Total Governmental Fund Types 65,312,520 183,938,053 40,822,937 (116,451,335) (77,103,473) (3,523,095) (42,135,826) 50,859,781

27.10 Estimated Projected Projected Projected Projected Projected Projected Estimated Beginning Revenues & Other Operating Capital Debt Other Ending Fund Balance Other Sources Financing Sources Expenditures Outlay Service Financing Uses Fund Balance Recap of Funds - FY 2023 Estimated Fund Balance
Proprietary Fund Types
Enterprise Funds
Water Enterprise (710-719)711 Water Fund 41,047,405 6,315,002 2,500 (34,171,358) (35,822,221) (5,131,705) (168,856) (27,929,233) 713 Water Rate Stabilization Fund - 10,000,000 - - - - - 10,000,000 714 Water - 2% for Public Art 98,140 (51,400) - (98,140) - - - (51,400) 716 Water - 90 Day Operating Reserve 7,416,384 1,009,450 - - - - - 8,425,834 717 Water - Emergency Reserve Fund 3,000,000 - - - - - - 3,000,000 719 Water - Equipment Replacement 579,401 - - - - - - 579,401 Total Water Enterprise 27,259,387 42,154,995 2,500 (34,269,498) (35,822,221) (5,131,705) (168,856) (5,975,398) Wastewater Enterprise (720-729)721 Wastewater 11,882,367 26,041,375 (22,092,402) - (10,088,000) (597,271) (97,101) 5,048,968 724 Wastewater - 2% for Public Art 2,003 1,262 - (27,657) - - - (24,392) Total Wastewater Enterprise 11,884,370 26,042,637 - (22,120,059) (10,088,000) (597,271) (97,101) 5,024,577 Refuse Enterprise (730-739)731 Refuse 7,726,229 22,422,631 (21,962,806) - (3,528,191) (315,472) (614,595) 3,727,796 732 Landfill Closure 2,158,201 30,212 247,001 (174,271) - - - 2,261,143 733 Landfill Post Closure Maintenance 6,698,012 93,022 545,341 (309,624) - - - 7,026,751 734 Refuse - 2% for Public Art (28,402) 68 - (1,478) - - - (29,812) Total Refuse Enterprise 16,554,040 22,545,933 792,342 (22,448,179) (3,528,191) (315,472) (614,595) 12,985,878 Parking Enterprise (740-749)741 Parking (1,089,622) 4,206,888 - (5,838,473) (826,100) (373,067) (55,994) (3,976,368) 742 Parking - 2% for Public Art (1,514) 258 - (2,838) - - - (4,094) Total Parking Enterprise (1,091,135) 4,207,146 - (5,841,311) (826,100) (373,067) (55,994) (3,980,461) Storm Water Enterprise (750-759)
751 Storm Water 543,310 599,642 - (332,491) (53,000) (207,397) (86,236) 463,827 752 Storm Water Overlay (1,688,398) 321,960 - (470,296) (2,200,000) (190,159) (540) (4,227,433) 753 Storm Water - 2% for Public Art (1,939) 186 - (1,621) - - - (3,374) Total Storm Water Enterprise (1,147,028) 921,788 - (804,408) (2,253,000) (397,556) (86,776) (3,766,980) Total Enterprise Funds 53,459,635 95,872,499 794,842 (85,483,456) (52,517,512) (6,815,071) (1,023,322) 4,287,615 Internal Service Funds
811 Equipment Operations (1,255,776) 3,940,956 - (3,788,538) (83,380) - (12,491) (1,199,229) Self-Insurance
841 Workers' Compensation 3,449,931 2,914,281 - (5,066,114) - - - 1,298,098 842 Liability Insurance 5,425,273 4,618,992 2,316,906 (6,826,364) - - - 5,534,807 843 Group Health Insurance 1,472,333 19,937,384 (20,198,568) - - - - 1,211,149 844 Unemployment Insurance 4,240,064 704,090 - (282,400) - - - 4,661,754 Subtotal Self-Insurance 14,587,602 28,174,747 2,316,906 (32,373,447) - - - 12,705,808 Total Internal Service Funds 13,331,826 32,115,703 2,316,906 (36,161,985) (83,380) - (12,491) 11,506,579 Total Proprietary Fund Types 66,791,461 127,988,202 3,111,748 (121,645,440) (52,600,892) (6,815,071) (1,035,813) 15,794,193 Total All City Funds 132,103,981 311,926,255 43,934,685 (238,096,776) (129,704,365) (10,338,166) (43,171,639) 66,653,975

27.11 Fiscal Year 2022 Fiscal Year
2023
Budget
Proposed
Year End
EsƟmate
Amended
Budget
Adopted
Budget
Fiscal Year
2021
Actuals
Summary of Projected Revenues and Other Financing Sources

BY FUND TYPE
FY 2023 Budget
General Funds
Primary General Fund
Taxes 76,383,704 77,468,413 77,468,413 87,075,601 84,291,984 Licenses and Permits 1,474,922 1,608,611 1,613,500 1,360,868 1,597,200 Grants 1,953,116 7,493,807 2,637,259 807,303 403,000
Charges for Services 17,578,780 16,740,094 17,340,386 18,405,980 18,274,096 Fines and Forfeitures 1,101,475 2,142,000 2,142,000 1,096,630 1,123,090 Rents & Miscellaneous Revenues 4,771,503 5,183,832 5,231,311 5,224,860 5,479,958 Other Financing Sources 2,164,687 253,500 1,672,954 302,000 7,909,185 Total Primary General Fund 105,428,187 110,890,257 108,105,823 111,489,625 121,862,130 General Fund - Assigned & CommiƩed for Special Programs Taxes 219,276 220,000 220,000 220,000 220,000
Grants ‐ ‐‐ 1,000 0
Charges for Services 989,953 1,185,858 1,185,858 1,121,149 1,559,954 Fines and Forfeitures 3,745 3,000 3,000 10,983 3,000
Rents & Miscellaneous Revenues 2,337,230 2,133,111 2,190,113 2,588,047 2,495,081 Other Financing Sources 3,123,185 2,659,334 2,868,716 3,000,507 3,316,353 Total General Fund ‐ Assigned &  6,673,390 6,201,303 6,468,687 7,594,388 CommiƩed for Speci
6,940,686
City Public Trust
Rents & Miscellaneous Revenues 25,757 73,287 73,287 73,287 73,287 Other Financing Sources 250,000 ‐‐ ‐ 301,346
Total City Public Trust 275,757 73,287 73,287 374,633 73,287 Total General Funds 112,377,334 117,164,847 114,647,796 118,804,944 129,529,805 Special Revenue Funds
Police Special Revenue Funds
Grants 196,245 142,979 ‐ 470,497 423,900
Charges for Services 19,148 ‐ ‐ 29,000 30,000
Rents & Miscellaneous Revenues 6,235 11,583 11,583 11,583 11,583 Total Police Special Revenue  221,629 11,583 154,562 512,080 Funds
464,483
Impact Fee Funds
Rents & Miscellaneous Revenues 6,552 ‐ ‐ 525,000 164,640 Total Impact Fee Funds 6,552 ‐ ‐ 164,640 525,000

27.12 Fiscal Year 2022 Fiscal Year
2023
Budget
Proposed
Year End
EsƟmate
Amended
Budget
Adopted
Budget
Fiscal Year
2021
Actuals
Summary of Projected Revenues and Other Financing Sources

BY FUND TYPE
FY 2023 Budget
State Highway Funds
Grants 6,995,181 16,506,421 4,342,023 22,395,146 16,586,421 Rents & Miscellaneous Revenues 123,939 22,162 22,162 32,162 27,162 Other Financing Sources 434,968 ‐ 3,392,669 3,392,669 150,000 Total State Highway Funds 7,554,088 4,364,185 19,921,251 20,006,252 22,577,308 Measure D TransportaƟon Fund
Grants 1,491,408 1,375,520 1,375,520 1,587,401 1,375,520 Rents & Miscellaneous Revenues 13,639 20,178 20,178 20,178 20,178 Total Measure D TransportaƟon  1,505,047 1,395,698 1,395,698 1,607,579 Fund
1,395,698
Traffic Impact Funds
Rents & Miscellaneous Revenues 313,448 566,103 566,103 566,103 566,103 Other Financing Sources 107,780 ‐‐ ‐ 0
Total Traffic Impact Funds 421,227 566,103 566,103 566,103 566,103 Clean River, Beaches & Ocean Tax Fund
Taxes 659,854 635,887 635,887 636,000 635,867
Rents & Miscellaneous Revenues 11,310 22,967 22,967 22,967 22,967 Other Financing Sources 4,189 ‐‐ ‐ 0
Total Clean River, Beaches &  675,353 658,854 658,854 658,967 Ocean Tax Fund
658,834
Parks & RecreaƟon Funds
Taxes 837,416 200,000 ‐ 515,000 300,000
Charges for Services 2,931 ‐‐ ‐ 0
Rents & Miscellaneous Revenues 13,112 30,989 30,989 30,989 30,989 Total Parks & RecreaƟon Funds 853,459 30,989 230,989 330,989 545,989 Housing & Community Development Funds
Grants 857,717 7,516,365 6,130,598 9,377,398 7,586,742
Charges for Services 6,473 11,000 11,000 14,000 15,000
Rents & Miscellaneous Revenues 719,312 214,167 214,167 246,767 199,867 Other Financing Sources 61,527 ‐‐ ‐ 153,436
Total Housing & Community  1,645,028 6,355,765 7,741,532 9,592,265 Development Funds
8,000,945

27.13 Fiscal Year 2022 Fiscal Year
2023
Budget
Proposed
Year End
EsƟmate
Amended
Budget
Adopted
Budget
Fiscal Year
2021
Actuals
Summary of Projected Revenues and Other Financing Sources

BY FUND TYPE
FY 2023 Budget
City Low & Mod Income Housing Funds
Grants 1,903 6,597 ‐‐ 6,597
Charges for Services 25,000 25,000 25,000 25,000 25,000 Rents & Miscellaneous Revenues 234,423 260,680 278,680 202,246 155,066 Total City Low & Mod Income  261,326 285,680 310,277 180,066 Housing Funds
233,843
TransportaƟon Development Funds
Grants 797,240 839,561 839,561 1,023,884 839,561
Total TransportaƟon  797,240 839,561 839,561 1,023,884
Development Funds
839,561
American Rescue Plan Funds
Grants 7,085,161 7,085,160 ‐‐ 7,085,160
Rents & Miscellaneous Revenues 283 ‐ ‐‐ 0
Total American Rescue Plan  7,085,444 ‐ 7,085,160 ‐
Funds
7,085,160
State Homeless Response Program Funds
Grants ‐ ‐ ‐‐ 14,000,000
Total State Homeless Response  ‐ ‐ ‐ ‐
Program Funds
14,000,000
Total Special Revenue Funds 21,026,393 14,508,418 38,903,987 53,746,508 37,789,241 Capital Improvement Funds
General & Other Capital Improvement Funds
Taxes 2,264,491 1,955,611 1,955,611 1,955,611 1,955,611 Grants 6,883,341 3,989,000 38,342,644 37,614,781 25,270,000 Rents & Miscellaneous Revenues 323,308 824,408 2,726,272 2,459,529 316,963 Other Financing Sources 2,572,677 15,229,539 36,245,431 33,049,652 29,447,399 Total General & Other Capital  12,043,817 21,998,558 79,269,957 56,989,973 Improvement Funds
75,079,573
Total Capital Improvement Funds 12,043,817 21,998,558 79,269,957 75,079,573 56,989,973 Debt Service Funds
Government ObligaƟon & Lease Revenue Bond Funds
Taxes 508,290 532,000 532,000 ‐ 532,000
Rents & Miscellaneous Revenues 439,776 450,172 450,172 450,172 451,972 Total Government ObligaƟon &  948,067 982,172 982,172 451,972 Lease Revenue Bond Funds
982,172
Total Debt Service Funds 948,067 982,172 982,172 982,172 451,972

27.14 Fiscal Year 2022 Fiscal Year
2023
Budget
Proposed
Year End
EsƟmate
Amended
Budget
Adopted
Budget
Fiscal Year
2021
Actuals
Summary of Projected Revenues and Other Financing Sources

BY FUND TYPE
FY 2023 Budget
Enterprise Funds
Water Enterprise Funds
Licenses and Permits 4,076 2,000 2,000 5,250 6,250
Grants ‐ 975,260 371,595 ‐ 981,960
Charges for Services 41,525,971 44,004,293 44,004,293 39,077,529 41,665,505 Fines and Forfeitures 1 ‐‐ ‐ 0
Rents & Miscellaneous Revenues 670,287 352,102 360,235 399,650 386,650 Other Financing Sources 1,603,097 75,608 3,899,608 162,313 100,640 Total Water Enterprise Funds 43,803,432 44,805,598 49,241,396 40,627,702 42,158,045 Wastewater Enterprise Funds
Grants 2,616,002 5,852,216 1,788,234 2,847,058 5,852,216 Charges for Services 24,100,420 23,020,000 23,020,000 22,988,177 22,955,000 Rents & Miscellaneous Revenues 118,573 240,579 240,579 240,579 240,579 Other Financing Sources 288,170 14,602 14,602 56,309 27,657 Total Wastewater Enterprise  27,123,165 25,063,415 29,127,397 26,070,294 Funds
29,137,281
Refuse Enterprise Funds
Grants 29,354 735,360 228,826 296,500 724,253
Charges for Services 21,140,482 21,700,000 21,700,000 21,700,000 21,700,000 Rents & Miscellaneous Revenues 349,087 549,433 549,433 568,251 549,433 Other Financing Sources 795,774 456,525 474,567 24,776 511,495 Total Refuse Enterprise Funds 22,314,696 22,934,784 23,459,361 23,017,280 23,057,428 Parking Enterprise Funds
Taxes 240,816 175,100 175,100 245,400 175,100
Grants 8,864 ‐ 41,215 15,000 15,000
Charges for Services 3,855,028 4,817,500 4,817,500 3,750,032 3,806,207 Rents & Miscellaneous Revenues 79,265 255,230 255,230 204,745 140,539 Other Financing Sources 101,973 4,884 55,005 17,507 2,838 Total Parking Enterprise Funds 4,285,947 5,252,714 5,344,050 4,162,384 4,209,984 Storm Water Enterprise Funds
Grants 2,432 967,568 875,000 ‐ 73,077
Charges for Services 881,642 870,000 870,000 870,000 900,000 Rents & Miscellaneous Revenues 2,005,168 21,788 21,788 21,408 21,788 Other Financing Sources ‐ 1,389 51,389 2,602 1,621
Total Storm Water Enterprise  2,889,242 1,768,177 1,910,745 923,409 Funds
967,087
Total Enterprise Funds 100,416,483 99,824,688 109,082,948 97,911,734 96,419,160

27.15 Fiscal Year 2022 Fiscal Year
2023
Budget
Proposed
Year End
EsƟmate
Amended
Budget
Adopted
Budget
Fiscal Year
2021
Actuals
Summary of Projected Revenues and Other Financing Sources

BY FUND TYPE
FY 2023 Budget
Internal Service Funds
Equipment OperaƟons Internal Service Fund
Charges for Services 2,970,568 3,882,841 3,882,841 3,878,107 3,920,956 Rents & Miscellaneous Revenues 50,450 20,000 20,000 35,000 20,000 Other Financing Sources 38,738 20,000 20,000 3,723 ‐
Total Equipment OperaƟons  3,059,756 3,922,841 3,922,841 3,940,956 Internal Service Fund
3,916,830
Group Health Insurance Internal Service Fund
Charges for Services 19,156,266 18,705,136 18,705,136 18,695,136 19,922,384 Rents & Miscellaneous Revenues 15,173 6,000 6,000 6,000 15,000 Total Group Health Insurance  19,171,439 18,711,136 18,711,136 19,937,384 Internal Service Fund
18,701,136
Liability Insurance Internal Service Fund
Charges for Services 3,950,000 4,554,285 4,554,285 4,554,285 4,554,285 Rents & Miscellaneous Revenues 92,827 64,707 64,707 64,707 64,707 Other Financing Sources ‐ ‐ ‐ 0 2,316,906
Total Liability Insurance Internal  4,042,827 4,618,992 4,618,992 6,935,898 Service Fund
4,618,992
Unemployment Internal Service Fund
Charges for Services 652,324 601,993 601,993 601,993 655,000 Rents & Miscellaneous Revenues 24,045 49,090 49,090 49,090 49,090 Total Unemployment Internal  676,369 651,083 651,083 704,090 Service Fund
651,083
Workers' CompensaƟon Insurance Fund
Charges for Services 2,532,121 2,459,916 2,459,916 2,459,916 2,771,603 Rents & Miscellaneous Revenues 667,836 372,555 372,555 372,555 372,555 Other Financing Sources ‐ 270,123 270,123 270,123 270,123 Total Workers' CompensaƟon  3,199,957 3,102,594 3,102,594 3,414,281 Insurance Fund
3,102,594
Total Internal Service Funds 30,150,348 31,006,646 31,006,646 30,990,635 34,932,609 Total Revenues: 276,962,441 285,485,329 373,893,507 377,515,566 356,112,758

27.16 Fiscal Year 2022 Fiscal Year
2023
Proposed
Budget
Year End
EsƟmate
Amended
Budget
Adopted
Budget
Fiscal Year
2021
Actuals
Summary of Projected Expenditures and Other Financing Uses

BY FUND TYPE
FY 2023 Budget
General Funds
Primary General Fund
Personnel Services 62,936,808 74,133,720 73,888,813 66,095,123 77,032,177 Salary Savings ‐ (3,200,000) (3,200,000) ‐ )(3,349,651
Services, Supplies, & Other Charges 25,923,579 28,883,788 37,382,454 31,990,984 31,831,758 Capital Outlay 186,929 60,000 346,581 336,120 5,246,716 Debt Service 5,169,099 5,584,083 5,584,083 5,584,083 2,166,052 Other Financing Uses 3,361,570 6,824,924 8,851,763 8,776,763 13,887,799 Total Primary General Fund 97,577,985 112,286,515 122,853,694 112,783,073 126,814,851 General Fund - Assigned & CommiƩed for Special Programs Personnel Services 2,826,163 3,322,871 3,359,371 3,518,596 2,791,221 Services, Supplies, & Other Charges 4,962,386 1,319,938 1,865,915 1,589,638 2,665,557 Capital Outlay 66,357 15,000 34,660 34,659 25,000
Debt Service ‐ 158,744 158,744 158,744 158,744
Other Financing Uses 84,231 97,042 3,678,710 3,678,710 1,303,487 Total General Fund ‐ Assigned &  7,939,137 4,950,095 9,060,900 7,671,384 CommiƩed for Special Programs
8,252,972
City Public Trust
Services, Supplies, & Other Charges 1,355 162,869 85,000 85,000 162,869 Other Financing Uses 76,056 980,000 1,074,106 1,074,106 115,000 Total City Public Trust 77,411 1,065,000 1,236,975 1,236,975 200,000 Total General Funds 105,594,533 118,301,610 133,151,569 122,273,020 134,686,467 Special Revenue Funds
Police Special Revenue Funds
Services, Supplies, & Other Charges 148,723 ‐ ‐ 128,497 ‐ Total Police Special Revenue  148,723 ‐ ‐ 128,497
Funds
‐
State Highway Funds
Personnel Services 30,505 48,121 36,121 41,820 20,272
Services, Supplies, & Other Charges 443,394 644,553 635,869 618,112 685,042 Capital Outlay 2,382,193 1,829,700 23,107,690 23,107,690 20,850,000 Debt Service 12,402 38,428 38,428 38,428 22,808
Other Financing Uses 628,274 1,225,161 3,116,753 3,116,753 1,004,161 Total State Highway Funds 3,496,768 3,773,963 26,946,861 26,901,255 22,603,831 Measure D TransportaƟon Fund
Personnel Services 12,624 82,136 82,136 88,184 80,406
Other Financing Uses 631,789 3,808,443 1,281,000 3,095,000 3,872,443 Total Measure D TransportaƟon  644,413 1,363,136 3,890,579 3,183,184 Fund
3,952,849

27.17 Fiscal Year 2022 Fiscal Year
2023
Proposed
Budget
Year End
EsƟmate
Amended
Budget
Adopted
Budget
Fiscal Year
2021
Actuals
Summary of Projected Expenditures and Other Financing Uses

BY FUND TYPE
FY 2023 Budget
Traffic Impact Funds
Personnel Services 51,435 149,173 149,173 157,196 143,603 Services, Supplies, & Other Charges 288 ‐ ‐‐ ‐
Other Financing Uses 536,825 ‐ 2,931,869 2,931,869 100,000 Total Traffic Impact Funds 588,548 149,173 3,081,042 3,075,472 257,196 Clean River, Beaches & Ocean Tax Fund
Personnel Services 233,544 264,904 264,904 275,867 249,294 Services, Supplies, & Other Charges 239,319 653,464 717,951 18,247 538,107 Capital Outlay 39,310 ‐ 174,713 174,713 400,000
Other Financing Uses 2,422 344 688 688 344
Total Clean River, Beaches &  514,595 918,712 1,158,256 1,214,318 Ocean Tax Fund
442,942
Parks and RecreaƟon Funds
Other Financing Uses 57,222 1,475,399 560,000 331,716 1,449,216 Total Parks and RecreaƟon  57,222 560,000 1,475,399 331,716 Funds
1,449,216
Housing & Community Development Funds
Services, Supplies, & Other Charges 1,061,897 1,841,766 686,262 1,502,644 1,315,313 Capital Outlay 1,799,840 ‐‐ ‐ 277,644
Other Financing Uses ‐ 5,657,272 7,324,732 6,787,612 10,875,894 Total Housing & Community  2,861,737 6,343,534 9,166,498 12,378,538 Development Funds
8,380,569
City Low & Mod Income Housing Funds
Services, Supplies, & Other Charges 24,286 231,543 78,240 117,247 213,171 Capital Outlay 37,683 ‐‐ 43,064 43,064
Total City Low & Mod Income  61,969 78,240 274,607 117,247 Housing Funds
256,235
TransportaƟon Development Funds
Services, Supplies, & Other Charges 797,241 839,561 839,561 1,023,884 839,561 Total TransportaƟon  797,241 839,561 839,561 1,023,884
Development Funds
839,561
American Rescue Plan Funds
Services, Supplies, & Other Charges ‐ 4,243,659 ‐‐ 4,243,659 Other Financing Uses ‐ ‐ ‐ ‐ 486,000
Total American Rescue Plan  ‐ ‐ 4,243,659 486,000
Funds
4,243,659

27.18 Fiscal Year 2022 Fiscal Year
2023
Proposed
Budget
Year End
EsƟmate
Amended
Budget
Adopted
Budget
Fiscal Year
2021
Actuals
Summary of Projected Expenditures and Other Financing Uses

BY FUND TYPE
FY 2023 Budget
State Homeless Response Program Funds
Other Financing Uses ‐ 3,160,000 ‐ 10,840,000 150,000
Total State Homeless Response  ‐ ‐ 3,160,000 10,840,000 Program Funds
150,000
Total Special Revenue Funds 9,171,216 14,026,319 54,236,462 49,691,758 52,564,411 Capital Improvement Funds
General and Other Capital Improvement Funds
Personnel Services 21,927 48,865 48,865 49,603 23,370
Services, Supplies, & Other Charges ‐ ‐ 5,482 5,482 59,819 Capital Outlay 10,170,217 17,060,786 84,988,315 75,483,006 50,581,757 Debt Service 241,686 278,494 278,494 278,494 275,394
Other Financing Uses 106,640 1,025,229 1,787,811 1,752,811 46,425 Total General and Other Capital  10,540,470 18,413,374 87,108,967 51,012,998 Improvement Funds
77,543,163
Debt Service Funds
Government ObligaƟon and Lease Revenue Bond Funds
Debt Service 882,507 898,995 898,995 900,095 896,495
Total Government ObligaƟon  882,507 898,995 898,995 900,095 and Lease Revenue Bond Funds
896,495
Enterprise Funds
Water Enterprise Funds
Personnel Services 13,774,596 16,714,151 16,479,243 17,691,882 15,427,372 Services, Supplies, & Other Charges 13,504,691 16,856,812 15,721,731 16,254,669 14,567,051 Capital Outlay 47,115,941 114,676,578 82,381,500 35,822,221 114,480,692 Debt Service 3,686,656 4,098,626 4,098,626 5,134,206 4,098,710 Other Financing Uses 1,039,226 4,923,398 166,364 269,721 1,103,398 Total Water Enterprise Funds 79,121,110 118,847,464 157,269,565 149,677,223 75,172,699 Wastewater Enterprise Funds
Personnel Services 8,264,277 10,067,850 10,067,850 10,386,290 8,664,154 Services, Supplies, & Other Charges 8,638,342 11,281,086 10,674,808 11,733,803 10,486,068 Capital Outlay 7,985,296 7,958,300 21,678,266 21,624,861 10,088,000 Debt Service 426,620 475,253 517,249 517,249 597,271
Other Financing Uses 70,076 84,119 262,014 212,419 97,101 Total Wastewater Enterprise  25,384,611 29,260,330 43,806,465 32,902,465 Funds
41,504,751

27.19 Fiscal Year 2022 Fiscal Year
2023
Proposed
Budget
Year End
EsƟmate
Amended
Budget
Adopted
Budget
Fiscal Year
2021
Actuals
Summary of Projected Expenditures and Other Financing Uses

BY FUND TYPE
FY 2023 Budget
Refuse Enterprise Funds
Personnel Services 9,815,915 11,135,204 11,135,204 11,731,372 9,696,882 Services, Supplies, & Other Charges 8,279,298 10,912,231 10,764,142 10,985,433 8,336,879 Capital Outlay 2,691,666 5,613,326 14,870,429 14,063,640 3,528,191 Debt Service 897,018 725,965 725,965 725,965 315,472
Other Financing Uses 465,289 435,556 802,549 802,549 614,595 Total Refuse Enterprise Funds 22,149,186 28,674,193 38,446,378 33,625,915 27,175,063 Parking Enterprise Funds
Personnel Services 2,834,263 3,529,806 3,529,806 3,496,650 3,160,072 Services, Supplies, & Other Charges 1,922,118 2,446,766 2,551,825 2,072,695 2,344,669 Capital Outlay 416,507 ‐ 2,146,435 2,146,435 826,100
Debt Service 346,763 378,617 378,617 378,617 373,067
Other Financing Uses 40,224 287,746 397,941 397,941 55,994 Total Parking Enterprise Funds 5,559,875 6,642,935 9,004,624 8,155,760 7,096,480 Storm Water Enterprise Funds
Personnel Services 137,160 264,831 264,831 219,428 223,035 Services, Supplies, & Other Charges 441,043 542,619 616,280 140,780 584,981 Capital Outlay 228,996 955,000 3,844,474 3,844,474 2,253,000 Debt Service 396,121 396,233 396,233 374,359 397,557
Other Financing Uses 6,139 9,014 967,374 967,374 88,397 Total Storm Water Enterprise  1,209,459 2,167,697 6,089,192 3,543,363 Funds
5,550,022
Total Enterprise Funds 133,424,241 185,592,619 254,616,224 238,513,671 145,890,070 Internal Service Funds
Equipment OperaƟons Internal Service Fund
Personnel Services 866,652 1,200,042 1,200,042 1,254,599 958,539 Services, Supplies, & Other Charges 2,369,016 2,479,752 2,844,752 2,375,738 2,533,941 Capital Outlay 4,900 100,000 100,000 100,000 83,380
Other Financing Uses 11,462 1,628 63,272 63,272 12,491
Total Equipment OperaƟons  3,252,030 3,781,422 4,208,066 3,884,411 Internal Service Fund
3,497,549
Group Health Insurance Internal Service Fund
Personnel Services 722,279 300,345 300,345 338,177 850,841 Services, Supplies, & Other Charges 18,392,254 18,935,759 18,938,395 18,952,629 19,860,392 Total Group Health Insurance  19,114,533 19,236,104 19,238,740 20,198,569 Internal Service Fund
19,803,470

27.20 Fiscal Year 2022 Fiscal Year
2023
Proposed
Budget
Year End
EsƟmate
Amended
Budget
Adopted
Budget
Fiscal Year
2021
Actuals
Summary of Projected Expenditures and Other Financing Uses

BY FUND TYPE
FY 2023 Budget
Liability Insurance Internal Service Fund
Personnel Services 365,009 557,384 557,384 555,261 309,519 Services, Supplies, & Other Charges 4,348,796 5,209,844 5,700,654 5,601,478 6,271,101 Other Financing Uses 145,474 ‐‐ ‐ ‐
Total Liability Insurance Internal  4,859,279 5,767,228 6,258,038 6,826,362 Service Fund
5,910,997
Unemployment Internal Service Fund
Services, Supplies, & Other Charges 279,951 252,400 252,400 282,400 250,000 Total Unemployment Internal  279,951 252,400 252,400 282,400 Service Fund
250,000
Workers' CompensaƟon Insurance
Personnel Services 315,620 361,508 361,508 368,816 345,254 Services, Supplies, & Other Charges 2,932,822 2,936,095 2,984,991 2,992,145 4,697,300 Other Financing Uses 3,533,109 ‐‐ 354,526 354,526
Total Workers' CompensaƟon  6,781,551 3,297,603 3,701,025 5,066,116 Insurance
3,691,925
Total Internal Service Funds 34,287,344 32,334,757 33,658,269 33,153,941 36,257,858 Grand Total: 293,900,311 369,567,674 563,670,486 522,072,048 421,311,677

27.21 Fiscal Year 2022
Adopted
Budget
Amended*
Budget
Year End
EsƟmate
Fiscal Year*
2021
Actuals
Fiscal Year
2023
Proposed
Summary of Transfers
FY 2023 Budget
Expenditures
1 - General Funds
Primary General Fund 101 3,110,726 6,641,531 8,492,098 8,417,098 13,676,662 To General Capital Improvement Fund 580,634 6,000,000 3,875,000 4,946,843 4,871,843 To Gas Tax Fund ‐‐ ‐ ‐ 0
To Refuse Fund ‐‐ ‐ 10,000 10,000
To Municipal Wharf fund 1,841,321 1,607,596 1,607,596 1,607,596 1,841,321 To Liability Fund ‐ ‐ ‐ 0 2,316,906
To CIP‐Sidewalk ConstrucƟon In‐Lieu ‐ ‐ ‐ 0 10,000
To Carbon ReducƟon fund 12,345 12,345 12,345 24,690 24,690 To Economic Development Trust Fund 401,757 803,514 803,514 803,514 1,197,772 To Equipment Financiing Fund ‐‐ ‐ ‐ 0
To InformaƟon Technology Fund 274,671 343,076 1,099,455 1,099,455 2,298,318 104 26,008 ‐ 6,444 6,444 ‐
To General Capital Improvement Fund 26,008 ‐ 6,444 6,444 ‐ City Public Trust Fund 130 76,056 980,000 1,074,106 1,074,106 115,000 To General Fund ‐ 15,000 ‐ ‐ 0
To General Capital Improvement Fund 76,056 100,000 980,000 1,074,106 1,074,106 To Clean Rivers, Beaches, Ocean Fund ‐‐ ‐ ‐ 0
Energy Efficient Equipment Fund 133 58,223 97,042 409,090 409,090 3,487 To General Fund 57,054 3,487 89,000 379,548 379,548
To General Capital Improvement Fund ‐‐ ‐ 10,000 10,000
To Refuse Fund ‐‐ 8,042 8,042 8,042
To Water Fund 1,169 ‐ 4,000 4,000 ‐
To Parking fund ‐‐ ‐ 7,500 7,500
Economic Development Trust Fund 136 ‐ ‐ 3,263,176 3,263,176 1,300,000 To General Fund ‐‐ ‐ ‐ 0
To General Capital Improvement Fund ‐ ‐ 3,263,176 3,263,176 1,300,000 1 - General Funds 3,271,014 7,718,573 13,244,914 13,169,914 15,095,149 2 - Special Revenue Funds
Gasoline Tax 221 628,274 1,225,161 3,116,753 3,116,753 1,004,161 To General Fund ‐‐ ‐ ‐ 0
To General Capital Improvement Fund 64,814 425,000 1,941,153 1,941,153 204,000 To CIP‐Arterial Streets and Roads fund 562,326 800,000 1,175,278 1,175,278 800,000 To Carbon ReducƟon fund 1,134 161 322 322 161
224 631,790 1,281,000 3,808,443 3,872,443 3,095,000
To General Fund 94,978 81,000 105,022 169,022 45,000
To General Capital Improvement Fund ‐ 1,700,000 200,000 2,050,000 2,050,000 To Gas Tax Fund ‐ ‐ 140,800 140,800 50,000
To CIP‐Arterial Streets and Roads fund 479,432 1,000,000 1,470,000 1,470,000 1,300,000 To Parking fund 57,379 ‐ 42,621 42,621 ‐
Traffic Impact Fee-Citywide Fund 226 429,045 ‐ 2,931,869 2,931,869 100,000 To Gas Tax Fund 429,045 100,000 ‐ 2,931,869 2,931,869

27.22 Fiscal Year 2022
Adopted
Budget
Amended*
Budget
Year End
EsƟmate
Fiscal Year*
2021
Actuals
Fiscal Year
2023
Proposed
Summary of Transfers
FY 2023 Budget
Clean River, Beaches & Ocean Tax 235 2,422 344 688 688 344 To Carbon ReducƟon fund 2,422 344 344 688 688
Northwest Quadrant - Parks & Rec 241 ‐ 75,000 75,000 75,000 100,000 To General Capital Improvement Fund ‐ 100,000 75,000 75,000 75,000 Southwest Quadrant - Parks & Rec 242 ‐‐ ‐ 46,719 46,719 To General Capital Improvement Fund ‐‐ ‐ 46,719 46,719
Northeast Quadrant - Parks & Rec 243 ‐ ‐ 35,000 35,000 23,000 To General Capital Improvement Fund ‐ 23,000 ‐ 35,000 35,000 Southeast Quadrant - Parks & Rec 244 ‐ 60,000 60,000 60,000 58,716 To General Capital Improvement Fund ‐ 58,716 60,000 60,000 60,000 Parks & Recreation Tax Combined 249 57,222 425,000 1,258,680 1,232,497 150,000 To General Capital Improvement Fund 57,222 150,000 425,000 1,258,680 1,232,497 To Southwest Quadrant ‐ P & R Fee Fund ‐‐ ‐ ‐ 0
HOME Investment Partnership 253 ‐ ‐ ‐ 0 3,019,201
To General Capital Improvement Fund ‐ 3,019,201 ‐ ‐ 0
Community Development Block Gra 261 ‐ 436,092 2,103,552 1,566,432 399,053 To General Fund ‐ 35,000 40,000 982,888 982,888
To General Capital Improvement Fund ‐ 396,092 1,120,664 583,544 364,053 Affordable Housing Trust Fund 279 ‐ 5,221,180 5,221,180 5,221,180 7,457,640 To General Capital Improvement Fund ‐ 7,457,640 5,221,180 5,221,180 5,221,180 To SA (H) LMIH‐Merged 2‐1‐12 ‐‐ ‐ ‐ 0
SA (H) LMIH-Merged 2-1-12 281 ‐‐ ‐ ‐ 0
To General Capital Improvement Fund ‐‐ ‐ ‐ 0
American Rescue Plan Act 292 ‐ ‐ ‐ 0 486,000
To General Fund ‐ 486,000 ‐ ‐ 0
State Homelessness Response Pro 293 ‐ ‐ 3,160,000 150,000 10,840,000 To General Fund ‐ 7,246,198 ‐ 150,000 150,000
To General Capital Improvement Fund ‐ ‐ 3,010,000 0 3,593,802 2 - Special Revenue Funds 1,748,753 8,723,777 21,817,882 18,308,581 26,733,115 3 - Capital Improvement
CIP - Sidewalk Construction In-Lieu 315 ‐‐ ‐ 20,000 20,000 To Gas Tax Fund ‐‐ ‐ 20,000 20,000
CIP-Street Maintenance & Rehabilit 317 ‐‐ ‐ 535,000 500,000 To General Capital Improvement Fund ‐‐ ‐ 535,000 500,000 3 - Capital Improvement ‐ ‐ 555,000 520,000 ‐
7 - Enterprise Funds
Water 711 121,057 90,247 1,027,281 1,027,281 168,856
To General Capital Improvement Fund 20,881 79,297 ‐ 797,352 797,352 To Carbon ReducƟon fund 28,296 4,019 8,038 8,038 4,019
To CIP Public Art Fund 22,615 24,694 24,694 24,694 32,032

27.23 Fiscal Year 2022
Adopted
Budget
Amended*
Budget
Year End
EsƟmate
Fiscal Year*
2021
Actuals
Fiscal Year
2023
Proposed
Summary of Transfers
FY 2023 Budget
To InformaƟon Technology Fund 49,265 61,534 197,197 197,197 53,508 Water System Development Fees F 715 620 509 509 509 681 To CIP Public Art Fund 620 681 509 509 509
Wastewater 721 70,076 69,517 247,412 197,817 69,444
To General Fund 29,500 29,500 29,500 29,500 29,500
To General Capital Improvement Fund ‐‐ ‐ 101,875 52,280 To Carbon ReducƟon fund 8,618 1,224 2,448 2,448 1,224
To CIP Public Art Fund 4,797 4,867 4,867 4,867 9,219
To InformaƟon Technology Fund 27,161 33,926 108,722 108,722 29,501 Refuse 731 111,354 37,073 404,066 404,066 103,100
To General Fund 2,500 2,500 2,500 2,500 2,500
To General Capital Improvement Fund ‐ 70,296 ‐ 311,014 311,014 To Carbon ReducƟon fund 89,886 12,767 25,534 25,534 12,767 To CIP Public Art Fund 3,276 2,206 2,206 2,206 493
To InformaƟon Technology Fund 15,692 19,600 62,812 62,812 17,044 Parking 741 40,224 282,862 393,057 393,057 53,156
To General Fund 20,000 20,000 ‐ ‐ 0
To General Capital Improvement Fund ‐ 262,910 333,456 333,456 16,195 To Carbon ReducƟon fund 4,379 622 622 1,244 1,244
To CIP Public Art Fund 1,673 1,628 1,628 1,628 946
To InformaƟon Technology Fund 14,172 17,702 56,729 56,729 15,393 Storm Water 751 5,735 7,162 804,522 804,522 86,236
To General Capital Improvement Fund ‐ 80,000 ‐ 731,568 731,568 To Stormwater Overlay Fund ‐‐ ‐ 50,000 50,000
To InformaƟon Technology Fund 5,735 7,162 22,954 22,954 6,236 Storm Water Overlay 752 404 463 161,463 161,463 540
To General Capital Improvement Fund ‐‐ ‐ 161,000 161,000 To CIP Public Art Fund 404 463 463 463 540
7 - Enterprise Funds 349,470 487,833 3,038,309 2,988,715 482,013 8 - Internal Service Funds
Equipment Operations 811 11,462 1,628 63,272 63,272 12,491 To General Capital Improvement Fund ‐ 10,863 ‐ 60,016 60,016 To Carbon ReducƟon fund 11,462 1,628 3,256 3,256 1,628
Workers' Compensation Insurance 841 3,499,934 ‐ 354,526 354,526 ‐ To General Fund 1,891,842 ‐ ‐ ‐ 0
To General Capital Improvement Fund 33,109 ‐ 354,526 354,526 ‐ To Wastewater Fund 282,260 ‐ ‐ 0 ‐
To Gas Tax Fund 5,923 ‐ ‐ 0 ‐
To Refuse Fund 340,029 ‐ ‐ ‐ 0
To Water Fund 682,545 ‐ ‐ 0 ‐
To Street Tree Fund 44,594 ‐ ‐ 0 ‐
To Equipment Fund 36,949 ‐ ‐ 0 ‐
To Municipal Wharf fund 170,626 ‐ ‐ 0 ‐
To Clean Rivers, Beaches, Ocean Fund 4,189 ‐ ‐ 0 ‐

27.24 Fiscal Year 2022
Adopted
Budget
Amended*
Budget
Year End
EsƟmate
Fiscal Year*
2021
Actuals
Fiscal Year
2023
Proposed
Summary of Transfers
FY 2023 Budget
Other transfers out 7,868 ‐ ‐ 0 ‐
Liability Insurance 842 145,474 ‐ ‐ 0 ‐
To General Capital Improvement Fund 145,474 ‐ ‐ ‐ 0
Unemployment Insurance 844 ‐‐ ‐ ‐ 0
To Unemployment Fund (140) ‐‐ ‐ ‐ 0
8 - Internal Service Funds 3,656,869 1,628 417,799 417,798 12,491 Expenditures Totals: 9,026,106 16,931,811 39,073,904 35,405,008 42,322,768 Revenues
1 - General Funds
Primary General Fund 101 2,096,174 242,000 1,662,954 257,000 7,882,685 From Workers' CompensaƟon Fund 1,891,842 ‐ ‐ ‐ 0
From City Public Trust Fund ‐ ‐ ‐ 0 15,000
From Wastewater Fund 29,500 29,500 29,500 29,500 29,500 From Refuse Fund 2,500 2,500 2,500 2,500 2,500
From Parking Fund 20,000 ‐ ‐ 0 20,000
From CDBG Fund ‐ 40,000 982,888 75,000 35,000
From Gas Tax Fund ‐‐ ‐ ‐ 0
From Asset seizure/youth fund 300 ‐ ‐ 0 ‐
From Clean River, Beaches & Ocean Fund ‐‐ ‐ ‐ 0
From Economic Development Trust Fund ‐‐ ‐ ‐ 0
From Carbon ReducƟon Fund 57,054 89,000 393,044 0 3,487 From 2016 Trnsp Measure D 94,978 81,000 105,022 0 45,000 From American Rescue Plan Act ‐ 486,000 ‐ ‐ 0
From CA14 Homelessness AcƟon Plan ‐ ‐ 150,000 150,000 7,246,198 104 2,011,947 1,607,596 1,607,596 1,607,596 1,841,321
From General Fund 1,841,321 1,607,596 1,607,596 1,607,596 1,841,321 From Workers' CompensaƟon Fund 170,626 ‐ ‐ 0 ‐
Green Bldg Educational Resource F 108 7,868 ‐ ‐ 0 ‐
From Workers' CompensaƟon Fund 7,868 ‐ ‐ ‐ 0
Energy Efficient Equipment Fund 133 158,542 33,110 66,220 53,875 33,110 From General Fund 12,345 12,345 12,345 24,690 12,345
From Equipment Fund 11,462 1,628 1,628 3,256 3,256
From Water Fund 28,296 4,019 8,038 8,038 4,019
From Wastewater Fund 8,618 1,224 2,448 2,448 1,224
From Refuse Fund 89,886 12,767 25,534 25,534 12,767
From Parking Fund 4,379 622 1,244 1,244 622
From Gas Tax Fund 1,134 161 322 322 161
From Clean River, Beaches & Ocean Fund 2,422 344 344 688 688 Economic Development Trust Fund 136 401,757 803,514 803,514 921,178 1,197,772 From General Fund 401,757 1,197,772 803,514 803,514 921,178 Unemployment Insurance 140 ‐‐ ‐ ‐ 0
From Unemployment IS Fund ‐‐ ‐ ‐ 0

27.25 Fiscal Year 2022
Adopted
Budget
Amended*
Budget
Year End
EsƟmate
Fiscal Year*
2021
Actuals
Fiscal Year
2023
Proposed
Summary of Transfers
FY 2023 Budget
1 - General Funds 4,676,287 2,686,220 4,140,284 2,839,649 10,954,888 2 - Special Revenue Funds
Gasoline Tax 221 434,968 ‐ 3,092,669 3,092,669 150,000
From General Fund ‐‐ ‐ ‐ 0
From Capital Improvement Projects Fund ‐‐ ‐ ‐ 0
From Workers' CompensaƟon Fund 5,923 ‐ ‐ 0 ‐
From Traffic Impact Fee ‐ City wide fund 429,045 ‐ 2,931,869 2,931,869 100,000 From Sidewalk In‐lieu fund ‐‐ ‐ 20,000 20,000
From 2016 Trnsp Measure D ‐ ‐ 140,800 140,800 50,000
Clean River, Beaches & Ocean Tax 235 4,189 ‐ ‐ 0 ‐
From General Fund ‐‐ ‐ ‐ 0
From Workers' CompensaƟon Fund 4,189 ‐ ‐ 0 ‐
From City Public Trust Fund ‐‐ ‐ ‐ 0
Southwest Quadrant - Parks & Rec 242 ‐‐ ‐ ‐ 0
From Parks and Rec. FaciliƟes Tax Fund ‐‐ ‐ ‐ 0
SA (H) LMIH-Merged 2-1-12 281 ‐‐ ‐ ‐ 0
From Affordable Housing Trust Fund ‐‐ ‐ ‐ 0
2 - Special Revenue Funds 439,157 ‐ 3,092,669 3,092,669 150,000 3 - Capital Improvement
General Capital Improvement Proje 311 1,004,198 11,920,182 27,463,346 24,267,568 24,337,063 From General Fund 580,634 6,000,000 3,875,000 5,872,557 5,797,557 From Equipment Fund ‐ 10,863 ‐ 60,016 60,016
From Workers' CompensaƟon Fund 33,109 ‐ ‐ 0 ‐
From Liability Insurance Fund 145,474 ‐ 354,526 354,526 ‐ From City Public Trust Fund 76,056 980,000 1,074,106 1,074,106 100,000 From Parks and Rec. FaciliƟes Tax Fund 57,222 425,000 1,044,286 1,018,103 150,000 From Water Fund 20,881 ‐ 702,527 702,527 79,297
From Wastewater Fund ‐‐ ‐ 49,595 0
From Refuse Fund ‐ ‐ 280,810 280,810 70,296
From Parking Fund ‐ 262,910 306,177 306,177 16,195
From Storm Water Fund ‐ ‐ 720,530 720,530 80,000
From Affordable Housing Trust Fund ‐ 5,221,180 5,221,180 5,221,180 7,457,640 From CDBG Fund ‐ 396,092 583,544 583,544 364,053
From Gas Tax Fund 64,814 204,000 425,000 1,941,153 1,941,153 From Sidewalk In‐lieu fund ‐ ‐ ‐ 0 10,000
From HOME Investment Partnership ‐ ‐ ‐ 0 3,019,201
From Northwest Quadrant ‐ P & R Fee Fund ‐ 75,000 75,000 75,000 100,000 From Southwest Quadrant ‐ P & R Fee Fund ‐‐ ‐ 46,719 46,719 From Northeast Quadrant ‐ P & R Fee Fund ‐ ‐ 35,000 35,000 23,000 From Southeast Quadrant ‐ P & R Fee Fund ‐ 58,716 60,000 60,000 60,000 From Economic Development Trust Fund ‐ ‐ 3,263,176 3,263,176 1,300,000 From Municipal Wharf Fund 26,008 ‐ 6,444 6,444 ‐
From Carbon ReducƟon Fund ‐‐ ‐ 10,000 10,000
From 2016 Trnsp Measure D ‐ 200,000 2,050,000 2,050,000 1,700,000

27.26 Fiscal Year 2022
Adopted
Budget
Amended*
Budget
Year End
EsƟmate
Fiscal Year*
2021
Actuals
Fiscal Year
2023
Proposed
Summary of Transfers
FY 2023 Budget
From CIP‐Street Maint and Rehab Fund ‐‐ ‐ 535,000 500,000 From Storm Water Overlay Fund ‐‐ ‐ 161,000 161,000
From CA14 Homelessness AcƟon Plan ‐ 3,593,802 ‐ 3,010,000 0 2% for Public Art - CIP 313 33,385 34,367 34,367 34,367 43,911 From Water Fund 22,615 32,032 24,694 24,694 24,694
From Wastewater Fund 4,797 4,867 4,867 4,867 9,219
From Refuse Fund 3,276 2,206 2,206 2,206 493
From Parking Fund 1,673 1,628 1,628 1,628 946
From Storm Water Fund ‐‐ ‐ ‐ 0
From Storm Water Overlay Fund 404 540 463 463 463
From Water System Develop Fund 620 509 509 509 681
CIP-Street Maintenance & Rehabilit 317 1,041,758 1,800,000 2,645,278 2,645,278 2,100,000 From Gas Tax Fund 562,326 800,000 800,000 1,175,278 1,175,278 From 2016 Trnsp Measure D 479,432 1,000,000 1,470,000 1,470,000 1,300,000 341 386,696 483,000 2,292,173 2,292,173 2,420,000
From General Fund 274,671 343,076 1,628,134 1,628,134 2,298,318 From Water Fund 49,265 61,534 292,021 292,021 53,508
From Wastewater Fund 27,161 29,501 33,926 161,002 161,002 From Refuse Fund 15,692 19,600 93,016 93,016 17,044
From Parking Fund 14,172 17,702 84,008 84,008 15,393
From Storm Water Fund 5,735 7,162 33,992 33,992 6,236
3 - Capital Improvement 2,466,037 14,237,549 32,435,165 29,239,386 28,900,974 7 - Enterprise Funds
Water 711 683,714 ‐ 4,000 4,000 ‐
From Workers' CompensaƟon Fund 682,545 ‐ ‐ ‐ 0
From Carbon ReducƟon Fund 1,169 ‐ 4,000 4,000 ‐
Wastewater 721 282,260 ‐ ‐ 0 ‐
From Workers' CompensaƟon Fund 282,260 ‐ ‐ ‐ 0
From Carbon ReducƟon Fund ‐‐ ‐ ‐ 0
Refuse 731 340,029 8,042 26,084 0 ‐
From General Fund ‐‐ ‐ 10,000 0
From Workers' CompensaƟon Fund 340,029 ‐ ‐ 0 ‐
From Carbon ReducƟon Fund ‐‐ 8,042 16,084 0
Parking 741 101,973 ‐ 50,121 0 ‐
From Workers' CompensaƟon Fund 44,594 ‐ ‐ ‐ 0
From Carbon ReducƟon Fund ‐‐ ‐ 7,500 0
From 2016 Trnsp Measure D 57,379 ‐ 42,621 0 ‐
Storm Water Overlay 752 ‐‐ ‐ 50,000 0
From Storm Water Fund ‐‐ ‐ 50,000 0
7 - Enterprise Funds 1,407,976 8,042 130,205 4,000 ‐
8 - Internal Service Funds
Equipment Operations 811 36,949 ‐ ‐ 0 ‐

27.27 Fiscal Year 2022
Adopted
Budget
Amended*
Budget
Year End
EsƟmate
Fiscal Year*
2021
Actuals
Fiscal Year
2023
Proposed
Summary of Transfers
FY 2023 Budget
From General Fund ‐‐ ‐ ‐ 0
From Workers' CompensaƟon Fund 36,949 ‐ ‐ 0 ‐
Information Technology 833 ‐‐ ‐ ‐ 0
From General Fund ‐‐ ‐ ‐ 0
From Water Fund ‐‐ ‐ ‐ 0
From Wastewater Fund ‐‐ ‐ ‐ 0
From Refuse Fund ‐‐ ‐ ‐ 0
From Parking Fund ‐‐ ‐ ‐ 0
From Storm Water Fund ‐‐ ‐ ‐ 0
Liability Insurance 842 ‐ ‐ ‐ 0 2,316,906
From General Fund ‐ 2,316,906 ‐ ‐ 0
8 - Internal Service Funds 36,949 ‐ ‐ 0 2,316,906
Revenues Totals: 9,026,406 16,931,811 39,798,322 35,175,704 42,322,768 300 ‐ 724,418 (229,304) ‐

27.28 CITY COUNCIL

MEMORANDUM
DATE: June 14 2022
FROM: Lisa Murphy, Director of Human Resources
SUBJECT: Resolution Amending the City of Santa Cruz Personnel Complement and Classification and Compensation Plans for the Public Works, Planning and Community Development, Information Technology, Parks and Recreation, Water, Police, Library, Economic Development Departments and the City Manager Office (HR)
Departments have determined, through careful analysis and with the assistance of the Human Resources Department that the recommendations listed on the attached Personnel Profile – Overview of Changes – FY 2023 Budget will improve their operational functioning. For FY 2023, there will be a net increase of 10 FTE to the General Fund and 4.0 FTE net increase within the Enterprise and other funds.

A description of these position changes are reflected in the attached document Personnel Profile – Overview of Changes – FY 2023 Budget. The fiscal impact of these FY 2023 Personnel/Position Changes are being approved as part of the FY 2023 Adopted Budget.

Human Resources is recommending to adopt resolution amending the Classification and Compensation Plans for the new FY 2023 Budget Personnel Complement by implementing the approved FY 2023 Budget/Position changes in several departments.

Attachments: Resolution Amending the Classification and Compensation Plans Personnel Profile – Overview of Changes

27.29 1
RESOLUTION NO. NSRESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ AMENDING THE CLASSIFICATION AND COMPENSATION PLANS – PUBLIC WORKS, PLANNING

AND COMMUNITY DEVELOPMENT, INFORMATION TECHNOLOGY, PARKS AND RECREATION,

WATER, POLICE, LIBRARY, ECONOMIC DEVELOPMENT DEPARTMENTS AND THE CITY MANAGER OFFICE.

WHEREAS, staff has recommended certain modifications to the Classification and Compensation Plans.

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

That, effective July 9, 2022 the City of Santa Cruz Classification and Compensation Plans be modified to:

Class No. Activity Classification Title Salary (New Classifications) PUBLIC
WORKS
Add Position
Add Position
Add Position
Add Position
Add Position
Delete Two
Positions:
165-xxx
225-xxx
106-xxx
146-xxx
191-xxxx
190-020
190-021
Parking Office Representative
.50 FTE
Waste Reduction Assistant

1.0 FTE
Administrative Assistant I/II
.50 FTE
Landfill Gate Attendant 1.0 FTE
Solid Waste Worker 1.0 FTE
Service Maintenance Worker 1.0
FTE x 2

27.30 2

PLANNING
AND

COMMUNITY

DEVELOPMENT
Add New
Classification and
Position
Change Job Title
From:

To:

Add Position

INFORMATION

TECHNOLOGY
Add Position
Add Position

PARKS AND

RECREATION
Add Position
Add Position
Add Position
WATER
Add Position
Add Position
372-xxx
288-
288-
288-xxx
837-xxx
705, 760-
xxx
102-xxx
287-xxx
287-xxx
702-xxx
135-xxx
Code Compliance Supervisor

1.0 FTE
Code Compliance Service
Technician
Planning and Community
Development Technician
Planning and Community
Development Technician

1.0 FTE
IT Business Systems Analyst III

1.0 FTE
Programmer Analyst I/II

1.0 FTE
Administrative Assistant I/II

1.0 FTE
Administrative Assistant III
.50 FTE
Special Events Coordinator

1.0 FTE
Management Analyst 1.0 FTE
Engineering Technician 1.0 FTE
$5,852/mo - $9079/mo

27.31 3
CITY

MANAGER
Delete Position
Add Position
Add Position
POLICE
Delete Two (2)
Positions

LIBRARY
Delete Position
Add Position

ECONOMIC

DEVELOPMENT
Add Position
106-003
107-xxx
702-xxx
501-028,
501-029
283-001
363-xxx
735-xxx
Administrative Assistant II

1.0 FTE
Administrative Assistant III

1.0 FTE
Management Analyst 1.0 FTE
Community Service Officer –
Grant Funded 1.0 FTE x 2
Library Assistant II
Library Assistant III
Development Manager 1.0 FTE

27.32 4

PASSED AND ADOPTED this 14h day of June 2022, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: _______________________
Mayor
ATTEST: _____________________
City Clerk Administrator

27.33 FY 2023 Budget
Personnel Profile - Overview of Changes
Each year, City Council establishes an authorized position list by department through the budget adoption process. For FY 2023, there will be a net increase of 10 FTE to the General Fund and 4.0 FTE net increase within the Enterprise and other funds. The following is a summary of the position changes:

Public Works –
The Department proposes making the following position changes:

Add Parking Office Representative .50 FTE position - The Parking Office Representative classification functions 5 days a week, currently covering 23 public facing shifts at the Locust Garage while maintaining the city’s parking permit programs and parking citation processes each week with 3.5 staff members. Despite increases in parking programs and responsibilities, the Parking Office Representatives needed to maintain the City’s parking programs efficiently have not kept up with operational demands. With the growth of current parking programs and the new addition of the OV permit program the Parking Fund is in a position to support these additional costs.

Add Waste Reduction Assistant 1.0 FTE position - In order to provide the additional services required under the new State law (SB 1383) an additional Waste Reduction Assistant will be needed to provide customer waste audits, service level and contamination compliance reports to the State CalRecycle agency. This position will also be responsible to assist on the required food recovery programs that target our local stores and restaurants assuring they distribute recoverable food to local food recovery organizations.

Add Administrative Assistant I/II .50 FTE position - The Wastewater System requires additional administrative support in response to the increased staffing, budgeting and volume of productivity demanded of the Division. This new position request is for an additional .50 FTE position of Administrative Assistant I / II to support the Wastewater System. The wastewater fund is an enterprise fund based on sewer rates. Sewer rates keep an adequate fund balance while maintaining the City sewer infrastructure. The fund has adequate reserves to support the addition of one halftime position.

Add Landfill Gate Attendant 1.0 FTE- The landfill is responsible for approximately $2.6 million in revenue, taken in primarily through the landfill gate. The gatehouse function is a six day a week,

8.5 hours per day operation and has been done with only one Landfill Gate Attendant and filled in around by taking other landfill personnel from other duties to fill the gaps in time. This function should have two assigned attendants for operate in a safe and fiscally sound manner, considering that the gatehouse is open six days a week for 8.5 hours per day. For fiscal security and good accounting practices there should be two established positions to handle the responsibilities for the revenue taken in through our gate operation.

27.34 FY 2023 Budget
Add Solid Waste Worker 1.0 FTE position - In order to provide the additional services required under the new State law (SB 1383) an additional Solid Waste Worker will be needed for the Food Scrap Program collection. This position will perform commercial food scrap collection on the second front load route as we add new customers to the collection program under the requirements of SB 1383.

Delete Service Maintenance Worker 2.0 FTE positions – These two existing positions within Public Works that are not currently filled are being proposed to be deleted with the funding used toward creating positions in the new homelessness response field division.

Planning and Community Development – The Department proposes making the following position changes:

Add new classification of Code Compliance Supervisor and 1.0 FTE position – This new position will assist with enforcement of the sidewalk vending program and also will assist with the very high workload in Code Compliance with complex matters involving safety violations as well as health violations, such as side walk vending, cannabis complaints, unpermitted encampments, lead paint violations, and the enforcement of executive orders. Code Compliance has recently begun actively collaborating with the City’s Finance Department to address unpermitted short term rentals in the city. This requires a designated Code Compliance Specialist (CCS) to confirm violations, monitor databases and abate unpermitted short term rentals to bring them into compliance. While the addition of the short term rental process is expected to increase the CCS case load by 50+ cases, it will help to bring revenue to the City through payment of Transient Occupancy Tax.

Change job title from Code Compliance Technician to Planning and Community Development Technician and Add 1.0 FTE position – A job title change was made to make the classification more flexible within the Planning Department to work in other divisions. This is a request for a new position with the new job title would increase the Department’s efficiency, effectiveness, and in some cases ability to meet deadlines mandated by current policy. In response to COVID, the Department had to develop online and digital services using current systems in sub-prime conditions – in a short time frame, and with aged resources such as the Department’s Land Use and Permitting system (LUP). As a result, many pieces of the planning and building processing workflows are disjointed, patch-worked with multiple systems, and/or overly complex.

Fortunately, a new LUP is expected which offers the department a chance to redefine its automation, online, and digital presence. Code Compliance, Rental Services, and the Building & Safety Division have positions that reflect more advanced technical skills through their current Code Compliance Technician and Management Analyst. However, the Department needs additional technical staff to address process inefficiencies, recommend solutions, maintain training and procedure development of new systems, including the LUP, Bluebeam Revu, and MyCity; and other technical needs as it relates to planning. The proposed Planning & Community Development Technician would bridge operational needs.

27.35 FY 2023 Budget
Information Technology – The Department proposes making the following position changes:

Add IT Business Systems Analyst III 1.0 FTE position - The City currently has two IT Business Systems Analyst (BSA) positions with one of the two positions assigned to the City’s Water Department. The second IT BSA works with the IT Department’s small application team to support over 100 applications for departments citywide. These city applications deliver and facilitate critical business process for every aspect of service delivery within the city including, payroll, human resources, public safety, wastewater services, land use management, permitting, parking, licensing, utility management, fleet services, street maintenance, document management, and more. The city does not operate without these IT business systems. Over the last 5-10 years, as City departments continue to look to technology for business improvement and increased efficiency, there has been a steady rise in the IT effort required to minimally sustain the existing mission critical applications. That dedicated effort has consumed the workload of the applications team and has affected the Department’s ability to proactively improve and modernize many of these systems and processes. With many of these legacy IT systems needing to be transformed (including the City’s 20 year old Enterprise Resource Planning application – Eden), there is risk to the City from both a business continuity and security perspective. It is vital that the City recognize this risk, and prioritize the need to modernize these mission critical IT business systems throughout the City. The addition of an IT BSA enhances the Department’s ability to supplement support, improve business process, and strategically plan and execute the transformation of these systems and processes. Specifically the department needs a senior level IT BSA III that will provide the advanced journey level classification that can perform a full scope of BSA duties that includes ownership throughout the entire project management cycle from functional design, Add Programmer Analyst I/II 1.0 FTE position - The Water Department's ongoing efforts to operationally sustain, improve and modernize their water production and delivery services continues to rely heavily on IT support services and systems. This reliance on IT has steadily increased over the years especially with regard to the IT Programmer Analyst position. In addition to the increased operational support, the Water Department has either already begun or is about to begin a number of multi-year projects that will require dedicated programmer analyst support moving forward to properly implement, integrate and maintain these complex IT systems. The City currently has two IT Programmer Analyst positions that serve thirteen departments city wide and close to 100 applications. The needs of the Water Department have outgrown the ability for IT to operationally serve the rest of the City as well as responsibly respond to the Water Department’s requirements. Given the important nature of the systems and applications being supported throughout the City by this IT position (HR, payroll, water production, waste water, traffic signals, public safety, land management etc.), not allocating necessary human resources to oversee these applications puts the city in a position of tremendous risk. The Water Department’s needs necessitate a dedicated 100% FTE IT Programmer Analyst I/II. This position would be an Information Technology position but 100% funded by the Water Department.

27.36 FY 2023 Budget
Parks and Recreation – The Department proposes making the following position changes:

Add Administrative Assistant I/II 1.0 FTE position – The department is requesting to add this position to increase operational flexibility. If approved, the department would complete an internal recruitment and once a candidate is hired, an equal FTE and position would be deleted in the FY23 mid-year budget adjustment. The position would allow the administrative workload to be more efficiently and equitably allocated across administrative staff that work in the central administrative office. This added AAII capacity would be used to perform key tasks, such as coordinating projects with other City departments, updating the department website, supporting committee activity and processing applications and permits, as well as registration support, payment processing, filing and other general administrative and customer service assistance.

Add Administrative Assistant III .50 FTE position – The addition of this position would help alleviate the workload currently accumulating with the department's administrative services supervisor, and therefore the Department requests to convert 0.50 of a full-time Administrative Assistant II (AAII) to an AAIII. If approved, the department would complete an internal recruitment for the 0.50 AAIII position. Once a candidate was selected and hired, an equal FTE and position would be deleted from the department budget as part of the FY23 mid-year adjustment. To allow the Administrative Services Supervisor to focus on critical projects, such as development and reporting of key performance indicators, promoting equity in our customer service and driving more user-friendly online services, a higher level administrative assistant is needed to pick up more advanced technical and specialized administrative support duties, including functioning as personal administrative assistant to the director and members of the management team, coordinating personnel and payroll for department staff, providing lead supervision to lower-level office support positions, and coordinating the administrative service delivery for those requesting permits from the department.

Add Special Event Coordinator 1.0 FTE position - The Special Events Coordinator position was eliminated in FY2021 at a time when society had largely shut down and the long-term budgetary impacts of COVID-19 were unknown. One year later, demand for events - both indoor and outdoor - has returned to, if not exceeded, pre-pandemic levels. Current Parks & Recreation staff capacity is unable to meet promoter and community service level expectations as they pertain to permit issuance, compliance, as well as monitoring of unpermitted activity. Established turnaround times for event permit response are difficult to maintain across staff positions that are seeing prepandemic workloads return to normal. Further, all current staff positions are working to expand revenue potential for their existing activity areas. This work is proving difficult to advance given their additional permit workload responsibilities. An inability to meet community and promoter event permit demand has in some cases led to events taking place anyway without the necessary permits, insurance and safety precautions, creating liability concerns. While event moratoriums have been utilized in the past to address staff capacity constraints, the current lack of enforcement capacity would possibly only increase liability exposure.

27.37 FY 2023 Budget
Water Department - The Department proposes making the following position changes:

Add Management Analyst 1.00 FTE position - The Water Department is managing a large 10 to 15 year capital program. Together with operations, projects and programs that are increasingly complex, additional expertise in this area is needed. A new management analyst will join the two existing management analysts with the tasks of researching, applying for and managing loans and grants; monitoring capital and operational spending; preparing and managing contracts; assisting with the preparation of annual budget documents; etc. In addition, and more specifically, expertise is needed in the areas of analyzing water use and consumption trends from data that will begin to be received in FY 2023 through the Department's meter replacement program; compiling the data to support an asset management system; and, providing ongoing analysis of water supply availability, making recommendations throughout the year with respect to source water use and potential curtailments.

Add Engineering Technician 1.00 FTE position - The engineering technician role at the Water Department supports a wide range of department operational needs including public counter support (plan reviews, general questions, information sharing, issuing permits, etc.), timely inspection of contractor-performed work, protection of public health (water main disinfection support, backflow & cross-connection prevention) and others (e.g. maintenance of equipment, GIS). The work is dynamic, fast-paced, and constantly changing due to ongoing regulatory changes at the state, construction business cycles and overall department needs. Prior to FY 2017, the Water Department supported three engineering technicians. This was subsequently changed to two technician positions with one additional assistant engineer to provide additional support (e.g. public counter duties). Since then, a significant increase in work has occurred and the current staffing is inadequate due to the following: 1) A significant increase in plan reviews has occurred since the adoption of state bills aimed to increase development (e.g. “ADU laws”, imposed housing goals, and zoning changes) 2) Requirements to support the backflow and cross-connection control program have increased (e.g. cross-connection surveys and number of backflow devices in system) 4) Additional tasks in support of the CIP including development of exhibits/drawings/maps, management of equipment inventories, performing inspections etc.; and, 5) An increase in public interactions due to overall City population growth. Increasing the number of engineering technician positions would greatly improve the quality, timeliness, and level of service provided to the public and City staff. This would be achieved through more consistent public counter coverage, better response times for inspections and plan reviews and overall quality improvements (e.g. GIS updates and record-keeping).

City Manager Office - proposes making the following position changes:

Delete vacant Administrative Assistant II (AAII) 1.0 FTE position - Add Administrative Assistant III (AAIII) 1.00 FTE position – The City Manager Office (CMO) needs a more flexible resource to be able to combine Clerk's duties such as reception, customer support, imaging, and helping be support staff for various meetings such as Council, commissions, and committees. Additionally, the City Manager’s Office

27.38 FY 2023 Budget
and Clerk’s will share certain duties, including Mayoral support, Action List management, Councilmember support, and more simple agenda report development - e.g., resolutions that are recurring, direction to the Mayor to write legislators letters of support for bills, etc. These duties exceed that of the AAII and can be picked up by an AAIII as well as continue to support other existing Clerk functions.

Add Management Analyst 1.00 FTE position - Extensive additional programmatic work has been added to the CMO over the past several years and includes: grants coordination and development; expanded climate action and sustainability work; Health in All Policies; diversity, equity and inclusion; expanded CORE work w/ the County (causing much more FTE hours than previous years); coordination and management of the Children's Fund (moving from PR to CMO); and emergent project and program needs such as UCSC water rights and sidewalk vending. Depending on the administrative recovery options for awarded grants, the position could have extensive cost recovery associated with it. However, that is dynamic any given year but noted here as possible offsets to the impact to the General Fund.

Police Department - The Department proposes making the following position changes:

Delete Grant Funded Community Services Officer 2.0 FTE positions - These positions were funded through grants and are no longer funded and therefore requested to be deleted.

Library - The Department proposes making the following position changes:

Delete vacant Library Assistant II 1.0 FTE position
Add Library Assistant III 1.0 FTE position -
During the pandemic the library reassigned a floor supervisor at the Downtown Branch to helping oversee the Collection Management staff. This change in assignment left the Downtown staff short one FTE. The Library plans to reclassify a vacant Collections Management LA II position, into a Library Assistant III position who would be assigned back to the Downtown Branch in order to make up for this staffing shortfall.

Economic Development Department – The Department proposes making the following position change:

Add Development Manager 1.0 FTE position - In the current fiscal year Economic Development has secured more than $57,000,000 in multi- year grant funding for affordable housing and mixed use projects. There are additional housing projects in the pipeline. The current staffing model is inadequate to support this workload. This position will be working primarily on Affordable Housing Development Projects.

27.39 Dept Activity Name Activity #
FY 2023 Proposed
Reduction Amount Description
One-Time or
Structural
Public Works 98,547
1 Public Works Administration 4101 1,450
Minor reductions among various administrative
(non-policy) accounts for office maintenance and
supplies Structural
2 Engineering 4102 9,500
Minor reductions among various administrative
(non-policy) accounts for temp, overtime, training
and office supplies Structural
3 Transportation Engineering 4220 17,000
Reduction in temp, on-call planning services and
misc supplies and services Structural
4 Parking Services 4221 66,097
Reduction in temporary, overtime, instrument &
software maintenance, misc operating supplies, and
landscaping to reflect past year trends Structural
5 Parking Citation and Permits Office 4229 4,500
Reduce overtime, temp and legal services to reflect
past year trends Structural
Economic Development 65,000
6 Economic Development- Project Admin 5401 10,000 Reduction for preliminary project expenses One-Time 7 Economic Development- Other 5590 20,000 Reduction in façade program One-Time 8 Economic Development- Other 5590 35,000 Reduction in Get Virtual website and graffiti removal Structural Parks & Recreation 178,007
9 Parks and Recreation Administration 3101 21,362
Reduce various administrative (non-policy) accounts
to reflect past year trends Structural
10 Recreation Classes 3201 31,395
Reduce printing and mailing activity guide, reduce
temp budget Structural
11 Special Events/Brochure 3202 308 Reduce temporary budget Structural 12 Sports 3205 2,168 Reduction in temp to run status quo programs Structural 13 Youth Programs 3206 35,844 Reduction in temp to run status quo programs Structural 14 Teen Programs 3207 19,855 Reduction in temp to run status quo programs Structural 15 Aquatics - Pool Programs 3208 19,500 Close Harvey West pool Nov-Mar Structural 16 Surf Museum 3210 1,164 Reduction in temp to run status quo programs Structural 17 London Nelson Community Center 3212 3,956 Reduction in temp to run status quo programs Structural

27.40 18 Civic Auditorium 3213 1,912 Reduction in temp to run status quo programs Structural 19 Urban Forestry 3105 698 Reduction in temp to run status quo programs Structural 20 Neighborhood Parks 3106 2,602 Reduction in temp to run status quo programs Structural 21 Community and Regional Parks 3107 1,950 Reduction in temp to run status quo programs Structural 22 Arana Gulch 3114 10,000 Leverage Public Trust Fund Structural 23 Summer Youth Trail Program 3115 886 Reduction in temp to run status quo programs Structural 24 Parks and Open Space 3120 5,357 Reduce temporary hours Structural 25 Golf Course 3131 19,050 Reduce temporary hours Structural Fire Department 682,313
26 Fire/EMS Operations 2202 30,000 Cancel upcoming vehicle purchase One-Time 27 Fire Prevention 2203 482,313 Freeze Division Chief One-Time 28 Fire Prevention 2203 100,000
Reduce vegetation management projects (replace
funding with grant funding) Structural
29 Marine Rescue Program 2204 50,000 Cancel lifeguard contract with Capitola One-Time 30 Marine Rescue Program 2204 20,000 Reduce funding for equipment Structural Information Technology Department 180,000
31 Information Technology 1251 58,000
Reduction in PC's scheduled for replacement, and
budget used for servers One-Time
32 Information Technology 1251 122,000
Reduction in digital lines, Microsoft office licenses,
reduce maint in conference rooms, eliminate mobile
device assessment management tool, eliminate
investigation research software Structural
Finance Department 72,500
33 Finance Administration 1241 72,500
Reduction in temp hours, legal support, alarm
monitoring, janitorial, courier service and office
supplies Structural
Human Resources Department 51,800
34 Human Resources 1230 51,800 Eliminated comp study and reduced office supplies Structural Police Department 641,794

27.41 35 Police Administration 2101 45,000
Team building program final stage, and internal
affairs investigations consultant Structural
Police Administration 2101 82,777 Freeze Admin Assistant II One-Time 36 Police Investigations 2102 91,177 Freeze Property & Evidence Specialist One-Time 37 Police Patrol 2103 288,064 Freeze 1 Police Officer and 1 Police Sergeant One-Time 38 Police Patrol 2103 134,776
Eliminate grant funded Community Service Officers
(grant complete) Structural
Planning and Community Development Department 311,358
39 Various 102,069
Reallocate General Fund personnel to Green
Building Fund Structural
Planning Administration 1301 44,289
Reduce temporary support, professional services,
office furniture and various administrative accounts One-Time Advanced Planning 1303 165,000 Professional services being offset by grant One-Time City Manager's Office 173,451
40 CM Other 72,642
Reduce Animal Control contract to reflect actual
known cost, and reduces HOPES contribution to
County by 10% Structural
41 City Council 1110 6,900 Reduction in strategic plan funding Structural 42 City Clerk 1214 20,809
Reduce various administrative (non-policy) accounts
to reflect past year trends Structural
43 City Attorney 1220 37,200 Reduction to legal administrative support Structural 44 City Manager 1210 35,900
Reduce various administrative (non-policy) accounts
to reflect past year trends Structural
Grand Total of Proposed Reductions 2,454,770

27.42 City of Santa Cruz - American Rescue Plan Act Summary On March 11, 2021, President Joseph R. Biden signed the American Rescue Plan Act (ARPA), which established the Coronavirus State Fiscal Recovery Fund and provided state and local governments with $350 billion in additional funding. The City of Santa Cruz previously received its first of two equal tranches in the amount of $7.1 million, for a total allotment of $14.2 million. The second payment of $7.1 million was received by the City in June 2022.

ARPA funds are one-time-only funding and eligible uses include:
 Response to Public health emergency due to COVID-19 or its negative economic impacts, including assistance to small businesses, households, housing support and hard hit industries such as tourism, travel and hospitality,
 Support workers performing essential work during the COVID-19 public health emergency by providing premium pay for eligible workers,
 Revenue replacement for the provision of government services to the extent of the reduction in revenue due to the COVID-19 public health emergency, relative to revenues collected in the most recent fiscal year prior to the emergency,
 Investments in water, sewer, and broadband infrastructure.

Funding must be obligated by end of calendar year 2024 and spent by the end of calendar year 2026, and cannot be deposited into any pension fund. The City of Santa Cruz committed use of ARPA funds for use in ending the FY 2021 employee furlough early, homelessness response, and revenue loss replacement.

Employee Furloughs
The City of Santa Cruz experienced significant economic and financial shock resulting from the impacts of COVID-19. Revenue loss was estimated at $21.7 million over a three year period, from the onset of the pandemic through July 2022. As well as projected deficits ranging from $1.0 to $7.8 million annually over the next 10 years. As a cost saving measure and to mitigate the projected losses, the City negotiated concession agreements with various bargaining units equivalent to a 10% furlough. The estimated savings from the agreed upon budget solution was estimated to save the City $5.4 million to the General Fund in FY 2021. In May of 2021, with the passing of ARPA and anticipated revenue of $14.2 million, the City was able to end the furlough six weeks earlier than originally agreed upon. The fiscal impact of ending the furlough early was $450,000 to the General Fund, which Council approved and committed use of ARPA funds.

Homelessness Response
On December 14, 2021 Council approved the use of $4,243,659 in ARPA funding for the implementation of Homelessness Response Programs. The programs included safe sleeping, safe parking, storage and infrastructure costs.

On March 8, 2022 Council approved the City’s three-year Homelessness Response Action Plan, which included the use of ARPA funds for program services, administration, and capital outlay. This amounted to $486,000 and is reflected in the FY 2023 Proposed Budget.

27.43 City of Santa Cruz - American Rescue Plan Act Summary Revenue Loss
Finally, the remaining $9 million in ARPA funds were committed to replace revenue loss as outlined in the eligible uses above. The use of ARPA funds supported the General Fund to pay for essential services such as public safety, parks, recreation activities and events, and street maintenance. By committing ARPA funds, the City was also able to avoid making more severe reductions in FY 2022. Below is a summary of ARPA fund commitments.

Use FY 2021 FY 2022 FY 2023 Total
Furlough 450,000
Homelessness Response
Care and Stewardship 150,000
Sheltering - Armory 1,272,622
Sheltering – Other 386,577
Safe Parking 614,460
Storage 20,000
Program
Administration
336,000
Transportation Vans 150,000
Hygiene Bay 1,800,000
Revenue Loss 8,991,229
Total ARPA $450,000 $13,234,888 $486,000 $14,170,888

27.44 City of Santa Cruz – State of California Homelessness $14 million Summary During the 2021 State Legislative session, Santa Cruz’s representatives, Senator John Laird and Assembly member Mark Stone obtained a one-time $14 million allocation from the State General Fund (CA $14M) for use by the City of Santa Cruz in addressing its issues with homelessness. A part of the justification for the funding is that Santa Cruz has a higher number of persons experiencing homelessness per city resident than much larger communities such as Los Angeles, San Francisco or San Diego. This situation, along with Santa Cruz’s lack of adequate resources to site and build facilities such as a Navigation Center, a community resource that has proven to be an important element in working with those experiencing homelessness elsewhere in the state, provided further justification for this special, one time appropriation.

On March 8, 2022, the Council approved appropriation of the CA $14M to implement the three-year Homelessness Response Action Plan. A Santa Cruz City/County joint recommendation of the use of funds is focused on making infrastructure investments and structural increases to organizational capacity to create and/or link unhoused individuals and families to stable housing, including: (1) expansion of the Coral Street Campus and increasing low-barrier, housing-outcome-focused sheltering capacity; (2) structural investments to expand operational capacity to shift to a consistent and proactive approach to addressing unsheltered homelessness in our community; and (3) a funding pool to support predevelopment for low-barrier interim housing and permanent supportive housing projects.

Finally, on May 10, 2022 the City Council received a quarterly update on Homelessness Response efforts and approved additional staffing to support the City’s Homelessness Response Action Plan, paid partially by the CA $14M. The positions to be funded include a Community Relations Specialist (0.5 FTE), Public Works Building Maintenance Worker II (0.5 FTE), Public Works Homelessness Response Field Worker (2.0 FTE), and Public Works Field Supervisor and Senior Homelessness Response Field Worker for Homelessness response Field Division (2.0 FTE). Of the total $564,791 in new positions approved, $352,058 will be appropriated from the CA $14M. A summary of the CA $14M is summarized in the table below. Funding for the CA $14M has been fully appropriated at this time.

Use FY 2022 FY 2023 Total
Operations
Care and Stewardship 1,476,424
Sheltering - Armory 2,454,000
Sheltering – Other 1,513,716
Safe Parking 1,049,000
Storage 40,000
Program Administration 278,500
Legislative Action 150,000
Operations Total 150,000 6,811,640
Capital
Master Plan Development
Predevelopment for Permanent Housing 500,000
Land Purchase 3,010,000
Design Navigation Center 710,000
Hygiene Bay 742,360
Shelter Infrastructure 1,076,000
Capital Total 3,010,000 4,028,360
Program Grand Total $3,160,000 $10,840,000 $14,000,000

27.45 P:\_Public\Budgets\CIP\FY23\FY23-27 CIP Summary for Budget Presentations 4-20-22.xlsx 4/21/2022 FY23-27 Capital Investment Program Budget (Active Projects) Project Title FY23 Request FY24 Estimate FY25 Estimate FY26 Estimate FY27 Estimate

1.3.1 Tait Diversion Rehab/Replacement 112,125 - 306,466 634,382 583,239

1.4 Felton Diversion Pump Station Assessment - - 123,159 509,763 446,244

1.5 NCD I/O Replacement Project 4,891,490 531,368 544,090 564,222 371,202

2.1.1 N. Coast Repair Ph 4 Des and Const 150,000 - - 1,879,294 3,647,046

2.2.1 Newell Crk. Pipeline Felton/Graham Hill 6,282,090 14,366,405 8,123,366 - -

2.2.3 Brackney Landslide Area Pipeline Risk Re 2,019,210 7,750,168 - - -

3.1 Water Supply Augmentation 2,119,721 2,932,871 6,342,964 8,934,115 10,225,337

3.2 Recycled Water Feasibility Study - - - - -

3.2 Recycled Water- SDC - - - - -

3.3 ASR Planning 718,540 62,000 - - -

3.3 ASR Planning- SDC - - - - -

3.3.1 ASR - Mid County Existing Infrastructure 1,261,950 3,543,978 2,760,432 - -

3.3.2 ASR - Mid County New Wells 45,541 2,571,670 3,846,369 3,927,533 2,443,635

3.3.3 ASR - Santa Margarita Groundwtr Basin 36,306 167,274 57,821 29,980 -

4.3 GHWTP CC Tanks Replacement 8,250,865 10,661,566 4,128,439 - -

4.4.1 Distribution System Water Quality Improv - - - - -

4.4 GHWTP Facilities Improvement Project 2,218,339 5,638,712 23,776,977 36,311,883 37,820,422

4.5 River Bank Filtration Study 44,221 539,201 2,115,461 1,901,130 817,429

4.7 Beltz 12 Ammonia Removal 107,519 - - - -

5.2 Meter Replacement 3,142,958 - - - -

6.1 University Tank 4 Rehab/Replacemen 253,523 4,720,472 161,034 - - Aerators at Loch Lomond 38,323 - - - -
Beltz WTP Filter Rehabilitation 480,645 - - - -
CMMS Software Replacement for Water Dept - - - - -
Facility & Infrastructure Improvements - 446,064 462,568 479,684 497,432 GHWTP Chlorination Station Improvements 250,000 - - - - GHWTP SCADA I/O Comm Replacement 230,000 - - - -
GHWTP SCADA Radio System Replacement - - - - -
Main Replacements - Eng Section - Transm - - - - -
Main Replacements - Engineering Section 1,048,976 2,333,345 - - - Main Replacements - Transmission -SDC - - - - -
Main Replacements -Customer Initiated - 55,758 57,821 59,961 62,179 Main Replacements- Distribution Section 437,315 1,449,708 1,503,346 1,558,973 1,616,654 Main Replacements -Outside Agency - 55,758 57,821 59,961 62,179 N Coast System Repair/Replace-Planning - - - - -
Security Camera & Building Access Upgrad - - - - -
Union/Locust Back-up Generator - - - - -
Water Program Administration 1,359,564 2,527,076 2,495,788 2,588,132 2,487,160 Water Program Management Reserve - 5,099,815 5,228,658 5,469,230 5,635,455 FY Total 35,499,222 65,453,210 62,092,578 64,908,242 66,715,612 Total FY23-27: 294,668,865
Attachment 3

27.46 Water Department
The mission of the Water Department is to ensure public health and safety by providing a clean, safe and reliable supply of water. We strive to serve the community in a courteous, efficient, cost-effective and environmentally sustainable manner.

We are passionate about our work and try to instill our values of integrity, innovation, objectivity, professionalism, teamwork and transparency in everything we do. We collect water, treat and test it, move it, store it, distribute it, track how much is used and bill our customers for their use. We are at the end of the phone when customers call, and the smiling faces customers see when they visit the Department. We educate our customers about the quality of their water and how to use less. Our work includes maintenance and operation of the Loch Lomond Recreation area, as well as the protection of Majors, Liddell, Newell Creek, Zayante and Laguna watersheds. We are stewards of an important community asset - the water system and all it entails, as well as a range of natural resources and ecosystems that many species depend on. We take pride in meeting the diverse needs of the broad region we serve and value our partnerships with neighboring agencies to develop long range solutions to the regions drinking water needs.

Attachment 1

27.47 FY 2023 Budget
Core Services
Everyday Department staff work hard to produce and deliver millions of gallons of water to nearly 98,000 customers and perform all the related utility, land and natural resource management activities that often happen behind the scenes, but play a part in providing reliable, high quality water service to our community. In addition to the Department's daily duties, the Department is undergoing a major reinvestment in water infrastructure from upgrades to the water treatment plant, improvements to the Loch Lomond dam and the replacement of all system meters, to mention a few. In order to perform this work, the Water Department is organized into four areas: Operations, Engineering, Customer Service and Administration.

Operations - The Operations group is responsible for managing the watersheds; collecting, treating and testing untreated and treated water; and storing and distributing treated water to our customers and consists of the following sections: Water Resources, Water Production, Water Quality Control (laboratory), Distribution and the Water Recreation Facility (Loch Lomond).
• The Water Resources Management section is responsible for the drinking water source protection, environmental regulatory compliance, and general natural resource management. The section coordinates environmental projects related to water rights, water supply, habitat conservation, and environmental resource protection. • The Water Production section is responsible for production, operation, and maintenance of water storage, diversion, collection, pumping, and treatment facilities from all sources throughout the system. This 24/7 work is made more challenging with the Concrete Tank Replacement project underway and planned upgrades to the Graham Hill Water Treatment Plant in the near future.
• The Water Quality Control (laboratory) section performs all water quality testing, and oversees matters pertaining to water quality control to maintain compliance with State and federal standards and for planning for future treatment needs. • The Water Distribution section is responsible for the maintenance and operation of all transmission mains, distribution mains, service lines, and hydrants in the service area.

Distribution staff also replace significant segments of distribution mains as part of the Capital Investment Program (CIP).
• The Water Recreation Facility section operates and maintains Loch Lomond Recreation Area. This section is also responsible for patrolling watershed property and protecting source water quality. We are pleased our ranger staff are, once again, providing in-person, watershed education program for local elementary school children at Loch Lomond.

27.48 FY 2023 Budget
Engineering - The Water Engineering section is composed of two main functions: Engineering and Utility and Environmental Planning.
• The Water Engineering section provides engineering, planning, project design and construction management necessary for water facilities, as well as evaluation and installation of water saving technologies. The section keeps current with new technologies and water quality issues, remaining sensitive to mitigation of environmental impacts; reviews all requests for water services; maintains record of facilities, installations and maps; and oversees the Backflow Prevention Program. In 2017, the department embarked on an ambitious system-wide reinvestment with the Engineering section at the helm. This program includes the replacement of storage tanks, transmission lines, and the exploration of increasing storage in underground aquifers in partnership with neighboring agencies. • The Utility and Environmental Planning group helps the Department to plan adequately for a 21st century drinking water system. Foundational documents such as the Urban Water Management Plan, serves as a guide to future projects by ensuring there are adequate water supplies. In addition, there are numerous federal, State and local environmental laws the Department must comply with to complete the planned infrastructure investments in the water system.

Customer Service - The Customer Service group consists of three sections: Customer Service, the Meter Shop and Water Conservation. These three sections interface with the public frequently and we strive to provide consistently excellent customer service. • The Customer Service section (Santa Cruz Municipal Utilities – SCMU) provides customer service for water, sewer, refuse and recycling services to the residents and businesses of the City of Santa Cruz, and only water services to the unincorporated surrounding areas.

This section manages utility accounts and billing, processes opening and closing of accounts; and provides service in response to customer requests. • The Meter Shop section is responsible for reading, inspecting, installing, maintaining, and replacing water meters in the service area that covers the City of Santa Cruz and the unincorporated surrounding areas. As part of a large capital project, all water meters in the service area are being replaced. The new meters will give water customers more timely and accurate usage information as well as improve the billing process. • The Water Conservation section is responsible for promoting efficient water use and for implementing management practices that reduce customer demand for water, including public information and education activities, water budgets for large landscape customers, plumbing fixture replacement and appliance rebate programs, technical assistance, administration of landscape, and water waste regulations. The Conservation section has been instrumental to teaching customers about the new metering system and how to use it to their advantage.

Administration - The Water Administration section coordinates and manages department business by focusing on the following operational areas: human resources, finances, public relations, safety, and regulatory compliance. Administration is responsible for maintaining a rate structure that reflects cost of service, solicits federal, state and other funds to finance the Department's Capital Investment Program, and ensures adequate reserves. This section also facilitates the communication and interaction with the Water Commission, City Council City Manager’s Office and regulatory agencies.

27.49 FY 2023 Budget
Accomplishments and Goals
FY 2022 Accomplishment
InfrastructureDT & Other Business SectorsFiscal SustainabilityCore ServicesEquity, Health & WellBeing, SustainabilityNew & Improved Funding SourcesGreen Economy Produced and delivered 2.49 billion
gallons of clean, safe, reliable drinking
water.
x
Completed the Proposition 218
process which resulted in City Council
approval of 5 year rates (2023-2027)
along with the Long Range Financial
Plan
x x
Secured funding for critical water
supply capital projects, including an
application invitation from the
Environmental Protection Agency to
obtain a $164 million low interest loan.
x x x
Completed the Department Emergency
Response Plan, as required by the
2018 America’s Water Infrastructure
Act
x
Completed Laguna Creek Diversion
retrofit project x x
Incorporated the source water
monitoring program which resulted in
34% more samples processed
x x
Completed the Ocean Street Extension
Water Main Replacement x x
Began installation phase of the
system-wide Meter Replacement
Project
x x x
Updated the Operations Plan for the
Graham Hill Water Treatment Plan x
Completed the 2020 Urban Water
Management Plan and Water Shortage
Contingency Plan
x

27.50 FY 2023 Budget
FY 2023 Goals
InfrastructureDT & Other Business SectorsFiscal SustainabilityCore ServicesEquity, Health & WellBeing, SustainabilityNew & Improved Funding SourcesGreen Economy Submit the $164 million low interest
loan application for the federal
Environmental Protection Agency
(WIFIA) and the initial package for
Drinking Water State Revolving Fund
for Facility Improvement Project at the
Graham Hill Water Treatment Plant.
x x
Solicit grants from federal and state
programs as they become available x
Complete the Anadromous Salmonid
Habitat Conservation Plan x x
Finalize the water rights petition
process
x x x
Continue work on wildfire resiliency
planning x x
Complete construction on the Newell
Creek Dam Inlet/Outlet Project x
Complete the installation phase of the
Meter Replacement Project x x
Complete design and begin
construction on two pipelines
(Brackney Landslide Risk Reduction
project and the Newell Creek Pipeline
Felton to Graham Hill Road project)
x
Complete the Aquifer Storage and
Recovery (ASR) demonstration studies
at Beltz Wells 8 and 12 leading to the
development of full scale & permanent
injection and retrieval sites
x

27.51 FY 2023 Budget
Workload Indicators and Performance Measures
Workload Indicators Focus Area
FY
2019
Actual
FY
2020
Actual
FY
2021
Actual
FY 2022
Estimate
FY
2023
Goal
Drinking water consumed
(billions of gallons)
Core Service 2.36 2.26 2.13 2.04 2.5
Number of phone calls,
emails and lobby visits
handled by SCMU
Customer Service Unit
Core Service 59,621 63,653 64,000 64,000 64,000
Amount of dollars of new
construction investments
(in millions)
Infrastructure $48.5 $29.7 $46.0 $113.2 $35.5
Performance Measures Focus Area
FY
2019
Actual
FY
2020
Actual
FY
2021
Actual
FY 2022
Estimate
FY
2023
Goal
Compliance with drinking
water standards Core Service 100% 100% 100% 100% 100%
Number of workers comp
claims requiring employee
absence greater than 30
days
Core Service 1 0 0 0 0
Maintain excellent bond
ratings to ensure favorable
borrowing rates thereby
reducing cost to
customers
Infrastructure AA-/A+ AA-/A+ AA-/A+ AA-/A- AA-/APercentage of customer bills paid within 60 days (1)
Fiscal
Sustainability 98% 97% 91% 94% 98%
(1) The Governor's Executive Order prohibited water shut-off from 4/2/20 to 12/31/21. Accordingly, FY20 an FY21 are higher than normal delinquency rates.

27.52 Budget Summary -
FY 2023 Budget
Water
Fiscal Year 2022
Adopted
Budget
Amended*
Budget
Year‐End
EsƟmate
Fiscal Year
2023
Proposed
Fiscal Year*
2021
Actuals
EXPENDITURES BY CHARACTER:

Personnel Services 13,774,554 16,479,243 16,714,151 15,427,372 17,691,829 Services, Supplies, and Other Charges 13,504,675 15,646,123 16,402,854 14,113,092 16,156,529 Capital Outlay 383,593 601,500 762,898 537,012 323,000
Debt Service 3,683,200 4,098,626 4,098,626 4,098,710 5,131,705 Total Expenditures 31,346,021 36,825,492 37,978,530 34,176,186 39,303,063 EXPENDITURES BY ACTIVITY:

Water AdministraƟon 7101 5,838,628 6,832,579 7,030,921 6,171,092 6,952,879 Water Engineering 7102 1,969,117 2,733,585 2,759,319 2,331,996 2,929,364 Water Customer Services 7103 1,985,247 2,156,811 2,159,047 2,073,964 2,221,949 Water ConservaƟon 7104 726,902 923,414 1,095,295 801,656 1,238,470 Water Resources 7105 2,039,642 1,898,211 2,111,936 1,673,906 2,104,695 Water ProducƟon 7106 6,641,345 8,114,704 8,231,200 7,773,018 8,315,225 Water Quality 7107 1,601,453 1,766,806 1,785,987 1,754,292 2,052,894 Water DistribuƟon 7108 4,428,150 5,164,890 5,330,832 4,868,405 5,292,431 Water RecreaƟon 7109 1,117,544 1,398,771 1,401,827 1,227,785 1,399,896 Water OperaƟons 7110 500,959 832,416 719,055 450,772 635,719 Water Meter Shop 7113 861,595 904,679 979,178 808,920 1,027,836 Water Debt Service 7140 3,604,550 4,098,626 4,098,626 4,098,710 5,131,705 Drought Response 2014 7199 30,890 ‐ 275,307 141,670 ‐
Subtotal  Other Funds  31,346,021 36,825,492 37,978,530 34,176,186 39,303,063 Total Expenditures  31,346,021 36,825,492 37,978,530 34,176,186 39,303,063 RESOURCES BY FUND
Water 711 37,572,138 40,699,706 40,707,839 36,129,170 38,526,543 Water Rate StabilizaƟon  2,980,114 3,248,689 3,248,689
Fund
713 2,860,909 3,058,312
Water System Development  1,325,845 410,000 410,000
Fees Fund
715 472,000 472,000
Water ‐ Emergency Reserve  131,970 ‐ ‐
Fund
717 - ‐
Total  Resources 42,010,066 44,358,395 44,366,528 39,462,079 42,056,855 TOTAL AUTHORIZED PERSONNEL:

FY 2020 FY 2021 FY 2022
117.25 118.25 120.25
*Sums may have discrepancies due to rounding 27.53
FY 2023 Budget
Staffing
Positions
2019-20
Revised*
2020-21
Revised*
2021-22
Revised*
2022-23
Proposed
FY 2023
Change
Administrative Assistant I/II 2.00 2.00 2.00 2.00 -
Administrative Assistant III 2.00 2.00 2.00 2.00 -
Assistant Engineer I/II 4.00 4.00 4.00 4.00 -
Associate Planner I/II 3.00 3.00 3.00 3.00 -
Associate Professional Engineer 4.75 4.75 4.75 4.75 -
Chief Ranger 1.00 1.00 1.00 1.00 -
Community Relations Specialist 1.00 1.00 1.00 1.00 -
Customer Service Manager 1.00 1.00 1.00 1.00 -
Deputy Water Director/Engineering
Manager 1.00 1.00 1.00 1.00 -
Deputy Water Director/Operations
Manager 1.00 1.00 1.00 1.00 -
Director of Water Department 1.00 1.00 1.00 1.00 -
Engineering Associate 1.00 1.00 1.00 1.00 -
Engineering Technician 2.00 2.00 2.00 3.00 1.00
Environmental Microbiologist I/II/III 2.00 2.00 2.00 2.00 - Environmental Programs Analyst I/II 1.00 1.00 1.00 1.00 - Laboratory Technician 2.00 2.00 2.00 2.00 -
Management Analyst 2.00 3.00 3.00 4.00 1.00
Principal Management Analyst 1.00 1.00 2.00 2.00 -
Principal Planner 1.00 1.00 1.00 1.00 -
Ranger I/II 3.00 3.00 3.00 3.00 -
Ranger Assistant 3.50 3.50 3.50 3.50 -
Senior Electrician 1.00 1.00 1.00 1.00 -
Senior Professional Engineer 1.00 1.00 1.00 1.00 -
Senior Ranger 2.00 2.00 2.00 2.00 -
Senior Water Distribution Operator 6.00 6.00 6.00 6.00 - Superintendent of Water Treatment
and Production 1.00 1.00 1.00 1.00 -
Superintendent of Water Distribution 1.00 1.00 1.00 1.00 - Utility Account Specialist 4.00 4.00 4.00 4.00 -
Utility Maintenance Technician 4.00 4.00 4.00 4.00 -
Utility Service Field Technician I/II 2.00 2.00 2.00 2.00 - Utility Service Representative I/II 6.00 6.00 6.00 6.00 - Utility Supervisor 1.00 1.00 1.00 1.00 -
Water Chief Financial Officer 1.00 1.00 1.00 1.00 -
Water Conservation Representative 2.00 2.00 2.00 2.00 - Water Distribution Crew Leader III/IV 6.00 6.00 6.00 6.00 -

27.54 FY 2023 Budget
2019-20
Revised*
2020-21
Revised*
2021-22
Revised*
2022-23
Proposed
FY 2023
Change
Water Distribution Operator II/ III 9.00 9.00 9.00 9.00 - Water Distribution Sup V Chief
Distribution Operator 1.00 1.00 1.00 1.00 -
Water Facilities Electrical/Instr Tech
II/III 1.00 1.00 1.00 1.00 -
Water Facilities Field Supervisor 1.00 1.00 1.00 1.00 - Water Facilities Mechanical Tech II/III 2.00 2.00 2.00 2.00 - Water Facilities Mechanical
Supervisor 1.00 1.00 1.00 1.00 -
Water Meter Specialist 3.00 3.00 3.00 3.00 -
Water Meter Supervisor 1.00 1.00 1.00 1.00 -
Water Meter Technician 1.00 1.00 1.00 1.00 -
Water Quality Chemist I/II/III 2.00 2.00 2.00 2.00 -
Water Quality Manager 1.00 1.00 1.00 1.00 -
Water Resources Analyst 3.00 3.00 3.00 3.00 -
Water Resources Supervisor 2.00 1.00 1.00 1.00 -
Water Treatment Operator II/III/IV 8.00 8.00 8.00 8.00 - Water Treatment OIT II/III/IV 1.00 1.00 1.00 1.00 -
Water Treatment Sup IV/V-Chief Plant
Operator 1.00 1.00 1.00 1.00 -
Watershed Compliance Manager 1.00 1.00 1.00 1.00 -
117.25 117.25 118.25 120.25 2.00
*Revised salary authorizations are Adopted staffing plus any Mid-year adjustments

27.55 FY 2023 Budget
Organization Chart
Director
Community
Relations Specialist
Customer Service
Manager
Utility Customer
Service Supervisor
Meter Shop
Supervisor
Planning and
Conservation
Utility Planning
Water
Conservation
Chief Financial
Officer
Long Range
Financial Planning
& Management
Budget and
Administration
Deputy Director &
Engineering
Manager
Sr. Engineer &
Santa Cruz Water
Program Manager
Environmental
Planning
Deputy Director &
Operations
Manager
Water Production
Superintendent
Distribution
Superintendent
Watershed
Compliance
Manager
Water Quality
Manager

27.56 Financial Summary
FY 2022 Adjusted
Budget YTD Budget Actual Variance $+/(-)
Variance %
+/(-)
Operating Revenues
Water Sales 42,270,994 31,703,246 28,414,653 (3,288,592) (10%) Other Charges for Services 1,323,299 992,474 1,032,046 39,572 4% Other Revenues 362,235 271,676 164,480 (107,196) (39%)
Grants 975,260 731,445 1,051,389 319,944 44%
Investment Earnings 29,124 21,843 104 (21,740) (100%)
Total Operating Revenues 44,960,913 33,720,684 30,662,672 (3,058,013) (9%) Operating Expenses
Salaries & Wages 10,763,913 8,072,935 7,621,481 (451,454) (6%) Employee Benefits 5,715,330 4,286,498 2,586,267 (1,700,230) (40%) Services, Supplies & Other 15,529,407 11,647,055 9,397,300 (2,249,755) (19%) Capital Outlay 110,427 82,820 194,994 112,173 135%
Debt Service - Principal & Interest 3,829,040 2,871,780 2,871,780 - 0% Total Operating Expenses 35,948,117 26,961,088 22,671,822 (4,289,266) (16%) Net Operating Revenue (Loss) 9,012,796 6,759,597 7,990,850 1,231,253 18% Debt Service Coverage (Target >= 1.50x) 3.35x 3.35x 3.78x Revenues
Expenses
Cash
Fund Balances YTD Balance Year End
Target Balance
711 - Enterprise Operations 5,121,947 7,919,772
713 - Rate Stabilization 9,440,189 10,000,000
715 - System Development Charges 5,575,815 N/A
716 - 90 Day Operating Reserve 8,206,869 7,919,772
717 - Emergency Reserve 3,010,258 3,000,000
718 - Mount Hermon June Beetle Endowment 145,352 144,000 719 - Equipment Replacement 649,401 700,000
Days' Cash (Includes only Funds 711 & 716) 151 180
Days' Cash Target 180 180

SANTA CRUZ WATER DEPARTMENT FINANCIAL REPORT
Fiscal Year 2021-22 through March 31, 2022
(Unaudited)
Actual vs. YTD Budget
-
200,000,000
400,000,000
600,000,000
800,000,000
1,000,000,000
1,200,000,000
1,400,000,000
1,600,000,000
1,800,000,000
2,000,000,000
FY 19 FY 20 FY 21 FY 22
YTD Water Consumption - Gallons
Single Family Residential Commercial
Multiple Family Residential IRR/N Coast
UCSC
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Water Sales Revenue (in thousands)
FY 19 FY 20 FY 21 FY 22
FY 21, 3rd Quarter
$19.0 million
Salaries & Wages Employee Benefits Services, Supplies & Other FY 22, 3rd
Quarter
$19.6 million
Salaries & Wages Employee Benefits Services, Supplies & Other Attachment 2

27.57 Project Titles
Total Project
Budget at
Completion (1)
(escalated dollars)
Prior Year
Actuals
FY22 Actuals
thru 3/31/22
Remaining to
Complete
Status as of
2/15/22

WATER SUPPLY RESILIENCY & CLIMATE ADAPTATION PROJECTS
Water Supply Augmentation Strategy
Beltz Wellfield Aquifer Storage and Recovery
ASR Planning 3,950,000 2,986,391 209,701 P 753,908 lanning ASR Mid County Existing Infrastructure 2,360,000 43,219 185,506 P 2,131,275 lanning ASR Mid County New Wells 22,410,000 - 22,410,000 - Planning Santa Margarita Aquifer Storage and Recovery and In Lieu Water Transfers and Exchanges ASR Santa Margarita Groundwater 21,750,000 - 21,750,000 - Planning ASR New Pipelines 42,320,000 - 42,320,000 - Planning
In Lieu Transfers and Exchanges - - - P - lanning
Studies, Recycled Water, Climate Change, Aquifer Storage and Recovery Water Supply Augmentation 1,340,000 698,965 291,831 P 349,205 lanning Recycled Water Feasibility Study 1,010,000 767,821 35,225 P 206,954 lanning Subtotal Water Supply Augmentation Strategy 95,140,000 4,496,396 722,264 89,921,341 Subtotal Water Supply Resiliency and Climate Adaptation Projects 95,140,000 4,496,396 722,264 89,921,341

INFRASTRUCTURE RESILIENCY AND CLIMATE ADAPTATION
Raw Water Storage Projects
NCD I/O Replacement Project (2) 48,501,511 109,570,000 18,862,719 42,205,771 Construction Aerators at Loch Lomond 640,000 440,462 20,329 179,209 Construction Subtotal Raw Water Storage Projects 48,941,973 110,210,000 18,883,048 42,384,980 Raw Water Diversion and Groundwater System Projects
Laguna Creek Diversion Retrofit 3,810,000 1,158,521 1,561,934 1,089,546 Post Construction North Coast System Majors Diversion Retrofit 5,330,000 163,187 - 5,166,813 To close Tait Diversion Retrofit 6,630,000 297,062 34,655 6,298,282 Planning Coast Pump Station Rehab/Replacement 10,370,000 - Not In 10,370,000 itiated Beltz 10 and 11 Rehab & Development 360,000 187,814 - To c 172,186 lose Felton Diversion Pump Station Improvements 4,270,000 201,255 51,125 P 4,017,620 lanning Beltz 12 Ammonia Removal 1,800,000 - 84,052 Cons 1,715,948 truction Beltz WTP Filter Rehabilitation 450,000 69,525 286,545 On 93,930 -hold Subtotal Raw Water Diversion and Groundwater System Projects 33,020,000 2,077,364 2,018,311 28,924,325 Raw Water Transmission
Coast Pump Station 20-inch RW Pipeline Replacement 7,140,000 6,879,089 30,652 To c 230,259 lose Newell Creek Pipeline Rehab/Replacement 1,680,000 1,162,817 265,283 To c 251,900 lose Newell Creek Pipeline Felton/GHWTP 30,650,000 1,065,789 820,755 D 28,763,456 esign Newell Creek Pipeline Felton/Loch Lomond 40,730,000 - P 40,730,000 lanning Brackney Landslide Area Pipeline Risk Reduction (3) 577,691 5,640,000 527,594 4,534,715 Design North Coast Pipeline Repair/Replacement - Planning 640,000 599,524 136,412 (95,936) Planning North Coast Pipeline Repair/Replacement - Ph 4 20,140,000 - 20,140,000 Planning North Coast Pipeline Repair/Replacement - Ph 5 20,870,000 - 20,870,000 Not Initiated Subtotal Raw Water Transmission 10,284,911 127,490,000 1,780,696 115,424,393 Surface Water Treatment
GHWTP Tube Settler Replacement 1,630,000 1,459,022 - 170,978 To close GHWTP Flocculator Rehab/Replacement 1,980,000 1,783,039 28,484 168,477 Post Construction GHWTP Concrete Tanks Replacement 46,210,000 7,412,373 4,305,837 34,491,790 Construction GHWTP Facilities Improvement Project 146,170,000 6,513,293 1,140,897 138,515,810 Design River Bank Filtration Study 7,390,000 963,735 4,719 6,421,546 Planning Subtotal Surface Water Treatment 18,131,462 203,380,000 5,479,936 179,768,602 Distribution System Storage, Water Main and Pressure Regulation, and Metering Projects University Tank No. 4 Rehab/Replacement 6,320,000 199,525 78,489 D 6,041,986 esign University Tank No. 5 Rehab/Replacement 4,310,000 4,228,104 8,919 To c 72,977 lose Meter Replacement Project 13,710,000 1,656,857 2,427,144 Cons 9,625,999 truction Engineering and Distribution Main Replacement Projects (4) 5,878,920 35,050,000 616,600 28,554,480 Ongoing Distribution System Water Quality Improvements 90,000 24,259 2,989 P 62,752 lanning Facility & Infrastructure Improvements 7,890,000 - 8,753 Ongo 7,881,247 ing Subtotal Distribution Storage, Wmain Pressure Reg, and Metering 67,370,000 11,987,665 3,142,895 52,239,440 Subtotal Infrastructure Resiliency and Climate Adaptation 541,470,000 91,423,374 31,304,886 418,741,740

OTHER RISK MANAGEMENT AND RISK REDUCTION PROJECTS
Site Safety and Security
Security Camera & Building Access Upgrades 550,000 281,433 28,404 Cons 240,163 truction GHWTP Gate Entrance Upgrades 745,000 184,351 572,157 Cons (11,508) truction GHWTP SCADA Radio System Replacement 150,000 - - P 150,000 lanning CMMS Software Replacement - Water Share 390,000 - 11,085 P 378,915 lanning Subtotal Site Safety and Security 1,835,000 465,784 611,646 757,570 Staff Augmentation
Water Program Administration (5) - 23,850,000 1,240,328 22,609,672 Ongoing Subtotal Staff Augmentation - 23,850,000 1,240,328 22,609,672 Contingency
Management Reserve (6) - 45,630,000 - 45,630,000 Ongoing Subtotal Contingency - 45,630,000 - 45,630,000
Storage for Emergency Facility and System Repair Tools and Equipment Bay Street Reservoir Storage Building 150,000 - - 150,000 To close Union/Locust Admin Building Back Up Power Generator 50,000 - - 50,000 Design Subtotal Storage for Emergency and System Repair - 200,000 - 200,000 Subtotal Other Risk Management and Risk Reduction Projects 465,784 71,515,000 1,851,974 69,197,242 GRAND TOTAL 96,385,554 708,125,000 33,879,124 577,860,322 (4) Prior year actuals for Main Replacements start in FY19. (5) Staff augmentation budget appropriations and actual expenses are transferred to specific projects during year-end process. (6) Management Reserve budget appropriations are transferred to specific projects upon approval. (1) Total Project Budget at Completion is from the FY22 budget request and rounded to the nearest 10,000. (3) FY22 Actuals do not include $449,187 in FEMA HMGP grant funding received. (2) City Finance moved $197,756 in Prior Year Actuals to FY22 Actuals.

CIP Summary: Fiscal Year 2022 3rd Qtr

27.58 Water O&M FY23 Proposed by Section
Actv Title FY 2021
Actual
FY 2022
Ado Budget
FY 2022
Adj Budget
FY 2022
Year-To-Date
Actual
FY 2022
Year End Est
FY 2023
FN Approved
Fund 711 -- Water
7101 Water Administration 5,780,593 6,832,579 7,083,921 4,967,239 6,171,092 6,952,879 7102 Water Engineering 1,969,117 2,733,585 2,759,319 1,633,965 2,331,996 2,929,364 7103 Water Customer Services 1,985,247 2,156,811 2,159,047 1,504,383 2,073,964 2,221,949 7113 Water Meter Shop 861,595 904,679 979,178 536,078 808,920 1,238,470 7104 Water Conservation 579,067 923,414 1,095,295 586,811 801,656 2,104,695 7105 Water Resources 2,039,642 1,898,211 2,111,936 1,124,585 1,673,906 8,315,225 7110 Water Operations 500,959 832,416 719,055 312,643 450,772 2,052,894 7106 Water Production 6,641,345 8,114,704 8,231,200 5,036,755 7,773,018 5,292,431 7107 Water Quality 1,601,453 1,766,806 1,785,987 1,298,577 1,754,292 1,399,896 7108 Water Distribution 4,428,150 5,164,890 5,277,832 3,082,172 4,868,405 635,719 7109 Water Recreation 1,117,544 1,398,771 1,401,827 878,463 1,227,785 1,027,836 7140 Water Debt Service 3,467,752 4,098,626 4,098,626 1,483,534 4,098,710 5,131,705 7199 Drought Response 30,890 - 275,307 143,844 141,670 - 31,003,353 36,825,492 37,978,530 22,589,050 34,176,186 39,303,063 Run: 4/20/2022 10:46 AM
Criteria: As Of = 4/20/2022; Period = 0,1..12; Summarize By = Report,Fund,Object; Activity = 7101, 7102, 7103, 7104, 7105, 7106, 7107, 7108, 7109, 7110, 7110, 7113, 7140, 7199 Attachment 4

27.59 Attachment
5 27.60

WATER COMMISSION
212 Locust Street, Suite A, Santa Cruz, CA 95060 Phone: (831) 420-5200 June 7, 2022
Mayor Sonja Brunner
Vice Mayor Martine Watkins
Councilmember Sandy Brown
Councilmember Justin Cummings
Councilmember Renee Golder
Councilmember Shebreh Kalantari-J ohnson
Councilmember Donna Meyers
Dear Mayor Brunner, Vice Mayor Watkins and Councilmembers Brown, Cummings, Golder, Kalantari-Johnson and Meyers:

The Santa Cruz Water Commission is pleased to convey our recommendations regarding the Water Department's FY 2023 Recommended Operating Budget and Capital Investment Program (CIP) Budget. Per the discussion below, we unanimously recommend the Council's approval of the proposed budgets.

Through a series of staff presentations and discussions at publicly noticed Water Commission meetings between June 2021 and May 2022, the Water Commission participated in detailed reviews of the Department's financial position, including the 2021 Long-Range Financial Plan and proposed FY 2023 - FY 2027 Water Rates, the FY 2023 proposed CIP, Operating Budget and an updated 5-year Financial Pro Forma.

The Financial Pro Forma is a product of the Department's financial model and provides a comprehensive, 5-year view of not only the Department's revenue requirements, expenditures and projected use of debt funding and the resulting debt service for capital investments, but also a picture of the Department's ability to meet its financial performance target and metrics such as debt service coverage and days of operating cash m reserve.

The Water Department's Recommended FY 2023 Operating and CIP budgets (Budgets) were developed to address the needs of the Water Department to provide a reliable and high quality supply of potable water to a population of approximately 100,000 people.

The Commission's recommendations to the Council to approve the FY 2023 Budgets is the result of the Commission receiving and discussing information with staff on a diverse set of topics covering the projects and resources needed to meet water supply and infrastructure reliability goals. The details of the Water Commission's

27.61 Mayor Brunner, Vice Mayor Watkins and Councilmembers June 7, 2022