Santa Cruz City Council
June 28, 2022

18) PROJECT REPRESENTATIVES. The Project Representatives during the term of this Grant Agreement are as follows:

Department of Water Resources Scotts Valley Water District Arthur Hinojosa
Manager, Division of Regional Assistance
P.O. Box 942836
Sacramento, CA 94236
Phone: (916) 902-6713
Email: [email protected]
Piret Harmon
General Manager
2 Civic Center Drive
Scotts Valley, CA 95066
Phone: (831) 600-1902
Email: [email protected]
Direct all inquiries to the Project Manager:

Department of Water Resources Scotts Valley Water District Mina Danieli
Senior Environmental
Scientist
P.O. Box 942836
Sacramento, CA 94236
Phone: (916) 902-7516
Email:[email protected]
David McNair
Operations Manager
2 Civic Center Drive
Scotts Valley, CA 95066
Phone: (831) 600-1903
Email: [email protected]
Either party may change its Project Representative or Project Manager upon written notice to the other party.
19) STANDARD PROVISIONS. This Grant Agreement is complete and is the final Agreement between the parties. The following Exhibits are attached and made a part of this Grant Agreement by this reference:

Exhibit A – Work Plan
Exhibit B – Budget
Exhibit C – Schedule
Exhibit D – Standard Conditions
Exhibit E – Authorizing Resolution
Exhibit F – Report Formats and Requirements
Exhibit G – Requirements for Data Submittal
Exhibit H – State Audit Document Requirements for the Grantee Exhibit I – Local Project Sponsors and Project Locations Exhibit J – Appraisal Specifications
Exhibit K – Information Needed for Escrow Processing and Closure Exhibit L – Project Monitoring Plan Guidance
Exhibit M – Invoice Guidance for Administrative and Overhead Charges DocuSign Envelope ID: 741D7B02-9E38-495D-BABA-63DA2974673C

35.23 Grant Agreement No. 4600014630

IN WITNESS WHEREOF, the parties hereto have executed this Grant Agreement.

STATE OF CALIFORNIA

DEPARTMENT OF WATER RESOURCES

SCOTTS VALLEY WATER DISTRICT
Arthur Hinojosa
Manager, Division of Regional Assistance
S
Piret Harmon
General Manager
Date Date ____________________________
Approved as to Legal Form and Sufficiency
Robin Brewer
Assistant General Counsel,
Office of the General Counsel
Date___________________________
DocuSign Envelope ID: 741D7B02-9E38-495D-BABA-63DA2974673C 6/16/2022
For
6/16/2022
6/16/2022

35.24 Grant Agreement No. 4600014630

EXHIBIT A

WORK PLAN
Regional Drought Resiliency Project
IMPLEMENTING AGENCY: Scotts Valley Water District (Grantee) PROJECT DESCRIPTION: This Project will construct a 12-inch diameter bi-directional intertie pipeline and pump station between the Santa Cruz Water Department (SCWD) and the Grantee’s distribution systems to facilitate transfers of water supply in droughts or other emergencies at an approximately rate of up to 4,000 acre-feet per year. Additionally, this Project will construct a new groundwater well in Scotts Valley that will allow for increased extraction capacity to strengthen the Grantee’s ability to deliver water to SCWD in drought conditions. The intertie pipeline and pump station are able to provide approximately 1,120 acre-feet per year of treated groundwater to SCWD as supplemental water supply. Together, the two new infrastructure elements support conjunctive use and other collaborative water management strategies that enhance the supply resiliency. The Project is split into two components as follows:
• Component 1 – Intertie and pump station: Includes the construction of a C900 polyvinyl chloride (PVC) pipeline and a booster pump station to convey water between the two systems. • Component 2 – Production well: Includes drilling and equipping a 1,100’ deep well into the Butano and Lompico aquifers of the Santa Margarita Groundwater Basin to provide operational flexibility and redundancy for groundwater production.

Budget Category (a): Project Administration
Task 1: Project Management
Manage Grant Agreement including compliance with grant requirements, and preparation and submission of supporting grant documents. Prepare invoices including relevant supporting documentation for submittal to DWR. This task also includes administrative responsibilities associated with the project such as coordinating with partnering agencies and managing consultants/contractors.

Deliverables:
• Invoices and associated backup documentation
Task 2: Reporting
Prepare progress reports detailing work completed during reporting period as outlined in Exhibit F of this Agreement. Submit reports to DWR.

Prepare Project Completion Report and submit to DWR no later than 90 days after project completion for DWR Project Manager’s comment and review. The report shall be prepared and presented in accordance with guidance as outlined in Exhibit F.

Deliverables:
• Quarterly Project Progress Reports
• Project Completion Report/Grant Completion Report
• Documentation (e.g., photo) of “Acknowledgment of Credit & Signage” per Standard Condition D.2 DocuSign Envelope ID: 741D7B02-9E38-495D-BABA-63DA2974673C

35.25 Grant Agreement No. 4600014630

Budget Category (b): Land Purchase/Easement
Task 3: Land Purchase
Facilitate the land acquisition and/or easementsnecessary to construct the intertie and associated appurtenances (Component 1) and the production well (Component 2).

Deliverables:
• Documentation supporting property value
• All relevant documentation regarding property ownership transfer or acquisition of easement Budget Category (c): Planning/Design/Engineering/Environmental Documentation Task 4: Feasibility Studies
Feasibility studies have been completed in the early phases of the project development process:
• Component 1: Geotechnical Investigation and hydraulic modeling for the intertie • Component 2: Site Feasibility Evaluation for the production well The scope of design services will include additional hydraulic modelling for Components 1 and 2, water quality blending analysis and corrosion analysis for Component 1, to confirm the Project will comply with each agencies regulatory water quality or system pressure standards.

Deliverables:
• Relevant Feasibility Studies
Task 5: CEQA Documentation
Complete environmental review pursuant to CEQA for the Project. Prepare all necessary environmental documentation. Prepare letter stating no legal challenges (or addressing legal challenges).

Deliverables:
• All completed CEQA documents as required
• Legal Challenges Letter
Task 6: Permitting
The following permits are anticipated to be acquired for this Project:

Component 1: Santa Cruz County Encroachment Permit, State Water Resource Control Board (SWRCB) Construction General Permit for stormwater discharges and any others as deemed necessary.

Component 2: SWRCB Permit for new water source, SWRCB Construction General Permit for stormwater discharges and any others as deemed necessary.

Deliverables:
• Permits as required
Task 7: Design
Design is being completed for the pipeline and pump station separately from the production well.

The final plans and specifications will be developed through the design process and will contain all information needed to construct both components.

DocuSign Envelope ID: 741D7B02-9E38-495D-BABA-63DA2974673C

35.26 Grant Agreement No. 4600014630

Deliverables:
• Basis of Design Report for Component 1
• Hydraulics Analysis for Component 1 and Component 2
• Desktop Water Quality/Corrosion Evaluation for Component 1 • 100% Design Plans and Specifications for Component 1 and Component 2 • If required, Proof of 60% Design Plans and Specifications submittal to the appropriate region office of Division of Drinking Water, SWRCB for Component 2
Task 8: Project Monitoring Plan
Develop and submit a Project Monitoring Plan per Paragraph 14 for DWR’s review and approval.

Deliverables:
• Project Monitoring Plan
Budget Category (d): Construction/Implementation
Task 9: Contract Services
This task must comply with the Standard Condition D.10 – Competitive Bidding and Procurements. Activities necessary (as applicable) to secure a contractor and award the contract, including: develop bid documents, prepare advertisement and contract documents for construction contract bidding, conduct pre-bid meeting, bid opening and evaluation, selection of the contractor, award of contract, and issuance of notice to proceed.

Deliverables:
• Bid Documents
• Proof of Advertisement
• Award of Contract
• Notice to Proceed
Task 10: Construction Administration
This task includes managing contractor submittal review, answering requests for information, and issuing work directives. A qualified engineering construction observer will be deployed for the duration of the Project.

Construction observer duties include documenting of pre-construction conditions, daily construction diary, preparing change orders, addressing questions of contractors on site, reviewing/ updating project schedule, reviewing contractor log submittals and pay requests, forecasting cash flow, notifying contractor if work is not acceptable. Upon completing the Project, the DWR Certificate of Project Completion and record drawings will be provided to DWR.

Deliverables:
• DWR Certificate of Project Completion
• Record Drawings
Task 11: Construction
Construction activities are outlined below.

DocuSign Envelope ID: 741D7B02-9E38-495D-BABA-63DA2974673C

35.27 Grant Agreement No. 4600014630

Component 1 – INTERTIE AND PUMP STATION
11(a): Mobilization and Demobilization will include:

Mobilization: Completion of approved submittals, procurement of materials, establishment of necessary construction staging, temporary offices and mobilization of the construction equipment.

Demobilization: Remove equipment, extra materials, spoils, regrade to original condition, install permanent erosion control measures, remove temporary fencing remove signage. 11(b): Site preparation will include:
• Clear and Grub unpaved section of access road between Pasatiempo Zone Kite Hill Storage tank and Firehouse Lane. Tree trimming as needed for overhead and horizontal clearance. • Place temporary traffic control signage.
• Install temporary erosion control measures.
• Fence, clear and grade pump station foundation footprint. 11(c): Construction will include:
• To prepare for pipeline: Dig a trench to a depth 3 feet and a variablewidth approximatley 2.5 feet within the paved right-of-way of La Madrona Drive and the unpaved right-of-way to an existing storage tank.
• Install approximately 9,200 linear feet of 12-16 inch diameter C900 polyvinyl chloride (PVC) pipeline
• Backfill pipeline, cap, temporarily patch
• Pressure test, flush, and complete permanent tap connections bewtween Santa Cruz’s and Grantee’s systems.
• Install permanent paving, striping, and curb as needed. • Construct a pump station building
o Excavate foundation, install conudits, water, drainage and other underground utilities o Form pour foundation, construct concrete masonry walls, frame roof and install roof/doors window
o Complete interior electrical mechanice and instrumenation equipment installation o Install 3 (three) pumps, connect, and energize system o Complete programming, testing, commissining and startup of system o Complete exterior lighting, fencing, hardscape, landscaping and security system installations as required.

Component 2 – PRODUCTION WELL
11(a): Mobilization and Demobilization will include:

Mobilization: Completion of approved submittals, procurement of materials, establishment of necessary construction staging, temporary offices and mobilization of the construction equipment.

Demobilization: Remove equipment, extra materials, spoils, regrade to original condition, install permanent erosion control measures, remove temporary fencing remove signage. 11(b): Site preparation will include:
• Grade site for well drilling equipment, trench and install 400’ fo 16” storm drain piping tied into public storm drain system.
• Install temporary erosion control measures.

DocuSign Envelope ID: 741D7B02-9E38-495D-BABA-63DA2974673C

35.28 Grant Agreement No. 4600014630

11(c): Construction will include:
• Drill well and install stainless steel well casing and screen with gravel filter pack and sanitary seal; develop well and set flow rte and pumping depth.
• Install mechanical facilities at the well site to inlcude well slab, well head, column, pump and motor, wire harness, and sample tubes.
• Install a 200 amp, 3 phase electrical service, well meter and appurtenances, pedestal control panel, well controls and SCADA equipment
• Install raw water pipeline and appurtenances from the well to existing system: trench, install, backfill, pressure test, disinfect, tie into existing raw water pipeline, paving • Final site grading and paving; installation of security fencing, gate and lighting system • Perform necessary upgrades to El Pueblo Water Treatment Plant to accommodate the new water source
Deliverables:
• Photographic Documentation of Progress
• Notice of Completion
DocuSign Envelope ID: 741D7B02-9E38-495D-BABA-63DA2974673C

35.29 Grant Agreement No. 4600014630

EXHIBIT B
BUDGET

AGREEMENT BUDGET SUMMARY
PROJECTS Grant
Amount All Other
Cost
Total
Cost
Regional Drought Resiliency
Project
$9,449,783 $$372,492 $9,822,275
GRAND TOTAL $9,449,783 $372,492 $9,822,275
Regional Drought Resiliency Project
Implementing Agency: Scotts Valley Water District
BUDGET CATEGORY Grant
Amount
All Other
Cost*
Total Cost
(a) Project Administration $367,246 $44,114 $411,360
(b) Land Purchase / Easement $285,000 $0 $285,000
(c) Planning / Design /
Engineering / Environmental
Documentation
$770,905 $328,378 $1,099,283
(d) Construction /
Implementation
$8,026,632 $0 $8,026,632
TOTAL COSTS $9,449,783 $372,492 $9,822,275
* All Other Cost provided by Scotts Valley Water District and City of Santa Cruz Water Department.

DocuSign Envelope ID: 741D7B02-9E38-495D-BABA-63DA2974673C

35.30 Grant Agreement No. 4600014630

Component 1: Intertie and Pump Station
BUDGET CATEGORY Grant
Amount
All Other
Cost*
Total Cost
(a) Project Administration $327,246 $0 $327,246
(b) Land Purchase / Easement $45,000 $0 $45,000
(c) Planning / Design /
Engineering / Environmental
Documentation
$506,855 $328,378 $835,233
(d) Construction /
Implementation
$5,741,007 $0 $5,741,007
TOTAL COSTS $6,620,108 $328,378 $6,913,486
*All Other Costs funded by Scotts Valley Water District and City of Santa Cruz Water Department operating revenues.

Compenent 2: Production Well
BUDGET CATEGORY Grant
Amount
All Other
Cost*
Total Cost
(a) Project Administration $40,000 $44,114 $84,114
(b) Land Purchase / Easement $240,000 $0 $240,000
(c) Planning / Design /
Engineering / Environmental
Documentation
$264,050 $0 $264,050
(d) Construction /
Implementation
$2,285,625 $0 $2,285,625
TOTAL COSTS $2,829,675 $44,114 $2,858,789
*All other Costs funded by Scotts Valley Water District operating revenue.

DocuSign Envelope ID: 741D7B02-9E38-495D-BABA-63DA2974673C

35.31 Grant Agreement No. 4600014630

EXHIBIT C

SCHEDULE
PROJECT 1: Regional Drought Resiliency Project
BUDGET CATEGORY Start Date End Date
a Project Administration 3/19/2022 3/1/2026
b Land Purchase / Easement 4/1/2022 4/1/2023
c Planning / Design / Engineering / Environmental Documentation 6/1/2022 11/1/2023* d Construction / Implementation 3/1/2023 1/1/2026
*Two construction projects move in parallel. It is anticipated that the production well project moves into implementation phase while the intertie is still in planning/engineering phase.

DocuSign Envelope ID: 741D7B02-9E38-495D-BABA-63DA2974673C

35.32 Grant Agreement No. 4600014630

EXHIBIT D

STANDARD CONDITIONS
D.1. ACCOUNTING AND DEPOSIT OF FUNDING DISBURSEMENT:

A. Separate Accounting of Funding Disbursements: Grantee shall account for the money disbursed pursuant to this Grant agreement separately from all other Grantee funds. Grantee shall maintain audit and accounting procedures that are in accordance with generally accepted accounting principles and practices, consistently applied. Grantee shall keep complete and accurate records of all receipts and disbursements on expenditures of such funds. Grantee shall require its contractors or subcontractors to maintain books, records, and other documents pertinent to their work in accordance with generally accepted accounting principles and practices. Records are subject to inspection by State at any and all reasonable times.

B. Disposition of Money Disbursed: All money disbursed pursuant to this Grant agreement shall be deposited in a non-interest bearing account, administered, and accounted for pursuant to the provisions of applicable law.

C. Remittance of Unexpended Funds: Grantee shall remit to State any unexpended funds that were disbursed to Grantee under this Grant agreement and were not used to pay Eligible Project Costs within a period of sixty (60) calendar days from the final disbursement from State to Grantee of funds or, within thirty (30) calendar days of the expiration of the Grant agreement, whichever comes first.

D.2. ACKNOWLEDGEMENT OF CREDIT AND SIGNAGE: Grantee shall include appropriate acknowledgement of credit to the State for its support when promoting the Project or using any data and/or information developed under this Grant agreement. Signage shall be posted in a prominent location at Project site(s) (if applicable) or at the Grantee’s headquarters and shall include the Department of Water Resources color logo and the following disclosure statement: “Funding for this project has been provided in full or in part from the Budget Act of 2021 and through an agreement with the State Department of Water Resources.” The Grantee shall also include in each of its contracts for work under this Agreement a provision that incorporates the requirements stated within this Paragraph.

D.3. AMENDMENT: This Grant agreement may be amended at any time by mutual agreement of the Parties, except insofar as any proposed amendments are in any way contrary to applicable law.

Requests by the Grantee for amendments must be in writing stating the amendment request and the reason for the request. Requests solely for a time extension must be submitted at least 90 days prior to the work completion date set forth in Paragraph 2. Any other request for an amendment must be submitted at least 180 days prior to the work completion date set forth in Paragraph 2. State shall have no obligation to agree to an amendment.

D.4. AMERICANS WITH DISABILITIES ACT: By signing this Grant agreement, Grantee assures State that it complies with the Americans with Disabilities Act (ADA) of 1990, (42 U.S.C. § 12101 et seq.), which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA.

D.5. AUDITS: State reserves the right to conduct an audit at any time between the execution of this Grant agreement and the completion of the Project, with the costs of such audit borne by State. After completion of the Project, State may require Grantee to conduct a final audit to State’s specifications, at Grantee’s expense, such audit to be conducted by and a report prepared by an independent Certified Public Accountant. Failure or refusal by Grantee to comply with this provision shall be considered a breach of this Grant agreement, and State may elect to pursue any remedies provided in Paragraph 10 or take any other action it deems necessary to protect its interests. The Grantee agrees it shall return any audit disallowances to the State.

DocuSign Envelope ID: 741D7B02-9E38-495D-BABA-63DA2974673C

35.33 Grant Agreement No. 4600014630

Pursuant to Government Code section 8546.7, the Grantee shall be subject to the examination and audit by the State for a period of three (3) years after final payment under this Grant agreement with respect of all matters connected with this Grant agreement, including but not limited to, the cost of administering this Grant agreement. All records of Grantee or its contractor or subcontractors shall be preserved for this purpose for at least three (3) years after receipt of the final disbursement under this Agreement.

D.6. BUDGET CONTINGENCY: If the Budget Act of the current year covered under this Grant agreement does not appropriate sufficient funds for this program, this Grant agreement shall be of no force and effect. This provision shall be construed as a condition precedent to the obligation of State to make any payments under this Grant agreement. In this event, State shall have no liability to pay any funds whatsoever to Grantee or to furnish any other considerations under this Grant agreement and Grantee shall not be obligated to perform any provisions of this Grant agreement. Nothing in this Grant agreement shall be construed to provide Grantee with a right of priority for payment over any other Grantee. If funding for any fiscal year after the current year covered by this Grant agreement is reduced or deleted by the Budget Act, by Executive Order, or by order of the Department of Finance, the State shall have the option to either cancel this Grant agreement with no liability occurring to State, or offer a Grant agreement amendment to Grantee to reflect the reduced amount.

D.7. CEQA: Activities funded under this Grant agreement, regardless of funding source, must be in compliance with the California Environmental Quality Act (CEQA). (Pub. Resources Code, § 21000 et seq.) Any work that is subject to CEQA and funded under this Agreement shall not proceed until documents that satisfy the CEQA process are received by the State’s Project Manager and the State has completed its CEQA compliance. Work funded under this Agreement that is subject to a CEQA document shall not proceed until and unless approved by the Department of Water Resources. Such approval is fully discretionary and shall constitute a condition precedent to any work for which it is required. If CEQA compliance by the Grantee is not complete at the time the State signs this Agreement, once State has considered the environmental documents, it may decide to require changes, alterations, or other mitigation to the Project; or to not fund the Project. Should the State decide to not fund the Project, this Agreement shall be terminated in accordance with Paragraph 10, “Default Provisions.”
D.8. CHILD SUPPORT COMPLIANCE ACT: The Grantee acknowledges in accordance with Public Contract Code section 7110, that:

A. The Grantee recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Family Code section 5200 et seq.; and B. The Grantee, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department.

D.9. CLAIMS DISPUTE: Any claim that the Grantee may have regarding performance of this Agreement including, but not limited to, claims for additional compensation or extension of time, shall be submitted to the DWR Project Representative, within thirty (30) days of the Grantee’s knowledge of the claim.

State and Grantee shall then attempt to negotiate a resolution of such claim and process an amendment to this Agreement to implement the terms of any such resolution.

D.10. COMPETITIVE BIDDING AND PROCUREMENTS: Grantee’s contracts with other entities for the acquisition of goods and services and construction of public works with funds provided by State under this Grant agreement must be in writing and shall comply with all applicable laws and regulations regarding the securing of competitive bids and undertaking competitive negotiations. If the Grantee does not have a written policy to award contracts through a competitive bidding or sole source process, the Department of General Services’ State Contracting Manual rules must be followed and DocuSign Envelope ID: 741D7B02-9E38-495D-BABA-63DA2974673C

35.34 Grant Agreement No. 4600014630

are available at: https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-ServicesResources-List-Folder/State-Contracting.

D.11. COMPUTER SOFTWARE: Grantee certifies that it has appropriate systems and controls in place to ensure that state funds will not be used in the performance of this Grant agreement for the acquisition, operation, or maintenance of computer software in violation of copyright laws.

D.12. CONFLICT OF INTEREST: All participants are subject to State and Federal conflict of interest laws.

Failure to comply with these laws, including business and financial disclosure provisions, will result in the application being rejected and any subsequent contract being declared void. Other legal action may also be taken. Applicable statutes include, but are not limited to, Government Code section 1090 and Public Contract Code sections 10410 and 10411, for State conflict of interest requirements.

A. Current State Employees: No State officer or employee shall engage in any employment, activity, or enterprise from which the officer or employee receives compensation or has a financial interest and which is sponsored or funded by any State agency, unless the employment, activity, or enterprise is required as a condition of regular State employment. No State officer or employee shall contract on his or her own behalf as an independent contractor with any State agency to provide goods or services.

B. Former State Employees: For the two-year period from the date he or she left State employment, no former State officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decision-making process relevant to the contract while employed in any capacity by any State agency. For the twelvemonth period from the date he or she left State employment, no former State officer or employee may enter into a contract with any State agency if he or she was employed by that State agency in a policy-making position in the same general subject area as the proposed contract within the twelve-month period prior to his or her leaving State service.

C. Employees of the Grantee: Employees of the Grantee shall comply with all applicable provisions of law pertaining to conflicts of interest, including but not limited to any applicable conflict of interest provisions of the California Political Reform Act. (Gov. Code, § 87100 et seq.) D. Employees and Consultants to the Grantee: Individuals working on behalf of a Grantee may be required by the Department to file a Statement of Economic Interests (Fair Political Practices Commission Form 700) if it is determined that an individual is a consultant for Political Reform Act purposes.

D.13. DELIVERY OF INFORMATION, REPORTS, AND DATA: Grantee agrees to expeditiously provide throughout the term of this Grant agreement, such reports, data, information, and certifications as may be reasonably required by State.

D.14. DISPOSITION OF EQUIPMENT: Grantee shall provide to State, not less than thirty (30) calendar days prior to submission of the final invoice, an itemized inventory of equipment purchased with funds provided by State. The inventory shall include all items with a current estimated fair market value of more than $5,000.00 per item. Within sixty (60) calendar days of receipt of such inventory State shall provide Grantee with a list of the items on the inventory that State will take title to. All other items shall become the property of Grantee. State shall arrange for delivery from Grantee of items that it takes title to. Cost of transportation, if any, shall be borne by State.

D.15. DRUG-FREE WORKPLACE CERTIFICATION: Certification of Compliance: By signing this Grant agreement, Grantee, its contractors or subcontractors hereby certify, under penalty of perjury under the laws of State of California, compliance with the requirements of the Drug-Free Workplace Act of 1990 (Gov. Code, § 8350 et seq.) and have or will provide a drug-free workplace by taking the following actions:

A. Publish a statement notifying employees, contractors, and subcontractors that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited DocuSign Envelope ID: 741D7B02-9E38-495D-BABA-63DA2974673C

35.35 Grant Agreement No. 4600014630

and specifying actions to be taken against employees, contractors, or subcontractors for violations, as required by Government Code section 8355.

B. Establish a Drug-Free Awareness Program, as required by Government Code section 8355 to inform employees, contractors, or subcontractors about all of the following:
i. The dangers of drug abuse in the workplace,
ii. Grantee’s policy of maintaining a drug-free workplace, iii. Any available counseling, rehabilitation, and employee assistance programs, and iv. Penalties that may be imposed upon employees, contractors, and subcontractors for drug abuse violations.

C. Provide, as required by Government Code section 8355, that every employee, contractor, and/or subcontractor who works under this Grant agreement:
i. Will receive a copy of Grantee’s drug-free policy statement, and ii. Will agree to abide by terms of Grantee’s condition of employment, contract or subcontract.

D.16. EASEMENTS: Where the Grantee acquires property in fee title or funds improvements to real property already owned in fee by the Grantee using State funds provided through this Grant agreement, an appropriate easement or other title restriction providing for floodplain preservation and agricultural and/or wildlife habitat conservation for the subject property in perpetuity, approved by the State, shall be conveyed to a regulatory or trustee agency or conservation group acceptable to the State. The easement or other title restriction must be in first position ahead of any recorded mortgage or lien on the property unless this requirement is waived by the State.

Where the Grantee acquires an easement under this Agreement, the Grantee agrees to monitor and enforce the terms of the easement, unless the easement is subsequently transferred to another land management or conservation organization or entity with State permission, at which time monitoring and enforcement responsibilities will transfer to the new easement owner.

Failure to provide an easement acceptable to the State may result in termination of this Agreement.

D.17. FINAL INSPECTIONS AND CERTIFICATION OF REGISTERED PROFESSIONAL: Upon completion of the Project, Grantee shall provide for a final inspection and certification by a California Registered Professional (i.e., Professional Civil Engineer, Engineering Geologist), that the Project has been completed in accordance with submitted final plans and specifications and any modifications thereto and in accordance with this Grant Agreement.

D.18. GOVERNING LAW: This Grant agreement is governed by and shall be interpreted in accordance with the laws of the State of California.

D.19. GRANTEE'S RESPONSIBILITIES: Grantee and its representatives shall:

A. Faithfully and expeditiously perform or cause to be performed all project work as described in Exhibit A and in accordance with Exhibits B and C.

B. Accept and agree to comply with all terms, provisions, conditions, and written commitments of this Grant agreement, including all incorporated documents, and to fulfill all assurances, declarations, representations, and statements made by Grantee in the application, documents, amendments, and communications filed in support of its request for funding.

C. Comply with all applicable California, federal, and local laws and regulations.

D. Implement the Project in accordance with applicable provisions of the law.

E. Fulfill its obligations under the Grant agreement and be responsible for the performance of the Project.

F. Obtain any and all permits, licenses, and approvals required for performing any work under this Grant agreement, including those necessary to perform design, construction, or operation and maintenance of the Project. Grantee shall provide copies of permits and approvals to State.

G. Be solely responsible for design, construction, and operation and maintenance of projects within the work plan. Review or approval of plans, specifications, bid documents, or other construction documents by State is solely for the purpose of proper administration of funds by State and shall not be deemed to relieve or restrict responsibilities of Grantee under this Agreement.

DocuSign Envelope ID: 741D7B02-9E38-495D-BABA-63DA2974673C

35.36 Grant Agreement No. 4600014630

H. Be solely responsible for all work and for persons or entities engaged in work performed pursuant to this Agreement, including, but not limited to, contractors, subcontractors, suppliers, and providers of services. The Grantee shall be responsible for any and all disputes arising out of its contracts for work on the Project, including but not limited to payment disputes with contractors and subcontractors. The State will not mediate disputes between the Grantee and any other entity concerning responsibility for performance of work.

D.20. INDEMNIFICATION: Grantee shall indemnify and hold and save the State, its officers, agents, and employees, free and harmless from any and all liabilities for any claims and damages (including inverse condemnation) that may arise out of the Project and this Agreement, including, but not limited to any claims or damages arising from planning, design, construction, maintenance and/or operation of levee rehabilitation measures for this Project and any breach of this Agreement. Grantee shall require its contractors or subcontractors to name the State, its officers, agents and employees as additional insureds on their liability insurance for activities undertaken pursuant to this Agreement.

D.21. INDEPENDENT CAPACITY: Grantee, and the agents and employees of Grantees, in the performance of the Grant agreement, shall act in an independent capacity and not as officers, employees, or agents of the State.

D.22. INSPECTION OF BOOKS, RECORDS, AND REPORTS: During regular office hours, each of the parties hereto and their duly authorized representatives shall have the right to inspect and to make copies of any books, records, or reports of either party pertaining to this Grant agreement or matters related hereto. Each of the parties hereto shall maintain and shall make available at all times for such inspection accurate records of all its costs, disbursements, and receipts with respect to its activities under this Grant agreement. Failure or refusal by Grantee to comply with this provision shall be considered a breach of this Grant agreement, and State may withhold disbursements to Grantee or take any other action it deems necessary to protect its interests.

D.23. INSPECTIONS OF PROJECT BY STATE: State shall have the right to inspect the work being performed at any and all reasonable times during the term of the Grant agreement. This right shall extend to any subcontracts, and Grantee shall include provisions ensuring such access in all its contracts or subcontracts entered into pursuant to its Grant agreement with State.

D.24. LABOR CODE COMPLIANCE: The Grantee agrees to be bound by all the provisions of the Labor Code regarding prevailing wages and shall monitor all contracts subject to reimbursement from this Agreement to assure that the prevailing wage provisions of the Labor Code are being met. Current Department of Industrial Relations (DIR) requirements may be found at: http://www.dir.ca.gov/ lcp.asp.

For more information, please refer to DIR’s Public Works Manual at: https://www.dir.ca.gov/ dlse/PWManualCombined.pdf. The Grantee affirms that it is aware of the provisions of section 3700 of the Labor Code, which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance, and the Grantee affirms that it will comply with such provisions before commencing the performance of the work under this Agreement and will make its contractors and subcontractors aware of this provision.

D.25. MODIFICATION OF OVERALL WORK PLAN: At the request of the Grantee, the State may at its sole discretion approve non-material changes to the portions of Exhibits A, B, and C which concern the budget and schedule without formally amending this Grant agreement. Non-material changes with respect to the budget are changes that only result in reallocation of the budget and will not result in an increase in the amount of the State Grant agreement. Non-material changes with respect to the Project schedule are changes that will not extend the term of this Grant agreement. Requests for nonmaterial changes to the budget and schedule must be submitted by the Grantee to the State in writing and are not effective unless and until specifically approved by the State’s Program Manager in writing.

D.26. NONDISCRIMINATION: During the performance of this Grant agreement, Grantee and its contractors or subcontractors shall not unlawfully discriminate, harass, or allow harassment against any employee DocuSign Envelope ID: 741D7B02-9E38-495D-BABA-63DA2974673C

35.37 Grant Agreement No. 4600014630

or applicant for employment because of sex (gender), sexual orientation, gender identity, race, color, ancestry, religion, creed, national origin (including language use restriction), pregnancy, physical disability (including HIV and AIDS), mental disability, medical condition (cancer/genetic characteristics), age (over 40), marital/domestic partner status, and denial of medical and family care leave or pregnancy disability leave. Grantee and its contractors or subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Grantee and its contractors or subcontractors shall comply with the provisions of the California Fair Employment and Housing Act (Gov. Code, § 12990.) and the applicable regulations promulgated there under (Cal. Code Regs., tit. 2, § 11000 et seq.). The applicable regulations of the Fair Employment and Housing are incorporated into this Agreement by reference. Grantee and its contractors or subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.

Grantee shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the Grant agreement.

D.27. OPINIONS AND DETERMINATIONS: Where the terms of this Grant agreement provide for action to be based upon, judgment, approval, review, or determination of either party hereto, such terms are not intended to be and shall never be construed as permitting such opinion, judgment, approval, review, or determination to be arbitrary, capricious, or unreasonable.

D.28. PERFORMANCE BOND: Where contractors are used, the Grantee shall not authorize construction to begin until each contractor has furnished a performance bond in favor of the Grantee in the following amounts: faithful performance (100%) of contract value, and labor and materials (100%) of contract value. This requirement shall not apply to any contract for less than $25,000.00. Any bond issued pursuant to this paragraph must be issued by a California-admitted surety. (Pub. Contract Code, § 7103; Code Civ. Proc., § 995.311.)
D.29. PRIORITY HIRING CONSIDERATIONS: If this Grant agreement includes services in excess of $200,000, the Grantee shall give priority consideration in filling vacancies in positions funded by the Grant agreement to qualified recipients of aid under Welfare and Institutions Code section 11200 in accordance with Public Contract Code section 10353.

D.30. PROHIBITION AGAINST DISPOSAL OF PROJECT WITHOUT STATE PERMISSION: The Grantee shall not sell, abandon, lease, transfer, exchange, mortgage, hypothecate, or encumber in any manner whatsoever all or any portion of any real or other property necessarily connected or used in conjunction with the Project, or with Grantee’s service of water, without prior permission of State.

Grantee shall not take any action, including but not limited to actions relating to user fees, charges, and assessments that could adversely affect the ability of Grantee meet its obligations under this Grant agreement, without prior written permission of State. State may require that the proceeds from the disposition of any real or personal property be remitted to State.

D.31. PROJECT ACCESS: The Grantee shall ensure that the State, the Governor of the State, or any authorized representative of the foregoing, will have safe and suitable access to the Project site at all reasonable times during Project construction and thereafter for the term of this Agreement.

D.32. REMAINING BALANCE: In the event the Grantee does not submit invoices requesting all of the funds encumbered under this Grant Agreement, any remaining funds revert to the State. The State will notify the Grantee stating that the Project file is closed and any remaining balance will be disencumbered and unavailable for further use under this Grant Agreement.

D.33. REMEDIES NOT EXCLUSIVE: The use by either party of any remedy specified herein for the enforcement of this Grant agreement is not exclusive and shall not deprive the party using such remedy of, or limit the application of, any other remedy provided by law.

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D.34. RETENTION: The State shall withhold ten percent (10%) of the funds, for each project, until the project is complete, and a Final Project Report is approved and accepted by DWR. If a project has multiple Components (within a project), at the State's discretion and upon a written request by the Grantee, any retained amount attributable to a single component may be released when that component is complete and the Final Component Completion Report is approved. Upon approval of the Final Project Report and/or Final Component Completion Report, any retained amounts due to the Grantee will be promptly disbursed to the Grantee, without interest.

D.35. RIGHTS IN DATA: Grantee agrees that all data, plans, drawings, specifications, reports, computer programs, operating manuals, notes and other written or graphic work produced in the performance of this Grant agreement shall be made available to the State and shall be in the public domain to the extent to which release of such materials is required under the California Public Records Act. (Gov.

Code, § 6250 et seq.) Grantee may disclose, disseminate and use in whole or in part, any final form data and information received, collected and developed under this Grant agreement, subject to appropriate acknowledgement of credit to State for financial support. Grantee shall not utilize the materials for any profit-making venture or sell or grant rights to a third party who intends to do so. The State shall have the right to use any data described in this paragraph for any public purpose.

D.36. SEVERABILITY: Should any portion of this Grant agreement be determined to be void or unenforceable, such shall be severed from the whole and the Grant agreement shall continue as modified.

D.37. SUSPENSION OF PAYMENTS: This Grant agreement may be subject to suspension of payments or termination, or both if the State determines that:

A. Grantee, its contractors, or subcontractors have made a false certification, or B. Grantee, its contractors, or subcontractors violates the certification by failing to carry out the requirements noted in this Grant agreement.

D.38. SUCCESSORS AND ASSIGNS: This Grant agreement and all of its provisions shall apply to and bind the successors and assigns of the parties. No assignment or transfer of this Grant agreement or any part thereof, rights hereunder, or interest herein by the Grantee shall be valid unless and until it is approved by State and made subject to such reasonable terms and conditions as State may impose.

D.39. TERMINATION BY GRANTEE: Subject to State approval which may be reasonably withheld, Grantee may terminate this Agreement and be relieved of contractual obligations. In doing so, Grantee must provide a reason(s) for termination. Grantee must submit all progress reports summarizing accomplishments up until termination date.

D.40. TERMINATION FOR CAUSE: Subject to the right to cure under Paragraph 10, “Default Provisions,” the State may terminate this Grant agreement and be relieved of any payments should Grantee fail to perform the requirements of this Grant agreement at the time and in the manner herein, provided including but not limited to reasons of default under Paragraph 10, “Default Provisions.” D.41. TERMINATION WITHOUT CAUSE: The State may terminate this Agreement without cause on 30 days’ advance written notice. The Grantee shall be reimbursed for all reasonable expenses incurred up to the date of termination.

D.42. THIRD PARTY BENEFICIARIES: The parties to this Agreement do not intend to create rights in, or grant remedies to, any third party as a beneficiary of this Agreement, or any duty, covenant, obligation or understanding established herein.

D.43. TIMELINESS: Time is of the essence in this Grant Agreement.

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D.44. TRAVEL : Only ground transportation and lodging are eligible for grant reimbursement. Per diem costs will not be eligible for grant reimbursement. Any reimbursement for necessary travel shall be at rates not to exceed those set by the California Department of Human Resources. These rates may be found at: http://www.calhr.ca.gov/employees/Pages/travel-reimbursements.aspx. Reimbursement will be at the State travel amounts that are current as of the date costs are incurred. No travel outside of the project sponsor’s service area shall be reimbursed unless prior written authorization is obtained from the State.

D.45. UNION ORGANIZING: Grantee, by signing this Grant agreement, hereby acknowledges the applicability of Government Code sections 16645 through 16649 to this Grant Agreement.

Furthermore, Grantee, by signing this Grant Agreement, hereby certifies that:

A. No State funds disbursed by this Grant agreement will be used to assist, promote, or deter union organizing.

B. Grantee shall account for State funds disbursed for a specific expenditure by this Grant agreement to show those funds were allocated to that expenditure.

C. Grantee shall, where State funds are not designated as described in (b) above, allocate, on a pro rata basis, all disbursements that support the program.

D. If Grantee makes expenditures to assist, promote, or deter union organizing, Grantee will maintain records sufficient to show that no State funds were used for those expenditures and that Grantee shall provide those records to the Attorney General upon request.

D.46. VENUE: The State and the Grantee hereby agree that any action arising out of this Agreement shall be filed and maintained in the Superior Court in and for the County of Sacramento, California, or in the United States District Court in and for the Eastern District of California. The Grantee hereby waives any existing sovereign immunity for the purposes of this Agreement.

D.47. WAIVER OF RIGHTS: None of the provisions of this Grant Agreement shall be deemed waived unless expressly waived in writing. It is the intention of the parties here to that from time to time either party may waive any of its rights under this Grant agreement unless contrary to law. Any waiver by either party of rights arising in connection with the Grant agreement shall not be deemed to be a waiver with respect to any other rights or matters, and such provisions shall continue in full force and effect.

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EXHIBIT E

AUTHORIZING RESOLUTION
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EXHIBIT F

REPORT FORMATS AND REQUIREMENTS
The following reporting formats should be utilized. Please obtain State approval prior to submitting a report in an alternative format.

PROGRESS REPORTS
Progress reports shall generally use the following format. This format may be modified as necessary to effectively communicate information. For each project, discuss the following at the task level, as organized in Exhibit A:
• Percent complete (by work)
• Discussion of work accomplished during the reporting period. • Milestones or deliverables completed/submitted during the reporting period. • Meetings held or attended.
• Scheduling concerns and issues encountered that may delay completion of the task.

For each project, discuss the following at the project level, as organized in Exhibit A:
• Work anticipated for the next reporting period.
• Photo documentation, as appropriate.
• Budget projections for grant share for the next two quarters • Any schedule or budget modifications approved by DWR during the reporting period.

PROJECT COMPLETION REPORT
The Project Completion Report (or a Component Completion Report, if a Project has multiple Components) shall generally use the following format provided below for each project after completion.

Executive Summary
The Executive Summary should include a brief summary of project information and include the following items:
• Brief description of work proposed to be done in the original Grant application. • List any official amendments to this Grant Agreement, with a short description of the amendment.

Reports and/or Products
The following items should be provided, unless already submitted as a deliverable:
• A copy of any final technical report or study, produced for or utilized in this Project as described in the Exhibit A
• Electronic copies of any data collected, not previously submitted • Discussion of problems that occurred during the work and how those problems were resolved • Final project schedule showing actual progress versus planned progress as shown in Exhibit C Additional information that may be applicable for implementation projects includes the following:
• Record drawings
• Final geodetic survey information
• Project photos
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Cost & Disposition of Funds
A list showing:
• Summary of Project costs including the following items:
o Accounting of the cost of project expenditure;
o Include all internal and external costs not previously disclosed (i.e., additional cost share); and o A discussion of factors that positively or negatively affected the project cost and any deviation from the original Project cost estimate.

Additional Information
• Benefits derived from the Project, with quantification of such benefits provided. • If applicable, Certification from a California Registered Professional (Civil Engineer or Geologist, as appropriate), consistent with Exhibit D, that the project was conducted in accordance with the approved Work Plan in Exhibit A and any approved amendments thereto. • Submittal schedule for the Post-Performance Report.

GRANT COMPLETION REPORT
The Grant Completion Report shall generally use the following format. This format may be modified as necessary to effectively communicate information on the various projects funded by this Grant Agreement, and includes the following:
• Executive Summary: consisting of a maximum of ten (10) pages summarizing information for the grant as well as the individual projects.
• Brief discussion whether the level, type, or magnitude of benefits of each project are comparable to the original project proposal; any remaining work to be completed and mechanism for their implementation; and a summary of final funds disbursement for each project.

Additional Information: Summary of the submittal schedule for the Post-Performance Reports applicable for the projects in this Grant Agreement.

POST-PERFORMANCE REPORT
The Post-Performance Report (PPR) should be concise and focus on how each project is performing compared to its expected performance; whether the project is being operated and maintained and providing intended benefits as proposed. A PPR template may be provided by the assigned DWR Grant Manager upon request. The PPR should follow the general format of the template and provide requested information as applicable. The following information, at a minimum, shall be provided:

Reports and/or products
• Header including the following:
o Grantee Name
o Implementing Agency (if different from Grantee)
o Grant Agreement Number
o Project Name
o Funding grant source
o Report number
• Post-Performance Report schedule
• Time period of the annual report (e.g., January 2018 through December 2018) • Project Description Summary
• Discussion of the project benefits
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• An assessment of any differences between the expected versus actual project benefits as stated in the original application. Where applicable, the reporting should include quantitative metrics (e.g., new acrefeet of water produced that year, etc.). • Summary of any additional costs and/or benefits deriving from the project since its completion, if applicable.
• Any additional information relevant to or generated by the continued operation of the project.

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EXHIBIT G

REQUIREMENTS FOR DATA SUBMITTAL
Surface and Groundwater Quality Data:

Groundwater quality and ambient surface water quality monitoring data that include chemical, physical, or biological data shall be submitted to the State as described below, with a narrative description of data submittal activities included in project reports.

Surface water quality monitoring data shall be prepared for submission to the California Environmental Data Exchange Network (CEDEN). The CEDEN data templates are available on the CEDEN website.

Inclusion of additional data elements described on the data templates is desirable. Data ready for submission should be uploaded to your CEDEN Regional Data Center via the CEDEN website. CEDEN website: http://www.ceden.org.

If a project’s Work Plan contains a groundwater ambient monitoring element, groundwater quality monitoring data shall be submitted to the State for inclusion in the State Water Resources Control Board’s Groundwater Ambient Monitoring and Assessment (GAMA) Program Information on the GAMA Program can be obtained at: https://www.waterboards.ca.gov/water_issues/programs/gama/. If further information is required, the Grantee can contact the State Water Resources Control Board (SWRCB) GAMA Program.

A listing of SWRCB staff involved in the GAMA program can be found at:
https://www.waterboards.ca.gov/water_issues/programs/gama/contact.shtml.

Groundwater Level Data
For each project that collects groundwater level data, the Grantee will need to submit this data to DWR’s Water Data Library (WDL), with a narrative description of data submittal activities included in project reports, as described in Exhibit F, “Report Formats and Requirements.” Information regarding the WDL and in what format to submit data in can be found at: http://www.water.ca.gov/waterdatalibrary/.

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EXHIBIT H

STATE AUDIT DOCUMENT REQUIREMENTS FOR THE GRANTEE
The following provides a list of documents typically required by State Auditors and general guidelines for the Grantee. List of documents pertains to both State funding and the Grantee’s Local Cost Share and details the documents/records that State Auditors would need to review in the event of this Grant Agreement is audited.

The Grantee should ensure that such records are maintained for each funded project.

State Audit Document Requirements
Internal Controls

1. Organization chart (e.g., Agency’s overall organization chart and organization chart for the State funded Program/Project).

2. Written internal procedures and flowcharts for the following:
a) Receipts and deposits
b) Disbursements
c) State reimbursement requests
d) Expenditure tracking of State funds
e) Guidelines, policy, and procedures on State funded Program/Project

3. Audit reports of the Agency internal control structure and/or financial statements within the last two years.

4. Prior audit reports on the State funded Program/Project.

State Funding:

1. Original Grant Agreement, any amendment(s) and budget modification documents.

2. A listing of all bond-funded grants, loans, or subventions received from the State.

3. A listing of all other funding sources for each Program/Project.

Contracts:

1. All subcontractor and consultant contracts and related or partners’ documents, if applicable.

2. Contracts between the Agency and member agencies as related to the State funded Program/Project.

Invoices:

1. Invoices from vendors and subcontractors for expenditures submitted to the State for payments under the Grant Agreement.

2. Documentation linking subcontractor invoices to State reimbursement, requests and related Grant Agreement budget line items.

3. Reimbursement requests submitted to the State for the Grant Agreement.

Cash Documents:

1. Receipts (copies of warrants) showing payments received from the State.

2. Deposit slips (or bank statements) showing deposit of the payments received from the State.

3. Cancelled checks or disbursement documents showing payments made to vendors, subcontractors, consultants, and/or agents under the grants or loans.

4. Bank statements showing the deposit of the receipts.

Accounting Records:

1. Ledgers showing entries for funding receipts and cash disbursements.

2. Ledgers showing receipts and cash disbursement entries of other funding sources.

3. Bridging documents that tie the general ledger to requests for Grant Agreement reimbursement.

Administration Costs:

1. Supporting documents showing the calculation of administration costs.

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Personnel:

1. List of all contractors and Agency staff that worked on the State funded Program/Project.

2. Payroll records including timesheets for contractor staff and the Agency personnel who provided services charged to the program
Project Files:

1. All supporting documentation maintained in the project files.

2. All Grant Agreement related correspondence.

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EXHIBIT I

LOCAL PROJECT SPONSORS AND PROJECT LOCATIONS
The Grantee has assigned, for each project component, a Local Project Sponsor (LPS). LPSs may act on behalf of the Grantee for the purposes of individual project management, oversight, compliance, and operations and maintenance. LPSs are identified for each sponsored project component below:

Local Project Sponsor Agency Designation
Sponsored Project: Regional Drought Resiliency Project
Project Component: Production Well
Sponsor Agency: Scotts Valley Water District
Agency Address: 2 Civic Center Drive, Scotts Valley
Project Component: Intertie and Pump Station
Sponsor Agency: City of Santa Cruz
Agency Address: 212 Locust Street, Santa Cruz
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EXHIBIT J

APPRAISAL SPECIFICATIONS
For property acquisitions funded by this Grant Agreement, the Grantee shall submit an appraisal for review and approval by the Department of General Services or DWR’s Real Estate Branch prior to reimbursement or depositing State funds into an escrow account. This information should be submitted at least 90 days prior to a reimbursement request to account for review time. All appraisal reports, regardless of report format, shall include all applicable Appraisal Specifications below. Appraisals for a total compensation of $150,000 or more shall be reported as a Self-Contained Appraisal Report. Appraisals for a total compensation of less than $150,000 may be reported as a Summary Appraisal Report, which includes all information necessary to arrive at the appraiser’s conclusion. Appraisal Specifications 14, 16, 21, 23-25, and 28 shall be a narrative analysis regardless of the reporting format.

1. Title page with sufficient identification of appraisal assignment.

2. Letter of transmittal summarizing important assumptions and conclusions, value estimate, date of value and date of report.

3. Table of contents.

4. Assumptions and Limiting Conditions, Extraordinary Assumptions, and Hypothetical Conditions as needed.

5. Description of the scope of work, including the extent of data collection and limitations, if any, in obtaining relevant data.

6. Definition of Fair Market Value, as defined by California Code of Civil Procedure, § 1263.320.

7. Photographs of subject property and comparable data, including significant physical features and the interior of structural improvements, if applicable.

8. Copies of Tax Assessor’s plat map with the subject marked along with all contiguous assessor’s parcels that depict the ownership.

9. A legal description of the subject property, if available.

10. For large, remote or inaccessible parcels, provide aerial photographs or topographical maps depicting the subject boundaries.

11. Three (3) year subject property history, including sales, listings, leases, options, zoning, applications for permits, or other documents or facts that might indicate or affect use or value.

12. Discussion of any current Agreement of Sale, option, or listing of subject property. This issue required increased diligence since state agencies often utilize non-profit organizations to quickly acquire sensitive habitat parcels using Option Agreements. However, due to confidentiality clauses, the terms of the Option are often not disclosed to the State. If the appraiser discovers evidence of an Option or the possible existence of an Option, and the terms cannot be disclosed due to a confidentiality clause, then the appraiser is to cease work and contact the client.

13. Regional, area, and neighborhood analyses. This information may be presented in a summary format.

14. Market conditions and trends including identification of the relevant market area, a discussion of supply and demand within the relevant market area, and a discussion of the relevant market factors impacting demand for site acquisition and leasing within the relevant market area. This information may be presented in a summary format.

15. Discussion of subject land/site characteristics (size, topography, current use, elevations, zoning and land use issues, development entitlements, General Plan designation, utilities, offsite improvements, access, land features such as levees and creeks, offsite improvements, easements and DocuSign Envelope ID: 741D7B02-9E38-495D-BABA-63DA2974673C

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encumbrances, covenants, conditions and restrictions, flood and earthquake information, toxic hazards, water rights, mineral rights, toxic hazards, taxes and assessments, etc.).

16. Description of subject improvements including all structures, square footage, physical age, type of construction, quality of construction, condition of improvements and/or identification of any permanent plantings. Discussion of construction cost methodology, costs included and excluded, accrued depreciation from all causes, remaining economic life, items of deferred maintenance and cost to cure, and incurable items. Construction cost data shall include cost data source, date of estimate or date of publication of cost manual, section and page reference of cost manual, copies of cost estimate if provided from another source, replacement or reproduction cost method used, and supporting calculations including worksheets or spreadsheets.

17. Subject property leasing and operating cost history, including all items of income and expense.

18. Analysis and conclusion of the larger parcel for partial taking appraisals. For partial taking appraisals, Appraisal Specifications generally apply to the larger parcel rather than an ownership where the larger parcel is not the entire ownership.

19. Include a copy of a recent preliminary title report (within the past year) as an appraisal exhibit.

Discuss the title exceptions and analyze the effect of title exceptions on fair market value.

20. For appraisals of partial takings or easements, a detailed description of the taking or easement area including surface features and topography, easements, encumbrances or improvements including levees within the subject partial take or easement, and whether the take area is characteristic of the larger parcel. Any characteristics of the taking area, including existing pre-project levees that render the take area different from the larger parcel shall be addressed in the valuation.

21. Opinion of highest and best use for the subject property, based on an in-depth analysis supporting the concluded use which includes the detail required by the complexity of the analysis. Such support typically requires a discussion of the four criteria of tests utilized to determine the highest and best use of a property. If alternative feasible uses exist, explain and support market, development, cash flow, and risk factors leading to an ultimate highest and best use decision.

22. All approaches to market value applicable to the property type and in the subject market. Explain and support the exclusion of any usual approaches to value.

23. Map(s) showing all comparable properties in relation to the subject property.

24. Photographs and plat maps of comparable properties.

25. In-depth discussion of comparable properties, similarities and differences compared to the subject property, adjustments to the comparable data, and discussion of the reliability and credibility of the data as it relates to the indicated subject property value. Improved comparable sales which are used to compare to vacant land subject properties shall include an allocation between land and improvements, using methodology similar to methodology used in item 16 above to estimate improvement value when possible, with an explanation of the methodology used.

26. Comparable data sheets.
a. For sales, include information on grantor/Grantee, sale/recordation dates, listed or asking price as of the date of sale, highest and best use, financing, conditions of sale, buyer motivation, sufficient location information (street address, post mile, and/or distance from local landmarks such as bridges, road intersections, structures, etc.), land/site characteristics, improvements, source of any allocation of sale price between land and improvements, and confirming source. b. For listings, also include marketing time from list date to effective date of the appraisal, original list price, changes in list price, broker feedback, if available.

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c. For leases, include significant information such as lessor/lessee, lease date and term, type of lease, rent and escalation, expenses, size of space leased, tenant improvement allowance, concessions, use restrictions, options, and confirming source. When comparing improved sales to a vacant land subject, the contributory value of the improvements shall be segregated from the land value.

27. For appraisals of easements, a before and after analysis of the burden of the easement on the fee, with attention to how the easement affects highest and best use in the after condition. An Easement Valuation Matrix or generalized easement valuation references may be used ONLY as a reference for a secondary basis of value.

28. For partial taking and easement appraisals, valuation of the remainder in the after condition and analysis and identification of any change in highest and best use or other characteristics in the after condition, to establish severance damages to the remainder in the after condition, and a discussion of special and general benefits, and cost to cure damages or construction contract work.

29. There are occasions where properties involve water rights, minerals, or salable timber that require separate valuations. If an appraisal assignment includes water rights, minerals, or merchantable timber that requires separate valuation, the valuation of the water rights, minerals, or merchantable timber shall be completed by a credentialed subject matter specialist.

30. For partial taking and easement appraisals, presentation of the valuation in California partial taking acquisition required format.

31. Implied dedication statement.

32. Reconciliation and final value estimate. Include analysis and comparison of the comparable sales to the subject, and explain and support conclusions reached.

33. Discussion of any departures taken in the development of the appraisal.

34. Signed Certification consistent with the language found in Uniform Standards of Professional Appraisal Practice.

35. If applicable, in addition to the above, appraisals of telecommunication sites shall also provide:
a. A discussion of market conditions and trends including identification of the relevant market, a discussion of supply and demand within the relevant market area and a discussion of the relevant market factors impacting demand for site acquisition and leasing within the relevant market area. b. An analysis of other leases comparable to subject property. Factors to be discussed in the analysis include the latitude, longitude, type of tower, tower height, number of rack spaces, number of racks occupied, placement of racks, power source and adequacy, back-up power, vault and site improvements description and location on site, other utilities; access, and road maintenance costs.

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EXHIBIT K

INFORMATION NEEDED FOR ESCROW PROCESSING AND CLOSURE
The Grantee shall provide the following documents to the State Project Representative during the escrow process. Property acquisition escrow documents shall be submitted within the term of this Grant Agreement and after a qualified appraisal has been approved. • Name and Address of Title Company Handling the Escrow • Escrow Number
• Name of Escrow Officer
• Escrow Officer’s Phone Number
• Dollar Amount Needed to Close Escrow
• Legal Description of Property Being Acquired
• Assessor’s Parcel Number(s) of Property Being Acquired • Copy of Title Insurance Report
• Entity Taking Title as Named Insured on Title Insurance Policy • Copy of Escrow Instructions in Draft Form Prior to Recording for Review Purposes • Copy of Final Escrow Instructions
• Verification that all Encumbrances (i.e., Liens, Back Taxes, and Similar Obligations) have been Cleared Prior to Recording the Deed to Transfer Title
• Copy of Deed for Review Purposes Prior to Recording
• Copy of Deed as Recorded in County Recorder’s Office
• Copy of Escrow Closure Notice
DocuSign Envelope ID: 741D7B02-9E38-495D-BABA-63DA2974673C

35.53 Grant Agreement No. 4600014630

EXHIBIT L

PROJECT MONITORING PLAN GUIDANCE
Introduction
For each project contained in Exhibit A, please include a brief description of the project (maximum ~150 words) including project location, implementation elements, need for the project (what problem will the project address) and responds to the requirements listed below.

Project Monitoring Plan Requirements
The Project Monitoring Plan shall contain responses to the following questions:
• What are the anticipated project physical benefits?
• What are the corresponding numeric targets for each project benefit? • How will proposed numeric targets be measured?
• What are baseline conditions?
• When will the targets be met (e.g., upon project completion, five years after completion)? • How often will monitoring be undertaken (e.g., monthly, yearly). • Where are monitoring point locations (e.g., meter located at…, at stream mile…)? Include relevant maps.
• How will the project be maintained (e.g., irrigation, pest management, weed abatement)? • What will be the frequency and duration of maintenance proposed activities? • Are there any special environmental considerations (e.g., resource agency requirements, permit requirements, CEQA/NEPA mitigation measures)?
• Who is responsible for collecting the samples (i.e., who is conducting monitoring and/or maintenance)?
• How, and to whom, will monitoring results be reported (e.g., paper reports, online databases, public meetings)?
• What adaptive management strategies will be employed if problems are encountered during routine monitoring or maintenance?
• What is the anticipated life of the project?
DocuSign Envelope ID: 741D7B02-9E38-495D-BABA-63DA2974673C

35.54 Grant Agreement No. 4600014630

EXHIBIT M

INVOICE GUIDANCE FOR ADMINISTRATIVE AND OVERHEAD CHARGES The funds provided pursuant to this Agreement may only be used for costs that are directly related to the funded Project. The following provides a list of typical requirements for invoicing, specifically providing guidance on the appropriate methods for invoicing administrative and direct overhead charges.

Administration Charges
Indirect and General Overhead (i.e., indirect overhead) charges are not an allowable expense for reimbursement. However, administrative expenses that are apportioned directly to the project are eligible for reimbursement. Cost such as rent, office supplies, fringe benefits, etc. can be “Direct Costs” and are eligible expenses as long as:
• There is a consistent, articulated method for how the costs are allocated that is submitted and approved by the Grant Manager. The allocation method must be fully documented for auditors. • A “fully-burdened labor rate” can be used to capture allowable administrative costs. • The administrative/overhead costs can never include:
o Non-project specific personnel and accounting services performed within the Grantee or an LPS’ organization
o Generic markup
o Tuition
o Conference fees
o Building and equipment depreciation or use allowances • Using a general overhead percentage is never allowed
Labor Rates
The Grantee must provide DWR with supporting documentation for personnel hours (see personnel billing rates letter in example invoice packet). The personnel rate letter should be submitted to the DWR Grant Manager prior to submittal of the first invoice. The supporting documentation must include, at a minimum, employee classifications that will reimbursed by grant funds and the corresponding hourly rate range. These rates should be “burdened”; the burdened rate must be consistent with the Grantee’s/Local Project Sponsors standardized allocation methodology. The supporting documentation should also provide an explanation of what costs make up the burdened rate and how those costs were determined. This information will be used to compare against personnel hours summary table invoice back up documentation. Periodic updates may be needed during the life of the grant which would be handled through a revised billing rate letter.

DocuSign Envelope ID: 741D7B02-9E38-495D-BABA-63DA2974673C

35.55 35.56
City Council

AGENDA REPORT
DATE: 06/13/2022
AGENDA OF: 06/28/2022
DEPARTMENT: Water
SUBJECT: Program Management Services For Water System Capital Investment Program (WT)
RECOMMENDATION: Motion to:
1) Authorize the City Manager to renew a Master Services Agreement, in a form to be approved by the City Attorney, with HDR (Walnut Creek, CA) for Program Management Services for a five-year period; and
2) Authorize the City Manager to execute Contract Amendment No. 2023-01, in a form to be approved by the City Attorney, with HDR for Service Order No. 8 in the amount of $6,747,350.

BACKGROUND: The Water Department is implementing a large and complex capital program to enhance water system resiliency and water supply security. This investment will touch most areas of the system and renew or replace significant assets including diversions, pipelines, and water treatment infrastructure. Some of the water system investments include:
• The Newell Creek Dam Inlet/Outlet project, a $77 Million construction project completing construction in early 2023.
• Modernization of the Graham Hill Water Treatment Plant to ensure continued delivery of high-quality drinking water to our customers that meets or exceeds all regulatory standards; a $100 Million construction project currently in preliminary design. • Newell Creek Pipeline replacement project with a preliminary construction cost estimate of $40 Million; completing design 2022 and starting construction in 2023. • Evaluation, selection, and construction of supplemental water supply as outlined by the Water Supply Advisory Committee; an ongoing program to meet water supply reliability goals.

In 2017, recognizing that the staffing needs of a large-scale capital program would exceed the capable but relatively small department staffing, staff recommended a program management model to help deliver this unprecedented set of projects. Program Management is the coordinated management of multiple and/or large projects. Program Management services can vary widely based on the types of projects and needs of their owners. Typical program services

36.1 include staffing and systems to support project management, administrative systems, processes and software tools and applications, as well as technical reviews, and financial, legal and permitting support. For similar reasons (large capital programs with small staffing models) public entities like the City of San Jose and Soquel Creek Water District are using a program management model to implement large-scale infrastructure programs similar to that of the Santa Cruz Water Department.

Through a qualifications based procurement process HDR was selected and, in December 2017, City Council authorized a Master Services Agreement (MSA) for Program Management Services with HDR. An MSA and annual Service Order contract model is commonly used for Program Management Services where it is not possible at the outset of a long-term contract to define the exact scope of services needed over a multi-year period. Instead, the MSA includes the broadest scope of services contemplated at the time, and annual Service Orders are issued through contract amendments to define specific scopes of work, fee estimates, and schedules as the program matured and priority projects were approved for implementation.

The MSA is organized into six discrete tasks as listed below; each Annual Service Order follows this task numbering system.
• Task 1 Mobilization: Establish the primary elements of program management including needs assessment, staffing, and development of program and risk management plans. (This task is complete.)
• Task 2 Design Management: Manage or support the management of study and design activities performed by others.
• Task 3 Program Administration: Implement program structures, policies, and systems, such as risk management, quality assurance, and program controls. • Task 4 Planning and Preliminary Engineering: HDR is authorized to perform planning and preliminary engineering work, they are not authorized to perform design work. • Task 5 Construction Management: Provide constructability reviews, construction oversight, inspection, and commissioning.
• Task 6 Support Services: Assist with ancillary project requirements such as California Environmental Quality Act (CEQA), right of way, surveying, geotechnical, and development of grant or loan applications or other proposals for project funding.

The initial contract with HDR was approved for a five-year period (expiring December 2022), with an option to renew for an additional five years.

Three of the most significant benefits of the City/HDR program management model include:
• HDR serves as an extension of staff to directly manage or support the management of projects serving the City by enabling project teams to scale up and down as needed and tap into the right expertise at the right time. This flexible staffing model has been effective given the diverse types and sizes of projects. HDR has collaborated with City staff on integrated project teams in both leading and supporting roles in a number of

36.2 different capacities from project management/project engineering, environmental, and technical assistance.
• HDR has introduced industry best practices to execute projects in the most efficient and cost-effective manner. These organizational systems and structures provide a framework for effective project management including schedule development, project cost estimating and forecasting systems, risk management, decision making and change management procedures. The practices introduced by HDR have strengthened the Water Department’s institutional systems around project delivery and will continue to be applied after HDR and the City partnership concludes. HDR provides ongoing administrative assistance with scheduling, cost estimating/management, risk analysis, and quality assurance, right of way, and permitting assistance. • HDR has completed a number of technical tasks such as planning studies to facilitate long-range decisions and outline next steps for key projects. Notable work products include the development of a planning report for the Newell Creek Pipeline, water main risk model and replacement plan, and facility master planning and 10% design for the Graham Hill Water Treatment Plant. HDR has played a critical supporting role from project inception to completion.

Two mechanisms are in place to ensure best value with the program management model:

1. The Department has engaged an independent advisor who conducts routine audits and reviews the overall program performance. These internal quality reviews are conducted on a routine basis and include monthly progress reports summarizing overall progress, safety, cost and schedule performance. Detailed monthly invoices for this work are generated and receive multiple levels of review.

2. Staff regularly evaluates the need for new City permanent positions to achieve the right balance of consultants and City staff to implement the capital program while maintaining and operating the water system. To this end, over the last five years, the Water Department has added several permanent positions in response to the expanded capital program including an additional treatment plant operator and mechanic position, an administrative assistant, and most recently a principal management analyst position.

Having HDR onboard for the past five years, working alongside staff development project management tools, developing and constructing projects has positioned City staff well to begin insourcing some of the roles and services provided by HDR. These types of services include design management, administrative support, cost controls, contract management, quality assurance, and construction management and inspection. And, as shown on page 4 of the Program Management Program Overview, long-range staff resources projections estimate that the need for consultant support will steadily taper off over the next five years.

DISCUSSION: As noted above, the Master Service Agreement was executed December 22, 2017, and will expire at the end of the calendar year. Because of the significant amount of work ongoing and new work in the capital program, staff recommends renewing the MSA for an additional five years, noting that insourcing of work currently performed by HDR is an ongoing considerations. No significant changes are being proposed to the contract structure or structure of the service order. A copy of the updated Master Scope Agreement is included.

36.3 In addition to the renewal of the Master Service Agreement, staff recommends approval of Service Order No. 8 (SO8) which covers all program management activities planned for Fiscal Year 2023. Service Order No. 8 provides for a continuation of planning, design management, program administration, construction, and environmental services initiated through prior service orders.

Notable HDR Services/staffing resources planned for FY 23 include:
• Provide a staff person to serve as operations and maintenance (O&M) liaison. This role supports and coordinates O&M operations and engagement of O&M staff in capital project planning, design, and execution.
• Lead the construction phase of the Concrete Tanks Replacement Project with ongoing Project Management and Construction Management services. • Provide Project Management and Technical support for the Graham Hill Facility Improvement Project.
• Supplement project teams with Assistant Project Management, Project Engineering, and Right of Way support on the Newell Creek Pipeline Projects and Newell Creek Dam Inlet/Outlet Project.
• Support development of the Water Supply Augmentation Implementation Plan. • Facilitate and support City-wide procurement and implementation of replacement software for the Computerized Maintenance and Management System. • Support the construction of multiple environmental restoration projects. • Support ongoing scheduling, cost forecasting, budgeting, and cash flow estimates through project controls support.

SO 8 is very detailed, providing the information necessary to direct the work of HDR in an efficient, clear, and transparent manner, and includes clearly identified assumptions and deliverables. To facilitate the review and understanding of the work covered in Service Order 8, staff has worked with HDR to develop an Annual Work Plan. The Annual Work Plan is a summary of work that describes the projects, resources, and planned activities over the next year, a summary program schedule, and the program management fee apportioned to each project managed within the program. The summary of work is intended to provide sufficient detail to fully understand the scope, schedule, budget and benefits provided to the City. Contract Amendment No. 2023-0l, includes SO 8, describing all services, deliverables, assumptions, and associated fees.

FISCAL IMPACT: The cost for Service Order No. 8 is $6,747,350. The program management services contract is funded through the respective capital projects-which are financed through a mixture of grants, pay as you go, and debt financing. Funds are available in the FY 2023 Water Department’s Capital Investment Project budget.

36.4 Prepared By:

Kevin Crossley
Senior Professional Engineer
Submitted By:

Heidi Luckenbach
Acting Water Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. CITY OF SANTA CRUZ PROGRAM MANAGEMENT PROGRAM OVERVIEW.PDF

2. PROFESSIONAL SERVICES AGREEMENT_PROGRAM MANAGEMENT AND MSA SCOPE.FINAL.APCSIG.PDF

3. FISCAL YEAR 2023 - ANNUAL WORK PLAN (SO 8).PDF

4. CONTRACT AMENDMENT NO. 2023-0L.PDF

36.5 Including projects which:

City of Santa Cruz
Program Management

PROGRAM OVERVIEW
Since 2017, HDR has supported the City of Santa Cruz Water Department in implementing the Santa Cruz Water Capital Improvement Program, a dedicated effort to improve the City’s water supply system. The program’s overarching goals to deliver enhanced system resiliency and supply reliability for the community.

The program involves delivering
>25

PROJECTS
14+
over YEARS

PROGRAM

MANAGEMENT
The fully integrated management
approach to this extensive
program carefully balances the
following key elements:

TECHNICAL
Efficiently deliver
projects using
best management
practices, advanced
and proven
technology to secure
safe and reliable
drinking water.

FINANCIAL
Ensure the program
is affordable, delivers
best-value projects,
and mitigates
schedule delays.

STAKEHOLDER
Value stakeholder
input, communicate
transparently, and
maintain program
support.

REGULATORY
Move the program
forward while
proactively engaging
regulators every step
of the way.

PROGRAM BENEFITS
• Access to technical resources for
immediate WTP analyses in response
to CZU fire in watershed
• Constructability reviews staffed from
program team improve quality of
contract documents
• Technical experts support confident
navigation of the Department’s first
collaborative delivery procurement
• Knowledge in support of the City’s
operations proposal approach for
Soquel’s advanced water purification
facility

EXPERIENCE
Enhanced depth and
breadth of experience
available to support
projects by drawing
from unique consultant
staff expertise.
• Project team formation balances
resource availability with growth
opportunity
• FIP CM team includes City staff
development as Resident Engineer
and Inspector
• City engineer recently transitioned
into Program role as Design Manager

SKILL BUILDING
Knowledge transfer and
succession planning
opportunities for City
staff by integrating
teams while maintaining
ownership.
• Employ both short-term and 5-year
staff planning tools to assess needs,
fill gaps, and add expertise. Efficient
response to changing staff needs to
keep projects on track
• As projects end, supplemental
program staff transition off until City
team proceeds at pre-program levels
• Program electrical engineer provides
continuity in project support
following City staff departure

FLEXIBILITY
Staffing flexibility to
match program needs by
leveraging the depth and
variety of consultant staff
expertise.
• Excel based cost systems allow direct access by PMs for most up to date cost info
• Monthly reviews with each PM provides support and
accountability to own project level cost, schedule and risk

CONTROLS TRACKING
Program level schedule and cost tracking and
forecasting keep leadership informed, support
capital planning, and enable timely response
to variances to keep the program on-track. • Program risk modeling annually informs management of reserve contingency
• Project managers learn to “speak risk” through every
project phase

RISK INFORMED PLANNING
Qualitative risk registers and quantitative risk
modeling highlight where risk mitigation has
maximum impact.
• “Stage gate” meetings utilize “right
fit” leadership engagement through
project life, enabling up to four fold
increase in project output
• Project delivery models and
processes will “live on” as best
practice after program ends

PROJECT

DELIVERY
Improved project
delivery effectiveness
by standardizing
and implementing
organizational systems
and structure. • Quarterly program quality reviews
and ongoing quality assurance action
log maintain focus and accountability
• Monthly project quality report cards
document successes and identify
where support is needed

QUALITY
Comprehensive quality
program drives excellence
in four areas: process
quality, project quality,
business delivery, and
• Operations Liaison role for WTP technical delivery.
projects mitigates resource drain on
staff and enhances communication
• Cross project coordination meetings
streamline planning for operational
shut downs

OPERATIONS

ENGAGEMENT
Earlier and increased
engagement followed by
improved asset handoff
strategy.

Replace aging
infrastructure
Address
regulatory
compliance
Augment and diversify
water supply to
reduce drought

36.6 PROJECT HIGHLIGHTS
Facilities Improvements Project (FIP)
• $100M (est. construction) project
upgrades aging treatment plant to
reliably meet current and future
treatment objectives, increase
resilience to changing source water
quality and emerging contaminants,
support water supply strategy and
reduce operational stress
• Current project phase: Preliminary
Design
• Utilized new to the City (voter
approved) delivery method:
progressive design build
Concrete Tanks Replacement
• Addresses infrastructure deficiency,
improves water quality and increases
operational flexibility
• Construction Phase: 2021 - 2024
• $30M construction project Replaces
three 0.75 MG concrete tanks at the
end of their useful life, three pumping,
stations, electrical building and process
improvements
• Procured new CM software (Procore)
• Secured project funding through SRF
and WIFIA loans
• Safety First - Maintaining solid safety
record with 0 recordable incidents
Newell Creek Dam Inlet/Outlet Replacement Project Newell Creek Pipeline Replacement: Felton to Graham Hill Graham Hill Water Treatment Plant (GHWTP) projects
1 7
Loch Lomond
SanLorenzo River
Reservoir
Newell Creek
Newell Creek
San Lorenzo River
Tait Street
Diversion
Coast Pump
Station
Felton
Diversion
Graham Hill WTP
Felton
Booster Station

1.5 1.5.1

1.4 2.2

6.2 3.?

4.1 1.3

4.5 4.3

2.3 4.2

2.1 1.2

1.1 2.1

4.4 6.1
Liddell
Spring
Intake
Laguna
Creek
Intake
Majors
Creek
Intake

3.3 3.4

3.1 Beltz
Groundwater TP

PROJECT MAP
• The Water Supply Program evaluates multiple alternatives to augment existing water supplies and implements the feasible water supply projects, including Aquifer Storage and Recovery (ASR), Recycled Water, In-LIeu Water Transfers, and/ or Riverbank Filtration
• Current project phase: Planning and Testing
• Vulnerability Study with Drs Raucher and Brown; new supply model; updated water demand forecast; groundwater and ASR modeling; and development of the Water Supply Augmentation Implementation Plan, by 2024
• Planning includes initiation of new supply model completion of update to water demand forecast
• Pilot testing of ASR injection at Betlz Wells in Mid-County aquifer is ongoing • Completed full scale pilot testing for in-lieu water transfers with Soquel Creek Water District
Water Supply Augmentation (planning and testing phase)
HDR is supporting the implementation of this
water supply program with key technical advisory
resources. Additional services include project
management support.

PROGRAM

MANAGEMENT
HIGHLIGHT:
• This project replaces and relocates 4.4 miles of the Newell Creek Pipeline between Felton Pump Station and Graham Hill Water Treatment Plant (Est. construction $25M) • Provides continued reliability of critical water supply infrastructure • Current project phase: 90% Design
• Conducted system modeling and hydraulic surge analyses • Conducting Right-of-Way analysis for easements along proposed alignments • Project funding through SRF and WIFIA loans
• Program Manager services include integrated Project Management team, planning, modeling, and conceptual design, environmental leadership, technical reviews, real estate and right of way, constructability reviews, cost estimating, risk modeling HDR led the programmatic approach for CEQA
process which streamlined regulatory approvals for
three pipeline projects; The integrated team included
technical experts for design and cost reviews.

PROGRAM

MANAGEMENT
HIGHLIGHT:

HDR provided project planning,
testing, and conceptual design;
risk modeling, delivery method
selection and procurement; project
management; O&M liaison support

PROGRAM MANAGEMENT
HIGHLIGHT: PROGRAM MANAGEMENT
HIGHLIGHT:

HDR provided project management,
value engineering, risk modeling,
constructability review, construction
management, environmental monitoring,
O&M liaison; asset management

1.0 RAW WATER DIVERSION

PROJECTS
• Award Winner – 2021 West Region Merit Award (Association of State Dam Safety Officials)
• $77M construction project addresses existing deficiencies, established reliable supply storage, and improves operation efficiency, system performance and maintenance access
• Construction phase: April 2020—Feb 2023
• Obtained Key Permits/Approvals (Division of Safety of Dams Division of Drinking of Water, Army Corp, CA Fish and Wildlife)
• Includes four Environmental Mitigation/Restoration projects, in progress • Met key regulatory milestone by completing in stream work by November 11, 2020 • 1500 ft of 12-ft diameter tunnel; with 48-inch and 10-inch inlet/outlet pipelines; three 60-inch vertical inlet shafts in depths up to 120 feet water; 2000 ft 30-in pipeline
• Minimal disruption to reservoir and water supply operations during construction • Implemented heightened on-site safety protocols through CZU complex fire evacuation and COVID safety procedures; no medical or first aid safety incidents to date during construction
• Secured project funding through State Revolving Fund loan Integrated City/HDR project management team
through design and construction; effective operations
coordination of source water quality monitoring

PROGRAM

MANAGEMENT
HIGHLIGHT:

5.0 TREATED WATER MAIN

5.1 Meter Replacement (System Wide)
Construction: 2021-2023

6.0 TREATED WATER

STORAGE PROJECTS

6.1 University Tank No. 4 Rehab/
Replacement
Construction: 2024

6.2 University Tank No. 5 Replacement
Construction completed: 2020

3.0 WATER SUPPLY AUGMENTATION

3.1 Water Supply Augmentation Planning

3.2 Recycled Water Feasibility Study

3.3 Aquifer Storage & Recovery - Mid-County Basin
Construction: 2023; 2026-2028

3.4 Aquifer Storage & Recovery - Santa Margarita Basin
Construction: 2028-2029

4.0 WATER TREATMENT RELIABILITY PROJECTS

4.1 Graham Hill WTP Tube Settlers Replacement
Construction completed: 2019

4.2 Graham Hill WTP Flocculator Rehab/Replacement
Construction completed: 2021

4.3 Graham Hill WTP Concrete Tanks Project
Construction: 2021-2024

4.4 Graham Hill WTP Facility Improvement Plan
Construction: 2024-2028

4.5 River Bank Filtration Study
Construction: 2024-2026

1.1 North Coast System Laguna
Diversion Rehab
Construction completed: 2021

1.2 North Coast System Majors
Diversion Rehab
Construction: 2029-2031

1.3.1 Tait Diversion Rehab/Replacement
(in stream work)
Construction: 2028-2029

1.3.2 Coastal Pump Station Rehab/
Replacement
Construction: 2031-2032

1.4 Felton Diversion, Bladder
Replacement & Pump Station
Assessment
Construction: 2027-2028
Bladder replacement completed:
2018

1.5 Newell Creek Dam Inlet/Outlet
Replacement Project
Construction: 2020-2023

1.5.1 NCD I/O Project - Spillway Bridge
Replacement
Construction completed: 2019

2.0 RAW WATER PIPELINE PROJECTS

2.1 North Coast System Repair & Replacement Project
Construction: 2021-2033

2.2.1 Newell Creek Pipeline Felton/Graham Hill
Construction: 2023-2024

2.2.2 Newell Creek Pipeline Felton/Loch Lomond
Construction: 2030-2032

2.2.3 Bradkney Landslide Area Risk Reduction
Construction: 2023-2024

2.3 Coast Pump Station 20-inch Raw Water Pipeline
Replacement
Construction completed: 2021
LEGEND
 Diversion
 Intake
Pump Station
Water Treatment Plant
Water Pipelines
Highways
Service Area
SEPTEMBER 2021

36.7 COMPREHENSIVE PROGRAM

MANAGEMENT SERVICES PROVIDED

PROGRAM BY THE NUMBERS

PROGRAM STAFFING EFFECTIVELY

SUPPLEMENTS CITY RESOURCES

PROGRAM

MANAGEMENT

SERVICES

SANTA CRUZ WATER

PROGRAM OVERVIEW
Program
Administration
Program
Framework
Program
Support
Program
Delivery

PROGRAM ADMINISTRATION
• Change Management
• Cost Estimating
• Document Management
• Program Controls
‒ Cost Management
‒ Earned Value Management
‒ Reporting
‒ Schedule Management
‒ Work Breakdown Structure
• Program Tools
‒ Collaboration Site/Portal
‒ Dashboards
‒ IT Setups/Systems Integration
‒ PMIS/CMIS/Other Delivery Tools
• Quality Management
PROGRAM DELIVERY • Risk Management
• Construction Management
‒ Claims Management and
Forensics

PROGRAM SUPPORT
• Capital Planning, Economics and
Financing Support
• Communications
• Environmental Support
‒ Environmental Monitoring/
Compliance
‒ Environmental Permitting
‒ Environmental Review/Planning
• Health And Safety Support
• Operations Support
‒ Asset Management
‒ Asset Onboarding
‒ Condition Assessment
‒ Operational Optimization
‒ Operational Readiness
‒ Testing/Startup/Commissioning
• Organizational Strengthening
• Procurement and Contracting
Support
• Real Estate
• Regulatory and Permitting Support
• Sustainability and Resiliency

PROGRAM FRAMEWORK
• Governance Structure
• PMO Mobilization
• Program and Team Chartering
• Program Management Plan
• Program Organization and
Resources Plan 93% $100 27 $750 14 22+
10 24
million million
of Total
CIP
Largest
Construction
Contract
Discrete
Projects
Program
Cost
$79M peak
Year Spending City Core
Staff
HDR Core
Staff
Year
Program
Combined
Team
FTEs
• Roles, responsibilities clearly defined
• Easy access to deep bench of
technical resources
• Optimize use of City staff
HDR
CITY
Staff augmentation
Engineering Staff
Technical advisory
Program Administration
‒ Construction Planning
‒ Contract Administration
‒ Dispute Resolutions
‒ Field Inspections
• Planning and Design Management
‒ Conceptual Engineering
‒ Design Integration/Reviews
‒ Design Standards/Guidelines
‒ Master Planning
‒ Value Engineering
• Program Delivery Strategy
‒ Delivery Methods Selection
‒ Project Packaging/Sequencing
‒ Scope Validation/Definition
• Project Management And Delivery
Many of this program’s goals - beyond building projects - have been realized in the past 5 years. The team looks forward to another productive 5 years.
12 1.71

1.52 2.71
12 4.57

3.87 5.43
12 5.45

2.22 6.04
12 5.11

0.67 5.01
12 6.8

2.2 4.5
12 6.3

1.1 4.3
12 4.6

0.7 3.6
12 1.4

0.5 3.2
12 1.3

0.5 3.0
2018 2019 2020 2021 2022 2023 2024 2025 2026
FTEs

36.8 City of Santa Cruz Professional Services Agreement for PROGRAM MANAGEMENT

SERVICES FOR THE CITY OF SANTA CRUZ WATER DEPARTMENT
June 2022 Page 1

PROFESSIONAL SERVICES AGREEMENT FOR

PROGRAM MANAGEMENT SERVICES FOR THE

CITY OF SANTA CRUZ WATER DEPARTMENT
THIS AGREEMENT for professional services is made by and between the City of Santa Cruz (“City”) and HDR Engineering Inc. (“Consultant”) (together referred to as the “Parties”) as of ____________, 20__ (the “Effective Date”).

SECTION 1: RELATIONSHIPS OF THE PARTIES

1.1 City of Santa Cruz and Consultant
It is the Parties' intent that Consultant shall perform the program management services set forth in the Statement of Work ("SOW" or “Work”), incorporated herein as Exhibit A, to support successful completion of the City of Santa Cruz Water Program (Program). During the term of this Agreement, Consultant's Program Services, as herein defined, shall be provided by Consultant as an independent contractor, notwithstanding any shared facilities or co-location of offices, or any integration of Consultant’s staff with City staff during the course of the Program. Acting at all times as an independent contractor, Consultant shall have the responsibility for and control over the details and means of performing the Program Services. Consultant acknowledges it has the duty to provide continuous, adequate supervision of its personnel, consultants and subcontractors, if any. Nothing in this Agreement shall be construed or shall imply that Consultant or any of its sub-consultants, subcontractors, affiliates, employees, agents, or representatives are employees, representatives, or agents of the City. Consultant shall be subject to the direction of the City only with respect to the Program Services and the general results required. Consultant shall not make any commitment nor incur any charge or expense for or on behalf of the City without the prior written approval of the City.

Due to the complex nature and length of the City of Santa Cruz Water Program, the Parties contemplate that the SOW may be modified from time to time and the Parties agree to use their best efforts to incorporate those adjustments in a timely and mutually acceptable manner. Any such modification shall be in writing. The timing, sequence, and specific services necessary to carry out this Agreement and the SOW shall be updated annually by the Parties in an Annual Work Plan (which is further described in Exhibit A) approved by the City in its sole discretion. Nothing in this Agreement shall be construed to mean that Consultant is an agent of the City unless otherwise expressly stated herein. Nothing in this Agreement shall be construed to mean that Consultant is a fiduciary of the City.

The City’s Water Department Director, or her designee (hereafter "Program Director") is the City’s authorized representative. The Program Director is responsible for authorizing and approving all Work performed under this Agreement. All Work to be performed by Consultant shall be authorized in writing by the Program Director as provided by this Agreement. All Consultant’s communications related to the City shall be with the Program Director and, in the Program Director's absence, his/her designee. The Program Director is authorized to make decisions on behalf of the City related to the SOW. The Program Director shall be responsible for the day-to-day administration, coordination and approval of Work performed by Consultant, except for approvals which are specifically identified in this Agreement as requiring the approval of the City. Matters exceeding the monetary limit of the Program Director shall be referred to the Water Department Deputy Director for decisions Holly Kennedy (“Consultant’s Representative”) shall serve as Consultant's representative for the Work.

Consultant's Representative shall have sufficient authority to represent and bind Consultant in those instances when such authority is necessary to carry out Consultant's responsibilities and obligations under the terms of this Agreement.

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1.2 Staffing and Key Personnel

In addition to Consultant’s Representative, Consultant personnel listed below are essential to the proper performance of the services under this Agreement:
• Karen Pappas, Program Manager
• Greg Bradshaw, Water Treatment Design Lead
• Leslie Tice, Environmental Advisor
• Ron Perkins, Construction Management Lead
The above-identified individuals are key persons and shall be available to perform the Work. Consultant agrees to make these key personnel available as required to perform the Work as long as such persons are employed by Consultant. Consultant shall obtain the prior written approval of the City before appointing other Consultant personnel as a substitute(s) for the above-named key personnel. The City reserves the right to reject proposed replacement personnel, or to require the replacement of any Consultant personnel. The City’s exercise of its right to reject or require replacement Consultant personnel shall not subject the City to any liability to Consultant, nor be used by Consultant as an excuse for failure to meet the requirements of this Agreement, nor shall City’s termination of this Agreement for failure to assign personnel acceptable to City be deemed a “termination for convenience” pursuant to Section 8, below.

Consultant shall insure the quality, timeliness, and continuity of services are maintained through the duration of the Program. Consultant shall avoid changes to the key personnel to the extent possible.

Mobilization of all full time Program Management staff assigned to the Program shall be individually approved in writing by the Program Director prior to their mobilization on the Program. Requests for mobilization of staff shall be submitted to the Program Director and shall include the reason for the individual’s mobilization, their hourly salary rate without benefits, and their expected travel on the program. Program management staff who are demobilized shall be tracked by the program manager.

Any other staff support for the City that is either not assigned to the Program and/or is assigned to the Program less than full time shall be authorized in advance by the Program Director. The Consultant shall submit to the Program Director the reason for the staff support, the name of the support staff to be utilized, and their base hourly rate without benefits for written approval in advance of their work on the program. No staff shall charge more than 20 hours to the program unless written approval is given in advance by the Program Director. Program support staff such as administration, CAD or GIS techs, graphic designers or are exempt from the staff approval requirement. Any charges for staff that have not been properly approved will be disallowed and not paid by the City.

Consultant shall inform the City in writing of any non-employee persons or firms it intends to contract with to perform any Work required by this Agreement and shall keep the City informed of any changes or additions to this information. The City shall approve in writing any additional firms Consultant proposes to contract with prior to commencement of Work. Consultant shall be responsible for any Work performed under this Agreement, including that portion of the SOW performed by other individuals or firms. Nothing contained herein shall create any contractual relationship between any additional persons and/or firm(s) and the City.

1.3 The City and Designer

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The City will enter into separate contracts with one or more Designers to design major components of the Program and provide certain design related services during the construction phase of the Program. To the extent required by this Agreement, Consultant shall support the City in the selection of and coordination with any Designer retained by City for the Program. The City may enter into contract with Consultant to provide design services as needed.

1.4 The City and Contractors
The City reserves the right to enter into one or more separate construction contracts for construction of the Program. The construction contractor ("Contractor" or "Contractors") shall perform the specific work for the Program, the scope of which work shall consist of furnishing all labor, materials, tools, equipment, supplies, services, supervision, and perform all operations as required by the applicable construction contract.

1.5 Relationship of the Consultant to Others
The Consultant shall establish and maintain, on the City’s behalf, a good, professional working relationship with the contractors, designers and the City’s program management personnel.

The Contractors shall be solely responsible for construction means, methods, techniques, sequences and procedures used in constructing the Program, for the safety of their respective personnel, property, and their operations, and for performing in accordance with their contracts between the City and contractors. The designers are solely responsible for the Program's design and shall perform in accordance with the Agreements between the designers and the City.

This Agreement gives no rights or benefits to anyone other than City and Consultant and has no third party beneficiaries. All work product produced by Consultant will be prepared for the benefit of City and not the benefit of any third party, including but not limited to Designers and Contractors.

SECTION 2: PROGRAM SERVICES

2.1 Program Services
The Consultant shall perform the professional services described in Exhibit A, to this Agreement.

2.2 Standard of Care
Consultant covenants with the City that it shall perform the Program Services with the same degree of care, skill and diligence as is ordinarily possessed and exercised in the same profession under similar circumstances and shall ensure that its subcontractors, if any, have the level of skill in the area commensurate with the requirements of the Program Services to be performed. Consultant shall at all times serve the best interests of the City in performing Program Services and Consultant shall advise the City when, in Consultant's professional judgment, Professional Services the City requests are not in the City’s best interests.

SECTION 3: TERM OF THE PROGRAM MANAGER’S SERVICES
The commencement date for the Consultant's Program Services shall be the date of the execution of this Agreement. The term of the Consultant program services under this master agreement shall be five years through June 30, 2027, with an option to renew for an additional five year period at the City’s sole discretion.

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Consultant shall submit a proposed Annual Work Plan and budget by January 30,2023 and January 30 of each year thereafter during which this Agreement is in effect. Prior to June 30, 2023 and prior to June 30 of each year thereafter, City shall review and approve the Annual Work Plan and budget for the fiscal year commencing July

1. Unless the Annual Work Plan and budget are approved for that ensuing fiscal year, no work shall occur.

Time is of the essence and performance of the Program Services under this Agreement shall be developed, completed and implemented according to the SOW. Any delays in performance within the control of Consultant, its consultants, subcontractors, employees or agents shall not be cause for extending the final completion of PROGRAM beyond expiration of the term specified above, unless otherwise specified in writing.

SECTION 4: CHANGES IN THE PROGRAM MANAGER’S STATEMENT OF WORK

4.1 City Changes
The City, without invalidating this Agreement, may make changes in the Consultant's SOW. If any changes in the SOW are within the general scope of the SOW, Consultant's compensation for any changed work shall be subject to the rates set out in Exhibit B. If the scope or the duration of the Consultant's SOW is materially changed, the Consultant's compensation shall be adjusted. To the extent the Consultant considers an act or omission by the City to be a material change to the SOW for which Consultant is entitled to additional compensation, Consultant shall submit a written proposal identifying the material change, the proposed change in compensation for the change in the SOW and/or schedule impact. The Consultant’s written submission shall be provided by the Consultant to the City within thirty (30) days of the occurrence of the event giving rise to such request. The amount of the change in compensation to be paid, if any, shall be determined by the City consistent with the compensation provisions of this Agreement as provided in Exhibit B Rates/Fees/Prices.

4.2 Authorization
Changes in Consultant's SOW and entitlement to additional compensation or a change in duration of this Agreement shall be made by a written amendment to this Agreement executed by the City and the Consultant.

The amendment shall be executed by the City and Consultant prior to the Consultant performing the services required by the amendment.

The Consultant shall proceed to perform the services required by the amendment only after receiving written notice from the City directing the Consultant to proceed.

SECTION 5: PROGRAM MANAGER AND CITY RESPONSIBILITIES
City shall provide to the Consultant information regarding City’s knowledge of and requirements for the Program.

City shall furnish required information and approvals and perform their responsibilities and activities in a timely manner to facilitate orderly progress of the Program in cooperation with the Consultant consistent with this Agreement.

At the request of the Consultant, copies of the Contract Documents shall be furnished to the Consultant by City.

Except as provided in the Contract Documents, it is the intent of the City and Consultant that Consultant, its representatives and consultants shall coordinate its communications with the designer(s) and contractor(s) through the Program Director, except as otherwise directed by the City. Consultant, by its’ communications, written or

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otherwise, is not authorized to commit or obligate City in any manner, express or implied, and including but not limited to, financial or any other payment obligations.

City shall send to the Consultant and shall require the designer(s) to send to the Consultant copies of all notices and communications sent to or received by the City or the designer relating to the Program. During the construction phase of the Program, City shall require that the contractor(s) submits all notices and communications relating to the Program directly to the Consultant.

City shall designate, in writing, one or more authorized representatives to act in City' behalf with respect to the Program. This representative shall have the authority to approve changes in the scope of the contractors' work within certain limits and shall be available during working hours and as often as may be required to render decisions and to furnish information in a timely manner.

This Agreement does not guarantee to Consultant any additional or future work except as expressly authorized herein or in any approved Annual Work Plan.

This Agreement does not create or imply an exclusive agreement between Consultant and the City.

The services and any and all interests contemplated under this Agreement shall not be assigned or otherwise transferred except with the written consent of City.

Consultant and its personnel shall remain the agents and employees of the Consultant. Consultant and its personnel are not and shall not be construed to be employees of City under any circumstances, nor shall its personnel be construed to be agents of the City, except to the extent expressly provided for herein. It is not the intention of the Parties that they shall be co-employers.

All documents of any nature prepared by Consultant in connection with the services provided by Consultant as identifiable deliverable documents under the terms of this Agreement, or electronic files of any nature prepared by Consultant pursuant to this Agreement, shall become the sole property of City and shall be available for use by City for any purpose without additional compensation to Consultant. However, any modification or reuse of such materials for purposes other than those intended by this Agreement shall be at City’s sole risk and without liability to Consultant.

Consultant shall not utilize work product, data, information, results, and materials produced as part of its efforts under this Agreement for any promotional or public relations purposes whatsoever without the express, prior, written consent of City.

SECTION 6: COMPENSATION FOR SERVICES AND PAYMENT
City shall pay Consultant for services performed or furnished in accord with the agreed rates and pricing as specified in Exhibit B. City shall pay Consultant for reimbursable expenses incurred by Consultant as set forth in Exhibit B. Transportation shall be pre-approved by City in writing; lodging, meals and incidental expenses shall be reimbursed in accord with City’s current Travel Reimbursement Policy as it may be amended from time to time. The foregoing compensation to be paid Consultant under this Agreement, as provided herein, is intended to cover the entire cost of the services under this Agreement.

The program management staff and expenses will be billed to the Program as provided in Exhibit B.

Consultant shall submit monthly invoices to the City. Consultant's invoices for payment shall be submitted in the manner required by City, the format of which shall be specified by City. All invoices shall be accompanied by

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supporting documentation as required by City, and such supporting documentation shall include, but not be limited to details of time expended, materials used, progress reported and approved, and earned value of SOW.

City reserve the right, either directly or through its authorized representatives, to perform an audit of all of Consultant books and records which support Consultant's invoices, and Consultant shall retain all such books and records for three (3) years after the termination of this Agreement.

Invoices shall detail the time worked by each class of employee on each task and the expenses incurred for which billing is made. Invoices shall indicate the percentage completion of each work task as identified in the Scope of Work in Exhibit A and the overall percentage of completion of the total required services. Payments shall be made monthly by the City based on itemized invoices from the Consultant which list the actual costs and expenses.

All invoices shall contain the following affidavit signed by a principal of the Consultant's firm:
"I hereby certify as principal of the firm of (Insert Firm Name), that the charge of (Insert invoice amount) as summarized above and shown in detail on the attachments is a fair and reasonable use of public funds, is in accordance with the terms of Agreement dated (Insert Agreement Date), and has not been previously paid."
Unless otherwise stated in this Agreement, a copy of each invoice, duly marked "COPY," shall be sent directly to the Program Director or contract administrator as identified in this Agreement or as otherwise directed by City in writing.

Net Payment of undisputed invoices is due and payable Net Thirty (30) days of City' receipt of a complete and accurate invoice, notwithstanding anything that may be printed on such invoice. If City dispute or contest all or any part of any invoice, City shall request a replacement invoice stating only the undisputed amount, and shall promptly pay any undisputed amount and shall withhold payment of any disputed amount, without waiving any of its claims or defenses to payment of the disputed amount. If Consultant issues a replacement invoice for any undisputed amount, the Parties agree that submission by Consultant of a replacement invoice does not constitute a waiver of Consultant's rights with regard to the disputed amount.

If this Agreement is terminated pursuant to Section 8, Consultant shall submit a final invoice to City and shall be paid for services completed and reasonable reimbursable expenses incurred through the effective date of termination.

SECTION 7: TIME OF BEGINNING AND SCHEDULE FOR COMPLETION Consultant shall begin work upon its receipt of a written Notice to Proceed. The Notice to Proceed shall not be issued until after this Agreement has been approved and authorized by the City.

The schedule for completion of the work shall be as shown upon the Annual Work Plan. In the event that material changes are ordered, the schedule for completion as stated in the Annual Work Plan will be adjusted by City so as to allow Consultant a reasonable period of time within which to complete any additional work which may be required as a result of the ordered changes.

Neither party will be held responsible for delay or default caused by declared emergencies, natural disasters, or any other cause which is beyond the party's reasonable control. Consultant 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.

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The City reserves the right to obtain the item(s) covered by this contract from another source during any on-going suspension of service due to the circumstances outlined above.

Consultant acknowledges that it is necessary for Consultant to complete its work on or before the completion date set forth in the Annual Work Plan in order to allow the City to achieve its objectives for entering into this Agreement.

The parties therefore agree that time is of the essence in the performance of this Agreement.

SECTION 8: TERMINATION
The City may terminate the agreement for convenience by providing written notice to the other party not less than 30 calendar days prior to an effective termination date.

Consultant may terminate the agreement for material breach of agreement by providing written notice to the other party not less than 14 calendar days prior to an effective termination date, provided that the terminating party will not terminate this Agreement for cause if the other party cures the breach within the notice period.

Upon notice of termination, the Consultant will immediately take action not to incur any additional obligations, costs or expenses, except as may be reasonably necessary to terminate its activities. The City’s only obligation to the Consultant will be just and equitable payment for services authorized by, and received to the reasonable satisfaction of, the City up to and including the effective date of termination. 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 termination due to a material breach by Consultant, City reserves the right to obtain Program services elsewhere, and the defaulting Consultant will be liable for the difference between the prices set forth in the terminated agreement and the actual cost to the City. In no event will the City be liable for any loss of profits on the resulting agreement or portion thereof so terminated. After the effective date of termination, Consultant will have no further claims against the City under the agreement. Termination of the agreement pursuant to this paragraph may not relieve the Consultant of any liability to City for damages sustained by City because of any breach of agreement by Consultant, and City may withhold any payments to Consultant for the purpose of set-off until such time as the exact amount of damages due City from Consultant is determined The rights and remedies provided in this section will not be exclusive and are in addition to any other rights and remedies provided by law or under the agreement.

SECTION 9: INSURANCE
Prior to the beginning of and throughout the duration of the agreement, the Consultant will maintain insurance in conformance with the requirements set forth below. The Consultant 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 and the results of that work by the Consultant, his agents, representatives, employees or subcontractors.

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, and volunteers as additional insured on the CGL policy.

MINIMUM SCOPE AND LIMITS OF INSURANCE

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The Consultant acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. The City will be entitled to coverage for the highest limits maintained by the Consultant. Coverage will be at least as broad as:
• PROFESSIONAL LIABILITY (ERRORS AND OMISSIONS): $2,000,000 PER OCCURRENCE OR CLAIM, $2,000,000 AGGREGATE.

The Consultant will maintain insurance appropriate to the Consultant’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 years after date of completion of the agreement work. If the Consultant is unwilling or unable to maintain the coverage for this period of time, Consultant agrees to purchase an extended period coverage for a minimum of five years after completion of agreement work. • COMMERCIAL GENERAL LIABILITY (CGL): $1,000,000 (Including products and completed operations) Proof of coverage for $1 Million per occurrence for bodily injury, personal injury and property damage will be provided on Insurance Services Office (ISO) Form CG 00 01 12 07 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 twice the required occurrence limit. • AUTOMOBILE LIABILITY: $1,000,000
Proof of coverage for $1 Million will be 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. Must include a waiver of subrogation.

OTHER INSURANCE PROVISIONS
The insurance policies are to contain, or be endorsed to contain, the following provisions:
• ADDITIONAL INSURED STATUS
The City, its officers, officials, employees, and volunteers are to be covered as an additional insured on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Consultant 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 the Consultant’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 and CG 20 37 (if a later edition is used).
• PRIMARY COVERAGE
For any claims related to this agreement, the Consultant’s insurance coverage will be primary insurance as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers will be excess of the Consultant’s insurance and will not contribute with it.
• NOTICE OF CANCELLATION
Each insurance policy required above will provide that the City will be notified of any coverage canceled with 30 days’ prior written notice (10 days for non-payment). • WAIVER OF SUBROGATION
Consultant hereby grants to the City a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance.

Consultant agrees to obtain any endorsement that may be necessary to effect 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.

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The Worker’s Compensation policy will be endorsed with a waiver of subrogation in favor of the City for all work performed by the Consultant, its employees, agents and subcontractors. • DEDUCTIBLES AND SELF-INSURED RETENTIONS
Any deductibles or self-insured retentions must be declared to and approved by the 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:

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 Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of contract work. • VERIFICATION OF COVERAGE
Consultant will furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning will not waive the Consultant’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. Consultant will provide complete certified copies that redact proprietary and confidential information not required to confirm Consultant is satisfying their insurance obligations.
• SUBCONTRACTORS
Consultant 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.

• 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 Consultant SECTION 10: INDEMNIFICATION
Consultant 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 Consultant, Consultant’s officers, employees, agents, or subcontractors in any way related to this Agreement. Consultant’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 misconduct of Indemnitees, as determined by an adjudicatory body or court of competent jurisdiction, as applicable. The obligation to defend shall arise regardless of any claim or assertion that Indemnitees caused or contributed to the Losses.

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In the event this Agreement involves the performance of design professional services by Consultant, Consultant’s officers, employees, agents, or subcontractors, Consultant’s costs to defend Indemnitees shall not exceed the Consultant’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
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 Consultant to comply with all applicable Federal and State and local equal employment opportunity laws and regulations, and Consultant is responsible for ensuring that effective policies and procedures concerning the prevention of abusive conduct, discrimination, harassment, and retaliation exist in Consultant’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 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 Consultant and the City.

SECTION 13: ASSIGNMENT
This Agreement shall not be assigned without first obtaining the express written consent of the Director or after approval of the City Council.

SECTION 14: 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 Consultant. Consultant acknowledges that no such amendment shall be effective until approved and authorized by the Director. 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 Director. Unless expressly authorized by the Director, Consultant’s compensation shall be limited to that set forth in Exhibit B, Fee Schedule.

SECTION 15: MISCELLANEOUS PROVISIONS

1. Project Manager. Director reserves the right to approve the project manager assigned by Consultant to said work.

No change in assignment may occur without prior written approval of the City.

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

3. Subcontractors. Subcontracting of work without prior approval of the City, may result in contract termination.

If at any time, the City determines any subcontractor is incompetent or undesirable, Consultant will be notified and will be expected to immediately cancel the subcontract.

4. Licensure. Consultant warrants that Consultant, 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:
• Consultant is located in the City of Santa Cruz;
• Will perform physical 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 or call the Revenue and Taxation division at 831/420-5070.

5. Other Agreements. This Agreement supersedes any and all other agreements, either oral or in writing, between the parties with respect to the Scope of Work specified in Exhibit A.

6. City Property. The work, or any portion, of Consultant in performing this Agreement shall become the property of City. The Consultant 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, Consultant 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 Consultant 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 Consultant on other projects or disclosed to any third party, except by agreement in writing by the City, or except as otherwise provided herein. Consultant’s final deliverables shall comply with Section 508 (29 U.S.C.

Section 794d) accessibility requirements, as applicable.

7. Consultant's Records. Consultant 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 Consultant's services, unless otherwise stated herein. If Consultant 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.

8. Independent Contractor. In the performance of this Agreement, it is expressly understood that Consultant, including each of Consultant’s employees, agents, subcontractors or others under Consultant’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. Consultant 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 Consultant’s supervision or control was misclassified.

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

10. Conflicts of Interest. Consultant owes City a duty to avoid conflicts of interest in performing the work and services under this Agreement. Consultant covenants (on behalf of Consultant and Consultant’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. Consultant 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. Consultant will immediately advise City if Consultant learns of a conflicting financial interest of Consultant during the term of this Agreement.

11. 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.

12. Storm Water Requirements. The Contractor, and all subcontractors, 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/publicworks/stormwater/best-management-practices.

13. 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 of Santa Cruz
Water Department
Rosemary Menard, Water Director
212 Locust St, Suite A
Santa Cruz, CA 95060
To CONSULTANT:

HDR Engineering Inc.

Holly L. Kennedy, Senior Vice President
100 Pringle Ave, Suite 400
Walnut Creek, CA 94596
Changes to the above information shall be given to the other party in writing ten (10) business days before the change is effective.

14. Prevailing Wage.
. 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., Consultant (and any subconsultant performing the work or services) shall conform to any and all prevailing wage requirements applicable to such work/and or services under this Agreement. Consultant (and any subconsultant) 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 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.)

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a. To the extent applicable to the scope of work and services under this Agreement, Consultant agrees to be bound by the state prevailing wage requirements, including, but not limited to, the following:
b. If a worker is paid less than the applicable prevailing wage rate owed for a calendar day (or any portion thereof), Consultant 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;
c. Consultant shall maintain and make available payroll and worker records in accordance with Labor Code sections 1776 and 1812;
d. If Consultant employs (and/or is legally required to employ) apprentices in performing the work and/or services under this Agreement, Consultant shall ensure compliance with Labor Code section 1777.5;
e. Consultant 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;
f. Consultant shall post a copy of the applicable wage rates at each jobsite at a location readily available to its workers.
g. Any failure of Consultant and/or its subconsultant 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 Consultant.

Consultant on behalf of itself and any subconsultant, 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 Consultant and any subconsultant to pay prevailing wages or to otherwise comply with the requirements of prevailing wage law relating to a public work. h. Consultant acknowledges that it and/or any subconsultant 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)].

15. Intellectual Property and Indemnity.

Consultant represents to City that, to the best of Consultant’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.

To the fullest extent permitted by law, Consultant 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 Consultant’s performance under this Agreement or to the City’s authorized intended or actual use of Consultant’s product or service under this Agreement. This provision shall survive termination or expiration of this Agreement.

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If any product or service becomes, or in the Consultant’s opinion is likely to become, the subject of a claim of infringement, the Consultant 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 Consultant’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 Consultant. 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.

16. Confidentiality.

a. Consultant shall not acquire any ownership interest in data and information (“City Data”) received by Consultant from City, which shall remain the property of the City. Certain information may be considered confidential (“Confidential Information”). Confidential Information shall mean all non-public information or proprietary materials (in every form and media) disclosed or made available directly or indirectly through any means of communication, either verbally or in writing, to Consultant in connection with this Agreement. Unless otherwise required by law, Consultant 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 Consultant and City, all City Confidential Information shall remain the property of the City. Consultant shall not acquire ownership interest in the City’s Confidential Information.

b. Consultant 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. Consultant 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 Consultant’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, Consultant 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 Consultant’s sole expense.

Consultant shall not charge City for any expenses associated with Consultant’s compliance with these obligations.

d. Consultant 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 Information by Consultant 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.

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17. California Public Records Act. City is a public agency subject to the disclosure requirements of the California Public Records Act (“CPRA”). If Consultant’s proprietary information is contained in documents or information submitted to City, and Consultant claims that such information falls within one or more CPRA exemptions, Consultant 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 Consultant prior to such disclosure. If Consultant 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 Consultant 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 Consultant. Consultant 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 Consultant.

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

19. 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, 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 sections 9204(e), 20104-20104.6, 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.

20. 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, there may be an equitable adjustment of the schedule and Consultant compensation based on City’s sole discretion.

21. 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.

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

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

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

25. 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.

26. 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.

27. 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]

36.24 City of Santa Cruz Professional Services Agreement for PROGRAM MANAGEMENT

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Approved As To Form:

By: _____________________________ Date: __________________ City Attorney

CONSULTANT
By: _____________________________ Date: __________________ Printed: _________________________ Title: _________________________ Technical Review:

By: _____________________________ Date: __________________ Heidi Luckenbach, P.E.

Deputy Water Director/Engineering Manager

CITY OF SANTA CRUZ WATER DEPARTMENT
By: _____________________________ Date: __________________ Rosemary Menard,
Water Director

CITY OF SANTA CRUZ
By: _____________________________ Date: __________________ Matt Huffaker,
City Manager
June 14, 2022

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EXHIBIT A: SCOPE OF WORK

MASTER SERVICES AGREEMENT-SCOPE OF WORK
Revised June, 2022
This Master Services Agreement (MSA) Scope of Work outlines the tasks that the City anticipates having the Consultant complete over the course of the Program. Individual Service Orders (SOs) under this MSA will be issued by the City to authorize the Consultant to complete specific services. Those SOs will contain detailed scope of work language and specific compensation amounts.

36.26 Exhibit A
Scope of Work
Master Services Agreement (MSA) for
Program Management Services
City of Santa Cruz Water Department
Introduction
The City of Santa Cruz Water Department (City) is taking a program management approach to implementing its capital improvement program (Program). It has contracted HDR, under a Master Services Agreement (MSA), to provide program management services. This MSA Scope of Work outlines the tasks that the City anticipates having HDR complete over the course of the Program. Individual Service Orders (SOs) under this MSA will be issued by the City to authorize HDR to complete specific services. Those SOs will contain detailed scope of work language and specific compensation amounts.

This Scope of Services is organized under the following major areas:

1. Program Mobilization

2. Design Management

3. Program Administration

4. Planning and Preliminary Engineering

5. Construction Management

6. Program Support Services
Task 1—Program Mobilization
Program mobilization involves tasks to establish the primary elements of program management, including a fully functioning program management office (PMO) and team, consisting of a blend of City and HDR staff. During program mobilization HDR will work with the City’s Program Director to establish a fully functioning PMO.

Task 1.1—Assess Current City Project Delivery Systems: Assess the current status of all City project delivery systems, including project management, asset management, financial and cost accounting, and document management.

Task 1.2—Develop the Program Charter: Define the overall goals and objectives of the Program.

Task 1.3—Assess Resource Needs and Develop Program Organizational Structure:

Resource load the program schedule and estimate the technical, operational, and support staff needs over the next five years. Create a Program delivery organizational chart, showing the blending of City and HDR staff. Create a Workforce Development Strategy document to define methods the program will develop City staff capabilities over the course of the program.

Task 1.4—Develop the Program Management Plan (PMP), Policies and Procedures: The PMP will contain all the policies and procedures to be used on the Program. HDR would

36.27 Santa Cruz Program Management – Master Service Agreement 6-1-2022

establish initial document templates, file management strategies, and related document management protocols. Create a document management system that integrates with and complements the City’s existing system. Develop and implement a Project Delivery Model (PDM) that will be applied to every project on the Program. Develop a Health, Safety & Security Plan for the program. Facilitate and develop an internal governance structure including reporting responsibilities, delegations of authority, roles and responsibilities for the City. The PMP will be web-based and regularly reviewed and updated to reflect the evolving status of the work.

Task 1.5—Develop the Risk Management Plan: Develop a plan that captures the overall approach to risk management on the program. Identify the potential risks to completing the projects within the program, along with the probability each risk would occur and its potential impact on the project. Identify mitigation measures to reduce the chance of the risk event occurring, or reduce its impact if it does occur. Compile these results in a tabular Program Risk Register.

Task 1.6—Develop the Quality Assurance/Quality Control (QA/QC) Plan: The QA/QC plan will identify QC processes to be used during all phases of the program, and the QA processes to verify that they’ve been done.

Task 1.7—Develop the Program Controls System: Program controls involves monitoring and reporting on the Program’s cost, schedule, and progress. HDR will establish the IT system needed to support those activities. Issue a monthly Program Status Report.

Establish project invoicing requirements and draft billing templates to be used with providers of design services.

Task 1.8—Project Validation: Summarize past and on-going studies and designs. Review and prepare a validation of capital projects. Prepare a preliminary baseline program schedule and cost estimate. Consider and recommend project delivery methods for each project, such as Design-Bid-Build, Design-Build, or Construction Management at Risk (CMAR).

Task 1.9—Manage the Program Mobilization Activities: Provide a weekly report on mobilization progress. Provide training to all staff on items implemented during Program Mobilization.

Task 2—Design Management
The Program Management Team will coordinate and manage study and design activities for all City work packages. HDR will be responsible for the following and will submit for approval by the City.

Task 2.1—Prepare Design Management Guidelines and Standard Contracts: Review the City’s current design standards and criteria and develop modifications to ensure consistency and compliance with industry and City standards. Work with City staff to develop a standard professional services agreement for the City that meets City code, policies, and procedures. Work with City staff to develop Standard General Conditions and Supplementary Conditions for the City.

36.28 Santa Cruz Program Management – Master Service Agreement 6-1-2022

Task 2.2—Select Final Design Consultants: In alignment with City procurement policies and procedures, assist the City in selecting design consultants by doing the following:

1. Establish the selection process to be used for final designers.

2. Prepare requestsfor qualifications/proposals.

3. Conduct outreach to the design consultant community to generate interest in the program.

4. Assist in evaluating designer SOQs/proposals and making selections.

5. Assist in negotiating professional services agreements with selected designers.

Task 2.3—Monitor Design Progress and Changes: Provide Design Managers and project engineers to supplement City staff, as needed. Monitor design progress, coordinate resolution of design changes, and report monthly on the status of design efforts. Facilitate project progression through the Project Delivery Model, including presenting results at review meetings. Obtain input from the City's engineering and operations staff on facility design elements, and ensure that this input is appropriately incorporated into facility designs. Solicit and coordinate local participation, as needed, in design and architectural choices for City facilities with approvals from City management.

Task 2.4—Review Plans and Specifications: Review and comment on all designerproduced documents, including technical memoranda, reports, plans, and specifications.

Provide operations review both through facilitating input from City staff and independent operations review. Manage the geotechnical and survey protocols and standards, documents, and independent geotechnical design and construction review and input.

Maintain a system of geotechnical data and reports for the program.

Task 2.5—Conduct Project Certification Process: Lead the project through the “project certification process” to confirm completeness of design and other activities (e.g., permitting, right-of-way acquisition) prior to bidding.

Task 2.6—Facilitate the Bidding Process: Support the bidding process by doing the following:

1. Manage and coordinate the contractor pre-qualifications process.

2. Coordinate the assembly of construction bid packages with designers and City staff.

3. Prepare for and participate in pre-bid or pre-proposal conferences.

4. Facilitate review of bids and formal recommendations of award.

5. Oversee the addenda development process.

6. Evaluate construction bids for completeness, develop bid tabulations, and consult with the design engineers and City staff to recommend award of each contract.

7. Work with City to execute construction contracts and obtain all bonds and insurance documents.

36.29 Santa Cruz Program Management – Master Service Agreement 6-1-2022

Task 2.7—Conduct Value Engineering (VE): Convene and manage value engineering (VE) reviews, operability and constructability reviews, and workshops.

Task 3—Program Administration
Program structures, policies, procedures, and systems developed during Program Mobilization will be implemented over the course of the program management services contract.

Task 3.1—General Program Management: General program management activities include:

1. Support the City with management of all aspects of Program implementation.

2. Update program workflow policies and procedures as needed.

3. Manage program resources and ensure necessary technical, management and support resources are available to meet the goals and objectives of the City.

4. Participate in City leadership, City Council, Water Commission, and other meetings as requested.

5. Conduct regular program review meetings and monthly progress meetings with the Program Director.

6. Work with the Program Director to develop and update the overall program management organization chart and related roles and responsibilities.

7. Work with the Program Director to provide inter-agency coordination with various city agencies and regional entities.

8. Work with the Program Director, City legal counsel, , and other key staff to facilitate completion of various intergovernmental agreementsfor projects.

9. Provide graphics support, including preparing presentations and mounted graphics.

Task 3.2—Risk Management: Implement the risk management plan developed during mobilization, including:

1. Assess, document and present major potential risks with an estimated cost or schedule impact, a probability of occurrence, and proposed mitigation actions.

Monitor implementation of the mitigation actions.

2. Develop and administer project-specific constructability and construction claims analysis for projects at various stages of design and construction.

Task 3.3—Document Management: Maintain the document management system created during mobilization. Train City, HDR, and contractor staff on how to access, utilize and administer the system.

Task 3.4—Procurement and Contract Administration: Assist City with the procurement and contracting of miscellaneous contracts to support studies, feasibility analyses, preliminary engineering, permitting, and environmental review. (Note that procurement

36.30 Santa Cruz Program Management – Master Service Agreement 6-1-2022

of design consultants and construction contractors is specifically addressed in the “Design Management” task below.) Assist the City to develop and implement an overall procurement strategy for the Program that is aligned and in compliance with city code, policies, and procedures. Maintain a procurement tracking database.

Task 3.5—Health, Safety and Security: Implement the health, safety and security plan developed during mobilization.

Task 3.6—Quality Assurance: Provide a Quality Assurance Manager that will implement the Quality Assurance/Quality Control Plan created during mobilization, and audit compliance with the plan throughout the implementation of the program.

Task 3.7—Project Delivery Model (PDM) Implementation: Implement the PDM created during mobilization by applying it to every project on the Program.

Task 3.8—Program Controls: Implement, maintain and update all program controls items created during mobilization. These items will include:

1. Program cost estimate and cash flow estimate

2. Program schedule

3. Decision log

4. Program Change Notice process to review and approve design, procurement, construction and start-up changes having a major impact on cost and schedule

5. An Annual Work Plan to provide City staff with information needed for the City’s annual budgeting cycle, including cost and schedule updates for the program as a whole

6. Program contingency, including drawdown curve forecasts, risk forecasts and trends indicating usage

7. Program Work Breakdown Structure (WBS)

8. Monthly Program Reportsummarizing the results across the Program Task 3.9—Workforce Development: Implement the Workforce Development Strategy developed during mobilization. Support the Water Department’s workforce development efforts by providing direct training on project management to City staff through day-today interactions with the Program Management team, noon-time seminars, workshop debriefs, and project management tool development and implementation.

Task 4—Planning and Preliminary Engineering
HDR will prepare planning and preliminary engineering documents needed to progress the various components of the Program. In some cases, the City may direct HDR to help procure outside consultants for larger efforts. Examples of HDR’s initial efforts are defined below. Other planning and preliminary engineering efforts will be identified as CIP projects are implemented.

36.31 Santa Cruz Program Management – Master Service Agreement 6-1-2022

Task 4.1—Planning Efforts: Prepare planning studies and analyses to support the development of the Program. Initial planning efforts will include:

1. Supplemental Water Supply Planning: Integrate the water supply augmentation strategy decision in 2020 as outlined in the Water Supply Advisory Committee Report (2015) into the Program as needed.

2. Treatment Plant (GHWTP) Facilities Plan Update: Draw on past and on-going studies to prepare an update of plans for upgrading the GHWTP, and defining a long-term surface water treatment strategy. Perform a condition assessment of the GHWTP facilities.

3. Raw Water Supply Diversion and Pipeline Rehabilitation/Replacement Prioritization: Prepare a single prioritization of all raw water diversion and pipeline projects, including the remaining portions of the North Coast System, Newell Creek Pipeline, and the Coast Pump Station Pipeline.

4. Source Water Evaluation: Review the results of studies being done by other consultants, and incorporate into program decision processes.

Task 4.2—Preliminary Engineering Efforts: As requested by the City, HDR will prepare preliminary engineering documents prior to hiring outside consultants for final design, or hiring design-build firms, if that delivery method is selected.

Task 4.3—Asset Management: Assist the City in developing an overall asset management strategy for its water facilities. Implement components of that strategy, as directed by the City.

Task 5—Construction Management
HDR will provide construction management (CM) services for individual projects on the Program, as directed by the City. Those CM services will include, but not be limited to, the following tasks.

Task 5.1 – Preconstruction Services: Prior to construction, HDR will provide the following services:

1. Develop an overall Construction Management Strategy and implement throughout the program

2. Establish Construction Management Guidelinesfor projects in the Program

3. Develop O&M documentation standards and project turnover criteria

4. Provide constructability reviews of contract packages prior to bidding

5. Prepare a Construction Management Plan for each project

6. Prepare QA Inspection Plan for each project

7. Initiate and lead pre-construction meetings

36.32 Santa Cruz Program Management – Master Service Agreement 6-1-2022

Task 5.2—Construction Phase Services: During construction, HDR will provide the following services:

1. Provide construction management staff including construction managers and inspectors

2. Document project area pre-existing conditions

3. Implement QA Inspection Plan and prepare daily inspection reports

4. Establish and maintain construction field offices, if needed

5. Administer other consultant contracts related to construction management

6. Coordinate environmental and cultural monitoring and inspections

7. Review construction contractors’ schedules

8. Identify and track changes to the work including City approval for all project changes

9. Actively seek early identification of potential claims for every project and advise City for potential of settlement or litigation

10. Hold and/or attend on-site construction meetings

11. Process and facilitate review and approval of material Submittals between Contractor and Design Consultants

12. Coordinate tie-ins and shutdowns with City operationsstaff

13. Review and monitor Requestsfor Information (RFIs) and change orders

14. Provide construction status updates (including cost, schedule, and progress)

15. Work with City staff to coordinate with regulatory agencies

16. Maintain a working set of “as-built” record drawings

17. Provide or coordinate special inspections and material testing as required

18. Confirm that all project records, including final “as-built” record drawings, are properly stored in the program management information system Task 5.3—Facility Testing and Commissioning: At the end of construction, HDR will provide the following services:

1. Lead start-up, facility testing and commissioning work

2. Coordinate operator training/vendor training
Task 5.4—Project Closeout and Transfer of Operations: At the end of the project, HDR will provide the following services:

1. Verify CM records, including record drawings

2. Coordinate information transfer to the City’s computerized maintenance management system (CMMS)

36.33 Santa Cruz Program Management – Master Service Agreement 6-1-2022

3. Prepare a summary report for each project addressing work accomplished, operations and maintenance documentation, recommendationsfor changes to standard operating procedures and changes to staffing to optimize or preserve the integrity of the assets for the long term

4. Complete project close-out work
Task 6—Program Support Services
There are a number of functionsthat support the successful execution of the Program.

Task 6.1—CEQA and Environmental Permitting: Each project on the Program will require some form of CEQA clearance, and some projects will require environmental permits and/or environmental studies. HDR will:

1. Prepare a “CEQA and Environmental Permitting Strategy,” further outlining the Program’s approach

2. Create and populate an Environmental Permit Tracking database to track the status of all environmental permits

3. Prepare CEQA documents, environmental studies, and environmental permits as requested by the City

4. Support the City in communications with, and reporting to, major permitting entities

5. During construction, document CEQA and environmental permit compliance on the Program
Task 6.2—Right-of-Way and Property Acquisition: Various Program projects will require permits-to-enter (for planning and design work) and/or rights-of-way and property purchase (for construction and permanent facilities). HDR will be responsible for:

1. Research and investigation into existing easements and property boundaries

2. Compiling record information

3. Preparing plats and legal descriptions

4. Negotiating temporary and permanent easements

5. Coordinating ROW and property acquisitions with City staff

6. Obtaining Appraisals as Required

7. Interfacing with land, facility, or property managers, real-estate agents, brokers, and title companies
Task 6.3—Communications and Public Outreach: HDR will provide a supporting role in communications and public outreach on the Program, in consultation with City staff and management. Efforts will include:

1. Create a plan outlining the Program’s communications and public outreach efforts, including communications guidelines for staff

36.34 Santa Cruz Program Management – Master Service Agreement 6-1-2022

2. Prepare a reporting matrix for all issued reports by name and frequency.

3. Train all staff on the communications guidelines

4. Facilitate communications if an incident occurs on the Program

5. Support the Program Director by preparing memos, PowerPoint presentations, graphics, and other support materials for use in external communications

6. Prepare materials describing the Program’s progress for City staff to post to the City’s public website

7. Prepare public information documents (e.g., fliers, brochures, posters, FAQs) for use at public meetings/workshops, and participate in those meetings if requested

8. Create and populate a stakeholder database with communicationssummaries.

Task 6.4—Surveying: Provide land surveying services as needed to support the Program, including staking of property and easement boundaries during right-of-way acquisition.

Task 6.5—Geotechnical Exploration: Provide geotechnical exploration services, including obtaining and analyzing soil boring samples, as needed to support the Program.

Task 6.6—Project Funding Assistance: Participate in departmental financial analysis and planning efforts. Work to assist the department in applying for grants and low income loans. Participate in developing materials to support debt financing, including credit rating agency briefings.

Task 6.7—Program Technical Support: Outside of specific technical reviews on projects, HDR will provide technical expert input on water infrastructure, treatment and water quality issues, as requested by the City.

36.35 City of Santa Cruz Professional Services Agreement for PROGRAM MANAGEMENT

SERVICES FOR THE CITY OF SANTA CRUZ WATER DEPARTMENT
June 2022 Page 19
EXHIBIT B: FEE SCHEDULE
Fee Estimates/Cost Proposals will be developed for specific Service Orders and executed as contract amendments.

Basis of Compensation:

1. Labor: The hourly charge for all onsite staff will consist of the employee’s direct hourly rate multiplied by a factor of 2.78. The hourly charge for all offsite staff will consist of the employee’s direct hourly rate multiplied by a factor of 3.13.

2. Associated Project Cost: The associated project costs (APC) applies only for those staff supporting the program, working from their home office (offsite staff). The APC shall be the sum of the number of hours worked by these employees multiplied by a factor of $5.25 per hour. The APC shall not apply to full time onsite staff (staff mobilized to the PMO, defined as staff spending more than 30 hours per week (on average) in or at a City facility for more than 6 months). The APC is not applicable to any Construction Management Staff hours.

3. These factors, multiplier and APC, shall be effective through December 31, 2019. These factors may be negotiated by the Consultant and the City, provided Consultant submits written notice to the City of Consultants request for revisions thirty calendar days prior to the requested changes.

4. Other Direct Costs, including travel, special equipment, outside printing, sub-consultant charges, and other direct costs (as approved), will be billed at cost plus five percent (5%).

36.36 City of Santa Cruz Professional Services Agreement for PROGRAM MANAGEMENT

SERVICES FOR THE CITY OF SANTA CRUZ WATER DEPARTMENT
June 2022 Page 20
EXHIBIT C: WORK SCHEDULE
This Master Service Agreement has been developed to support the Department’s implementation the Capital Improvement Program from 2017-2027. The initial term of the contract will be five years with an option to renew for an additional five years at the City’s sole discretion.

Schedules will be developed for each annual Service Order. Those service order specific schedules will then be integrated with the master program schedule and annual work plan schedules.

36.37 6/01/2022 Fiscal Year 2021 Annual Work Plan 1 of 18 Fiscal Year 2023-Annual Work Plan
Santa Cruz Water Program
Introduction
The City of Santa Cruz’s Water Department is implementing the Santa Cruz Water Program (Program) to address a number of critical needs for backbone infrastructure rehabilitation or replacement and to develop supplemental supply that would improve the reliability of the Santa Cruz water system. In the fall of 2017, the Water Department selected HDR to provide program management services to support implementation of the Program, and in December 2017, The City Council approved a five-year Master Services Agreement that is the basis for developing specific task or service orders. This Annual Work Plan (AWP) summarizes Service Order 8 and covers HDR’s anticipated program management activities, staffing, schedule, and fees in fiscal year 2023 (FY 2023), which covers the period of July 1, 2022 to June 30, 2023.

Overview of Work Performed during FY 2022
Over the past fiscal year, the Program team of city and HDR staff engaged in Program implementation in the areas of design and planning project management, program administration and controls, planning and preliminary engineering, design, construction management, and other program support areas such as environmental and right of way services.

Table 1 summarizes the Program wide, and project level activities for fiscal year 2022.

Table 1 – Project Work Completed (Fiscal Year 2022)
No. Projects Phase Key Work Completed

1.1 Laguna Creek Diversion Retrofit Construction  Contractor site mobilization  Obtained permit extension to complete in-creek
construction work
 Substantial completion of construction; Notice of
completion planned for June 2022.
 Initiated environmental mitigation activities

1.3.1 Tait Diversion Rehab / Replacement
Project
Planning  Fish Screening Alternatives Analysis Report
 Completed annual condition inspection confirming no
emergency improvements required
 Initiated salinity study

1.4 Felton Diversion and Pump Station Planning  Project Initiation  Condition assessment of the Pump Station

1.5 Newell Creek Dam Inlet/Outlet
Replacement Project
Construction  West Region Award of Merit granted to City for NCDIO project by the Association of State Dam Safety Officials  Tunnel excavation
 In-reservoir construction of upper inlet
 Drilling and grouting of the vertical shafts of upper, middle, and lower inlets.
 Completed pile driving in the reservoir

2.1 North Coast System Repair and
Replacement
Planning  Peer review of cost estimate
 Completed preliminary planning phase and delivery
method selection

36.38 6/01/2022 Fiscal Year 2021 Annual Work Plan 2 of 18 No. Projects Phase Key Work Completed

2.2 Newell Creek Pipeline Rehab/
Replacement
Planning,
Environmental
Permitting
 Finalized Traffic Management Plan
 Released Draft and Final EIR
 EIR public engagement

2.2.1 Newell Creek Pipeline -
Felton/Graham Hill
Design  Basis of Design Report and 30%, design, cost estimate  Risk quantification workshop and risk quantification
model report
 60%, 90% design submittals and cost estimates
 Constructability reviews
 Hydraulic analyses
 Initiation of Right of Way and property acquisition

2.2.3 Brackney Landslide Area Pipeline
Risk Reduction
Design  Potholing, geotechnical explorations, and survey  Basis of Design Report and 30% Design
 60%, 90% design submittals and cost estimates
 Constructability reviews
 Final survey base maps
 Initiation of Right of Way and property acquisition

2.3 Coast Pump Station Raw Water
Pipeline Replacement
Post-Construction  Milestone meeting for construction completion and project close out
 Regulatory consensus achieved on environmental
mitigation

3.1 Water Supply Augmentation Planning  Water Rights Final EIR  Vulnerability Study for long term supply reliability
 Initiated second five-year pilot test period for water transfers/exchanges
 Initiate evaluation of existing Beltz water treatment plant in support of supply augmentation
 Review of climate change hydrologic model
 Contracting for Water Supply Augmentation
Implementation Plan report

3.3 ASR Planning Planning  ASR Pilot Cycle 3a completion (Beltz 8)  Planning, permitting, and initiation of demonstration testing at Beltz 8 and 12 wells
 Phase 1 of the groundwater modeling focused on
defining a feasible ASR project

4.3 Graham Hill WTP Concrete Tanks Construction  Soil nail wall installation  Partnering with the contractor
 Updated risk quantification model
 Assessment of waste discharge permit to accommodate
future treatment needs
 Demolish solids tank
 Completed first concrete pour for Solids Tank foundation

4.3.1 Graham Hill WTP Entrance Gate
Improvements
Design  PG&E Approval for relocation of utility pole at the plant entrance
 Installed entrance gate

36.39 6/01/2022 Fiscal Year 2021 Annual Work Plan 3 of 18 No. Projects Phase Key Work Completed

4.4 Graham Hill WTP Upgrades (Facility
Improvement Plan)
Design  Finalized Progressive Design Build contract
 Issued Design NTP
 Conducted site tours at other treatment plants to
support pretreatment process selection
 Conduct team Partnering workshop with DB team
 Finalized pretreatment process selection
 Initiated preliminary design, including multiple project workshops
 Conducted Envision® (sustainability rating) process
approach review

4.7 Beltz 12 Well Ammonia Treatment Design  Beltz 12 Ammonia control memo  Design project initiation
 Completed 50% design

5.2 Meter Replacement Procurement  Procurement for meter equipment, installation services, and consulting project management support
 Issued Construction NTP
 Completed controlled launch and initiated full
implementation

6.1 University Tank No. 4 Rehab /
Replacement
Planning  Pipeline Condition Assessment
 Planning Study with alternatives analysis
 Issued RFP and award of design services
 Initiated design

6.2 University Tank No. 5 Replacement Post -Construction  Finalized project closeout Water Rights Amendments Planning  City Council certified the Water Rights EIR N/A Asset Management Planning  Cross-department evaluation of proposals for Computerized Maintenance Management System
(CMMS) software
 Finalized system selection for new CMMS in conjunction with Public Works and IT
N/A Distribution System Water Quality
Improvements Study
Planning  Workshop to review distribution system reliability goals  Initiation of study.

N/A Program Wide Items All / Ongoing  Risk Management: quarterly program risk reviews; risk quantification workshop and annual update to
risk quantification model
 Quality Management: quarterly reviews and reports
 Monthly Program reporting
 Updates to Program Management Plan
 Workforce development trainings including
SharePoint Tips and Tricks, Quality Management,
Virtual Meetings, Construction Schedule Reviewing,
Asset Management, Managing Virtual Teams, True
Colors, Decision Making Best Practices, and Business
Case Evaluation, Quality Report Cards.
 Maintained program progress while supporting Water
Department leadership transitions
 Program controls implementation: monthly schedule
updates and master format enhancement to add
project funding components, cost management system
updates with monthly reporting, document

36.40 6/01/2022 Fiscal Year 2021 Annual Work Plan 4 of 18 No. Projects Phase Key Work Completed
management, finance team support of fiscal year
budgeting and forecasting
 Implemented program schedule improvements to
improve consistency in environmental activities across
all projects and update the Environmental Section of
the Program Management Plan
 “Regulator Roadshow” meetings with agencies to
maintain collaborative communication on upcoming
projects and reviews
 Developed new employee training for environmental
planning
 Formal invitation to apply for a WIFIA (federal loan) for multiple projects
 Drafted Construction Management Procore System
Guide
 Review and update the Program Escalation Factor
 Document management implementation: ongoing
improvements to SharePoint and associated training of
City administrative staff
 Program and safety consultant management and
reporting
 Design Review (Bluebeam) software training
 Full implementation of O&M Liaison role to support
treatment projects and balance operations resource
limitations; bi-monthly check-ins to review and
confirm performance

36.41 6/01/2022 Fiscal Year 2021 Annual Work Plan 5 of 18 Photo 1: Laguna Dam Excavation Photo 2: Laguna Dam - Rebar cage installed for Coanda Intake Screen
Photo 3: Rewatered Laguna Creek and Dam Photo 4: Tait Diversion Fish Passage Alternatives

36.42 6/01/2022 Fiscal Year 2021 Annual Work Plan 6 of 18 Photo 5: Lowering of steel casing for middle intake shaft at Newell Creek Dam
Photo 5: Using crane to lower rebar cage into Newell Creek Dam embankment CISS Piles
Photo 6: Newell Creek Dam Inlet/Outlet – Concrete pour for invert in tunnel for working slab
Photo 7: Newell Creek Dam Inlet/Outlet Project – Probe
drilling prior to mandatory grouting

36.43 6/01/2022 Fiscal Year 2021 Annual Work Plan 7 of 18 Photo 8: Newell Creek Dam I/O Replacement Project –
Roadheader in tunnel near Sta 22+67
Photo 9: GHWTP Concrete Tanks soil nail wall rebar work Photo 10: Graham Hill WTP Concrete Tanks Replacement – Soil nail installation and existing tanks

36.44 6/01/2022 Fiscal Year 2021 Annual Work Plan 8 of 18 Photo 11: GHWTP Concrete Tanks Replacement Project -
Residual Tank: Concrete Pouring from Pump Truck adjacent to Plant clarifiers. Slab and Slab Footing N-S quadrant looking SE Photo 12: Residual Tank: Looking at slab footing rebar and seismic wall anchors
Photo 13: GHWTP Concrete Tanks Replacement – Soil nail wall at 3rd lift Photo 14: GHWTP Concrete Tanks Replacement Project –
Solids Tank Demolition
Photo 15: GHWTP Concrete Tanks Replacement Project –
Solids Tank Demolition

36.45 6/01/2022 Fiscal Year 2021 Annual Work Plan 9 of 18 Photo 16: New pedestrian path on outside of GHWTP entry gate
Photo 17: New right turn exit lane from GHWTP with final pavement
Photo 18: Entrance driveway with new island and final paving Photo 19: New entry gates in the closed position from the outside
Photo 20: GHWTP Facilities Improvement Project Team
Pretreatment Process Decision Celebration Lunch

36.46 6/01/2022 Fiscal Year 2021 Annual Work Plan 10 of 18 Photo 21: Felton Diversion Pump Station Assessment
Photo 22: North Coast System Preferred Alignment Photo 23: Zayante Creek Crossing Alternatives for the Newell Creek Pipeline Felton-Graham Hill Project

36.47 6/01/2022 Fiscal Year 2021 Annual Work Plan 11 of 18 Photo 24: U4 Tanks Structural Condition Assessment site photos
Photo 25: Ropes access used to inspect the pipes on a steep incline for U4 Tank pipes condition assessment

36.48 6/01/2022 Fiscal Year 2021 Annual Work Plan 12 of 18 Overview of Planned Work during FY 2023
During FY 2023, the Santa Cruz Water Program team of City and HDR staff will continue to implement the Program Management Plan, an organizational framework with processes for managing and staffing individual capital projects that are at different stages of development. During FY 2023, projects will continue to progress from planning into design and from design into construction and through the construction phase. Table 2 lists the Program projects starting or ongoing in FY 2023 and divides them into their particular phase(s) of work: Planning Projects, Projects in Design and Projects in Construction.

Table 2 –Program and Project Work Planned by Phasea (Fiscal Year 2023) Program Wide
 Risk management: quarterly reviews,
risk model update
 Technical expert support and
deliverable reviews
 Quality management implementation
 Design Review software
implementation – ongoing support
 Monthly Program reporting
 Program controls implementation:
schedule, cost, change management
 Document management
 Department finance support
 Program CM Oversight
 Program Environmental Advisory
 General electrical staff support
 Program O&M Liaison
 Workforce development trainings
 Asset Management (Asset
Onboarding and CMMS
Implementation support)
 Right of Way support
 Constructability reviews
Planning Projects Projects in Design Projects in Construction

1.3.1 - Tait Diversion Rehab/ Replacement

1.4 - Felton Diversion and Pump Station
Assessment

3.1 - Water Supply Augmentation

3.2 - Recycled Water Feasibility Study

3.3 - Aquifer Storage & Recovery Planning

7.1 - Water Rights (ongoing)

7.2 - Habitat Conservation Plans (ongoing)
N/A - Distribution System Water Quality
Improvements

3.3.1 - ASR Mid County Existing
Infrastructure

4.4 - Graham Hill WTP Facilities
Improvement Project

4.5 - River Bank Filtration Study

4.7 – Beltz 12 Well Ammonia Removal

6.1 - University Tank No. 4 Rehab /
Replacement

1.5 - Newell Creek Dam Inlet/Outlet
Replacement

2.2.1- Newell Creek Pipeline Rehab/
Replacement (Felton/Graham Hill)

2.2.3 - Brackney Landslide Area Pipeline
Risk Reduction

4.3 - Graham Hill WTP Concrete Tanks

4.7 – Beltz 12 Well Ammonia Removal

5.2 - Meter Replacement
a) Projects may be shown twice if they transition between phases, for example from design to construction.

This AWP includes a wide range of services focused on progressing each of the projects forward. Table 3 summarizes the types of services for each of the three categories of services that HDR will be providing during FY 2023as part of Service Order 8.

36.49 6/01/2022 Fiscal Year 2021 Annual Work Plan 13 of 18 Table 3 –Types of Services for each Project Phase (Fiscal Year 2022) HDR Planning Services HDR Design Management Services HDR Construction Services  Review and document existing
information and identify data gaps.
 Conduct planning level studies to
define technical feasibility and cost.
 Prepare reports, presentations, and
briefing materials to support
decision-making processes and
stage gate meeting approvals.
 Develop implementation and
sequencing plans and schedules for
recommendations.
 Facilitate planning meetings and
workshops for Water Department
Staff to discuss alternatives and
coordinate with stakeholders.
 Perform/support business case
evaluations and document
recommendations.
 Support Water Department Staff in
the update and calibration of
hydraulic models.
 Perform infrastructure condition
assessments to support planning.
 Assist the Department in financial
analysis associated with program
funding efforts
 Support the Department’s
implementation of asset
management system onboarding for
capital projects.
 Augment the city staff by providing
PMs, and project engineers for
various projects including: Tait
Diversion, Felton Diversion, Water
Supply Augmentation including ASR
and Recycled Water planning.
 Assist in reviewing of planning
consultant deliverables
 Provide environmental advisory
support, program-wide
 Provide Design Management lead.
 Provide general electrical
engineering and operations
specialist staff augmentation
support.
 Support PMs in management of
consultants and alignment with
program reporting and processes.
 Support implementation of design
management and cost estimating
guidelines.
 Augment the City staff by providing
PMs and/or project engineers for
various projects including: U4 Tank
Project, GHWTP Facility
Improvement Project, and Beltz 12
Ammonia Removal Project.
 Assist in hiring design consultants,
reviewing consultant deliverables,
conducting value engineering (VE)
efforts or cost estimating, as
requested.
 Support ROW acquisition activities
and obtaining permits-to-enter for
planning (North Coast System
Pipeline) and design (Newell Creek
Pipeline projects (Felton/Graham
Hill, Brackney)).
 Provide designated environmental
lead for permitting efforts
associated with: Newell Creek
Pipeline Rehab/Replacement.
 Provide environmental compliance
management services
 Assist with other environmental
technical support, including CEQA,
NEPA, technical study, field surveys,
or permit application.
 Support Department Staff in the
development and implementation
of communications and community
engagement plans.
 Provide technical expert input as
requested.
 Support ongoing implementation
and use of collaborative design
review software on projects.
 Provide Construction Management
lead.
 Implement Program Construction
Management Guidelines
 Implement Construction
Management software for new
construction projects.
 Augment the City staff by providing
PMs and/or project engineers for
construction phase projects including:

Newell Creek Dam Inlet/Outlet
Pipeline, Newell Creek Pipeline
Felton/Graham Hill, Brackney
Landslide Risk Reduction, Belt 12
Ammonia Removal, and Concrete
Tanks Replacement.
 Provide project manager, project
engineer, construction management
resident engineer, document
manager, lead and special
inspector(s), as required, for the
Newell Creek Dam Inlet/Outlet,
GHWTP Concrete Tanks project, and
Entrance Improvements project.
 Provide post construction start-up
commissioning and operations
support.
 Provide monthly Program reporting of
CM activities.
 Provide workforce development
training in areas of Construction
Management
 Assist with environmental mitigation,
monitoring and/or procurement of
such services.

Figure 30 shows the schedule of activities planned for each project, with work broken down into several phases:
planning, design, bidding, construction and project close out.

36.50 6/3/2022 FY 2021 Annual Work Plan 14 of 18
Figure 30: Santa Cruz Water Program Master Program Schedule

36.51 6/3/2022 FY 2023 Annual Work Plan 15 of 18
Staffing
The major resources being provided through the HDR Program Management Contract involve staffing services. These services are necessary because, on average, the Water Department’s annual capital program expenditures are rising nearly five-fold over spending levels during the last decade. The Water Department’s Engineering Section currently includes around 12 full time equivalent (FTE) positions supporting the capital program in various capacities, including one vacant Management Analyst position. The staffing analysis completed in 2018 during the Program Validation effort estimated total staffing needs required to manage and support the Program projects in peak years at 20 FTEs. Staff augmentation for project management (including project managers, engineers, environmental leads, but not including program administration or construction management, for example) is estimated at 7.0 FTEs for FY23.

The staffing augmentation plan for FY23 was developed to support the implementation plans and schedules for each Program project. The staffing plan integrates the Water Department’s available staff in Engineering and Operations and Maintenance and supplements resource needs with compatible HDR staff. A key focus of both City and HDR administrative and operating personnel who are part of the Program is the consistent and efficient delivery of project from planning through construction, while maintaining the Department’s ability to produce and deliver a reliable supply of high quality drinking water to its customers throughout project construction. Achieving this goal requires ongoing planning and coordination by all members of the team.

Part of the ongoing work on the Program to date has been to identify, integrate, and maintain HDR Program team members. Table 4 identifies HDR key staff in each of the three major Service Order 8 work areas.

Table 4 – Key HDR Staffing for Planned Program Management Services (Fiscal Year 2023) HDR Planning Services HDR Planning and Design
Management Services
HDR Construction Services
John Nelson
Brain Watanabe
Allison McReynolds
Allan Scott
Tom McCormack
MIke Munson
Augustine Inferrera
Jeremy English
Leslie Tice
Greg Bradshaw
Holly Burles
Lock Kwan
Phoenix Nguyen
Ed Woo
Brian Watanabe
Shane Clements
Jillian Brown
Ray Genato
Guy Voss
Jim Hestad
Mike Munson
Sifang Shan
Shelly Austin
Alan Hang
Uri Shelby
Augustine Inferrera
Kristine Shaw
James Prossick
Tong Wu
Ron Perkins
Roger Hatton
Jim Hestad
Shane Clements
Kelly Bartron
Jay Lloyd
Summer Pardo
Ongoing Program management and administration will be led by Karen Pappas (Program Manager), Molly Owens (Controls Manager), Cathy Westcot (Scheduling), John Buttz (Quality Management) and Sandie Goings (Document Management). Implementation of the Santa Cruz Water Program also involves a range of ongoing administrative and quality control services including, for example:
 Monthly progress reporting including cost and schedule tracking, risk management and quality assurance;  Document management and SharePoint site maintenance and updates; and

36.52 6/3/2022 FY 2023 Annual Work Plan 16 of 18
 Application and updates to the Program Management Plan, implementation of the program health and safety plan.

All personnel to support the Program are identified in writing and authorized by the City’s Program Director. The personnel and labor hours for the FY 2023 Work Plan represent the Program Team’s best understanding of the strategic, technical, and administrative requirements for delivering the planned services. Actual requirements may vary and the City and HDR will work together to adjust the staffing and distribution of labor hours within this AWP to maintain progress toward delivery of the Program.

0.0 5.0

10.0 15.0

20.0 25.0

30.0 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 HDR Program Administration
HDR Technical Advisory
HDR Staff Augmentation
City Engineering Staff
Santa Cruz Water Program Long Term Staffing Plan
FTEs
Note: Does not include CM staff

36.53 6/3/2022 FY 2023 Annual Work Plan 17 of 18
Fiscal Year 23 Project Components
Table 5 presents the work to be done on each project during the coming fiscal year. The associated fee estimate is under development.

Table 5 –FY Project Components
# Project
HDR FY2023
Service Order
Budget
Planning Design Bid Construction

1.1 Laguna Creek Diversion Retrofit $0 X

1.3.1 Tait Diversion Rehab / Retrofit $0 X

1.4 Felton Diversion and Pump Station Assessment $0 X

1.5 Newell Creek Dam Inlet-Outlet Pipeline
Replacement Project $151,878 X

2.1 North Coast System Repair / Replacement $0 X

2.2 Newell Creek Pipeline Planning $28,209 X

2.2.1 Newell Creek Pipeline Rehab/Replacement –
Felton / Graham Hill $339,412 X X

2.2.3 Newell Creek Pipeline – Brackney Landslide Area
Pipeline Risk Reduction $325,974 X X

3.1 Water Supply Augmentation a $369,437 X

3.2 Recycled Water Feasibility $0 X

3.3 Aquifer Storage & Recovery (ASR) $30,458 X

4.3 Graham Hill WTP Concrete Tanks Project $1,687,771 X

4.3.1 Graham Hill WTP Entrance Improvements $5,677 X

4.4 Graham Hill WTP Facility Improvements Project $820,969 X

4.4.1 Distribution System Water Quality
Improvements $71,923

4.5 Riverbank Filtration Study $0 X

4.7 Beltz 12 Well Ammonia Removal $265,366 X X X

6.1 University Tank No. 4 Rehab/Replacement $60,251 X
Intertie 1: Santa Cruz-Scotts Valley $138,608 X
Beltz Filter Plant $70,181 X
N/A Asset Management: On Boarding and
Computerized Maintenance Mgt. System
Implementation Support
$237,931 X
N/A Program Administration b $1,648,407 X X X X
N/A Other Program-Wide Work c $494,898 X X X X
Total HDR FY23 Service Order 8 Budget $6,747,350
a Includes planning support for all Water Supply Planning projects, including Recycled Water Feasibility (3.2), ASR Planning (3.3), and ASR Mid County Existing Infrastructure (3.3.1).
b Includes General Program Administration, Risk Management, Document Management, Procurement & Contract Administration Implementation support, SH&E Plan documentation, Quality Assurance Implementation, Project Delivery Model Implementation, Program Controls (Schedule, Cost Management, Program Monthly Report), Annual Work Plan, Workforce Development Trainings, Program staffing and resource management, Invoice preparation.
c Includes Staff Augmentation (Planning & Design Management, Project Management, Project Engineering support, Environmental Leads, Environmental Advisory, Electrical support, Operations support), Design Review Software Implementation, General Construction Management oversight, Construction Management information system procurement, and support for Right of Way, Communication & Public Outreach, Project Funding, and Program Technical (general).

36.54 6/3/2022 FY 2023 Annual Work Plan 18 of 18
Funding Source:

Funding for all activities planned as part of Service Order 8, including the program management fee, is included in the Water Department’s FY 2023 Capital Investment Program. Additional work planned for FY 2023 includes continuation of minimal activities pre-authorized and funded within the prior Service Order 7. As many of the projects included in Water Program are large and will occur over multiple years, the Department developed the 2021 Long Range Financial Plan to identify the steps needed to fund these investments in rehabilitating or replacing existing water system infrastructure and developing a supplemental supply to improve the reliability of the Santa Cruz water system. That plan was approved by the City Council on April 6, 2021 and is guiding the Department’s approach to planning for and funding this more than decade long capital reinvestment cycle.

Over the last year, the Water Department made progress towards executing two low-interest loans through the State Revolving Fund (SRF). The Department continues to also consider the Water Infrastructure Finance and Innovation Act (WIFIA) loans for projects. Both the State (SRF) and Federal (WIFIA) loan programs reimburse for design, construction, and program management costs-to implement a project. Finally, the City has secured FEMA Hazard Mitigation Program grant funding for one project (2.2.3), applied for WaterSmart grant funding for one project (5.2) and continues to seek grant opportunities for others.

36.55 City of Santa Cruz Amendment to Master Services Agreement for Program Management Services
June 2022 Page 1
AMENDMENT 2023-01 TO MASTER SERVICES AGREEMENT FOR

PROGRAM MANAGEMENT SERVICES FOR THE

CITY OF SANTA CRUZ WATER DEPARTMENT
THIS AMENDMENT No. 2023-01, dated ____________, (“Service Order No. 8”) TO THE MASTER SERVICES AGREEMENT dated ___________2022, is made by and between the City of Santa Cruz (“City”) and HDR Engineering, Inc. (“Consultant”).

RECITALS
WHEREAS, City and Consultant have previously entered into that certain Master Services Agreement (“Agreement”) dated December 22, 2017, which is incorporated by this reference, and WHEREAS, City and Consultant desire to amend the Agreement as specified herein.

AGREEMENT
NOW, THEREFORE, it is agreed between the Parties to incorporate the above Recitals hereto, and that the Agreement is hereby amended as follows:

A. Add The Scope of Work for Service Order No. 8 and amend Exhibit A of the Master Scope of Work as follows:

Add Service Order No. 8 Tasks 2 through 6 per the attached 64 page scope of work referenced as Attachment A and titled: “Service Order No. 8 – Program Activities (FY 2023)” dated June 1, 2022.

B. Add Fee Schedule for Service Order No. 8 as follows:

The attached one page table titled “Estimated Work Effort and Fee Estimate” presents a breakdown of the total fee for all Fiscal Year 2023 Services. The Authorized total fee for Fiscal Year 2023 services is not to exceed $6,747,350.

C. Add Work Schedule for Service Order No. 8 per attached 4 page schedule Notwithstanding these amended terms of the original Agreement by this Amendment No. 2023-01, all other terms and conditions of the original Master Services Agreement and attachments, shall remain in full force and effect. The terms of this Amendment No. 2023-01 shall control if any conflict exists.

Each party acknowledges that it has reviewed Amendment No. 2023-01 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 Amendment No. 2023-01.

36.56 City of Santa Cruz Amendment to Master Services Agreement for Program Management Services
June 2022 Page 2
The parties may execute this Amendment No. 2023-01 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.

The signatories to this Amendment No. 2023-01 warrant and represent that each is authorized to execute this Amendment No. 2023-01 and that their respective signatures serve to legally obligate their respective representatives, agents, successors and assigns to comply with the provisions of this Amendment No. 2023-01.

IN WITNESS WHEREOF, the City and the Consultant have executed this Amendment No. 2023- 01 effective as of the date shown above.

Approved As To Form:

By: _____________________________ Date: __________________ City Attorney

CONSULTANT
By: _____________________________ Date: __________________ Printed: _________________________ Title: _________________________

CITY OF SANTA CRUZ
By: _____________________________ Date: __________________ Matt Huffaker, City Manager
CITY OF SANTA CRUZ WATER DEPARTMENT:

By: _____________________________ Date: __________________ Rosemary Menard, Water Director
Technical Review By:

By: _____________________________ Date: __________________ Heidi Luckenbach, Deputy Water Director / Engineering Manager June 14, 2022

36.57 City Council

AGENDA REPORT
DATE: 06/13/2022
AGENDA OF: 06/28/2022
DEPARTMENT: Water
SUBJECT: Santa Cruz Anadromous Salmonids Habitat Conservation Plan: ASHCPFirst Amendment to the Master Services Agreement with Dudek for Environmental Compliance (WT)
RECOMMENDATION: Motion authorizing the City Manager to execute ASHCP-First Amendment to the Master Services Agreement, in a form approved by the City Attorney, for state and federal environmental compliance for the Santa Cruz Anadromous Salmonids Habitat Conservation Plan with Dudek (Santa Cruz, CA) in the amount of $307,050.

BACKGROUND: Since 2001, City staff have been developing an Anadromous Salmonid Habitat Conservation Plan (ASHCP) with the California Department of Fish and Wildlife (CDFW) and the National Marine Fisheries Service (NMFS) staff for California Endangered Species Act (CESA) and federal Endangered Species Act (ESA) compliance for City watersystem operation and maintenance activities that may adversely affect special-status anadromous salmonids. The anadromous salmonids covered by the ASHCP include Central California Coast coho salmon (coho) (Oncorhynchus kisutch), a state and federally listed endangered species, and the Central California Coast steelhead (steelhead) (Oncorhynchus mykiss), a federally listed threatened species. This process has been lengthy due to the nature of the data required for longterm permitting, the inherent challenges of balancing water supply with anadromous instream flows, agency staff changes, the drought of 2012 through 2015, and other related factors.

The ASHCP conservation strategy is designed to avoid, minimize, and fully mitigate the effects of the City’s “Covered Activities” on “Covered Species” (steelhead and coho) and their habitat in support of the long-term viability of these populations within streams affected by the ASHCP Covered Activities. The ASHCP was submitted to CDFW and NMFS for agency review in spring 2021, and the Water Department is currently in the process of obtaining related ESA and CESA incidental take permits (ITPs) that will provide “take” coverage for these special status anadromous fish species. Since the issuance by NMFS of an ITP under Section 10 of the ESA constitutes a federal action, NMFS must comply with NEPA. Additionally, the action by the City to adopt and implement the ASHCP and the issuance of a Section 2081 ITP by CDFW is a project subject to the California Environmental Quality Act (CEQA).

Dudek, under the terms of an existing Master Services Agreement (MSA) for California Environmental Quality Act (CEQA) Compliance and Environmental Permitting Services awarded at the September 24, 2019 City Council meeting, will perform the suite of needed NEPA and CEQA services for the ASHCP project.

37.1 DISCUSSION: Consistent with the intent of the Dudek MSA, staff has been working with Dudek to develop the scope, schedule and budget for a suite of environmental (NEPA and CEQA) services needed to complete the permitting phase of the ASHCP project.

The ASHCP describes City activities that, after avoidance and mitigation measures are implemented, have the potential to result in some level of “incidental take” of endangered salmonid species. The City must obtain both state and federal incidental take permits in order to comply with NEPA and CEQA. The National Marine Fisheries Service, as the lead Federal agency under NEPA, is required at a minimum to complete an Environmental Assessment (EA).

Federal agencies typically do this review in-house, directly out-source, or permit the project proponent to include this scope of work in their environment review. The City of Santa Cruz, as project proponent and lead agency under CEQA, will at a minimum complete an Initial Study/Mitigated Negative Declaration (IS/MND). The Water Department has selected Dudek to prepare the IS/MND and NMFS has selected to include their scope in to this contract as well, providing opportunities for efficiency in the parallel environmental review processes. Based on the findings in the EA and the IS/MND, the NMFS may be required to complete a Finding of Effect, and the City may need to complete a focused environmental impact report (EIR), respectively.

Dudek has proposed the attached scope of work to address the anticipated level of environmental services in the amount of $307,050 (proposed Approved Budget). Optional Tasks totaling up to $230,000 for additional review drafts and enhanced environmental review, as may be required under NEPA and CEQA, are included in the scope and, if needed, a scope and budget augmentation and contract amendment(s) will be prepared.

FISCAL IMPACT: Funds are available in the Water Department’s FY 2022 budget in the Habitat Conservation Programs project (o700803).

Prepared By:

Zeke Bean
Associate Planner II
Submitted By:

Heidi Luckenbach
Acting Water Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. CONTRACT AMENDMENT NO.1.PDF

37.2 City of Santa Cruz ASHCP-First Environmental Services Amendment to Master Service Agreement for

CALIFORNIA ENVIRONMENTAL QUALITY ACT COMPLIANCE

AND ENVIRONMENTAL PERMITTING
June 2022 Page 1

ANADROMOUS SALMONID HABITAT CONSERVATION PLAN (ASHCP) ENVIRONMENTAL SERVICES

AMENDMENT (ASHCP-FIRST) TO MASTER SERVICE AGREEMENT FOR

CALIFORNIA ENVIRONMENTAL QUALITY ACT COMPLIANCE

AND ENVIRONMENTAL PERMITTING
THIS ASHCP-FIRST AMENDMENT, dated ___________, TO THE MASTER SERVICE AGREEMENT dated October 24, 2019, is made by and between the City of Santa Cruz (“City”) and DUDEK, a CORPORATION (“Consultant”).

RECITALS
WHEREAS, City and Consultant have previously entered into that certain Master Service Agreement (“MSA”) dated October 24, 2019, which is incorporated by this reference, and WHEREAS, City and Consultant desire to amend the Agreement as specified herein.

AGREEMENT
NOW, THEREFORE, it is agreed between the Parties to incorporate the above Recitals hereto, and that the MSA is hereby amended as follows:

A. Exhibit A: Scope of Work of the MSA is hereby amended to add project specific tasks per Page 1 to 24 of Consultant’s Proposal dated June 03, 2022, which is attached to this Amendment and is inserted in the MSA as Exhibit A-ASHCP-1
B. Exhibit B: Fee Schedule of the MSA is hereby amended to add $307,050 per Page 27 of Consultant’s Proposal dated June 03, 2022, which is attached to this Amendment and is inserted in the MSA as Exhibit B-ASHCP-1
C. Exhibit C: Work Schedule of the MSA is hereby amended to add the work schedule for completion per Page 26 of Consultant’s Proposal dated June 03, 2022, which is attached to this Amendment and is inserted in the MSA as Exhibit C-ASHCP-1 Notwithstanding these amended terms of the original MSA by this ASHCP-FIRST Amendment, all other terms and conditions of the original Professional Services Agreement shall remain in full force and effect.

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

The parties may execute this ASHCP-FIRST Amendment in two or more counterparts, which shall, in the aggregate, be deemed an original but all of which, together, shall constitute one and the same

37.3 City of Santa Cruz ASHCP-First Environmental Services Amendment to Master Service Agreement for

CALIFORNIA ENVIRONMENTAL QUALITY ACT COMPLIANCE

AND ENVIRONMENTAL PERMITTING
June 2022 Page 2
instrument. A scanned, electronic, facsimile or other copy of a party’s signature shall be accepted and valid as an original.

The signatories to this ASHCP-FIRST Amendment warrant and represent that each is authorized to execute this ASHCP-FIRST Amendment and that their respective signatures serve to legally obligate their respective representatives, agents, successors and assigns to comply with the provisions of this ASHCP-FIRST Amendment.

IN WITNESS WHEREOF, the City and the Consultant have executed this ASHCP–FIRST Amendment effective as of the date shown above.

Approved As To Form:

By: _____________________________ Date: _________________ City Attorney
DUDEK
By: _____________________________ Date: _________________ Printed: __________________________ Title: ________________________ Technical Review:

By: _____________________________ Date: _________________ Heidi Luckenbach, P.E.

Deputy Water Director/Engineering Manager

WATER DEPARTMENT
By: _____________________________ Date: __________________ Rosemary Menard, Water Director

CITY OF SANTA CRUZ
By: _____________________________ Date: __________________ Matt Huffaker
City Manager
June 13, 2022

37.4 June 3, 2022
Zeke Bean
Water Resources Planner, Watershed Section
City of Santa Cruz Water Department
123 Jewell Street
Santa Cruz, CA 95060
Subject: Revised Proposal for City of Santa Cruz Anadromous Salmonid Habitat Conservation Plan National Environmental Policy Act and California Environmental Quality Act Services Dear Mr. Bean:

We are pleased to submit this proposal to the City of Santa Cruz (City) to provide National Environmental Policy Act (NEPA) and California Environmental Quality Act (CEQA) services for the proposed Anadromous Salmonid Habitat Conservation Plan (ASHCP or Proposed Project). The City has developed the ASHCP and applied for an incidental take permit (ITP) from the National Marine Fisheries Service (NMFS) and has submitted a draft ITP application to the California Department of Fish and Wildlife (CDFW) pursuant to Section 10(a)(1)(B) of the Endangered Species Act (ESA) of 1973 and Section 2081 of the California Fish and Game Code (CFGC) (the California Endangered Species Act [CESA] of 1984), respectively, for federally threatened Central California Coast steelhead (Oncorhynchus mykiss) (steelhead) and state- and federally endangered Central California Coast coho salmon (O. kisutch) (coho). Because the issuance by NMFS of an ITP under Section 10 of the ESA constitutes a federal action, NMFS must comply with NEPA. Additionally, the action by the City to adopt and implement the ASHCP and the issuance of a Section 2081 ITP by CDFW is a project subject to CEQA. NMFS is the lead agency under NEPA, the City is the lead agency under CEQA, and the CDFW is a responsible agency under CEQA. This proposal outlines our approach to providing the needed NEPA and CEQA services for the Proposed Project. 1 Project Understanding

1.1 Regulatory Background
The City provides a range of essential public services for its citizens and visitors, including construction, operation, and maintenance of water diversion and treatment facilities; construction and maintenance of roads; waste management activities; stormwater management; and operation and maintenance of recreation and open space areas. The City has determined that activities it undertakes to provide these services may adversely affect the life history and habitat of federally threatened steelhead and state- and federally endangered coho. The ESA (16 U.S.C. §1531 et seq., as amended) prohibits the unauthorized “take” of an animal species that is listed as threatened or endangered. “Take” includes a range of activities that could result in death or injury to a species, Exhibit A-ASCHP-1

37.5 TO: ZEKE BEAN
SUBJECT: REVISED PROPOSAL FOR CITY OF SANTA CRUZ ASHCP NEPA AND CEQA SERVICES MAY 2022 2
including harm that foreseeably results from substantial adverse habitat modification. Under the ESA, “take” is defined as harass, harm, pursue, hunt, shoot, wound, kill, trap, capture, or collect, or to attempt to engage in any such conduct.” Under federal regulations, “take” is further defined to include habitat modification or degradation that results, or is reasonably expected to result, in death or injury to wildlife by significantly impairing essential behavioral patterns, including breeding, feeding, or sheltering. Section 10 of the ESA allows NMFS to authorize the taking of species that is incidental to an otherwise lawful activity by a non-federal entity, if the entity first prepares and agrees to implement a habitat conservation plan that meets permit issuance criteria. Among other issuance criteria, a habitat conservation plan must minimize and mitigate to the maximum extent practicable the potential impacts of such incidental take.

The CESA (CFGC Section 2050 et seq.) prohibits the “take” of plant, fish, and wildlife species listed or petitioned for listing by the State of California. Under the CESA, “take” is defined as “hunt, pursue, catch, capture, kill, or attempt to hunt, pursue, catch, capture, or kill.” Take authorization may be obtained by project applicants from CDFW under CESA Sections 2080.1 or 2081(b). Under Section 2080.1, if a species is listed by both the ESA and CESA and the applicant has obtained a federal ITP, CDFW can issue a consistency determination that finds the federal documents consistent with the CESA. Alternatively, CDFW can issue an ITP under CFGC Section 2081(b), which allows take that is incidental to an otherwise lawful activity. Permittees must implement species-specific minimization and avoidance measures and fully mitigate the impacts of the project. The ASHCP is not a required component of the permit application as it is for the federal ITP application process. However, the ASHCP serves as a tool for describing and analyzing project effects to meet the permit issuance criteria.

The City has developed the ASHCP with NMFS and CDFW for ESA and CESA compliance for City water-system operation and maintenance activities that may adversely affect special-status anadromous salmonids. The City has applied for an ITP from NMFS pursuant to ESA Section 10(a)(1)(B) for a 30-year period authorizing the incidental take of federally threatened steelhead and federally endangered coho (referred to collectively as Covered Species). Likewise, the City has submitted a draft application for an ITP from CDFW pursuant to CFGC Section 2081(b) for a 30-year period authorizing the incidental take of state-endangered coho. The ITPs would require implementation of the ASHCP, which contains the City’s conservation strategies to avoid, minimize, and/or fully mitigate the effects of the City’s Covered Activities described below on steelhead and coho and their habitat in support of the long-term viability of these populations within streams and habitats affected by the activities.

1.2 Plan Area
The area covered by the ASHCP (Plan Area) includes watershed and water service/urban areas that total approximately 176 square miles in Santa Cruz County across three geographically distinct areas: (1) the 18- square-mile North Coast watersheds (Liddell, Laguna, and Majors); (2) portions of the 138-square-mile San Lorenzo River Watershed; and (3) the City urban center, which encompasses approximately 12 square miles centered around the mouth of the San Lorenzo River, as well as the water service areas outside of the City limits that is approximately 8 square miles. Steelhead within the Plan Area are part of the Central California Coast Distinct Population Segment (DPS), listed as threatened under the ESA, consisting entirely of winter-run steelhead and extending from the Russian River south to Aptos Creek in the southern end of Santa Cruz County. Streams in the Plan Area are included in the critical habitat designation for this DPS. Coho in the Plan Area are part of the Central California Coast Evolutionarily Significant Unit (ESU), listed as endangered under the ESA and CESA, extending from Punta Gorda in Humboldt County south to and including Aptos Creek. Critical habitat has been

37.6 TO: ZEKE BEAN
SUBJECT: REVISED PROPOSAL FOR CITY OF SANTA CRUZ ASHCP NEPA AND CEQA SERVICES MAY 2022 3
designated for the Central California Coast ESU and includes the accessible portions of the streams in the Plan Area.

1.3 Covered Activities
The ASHCP would provide coverage for the following Covered Activities, which are further described in Table 1 (description taken from ASHCP Table 3-3):
▪ Operation, maintenance, and rehabilitation of the City’s water supply and water system facilities, including water diversions and reservoir operations, sediment management, fish ladder and screen maintenance, pipeline operations, and dewatering of creeks for maintenance and repairs; ▪ Operation and maintenance of the City’s municipal facilities, including flood control and stormwater maintenance, emergency operations and response, and general vegetation management within riparian corridors; and
▪ Management of City lands, including Loch Lomond Recreation Area and watershed lands, habitat management and restoration, and monitoring.

Table 1. Covered Activities Summary
General Activity Description
Rehabilitation of
diversion structures and
pipeline reaches
▪ Laguna Diversion: Sediment transport improvements
▪ Majors Diversion: Fish screening improvements
▪ Felton Diversion: Fish passage improvements
▪ Tait Street Diversion: Fish passage improvements and diversion capacity increase
Water diversion ▪ Provision of drinking water utilizing existing water rights with addition of “Conservation Flows” (also known as Agreed Flows) at Liddell Diversion, Reggiardo Diversion, Laguna Diversion, Majors Diversion, Newell Creek Dam, Felton Diversion, and Tait Street Diversion and Wells
Reservoir operations ▪ Chemical algaecide treatment of reservoir: 1-5 algaecide treatments annually ▪ Testing deluge and gate valves: 1 test annually of 5-10 cfs for several hours.

Bigger tests during winter/high flows as possible
▪ Woody debris removal on reservoir face: 10 cubic yards of < 10″ diameter/8′ long wood removed annually
Water diversion sediment
management
▪ Liddell Spring: Excavation of up to 3 yards per event up to 1-3×/year. Valve operations
▪ Laguna Diversion: Excavation of 5-10 cubic yards per event up to 1-3×/year.

Valve operations
▪ Majors Diversion: Excavation of 5-10 cubic yards per event up to 1-3×/year.

Valve operations
Fish ladder and screen
maintenance
▪ Felton Diversion: 1-3×/year up to a yard of sediment and woody material needs to be removed from the ladder
▪ Tait Street Diversion: 1-3×/year up to a yard of sediment and woody material needs to be removed from intake
Pipeline operations ▪ Conveyance pipeline system inspections and repairs: Inspection and leak response on 19.23 miles of water line and 5.5 miles of leachate line ▪ Finished water pipeline system flushing and repairs: Flushing and leak response on 270 miles of water line

37.7 TO: ZEKE BEAN
SUBJECT: REVISED PROPOSAL FOR CITY OF SANTA CRUZ ASHCP NEPA AND CEQA SERVICES MAY 2022 4
Table 1. Covered Activities Summary
General Activity Description
▪ Pumping well return to the San Lorenzo River: Ongoing pumping from clear well to remove sediment during high and moderate flows in winter and spring ▪ North Coast valve blow-off to the San Lorenzo River: 5-10 cfs blow-off to riverbank occurring <1×/year during any part of the year for 1-4 hours Dewatering of creeks for
maintenance and repairs
▪ Dewatered stream reaches can range from approximately 20-200 feet at 1-10 sites for 1-4 weeks in any given year
Flood control
maintenance
▪ Debris/obstruction removal: 1-3×/year in wet water years up to 100 cubic yards of material
▪ Flood control sediment management/removal: Removal of approximately 2 cubic yards of sediment per drainage structure/annually or biannually for up to 30 drainage structures
▪ Vegetation management: Thin riparian groves and remove willows >3″ dbh and alders >6″ dbh. Retain 5-10 ′wide riparian buffer adjacent to low flow channel, but remove vegetation >6″ dbh annually
Stormwater maintenance ▪ Inspection and cleaning: Inspect and clean as needed but as frequently as weekly. Sweep 35 miles of streets daily
▪ Structural retrofits of storm drain inlets and basins: As-needed improvements of storm drain infrastructure
▪ Sanitary landfill leachate management: Ongoing maintenance of two leachate ponds, transmission of leachate to wastewater plant and repair of leachate line Emergency operations
and response
▪ Response to flood, fire, spill, or other related incident on a <1 ×/year basis and lasting from a few days to several weeks
General vegetation
management within
riparian corridors
▪ Pruning and limited removal of riparian trees <5,000 square feet on an annual basis during the summer/fall months as needed adjacent to pipeline ROWs, water diversions and other utility infrastructure
Land management ▪ Management of Loch Lomond Recreation Area and watershed lands: Operation and management of 180-acre recreation area and 3,880 acres of open space ▪ Trail maintenance and repair: <50 yards of trail in non-anadromous watersheds annually
▪ Road maintenance and decommissioning:
- Maintenance: Approximately 6.9 miles of road maintained annually - Decommissioning: 0-1 miles of road including up to 3.4 culverts on nonanadromous drainages annually Habitat management and
restoration
▪ Aquatic habitat management and restoration: Dewatering and fish removal in <100-yard stream reach annually
▪ Monitoring: Habitat typing up to 20 miles of stream and tagging/handling of <10,000 fish annually. Visual census of up to 5,000 feet of stream annually.

Maintenance of up to 10 stream gages, 2 pit tag antennas, 10 temperature loggers, 1 fish trap, and 2 water quality data sondes annually

1.4 Conservation Strategy
The ASHCP lays out the City’s conservation strategy for steelhead and coho, which was developed in coordination with NMFS and CDFW based on a review of available data and literature on the two species and field data collection regarding the status and features of populations and habitat conditions within each stream. The

37.8 TO: ZEKE BEAN
SUBJECT: REVISED PROPOSAL FOR CITY OF SANTA CRUZ ASHCP NEPA AND CEQA SERVICES MAY 2022 5
conservation strategy includes biological goals and objectives, avoidance and minimization measures, and a nonflow conservation fund and is designed to avoid, minimize, and fully mitigate the effects of the City’s Covered Activities described above on steelhead and coho and their habitat in support of the long-term viability of these populations within streams and habitats affected by the activities. The primary focus of the City’s conservation strategy is to avoid or minimize potential effects of Covered Activities to the maximum extent practicable (1) by reducing surface water diversions and (2) by compensating for remaining effects by contributing to regional, nonflow recovery actions for steelhead and coho. The following describes the City’s approach to the conservation strategy.

The ASHCP would commit the City to maintaining minimum bypass flows for anadromous fisheries at all City diversions. In particular, the biological goals and objectives of the ASHCP include: (1) provision of bypass flows at each diversion source to improve habitat conditions, as previously noted; (2) creating, restoring, or enhancing aquatic habitat, including removal of passage obstacles, placement of large wood structures, riparian conservation easements, spawning gravel augmentation, riparian restoration, and sediment control projects; and (3) avoiding, minimizing, and fully mitigating effects from City operations and maintenance activities by implementing ramping rates during flow changes at diversions to limit flow reductions, reducing the introduction of sediment, upgrading diversion facilities on Laguna and Majors creeks to provide sediment transport during high flows, and enhancing fish passage through the Felton and Tait Diversions (included in the Santa Cruz Water Rights Project).

Other than the Felton and Tait Diversions upgrades included in the Santa Cruz Water Rights Project, the only construction activities that the ASHCP biological goals and objectives anticipate in the Plan Area include upgrading the Laguna and Majors creek diversions to improve sediment transport during high flows. Retrofits of the existing Laguna Creek Diversion Facility and Majors Creek Diversion Facility are already in the City’s CIP.

Specifically, the ASHCP calls for modifying the Laguna and Majors creek diversions within 10 years of the signed Incidental Take Permit to provide improved sediment transport during high flows. The Laguna Creek Diversion Retrofit Project was already completed in 2021.

The ASHCP identifies avoidance and minimization measures applicable to each Covered Activity that the City would implement to avoid or minimize effects to the Covered Species and their habitats. To ensure that any remaining effects are fully mitigated after the implementation of avoidance and minimization measures, the ASHCP includes a compensatory mitigation program that the City will implement to fund enhancement and restoration of Covered Species habitat. This program is intended to compensate for the residual effects of Covered Activities through the funding of non-flow habitat improvement projects. Mitigation will focus on actions that improve salmonid habitat in the North Coast and San Lorenzo River watersheds.

The ASHCP also estimates the effects anticipated to occur to steelhead and coho from implementation of the conservation strategy and each of the Covered Activities, as well as the ASHCP monitoring program, which would provide the information necessary to assess compliance with the terms of the ASHCP, verify progress toward the biological goals and objectives, and ensure that management/mitigation measures of the ASHCP can be adapted as needed in response to changing environmental conditions and new knowledge. The ASHCP also identifies program costs and funding, and describes two alternatives to the Proposed Project (a No Action Alternative and a Reduced Covered Activities Alternative).

37.9 TO: ZEKE BEAN
SUBJECT: REVISED PROPOSAL FOR CITY OF SANTA CRUZ ASHCP NEPA AND CEQA SERVICES MAY 2022 6

1.5 No Action Alternative
The NEPA regulations adopted and updated by the Council on Environmental Quality (CEQ) require that Environmental Assessments (EAs) include, among other things, “alternatives as required by section 102(2)(E) of NEPA.” 40 C.F.R. 1501.5(c)(2). This larger NEPA requirement requires that federal agencies consider a “no action” alternative as part of the alternatives analysis for EISs, as stated on page 9 of NOAA’s NEPA Policy and Procedures Companion Manual, As the NOAA document explains, the “no action” alternative can assist decision makers by providing a baseline for comparison of environmental effects. Although only explicitly required for EISs, CEQ has also suggested in guidance that agency EAs “may contrast the impacts of the proposed action and alternatives with the current condition and expected future condition in the absence of the project. This constitutes consideration of a no-action alternative as well as demonstrating the need for the project.” Under a No Action Alternative, NMFS would not issue an ESA permit authorizing the incidental take of coho and steelhead. The City would seek to continue to operate and maintain their system as is currently the case while avoiding incidental take of coho and steelhead. In general, the ASHCP, including its conservation strategy, would not be implemented under the No Action Alternative. However, the Conservation Flows (also called Agreed Flows) were included in the Santa Cruz Water Rights Project EIR, which was certified by the City of Santa Cruz in December 2021. Specifically, the Agreed Flows were included in the proposed water rights modifications, which are now being considered by the State Water Resources Control Board. Therefore, it is reasonably foreseeable that the expected future condition without the No Action Alternative will include implementation by the City of the Agreed Flows. Dudek will work with NMFS to confirm the specific details of the No Action Alternative to be analyzed in the EA.
2 Scope of Work
The following tasks outline our approach to CEQA and NEPA compliance for the Proposed Project.

TASK 1 PROJECT INITIATION
Upon contract execution, Dudek’s Project Director and Project Manager will prepare for and attend a project kickoff meeting with the City project team and NMFS staff anticipated to occur via online video conference due to COVID-19. The kickoff meeting will be used to establish communication protocols; develop an understanding of the project schedule and milestones; plan for all elements of the scope of work; define on-site survey and data collection efforts; review and confirm the CEQA and NEPA schedule; and provide the City and NMFS with the opportunity to identify known concerns, issues, stakeholders, and other important factors. The meeting agenda will include a list of data needs for the environmental analyses.

It should be noted that Dudek has already held a preliminary NEPA kickoff meeting with NMFS and City staff to discuss the NEPA scope of work and our approach to preparing the NEPA document, including anticipated resource issues to be covered in the document, planning public involvement efforts to meet NEPA requirements, and to obtain NMFS feedback on the overall NEPA schedule and approach. The kick-off meeting under this task will take the next steps in launching the project work efforts under this scope of work.

37.10 TO: ZEKE BEAN
SUBJECT: REVISED PROPOSAL FOR CITY OF SANTA CRUZ ASHCP NEPA AND CEQA SERVICES MAY 2022 7
Dudek regards this task as a key component of successfully launching the work effort, and we look forward to discussing key environmental issues and setting the stage for a successful CEQA/NEPA process. Dudek will provide an agenda and meeting summary to document action items.

This task also allows for preparation and review of document templates and a style guide so that all document formatting is established in advance of drafting the documents. If desired by NMFS, Dudek will also set up a project-specific shared access portal on our SharePoint site to allow for efficient and collaborative document reviews with NMFS, after reviewing the document internally with the City.

Task 1 Deliverables
▪ Kickoff meeting agenda
▪ Data needs list
▪ Meeting summary
▪ Document templates and style guide (draft and final digital versions) ▪ Project portal on SharePoint
TASK 2 TECHNICAL STUDIES
Analyses and reports prepared under this task will be used to support the analyses in the NEPA and CEQA documents. The biological resources analysis will entail a compilation of existing information and data for evaluation and use in both the NEPA and CEQA documents. The cultural resources analysis will result in a technical report that will be included as appendices to the documents.

Task 2.1 Biological Resources Analysis
Dudek will identify key biological resource issues that need to be addressed in the NEPA documentation (Task 3) and CEQA documentation (Task 4). Based on our experience with the Santa Cruz Water Rights Project and other recent infrastructure projects with the City, it is anticipated that additional field assessments to assess existing biological resources is not necessary. Dudek will use the extensive work conducted as part of these efforts, as well as the decades-long development of the ASHCP, to compile a comprehensive biological baseline for the NEPA and CEQA documents’ environmental analyses. The analysis will focus on the Covered Species (steelhead and coho) and Plan Area as identified in the current draft of the ASHCP, which encompasses approximately 176 square miles. Dudek will also evaluate non-Covered Species that are considered special-status and pull relevant information from the previous impact analyses conducted as part of the City’s adopted Operations and Maintenance HCP (O&M HCP).

This task will include: (1) a current literature and data review of special-status biological resources; (2) preparation of GIS datasets and tables that summarize known and potential occurrences of special-status species; and (3) comparison of impacts and preparation of recommended compensatory mitigation for the NEPA and CEQA analyses. Information and data from these subtasks will be incorporated directly within the NEPA and CEQA documents.

37.11 TO: ZEKE BEAN
SUBJECT: REVISED PROPOSAL FOR CITY OF SANTA CRUZ ASHCP NEPA AND CEQA SERVICES MAY 2022 8
Task 2.1-1 Literature and Data Review
Dudek will conduct a desktop analysis to confirm potential biological resource constraints and specific areas of the Plan Area that may need further investigation. Dudek biologists will review current literature and data on sensitive habitats and special-status species distribution to determine those resources that have the potential for occurrence in the Plan Area. The review will include the most recent versions of: (1) the CDFW California Natural Diversity Database (CNDDB); (2) the U.S. Fish and Wildlife Service (USFWS) Information for Planning and Consultation (IPaC) database; (3) the California Native Plant Society (CNPS) Online Inventory of Rare and Endangered Plants; (4) listing packages for threatened and endangered species known to occur within the region; and (5) the U.S. Geological Survey (USGS) National Hydrography Dataset (NHD). This review will confirm the distribution and listing or protection status of each special-status species.

Task 2.1-2 Prepare Special-Status Species GIS Data and Occurrence Tables Dudek GIS Specialists will compile data on special-status species locations and habitat, aquatic resources, and locations of project components (e.g., work areas, access roads, proposed facilities, etc.). These datasets will be used to confirm the potential for occurrence of special-status species in the Plan Area. Each special-status species will be assigned a “potential to occur” rating of “low,” “moderate,” “high,” or “not expected to occur” based on proximity to known occurrences, vegetation communities (habitat) present, life history, elevation ranges, and soils. Once the table is compiled it will be reviewed by City staff prior to it’s use in the impact analysis so that the City can advise on known occurrences that do not otherwise appear in any of the above lists/data bases.

Task 2.1-3 Impact Analysis and Mitigation Comparison
The biological resources analysis will focus on the potential impacts of the Covered Activities and impacts related to Agreed Flows and some diversion improvements will be largely based on modeling and analyses previously conducted by others for the Santa Cruz Water Rights Project (Hagar and Associates, Balance Hydrologics, and Gary Fiske), as well as data and information contained in the ASHCP. These sources will provide the foundation of technical information to develop the setting, impacts, and mitigation elements of the NEPA and CEQA documentation. Because a key objective of the ASHCP and Santa Cruz Water Rights Project was to establish Agreed Flows that would improve instream habitat and flow conditions for coho and steelhead in all watersheds from which the City diverts water, implementation of the Agreed Flows are not anticipated to have significant impacts on either of these special-status species under CEQA. However, other sensitive resources and natural communities could be affected by the proposed conservation strategy and will be evaluated.

Dudek will prepare tables that summarize the anticipated direct and indirect impacts of the proposed conservation strategy and the compensatory mitigation for the NEPA and CEQA analyses. These tables will be based upon existing activity descriptions and data and measures from the Santa Cruz Water Rights Project, O&M HCP, and ASHCP.

Task 2.1 Assumptions
▪ This scope assumes that the biological resources review will consist of a desktop analysis and rely upon previously conducted fieldwork. Additional fieldwork is not included.

Task 2.2 Cultural Resources Analysis
The following tasks serve to provide an analysis of impacts to cultural resources in conformance with CEQA, Section 106 of the National Historic Preservation Act (NHPA), and NEPA, and all applicable local municipal

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guidelines and regulations. Dudek’s cultural resources scope of work considers previous work conducted by Dudek for the City of Santa Cruz Water Department for the Laguna Diversion Retrofit Project and for the Santa Cruz Water Rights Project. It will also consider other cultural reports prepared by others identified by the City or during the records search that are relevant to the Proposed Project.

Task 2.2-1 Records Search
Dudek will begin by conducting a California Historical Resources Information Systems (CHRIS) records search update to ensure adequate, up-to-date coverage for all of the Plan Area and a reasonable buffer at the Northwest Information Center (NWIC), which houses cultural resource records for Santa Cruz County. The purpose of the records search is to identify any previously recorded cultural resources that may be located within the project area. In addition to a review of previously prepared site records and reports, the records search will also review historical maps of the project area, ethnographies, the National Register of Historic Places (NRHP), the California Register of Historical Resources (CRHR), the California Built Environment Resource Directory (BERD), and the lists of California State Historical Landmarks, California Points of Historical Interest, and Archaeological Determinations of Eligibility. Dudek assumes the cost of the updated records search will not exceed $750.00.

Task 2.2-2 Area of Potential Effects Map
Dudek will develop the appropriate Area of Potential Effects (APE) Map for archaeology and the built environment for the Proposed Project. The APE will encompass all geographic areas in which the Proposed Project has the potential to directly or indirectly affect the character or use of historical properties and structures, historical resources of an archaeological nature, and unique archaeological resources. In addition to areas where construction activities are expected to occur, the APE map will consider construction staging areas, temporary construction easements, utility relocation, and any other activity that has the potential to affect such historical properties and archaeological resources. Dudek assumes that the APE for the Proposed Project will be limited to the areas of direct impact. No more than two (2) versions of the APE Map will be produced.

Task 2.2-3 Native American Coordination and Historical Society Outreach At the outset of this task, Dudek will coordinate with the City and NMFS to ensure that outreach to Native American tribes is a coordinated effort, where possible. The scope below may need to be refined somewhat to provide for that coordination. Dudek will contact the California Native American Heritage Commission (NAHC) for a review of its Sacred Lands File. The NAHC will determine if any NAHC-listed Native American sacred lands are located within or adjacent to the Plan Area. In addition, the NAHC will provide a list of Native American contacts for the Proposed Project who should be contacted for additional information. Dudek will prepare the letter for the City to send to each of the NAHC-listed contacts, requesting that they contact the City if they know of any Native American cultural resources within or immediately adjacent to the Plan Area.

The Proposed Project is subject to compliance with Assembly Bill (AB) 52 (2014). AB 52 requires the City to consult with any interested California Native American Tribes to identify any tribal cultural resources that might be adversely affected and to develop mitigation measures for any significant effects to such resources. AB 52 is a government-to-government process between the CEQA lead agency and California Native American Tribes. Dudek understands that one California Native American Tribe has requested to engage in consultation under AB 52 with the City. At the City’s request, Dudek will provide assistance with this process in order to comply with consultation obligations and to identify any Tribal cultural resources that may be present in or near to the Plan Area. These services include drafting the initial letter, attending one in-person meeting to support the City in its consultation, drafting the closing consultation/summary letter, and supporting the City in its formalization of agreements. Our

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scope provides for up to 10 hours of time to provide these AB52 consultation support services. Additional effort beyond this time will require a scope and budget augmentation.

Dudek will also coordinate with local historical societies, advocacy groups, and stakeholders who may have information on the subject property and its history. (The subject property includes the Laguna, Majors, Felton, and Tait diversions. However, with the exception of the Majors diversion, prior recent cultural resource studies have been prepared by Dudek that address all of the other diversions, in some fashion. These prior studies will be used, as appropriate in this effort.) This coordination will include limited outreach via emails and phone calls concerning the property and its historical associations. No follow-up phone calls or in-person meetings are included in this task.

Task 2.2-4 Survey
In consideration of potential impacts to cultural resources, Dudek cultural resources specialists (including a qualified archaeologist and architectural historian) will conduct a survey of select Proposed Project sites. The intention of the survey will be to spot-check resources and surrounding areas that have the potential to be impacted by the Proposed Project. Dudek assumes that no more than two (2) historic-era (i.e., over the age of 45 years) water management facilities will require survey. Dudek assumes no more than one (1) day survey for archaeology and two (2) days of survey for built environment.

Task 2.2-5 Record and Evaluate Resources
For the purposes of this scope of work and cost estimate, Dudek assumes that the survey will be negative for archaeological resources requiring recordation or evaluation. No artifacts, samples, or specimens will be collected during the survey.

Dudek further assumes that the survey will be positive for no more than two (2) built environment resources requiring historic significance evaluation. The resources will be recorded on the appropriate State of California Department of Parks and Recreation Series 523 Forms (DPR forms), and will be evaluated in consideration of NRHP, CRHR, and City eligibility criteria and integrity requirements.

As part of this process, Dudek will conduct archival research to understand the history of the properties and their historic context. Should more than two (2) resources be identified as a result of the survey requiring recordation and evaluation, a budget augment may be required to address the resources.

Task 2.2-6 Cultural Resources Technical Report
Dudek will prepare a cultural resources inventory and evaluation technical report that summarizes the results of the records search, Native American coordination, background research, cultural resources survey, and property significance evaluations. The section will also discuss the regulatory framework, all sources consulted, research and field methodology, setting, and findings. The report will also include an historical overview of the City’s water development history. All DPR forms will be included as an appendix. Dudek assumes one draft and one final version of the report will be provided electronically.

Task 2.2-7 Prepare Finding of Effect (Optional)
Under this task, Dudek will prepare Finding of Effect (FOE) documentation and assist the Water Department in conceptualizing mitigation, if necessary. For scoping this optional task, Dudek assumes that the FOE will address

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one (1) significant historic built environment resource. Should mitigation implementation be required, Dudek can prepare a subsequent scope and cost to implement the mitigation.

Task 2.2-8 Environmental Document Contributions
The cultural resources inventory and evaluation technical report will be utilized to prepare the cultural resources analyses in the NEPA and CEQA documents described in Task 3 and Task 4, respectively. We also understand that the report will be used by NMFS to support their consultation with the State Historic Preservation Office (SHPO) under Section 106 of the National Historic Preservation Act. Dudek’s cultural resources technical staff will provide QA/QC on the cultural resources sections and respond to comments on the administrative draft documents related to cultural resources.

Task 2.2 Assumptions
▪ Should more than two built environment resources require evaluation, a budget augment would be required.
▪ Comments on the draft technical report will be editorial in nature and not require additional research or filed survey.
▪ The cost for the records search update will not exceed $750.00. ▪ Project site access will be provided and facilitated by the City.

Task 2.2 Deliverables
▪ Draft and final cultural resources inventory and evaluation technical report (electronic copies) TASK 3 NEPA DOCUMENTATION
Dudek will prepare the EA and follow NEPA implementing guidance in accordance with the Council on Environmental Quality (CEQ) NEPA Implementing Regulations at 40 CFR Parts 1500-1508, Companion Manual for National Ocean and Atmospheric Administration (NOAA) Administrative Order 216-6A entitled Policy and Procedures for Compliance with the National Environmental Policy Act and Related Authorities, and 15 Code of Federal Regulations (CFR) § 990.23 for NOAA compliance with NEPA and CEQ regulations. Per 40 CFR § 1501.5(f), the text of the EA will be no more than 75 pages, not including appendices. Our proposed schedule in Section 5, Preliminary Schedule, will be reviewed and refined in coordination with NMFS and the City project team as part of Task 1 above to ensure completion of the EA within 1 year, per the time limits set forth in 40 CFR § 1501.10(b)(1). This scope of work assumes that the EA analysis will conclude that the proposed action would not have a significant impact and a Finding of No Significant Impact (FONSI) will be prepared by NMFS for signature by the NMFS Regional Administrator. This assumption is subject to change, depending on the outcome of the analysis in the EA. If the EA determines that a full environmental impact statement should be prepared, an expanded scope of work, and possibly separate contracting directly between Dudek and NMFS, may be required.

Task 3.1 Purpose and Need Statement
In coordination with NMFS, Dudek will prepare a clear and concise draft purpose and need statement and submit to NMFS for review and approval. This statement will describe the proposed action, including the objectives of the proposed action and the underlying problem that the proposed action addresses. This section will provide the

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basis for the agency action and the range of reasonable alternatives that will be analyzed in the EA that could accomplish the lead agency’s purpose and need.

After receipt of NMFS comments on the draft purpose and need statement, Dudek will finalize the purpose and need statement for inclusion in the EA.

Task 3.1 Deliverables
▪ Draft purpose and need statement (electronic copy) for internal review. Note that this deliverable will also include Chapter 2 of the EA described under Task 3.2.

Task 3.2 Administrative Draft EA
Dudek will prepare and submit an Administrative Draft EA to NMFS for review. The EA will follow a standard outline and/or recent example provided by NMFS. The EA will contain a brief discussion of the purpose and need for the proposed action (see Task 3.1), the alternatives considered, affected environment, an analysis of the environmental effects of the proposed action and alternatives, and a listing of agencies and persons consulted (40 CFR § 1501.5[c][2]). The EA will follow guidance from the Companion Manual to incorporate by reference background data to support its succinct discussion of the proposal and relevant issues. Because the Santa Cruz Water Rights Project Draft EIR (June 2021) and Final EIR (November 2021) analyzed some of the Covered Activities of the ASHCP pursuant to CEQA, Dudek’s approach will be to incorporate analysis in this document by reference to the maximum extent practicable in accordance with 40 CFR § 1501.12. The incorporated material will be cited in the EA and its content briefly described.

Chapter 1 of the EA will identify the purpose and need for the project, statutory and regulatory requirements, and a detailed description of the proposed Plan Area for the covered facilities and activities. Chapter 2 will identify the alternatives, including the proposed action and the no action alternative that will be analyzed in detail in the EA.

Dudek assumes that one additional action alternative may be required for analysis, for a total of up to three alternatives.

The affected environment will be presented in Chapter 3. Resource descriptions will be quantitative where warranted and of sufficient detail to serve as a baseline against which to measure the potential effects of implementing the proposed action. Relevant information from the Santa Cruz Water Rights Project EIR and the ASHCP will be used to create the affected environment. This information will then be used to assess potential direct, indirect, and cumulative impacts of the alternatives on each resource in the environmental consequences section of the Draft EA.

Chapter 4 will contain the environmental consequences analysis. Resource impact analysis will describe the known and predicted effects of the project related to the resources and other project issues. To help decision makers understand how a resource will be affected by the project, the EA will focus on characterizing effects in terms of context (e.g., adverse or beneficial), intensity (e.g., significant or insignificant), and duration (e.g., shortor long-term). The level of detail will support reasoned conclusions by comparing the amount and degree of change. This will include a description of the analysis methodology by resource topic, as agreed upon with City and NMFS staff, so that readers can sufficiently understand how the analysis was conducted. Chapter 4 will also identify appropriate mitigation measures that will be necessary to avoid or minimize adverse environmental effects.

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Cumulative effects—the potential effects of the proposed project when combined with the effects of reasonably foreseeable future actions—will be analyzed in Chapter 5. Dudek will consult with the City, NMFS, and other publicly available sources including the Santa Cruz Water Rights Project EIR for determining the relevant reasonably foreseeable future actions. Chapter 6 will include a full list of references cited in the EA. Chapter 7 will list all preparers that contributed to the EA and organizations and agencies consulted for the preparation of the EA.

The Administrative Draft EA will be submitted to City staff for internal review and comment. Dudek will revise the Administrative Draft EA in response to one round of consolidated City comments prior to submitting the document to NMFS for review and comment. We assume that the review of the documents will be done electronically; no hard copies will be provided. As described above in Task 1, if desired by NMFS, we will provide a shared access site on SharePoint where the files can be posted and reviewed by NMFS after sharing the document internally with the City. We assume that the NMFS project lead will review all comments (provided in track changes) to resolve any internal inconsistencies before submitting final edits/comments to Dudek.

Dudek assumes that the EA will address the following topics using the approach outlined below, as agreed with NMFS in our preliminary NEPA kickoff meeting.

Hydrology and Water Quality and Quantity
This section will consist of a desktop analysis that will focus on water quality (erosion, sedimentation), streamflows, and flooding. The hydrology and water supply modeling performed for the Santa Cruz Water Rights Project EIR will be incorporated by reference.

Biological Resources
This section will assess potential impacts on the Covered Species, as well as other federally listed species (plants and wildlife) and habitat, including Essential Fish Habitat, fish species managed under the Magnuson-Stevens Fishery Conservation and Management Act, and critical habitat. The analysis will rely on the information compiled as part of Task 2.1 and include data and information from the O&M HCP and ITP issued by the USFWS. The analysis will also rely on the avoidance and minimization measures contained in the O&M HCP and ASHCP, and on the fisheries modeling performed for the Santa Cruz Water Rights Project EIR. It is assumed that no new modeling will be performed for the EA.

Cultural Resources
This section will be based on historic resource evaluations conducted for the Laguna Diversion Retrofit Project EIR and Santa Cruz Water Rights Project EIR for the Laguna Diversion and Tait Diversion, respectively, and include new historic evaluation of the Majors Diversion and the Felton Diversion, which will be appended to the EA as a separate report (see Task 2.2 for a description of the cultural resources report that will be prepared for the Proposed Project). Dudek assumes that NMFS will handle the Section 106 consultation with the State Historic Preservation Office (SHPO).

Agriculture
This section will include a description of the existing agricultural land, designations, and preserves in the Plan Area.

It is assumed that no new technical data will be generated to support this analysis and that Dudek will incorporate

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information developed for the Santa Cruz Water Rights Project EIR by reference and utilize local General Plans and EIRs and other existing documents to provide background information. This analysis will include a review of any agricultural land that would be affected by the proposed action.

Water Supply
This section will evaluate potential impacts on the City’s water supply due to provision of minimum bypass flows.

Recreation
This section will evaluate impacts of the proposed action on recreation. In particular, the EA will document beneficial impacts of the proposed action related to increased lake levels at Loch Lomond Reservoir that were identified in the Santa Cruz Water Rights Project EIR.

Socioeconomics and Environmental Justice
This section will describe the existing demographic characteristics of the Plan Area, including information pertaining to population and housing, employment, and minority and low-income populations. This section will assess any potential increase in the cost of water to consumers. Dudek assumes that the City of Santa Cruz will provide information on cost and rate structures for use in the analysis. This section will also discuss whether the proposed action would have any potential disproportionate impacts on minority and low-income populations pursuant to Executive Order 12898.

Task 3.2 Assumptions
▪ Dudek assumes that the EA analyses will primarily be a desktop analysis and utilize existing information to the extent possible, with the exception of fieldwork related to cultural resources.

No new fieldwork will be conducted in relation to the other EA topics. ▪ This scope of work assumes that a total of up to three alternatives will be analyzed in the EA (the No Action Alternative, Proposed Action, and one additional action alternative). ▪ This scope of work assumes that analyses will be limited to the seven topics identified in Task

3.2. ▪ Dudek assumes that NMFS will handle its own consultation with Native American tribes and with SHPO.
▪ The review process with NMFS will involve use of a Dudek SharePoint site, if desired by NMFS, so that concurrent reviews of all documents can take place by all NMFS reviewers. ▪ Dudek assumes that the NMFS project lead will review all comments (provided in Track Changes) to resolve any internal inconsistencies or to provide clear direction on comment resolution before submitting final edits/comments to Dudek.
▪ With the use of SharePoint for document reviews with NMFS, it is assumed that a single version of the document is reviewed by NMFS and that Dudek is not required to compile multiple versions of the deliverables that have been reviewed by the NMFS project team.

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Task 3.2 Deliverables
▪ Internal Administrative Draft EA for City review and comment (electronic copy) ▪ Administrative Draft EA for NMFS review and comment (electronic copy) ▪ 2nd Administrative Draft EA for NMFS review and comment (electronic copy) Task 3.3 Screencheck Draft EA
Dudek will revise the Administrative Draft EA based on one round of comments provided by NMFS staff via our SharePoint site and will prepare a Screencheck Draft EA that incorporates all comments. The Screencheck Draft EA will be provided electronically showing all Track Changes and responses to comments for NMFS review to ensure the document is adequate and addresses all prior comments, as well as a “clean” version with all edits and comments accepted.

Task 3.3 Deliverables
▪ Screencheck Draft EA (electronic copy)
Task 3.4 Draft EA
Dudek will finalize the Draft EA based on any minor revisions made on the Screencheck Draft document and produce the Draft EA for public review. Comments on the Screencheck Draft EA are assumed to be minor in nature requiring limited effort to respond to. Dudek will ensure that the document complies with Section 508 of the Rehabilitation Act of 1973, which requires federal agencies to make electronic and information technology accessible to people with disabilities. Dudek assumes that NMFS will provide public notice of the availability of the Draft EA and circulate the document for a 30-day public review period.

Task 3.4 Assumptions
▪ Comments on the Screencheck Draft EA are assumed to be minor in nature requiring limited effort to respond to.
▪ Dudek assumes that NMFS will provide public notice of the availability of the Draft EA and circulate the document for a 30-day public review period. ▪ Dudek assumes no public meetings, mailings, or other public outreach will be required prior to the preparation of the Draft EA. In the unlikely event that NMFS does require additional public outreach, a separate scope of work for those tasks will be prepared.

Task 3.4 Deliverables
▪ Draft EA (electronic copy; no more than five hard copies, if requested) Task 3.5 Final EA
Upon the completion of the public review period, Dudek will coordinate with NMFS to make any appropriate changes to the EA based on public comment. Dudek will prepare responses to all environmental issues raised in the comments and prepare an Administrative Final EA for NMFS review and approval. The Administrative Final EA will be updated to include a summary of comments received on the Draft EA and address any substantive issues raised by comment letters as appropriate. Should comments on the Draft EA raise new issues or require that new

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surveys or technical studies be conducted to complete adequate responses, Dudek will initiate discussions immediately with NMFS and City staff to evaluate the options.

Dudek will revise the Administrative Final EA in response to one round of NMFS staff comments and submit a Screencheck Final EA showing all Track Changes and responses to comments for NMFS review to ensure the document is adequate and addresses all prior comments, as well as a “clean” version with all edits and comments accepted. Dudek will finalize the Final EA based on any minor revisions made on the Screencheck Final EA document and provide the Final EA to NMFS. This scope of work assumes that NMFS will prepare the FONSI for formal clearance and signature by the Regional Administrator.

Task 3.5 Assumptions
▪ Dudek assumes that up to 10 public comment letters of limited scope and length are received and that such letters do not require major changes to the EA or new or substantially revised technical analyses, and/or do not otherwise raise complex issues requiring substantial research, agency coordination, or additional technical analysis. If additional, complex, or lengthy public comment letters beyond what is currently contemplated are received, such letters can be responded to with a scope augmentation.
▪ Dudek assumes that NMFS will prepare the FONSI.

Task 3.5 Deliverables
▪ Administrative Final EA (electronic copy)
▪ Screencheck Final EA (electronic copy)
▪ Final EA (electronic copy)
TASK 4 CEQA DOCUMENTATION
The following subtasks outline the steps Dudek will undertake to complete CEQA review for the Proposed Project.

Dudek proposes to first prepare an Initial Study (IS) for the Proposed Project. The potential environmental impacts associated with permit issuance and the approval and implementation of the ASHCP will be analyzed in the IS.

Based on our initial assessment prior to detailed study, it appears that the Proposed Project would not result in significant unavoidable impacts and that feasible mitigation measures would be available to reduce likely impacts to less-than-significant levels. Therefore, this scope of work assumes that we will prepare a mitigated negative declaration (MND) for the Proposed Project. The contents of the MND will include the IS, a proposed finding that the Proposed Project would not have a significant effect on the environment, and the mitigation measures included to reduce potentially significant effects to less-than-significant levels.

Should any significant and unavoidable impacts be identified in the IS, or if there are other reasons that the City determines warrant preparation of an EIR, Dudek would need to undertake Optional Task 4.6 below to prepare an environmental impact report (EIR), which we anticipate would be a focused EIR to address only the effects determined to be significant, per CEQA Guidelines Section 15063(c)(3)(A). If Optional Task 4.6 is deemed necessary, then Dudek will prepare a budget augmentation.

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Task 4.1 CEQA Project Description
Based on our review and understanding of the Proposed Project, Dudek will prepare the CEQA Project Description prior to beginning work on the IS. The CEQA Project Description will include:
▪ The precise location and boundaries of the Plan Area on an aerial map, which also will show the regional location of the ASHCP;
▪ The underlying purpose of the Proposed Project, along with a statement of the objectives sought by the Proposed Project;
▪ A general description of the technical and environmental characteristics of the Proposed Project; ▪ A detailed description of the Proposed Project components; and ▪ The anticipated timeline for Proposed Project implementation.

Dudek will submit the CEQA Project Description to the City for review and approval. Following City review, Dudek will finalize the CEQA Project Description for inclusion and use in the CEQA document.

Task 4.1 Assumptions
▪ This scope assumes that the CEQA Project Description will remain stable and will not change following approval by the City.

Task 4.1 Deliverables
▪ Draft and final CEQA Project Description (electronic copy) Task 4.2 Administrative Draft IS/MND
After completion of the CEQA Project Description, Dudek will move forward with preparing the Administrative Draft IS/MND using the Appendix G checklist in the current CEQA Guidelines. Dudek will prepare the IS in conformance with the applicable criteria, standards, and provisions of the CEQA Statutes of 1970, California Public Resources Code Section 21000 et seq., and the CEQA Guidelines. As described in Task 3, Dudek will incorporate information and analyses developed for the Santa Cruz Water Rights Project Final EIR (November 2021) into the IS, as warranted and applicable, as well as data and information contained in the ASHCP.

The environmental setting for each topic will be described based on review of existing information and reports and limited site visits, as needed. Clear graphics will be provided to illustrate site conditions. Brief explanations will be provided on topics for which no impact would be expected, and/or applicable source documents will be cited where such document clearly shows that no impact would occur. Expanded analyses will be prepared for impacts with potential significance or to document why a potential impact would not be considered significant.

The analyses will be based on review of existing studies and data, including reports and analyses prepared for the Santa Cruz Water Rights Project EIR, as supplemented by technical studies completed for the project. The analysis for each resource will include significance thresholds and a description of the environmental setting and will substantiate impact conclusions with factual data and scientific results. Feasible mitigation measures will be included to address any identified potentially significant environmental impacts. Dudek will submit the Administrative Draft IS/MND to the City for review on our project-specific SharePoint site.

The work plan for each topic is described below.

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Aesthetics
This section will describe general viewsheds in the Plan Area and document whether there are any public views of any of the sites. We will describe that the Proposed Project would maintain visual conditions similar to existing conditions, upgrades to existing infrastructure, and other habitat improvement projects. The analysis will focus on temporary and permanent impacts from construction and permanent change in the landscape from implementation of conservation measures.

Agriculture and Forestry
This section will include a description of the existing agricultural land, designations, and preserves, as well as forest land, in the Plan Area. It is assumed that no new technical data will be generated to support this analysis and that Dudek will incorporate information developed for the Santa Cruz Water Rights Project EIR by reference and utilize local General Plans and EIRs and other existing documents to provide background information. This analysis will include a review of any agricultural and forest land that would be affected by the ASHCP.

Air Quality
This section will describe regional topography and climate, criteria air pollutants and ambient air quality standards, existing air quality conditions and attainment status of the North Central Coast Air Basin (NCCAB), and sensitive receptors in the Plan Area. The impacts analysis will focus on short-term construction-period air pollutant emissions and long-term emissions associated with Proposed Project operations. As described above in Section 1, Project Understanding, the only construction activities anticipated from the Proposed Project would include upgrades to the Felton and Tait Diversions on the San Lorenzo River to enhance fish passage and upgrades to the Laguna and Majors Creek Diversions to improve sediment transport during high flows. An assessment of air quality impacts will be prepared utilizing qualitative significance thresholds derived from Appendix G of the CEQA Guidelines and emissions-based thresholds adopted by the Monterey Bay Air Resources District (MBARD). Dudek will refer to modeling and analyses performed for the Laguna Creek Diversion Retrofit EIR and the Santa Cruz Water Rights Project EIR to estimate criteria air pollutant emissions associated with upgrades of the Laguna Creek, Felton, and Tait Diversions, and additional emissions for activities not previously modeled (e.g., the Majors Creek Diversion upgrades, as well as other operational activities) will be discussed qualitatively based on previous modeling with regard to the MBARD significance criteria. No new air modeling is assumed to be warranted. Additional thresholds will also be evaluated, including the potential for the Proposed Project to expose sensitive receptors to substantial pollutant concentrations, to cause objectionable odors, or to impede attainment of the current MBARD Air Quality Management Plan.

Biological Resources
This section will rely primarily on information gathered for development of the O&M HCP, Santa Cruz Water Rights Project EIR, and ASHCP, and other relevant City documents and studies prepared for other projects. General wildlife and plant resources would be derived from information prepared during Task 2.1. Covered Species information will be derived from the ASHCP to analyze potential direct, indirect, and cumulative impacts to each species. Potentially occurring special-status species (in addition to the Covered Species) information would be derived from the Santa Cruz Water Rights Project EIR and updated information compiled as part of Task 2.1.

Potentially jurisdictional aquatic resource information prepared for the Santa Cruz Water Rights Project EIR would

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be utilized to evaluate the extent of aquatic resource impacts associated with the Covered Activities and conservation strategy.

Cultural Resources
This section will be prepared based on the cultural resources technical report described in Task 2.2.

Energy
Dudek will prepare an energy assessment for the Proposed Project per Appendix G of the CEQA Guidelines. Based on Appendix G, the impact analysis will assess if the Proposed Project would (1) result in potentially significant environmental impact due to wasteful, inefficient, or unnecessary consumption of energy resources, during project construction or operation, and (2) conflict with or obstruct a state or local plan for renewable energy or energy efficiency. Drawing from modeling previously done for the Santa Cruz Water Rights Project EIR and Laguna Creek Diversion Retrofit EIR, Dudek will qualitatively discuss the Proposed Project’s energy consumption during construction and operations, including petroleum consumption and any other Project elements that would reduce the Proposed Project’s energy demand.

Geology and Soils
This section will include a description of the geology, soils, and seismicity conditions in the Plan Area, including paleontological resources. It is assumed that no new technical data will be generated to support this analysis and that Dudek will utilize information from the Laguna Creek Diversion Retrofit EIR, Santa Cruz Water Rights Project EIR, local General Plans and associated EIRs, and other existing documents to provide background and assess impacts to these resources and the effects of geotechnical constraints on the Proposed Project. Dudek assumes that the City will provide any geotechnical studies that have been prepared for the Proposed Project or other related projects, if available.

Greenhouse Gas Emissions
The greenhouse gas (GHG) emissions section will include a brief description of global climate change, and a summary of key and applicable regulatory measures. Dudek will provide estimates of the GHG emissions associated with construction of the Felton, Tait, and Laguna Diversion upgrades based on modeling previously conducted for the Santa Cruz Water Rights Project EIR and Laguna Creek Diversion Retrofit EIR, and will draw from previous modeling to qualitatively discuss additional Proposed Project elements. No new modeling or quantitative analysis will be performed. Dudek will assess the significance of the Proposed Project with respect to the Appendix G criteria; specifically, whether a project would (a) generate GHG emissions, either directly or indirectly, that may have a significant impact on the environment and (b) conflict with an applicable plan, policy or regulation adopted for the purpose of reducing GHG emissions. Although the MBARD recently adopted a GHG threshold for stationary sources, MBARD has not established significance thresholds for development projects. As such, other appropriate regional thresholds, such as those from the California Air Pollution Control Officers Association, will be discussed in relation to the Proposed Project’s GHG emissions to evaluate significance under CEQA.

There are no known GHG emissions reduction plans or Climate Action Plans that would apply to the Proposed Project. Dudek will discuss how the Proposed Project complies with state legislation (Senate Bill 32) and regional goals to the extent applicable. Dudek will also provide a qualitative post-2020 analysis that will evaluate whether

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or not the project-generated GHG emissions would impede the attainment of GHG reduction goals identified in Senate Bill 32, Executive Order S-3-05, and Executive Order B-55-18, respectively, which will focus on why the Proposed Project would not be a long-term source of substantial GHG emissions. Because neither the MBARD nor City have established a numeric post-2020 bright-line threshold or provided guidance for demonstrating that a project will not impede the implementation of State’s post-2020 GHG reduction goals, a qualitative assessment is assumed sufficient.

Hazards and Hazardous Materials
Dudek will prepare the hazards and hazardous materials section based on a regulatory records review, in compliance with Government Code Section 65962.5 (i.e., the Cortese List). Potential environmental impacts will address the following: potential to encounter contaminated soils associated with a Cortese List site; potential upset associated with transport, use, and disposal of hazardous materials during construction; and potential hazardous emissions or hazardous materials use within one-quarter mile of an existing school, during construction and operations. Construction- and operation-related hazards, including use of petroleum products, equipment refueling, etc., will also be characterized.

Hydrology and Water Quality
This section will include a description of surface water and groundwater resources, including regional watersheds, streamflow and diversions, and water quality in the Plan Area. Potential hydrologic hazards in the Plan Area, including flood zones and dams/reservoirs will also be described. The impact analysis will consist of a desktop analysis that will focus on water quality (erosion, sedimentation), streamflows, and flooding. Dudek will utilize the hydrology and water supply modeling performed for the Santa Cruz Water Rights Project EIR to support the analysis.

Land Use and Planning
The land use/planning section will describe the existing land uses in the Plan Area; review applicable land use plans, policies, and regulations; and evaluate the potential impacts of the Proposed Project. The evaluation will address impacts related to physically dividing an established community and causing a significant environmental impact due to conflicts with land use plans, policies, and regulation adopted for the purpose of avoiding or mitigating environmental effects. The analysis will evaluate consistency with the County’s Local Coastal Program and California Coastal Act, as relevant to the Proposed Project.

Mineral Resources
Dudek will utilize existing General Plans and EIRs to determine the location of potentially significant mineral resources in the Plan Area. This section will evaluate whether the Proposed Project would hinder the future use of mineral resources.

Noise
This section will include a description of noise and vibration fundamentals and descriptors, the existing noise environment and sensitive receptors, using information obtained from noise measurements taken during the preparation of the Laguna Creek Diversion Retrofit EIR and Santa Cruz Water Rights Project EIR. It is assumed that no new technical data will be collected to support this analysis and Dudek will refer to noise analyses

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completed for the Laguna Creek Diversion Retrofit EIR and Santa Cruz Water Rights Project EIR to develop a qualitative analysis of noise that would occur as a result of the Proposed Project. Dudek will qualitatively discuss existing noise and vibration levels associated with existing facilities and operations and maintenance activities, as well as the construction and permanent vibration characteristics of the conservation measures.

Population and Housing
The ASHCP would consist of modifications and improvements to existing infrastructure, habitat restoration and sediment control projects, and maintaining minimum bypass flows at all City diversions. This section will document that the Proposed Project would not displace people or housing, and describe whether the Proposed Project would generate any new short-term or long-term employment. This section will also discuss whether the Proposed Project could result in indirect population growth through, for example, extension of infrastructure or procurement of additional water supplies.

Public Services
This section will discuss any temporary demand for services during construction activities, and discuss that Proposed Project operation would not entail new land uses or activities that would generate additional population and demand for public services, nor would it include residences or businesses. Given that, the section will describe that the Proposed Project would not be expected to result in the need for new or physically altered public service facilities in order to maintain acceptable service ratios, response times, or other public service performance objectives, and thus would not require any new or expanded facilities in order to maintain such service ratios, response times, or other performance objectives.

Recreation
This section will describe formal and informal recreational uses in the Loch Lomond Recreation Area and other watershed lands in the Plan Area. The analysis will describe whether the Proposed Project would include recreational facilities or require the construction or expansion of recreational facilities, and document that the Proposed Project would not generate additional population that would increase the use of existing neighborhood and regional parks or recreational facilities such that substantial physical deterioration would occur. The analysis will also draw from hydrologic and water supply modeling performed for the Santa Cruz Water Rights Project EIR to document beneficial impacts of the Proposed Project related to increased lake levels at Loch Lomond Reservoir.

Transportation
This section will focus on the ASHCP’s potential direct effects of construction traffic related to conservation actions identified in the ASHCP to upgrade the Felton, Tait, Laguna, and Majors diversion facilities. Dudek will use information from the Laguna Creek Diversion Retrofit EIR and Santa Cruz Water Rights Project EIR to describe the proposed and likely routes for construction access and then summarize, through the use of existing County or local City General Plan or other recent EIR data, the existing transportation infrastructure and associated functionality. It is assumed that the City will provide Dudek with a full summary of the transportation routes, frequencies, types of trips, and types of equipment that would be used during construction activities, as well as operations and maintenance activities. A level of service analysis and assessment of vehicle miles traveled is not warranted due to the relatively low, temporary traffic volumes related to construction and operations/

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maintenance activities. The CEQA analysis will qualitatively discuss construction-related trips based on routes and information developed in Task 1 and provided by the City to determine if any construction hazards related to transportation facilities may result with the Proposed Project.

Tribal Cultural Resources
This section will be prepared based on the cultural resources technical report described in Task 2.2.

Utilities and Service Systems
Dudek will utilize information from the Santa Cruz Water Rights Project EIR to provide a water supply evaluation associated with operational changes to the City’s water system related to minimum bypass flows. Dudek will also evaluate impacts, if any, related to the provision of new or expanded facilities for wastewater, stormwater, and solid waste.

Wildfire
Dudek will describe the locations of state and local responsibility areas and very high fire hazard severity zones within the Plan Area. The impact analysis will evaluate whether the Proposed Project could impair an emergency response or evacuation plan, cause exposure to pollutant concentrations or uncontrolled spread of a wildfire, exacerbate fire risk, or expose people or structures to significant post-fire risks.

Task 4.2 Deliverables
▪ Administrative Draft IS/MND (electronic copy)
▪ 2nd Administrative Draft IS/MND (electronic copy) (OPTIONAL TASK) Task 4.3 Screencheck Draft IS/MND
Dudek will revise the Administrative Draft IS/MND in response to one round of consolidated City comments and provide a Screencheck Draft IS/MND to the City showing all Track Changes and responses to comments for City review to ensure the document is adequate and addresses all prior comments, as well as a “clean” version with all edits and comments accepted. Comments on the Screencheck Draft IS/MND are assumed to be minor in nature requiring limited effort to respond to.

Task 4.3 Assumptions
▪ Comments on the Screencheck Draft IS/MND are assumed to be minor in nature requiring limited effort to respond to.

Task 4.3 Deliverables
▪ Screencheck Draft IS/MND (electronic copy)
Task 4.4 Public Draft IS/MND
Upon City approval of the Screencheck Draft IS/MND, Dudek will finalize the Public Draft IS/MND and submit a final PDF ready for web posting to the City. Dudek’s publication group will prepare a 508-compliant Draft IS/MND or distribution (basic level). Dudek will also prepare the State Clearinghouse Notice of Completion (NOC) and Summary Form, and the Notice of Intent (NOI) to Adopt a MND, which will be included with the submittal of the

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Public Draft IS/MND to the City, and assist with the distribution list, including local agencies and other interested stakeholders. Dudek will electronically distribute the documents to the approved mailing list, as directed by City staff. We will also provide a draft newspaper ad for the City to post in the Santa Cruz Sentinel, and provide electronic versions suitable for posting to the City website. Dudek assumes that the City will coordinate the posting of the NOI with the Santa Cruz County Clerk’s office and will submit the NOC, Summary Form, NOI, and IS/MND to the State Clearinghouse for a 30-day public review period. Filing fees for the NOI and IS/MND at the County Clerk’s office and newspaper noticing fees are not included in this scope and fee.

Task 4.4 Assumptions
▪ Comments on the Screencheck Draft Initial Study are assumed to be minor in nature requiring limited effort to respond to.
▪ Filing fees for the NOI and IS/MND at the County Clerk’s office and newspaper noticing fees are not included in this scope and fee.

Task 4.4 Deliverables
▪ Public Draft IS/MND adequate for web posting (electronic copy; no more than five hard copies, if requested)
▪ NOI for general release
▪ Newspaper ad
▪ NOC and Summary Form for State Clearinghouse submittal ▪ Administrative Record, including all references cited (digital format) Task 4.5 Final IS/MND and MMRP
Following public review, Dudek will prepare an appendix to the IS/MND addressing substantive environmental comments received during the review period. Dudek will submit the draft responses to comments appendix to City staff for review. Dudek will then incorporate all comments and submit the final responses. For budgeting purposes, preparation of responses to a maximum of 10 public comment letters of limited scope and length is anticipated. It is also assumed that such letters do not require major changes to the IS/MND or new or substantially revised technical analyses, and/or do not otherwise raise complex issues requiring substantial research, agency coordination, or additional technical analysis. If additional, complex, or lengthy public comment letters beyond what is currently contemplated are received, such letters can be responded to with a scope augmentation. A Final MND package will be prepared consisting of the IS/MND (with any revisions resulting from public review), responses to comments, and the Mitigation Monitoring and Reporting Program (MMRP). The responses to comments and MMRP will be included as appendices to the IS/MND. The scope of work and budget estimate for this task assumes that the Proposed Project does not become controversial resulting in the need to prepare additional responses or additional technical analyses, and/or to conduct additional consultations and review with the City.

Dudek will also prepare the Mitigation Monitoring and Reporting Program (MMRP), which will identify the impacts, mitigation measures, timing of implementation, method of implementation, and responsible parties. The MMRP will describe the method by which mitigation measures will be implemented. The MMRP will include each mitigation measure identified in the IS/MND, including the agency/department responsible for ensuring compliance, the method of implementation, and the compliance report.

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Dudek will also draft the Notice of Determination (NOD) for filing with the State Clearinghouse.

Task 4.5 Deliverables
▪ Administrative Final IS/MND (electronic copy)
▪ Screencheck Final IS/MND (electronic copy)
▪ Final IS/MND suitable for web posting with 508 compliance (basic level) ▪ Draft and Final MMRP with 508 compliance (basic level) ▪ Draft and Final NOD for State Clearinghouse filing
▪ Updated Administrative Record
Task 4.6 Focused EIR (Optional)
During the preparation of the IS, if it is determined that the Proposed Project would have one or more impacts that would be significant and unavoidable, or if there are other reasons the City determines that an EIR is warranted, Dudek will move forward with preparing a Focused EIR, which will require a scope augmentation. A cost range for a focused EIR is provided in the cost estimate provided in Table 3.

TASK 5 PROJECT MANAGEMENT AND MEETINGS
Task 5.1 Project Management
Dudek will undertake a variety of general project management tasks throughout the preparation period of the NEPA and CEQA documents, including monthly invoicing, status reporting, and schedule updates, as needed. Our Project Director, Ann Sansevero, and Project Manager, Catherine Wade, will provide input on scope, budget, contract negotiation and management, scheduling, and quality assurance for all work conducted. With oversight from Ann, Catherine will lead day-to-day activities associated with the Project, which will include regular contact with the City. She will also provide direction to all team members to ensure internally consistent and coherent documents, and review of all submittals.

Task 5.1 Deliverables
▪ Monthly invoices and progress reports
Task 5.2 Meetings
This task includes regular 1-hour status calls or meetings between the Dudek Project Director, Project Manager, City, NMFS, and legal counsel over the course of the 12-month project schedule on a biweekly basis (Dudek will prepare for and attend a total of 24 hours of calls/meetings). Some of these calls may also include CDFW. This scope includes an allowance for attendance by technical staff at up to 5 hours of calls. Documentation for these meetings is anticipated to include brief call agendas and the tracking of action items from the meetings.

Task 5.2 Deliverables
▪ Project meeting agendas and action item summaries

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4 Subconsultant
Dudek’s subconsultant, Jeff Hagar of Hagar Environmental Science (HES), will assist with the biological resources analysis related to fisheries. Jeff’s primary role will be advisory in nature and he will also review and refine the fisheries analyses compiled by Dudek from the ASHCP, the Santa Cruz Water Rights Project, and related fisheries modeling. New field work and new or revised fisheries modeling is not covered by this scope of work. If it is determined that such additional work is required, this will require a scope augmentation. Jeff will also prepare the Essential Fish Habitat analysis for the EA. HES’s tasks will be limited to the time and materials budget estimate included in Table 3.
5 Preliminary Schedule
Dudek’s estimated preliminary schedule showing the expected sequence of tasks and deliverables for completion of the NEPA and CEQA processes is outlined below in Table 2. As shown, we expect to complete the NEPA and CEQA documents in approximately 12 months. The schedule will need to be reviewed and refined with the City and NMFS based on the Notice to Proceed date and other refinements during the project initiation period.

Table 2. Preliminary Schedule
Task Name Duration Start Finish
Notice to Proceed 0 days Wed 6/29/22 Wed 6/29/22

1. Project Initiation 15 days Wed 6/29/22 Wed 7/20/22
Kickoff Meeting 1 wk Wed 6/29/22 Wed 7/6/22
Receipt of all data needs 2 wks Thu 7/7/22 Wed 7/20/22

2. Technical Studies 40 days Thu 7/7/22 Wed 8/31/22

2.1. Biological Resources Analysis 8 wks Thu 7/7/22 Wed 8/31/22

2.2. Cultural Resources Report 8 wks Thu 7/7/22 Wed 8/31/22

3. NEPA Documentation 247 days Thu 7/21/22 Thu 7/6/23

3.1. Purpose and Need Statement 20 days Thu 7/21/22 Wed 8/17/22 Prepare Purpose and Need Statement and
Proposed Action and Alternatives Description
2 wks Thu 7/21/22 Wed 8/3/22
NMFS Review 2 wks Thu 8/4/22 Wed 8/17/22

3.2. Administrative Draft EA 85 days Thu 8/18/22 Mon 12/19/22 Prepare Internal Administrative Draft EA 6 wks Thu 8/18/22 Thu 9/29/22 City Review 3 wks Fri 9/30/22 Thu 10/20/22
Prepare Administrative Draft EA 4 wks Fri 10/21/22 Thu 11/17/22 NMFS Review 4 wks Fri 11/18/22 Mon 12/19/22
Prepare 2nd Administrative Draft EA 3 wks Tue 12/20/22 Tue 1/10/23 NMFS Review 3 wks Wed 1/11/23 Tue 1/31/23

3.3. Screencheck Draft EA 30 days Wed 2/1/23 Tue 3/14/23 Prepare Screencheck Draft EA 3 wks Wed 2/1/23 Tue 2/21/23 NMFS Review 3 wks Wed 2/22/23 Tue 3/14/23

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Table 2. Preliminary Schedule
Task Name Duration Start Finish

3.4. Draft EA 42 days Wed 3/15/23 Thu 5/11/23
Prepare Draft EA 2 wks Wed 3/15/23 Tue 3/28/23
NMFS Clearance/Signoff 2 wks Wed 3/29/23 Tue 4/11/23
30-day public review period 30 edays Tue 4/11/23 Thu 5/11/23

3.5. Final EA 70 days Fri 5/12/23 Thu 8/17/23
Prepare Administrative Final EA 3 wks Fri 5/12/23 Thu 6/1/23 NMFS Review 4 wks Fri 6/2/23 Thu 6/29/23
Prepare Screencheck Final EA 2 wks Fri 6/30/23 Thu 7/13/23 NMFS Review 2 wks Fri 7/14/23 Thu 7/27/23
Prepare Final EA 1 wk Fri 7/28/23 Thu 8/3/23
NMFS Clearance/Signoff 2 wks Fri 8/4/23 Thu 8/17/23

4. CEQA Documentation 306 days Thu 7/21/22 Wed 9/27/23

4.1. CEQA Project Description 30 days Thu 7/21/22 Wed 8/31/22 Prepare CEQA Project Description 4 wks Thu 7/21/22 Wed 8/17/22 City Review 2 wks Thu 8/18/22 Wed 8/31/22

4.2. Administrative Draft IS/MND 95 days Thu 9/1/22 Tue 1/17/23 Prepare Administrative Draft IS/MND 15 wks Thu 9/1/22 Mon 12/19/22 City Review 4 wks Tue 12/20/22 Tue 1/17/23

4.3. Screencheck Draft IS/MND 40 days Wed 1/18/23 Tue 3/14/23 Prepare Screencheck Draft IS/MND 5 wks Wed 1/18/23 Tue 2/21/23 City Review 3 wks Wed 2/22/23 Tue 3/14/23

4.4. Public Draft IS/MND 42 days Wed 3/15/23 Thu 5/11/23 Prepare Public Draft IS/MND 4 wks Wed 3/15/23 Tue 4/11/23 30-day public review period 30 edays Tue 4/11/23 Thu 5/11/23

4.5. Final IS/MND and MMRP 99 days Fri 5/12/23 Wed 9/27/23 Prepare Administrative Final IS/MND 4 wks Fri 5/12/23 Thu 6/8/23 City Review 2 wks Fri 6/9/23 Thu 6/22/23
Prepare Screencheck Final IS/MND 1 wk Fri 6/23/23 Thu 6/29/23 City Review 2 wks Fri 6/30/23 Thu 7/13/23
Prepare Final IS/MND and MMRP 1 wk Fri 7/14/23 Thu 7/20/23 Water Commission Presentation (1st Monday of the
month)
0 days Mon 8/7/23 Mon 8/7/23
City Council Consideration of IS/MND and MMRP and
Project Approval (2nd/4th Tuesdays)
0 days Tue 8/22/23 Tue 8/22/23
Notice of Determination 0 days Mon 8/28/23 Mon 8/28/23
Statute of Limitations 30 edays Mon 8/28/23 Wed 9/27/23 Exhibit C-ASHCP-1

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SUBJECT: REVISED PROPOSAL FOR CITY OF SANTA CRUZ ASHCP NEPA AND CEQA SERVICES MAY 2022 27
6 Cost Estimate
A time-and-materials cost estimate for the above scope of work and anticipated schedule is presented in Table 3 below. The estimate is based on our professional services contract with the City and the rates attached to that contract. The cost estimate reflects our understanding of the Project scope and the environmental issues known at this time, and it is based on the proposed schedule and scope assumptions presented throughout the proposal.

Table 3. Cost Estimate
Primary Tasks Fee Estimate
Task 1. Project Initiation $3,300
Task 2. Technical Studies —
Task 2.1. Biological Resources Analysis (Dudek) $19,630 Task 2.1. Biological Resources Analysis (HES) $12,000
Task 2.2A. Cultural Resources Analysis/Report $26,736
Task 2.2B. AB Consultation Support $1,790
Task 2.3. PM Review of Technical Studies $8,040
Task 3. NEPA EA Document4 $108,095
Task 4. CEQA IS/MND Document $90,780
Task 5. Project Management and Meetings $36,680
TOTAL BUDGET $307,050
Optional Tasks Fee Estimate*
Task 2.2.7. Prepare Finding of Effect $5,000 - $10,000
Task 4.2. 2nd Administrative Draft IS/MND $10,000 - $20,000 Task 4.6. Focused EIR $100,000 - $200,000
Note: *Fee estimates for optional tasks are presented are approximate ranges and are additional budget estimates above and beyond those presented for the primary tasks. If the City or NMFS decides that one or more of the optional tasks need to be implemented, a scope and budget augmentation will be prepared to more specifically scope and cost the relevant optional task or tasks.

We appreciate the opportunity to submit this proposal and look forward to working with the City on this important Project. Please feel free to contact Ann Sansevero, Project Director (831.600.1411 or [email protected]) or Catherine Wade, Project Manager (831.600.1410 or [email protected]) if you have any questions or require any additional information.

Sincerely,
____________________________ ______________________________ Ann Sansevero, AICP Catherine Wade, PhD
Project Director Project Manager
Exhibit B-ASCHP-1

37.31 City Council

AGENDA REPORT
DATE: 06/16/2022
AGENDA OF: 06/28/2022
DEPARTMENT: Economic Development/Planning
SUBJECT: Second Amendment of the 555 Pacific Avenue Apartments Development Agreement (ED/PL)
RECOMMENDATION: Motion to:
1) Introduce for publication an ordinance approving the second amendment of the development agreement between Green Valley Corporation and the City of Santa Cruz for 94 residential condominiums and 4,680 square feet of commercial space within four separate tenant spaces fronting on Pacific Avenue at 555 Pacific Avenue; and
2) Approve terms for the second Amendment of the 555 Pacific Avenue Apartments Development Agreement and authorize the City Manager to execute the Amendment and related documents in a form to be approved by the City Attorney for the purpose of converting 94 Small Ownership Units (SOUs) to a 100% rental project subject to the City’s current inclusionary requirement of 20% in perpetuity.

BACKGROUND: In 2014, Barry Swenson Builder (the Developer) submitted an application for permits to construct a four-story building with 94 residential Small Ownership Units (SOUs) and 5,055 square feet of ground floor commercial space at 555 Pacific Avenue (the Project). The Planned Development Permit approved by the City Council on May 13, 2014 allowed an extra floor resulting in an additional 32 units to be constructed. As a public benefit, the Developer agreed to contribute $500,000 for public parking in the lower Pacific Avenue area.

After Project approvals, the developer ran into challenges securing financing for the project due to limited flexibility in the Covenants, Conditions and Restrictions of the Project (CC&Rs) restricting the maximum number of residential units that may be rented at any one time. The exisiting condition limited the developer’s flexibility to respond during down market conditions by increasing the number of rentable units when the sales of existing units on the market were underperforming. City staff agreed to recommend a variation in the SOU Ordinance rental requirements allowing for more gradual absorption of the for sale units in the housing market as part of a Development Agreement (DA). As a requirement of this SOU Ordinance variation, the City required that the Developer either increase the number of affordable units and/or provide inlieu fee contributions to the City’s Affordable Housing Trust Fund (AHTF).

At their January 7, 2016 meeting, the Planning Commission recommended that the City Council approve the proposed DA and further recommended specific affordability requirements as part of

38.1 the condition. On January 26, 2016 the City Council approved Ordinance No. 2016-02 approving the DA. The approved DA allows the Developer to rent all of the residential units for up to 15 years at which time the project would be required to be in compliance with all SOU Ordinance requirements, including owner occupancy of at least 50% of the units in the Project and a 15% or 14 unit inclusionary for-sale requirement. Per the options provided in the DA during the temporary rental period, the developer chose to provide seven (7) Housing Choice tenant voucher (Section 8) rentals and an in-lieu fee AHTF contribution totaling over $1.3 million that has since been leveraged to receive a State funding match that closed the funding gap on the 100% affordable Pacific Station South 70-unit rental apartments currently under construction.

At their June 2, 2022 meeting, the Planning Commission unanimously recommended on Consent that the City Council execute the proposed Second Amendment to the Development Agreement with the Green Valley Corporation to allow conversion of the SOU project to a 100% rental project with a 20% inclusionary requirement in perpetuity.

DISCUSSION: Over the last few years, the Developer approached the City about the desire to modify the existing DA, as the Developer had been unable to secure financing to convert the existing construction loan to permanent financing due to the requirements surrounding the sale of the units. More recently, it was determined that financing restrictions in the housing market will not support availability of financing for individual entry level ownership of initial sales of at least 50% of the units, as restricted by the Development Agreement, and the Developer is now requesting conversion of the Small Ownership Project (SOU) to rental only, fully compliant with the City’s current inclusionary requirement (20% or 19 units @ 80% Area Median Income (AMI)) including 12 rental units reserved for Low Income households at 80% of AMI rents and seven (7) rental units reserved for Very Low Income households at 50% of AMI rents, providing deeper affordability than the City’s inclusionary requirement. In addition to minor nonsubstantive changes to the DA to account for updated reference terms to acknowledge that the project is now constructed, the proposed substantive terms of this second amendment are as follows:
1) Section 1: Removal of non-relevant definitions in Article 1 and updated “Developer” definition to name 555 Pacific LLC as successor in interest to Green Valley Corporation, doing business as Barry Swenson Builder;
2) Section 2.4: Clarification of transfer and assignment rights, including rights of present and future secured lenders;
3) Section 3.7: Deletion of entire section referencing creation of Tentative Map and formal condominium plan;
4) Section 4.2: Updating language to reflect that Developer has made all required payments under the Development Agreement and has satisfied Condition of Approval No. 87 for the Project related to the payment of $500,000 as a public parking contribution;
5) Section 4.4: Updating language to reflect change from a SOU project to a 100% rental project subject to the City’s current inclusionary requirement of 20%;

38.2 6) Section 4.5: Updating language to the Covenants, Conditions and Restrictions of the Project to reflect the change from a SOU Project to a 100% rental project.

Health in All Policies (HiAP)
HiAP is a collaborative approach to improving the health of all people by incorporating health considerations into decision-making across sectors and policy areas. HiAP is based on 3 pillars:
equity, public health, and sustainability. The goal of HiAP is to ensure that all decision-makers are informed about the health, equity, and sustainability impacts of various policy options during the policy development process. With this project located near the downtown core, it encourages a sustainable and healthy lifestyle allowing residents to walk and ride to the job center and commercial uses in the downtown vicinity. The apartment building is also located in close proximity to public transit thereby further promoting sustainable transportation use by residents.

FISCAL IMPACT: Staff has prepared a draft Ordinance and DA second amendment for City Council review. The proposed DA second amendment will help continue to provide rental housing supply that is greatly needed in the City. At the time of the original project approval, the City had a 15% inclusionary requirement. Since that time, the City’s inclusionary requirement has been increased to 20% @ 80% AMI, with which the project will be fully compliant, including seven (7) of the rental units providing deeper affordability at the 50% AMI rent level.

The developer is covering the staff, legal and other costs related to the DA amendments so there will be no impact to the General Fund by the proposed amendment.

Prepared By:

Jessica de Wit
Housing and Community
Development Manager
Submitted By:

Bonnie Lipscomb Director of
Economic Development &
Housing
Lee Butler Director of
Planning & Community
Development
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. ORDINANCE.DOC

2. DEVELOPMENT AGREEMENT (DA).PDF

3. FIRST AMENDMENT TO DEVELOPMENT AGREEMENT.PDF

4. DRAFT SECOND AMENDMENT TO DA.PDF

38.3 ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ APPROVING

THE SECOND AMENDMENT OF THE DEVELOPMENT AGREEMENT BETWEEN

GREEN VALLEY CORPORATION (DEVELOPER) AND THE CITY OF SANTA CRUZ FOR 94 RESIDENTIAL CONDOMINIUMS (SMALL OWNERSHIP UNITS) AND 4,680

SQUARE FEET OF COMMERCIAL SPACE WITHIN FOUR SEPARATE TENANT SPACES FRONTING ON PACIFIC AVENUE AT 555 PACIFIC AVENUE
WHEREAS, Green Valley Corporation, owners of property located at 555 Pacific Avenue (“applicant”), also known as Assessor’s Parcel Number 007-023-17 constructed an approved project (CP13-0021) including a four-story building with 94 residential Small Ownership Units (SOUs) and 4,680 square feet of ground floor commercial space with outdoor seating and below-grade parking structure located on a vacant lot in the CBD-E/CZ-O/FP-O zoning district; and
WHEREAS, Section 24.12.1530 of the Zoning Ordinance previously prohibited the rental of more than 50 percent of the Small Ownership Units (SOUs) in any project; and WHEREAS, The applicant applied for a Development Agreement on October 19, 2015 to allow for temporary rental of up to 100% of the 94 proposed Small Ownership Units (SOUs); and
WHEREAS, the Planning Commission conducted a public hearing on January 7, 2016, and recommended that the City Council execute the Development Agreement with the Green Valley Corporation to allow a temporary rental period for the SOUs; and WHEREAS, the City Council conducted the requisite public hearing and approved Ordinance No. 2016-02 on January 26, 2016 allowing a 15 year transition rental period for the SOUs specified in the Development Agreement with several conditions; and WHEREAS, the Planning Commission conducted a public hearing on June 2, 2022, and unanimously recommended that the City Council execute the proposed Second Amendment to the Development Agreement with the Green Valley Corporation to allow conversion of the SOU project to a 100% rental project with a 20% inclusionary requirement in perpetuity.

NOW, THEREFORE BE IT ORDAINED by the City Council of the City of Santa Cruz that the following terms are hereby approved:

Section 1. Second Amendment of the Development Agreement allows for a conversion of the SOUs to 100% rental units with 20% or 19 of the rental units provided as the City’s required inclusionary units in perpetuity of which seven (7) units will be reserved for Very Low Income households at 50% of Area Median Income (AMI) rents and 12 units will be reserved for Low Income households at 80% of AMI rents. The CC&Rs will be updated to reflect the change from an SOU project to a 100% rental project in a manner consistent with the provisions set forth in the City’s Municipal Code.

38.4 ORDINANCE NO.

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

PASSED FOR PUBLICATION this 28th day of June, 2022, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: __________________________
Sonja Brunner, Mayor
ATTEST: ______________________________
Bonnie Bush, City Clerk Administrator
This is to certify that the above
and foregoing document is the
original of Ordinance No. 2022-
XX and that it has been
published or posted in
accordance with the Charter of
the City of Santa Cruz.
___________________________
Bonnie Bush, City Clerk Administrator

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1 SECOND AMENDMENT TO DEVELOPMENT AGREEMENT
This Second Amendment to Development Agreement (this “Second Amendment”), made and entered into effective as of the date it is recorded in the Office of the County Recorder of Santa Cruz County (the “Effective Date”), amends the Development Agreement (as defined below) entered into by and between the CITY OF SANTA CRUZ, a charter city and municipal corporation of the State of California (the “City”), and 555 PACIFIC LLC, a California limited liability company (the “Developer”), under the authority of Section 65864 et seq. of the Government Code of the State of California, and Chapter 24.08, Part 25 of the City’s Municipal Code. Capitalized terms used herein but not herein defined shall have the meanings ascribed to them in the Development Agreement.

Recitals
A. The City and Green Valley Corporation, dba Barry Swenson Builder (the “Original Developer”) entered into that certain “Development Agreement relating to the development of the Property commonly known as 555 Pacific Avenue 007-023-17, which was recorded March 14, 2016 in the Office of the County Recorder of Santa Cruz County as Document No. 2016-0008532, and was amended by that certain First Amendment to Development Agreement dated as of February 27, 2018 between the City and Developer recorded on March 16, 2018 in the office of the County Recorder of Santa Cruz as document 2018-0007946 (the First Amendment together with the Development Agreement are collectively referred to herein as the “Development Agreement”). The Original Developer assigned all of Original Developer’s right, title and interest in, to and under the Development Agreement to Developer, pursuant to that certain Assignment and Assumption of Development Agreement dated as of March 31, 2016 (the “Assignment of Development Agreement”).

B. The Developer owns in fee or has a legal or equitable interest in certain real property totaling approximately 0.8 acres located at 555 Pacific Avenue, in the City of Santa Cruz, Santa Cruz County, California (the “Property”), whereupon the Developer developed and constructed a Small Ownership Unit Project (the Project”).

C. The City’s SOU Ordinance required the Project to be subject to CC&Rs restricting the maximum number of residential units that may be rented at any one time. Due to the large size of the Project, Developer indicated its desire to temporarily rent all or a portion of the 94 residential units to be developed within the Project to allow for the gradual absorption of units into the housing market. In consideration for the Developer’s construction of the entire 94-unit Project, the City and Developer entered into the Development Agreement to establish terms and conditions pursuant to which the Developer could rent out more than the maximum number of rental units otherwise allowed under the SOU Ordinance for a limited period of time, until market conditions and availability of financing for individual entry level ownership SOU units support initial sales of at least 50% of the Units. It has now been determined that financing restrictions in the housing market will not support availability of financing for individual entry level ownership of initial sales of at least 50% of the Units as restricted by the Development Agreement, and Developer therefore

38.59 2
desires that the Project be a 100% rental development.

D. The construction obligations set forth in the Development Agreement, including, without limitation, Section 3.7 thereof, were completed in accordance with, and as provided by, the terms of the Development Agreement.

E. Developer has made all required payments under the Development Agreement, including, without limitation, the Public Parking Contribution under Section 4.2 and the lump sum and ongoing payments to the City’s Affordable Housing Trust Fund under Section 4.4.d.

Developer took all necessary actions and made all optional payments under Section 4.4.d, inclusive of (i) the Public Parking Contribution under Section 4.2 of the Development Agreement, (ii) $100,000 one-time Affordable Housing Trust Fund contribution under Section 4.4.d.2 of the Development Agreement, (iii) any and all annual Affordable Housing Trust Fund contributions required to date under Section 4.4.d.2 of the Development Agreement and (iv) the one time lump sum payment of $1,400,000 required under Section 4.4.d.3 to waive the Supplementary Affordable Rental Unit requirement set forth in, among other places, Section 4.4.d.3 of the Development Agreement such that the Supplementary Affordable Rental Unit requirements, including, without limitation, those set forth in Section 4.4.d of the Development Agreement, are of no further force and effect.

F. Developer satisfied all requirements and conditions of the Development Agreement necessary for Developer to be entitled to the benefits of Section 4.4.d of the Development Agreement which, among other things, permit the rental of all Units at the Project for the Optional Rental Period, that does not exceed fifteen years from the issuance of the first certificate of occupancy for the Project.

G. In light of completion of the Project, performance and payments referenced herein, and established market conditions on financing, the City and Developer now desire to amend the Development Agreement to provide for the rental of all of the Units at the Project in perpetuity, and to clarify the rights of present and future secured lenders.

FOR GOOD AND VALUABLE CONSIDERATION, the receipt and sufficiency of which are hereby acknowledged, the City and Developer hereby amend the Development Agreement as follows:

Agreement

1. Incorporation. The Recitals set forth at the beginning of this Second Amendment, the introductory paragraph preceding the Recitals (i.e., the preamble), and all defined terms, acknowledgments, covenants, terms, and conditions set forth in either, or both of them, are true and correct, form a part of, and are by this reference hereby incorporated into, this Second Amendment as though set forth in full herein.

2. Definition of “Agreement”. The term “this Agreement”, as used in the

38.60 3
Development Agreement (modified pursuant to this Second Amendment), shall refer to the Development Agreement as modified herein.

3. Deleted Sections in Article 1. Notwithstanding any contrary language contained in the Development Agreement, Sections 8, 9, 17, 21, 23, 26, 31, 32, 33, 34, 35 and 37 of Article 1 of the Development Agreement are hereby deleted in their entirety.

4. Article 1, Section 13. Notwithstanding any contrary language contained in the Development Agreement, Section 13 of the Development Agreement is hereby deleted in its entirety and the following is substituted in its place:
“Developer” means 555 Pacific LLC, a California limited liability company as successor in interest to Green Valley Corporation, a California corporation, doing business as Barry Swenson Builder, and any successor or assign holding a legal or equitable interest in the Property. The Developer is, and shall always be, in good standing and qualified to conduct business in California.

5. Article 2, Section 2.4(b). Notwithstanding any contrary language contained in the Development Agreement, Article 2, Section 2.4(b), (c), (d) and (e) of the Development Agreement hereby deleted in their entirety and the following is substituted in its place:

Developer shall have the right to assign its rights hereunder, including the right to rent up to 100% of the Units, to a third party buyer or to an entity which continues to be under the control of Developer. This Agreement is binding against all successors and assigns of Developer.

6. Article 2, Section 2.4(f). Notwithstanding any contrary language contained in the Development Agreement, the first sentence of Article 2, Section 2.4(f) of the Development Agreement is hereby deleted in its entirety and the following is substituted in its place:

Mortgages, deeds of trust, sales and lease-backs or any other form of conveyance required for any commercially reasonable method of financing are permitted. The holder of any mortgage, deed of trust or other security arrangement with respect to the Property, or any portion thereof, shall not be obligated under this Agreement to construct or complete improvements or to guarantee such construction or completion, but shall otherwise be bound by all of the terms and conditions of this Agreement. Nothing in this Agreement shall be deemed to construe, permit or authorize any such holder to devote the Property, or any portion thereof, to any uses, or to construct any improvements thereon, other than those uses and

38.61 4
improvements provided for or authorized by this Agreement, subject to all of the terms and conditions of this Agreement.

7. Article 2, Section 2.8(d). Notwithstanding any contrary language contained in the Development Agreement, Article 2, Section 2.8(d) of the Development Agreement is hereby deleted in its entirety and the following is substituted in its place:

Notices to the Developer shall be given as follows:
555 Pacific, LLC
c/o Green Valley Corporation
777 North First Street, 5th Floor
San Jose, CA 95112
Attn: Legal Notices
Telephone: (408) 287-0246
Fax: (408) 998-1737

8. Article 3, Section 3.1. Notwithstanding any contrary language contained in the Development Agreement, Article 3, Section 3.1 of the Development Agreement is hereby deleted in its entirety and the following is substituted in its place:

Project.

The Project includes a four-story building with 94 residential Units, approximately 4,680 square feet of ground-floor commercial space within four commercial tenant spaces fronting on Pacific Avenue, and one below-grade basement level of parking, with 123 parking spaces and 144 bike parking spaces. The residential unit mix includes 39 studio (450 and 520 square feet) and 55 one-bedroom (650 square feet) Units. The Project was developed in accordance with plans prepared and submitted by Barry Swenson Builder on March 19, 2014, as approved by the City, with conditions.

9. Article 3, Section 3.7. Notwithstanding any contrary language contained in the Development Agreement, Article 3, Section 3.7 of the Development Agreement is hereby deleted in its entirety.

10. Article 3, Section 3.8. Notwithstanding any contrary language contained in the Development Agreement, the ultimate sentence of Article 3, Section 3.8 of the Development Agreement, is hereby deleted in its entirety.

11. Article 4, Section 4.2. Notwithstanding any contrary language contained in the Development Agreement, Article 4, Section 4.2 of the Development Agreement is hereby deleted in its entirety and the following is substituted in its place:

38.62 5
Public Parking Contribution.

Developer has made all required payments under the Development Agreement, including, without limitation, the Public Parking Contribution.

The Planned Development Permit allows a building height variation for a 42-foot, four-story building where the CBD-E zone district allows a maximum height of 35 feet and three stories. As a condition to development of the Project with this variation, Developer contributed FIVE HUNDRED THOUSAND DOLLARS ($500,000) (“Public Parking Contribution”) toward the construction of public parking in the downtown/South of Laurel Street area. This provision satisfies the requirements of Condition of Approval No. 87 for the Project (as provided in Resolution No. NS-28-776) which requires the City and property owner/applicant to enter into a parking agreement relating to this Public Parking Contribution.

12. Notwithstanding any contrary language contained in the Development Agreement, Article 4, Section 4.4 of the Development Agreement is hereby deleted in its entirety and the following is substituted in its place:

The residential portion of the Project includes 94 residential Units (each a “Unit” and collectively, the “Units”), including 39 studio units and 55 one-bedroom units. Developer shall rent 100% of the Units in perpetuity in exchange for the Developer agreeing to rent Twelve (12) Units to Low Income Households and Seven (7) Units to Very Low Income Households at an Affordable Rent based on unit size (each an “Affordable Rental Unit”), for so long as the Project is maintained as a mixed-use residential, with ground-floor commercial development.. For purposes of this Agreement, the terms “Low Income Household,” “Very Low Income Household,” and “Affordable Rent” shall be defined as set forth in Section 24.16.015 of the Santa Cruz Municipal Code. Prior to occupancy of any of the Units, Developer and City shall enter into and record against the Property a rent regulatory agreement in conformance with the requirements of Section 24.16.045 of the Santa Cruz Municipal Code. The right to rent 100% of the Units in perpetuity, as set forth herein, is transferrable to any successor or assign of Developer.

Before an Affordable Rental Unit may be rented out by the Developer, the Developer shall require the applicant to submit a completed standard City Measure O Eligibility Application to the Housing Authority of Santa Cruz County who, under contract with the City and with fees paid by the Developer, shall determine the initial eligibility of the applicant household. Results of the Housing Authority’s determination shall be provided to and must be acceptable to the City.

The lease or rental agreements for any Affordable Rental Units shall provide (i) for a term of not less than thirty (30) days to exclude any transient, fractional, hotel or time share

38.63 6
rentals, and (ii) in the case of the Affordable Rental Units, the tenant will not be eligible for relocation benefits upon the expiration or termination of the lease or rental term, (iii) the Developer or owner must honor the full term of any lease or rental agreement for an affected Unit, and provide tenants with at least 60 days written notice before a tenant is required to move if the subject rental Unit transitions to an ownership Unit.

13. Section 4.5 of the Development Agreement is hereby deleted in its entirety and the following is substituted in its place:

4.5 Covenants, Conditions and Restrictions; Maintenance of the Project.

The Developer has executed and recorded a declaration of covenants, conditions and restrictions (“CC&Rs”) in a form and content approved by the City, for the creation of a Homeowner’s Association (“HOA”) and establishing reciprocal easement and access rights, operation and maintenance conditions, and other conditions and restrictions as appropriate for the Project dated March 28, 2018, recorded as instrument number 2018- 0009542 in the Official Records of Santa Cruz County on April 2, 2018. The CC&Rs include owners maintenance and repair obligations; HOA dues to cover the costs and expenses of the HOA to manage and maintain the Project, including without limitation the common areas of the Project; residential rental restrictions including the requirement for all units that are being rented to have a written lease that has a minimum term of 30 days and excludes all transient, fractional, hotel, or time share use of the unit; the definition and exclusion of activities conducted in any unit or common area that might constitute a nuisance or unreasonably interfere with the use and quiet enjoyment of the occupants of any other Unit, and a minimum of standard noise and other behavioral guidelines that may be enforced by the HOA’s property management company. The CC&Rs include provisions requiring the property management company to notify the owner and any tenant of any Unit if there is a violation of the provisions contained in the CC&Rs, and provide the authority to penalize said owner for non-compliance with the CC&Rs. The CC&Rs also require any absentee landlords to provide the property management company with the tenant information that the property management company may require, including copies of all tenant leases.

The Developer, for itself and its successor and assigns, covenants that it shall maintain, or cause to be maintained, the Project and the Property in a manner consistent with the provisions set forth in the City’s Municipal Code, as may be amended from time to time, and the CC&Rs, when effective, and shall keep the Project and the Property reasonably free from any accumulation of debris or waste materials prior to and after completion of the Project.

The City acknowledges and agrees that the Property has not yet been converted to a condominium form of ownership and those provisions in the CC&Rs pertaining to the operation of the Property as a condominium shall not be applicable until such time, if any,

38.64 7
as the Property is so converted.

The City further acknowledges and agrees that in the event of any conflict between the terms and conditions of this Agreement and the terms and conditions of the CC&Rs, including, without limitation, the requirement in Section 3.2 of the CC&Rs limiting the leasing of residential units at the Property to fifty percent (50%) of such units at any one time, the provisions of the Development Agreement shall govern, including, without limitation, the provisions in Section 4.4 thereof which permit the leasing of up to 100% of the residential units at one time.

The City acknowledges and agrees that notwithstanding anything to the contrary in Section 11.7 of the CC&Rs or otherwise, the City’s consent is not required in connection with any amendment, modification, waiver or deletion of the provisions of Section 12.16 of the CC&Rs.

IN WITNESS WHEREOF, the parties have executed and delivered this Second Amendment as of the dates set forth next to their signatures, below.

CITY OF SANTA CRUZ,
a charter city a municipal corporation
of the State of California
By:
__________________________________
Its: __________________________________
555 PACIFIC, LLC, a California limited
liability company
By: ________________________________
Its: ________________________________
ATTEST:

By:
__________________________________
City Clerk
APPROVED AS TO FORM:

By:
__________________________________
City Attorney

38.65 1
Rosemary Balsley
From: A Webb <[email protected]>
Sent: Sunday, June 26, 2022 1:08 PM
To: City Council
Subject: 6.28.22 Item #38 - 555 Pacific DA amendment - Inclusionary Requirement Mayor and City Councilmembers,

The Inclusionary Ordinance clearly states that 20% of SROs are to be to Very Low Income (50% of AMI), or in this case 19 units.

This DA amendment states instead that of the 20% (19 units), 12 units will go to Low Income (80% of AMI) and only 7 units to Very Low Income (50% of AMI). This is in conflict with the Ordinance, and code, referenced below, as well as remarks in RHNA reports made by staff on achieving targets for VLI (50% of AMI).
---------- Forwarded message ---------
From: A Webb <[email protected]>
Date: Mon, May 30, 2022 at 2:43 PM
Subject: 6/2/22 Agenda Item #2 re:555 Pacific DA amendment - Inclusionary Requirement To: City Planning Commission <[email protected]> This is the 2nd amendment to this Development Agreement, converting SOU units to SRO rentals this time around.

There is a conflict in this DA amendment and related documents with the City Inclusionary Ordinance on the 20% Inclusionary requirement, as referenced below.

Reminder: Staff has stated in various recent RHNA reports that the intention is to use SROs to meet the Very Low Income requirements, consistently short of targets
Staff report states that this DA amendment meets the 20% Inclusionary Requirement for SRO (19 units) by offering 12 units to Low Income at 80% of AMI, and 7 units to Very Low Income at 50% AMI, claiming it is a deeper level of affordability than required.

Per ordinance, 20% (19 units) must all be offered to Very Low Income at 50% of AMI to comply with the SRO inclusionary requirement.

Obviously, any landlord can accept Section 8 vouchers for "affordable" rent units if they choose, and still receive a market rate rent. The first amendment on this DA included using these vouchers for 7 units (not the same as "affordable" rent definitions).

Reference Ordinance Definitions:
https://www.codepublishing.com/CA/SantaCruz/#!/SantaCruz24/SantaCruz2416.html#24.16.205 Chapter 24.16 Affordable Housing Provisions

5. Rental Residential Developments with Five or More Dwelling Units. For rental residential developments that would create five or more new or additional dwelling units and/or live/work units at one location, the applicant shall provide inclusionary units as follows:

38.66 2
b. SRO Developments. In a rental residential development comprised of SRO units, twenty percent of the single-room occupancy units shall be made available for rent to very low income households at an affordable rent.

2. “Affordable rent” means monthly housing expenses, including rent, utilities, and all fees for housing services, which does not exceed the following:
b. For very-low-income households: fifty percent of area median income, adjusted for assumed household size based on unit size, multiplied by thirty percent and divided by twelve.

Under HSC,
DIVISION 31,
PART 1
,
CHAPTER 2,
50105.
(a) “Very low income households” means persons and families whose incomes do not exceed the qualifying limits for very low income families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937. These qualifying limits shall be published by the department in the California Code of Regulations as soon as possible after adoption by the Secretary of Housing and Urban Development. In the event the federal standards are discontinued, the department shall, by regulation, establish income limits for very low income households for all geographic areas of the state at 50 percent of area median income, adjusted for family size and revised annually.

Sincerely,
Anita Webb

38.67 1
Rosemary Balsley
From: A Webb <[email protected]>
Sent: Sunday, June 26, 2022 1:08 PM
To: City Council
Subject: 6.28.22 Item #38 - 555 Pacific DA amendment - Inclusionary Requirement Mayor and City Councilmembers,

The Inclusionary Ordinance clearly states that 20% of SROs are to be to Very Low Income (50% of AMI), or in this case 19 units.

This DA amendment states instead that of the 20% (19 units), 12 units will go to Low Income (80% of AMI) and only 7 units to Very Low Income (50% of AMI). This is in conflict with the Ordinance, and code, referenced below, as well as remarks in RHNA reports made by staff on achieving targets for VLI (50% of AMI).
---------- Forwarded message ---------
From: A Webb <[email protected]>
Date: Mon, May 30, 2022 at 2:43 PM
Subject: 6/2/22 Agenda Item #2 re:555 Pacific DA amendment - Inclusionary Requirement To: City Planning Commission <[email protected]> This is the 2nd amendment to this Development Agreement, converting SOU units to SRO rentals this time around.

There is a conflict in this DA amendment and related documents with the City Inclusionary Ordinance on the 20% Inclusionary requirement, as referenced below.

Reminder: Staff has stated in various recent RHNA reports that the intention is to use SROs to meet the Very Low Income requirements, consistently short of targets
Staff report states that this DA amendment meets the 20% Inclusionary Requirement for SRO (19 units) by offering 12 units to Low Income at 80% of AMI, and 7 units to Very Low Income at 50% AMI, claiming it is a deeper level of affordability than required.

Per ordinance, 20% (19 units) must all be offered to Very Low Income at 50% of AMI to comply with the SRO inclusionary requirement.

Obviously, any landlord can accept Section 8 vouchers for "affordable" rent units if they choose, and still receive a market rate rent. The first amendment on this DA included using these vouchers for 7 units (not the same as "affordable" rent definitions).

Reference Ordinance Definitions:
https://www.codepublishing.com/CA/SantaCruz/#!/SantaCruz24/SantaCruz2416.html#24.16.205 Chapter 24.16 Affordable Housing Provisions

5. Rental Residential Developments with Five or More Dwelling Units. For rental residential developments that would create five or more new or additional dwelling units and/or live/work units at one location, the applicant shall provide inclusionary units as follows:

38.68 2
b. SRO Developments. In a rental residential development comprised of SRO units, twenty percent of the single-room occupancy units shall be made available for rent to very low income households at an affordable rent.

2. “Affordable rent” means monthly housing expenses, including rent, utilities, and all fees for housing services, which does not exceed the following:
b. For very-low-income households: fifty percent of area median income, adjusted for assumed household size based on unit size, multiplied by thirty percent and divided by twelve.

Under HSC,
DIVISION 31,
PART 1
,
CHAPTER 2,
50105.
(a) “Very low income households” means persons and families whose incomes do not exceed the qualifying limits for very low income families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937. These qualifying limits shall be published by the department in the California Code of Regulations as soon as possible after adoption by the Secretary of Housing and Urban Development. In the event the federal standards are discontinued, the department shall, by regulation, establish income limits for very low income households for all geographic areas of the state at 50 percent of area median income, adjusted for family size and revised annually.

Sincerely,
Anita Webb

38.69 City Council

AGENDA REPORT
DATE: 06/15/2022
AGENDA OF: 06/28/2022
DEPARTMENT: Public Works
SUBJECT: SitelogiQ Comprehensive Energy Solutions Program – Facility Solutions Agreement (PW)
RECOMMENDATION: Motion to:
1) Adopt a resolution to execute a Facility Solutions Agreement with SitelogiQ (Sacramento, CA) for the implementation of certain energy related improvements to City of Santa Cruz facilities; and
2) Adopt a resolution to apply and accept funding for the California Energy Commission ECAA loan program of up to $3,000,000; and
3) Apply and accept funding for a tax exempt municipal lease loan of up to $3,500,000; and 4) Direct the City Manager 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 budgets.

BACKGROUND: In November 2013, the City of Santa Cruz (City) commissioned an energy audit that identified energy efficiency upgrade opportunities to reduce energy costs and meet Climate Action Plan goals. Most of the projects identified in that audit, such as citywide streetlight retrofits, HVAC, City facility lighting retrofits, Harvey West pool pump replacement, and most recently the Harvey West Pool and Civic boiler replacements were completed through PG&E OBF loans and California Energy Commission grants, however significant energy infrastructure Capital Investment Projects (CIP) remained unfunded.

In November 2019, the City issued an RFP for energy services to select a qualified provider for the development, implementation, and monitoring of a comprehensive energy solutions program.

SitelogiQ was selected and provided a comprehensive City-wide site assessment. The preliminary analysis noted that while the City was successful in addressing a number of energy upgrades, there were still energy savings opportunities at a number of locations.

DISCUSSION: In August 2021, the City entered into a Letter of Agreement (LOA) for the Energy Conservation Measures (EMC) project development at three specific sites: Civic Auditorium, Soquel/Front Parking Garage, and Harvey West Park Ball Field. SitelogiQ met with city staff, performed physical audits for engineering review at each location, reviewed PG&E

39.1 energy data and billing, and developed advanced Helioscope solar designs for each site with targeted ECM that included estimated operating costs compared to existing operating costs.

The Civic Auditorium project includes a new roof, solar array, and the proposed Air Systems building automation controls is the similar system used at City Hall and Police Department. Staff have confirmed with the City’s Planning Department that a Historical Alteration Permit is not required for the roof restoration and solar installation. The Soquel/Front Parking Garage solar array will provide sunshade to vehicles parked on the top floor of the garage. The Harvey West Park Ball Field project includes both solar arrays to provide sunshade over the bleacher seats, and Musco LED lighting at all field locations. Musco Lighting is a preferred brand by the Dark Sky IDASC local chapter.

The financial objectives of the energy solutions project are to provide a self-funded program that pays for itself through expense reductions and minimizes the City’s contribution and is compliant with California Government code 4217.10 et seq for energy savings improvements.

The budgetary construction costs provided were “turn key” solutions that included costs and energy savings, as well as, future maintenance and repair costs over the next 25 years.

SitelogiQ will be applying on the behalf of the City for the California Energy Commission (CEC) Energy Conservation Assistance Act (ECAA) 1% financing loan. The CEC loan would support the necessary work related to all solar improvements at the facilities. The Civic Auditorium and Harvey West Park Ball Field sites require facility construction upgrades, such as the Civic Auditorium’s roof and supporting structures on the Harvey West Ball Field lights, are not covered by the CEC, however, the City can finance that work through a tax exempt municipal lease (TEML) loan. Current rates are at 3.5% and may change at the time of closing.

FISCAL IMPACT: If awarded, the CEC loan amount is up to $3 million with a 1% interest rate. Traditional financing from a TEML loan of $3.5 million is also necessary for the infrastructure repairs. Authority for debt service payments (30-year amortization) will be necessary for projects completed and reimbursed. Some of the identified projects are already included in the FY 2022-2026 CIP budget. Parks and Recreation has $400,000 budgeted in the Harvey West Ballfield Lighting project (c302218) to put towards the Harvey West Park Ball Field solar installation and Musco Lighting project. The TEML loan will fund the energy improvements with no payment in the first year after project completion. Proposed costs and targeted energy savings for all three projects will run through Fund 101 and Fund 741. The loans will be paid back through energy savings. The energy savings will also positively impact both funds after the first year of installation.

Prepared By:

Christina Alberti
Management Analyst
Filipina Warren
Public Works Operations
Manager
Submitted By:

Mark R. Dettle
Director of Public Works
Approved By:

Matt Huffaker
City Manager

39.2 ATTACHMENTS:

1. RESOLUTION – GOVERNMENT CODE 4217 SITELOGIQ CONTRACT.DOCX

2. RESOLUTION – CEC ECAA LOAN.DOCX

3. ECAA LOAN APPLICATION.DOCX

4. NOTICE OF EXEMPTION.PDF

39.3 RESOLUTION NO. NS-XX,XXX
APPROVAL OF FINDINGS FOR GOVERNMENT CODE SECTION 4217.10-4217.18,

APPROVAL OF FACILITY SOLUTIONS AGREEMENT BETWEEN CITY OF SANTA CRUZ “CITY” FOR THE PURPOSE OF CONSTRUCTION, INSTALLATION OF ENERGY

EFFICIENCY AND RENEWABLE GENERATION MEASURES ON SELECTED CITY SITES
WHEREAS, the City Council ("Council") has endorsed the goal of energy efficiency and directed staff to develop energy efficient and renewable generation projects for use at existing City sites. Based on an analysis of energy efficiency savings and capabilities the City has selected SitelogIQ based on their qualifications and references as to be “Best Value”; and WHEREAS, the City approved an agreement to enter into negotiations with SitelogIQ which proposes an Energy Conservation project to the City to include energy efficiency improvements to the sites including the use of Government Code Section 4217.10-4217.18 to implement additional scopes of work for Solar PV Power Generation and comprehensive lighting retrofits; and
WHEREAS, the Council has received, and reviewed information and data presented by City staff demonstrating that the cost to the City for Supplier to provide energy conservation and renewable generation measures pursuant to the Agreement will be less than the anticipated energy savings to the City; and SitelogIQ; and
WHEREAS, in order to maximize the cost savings from the energy project, the City desires to improve the building energy efficiency at specified sites with the scope of work; and NOW, THEREFORE, BE IT RESOLVED that based on comments, staff reports, and documentation reviewed by the Council, the Council makes the formal findings that the cost of the project will be offset by the anticipated savings in energy consumption; and BE IT FURTHER RESOLVED, that the Council hereby approves the Facility Solutions Agreement; and
BE IT FURTHER RESOLVED, that the City Manager or his designee is authorized to take such actions and execute such agreements and documentation necessary to affect the intent of this Resolution.

PASSED AND ADOPTED this 28th day of June, 2022 by the following vote:

AYES:

NOES:

ABSENT:

39.4 RESOLUTION NO. NS-XX,XXX
2 DISQUALIFIED:

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

39.5 RESOLUTION NO. NS-XX,XXX

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

SITELOGIQ AND CITY MANAGER TO COMPLETE AND SUBMIT ALL NECESSARY

DOCUMENTS AND APPLICATION FOR THE CEC ECAA LOAN PROGRAM AND

FINDING THE ACTIVITY FUNDED BY SUCH LOAN TO BE EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, the California Energy Commission provides loans to schools, hospitals, local governments, special districts, and public care institutions to finance energy efficiency improvements; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz that City Council of the City of Santa Cruz authorizes SitelogIQ to apply for an energy efficiency loan from the California Energy Commission to implement energy efficiency measures; and BE IT FURTHER RESOLVED, that in compliance with the California Environmental Quality Act (CEQA), City of Santa Cruz finds that the activity funded by the loan is a project that is categorically exempt under 15301, 15304,15311 and 15329 because the solar site proposed is part of an existing facility and/ or minor alterations to land; and BE IT FURTHER RESOLVED, that if recommended for funding by the California Energy Commission, the City Council of the City of Santa Cruz authorizes the City Manager to accept a loan up to $3,000,000.00; and
BE IT FURTHER RESOLVED, that the amount of the loan will be paid in full, plus interest, under the terms and conditions of the Loan Agreement, Promissory Note and Tax Certificate of the California Energy Commission; and
BE IT FURTHER RESOLVED, that City Manager, Matt Huffaker is hereby authorized and empowered to execute in the name of City of Santa Cruz all necessary documents to implement and carry out the purpose of this resolution, and to undertake all actions necessary to undertake and complete the energy efficiency projects.

PASSED AND ADOPTED this 28th day of June, 2022 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: __________________________
Sonja Brunner, Mayor

39.6 RESOLUTION NO. NS-XX,XXX
2 ATTEST: ___________________________
Bonnie Bush, City Clerk Administrator

39.7 Energy Conservation Attachment 1
Assistance Act (Revised 12/12/19) Page 1 of 6 ECAA Loan Application ATTACHMENT 1

ECAA LOAN APPLICATION

FOR CALIFORNIA ENERGY COMMISSION FINANCING PROGRAM
INTEREST RATE 1%

1. APPLICANT INFORMATION
Applicant/Legal Name:

City of Santa Cruz
Type of Entity: (please check one box)
 City  Special District
 County
 Public College or University
 Public Hospital /
Public Care Institution
 Other, please specify:
____________________
Mailing
Address: 809 Center Street City: Santa Cruz Zip: 95060
Street
Address: 809 Center Street City: Santa Cruz Zip: 95060
County: Santa Cruz County
Contact
Person: Matt Huffaker Title: City Manager
Email:
[email protected] Phone: 831-420-5010
Tax ID #: 94-6000427 Congressional District: 20th
Name of Utility Providers:

Electric: PG&E Gas: N/A Other:

How did you hear about the Energy Commission’s Loan Program? Check one:

Energy Commission Website, Energy Commission Staff Presentation, Literature at Trade Show or Workshop, Utility Company, recommendation by another State agency, or Other (Specify):

Other: Consulting Contractor (SitelogIQ)

39.8 Energy Conservation Attachment 1
Assistance Act (Revised 12/12/19) Page 2 of 6 ECAA Loan Application

39.9 Energy Conservation Attachment 1
Assistance Act (Revised 12/12/19) Page 3 of 6 ECAA Loan Application

2. PROJECT INFORMATION
A. Has applicant applied for, or expect to apply for any utility rebates/incentives?
 Yes. Please complete Section B.
 No.

B. Source of Rebates/Incentives: ____________________________ (Approximate) Amount: __________________________________ C. Are there other sources of funds?
X Yes. Project will not be fully funded by this loan.
 No.

If yes, list source of funds, type of funding and amount: Tax-Exempt Municipal Lease, or other private bank funding and self-funding. Amount:

Roughly $4,450,000.00
NOTE: Projects funded by other loans will not be considered for an ECAA-Ed loan.

D. Brief Project Description:

This project consists of exterior lighting retrofits across (1) sites and carport/ shade structure and roof mounted solar arrays at (3) city sites.

3. PROJECT SCHEDULE
Estimated start date: 1/02/2023
Estimated completion date: 1/02/2024

39.10 Energy Conservation Attachment 1
Assistance Act (Revised 12/12/19) Page 4 of 6 ECAA Loan Application

4. PROJECT BUDGET
Total project costs: (include all labor engineering, construction, materials, equipment, inspection demolition (if applicable) and removal (if applicable, less equipment salvage value, (if applicable):
$ 3,000,000
Loan amount requested from the Energy Commission:
$ 3,000,000

5. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) COMPLIANCE A. Is there documentation provided as an attachment to this application demonstrating the lead agency’s compliance with CEQA? (See Attachment 4, CEQA Information for required documents.)  Yes, go to B.
 No: Begin preparation of CEQA documentation. See requirements in the Program Opportunity Notice (see Attachment 4) before submitting application. Send environmental documents to the Energy Commission, Environmental Office during the CEQA public review period. Be sure to identify yourself as a loan applicant and the Energy Commission as a responsible agency.

B. Is CEQA compliance by the lead agency complete?
X Yes, go to C. ___No
Send environmental documents to the Energy Commission,
Environmental Office during the CEQA public review period. Be sure to identify yourself as a loan applicant and the Energy Commission as a responsible agency. If the public review period has closed, but the lead agency has not acted on the project, attach all relevant environmental documents to this application and provide anticipated date of lead agency action on the project:

Date: ________________
C. What finding did the lead agency make? Measures funded by the loan are:
 Not a project. Describe why all measures to be funded by the loan are not CEQA projects, and provide analysis supporting the conclusion that the measures are not a project:

39.11 Energy Conservation Attachment 1
Assistance Act (Revised 12/12/19) Page 5 of 6 ECAA Loan Application  A project under CEQA, and is exempt: List applicable exemption:
__ Statutory (list code section): ________________
X_ Categorical (list section from CEQA Guidelines): 15301, 15303, 15311, 15329
Was a Notice of Exemption filed?  No  Yes
If yes, Date Filed: _______________
 A project under CEQA, and is not exempt. Applicant prepared the following environmental document:
__ Initial study + Negative Declaration
__ Initial study + Mitigated Negative Declaration
__ Environmental Impact Report
__ Other (describe)
Notice of Determination filed?  No  Yes Date Filed:
_______________
Was a Statement of Overriding Considerations adopted?  No  Yes If yes, date: __________

6. APPLICATION DOCUMENTS
Please include all of the following:
 Completed Loan Application (Attachment 1)
 Summary of Energy Measures (Attachment 2)
 Feasibility Study/Audit (may be submitted in a CD or flash drive)  Utility Billing Data - Copies of 12-24 months of past energy data and rate schedules for electric, natural gas utilities, or other energy sources (unless utility billing data is included in the feasibility study).billing records from electric and gas utilities (unless included in the feasibility study).
 Signed Resolution or Documentation on of Applicant’s Authority to enter into the loan agreement (see Attachment 3 for a sample Resolution)  CEQA Compliance Documentation (see Attachment 4 for more information)

39.12 Energy Conservation Attachment 1
Assistance Act (Revised 12/12/19) Page 6 of 6 ECAA Loan Application

7. CERTIFICATION
To the best of my knowledge and belief, I certify:
 The information in this application is correct and complete.  By signing this application, applicant is eligible to receive state funding under all applicable laws, including but not limited to Chapter 2.8 “Project Labor Agreements”, Part 1, of Division 2 of the Public Contract Code.  By signing this application, applicant does not intend to close or otherwise dispose of the building within the simple payback.
 I have read, understand, and do hereby accept the loan agreement terms, and, further, I am willing to enter into an agreement with the Energy Commission according to the terms offered and will timely sign loan documents if the application is funded.

For Assistance:

Email: [email protected]
(855) 279-6280
(916) 654-4104
Name of Authorized
Representative: Matt Huffaker
Title: City Manager
Signature of Authorized
Representative:

Date: Phone: Email:

39.13 Statutory Exemptions. State code number:

_______________________________________________
Print Form
Notice of Exemption Appendix E
To: Office of Planning and Research From: (Public Agency): ____________________________ P.O. Box 3044, Room 113 _______________________________________________ Sacramento, CA 95812-3044 County Clerk
(Address)
___________________________
___________________________
County of: __________________
Project Title: ____________________________________________________________________________ Project Applicant: ________________________________________________________________________ Project Location - Specific:

Project Location - City: ______________________ Project Location - County:

Description of Nature, Purpose and Beneficiaries of Project:
_____________________
Name of Public Agency Approving Project: _____________________________________________________ Name of Person or Agency Carrying Out Project: ________________________________________________ Exempt Status: (check one):

Ministerial (Sec. 21080(b)(1); 15268);
Declared Emergency (Sec. 21080(b)(3); 15269(a));
Emergency Project (Sec. 21080(b)(4); 15269(b)(c));
Reasons why project is exempt:

Lead Agency
Contact Person: ____________________________ Area Code/Telephone/Extension: _______________ If filed by applicant:

1. Attach certified document of exemption finding.

2. Has a Notice of Exemption been filed by the public agency approving the project? Yes No Signature: ____________________________ Date:

Signed by Lead Agency Signed by Applicant
Authority cited: Sections 21083 and 21110, Public Resources Code. Date Received for filing at OPR:

Reference: Sections 21108, 21152, and 21152.1, Public Resources Code. _______________
Categorical Exemption. State type and section number: ____________________________________ ______________________________________________
______________ Title: _______________________
Revised 2011

39.14 City Council

AGENDA REPORT
DATE: 06/16/2022
AGENDA OF: 06/28/2022
DEPARTMENT: City Manager
SUBJECT: Collective of Results and Evidence-based (CORE) Final Award Recommendations (CM)
RECOMMENDATION: Motion to:

1. Approve FY 2023 Collective of Results and Evidence-based (CORE) Investments Request for Proposals final recommended awards in Attachment “List of Recommended Awards” and direct staff to work with Santa Cruz County (County) to execute agreements per the City - County Memorandum of Understanding (MOU) approved on June 7, 2022, for all final recommended awards prior to September 30, 2022; and

2. Approve three months of transition funding for all FY 2022 CORE programs that applied for and were not recommended for funding in FY 2023, so that, according to the MOU and amended per this direction, the County can pay the full 3-month transition contract award amounts prior to the agreements being finalized; and

3. Direct staff to return, with the County Human Services Department (HSD), with a report of all agreements executed, as well as any agreements with a revised dollar amount or where negotiations exceeded the September 30, 2022 deadline; and

4. Direct staff to return, with County HSD, on or before December 13, 2022, with an update on the 3-month transition funding, the newly established contracts and performance tracking mechanisms, efforts to explore other funding sources for current CORE funded agencies not being recommended for award, and progress on the lessons learned review of the request for proposal (RFP) process.

BACKGROUND: In 2015, the Santa Cruz County Board of Supervisors (Board of Supervisors or Board) approved a phased-in approach to transition from the historical Community Programs funding model to a results-based collective impact model. After extensive research, and in collaboration with a wide variety of stakeholders from multiple sectors, the HSD Community Programs funding process was transformed into a new model named the Collective of Results and Evidence-based (CORE) Investments. From the beginning, there was an acknowledgment that the CORE Investments model would evolve over time. The evolution of the CORE program, including the development of this RFP, has been community informed, Board and Santa Cruz City Council (Council) approved, and staff implemented.

40.1 On June 7, 2022, County HSD and City staff presented a list of programs recommended for CORE funding, as well as the process that was followed to implement the RFP, the opportunity to appeal, and analysis of the recommended awards. The Board of Supervisors and Council voted to approve the recommended awards for the CORE Investments funding, with the Board of Supervisors removing one (1) recommended grantee, the Harm Reduction Coalition of Santa Cruz County (HRC). The Council directed staff to explore transition plans, in conjunction with County HSD, for organizations that were not being recommended to be funded, and to report back.

DISCUSSION: CORE Investments is both a funding model and a movement designed to improve the health and well-being of county residents. Staff, in partnership with County HSD who shares in the funding of CORE programs, request the Council approve the expanded list of recommended awards from the CORE RFP, consider a new recommendation to fund a 3-month transition for all current CORE agencies not being recommended for award, work with HSD to have them execute agreements per the MOU, return to the Council with a report of agreements executed, and by December return with an update for the Council on the status of all activities related to CORE, and as listed in the recommended actions.

Analysis
The latest evolution of CORE as a framework strives for equitable health and well-being for Santa Cruz County residents across the eight CORE conditions through investing in programs, practices, policies and transformational system changes. The framework of the RFP behind the recommended awards varied from the structure of the RFP from the previous cycle of CORE awards, and the cumulative effect of following the pre-established process is that the slate of recommended grantees is different from current grantees. The County and City have received several detailed questions and comments about the process, communication, timelines and feedback about options that should be considered for the current CORE funding or for future RFPs. The information below will attempt to address some of these inquiries and provide recommendations for final CORE awards and next steps.

Communication with applicants
In recognition of the interest surrounding the award recommendations, the questions and comments made during the public hearings, and the impacts of the constrained timeline due to the COVID omicron variant, below is a summary of the communication with CORE applicants leading up to and following the announcement of recommended awards.

May 20, 2022 Email was sent to all applicants informing them that the recommended awards would be reviewed at the June 7, 2022 Board of Supervisors and Santa Cruz City Council meetings.

June 2, 2022 Email was sent to all CORE applicants informing them that the public meeting materials were published and informing them that individual award recommendations would be sent the morning of June 7, 2022, triggering the 3-day appeal timeline as described in the RFP. Links to the City and County meeting materials were embedded in the email.

40.2 June 7, 2022 Email was sent to each program applicant at the start of the day notifying them of whether they were recommended for an award or not, their score, and information on how to appeal according to the RFP.

Following questions during the public hearing, an email was sent to all CORE applicants clarifying their ability to request more information regarding their score and how they could request it.

Scoring summary sheets were provided to each organization that requested additional information regarding their score.

June 9, 2022 Starting June 9, and continuing as needed, rater comments were provided to organizations that requested additional information regarding their score, with the first sets of comments provided to those who explicitly asked for more after receipt of the scoring summary.

After providing the scoring summary, HSD received a handful of follow up requests from some organizations asking for more details, ranging from review panelists written comments, to individual rater names and scores.

It is not standard procurement practice to provide additional information to applicants prior to awards and contracts being finalized. Following careful deliberation that weighed standard practice with the unique context of CORE, HSD decided to release the aggregate comments for each program application, broken down by section.

Appeals
Nineteen organizations submitted an appeal. The General Services Department (GSD) reviewed and analyzed each appeal. A summary of the analysis done by GSD can be seen in Attachment “CORE Appeal Determinations”. Of the 19 appeals filed, there were 73 specific items, of which 30 were deemed statements or protests. Forty-three items were considered appeals within the RFP parameters and 42 were denied with one partially substantiated. The appeals process did not result in any change to the list of recommended awards presented on June 7, 2022.

Expectations for future contracts
The CORE contracts will continue to be based on Results Based Accountability principals and will ask agencies to provide data in three areas: How Much, How Well and Is Anyone Better Off. Contractors will be asked to collect and report on disaggregated demographic data for the people they serve, including zip code, ethnicity, gender, and age information. HSD will provide all CORE contractors a demographics questionnaire form that can be used to collect the required information. If organizations need assistance collecting the information, HSD can aid with developing data collection methods. The specific tracking will facilitate the ability to monitor contracts and track services and population-specific outcomes over time.

Considerations for reallocating funds within the parameters of the RFP After careful consideration, HSD recommends the Board approve two additional actions which, when implemented together, will work within the parameters of the RFP, and responds to

40.3 feedback from the community. To achieve this, the following funding changes are recommended:
• First, the department was directed to reallocate the recommended award from HRC, a medium-tier grant initially recommended for funding.
• Second, a 3% reduction in awards presented in the initial recommendation has been increased to 10% as allowed within the parameters of the RFP. • Finally, staff recommends the allocation of approximately $500,000 in one-time only general funds, combined from the County and City, to provide a three-month bridge of transition funding for all CORE programs in FY 2022 that applied, but were not awarded funding under this RFP. If necessary, staff will return to Council once the transition funding amount is determined for each jurisdiction.

Staff Recommendation One
The first recommended action is to maximize the use of all available CORE funds to fund additional proposals across the Medium and Large Tiers, in ranked order of scores. Specifically, staff are recommending funding the next highest Large Tier application as well the next four highest Medium Tier applications. This can be achieved by:
a. Reduce all contracts recommended for award in the medium, large, and targeted impact tiers by a full 10% (vs previous proposal of 3% reduction). This action will allow for the re-allocation of $402,260, of which $318,872 are County funds and $83,388 are City funds;
b. Utilize funding from the recommended award for the HRC of $144,481 that the Board directed staff to not fund. This full funding requires action by the Santa Cruz City Council as well, who deferred the decision of not funding this agency to their June 28th Council meeting.

The additional agencies and programs that would be funded through this recommendation total $513,226:

Large-Tier:
• Senior Network Services, Inc. – Aging in Community ($135,001) to provide one-stop holistic services to help Santa Cruz County seniors to continue living independently.

Medium Tier:
• Big Brothers Big Sisters of Santa Cruz County ($90,000) for a mentoring program that creates and supports life changing relationships for youth facing challenges due to societal and community inequities.
• Family Service Agency of the Central Cost – Suicide Prevention Service of the Central Coast ($42,525) which provides a 24-hour suicide crisis line with solutions to people of all ages who are contemplating suicide or engaged in suicidal behavior. • Santa Cruz Community Ventures – Alas Program ($134,100) The program provides financial assistance and coaching to Latino families to build community, selfdetermination, and financial wellbeing. • Santa Cruz Lesbian Gay and Community Center – Diversity Center Health and Wellbeing Initiative ($111,600) to provide mental health counseling and referral to care for the LGBTQ+ community, with specific support for youth and LatinX populations.

40.4 Though this action requires a further reduction to grant sizes for agencies in the medium, large, and targeted impact tiers; these agencies are either new who will be ramping up their services, or existing, who with some exceptions are receiving larger grants than their current awards.

Therefore, this action will only lead to a smaller expansion of continuing programs, as well as trim the size of new programs starting up.

Staff Recommendation Two:

The second staff recommendation is to provide three months of transition funding for FY 2022 CORE programs that applied for and are not recommended for funding in FY 2023. This action would require approximately $500,000 in additional funds to be shared by the County and City.

Attachment “CORE Recommended Bridge Funding” details the initial list of agencies and related programs that would be eligible for the transition funding, however, HSD will work closely with all current CORE funded agencies that applied for a continuation of their program to ensure that all eligible agencies receive this bridge funding. Once the final details are determined, HSD will return to the Board, as well as with City staff to the City Council, with a complete list of each agency provided this three-month extension.

Staff recommend this action due to the unprecedented confluence of two variables. First, for 35 years, the same agencies under the Community Programs funding model sustained funding each fiscal year. The first ever RFP five years ago under the CORE model led to minimal change in agencies receiving funding. Second, the COVID Omicron Variant pushed the timeline of this RFP forward to the point where these recommended actions are happening at the very end of the current Fiscal Year, leaving very little time for currently funded agencies to adjust their staffing, and/or to work with clients served by their program. The proposed transition funding will allow those agencies more time to adjust their budgets and programs.

Additional Options for current CORE funded agencies not recommended for award HSD also recognizes the important work of community partners, and that sufficient local government funding will always be a challenge. In the coming year, HSD is committed to partnering with the Health Services Agency, other County departments, and other jurisdictions to explore potential other funding opportunities to support the work of Community Based Organizations not recommended for CORE funding.

City-County Coordination
The County and the City staff have continued to coordinate in this effort to finalize the CORE award recommendations, and options for addressing some of the feedback received following the June 7, 2022 public meetings. The staff will continue to coordinate in ensuring County and City funds are applied as directed and will return in December with a comprehensive report on the status of the actions taken following the direction provided today.

Next Steps
Final Awards
Following final funding decisions, staff will work with agencies approved for 3-month transition funding who will not be awarded a new contract, as well as agencies approved for new contracts.

40.5 For agencies receiving a 3-month transition grant, HSD will utilize Board and Council direction if approved, authorizing HSD to extend current agreements for 3 months.

For agencies approved for new contracts, staff will create scopes of work per mutual agreement of the vendor and funder. Once approved by the Board and the Council, staff will negotiate, per the MOU, three-year contract agreements with recommended awardees. HSD will utilize Board direction if approved, authorizing HSD to issue a 3-month advance payment for new awardees while contracts are being finalized is also requested under County Policy and Procedures Section 330.A.

FISCAL IMPACT: CORE Investments supports non-profit organizations and local public agencies that support improving conditions of well-being for community members experiencing the greatest challenges and barriers in the County. The awards are funded through the General Fund. On June 14, 2022, Council approved $1,080,000 for CORE as part of the FY 2023 budget.

These funds will be disbursed through the MOU and as listed in the “List of Recommended Awards”, should Council approve them. If necessary, staff will return to Council once the transition funding amount is determined.

Prepared/Submitted By:

Laura Schmidt
Assistant City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. LIST OF RECOMMENDED AWARDS.PDF

2. CORE APPEAL DETERMINATIONS.PDF

3. CORE RECOMMENDED BRIDGE FUNDING.PDF

40.6 1
Attachment 1
CORE Recommended Proposals Alphabetical by Agency
Targeted Impact Tier
Agency Submission Name Program Summary
Total
Recommended
Budget
City of Santa
Cruz
Contribution
Toward Total
United Way of
Santa Cruz County Cradle to Career
Cradle to Career Santa Cruz County will leverage individual and policy level strategies to center the lives of children, families, and youth that have been historically marginalized by racist systems and disproportionately impacted by the pandemic. C2C will lead equity-driven assessments at schools, strengthen family leadership, and leverage partnerships to support thriving families. $ 715,500.00 $ 147,621.35
Large Tier
Agency Submission Name Program Summary
Total
Recommended
Budget
City of Santa
Cruz
Contribution
Toward Total
Community Action
Board of Santa
Cruz County, Inc.

CAB - South County
Housing
Collaborative
The South County Housing Collaborative proposes to provide vital and coordinated homelessness prevention and intervention services to very-low income, homeless and housing insecure families with children in the Pajaro Valley Unified School District area that will provide greater stability and equity for the families and improved and more equitable educational outcomes for their children.
$ 314,550.00 $0

40.7 2
Community
Bridges
Meals on Wheels
for Santa Cruz
County (MOW)
Meals on Wheels for Santa Cruz County, a program of Community Bridges, will provide meals to older adults 60 + following Dietary Guidelines for Americans providing a minimum one-third of the Dietary Reference Intakes (DRI’s). The meals are available at our four congregate dining sites and through our home delivered meal program, also known as Older Americans Act Title III-C-1 and C-2 respectively.
$ 405,000.00 $ 83,559.25
Dientes
Community
Dental Care
Dientes
Community Dental
Care
As the largest local oral health care provider and a critical part of the health care safety net, Dientes provides preventative dental care and affordable treatment for thousands living in poverty. We work to ensure that cost, insurance, income, language, and transportation don't prevent people from visiting the dentist. We respectfully request support to improve equitable access to care. $ 194,040.00 $ 40,034.17
Santa Cruz
Community
Ventures
Semillitas
Ventures will expand its countywide Semillitas College Savings Account program that includes equity-boosting Milestone Contribution opportunities. This family-centered program encourages ongoing positive behaviors, high expectations, and increased participation in activities focused on early childhood development, health, education, and financial capability. $ 405,000.00 $ 83,559.25
Second Harvest
Food Bank Santa
Cruz County
Second Harvest
Food Bank Santa
Cruz County
Second Harvest Food Bank Santa Cruz County will distribute at least ten millions pounds of food as needed by the community, improve the capacity of our non profit partners to provide more food while up-leveling their ability to use data to improve their food pantries, and provide nutrition education workshops and cooking clubs to encourage diet changes that improve life-long health outcomes.
$ 224,382.60 $ 46,294.43

40.8 3
Large Tier Additional Recommendation
Senior Network
Services, Inc.

Aging in
Community
The Aging in Community Project will provide holistic services to help Santa Cruz County seniors continue living independently.

Our one-stop service delivery model serves over 12,000 clients each year. The Older Americans Act mandates our services be provided and necessitates local match dollars; for every CORE dollar requested in this proposal two additional dollars are brought into the community.
$ 135,000.90 $ 27,853.27

40.9 4
Medium Tier
Agency Submission Name Program Summary
Total
Recommended
Budget
City of Santa Cruz
Contribution
Toward Total
Arts Council
Santa Cruz
County
Mariposa Arts
Arts Council Santa Cruz County seeks funds to deepen its Mariposa Arts TEACH program in Watsonville schools by doubling the paid time for high school student teachers to meet with teaching artist mentors. Weekly mentorship will help them hone their teaching and leadership skills to provide service to 4,000+ youth and expand time to refine their art skill and create a community service art project.
$ 36,000.00 $0
Association
of Faith
Communities
of Santa Cruz
County
Safe Spaces
The Association of Faith Communities is seeking to expand its case management staff for our Safe Spaces program, which serves as the largest safe parking program in the county. Individuals sleeping in their vehicles face numerous inequities. Increasing case management staff would give program participant's increased capacity and resources to move toward permanent housing. $ 104,544.00 $ 21,569.43
Boys & Girls
Clubs of
Santa Cruz
County
Boys & Girls Clubs
of Santa Cruz
County
Boys & Girls Clubs of Santa Cruz County will deliver Project Learn, an evidence-based practice that strives to improve students’ educational outcomes by increasing their interest in learning, enhancing their academic abilities, and improving their school grades. We will serve an estimated 1,300-1,550 youth ages 6-18 each year, via afterschool, summer, and holiday programs at our three Clubhouses.
$ 94,500.00 $ 19,497.16
Coastal
Watershed
Council
Watershed Rangers
CWC’s Watershed Rangers program provides critical, high-quality learning opportunities for 500 K-5th grade youth in the Santa Cruz City Schools Elementary District to reverse learning lag resulting from the COVID-19 pandemic and improve social emotional development for our youngest, Latinx and English language learners who are most in need of support.
$ 63,000.00 $ 12,998.11

40.10 5
Community
Action Board
of Santa Cruz
County, Inc.

Alcance -
Links2Work and
Day Worker Center
CAB’s Alcance Program will address the need for critical employment support and services to two hard to serve groups and their families, those who have been negatively impacted by the War on Drugs and local day workers. Services include intensive, motivational case management, job training and placement tailored to the individuals.
$ 90,000.00 $ 18,568.72
Community
Action Board
of Santa Cruz
County, Inc.

CAB - Davenport
Resource Service
Center
CAB’s Davenport Resource Service Center, the only service provider for the isolated North Coast, will use CORE funds for on-going, weekly food distributions to 150 low-income households/month; to provide 45 farmworker families with enhanced access to food and case management; operate the North Coast Teen Center,
Homework Club, and Summer Recreation/Lunch; and to provide case management to seniors.
$ 72,000.00 $ 14,854.98
Community
Action Board
of Santa Cruz
County, Inc.

CAB - Rental
Assistance Program
CAB’s Rental Assistance Program (RAP) proposes to provide critical eviction prevention rent assistance and case management services to prevent homelessness for very low-income North/Mid-County and City of Santa Cruz residents and households with children, disabled and senior members. Services will include individualized housing plans, budgeting/financial literacy support and referral linkages.
$ 112,500.00 $ 23,210.90
Community
Action Board
of Santa Cruz
County, Inc.

Santa Cruz County
Immigration
Project/Thriving
Immigrants
Initiative
The Community Action Board envisions a Santa Cruz County where immigrant families THRIVE. CAB’s Immigration Department will use CORE funds to launch a legal services office in the City of Santa Cruz; expand free, state subsidized DACA and citizenship services countywide; and organize monthly educational workshops to promote the benefits of US citizenship.
$ 134,100.00 $ 27,667.40
Community
Action Board
of Santa Cruz
County, Inc.

Youth Homeless
Response Team
Community Action Board of Santa Cruz County, Inc.’s (CAB) Youth Homeless Response Team (YHRT) proposes to identify and serve youth and young adults (YYA) ages 15-24, primarily unaccompanied, with individualized services to help resolve their
homelessness/housing insecurity, as well as connections to employment, education and mentoring services to help them overcome barriers to thriving.
$ 134,550.00 $ 27,760.24

40.11 6
Eat for the
Earth Community Rx
Most people in our county will spend their later years sick and will die from diet-related fatal conditions—heart disease, diabetes, and others. The food on our forks affects all groups, but some groups more than others. Community Rx uses diet, education, and targeted universalism to address racial inequities—focusing on the needs of the particular and lifting the health of our entire community. $ 88,001.10 $ 18,156.31
Encompass
Community
Services
Health Equity for All
The “Health Equity for All” proposal seeks to improve health equity and lifespans of persons served in our residential treatment service lines. A majority of premature deaths of people who struggle with severe mental illness and substance disorders due to physical medical conditions are preventable. Physical activity, healthy eating habits, and community support can have protective effects. $ 134,416.91 $ 27,732.78
Encompass
Community
Services
V.O.I.C.E. (Valuing
Our Individual
Client Experiences)
To support equitable access to culturally responsive and effective behavioral health services, we propose integration of 3 best practices across Encompass behavioral health services. These strategies are design to uplift clients’ voices throughout treatment and strengthen providers’ ability to deliver quality services. $ 130,718.70 $ 26,969.77
FoodWhat,
Inc Food What?!
FoodWhat (FW) is a youth empowerment and food justice
organization. We provide meaningful space where youth define and cultivate their empowerment, liberation and well-being by developing relationships with land, food, and each other. As a FW Crew, we grow, cook, eat and distribute fresh, healthy food while also addressing local food justice issues.
$ 31,567.50 $ 6,512.98
Grey Bears Healthy Food
Program
Grey Bears Healthy Food program ensures that Santa Cruz County aging adults – including isolated and disabled seniors – have access to nutritious food, food security, opportunities to volunteer and engage socially, remain active and in their own homes, and live healthy, meaningful lives.
$ 122,457.60 $ 25,265.35

40.12 7
Housing
Matters
Community
Conversations on
Homelessness
Housing Matters’ Community Conversations on Homelessness program will provide individuals with lived experience of homelessness opportunities to speak in public forums, along with an online storytelling platform. Through various media, they will educate the general public about the experience of homelessness and related issues to reduce stigma and encourage a
compassionate community response.
$ 106,600.50 $0
Jacob’s Heart
Children’s
Cancer
Support
Services
Comprehensive
Grief Support
Services for Low
Income Families of
Children with
Cancer
Jacob’s Heart will improve access to bicultural support services for low-income disenfranchised families suffering anticipatory grief or the traumatic loss of a precious child through the expansion of our Grief Support Program - including scaling up peer mentorship, individual psychotherapy and support groups and access to support groups, outings for bereaved siblings, and Forever Loved Camp. $ 90,000.00 $ 18,568.72
Live Earth
Farm
Discovery
Program
Live Earth Farm
Discovery Program
Improve personal, community and food system health through nutrition and farming education and food access partnerships that improve nutrition security. During active, on-farm programs students, chaperones, campers and families are empowered to be active and choose and access nutritious fresh, fruits and vegetables. $ 90,000.00 $ 18,568.72
Monarch
Services -
Servicios
Monarca
Positive Solutions
Program
This program focuses on providing tools to stop abusive behavior, developing an appreciation of emotions and changing the attitudes that have
contributed to abusive behavior.
$ 102,901.50 $ 21,230.55
Monarch
Services -
Servicios
Monarca
Therapeutic
Services Program
Individual therapeutic services for adult and youth survivors of domestic violence, sexual assault and human trafficking. $ 134,932.50 $ 27,839.16 NAMI Santa
Cruz County
Free Mental Health
Services in Spanish
NAMISCC seeks funding to sustain and expand our free mental health services in Spanish. Services include support groups, classes, a Help Line, and mental health presentations in schools, all of which are led by trained bilingual facilitators with the lived experience of mental illness.Those served are Latinx people urgently needing help to deal with their own mental illness or that of a loved one. $ 86,400.00 $ 17,825.97

40.13 8
New Life
Community
Services, Inc
New Life
Community Services
- Self-Pay program
New Life Community Services ("NLCS") provides residential substance use disorder treatment and reentry services to individuals and families. We seek funding to continue offering our self-pay program, which serves clients who have no insurance or existing resources to pay for treatment. Without additional funding, the agency will need to decrease spaces available in the self-pay program.
$ 49,500.00 $ 10,212.80
Pajaro Valley
Prevention
and Student
Assistance
Familias UnidasUnited Families
The familias Unidas project aims to to promote resilience, reduce isolation, rebuild family cohesion and connectedness. Our case management team will conduct needs assessments, link families to resources, engage all families in an eight week evidence based family centered program, and provide pro-social opportunites for the youth/children that take part of this family system. $ 134,814.60 $0
Santa Cruz
City Schools
Computer Science
for All
Santa Cruz City Schools’ Computer Science for All Program aims to address existing disparities in computer science education through teacher training and parent engagement. These strategies are designed to give all of our elementary students, especially female and Latinx students, access to high quality curriculum and the opportunity to see themselves as computer scientists.
$ 93,137.40 $ 19,216.03
Santa Cruz
Community
Health
Centers
Integrated
Behavioral Health
HealthySteps is an evidence-based program, that ensures all babies and toddlers have a strong start in life. HealthySteps transforms pediatric care through a unique team-based approach that integrates a HealthySteps Specialist/child development expert, into the health care team. All families from prenatal to age 5 and their families will receive a tiered model of services, from universal screening
$ 134,100.00 $ 27,667.40
Senior
Citizens'
Legal Service
(SCLS)
Increased Service
Capacity SCLS 2022
SCLS is the sole provider in our County of free legal services to seniors, working on a lean budget since 1972. We've grown to meet the increased demand for services due to isolation & risk of homelessness seniors faced during the pandemic & fraud, discrimination, & elder abuse. This grant will support our strategic plan for an additional attorney & staff increasing the number of seniors served.
$ 72,000.00 $ 14,854.98

40.14 9
Senior
Network
Services, Inc.

Santa Cruz County
Aging & Disability
Resource
Connection (ADRC)
Capacity Building
Project
To build a first-class Aging and Disability Resource Connection (ADRC) for the residents of Santa Cruz County. To design the ADRC to incorporate the maximum number of partners and programs and to positively impact the lives of seniors, people with disabilities and care providers. In short, to take a major step in making Santa Cruz County a 21st century age and able friendly community.
$ 47,250.00 $ 9,748.58
Teen Kitchen
Project
Home-delivered
Medically Tailored
Meals for
Vulnerable
Populations
Teen Kitchen Project provides critically and chronically ill people in Santa Cruz County with home-delivered, medically-tailored free or low cost meals. Meals are prepared by teen chefs who benefit from the opportunity to give back to their community while learning valuable workforce and life skills. Medically tailored meals have been proven to improve health outcomes and lower healthcare costs.
$ 135,000.00 $ 27,853.08
Volunteer
Center of
Santa Cruz
County
Restorative Justice
Programs
Our criminal justice system is inequitable and has outcomes that are literally the worst in the world! Our Restorative Justice Programs intervene with proven, practical supports and coaching during the first 6 months after release from incarceration to help people re-enter our community more successfully, creating a path away from justice system involvement and towards shared healing and safety.
$ 41,850.00 $ 8,634.46
Volunteer
Center of
Santa Cruz
County
Volunteer Center of
Santa Cruz County
Empowered Aging
Programs
We increase the health, safety and well being of seniors, and build a more vibrant community. Our Empowered Aging programs are county wide, with opportunities for seniors to help others through meaningful volunteering and receive help from volunteers, creating a more equitable community. We offer a suite of free home and community based services in English and Spanish to 500-600 elders. $ 40,500.00 $ 8,355.93
Walnut
Avenue
Family &
Women's
Center
Walnut Avenue
Early Education
Center
Walnut Avenue Early Education Center is increasing equity in health & well-being through affordable, high-quality bilingual early education, which sets all children up for success by maximizing school readiness; by allowing working or school-bound parents to trust in full-day excellent care of their child; and by providing employment in a healing organization which values empowerment and equity.
$ 45,000.00 $ 9,284.36

40.15 10
Walnut
Avenue
Family &
Women's
Center
Youth Prevention
Program
Walnut Avenue's Youth Prevention Program utilizes evidence-based curricula and a Positive Youth Development framework to increase resilience among families and empower youth. Our programs use a gender-inclusive, anti-racist, strengths based, and healing centered perspective to support participants to overcome the impact of ACE's, strengthen family bonds and increase safety for the community.
$ 27,000.00 $ 5,570.62
Medium Tier Additional Recommendation
Big Brothers
Big Sisters of
Santa Cruz
County
Big Brothers Big
Sisters of Santa Cruz
County
Mentoring Support Works! Big Brothers Big Sisters Santa Cruz County Mentoring Program creates and supports life changing relationships for youth facing challenges due to societal and community inequities. Mentoring builds resilience resulting in improved attitudes and behaviors. Mentored youth make healthier decisions and choices. Our programs improve the trajectory of lives of those we serve.
$ 90,000.00 $ 18,568.72
Family
Service
Agency of
the Central
Coast (FSACC)
Suicide Prevention
Service of the
Central Coast
Our program provides solutions to people of all ages who are contemplating suicide or engaged in suicidal behavior. COVID-19 has increased isolation, stress, anxiety and depression, especially for people already struggling with inequities. We offer a 24-hour suicide crisis line with language translation, education, survivor and outreach services to provide life-sustaining support and referrals. $ 42,525.00 $ 8,773.72
Santa Cruz
Community
Ventures
Alas
The Alas Program will help 30 Santa Cruz County (SCC) workingclass Latino families per year build community, self-determination, and financial wellbeing. Families will receive a guaranteed $500 monthly financial gift, financial workshops, and financial coaching, helping them meet financial goals and increase their use of banking services, including opening an account for the first time. $ 134,100.00 $ 27,667.40

40.16 11
Santa Cruz
Lesbian and
Gay
Community
Center
The Diversity
Center’s Health and
Wellbeing Initiative
The Diversity Center seeks to restructure as a health and well-being center that is in service to the needs of the larger LGBTQ+ community with specific support for youth and LatinX populations.

In addition, using evidence-based practices and programs, we will provide much-needed mental health counseling and referral to care for the LGBTQ+ community.
$ 111,600.00 $ 23,025.22
Small Tier
Agency Submission Name Program Summary
Total
Recommended
Budget
City of Santa
Cruz
Contribution
Toward Total
Acupuncturists
Without
Borders
AWB CARE Project
The AWB CARE Project seeks to reduce health care inequity; reduce chronic illness, pain, stress, and trauma; and support physical and emotional resilience in the Santa Cruz County farmworker community. We will do this by offering free, culturally responsive, trauma-informed, integrative health care services at “pop-up” mobile clinics in the Watsonville, CA area.
$ 24,374.00 $0
Encompass
Community
Services
Health & Housing
The project provides a seamless and supportive transition into housing for individuals early in their recovery as they prepare to step down from residential treatment. This project supports individuals in their efforts to obtain affordable, transitional housing with support for sobriety, as they take their next step in their recovery journey and move towards stability and independent living.
$ 24,474.00 $ 5,049.45

40.17 12
Girls Inc. of
the Central
Coast
College Bound
We will offer three programs to girls ages 13-18, facilitated by peers, using strategies inspiring them to create a future that includes healthy relationships, educational attainment and economic independence.

We assist them in planning for high school and college, identifying and defending personal values, developing leadership skills, overcoming systemic barriers and achieving lifelong wellness. $ 22,500.00 $0
Girls Inc. of
the Central
Coast
Health and
Wellness
We will offer two programs to girls ages 9-13, facilitated by peers, that inspire them to set health and wellness goals that include developing healthy relationships, practicing assertive communication skills, avoiding unhealthy behaviors, managing stress, handling conflict, gaining knowledge of reproductive health, and overcoming systemic barriers that prevent them from achieving their goals. $ 10,500.00 $0
Homeless
Garden
Project
Transitional
Employment for
Individuals
Experiencing
Homelessness
HGP’s yearlong transitional employment program provides wages, job training and support services to people experiencing homelessness.

Trainees earn income, build job readiness skills and work to overcome obstacles to self-sufficiency in a supportive environment, while growing organic, local food for the community.
$ 25,000.00 $ 5,157.98
Nourishing
Generations
Educational
Project
Nutrition, Culinary,
Fitness Education
Nutrition education, hands-on cooking, and fitness program for 3rd5th graders in the after-school program at all three Live Oak School District elementary schools - Del Mar, Live Oak, and Green Acres. This program provides each school with six weekly 2-hour long classes for students, and four 1-hour long nutrition and cooking demonstration for parents at each school site.
$ 22,000.00 $ 4,539.02
Salud y Cariño Harbor High School
Girls Group
Salud y Cariño will expand its FREE weekly after school Girls Group program to Harbor High School in order to continue providing proactive opportunities for young women to build their confidence, resilience, and knowledge of positive health and wellness behaviors.

Built on relational-cultural theory, the groups are driven by the girls’ voices and led by bicultural women from the community.
$ 19,524.00 $ 4,028.18

40.18 13
Senderos Las Artes Culturales
de Senderos
Senderos provides equitable access to cultural arts activities, educational pathways, and community resources for Latinx youth and families. Las Artes Culturales de Senderos will offer free folkloric dance and traditional music programs, share indigenous traditions through festivals and performances, strengthen families and community belonging, and inclusively celebrate diversity. $ 22,550.00 $ 4,652.50
Seniors
Council of
Santa Cruz and
San Benito
Counties
Foster Grandparent
Program
The Foster Grandparent Program is a proven intergenerational program impacting two groups facing inequities: children who are economically disadvantaged and/or have special needs; and lowincome seniors. Our seniors volunteer in pre-school - 3rd grade classrooms 15-30 hours per week, providing one-on-one mentoring, tutoring, and emotional support. CORE funding is needed for postCOVID recruitment. $ 23,000.00 $ 4,745.34
Sweaty Sheep:

Presbytery of
San Jose
Worries to the
Wind
Santa Cruz is a diverse community & home to an equally diverse network of agencies, each working as one to address social inequity.

In recognition of the role of collaboration in the health of our community, our proposal promotes the power of play as a means of community connectivity by offering free sailing & art programs to individuals experiencing inequity and the diverse agencies serving them.
$ 16,500.00 $ 3,404.27
Vista Center
for the Blind
and Visually
Impaired
Vision Loss
Rehabilitation
Program
Vista Center's Vision Loss Rehabilitation Program provides blind and visually impaired adults and seniors access to available resources, teaches them to maintain a level of adjustment to disability, to care for themselves through training in essential daily living skills and safe travel techniques, and to remain independent. Clients include low income, disabled seniors, across all ethnicities.
$ 22,800.00 $ 4,704.08
Volunteer
Center of
Santa Cruz
County
Healthy
Connections
The proposal is an integrated approach to supporting adults with a serious mental illness in achieving optimal physical health and wellness in Santa Cruz County through access to healthy lifestyle services, diabetes prevention classes, food distribution, exercise activities and peer support services.
$ 24,685.00 $ 5,092.99

40.19 14
Volunteer
Center of
Santa Cruz
County
YouthServe
YouthSERVE supports middle school and high school students to build connections with the community through meaningful volunteer service in person and virtually, providing positive, skill building activities outside of school that promote well being, help meet school requirements and combats social isolation.
$ 25,000.00 $ 5,157.98
Walnut
Avenue Family
& Women's
Center
Space for Change
Walnut Avenue, in collaboration with Conflict Resolution Center, will facilitate a Transformative Justice-based approach to working with families experiencing violence, which offers an alternative to traditional justice system approaches that commonly retraumatize and harm already marginalized populations. This program aims to keep families whole and interrupt inter-generational cycles violence. $ 25,000.00 $ 5,157.98
Wings
Homeless
Advocacy
Vital Documents
Our Vital Docs Program decreases barriers to housing and health while increasing economic mobility by helping people experiencing homelessness or those at risk get their birth certificates and ID. This collaborative program will provide services to 600 people per year, also connecting them to other services as needed and doing housing problem solving with people who have no case management. $ 25,000.00 $ 5,157.98

40.20 40.21

40.22 40.23
CORE Recommended Bridge Funding for Existing CORE Programs that Reapplied Agency Program
Advocacy, Inc. Long Term Care Ombudsman Program
Central Coast YMCA Afterschool and Day Camp Program/YF4L Community Bridges
Child & Adult Care Food Program
Child Development Division
Elderday
Lift Line
Community Bridges - Family Resource Centers
La Manzana Community Resources
Live Oak Community Resources
Mountain Community Resources
Nueva Vista Community Resources
Court Appointed Special Advocates (CASA) Court Appointed Special Advocates Juvenil Justice Program
Encompass Community Services
Mindfulness-Based Medication Assisted
Treatment Program
TAY (Transition Age Youth) Youth Advocacy
Project
Families In Transition Family Housing Stabilization
Family Service Agency of the Central Coast
I-You Venture
Counseling Services
Senior Outreach
Survivors Healing Center
Survivors Healing Center & Suicide Prevention
Services
WomenCARE
Housing Matters 180/2020
Janus of Santa Cruz Co-occurring Disorder (COD) Capable Mental Health Client Action Network (MHCAN)
Drop-In Center
Motivational Interviewing Peer Support
Counseling
New Life Community Services Gemma
Pacific Preschool Pacific Preschool
Pajaro Valley Prevention & Student Assistance Seven Challenges Pajaro Valley Unified School District Healthy Start Program Parents Center Parents Center - paid through HSA
Planned Parenthood Mar Monte (PPMM) PPMM: Westside & Watsonville Health Centers Salud Para La Gente Coordinated Care Program
Santa Cruz Barrios Unidos, Inc Barrios Unidos Productions Team A Educational Outreach Program
Santa Cruz Toddler Care Center Child Care Services
Santa Cruz Toddler Care Center
Attachment 3

40.24 Agency Program
Seniors Council TCE-PROJECT SCOUT
Senior Citizen Org of San Lorenzo Valley Senior Outreach and Activities YWCA of Watsonville YWCA State Preschool

40.25 Attachment #3.A
Additional Policy Options for use of $500,000
The memo for the CORE award recommendations includes a recommended action of utilizing one-time unanticipated funds of $500,000 to provide 3 months of transition funding to all current CORE grantees not recommended for award. HSD continues to support this recommendation. However, in recognition that this funding is outside the scope of the RFP, and in anticipation of questions regarding other potential uses of the money not linked to RFP terms, HSD is providing these additional scenarios for the Board and public’s consideration.

Policy Option 1 - Partial Funding of Existing CORE Grantees not Recommended for Funding The $500,000 may be applied toward transition funding for current CORE recipient programs that applied for funding and were not recommended for an award. This policy can be applied using 1 of the 4 methodologies below.

1. For one Fiscal Year fund existing CORE programs not recommended for funding for one Fiscal Year (FY) at 12.9% of requested funding

2. For two Fiscal Years fund existing CORE programs not recommended for funding for 2 FYs at 6.5% of requested funding

3. For three Fiscal Years fund existing CORE programs not recommended for funding for 3 FYs at 4.3% of requested funding
Policy Option 2 - Fund Additional Proposals by RFP Rankings The $500,000 may be used to fund additional medium and small tier proposals based on the RFP scoring over 1, 2 or 3 years, at various funding levels.

1. Over 1 year, $500,000 could fund:
a. 4 Medium proposals at 90% funding (10% cut applied to requested funding), and 5 Small proposals at 100% funding
b. 5 Medium and 4 Small proposals at 75% funding
c. 8 Medium and 1 Small proposal at 50% funding
d. 19 Medium and 4 Small proposals at 25% funding

2. Over 2 years, $500,000 ($250,000/FY) could fund:
a. 3 Medium proposal at 90% funding
b. 3 Medium and 2 Small proposals at 75% funding
c. 4 Medium and 3 Small proposals at 50% funding

40.26 d. 8 Medium and 1 Small proposal at 25% funding

3. Over 3 years, $500,000 ($166.666/FY) could fund
a. 1 Medium proposal at 90% funding, and 1 Small proposal at 100% funding b. 2 Medium proposals at 75% funding
c. 3 Medium and 2 Small proposals at 50% funding
d. 5 Medium and 4 Small proposals at 25% funding
Policy Option 3 - Fund Additional Proposals Based on Board Discretion The $500,000 may be used to fund various specific proposals determined to be priority programs by the board. The funding could spread over a 1, 2 or 3 year period for selected programs, as is laid out in the other policy options.

40.27 CORE - Attachment #3.B
The following agencies were not recommended for award through the RFP process; however, are listed in rank order for consideration when reviewing options outlined in Attachment 3.A.

Medium Tier
Next
Rank
Order
Agency Submission Name
1 Hospice of Santa Cruz
County
Access to End-of-Life Care for All
2 New Life Community
Services, Inc
Gemma House
3 - Tie Parents Center, Inc. Parents Center, Inc.
3 - Tie Senior Citizens
Organization of the
San Lorenzo Valley
Senior Citizens Organization of the San Lorenzo Valley
5 - Tie MENtors Driving
Change for Boys,
Men and Dads
Two-Generation service to strengthen family relationships, support father involvement and nurture couples' co-parenting 5 - Tie Pajaro Valley
Prevention and
Student Assistance
Youth Matter
7 Community Bridges Elderday
8 Association of Faith
Communities of
Santa Cruz County
Faith Community Shelter (medium)
9 - Tie Coastal Watershed
Council
San Lorenzo River Neighbors
9 – Tie Santa Cruz
Community Health
Centers
Cradle to Career Shoreline Expansion
11 Catholic Charities of
the Diocese of
Monterey
Pathways to Stability
12 Advocacy Inc. Long-Term Care Ombudsman Program
13 - Tie Community Bridges Child and Adult Care Food Program 13 - Tie Community Bridges Live Oak Community Resources 13 - Tie Pajaro Valley Unified
School District
Healthy Start Program
13 - Tie Watsonville
Wetlands Watch
Wetlands Restoration
17 - Tie Mental Health Client
Action Network
Drop In Center
17 - Tie Mental Health Client
Action Network
Motivational Interviewing for Substance Abuse
19 Community Bridges Nueva Vista Community Resources

40.28 Small Tier
Next
Rank
Order
Agency Submission Name
1 Seniors Council of
Santa Cruz and San
Benito Counties
Project SCOUT
2 Association of Faith
Communities of
Santa Cruz County
Faith Community Shelter (small)
3 MENtors Driving
Change for Boys,
Men and Dads
Financial Fitness for Resiliency for Transitional age of Foster youth
4 Pacific Elementary
School District
Pacific Elementary School District
5 - Tie The Free Guide Project Connect (North County)
5 Tie The Free Guide Project Connect (South County)

40.29 1
Rosemary Balsley
From: Dorah <[email protected]>
Sent: Wednesday, June 08, 2022 6:41 AM
To: City Council
Subject: Fwd: disagree with the CORE funding recommendations Dear Mayor Brunner and City Council Members Brown, Cummings, Golder, Kalantari-Johnson, and Watkins,
Two psychologist friends told me tonight that the City and County are cutting funding to the Family Service Agency of the Central Coast. This is a shocking development considering all that the Agency does for people in its tri-county service area. People need counseling, suicide prevention, support as survivors of illness, sexual abuse and traumas, and other healing services. The pandemic has wreaked havoc in our community, increasing stress, isolation, depression, substance abuse and other problems that the Family Service Agency is designed to address. Please restore funding to this organization which has helped so many people and families.

It is also shocking that Community Bridges, another organization which provides many needed services in Santa Cruz is having its funding cut by over $800,000. With the economic disruption and the ongoing pandemic continuing to upend many peoples' lives, this is not the time to cut funding to Community Bridges or the Family Service Agency.

Sincerely,
Dorah Rosen
122 Kirby St
Santa Cruz CA 95060

40.30 2
Rosemary Balsley
From: David Bianchi <[email protected]>
Sent: Tuesday, June 14, 2022 12:11 PM
To: City Council
Subject: Letter Regarding CORE Funding
Attachments: June 14 letter to City SC.pdf
Please share the attached letter with all members.
--
David Bianchi
Executive Director
Family Service Agency of the Central Coast
104 Walnut Ave, Ste. 208
Santa Cruz, CA 95060
(831) 423-9444 x204
(831) 423-1532 (fax)
[email protected]
www.fsa-cc.org
CONFIDENTIALITY NOTICE: This message and any included attachments are from Family Service Agency of the Central Coast and are intended only for the addressee. The information contained in this message is confidential and may constitute inside or non-public information under international, federal, or state securities laws. Unauthorized forwarding, printing, copying, distribution, or use of such information is strictly prohibited and may be unlawful. If you are not the addressee, please promptly delete this message and notify the sender of the delivery error by e-mail or you may contact agency staff at (831) 423-9444.
Before printing this e-mail, please think if it is necessary.

40.31 3
Rosemary Balsley
From: DIANE GRUNES <[email protected]>
Sent: Wednesday, June 15, 2022 5:39 PM
To: City Council
Subject: Your support is vital! Please reconsider your support to Family Service Agency of the Central Coast (FSACC) in this round of CORE FUNDING.

Diane Grunes,
237 Trevethan Ave.

Santa Cruz, CA 95062
June 13, 2022
Dear Santa Cruz City Council
member,

My name is Diane Grunes, and I'm reaching out to urge you to:

Please reconsider your support to Family Service Agency of the Central Coast (FSACC) in this round of CORE FUNDING.

FSACC has provided essential, life-saving services to marginalized populations in Santa Cruz County for decades. Services like the suicide prevention hotline, low-cost counseling, support for women with cancer, groups for survivors of child sexual abuse and senior outreach have made a huge impact on the health and well-being of so many lives in our city and county.

FSACC, who has provided mental health services for 65 years, was not included in the current recommendations for renewed funding from the County and City of Santa Cruz for the next 3 years - that’s a potential loss of $172,000 per year.

While I personally support many of our vital Santa Cruz City & County services, my donations are small – I wish I could do more, but I cannot at this time. Instead, I volunteer for several non-profits, and especially WomenCARE, serving Santa Cruz County for 30 years, supporting women with cancer & their loved ones. I have remained committed to its work, but, sadly, WomenCARE will never survive these changes, without the Santa Cruz City and County funding. Our community actively depends on our services - using both individual and business support, and especially, the support we may not be receiving from FSACC, our parent agency whose funding may be cut as well.

Losing these services will be a huge blow to WomenCARE and the 100’s of clients we serve. Your funding is necessary for all of our programing, and especially to continue surviving and thriving. I urge you to continue funding FSACC, please.

Thank you for your attention and understanding,
Diane Grunes

40.32 4
A 44 year Santa Cruz community member, a retired S.C. Public School Art Teacher, a local Event Coordinator, and Comic performer, as well as a Past Santa Cruz Board Member for WomenCARE, S.C.Cultural Arts Council, Temple Beth El, and Shakespeare S.C..

40.33 5
Rosemary Balsley
From: Chris Miller <[email protected]>
Sent: Wednesday, June 15, 2022 5:54 PM
To: City Council; [email protected] Subject: Please reconsider funding the Family Services Center Greetings,
I'm writing in response to the recent news that continued funding of the FSA was not included in the CORE Recommendations. Many of you know me as a business owner in Santa Cruz City and resident of the county for over 20 years.

I became connected to FSA via their service WomenCARE which provides services for women who are navigating the journey through a cancer diagnosis. A longtime friend and member of our social club, Karen Petersen, utilized their services during her 10 year cancer journey which sadly came to an end as most do.

Because of Karen's diagnosis, our club began fundraising for WomenCARE every year, in fact we succeeded in raising $5323 last month at an event held at the London Nelson Center, sadly these efforts won't come close to filling the hole left behind here.

Many of my immediate family members experienced cancer, including my mother, grandmothers, my brother, and several friends. Getting a cancer diagnosis is the worst possible news one could receive, and it's a very lonely journey which can only truly be understood by the victims.

Speaking of being lonely, when I look at each of the services provided by the FSA, they are all doing something to combat loneliness being experienced by seniors, survivors, and those who may be contemplating suicide.

Support for these groups is not abundant, and the societal impact of this lost funding is likely to be greater than the dollar amount.

I get it, there is no shortage of problems to solve in the city and county. Homelessness, drug addiction, crime, bike paths... I also know that some sources of revenue got slammed during Covid. At the same time one would hope that property tax revenue increases due to the booming housing market, has filled in some gaps for years to come.

Here's an interesting data point from a study conducted by the city in 2017, 36% of the people interviewed said they were concerned there were "Not enough services for low income people". While this data is 5 years old, I can't imagine this concern does not still hold true.

I am sure you all are facing very difficult decisions here, and I don't have all the data on that. I am hoping that you will seriously consider the impact of this funding cut to FSA, and reconsider this decision. We all know that mental health is one of the more notable challenges of our time, does it really make sense to cut these services now?
Regards,
Chris
We do the things you want to do and don't know how
We do the things you know how to do and don't have the time

40.34 6
Chris Miller
CEO
Rocket Scientist
831.480.7199 (office)
831.428.2556 (cell)
Let's talk! ⤴

40.35 7
Rosemary Balsley
From: Ann Suchomski <[email protected]>
Sent: Wednesday, June 15, 2022 11:41 PM
To: City Council
Subject: FSA funding
Dear Officials,
Please know how vitally important Family Service Agency is and was to our family.  At a time of extreme crisis, we were all treated with care and respect, supported, and provided resources in the form of counseling through the FSA and Survivors Healing Center.

Since then, I have been a member of a support group for about 5‐6 years now. It means so much to me and has made all the difference in our family’s effort to heal.

The staff and the programs deserve every penny of funding you can find for them. Especially in these days of increasing mental health challenges.

But also in that this is a unique and vitally important resource for the Santa Cruz community.  The amazing work carried out by this organization deserves all the support it can get.

Respectfully,
Ann Suchomski
Sent from my iPhone

40.36 8
Rosemary Balsley
From: Jennie Santonastasi <[email protected]>
Sent: Thursday, June 16, 2022 9:16 AM
To: City Council
Subject: Family Services funding
I am a retired therapist and have been counseling seniors in Santa Cruz County for over 8 years and am appealing to you to reinstate the funding for Senior Outreach which is a part of Family Services Agency for Santa Cruz county. Now more than ever, seniors are experiencing isolation and being stressed and are so inspired by the work that the counselors are providing that it would be a grave mistake to not be able to continue this service.

Please reevaluate your position and reinstate our funding.

Best regards,
Jennie Santonastasi
Senior Outreach counselor

40.37 9
Rosemary Balsley
From: Suzanne Nelsen <[email protected]>
Sent: Thursday, June 16, 2022 11:13 AM
To: City Council
Subject: 172,000
Dear City Council,
Please reconsider cutting the funding for the Family Service agency of the Central Coast!!! There are so many Seniors in this 65 year old Senior Outreach program depending on it to continue.

Our budget is only 22,000 a year.  Without our volunteer help and support many will be unable to find alternate free care.

Keep the funding for the valuable program.

Thank you,
Volunteer

40.38 10
Rosemary Balsley
From: marsha perna <[email protected]>
Sent: Thursday, June 16, 2022 1:39 PM
To: City Council
Subject: Senior outreach
Please reconsider funding Santa Cruz senior outreach programs. It is a valuable service for many seniors who need help and support. I have a peer counselor from the senior center who has been so valuable and crucial to my mental health. Please again I ask you to reconsider the funding and continue the services.

Thank you.

Marsha Perna
Sent from my iPhone

40.39 11
Rosemary Balsley
From: Dorah <[email protected]>
Sent: Thursday, June 16, 2022 7:43 PM
To: City Council
Subject: Fund the Diversity Center and other organizations threatened with deep funding cuts Dear Mayor and City Council,
With all due respect, I cannot understand the proposed funding cuts to social services at a time when people need support, mentally and financially, healthwise and in the community. Our grandchild, who is nonbinary and bisexual, was a nervous wreck and suicidal when COVID first began. I saw the positive changes that they went through, thanks to support groups and a group of lovely friends that they made at the Diversity Center. There are so many vulnerable people and families who will be at greater risk with the cuts in funding that are being proposed. Please have a heart and use your head to support the people living in your jurisdiction!!
Sincerely,
Dorah Rosen
122 Kirby St
Santa Cruz, CA
Pronouns: She/Her

40.40 12
Rosemary Balsley
From: Carol Bobo <[email protected]>
Sent: Friday, June 17, 2022 10:59 AM
To: City Council
Subject: Funding for WomenCare
Dear City Council,
Thank you for your service and all you do to provide for the needs in our communities.

The recent notice of loss of funding is devastating news for those of us who have benefitted from the various services, including WomenCare for cancer survivors.

For 20+ years, WomenCare has provided much needed help and assistance for me to be able to cope with the diagnosis of breast cancer. Currently I am participating in a monthly Zentangle class that has benefitted me personally during the Covid Pandemic for some much needed creativity and socialization. As a senior citizen who is not able to get out as much as I used to, the benefit of Zooming to facilitate this participation has been such a blessing.

They also provide support groups, nutritional counseling and exercise guidance—all so important to wellbeing.

Creativity and socialization with others who are, or have been diagnosed with cancer, provides a healing and sustenance that is valuable beyond words or monetary value.

Please do all that you can to fund FSA, a USEFUL, WORTHWHILE endeavor.

With gratitude and blessings,
Carol Bobo

40.41 13
Rosemary Balsley
From: David Bianchi <[email protected]>
Sent: Friday, June 17, 2022 12:46 PM
To: City Council
Subject: Additional Investment in CORE Services
Attachments: June 15 Letter to County and City.pdf
Please continue to look for money in the City budget for services that would be lost. Please review the attached letter and documents.
--
David Bianchi
Executive Director
Family Service Agency of the Central Coast
104 Walnut Ave, Ste. 208
Santa Cruz, CA 95060
(831) 423-9444 x204
(831) 423-1532 (fax)
[email protected]
www.fsa-cc.org
CONFIDENTIALITY NOTICE: This message and any included attachments are from Family Service Agency of the Central Coast and are intended only for the addressee. The information contained in this message is confidential and may constitute inside or non-public information under international, federal, or state securities laws. Unauthorized forwarding, printing, copying, distribution, or use of such information is strictly prohibited and may be unlawful. If you are not the addressee, please promptly delete this message and notify the sender of the delivery error by e-mail or you may contact agency staff at (831) 423-9444.
Before printing this e-mail, please think if it is necessary.

40.42 14
Rosemary Balsley
From: Masako Gordon <[email protected]>
Sent: Friday, June 17, 2022 3:16 PM
To: City Council
Subject: FUNDING FOR FAMILY SERVICE AGENCY OF THE CENTRAL COAST June 17, 2022
To City Council Members:

I understand the application sent by Family Service Agency of the Central Coast to renew $172,000 funding from the County and City of Santa Cruz was not included in the CORE Recommendations.

As a volunteer counselor for Family Service Agency of the Central Coast (Senior Outreach), I implore you to reinstate funding so we can continue valuable, heart centered, human connection service to our seniors. Our service provide support and encouragement toward client's well being and mental health. Many of the clients we serve are depressed, have little or no social contacts, have suicidal thoughts, financial difficulties and health challenges. Our work is vital to their very existence because we help them cope under very difficult and extreme times in their lives.

PLEASE DON’T NEGLECT AND ABANDONED OUR SENIORS!!!
THEY ARE THE MOST VULNERABLE DEMOGRAPHICS OF SANTA CRUZ COUNTY!!! Conscious and concerned Santa Cruz residence,
Masako Gordon
1275 Whispering Pines Dr
Scotts Valley, Ca 95066

40.43 15
Rosemary Balsley
From: Ann Andrews <[email protected]>
Sent: Saturday, June 18, 2022 10:48 AM
To: City Council
Subject: Funding for Family Service Agency Senior Outreach Hello all,
I am a Senior Outreach Peer Counselor, and retired MFT. I work weekly with seniors. Many seniors struggle with issues experienced in childhood such as sexual abuse, abandonment and neglect.

Our program is very important for their
physical and mental well being.

Please restore this valuable program for the health of our community.

I have worked for this community since 2005 as a senior peer counselor Thank you for your 40 years of support,
Ann Andrews
Get Outlook for Android

40.44 16
Rosemary Balsley
From: Dianne <[email protected]>
Sent: Saturday, June 18, 2022 1:15 PM
To: City Council; [email protected] Subject: CORE Funding
Supervisors and Councilmembers:

I donate regularly to non-profit organizations in our county and strongly believe that governments should increase funding of human services to meet DIRE NEEDS. Organizations that have a long history of effective services should not have their funding suddenly cut, as is being proposed.

Please re-evaluate the proposed funding cuts for organizations such as Family Services Agency and Community Bridges. Loss of the funds will mean that thousands of children, seniors, youth, and poor people will suffer greatly!
Thank you for your consideration.

Dianne Dryer
Santa Cruz

40.45 17
Rosemary Balsley
From: Nancy Maynard <[email protected]>
Sent: Saturday, June 18, 2022 3:17 PM
To: City Council; Manu Koenig; [email protected] Subject: HRC. NO FUNDING
The only have 2 employees and no overhead
Nancy Maynard

40.46 18
Rosemary Balsley
From: Lynda Marín <[email protected]>
Sent: Saturday, June 18, 2022 8:45 PM
To: City Council
Subject: reinstate funding for The Diversity Center
Dear council members,
Without knowing the context of what you ARE funding while not granting funds to The Diversity Center for the next 3 year funding cycle, I nevertheless implore you to reconsider.

As a resident and tax payer, I am grateful for the funding that TDC has received. As you know, it's Santa Cruz’s only LGBTQ+ community serving organization and it has provided essential, life-saving services to our marginalized population for decades. Its services for LGBTQ+ seniors, youth, transgender, and Latinx members have made a huge impact on the well being of so many lives. TDC applied for CORE funding to provide no-cost mental health services to low-income LGBTQ+ community members, and especially youth.

Nearly half of LGBTQ+ youth reported suicidal thoughts during the pandemic (Trevor Project 2021).

Losing all CORE funding from the city and county for its only LGBTQ+ center is not only the wrong message to be sending at a time when there are 300+ anti-LGBTQ+ bills being considered nationally, it is also a terrible disservice to a very vulnerable portion of the Santa Cruz population. So, I ask that you please reconsider your decision and award TDC some funding this CORE cycle.

Yours truly,
Lynda Marin
--
Lynda Marín
Evolve!
(831) 458-1416 home
(831) 840-4176 cell
"Not only is another world possible; on a quiet day I can hear her breathing." ~Arundhati Roy

40.47 19
Rosemary Balsley
From: Big Joe 77 <[email protected]>
Sent: Sunday, June 19, 2022 6:07 AM
To: City Council
Subject: HRCofSCC Grant Awards to Date
Honorable Mayor, Vice Mayor, and Council,
I watched with interest the deliberation over the CORE funding requested by Harm Reduction Coalition of Santa Cruz County (HRCSCC) on June 7th, 2022: both at the County Board of Supervisors meeting and your Special Meeting. Here’s what you may not know…
-The Board of Supervisors, in a unanimous vote, rejected the CORE Panel’s recommendation of awarding HRCSCC’s application of $144, 600.00 as stated: “... because it (HRCSCC) doesn’t comply with previous Board direction” (B McPherson, d5).
https://www.youtube.com/watch?v=w-5PGe0e-lQ
-The HRCSCC received state approval to dispense syringes within Santa Cruz County, with the caveat that they not perform services in any recreational parks within those boundaries. This state approval came with a $405,000.00 (CA Harm Reduction Initiative) grant award to “address syringe litter in Santa Cruz County.” (The HRCSCC reports that in their first 12 months of state approved existence, they have dispensed 363,000 more syringes than they have collected)
https://www.goodtimes.sc/santa-cruz-harm-reduction-grant/?fbclid=IwAR3W-2Yw_3b_U9GEgmEMmOh9kgzZhylUTeqmQJ1nRfbS3LGkB29sWf0O20 HRCSCC Annual Report:
https://7cabd232-d920-4e60-89e4-
13a812e90157.filesusr.com/ugd/378c84_46bcb6d0e0cb496aa63f912d2928f5dc.pdf -In December, 2021, the HRCSCC received a grant award from the Sierra Health Foundation in the amount of $349,999.90 for “Medication Assisted Treatment” (MAT) referrals. The HRCSCC reports that in their first 12 months, they referred 27 persons of a possible 650 to MAT, or 4.1%. Due to HIPAA restrictions, the actual number of referrals who contacted the MAT Program Staff are unknown.

Sierra Health grant awardhttps://mataccesspoints.org/wp-content/uploads/2021/04/MAT_Syringe_Services_Program_2021- 22_Awards.pdf?fbclid=IwAR2q7k-dRrhm_gmsJnA5qJD9k9S1s__3ksJsfSg9tGe3B74UTfD1hJ1Nxf4 HRCSCC Annual Report:
https://7cabd232-d920-4e60-89e4-
13a812e90157.filesusr.com/ugd/378c84_46bcb6d0e0cb496aa63f912d2928f5dc.pdf -In March of 2022, the HRCSCC was awarded a third grant in the amount of $100,000.00. This award came from the National Alliance of State and Territorial AIDS Directors and was administered by AIDS United and the CDC, for the purpose of program expansion.
https://www.goodtimes.sc/harm-reduction-coalition-receives-100000- grant/?fbclid=IwAR3iIszaKQuXWVQYqI9fHnMCwPKYH9OLNu7RUU5ELsbR9VCxuVL1xMCa3LY Council member Brown’s objection that HRCSCC not be excluded from the Motion to Accept (at your June 7th meeting) was made either in ignorance or disingenuity. The HRCSCC has enjoyed grant awards over a 20 month period totaling $849,999.00. I would also note that as stated in their application for CORE funding, the money is needed "to sustain 2 staff positions," and not for services to the needy. You should be aware that the HRCSCC only employs 2 people, and that this entity operated with zero overhead expenses (The HRCSCC operates on a street corner: Coral/ Limekiln).

40.48 20
https://ecm.cityofsantacruz.com/OnBaseAgendaOnline/Documents/ViewDocument/UPLOADED%20POS T-PACKET%20PRODUCTION%20-
%20CORE_RECOMMENDED%20COMPETITIVE%20AND%20NON_RECOMENDED%20PR.pdf?meeti ngId=1927&documentType=Agenda&itemId=24122&publishId=33723&isSection=false Supervisor McPherson stated in his July 7th comments that the CORE Panel had received 127 applications for CORE funding in the amount of $15M, and that the available funding only touched ⅓ of mark: “It’s pretty obvious that we’re not going to please most people.” https://www.youtube.com/watch?v=w-5PGe0e-lQ
I’m not sure why the revised Request for Proposal (RFP) “fair and data driven process” didn’t include prior (say in a 12 month period?) grants awarded to applicants, but it apparently did not. Now you have the information you need to make a sound decision as to whether or not to include HRCSCC in the CORE funding at the exclusion of some other worthy non-profit, or not.

This information will be made public to the more than 4,500 readers of “Keepin’ it Real,” and will be attached as “Public Correspondence” to the Agenda of your June 28th Council meeting. Thank you for your time and consideration on this matter.

Sincerely,
--
Big Joe 77
Keepin' it Real
The linked image cannot be displayed. The file may have been moved, renamed, or deleted. Verify that the link points to the correct file and location.

40.49 21
Rosemary Balsley
From: dscourrejou <[email protected]>
Sent: Monday, June 20, 2022 2:53 PM
To: City Council
Subject: Funding for Family Service Agency of the Central Coast Dear Santa Cruz City Council:

I have a family that includes two with schizophrenia, two members with bipolar I. One brother took his own life because he was discharged from the hospital too early because of lack of funding, and because of lack of outpatient support. Another attempted suicide, but is now leading a successful life, not costing society a lot of money, because she is receiving the help she needs.

Beyond my family, I as a teacher, have had students who had family members with schizophrenia, and students who, themselves have suffered from bipolar and depression. All of these experiences constantly remind me of the necessity of generous funding for mental health services.

I am writing to you in response to the article in the June 20, 2022 Monterey Herald that says you have decided to discontinue funding for the Family Service Agency of the Central Coast.

Learning of this feels like the bottom has fallen out from our boat. It sounds like you have not given the Family Service Agency any time to find other funding. And this right on the eve of the opening of the 988 mental health crisis hotline. It sounds shortsighted and heartless.

The least you could have done was give them a year to find new funding, and hold plenty of well publicized hearings to help you make your decision about who to fund. I don't know, did you even try to get the papers to announce the problem well in advance? Please explain yourself in the newspapers, consider waiting a year to make this change, and hold some public hearings about this. I know you must work long hours and only want to serve the community, but this change sounds really bad for a lot of people.

Sincerely,
Susan Courrejou

40.50 22
Rosemary Balsley
From: Virginia Scott <[email protected]>
Sent: Monday, June 20, 2022 4:18 PM
To: City Council
Subject: Family Service Association funding
To: Santa Cruz City Council members
I have volunteered with the Senior Outreach Program at FSA for 12 years, and can attest that this program provides a much needed service to at risk seniors in our community. With just one paid staff, and, on average, 25 trained volunteers, we provide in home visits, counseling, resource building, and, in some cases, support group counseling for isolated seniors.

Please consider continuing to give financial help to this essential program.

Virginia Morgan Scott

40.51 1
Rosemary Balsley
From: Joan Goldwater <[email protected]>
Sent: Tuesday, June 21, 2022 1:10 PM
To: City Council
Subject: Support FSA and its Outreach Programs
Dear City Council Members,
I am writing to implore you to include Family Services Agency (FSA) and its outreach programs, and the Senior Peer Counseling program in particular, in your projected CORE budget. The FSA has been in existence for many decades, supporting people dealing with a wide range of mental health issues. I am mystified and concerned that this organization, dedicated to serving the most vulnerable in our community, is now threatened with a devastating loss of funding.

For seven years, I have been a volunteer with the Senior Peer Counseling program. This particular program reaches elders in our community who struggle with physical and mental health issues, limited resources, and a myriad of personal, familial, and social issues. Some of the seniors we serve have no one else in their lives to counsel and support them as they struggle to cope with a wide range of problems related to aging. Rather than "do for" these elders, we strive to empower them to maximize their situations. We come to their homes once a week (many are homebound) for a one-on-one, hour-long session. We are trained in active listening, which enables us to give our full attention and caring support. We also offer support groups for those who are able to travel, which provides essential social interaction and the possibility of ongoing connections in the community.

Our clients are often referred to us by medical professionals, including visiting nurses and licensed therapists.

Over the past two-plus years, with the extraordinary isolation caused by the pandemic, seniors have been particularly cut off from human connection. Keeping the program active through zoom and telephone, we maintained some social interaction for these already isolated human beings, who are so grateful for the support of their community. We have even managed to train new counselors in order to strengthen the program as we slowly resume social contact.

Mental health care is vital to the health of our community. You must revise your approach to the new budget to include support for this worthy organization, and particularly the programs that reach out to the hidden treasure that is our Senior Population. We baby-boomers are hitting senior status en masse; we need to utilize and strengthen the foundational support systems already in existence, to better enable all of us to age with dignity and a bit of grace.

Most sincerely,
Joan Goldwater
50 year resident of Santa Cruz

40.52 1
Rosemary Balsley
From: Phyllis Molinari <[email protected]>
Sent: Tuesday, June 21, 2022 7:31 PM
To: City Council
Subject: No longer providing financial support for FSA.

Core…to whom it may concern
I was extremely surprised to hear that Core would no longer be providing financial support for FSA.  This would most definitely effect the Sr. Outreach Program, a very important program providing peer counseling for local isolated seniors in Santa Cruz County.

Please consider the importance of this program for our seniors.

Thank you,
Phyllis Molinari
Sent from my iPad

40.53 1
Rosemary Balsley
From: River Ornellas <[email protected]>
Sent: Wednesday, June 22, 2022 3:48 PM
To: City Council
Subject: Funding For Family Service Agency
Hello,
I am writing to add my voice to those who are requesting funding be restored or even increased for Family Services Agency (FSA).

As a psychotherapist practicing the past 6 years in Santa Cruz county and a county resident since 1986, I am acutely aware of the mental health crisis we face today. Mental health needs have always outstripped availability of services. However, I have never seen this discrepancy be greater than it is now.

All of us have suffered through multiple recent catastrophes, the effects of which will continue to be felt for years. First, it was the forest fires, dislocating hundreds of lives, then the ravages of a 2+ year, ongoing Pandemic. At the same time, our nation is experiencing polarization and division, and the scapegoating of vulnerable populations. I've seen a huge increase in transgender folks, especially teens, seeking mental health services, for example.

Often, on 2 therapist listservs I participate on, I witness therapists unable to match a person in need with a therapist, as many have wait lists like never before. I refer people to FSA programs regularly. The low and no cost services provided by FSA are lifeline services for the less economically privileged, and they are needed now more than ever.

FSA programs are primarily volunteer run and leverage licensed mental health professionals to oversee unpaid interns and para-professionals who provide direct client services. The bang for the buck is enormous. Cutting $172,000 from FSA could kill all these programs.

At this critical time, it is simply unconscionable to cut funding that provides suicide prevention services and vital support services for abuse survivors, women with cancer, Seniors, and others.

Please restore the funding.

Respectfully,
River Ornellas LMFT
__________________________________________________________________________ Please note my office days are: Tuesdays, Wednesdays & Thursdays. I typically do not check messages on other days. I will return your message as soon as I am able, thank you for your patience.

If you are currently experiencing a mental health emergency please dial 9-1-1 or go to your local emergency room.

River Ornellas, MA, LMFT #129842
(They/them)
Gender Affirming Psychotherapy
Mailing Address: 1968 S Coast Hwy #1259, Laguna Beach, CA 92651 Phone: 831.515.8445

40.54 2
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40.55 To whom it may concern,
My name is Norma Z Gillen; I am a resident of Santa Cruz. I am writing this letter to express my gratitude and appreciation for the Peer Counseling I have been receiving through the Senior Outreach Program.

These services have been especially important to me over the last two years as our family has struggled with a serious medical condition affecting our adult daughter. What promised to be a minor surgery ended up being a life-threatening situation during which we thought we would lose her.

I hope you can appreciate how important it has been for me to have someone to talk to, and to help me through these challenges while struggling to maintain a positive and healthful outlook.

It has not been easy, and my Counselor has helped greatly.

I hope my letter serves as a testament to the value of the Senior Outreach Program and Counseling Services you so graciously supply. I will happily share more if you wish, but please, please, continue supporting these services.

Thank you very much, and yours truly,
Norma Z Gillen
1521 Laurel Street
Santa Cruz, California 95060
(651) 269-7482
[email protected]

40.56 1
Rosemary Balsley
From: Lin Colavin <[email protected]>
Sent: Wednesday, June 22, 2022 6:05 PM
To: City Council
Subject: Funding for the Family Service Agency of Santa Cruz Dear City Council Members:

Please find a way to provide funding for the Family Service Agency of Santa Cruz County. The cuts that are proposed by the county for FSA are going to devastate our Santa Cruz Community.

The Family Service Agency provides so many needed and respected services to our community.

I am an on-going volunteer of Family Services Agency Peer to Peer Services. We offer person to person peer counseling to other seniors in the community. We volunteers are all seniors ourselves and we receive amazing training initially and on an ongoing basis every month inorder to be able to truly provide meaningful and much needed support to other seniors. We meet with our clients weekly, one on one, in person ( when it is possible) or on the phone or by zoom.. While no senior is charged, these services cost money for the Family Service Agency to provide. Peer to Peer counselors provide a real safety net to other seniors at absolutely no cost to the folks who use our services.

I love this volunteer peer to peer counseling that I do. I get so much out of working with other seniors helping them find ways to positively change their lives. The smile that my client has when we meet is more than enough thank you. I learn so much from the people that I work with. And seeing how the person is better able to cope with the difficulties that come with growing older is a great gift. .

Please find find funding for the Family Service Agency of Santa Cruz County so it can receive the much needed financial support it needs to continue the great work that it does for our community Sincerely,
Lin Florinda Colavin
434 Pennsylvania Avenue
Santa Cruz, CAl 95062

40.57 1
Rosemary Balsley
From: Polhamus <[email protected]>
Sent: Friday, June 24, 2022 9:47 AM
To: City Council
Subject: CORE funding
Dear Mayor Brunner and Council:

I have followed the CORE funding requests through both county and city meetings. Although all of the programs submitting requests for CORE funding have contributed to our community, there are several I know of personally and wish to voice support for:

I support the funding for "Food, What?!", a youth empowerment program I have been involved with during my years working with at risk youth. This program has literally changed lives while educating youth on the power of their spending and making good dietary choices. Many youth who have participated in this program have gone on to play important roles in our community in food justice services, farmer's market programs and culinary programs.

I support the funding for the Association of Faith Communities (AFC) to further expand case management for its Safe Spaces program, the current expansion of which I also greatly support.

I support the funding for the Boys and Girls Club's Project Learn, which helps provide support and encouragement for educational attainment through its Clubhouse Programs.

I support funding for CAB's Youth Homeless Response Team to serve homeless youth and foster youth with educational support, job search assistance and mentoring.

I support funding for the Teen Kitchen Project, which has also changed the lives not only of recipients but also of participants in helping them contribute to making meals for ill community members while they learn valuable cooking skills and employment skills.

I support dropping the Harm Reduction Coalition of SCC from the CORE panel's recommendations, in sync with the county Board of Supervisors decision not to provide funding for this organization. If you wish to support a harm reduction program, please fund the county's own syringe services program, which has more accountability, HIV and Hep-C testing and referral for drug treatment than the HRCSCC, who has only collected 60% of the needles it has distributed by its own report, leading to significant negative community impacts.

Thank you for allowing my input, and thank you for your service to the city.

Yours,
Carol Polhamus

40.58 1
Rosemary Balsley
From: Big Joe 77 <[email protected]>
Sent: Thursday, June 23, 2022 7:16 PM
To: City Council
Subject: Public Correspondence: June 28th, 2022/ City Council Agenda Item# 40: “CORE Final Award Recommendations”
Honorable Mayor, Vice Mayor, and Council,
I watched with interest the deliberation over the CORE funding requested by Harm Reduction Coalition of Santa Cruz County (HRCSCC) on June 7th, 2022: both at the County Board of Supervisors meeting and your Special Meeting. After emailing you the following information on June 19th, 2022, you’ve had a chance to review it at leisure, so you already know that…
-On June 7, 2022he Board of Supervisors, in a unanimous vote, rejected the CORE Panel’s recommendation of awarding HRCSCC’s application of $144, 600.00 as stated:
“... because it (HRCSCC) doesn’t comply with previous Board direction” (B McPherson, d5).
https://www.youtube.com/watch?v=w-5PGe0e-lQ
-In August of 2020, the HRC
County, with the caveat tha
boundaries. This state appr
award to “address syringe l
months of state approved e
collected).
https://www.goodtimes.sc/s
2Yw_3b_U9GEgmEMmOh9
HRCSCC Annual Report:
https://7cabd232-d920-4e60
13a812e90157.filesusr.com

40.59 2
-In December, 2021, the HRCSCC received a grant award from the Sierra Health Foundation in the amount of $349,999.90 for “Medication Assisted Treatment” (MAT) referrals. The HRCSCC reports that in their first 12 months, they referred 27 persons of a possible 650 to MAT, or 4.1%. Due to HIPAA restrictions, the actual number of referrals who contacted the County MAT Program Staff as a result of HRSCC efforts (pamphlet distribution) are unknown.

Sierra Health grant awardhttps://mataccesspoints.org/wpcontent/uploads/2021/04/MAT_Syringe_Services_Program_2021-22_Awards.pdf HRCSCC Annual Report:
https://7cabd232-d920-4e60-89e4-
13a812e90157.filesusr.com/ugd/378c84_46bcb6d0e0cb496aa63f912d2928f5dc.pdf -In March of 2022, the HRC
award came from the Natio
administered by AIDS Unite
https://www.goodtimes.sc/h
grant/?fbclid=IwAR3iIszaKQ

40.60 3
Council member Brown’s objection that HRCSCC not be excluded from the Motion to Accept (at your June 7th meeting) was made either in ignorance or disingenuity. The HRCSCC has enjoyed grant awards over a 20 month period totaling $849,999.90. I would also note that as stated in their application for CORE funding, the money is needed "to sustain 2 staff positions," and not for services to the needy. You should be aware that the HRCSCC only employs 2 people, and that this entity operates with zero overhead expenses (The HRCSCC operates on a street corner: Coral/ Limekiln).
https://7cabd232-d920-4e60-89e4-
13a812e90157.filesusr.com/ugd/378c84_b18ed7c75fac47b7a157ccb235929e9c.pdf https://www.youtube.com/w
Supervisor McPherson sta
127 applications for CORE
touched ⅓ of that mark: “It
McPherson said.
https://www.youtube.com/w
I’m not sure why the revised CORE Request for Proposals (RFP) format didn’t include prior (say in a 12 month period?) grants awarded to applicants in this “fair and data driven process,” but it apparently did not. I see that the HRCSCC has been removed from the list of recommended awards, but there is still an appeals process. Now the public has the information they need to see that you proceed both equitably and responsibly.

This information is for your information and disposition.

Sincerely,
--
Big Joe 77
Keepin' it Real

40.61 1
Rosemary Balsley
From: Eric Rowland <[email protected]>
Sent: Friday, June 24, 2022 11:36 AM
To: City Council
Subject: HRC (misnomer) funding
Dear Santa Cruz City Council,
I am writing to as you to PLEASE not fund the ironically named "Harm Reduction Coalition" with city funds. First, it is the county's job; second, their own documents confirm that they hand out thousands more needles than they collect, and rarely refer anyone for testing. IMO they cause far more harm than they reduce. Save our money for groups that help people, not one that helps people stay on injected drugs.

Regards,
Eric Rowland
Seabright

40.62 1
Rosemary Balsley
From: Nancy Maynard <[email protected]>
Sent: Friday, June 24, 2022 10:09 PM
To: City Council
Subject: Harm Reduction...no funding
They have no overhead and 2 salaried employees....and the are not transparent...so. a big NO Nancy Maynard

40.63 1
Rosemary Balsley
From: Sally Jones <[email protected]>
Sent: Saturday, June 25, 2022 3:06 PM
To: City Council
Subject: Reconsider Funding
Dear City Council Members,
How difficult these times are for so many.......and you as Council members are in a position to make decisions for those in ongoing crises!
I have been a volunteer group facilitator with WomenCARE for 18 years. This particular weekly group consists of women with Advanced, Metastatic, and Recurrent Cancer.(ARM-IN-ARM) STANDING STRONG!! Women sharing, supporting, learning and courageous......and for many, sadly the time comes to say goodbye.

Members do talk about how valuable this group is and the many services that WomenCARE provides for women struggling with cancer while often trying to cope with families, work and how to live out their remaining lives!! There is no fee for WC clients due to a large group of volunteers. Clients have been dealing with COVID, like everyone else, in addition to appts, surgeries, and medication which have been difficult to access during the last few years. All of this adds stress to a group of people who are already high-risk due to being immune deficient.

Please, please consider continuing to fund WomenCARE! Any female member of our or your families may at some time need this important program.

Hopefully,
Sally Jones, MFCC
Retired

40.64 1
Rosemary Balsley
From: Cyd Percin <[email protected]>
Sent: Saturday, June 25, 2022 5:42 PM
To: City Council
Subject: Funding for Family Services Agency
I am writing to ask you to reconsider funding the Family Services Agency. I am not only a volunteer for the Survivors Healing Center but am also a survivor of early childhood sexual abuse and speak as a survivor. I also have used their services as a continuation of my healing process . I know from first hand experience the support that our agency gives to our clients and the results are astounding. There are many people who are leading full and vibrant lives thanks to our support, therapists and workshops. In my opinion, not funding FSA will have a negative effect for the Santa Cruz population. Your decision will impact our community, I will hope you will take that into consideration.

Warmly,
Cyd Percin
--
• Buddha said: “In the end, only three things matter: how much you loved, how gently you lived, and how gracefully you let go of things not meant for you.”

40.65 1
Rosemary Balsley
From: Lisa Robertson <[email protected]>
Sent: Sunday, June 26, 2022 1:37 PM
To: City Council
Subject: HRCSCC
Hello,
I was born in Santa Cruz, attended local schools and was employed by a large local construction company for decades. I bought a home, raised my children, paid taxes and worked hard all my life. I am saddened and disgusted at what has happened to my beautiful town. Why would you allow drug addicts who add nothing to our community, to ruin what was once an amazing, beautiful place to live? Even worse, you are paying HRCSCC to supply drug paraphernalia to these troubled individuals who will never seek help when it’s given for free, and you pay these ‘do-gooders’ more than what I made working decades, it’s insulting. Where is the common sense here?
I left my hometown after 62 years, many friends and family have moved on too.

A suggestion…maybe be more concerned for the law-abiding, tax paying, hardworking folks who deserve to live a happy life and not take the easy way out…taking drugs, stealing, and living off of free handouts. This is despicable!
You are allowing this to happen, you are ruining my hometown.

Sincerely,
Lisa Robertson

40.66 Collective of Results and
Evidence-based (CORE)
Investments
June 28, 2022
County Board of Supervisors
Santa Cruz City Council

40.67 Agenda
• Modified recommended actions
• Appeals update
• Next Steps

40.68 Modified Recommended Actions

1. Approve Recommended Awards, as modified:
 Large: Senior Network Services, Inc.; Aging in Community  Medium: Big Brothers Big Sisters; Mentoring
 Medium: Family Services Agency (FSA-CC); Suicide Prevention  Medium: Community Ventures: Guaranteed Income for LatinX families  Medium: Diversity Center; LGBTQ mental health services

40.69 Modified Recommended Actions, cont.

2. Approve 3-month bridge funding for those not funded
 Additional material (3a)

3. Direct staff to return, with HSD, regarding status of agreements

4. Direct staff to return, with HSD, in December for
comprehensive report
* Total CORE budget of $5,953,900, with
$1,080,000 adopted for City in FY 2023 budget
Will be covered in #4

40.70 Appeals Update
Summary of GSD findings:
• 19 Agency Appeals = 73 specific items
 30 items deemed “Protest or Statement”
 43 items deemed appeals, within RFP parameters
 42 Denied
 1 Partially substantiated
• Result = No change to recommended award list

40.71 Next Steps
• Immediately:
 Execute new contracts
 Execute 3 month bridge payments
• Fall 2022:
 Initiate evaluation process
• December 2022
 Comprehensive report back

40.72 Questions &
Discussion

40.73 City Council

AGENDA REPORT
DATE: 06/16/2022
AGENDA OF: 06/28/2022
DEPARTMENT: City Clerk
SUBJECT: Resolution Ordering an Election, Requesting the County to Conduct the Election, and Requesting Consolidation of the Election to be Held on November 8, 2022 (CC)
RECOMMENDATION: Motion to:
1) Receive the fiscal impact report, ordered per Elections Code 9212, for the Empty Home Tax initiative petition; and
2) Accept the certificate of verification of signatures for two initiative petitions; and 3) Amend the May 24, 2022 Council direction related to a report on the impacts of the Our Downtown, Our Future initiative; and
4) Adopt a resolution ordering an election to be held on November 8, 2022 and consolidating the election for the purpose of adding two measures to the ballot: Empty Home Tax and Our Downtown, Our Future.

BACKGROUND: On April 21, 2022, an initiative petition, “Empty Home Tax,” was submitted to the City Clerk for verification of signatures. The City Clerk, upon a prima facie count, determined there were more than the required number of actual signatures and delivered the petition to the County Clerk for further verification and certification. On June 3, 2022, the County Clerk certified that the petition had the minimum amount of signatures required for placement on the November ballot. The Council must, no later than 10-days from this meeting 1) adopt the ordinance without changes or 2) submit the ordinance without changes to the voters.

On May 3, 2022, an initiative petition, “Our Downtown, Our Future,” was submitted to the City Clerk for verification of signatures. The City Clerk, upon a prima facie count, determined there were more than the required number of actual signatures and delivered the petition to the County Clerk for further verification and certification. The Council must, no later than 10-days from this meeting 1) adopt the ordinance without changes or 2) submit the ordinance without changes to the voters.

On May 24, 2022, Council directed, per Elections Code 9212, a fiscal impact report for the Empty Home Tax initiative petition to be presented to Council on June 28, 2022.

41.1 On May 24, 2022, Council directed, per Elections Code 9212, an impacts report for the Our Downtown, Our Future initiative petition to be presented to Council no later than July 28, 2022.

DISCUSSION: At the June 28, 2022 meeting, Council will be presented with a fiscal impact report on the Empty Home tax initiative petition, as well as the certificate of verification from the County related to both the Empty Home Tax petition, as well as Our Downtown, Our Future.

Though Council previously directed a full impact report for Our Downtown, Our Future, there is no requirement for the report to be ordered per Elections Code 9212. Due to the need for substantive work and hours to develop the report, the Council can order the report generally on a different timeline, not per Elections Code 9212, so that staff can deliver the full scope as requested on May 24th. It is recommended that the full impact report come to Council no later than September 27, 2022.

The resolution being presented orders the placement of the “Empty Home Tax” and “Our Downtown, Our Future” measures on the November 8, 2022 ballot, and directs the City Attorney to prepare an impartial analysis of both measures in accordance with the requirements of Elections Code 9280.

Arguments for or against measures are due August 19, 2022. Council may provide guidance on and appoint signers for or against the measures, if desired. Under the Elections Code, the proponents of an initiative measure may file a written argument for, and the City Council, or a person or persons designated by the City Council, may submit an argument against. If the Council chooses not to file an argument, then any interested person may do so.

FISCAL IMPACT: The cost of the election is estimated to be in the range of $91,402 to $146,244, based on figures from the County Elections Department.

Prepared By:

Bonnie Bush
City Clerk
Submitted By:

Laura Schmidt
Assistant City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

2. CERTIFICATE OF EXAMINATIONS.PDF

3. EMPTY HOME TAX - IMPACT REPORT, REVENUE ESTIMATE, EXPENDITURE ESTIMATE.PDF

41.2 RESOLUTION NO. NS-30,
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ 1) ORDERING AN ELECTION, 2) REQUESTING COUNTY ELECTIONS CONDUCT THE ELECTION, 3) REQUESTING CONSOLIDATION WITH THE GENERAL ELECTION ON NOVEMBER 8, 2022 FOR THE PURPOSE OF ADDING TWO MEASURES, AND 4) DIRECTING THE

CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS OF THE MEASURES WHEREAS, pursuant to Elections Code Section 10002, the governing body of any city or district may, by resolution, request the Board of Supervisors of the county to permit the county elections official to render specified services to the city relating to the conduct of an election; and WHEREAS, the resolution of the governing body of the city shall specify the services requested; and
WHEREAS, pursuant to Elections Code Section 10002, the city shall reimburse the county in full for the services performed upon presentation of a bill to the city; and WHEREAS, pursuant to Elections Code Section 10400, whenever two or more elections of any legislative or congressional district, public district, city, county, or other political subdivision are called to be held on the same day, in the same territory, or in territory that is in part the same, they may be consolidated upon the order of the governing body or bodies or officer or officers calling the elections; and
WHEREAS, pursuant to Elections Code Section 10400, such election for cities and special districts may be either completely or partially consolidated; and WHEREAS, pursuant to Elections Code Section 10403, whenever an election called by a district, city, or other political subdivision for the submission of any question, proposition, or office to be filled is to be consolidated with a statewide election, and the question, proposition, or office to be filled is to appear upon the same ballot as that provided for that statewide election, the district, city or other political subdivision shall, at least 88 days prior to the date of the election, file with the board of supervisors, and a copy with the elections official, a resolution of its governing board requesting the consolidation, and setting forth the exact form of any question, proposition, or office to be voted upon at the election, as it is to appear on the ballot. Upon such request, the Board of Supervisors may order the consolidation; and WHEREAS, pursuant to Elections Code Section 10418, if consolidated, the consolidated election shall be held and conducted, election boards appointed, voting precincts designated, candidates nominated, ballots printed, polls opened and closed, voter challenges determined, ballots counted and returned, returns canvassed, results declared, certificates of election issued, recounts conducted, election contests presented, and all other proceedings incidental to and connected with the election shall be regulated and done in accordance with the provisions of law regulating the statewide or special election, or the election held pursuant to Section 1302 or 1303, as applicable.

41.3 RESOLUTION NO. NSWHEREAS, the resolution requesting the consolidation shall be adopted and filed at the same time as the adoption of the ordinance, resolution, or order calling the election; and WHEREAS, various district, county, state, and other political subdivision elections have been called to be held on November 8, 2022.

NOW THEREFORE, BE IT RESOLVED AND ORDERED that the City Council of the City of Santa Cruz hereby orders an election to be called and consolidated with any and all elections also called to be held on November 8, 2022 insofar as said elections are to be held in the same territory or in territory that is in part the same and requests the Board of Supervisors of the County of Santa Cruz to order such consolidation under Elections Code Sections 10401, 10403, and 10418.

BE IT FURTHER RESOLVED AND ORDERED that the City of Santa Cruz hereby requests the Board of Supervisors to permit the Santa Cruz County Elections Department to provide any and all services necessary for conducting the election and agrees to pay for said services, and
BE IT FURTHER RESOLVED AND ORDERED that the Santa Cruz County Elections Department shall conduct the election for the attached measures to be voted on at the November 8, 2022 election.

BE IT FURTHER RESOLVED AND ORDERED that the Santa Cruz County Elections Department is requested to print the attached measure text exactly as filed or indicated on the filed document in the County Voter Information Guide for the November 8, 2022 election. Cost of printing and distribution of the measure text will be paid for by the City.

Pursuant to its right, title, and authority under Section 3 of Article XI of the California Constitution and Sections 1415(a)(2) and 9255(b)(1) of the California Elections Code, the City Council hereby calls an election to be held in the City of Santa Cruz on Tuesday, November 8, 2022 for the purpose of submitting to the voters the following measures (and such other questions as the City Council may hereafter order to be presented to the voters):

Measure “___” Empty Home Tax (see Exhibit A for full text) Shall the City of Santa Cruz establish an “Empty Homes Yes Tax” on residences that are vacant 120 days or more per year in the amount of $6,000 per single-family residence, $6000 per parcel with six or fewer units, and $3,000 per year on condominiums and apartments with 7 or more
units, with revenue allocated to affordable housing
projects and programs (with 5% of revenue set aside for homeless services), and expenditures overseen by a
community oversight committee.

No

41.4 RESOLUTION NO. NSMeasure “___” Our Downtown, Our Future – General Plan and Downtown Plan Amendment (See Exhibit B for full text)
Shall the City of Santa Cruz General Plan and Downtown Yes Plan be amended to: (1) prohibit construction of the
proposed Downtown Mixed-Use Library Project and
relocation of the Downtown Farmers Market; (2) require
development of affordable housing on certain Downtown
City-Owned surface parking lots; and (3) designate the
use of surplus parking district revenue for Downtown
affordable housing development projects, alternative
transportation programs for downtown workers and other
non-parking related expenditures?
No
BE IT FURTHER RESOLVED, arguments for or against either measure will be accepted after the deadline set by the City Clerk.

BE IT FURTHER RESOLVED, the City Council hereby directs the City Clerk to transmit a copy of the measures to the City Attorney. The City Attorney shall prepare an impartial analysis of the measures showing the effect of the measures on the existing law and the operation of the measures. The impartial analysis shall be filed by the date set by the City Clerk for the filing of primary arguments.

BE IT FURTHER RESOLVED, if any section, subsection, sentence, clause, or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

PASSED AND ADOPTED this 28th day of June, 2022 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

41.5 RESOLUTION NO. NSRESOLUTION NO. NS-30,XXX

EXHIBIT A
AN INITIATIVE MEASURE PROPOSING AN ORDINANCE ADDING CHAPTER 3.38 TO

THE SANTA CRUZ MUNICIPAL CODE TO ESTABLISH AN EMPTY HOMES TAX, A

PARCEL TAX ON VACANT RESIDENTIAL PROPERTY IN THE CITY OF SANTA CRUZ BE IT ORDAINED by the people of the City of Santa Cruz:

Section 1. Title
This Ordinance may be referred to as the “City of Santa Cruz Empty Home Tax.” Section 2. Purpose
The taxes imposed under this Ordinance are solely for the purpose of raising revenue necessary to support and fund the creation of affordable housing, and related programs, described below.

Because the proceeds of the parcel tax will be deposited into a special fund restricted for the services and programs specified in this Ordinance, the tax is a special tax.

Section 3. Code amendment
A new Chapter is hereby added to the City of Santa Cruz Municipal Code to read as follows:

Chapter 3.38 Empty Home Tax
Section 3.38.010 Definitions
Section 3.38.020 Determination of vacancy
Section 3.38.030 Audit authority and procedures
Section 3.38.040 Imposition of parcel tax on vacant property Section 3.38.050 Empty Home Tax Fund
Section 3.38.060 Use of Empty Home Tax Ordinance revenue Section 3.38.070 Empty Home Tax Oversight Committee
Section 3.38.080 Accountability
Section 3.38.090 False declarations
Section 3.38.100 Enforcement and penalties
Section 3.38.110 Appeal process
Section 3.38.120 Administrative regulations and delegation Section 3.38.010. Definitions.
“Affordable housing” means housing intended to operate as affordable to low, very low, and extremely low incomes as defined in Title 25 of the California Code of Regulations, Sections 6922 (Affordable Rent), 6924 (Affordable Housing Purchase) and 6932 (Income Limits) or their successor provisions by the California Department of Housing and Community Development, in perpetuity, and not subject to a single contract period, regardless of renewability. "Calendar year" refers to the twelve-month period from January 1 through December 31 pursuant to which the City will determine whether any parcel or unit is subject to the tax.

41.6 RESOLUTION NO. NS-
"City" means the City of Santa Cruz.
“Committee” means the Empty Home Tax Oversight Committee which reviews the annual independent fiscal audits and is responsible to issue an annual report on its findings regarding the special tax proceeds being spent for their authorized purposes. “Condominium” as defined in Section 4125 or 6542 of the Civil Code of the State of California. "County" means Santa Cruz County.
“CPI” means the San Francisco - Oakland - Hayward, CA Consumer Price Index for All Urban Consumers (CPI-U) 12-Month Percent Changes, All Items Index, Not Seasonally Adjusted, for October of the subject year.
“Financial expertise” means understanding generally accepted accounting principles and financial statements, experience preparing, auditing, analyzing, or evaluating financial statements, and internal controls and procedures for financial reporting. “In use” means physical occupancy of a residential parcel, dwelling unit, house, apartment, condominium, or townhome by a lawful inhabitant.
“LGBTQIA2S+” means Lesbian, Gay, Bisexual, Transgender, Queer and/or Questioning, Intersex, Asexual, Two-Spirit, and the countless affirmative ways in which people choose to selfidentify. “Long-term care facility” means any licensed facility as defined in California Health and Safety Code Chapter 2.4 Section 1418.
"Mixed-use" means a parcel where residential components must be the predominant use of the property with at least fifty (50) percent of the buildings’ square footage or lot area to be allocated to residential uses and has at least one (1) residential unit and at least one (1) non-residential use. “Mobilehome park” shall mean an area of land in the city where five (5) or more mobilehome spaces are rented, or held out for rent, or made available for use, to accommodate mobilehomes used for human habitation.
"Multifamily residential parcel" means a parcel that is improved with more than one (1) residential unit.
"Nonresidential parcel" means a parcel that is improved with uses other than residential units. "Owner" means the owner or owners of the real property located within the City of Santa Cruz as of the last day of December of the calendar year pursuant to which a property is deemed to have been vacant or not vacant for the purposes of applying any exemptions defined in Section

3.38.040(G). The owner shall not be exempt from the tax unless each person or entity that owns a portion of the real property can separately demonstrate that they are entitled to an exemption.

41.7 RESOLUTION NO. NS-
"Parcel" shall mean a unit of real property in the City of Santa Cruz as shown on the most current official assessment roll of the Santa Cruz County Assessor. “Public parcel” means a parcel that is publicly owned and that is normally exempt from the levy of general ad valorem property taxes under California law, including but not limited to public streets, schools, parks, public drainage ways, public landscaping, wetlands, greenbelts, and public open space.
"Residential parcel" means a parcel that is improved with one (1) or more residential units. "Residential unit" means a building or structure, or portion thereof, designed for or occupied exclusively by one (1) household, including unrelated persons who live together and maintain a common household.
"Single-Family residential parcel" means a parcel which is improved with only one (1) residential unit.
"Tax" or "City of Santa Cruz Empty Home Tax" means the special tax authorized by this Chapter. “Taxable property” means a parcel of real property excluding public, undeveloped, non-residential and mobilehome parks, within the City.
“Townhome” means a single-family dwelling unit constructed in a group of three (3) or more attached units in which each unit extends from the foundation to roof and with a yard or public way on not less than two (2) sides.
"Undeveloped parcel" means a parcel, regardless of zoning or other land use designation, upon which no permanent improvements are constructed or placed. “Vacant” means in use for less than one hundred and twenty (120) days within a calendar year.

Section 3.38.020. Determination of vacancy.

A. For the purposes of this Chapter, a taxable property, shall be deemed "vacant" and subject to the tax imposed by Section 3.38.040 below if the parcel is any of the following:

1. A single-family residential parcel that is in use less than one hundred and twenty (120) days during a calendar year.

2. A condominium or townhome unit under separate ownership that is in use less than one hundred and twenty (120) days during a calendar year.

3. A multifamily residential parcel, including mixed-use, with six (6) Residential Units or less where all units are in use less than one hundred and twenty (120) days during a calendar year, assessed on a per parcel basis.

41.8 RESOLUTION NO. NS4. A multifamily residential parcel, including mixed-use, with seven (7) or more Residential Units where any unit is in use less than one hundred and twenty (120) days during a calendar year, assessed on a per unit basis.

B. The vacancy status of a taxable property shall be determined by an annual declaration of the owner, their agent, or a representative authorized to declare on their behalf.

1. The City shall establish a process for annual declaration of vacancy status for a taxable property, that shall include the following components. a. A website or online portal which explains the Tax and allows declaration of vacancy status.
b. A paper declaration form and instructions to be mailed to owners no later than December 31 of the calendar year for which the Tax is being imposed using the name and address found on the Santa Cruz County Secured Tax Roll.
c. A method to claim exemption from the Tax pursuant to Section

3.38.040(G) of this Chapter. Any taxable property deemed exempt from the Tax shall not be required to submit an annual declaration of vacancy status.

2. The owner or their agent or representative shall declare vacancy status no later than April 15 of the year following the calendar year for which the Tax is being imposed.

Section 3.38.030. Audit authority and procedures
A. The City shall establish a process to annually audit taxable properties declared “in use” as defined in this Chapter to verify the declaration of vacancy status. The process shall include the following components:

1. A registered owner may be required to provide information at any time and for a period of up to three (3) years after the applicable calendar year respecting:
a. the property;
b. the identity and address of the registered owner;
c. the status of the property; and
d. the nature of the occupancy of the property.

2. If audited, the owner or their agent or representative shall be required to submit documentation or evidence as required by separate ordinance or regulation adopted by the City Council by resolution in support of their vacancy status declaration.

41.9 RESOLUTION NO. NSB. Not more than once annually, the City may examine and perform an audit to review the requested documentation or evidence submitted by an owner to substantiate their vacancy declaration status to ensure compliance with Section 3.38.020. Audits may be performed:

1. any time the City believes an owner is making a false declaration of vacancy status;

2. when there is a pending ownership change; and

3. at appropriate intervals as determined by the City.

Section 3.38.040. Imposition of parcel tax on vacant property.

A. A special tax in the amounts set forth below is hereby imposed on every taxable property within the City determined pursuant to Section 3.38.020, except as exempted, as described below in Section 3.38.040(G).

B. The Tax constitutes a debt owed by the owner of each taxable property to the City.

C. The County shall levy and collect the Tax on each taxable property in the City for which the owner receives a separate ad valorem property tax bill, at the same time and manner, and subject to the same penalties and procedures as ad valorem property taxes collected by the County except as otherwise set forth in this Ordinance.

D. The Tax shall be imposed on the ad valorem property tax bill for the fiscal year that begins July 1 following the end of the calendar year in which the taxable property was vacant.

The special tax shall first be imposed no sooner than the ad valorem property tax bill for fiscal year 2024-2025 for taxable properties that were vacant in the previous calendar year.

E. Tax Rates.

1. The tax rates for each taxable property type shall be as set forth in the table below.

The City shall be responsible for assigning a tax rate for each parcel. The City shall not lower the rates or adopt further categories of exemption without voter approval.

Taxable Property Type Annual Tax Rate
Residential parcel with six (6) or fewer units $6,000.00 per vacant parcel Condominium or townhome under separate
ownership $3,000.00 per vacant residential unit
Residential unit on parcel with seven (7) or
more units $3,000.00 per vacant residential unit

2. For residential parcels with one to six (1-6) units, the parcel is not vacant if any unit on the parcel is “in use” as defined in this Chapter. A condominium or townhome under separate ownership is treated as a separate unit, and if not “in

41.10 RESOLUTION NO. NSuse”, is subject to the tax regardless of the status of any other unit on the same parcel, lot or that is part of the same development. For residential parcels with seven (7) or more units, the vacancy status of each unit is assessed individually for the purposes of this Chapter, and if it is not “in use”, it is subject to the tax regardless of the status of any other unit on the same parcel or that is part of the same development.

3. On January 1 of the year after the tax in this Chapter is enacted, and every January 1 thereafter, the City shall adjust the tax rates in Section 3.38.040(E) to account for the rate of inflation by the lesser of the CPI for the prior year or two (2) percent, except that in the event of a negative CPI no adjustment shall be made, rounded to the nearest one dollar ($1). The incremental change shall be added to the associated tax rate for that year.

F. Real property otherwise wholly exempt from ad valorem tax by state law shall also be exempted from the tax imposed by this Chapter.

G. Claimed Exemptions.

1. A taxable property owner may claim an exemption from the tax imposed by this Chapter in any of the circumstances specified in this Section. The following exemptions shall be granted when such exemption has been properly claimed by the taxable property owner and when the grounds for such exemption have been fully verified:
a. An owner, for any period of time during the relevant calendar year, experienced a significant medical event that kept the owner from engaging in their normal work or business activities for at least thirty (30) days. b. A taxable property that is vacant due to a demonstrable hardship that is unrelated to the owner's personal finances. The following circumstances constitute a "demonstrable hardship":
1) The subject taxable property was, for at least one hundred and eighty (180) days during the relevant calendar year, subject to a lis pendens, or similar court order, giving notice of a conflict regarding title or ownership interests, pursuant to any pending lawsuit, probate action, condemnation action or other action or proceeding filed with any court.
2) The owner, for at least sixty (60) days during the relevant calendar year, was serving in the military and deployed in another state or overseas.
3) The then owner died at some time during the relevant calendar year.

41.11 RESOLUTION NO. NS4) The owner inherited the taxable property during the relevant calendar year or in the immediately preceding calendar year. c. The subject taxable property is under active construction. To qualify for this exemption, an owner must keep the building permit or permits active.

The "active construction" exemption applies if the owner held, for at least fifty (50) days during the relevant calendar year, a valid and active building permit for the taxable property.
d. An owner of taxable property for which an active building permit application is being processed by the City. This "building permit application" exemption applies if during or previous to the relevant calendar year, the owner submitted a building permit application to the City and the total number of days during which the application was pending plus any number of days after the application was approved but before the end of the relevant calendar year was at least fifty (50) days. e. An owner of a taxable property which is included in a substantially complete application for planning approvals that has not yet received approval. An owner of a taxable property for which a project with development entitlements has been approved but needing time for completion may apply for and receive a one-time three-year exemption.

The "substantially complete application for planning approvals" exemption applies if the owner held a notice from the City stating that an application for planning approvals with respect to the subject taxable property was complete and such application remained pending for at least fifty (50) days during the relevant calendar year. After an application for planning approvals is approved for the subject taxable property, the owner may apply for an administrative one-time three-year exemption, exempting the subject taxable property from being deemed vacant for the calendar year during which the application for planning approvals was approved and for the following two calendar years. Exemption expires upon issuance of certificate of occupancy.
f. An owner of taxable property who demonstrates to the satisfaction of the City Planning Department that the taxable property is not habitable for at least one hundred and twenty (120) days during the calendar year, due to being affected by natural disaster or environmental hazard. g. An owner placed in a long-term care facility or that has moved permanently into a family member or friend’s home to receive care will receive a onetime three-year exemption from the tax which includes the calendar year the owner was placed in long-term-care outside of the taxable property. h. Taxable property registered under the Santa Cruz Short Term Rental Ordinance.

41.12 RESOLUTION NO. NSi. One hundred (100) percent of the legal interest in the taxable property is transferred within the relevant calendar year.

2. Pursuant to Section 3.38.020(B) of this Chapter, the City shall establish the procedures and guidelines for owners to apply for, and grant, the exemptions identified in this Section as part of the declaration process. owners who claim an exemption may be required to submit information annually to substantiate their continuing qualification for an exemption.

3. The City Council may, by ordinance, provide supplemental definitions for the exemptions in this Section and for the administration of the exemptions.

Section 3.38.050. Empty Home Tax Fund.

The "Empty Home Tax Fund" ("Fund") is hereby created as a special revenue fund. Proceeds from the Santa Cruz Empty Home Tax, including penalties and interest earned on such proceeds, shall be deposited into the Fund and used only for the purposes listed in Section 3.38.060.

Section 3.38.060. Use of Empty Home Tax Ordinance revenue.

Monies deposited in the Empty Home Tax Fund shall be used solely for those purposes identified in this Section.

A. Monies in the Fund may be used to finance the construction of affordable housing as defined in this Chapter.

B. Monies in the Fund may be used to purchase existing housing units for the purposes of maintaining or converting them to affordable housing as defined in this Chapter.

C. A residential unit is considered affordable housing if it falls under any of the following restrictions:

1. public housing owned by the City, County, State, or Federal government, subject to internal legal restrictions on affordability consistent with affordable housing as defined in the Chapter;

2. privately owned housing with a transferrable affordability restriction applied on the deed consistent with affordable housing as defined in the Chapter;

3. housing under an easement contract owned by any government agency stipulating its usability only for affordable housing as defined in this Chapter; or

4. housing owned by a nonprofit affordable housing provider with internal bylaws that do not include a fixed contract term of affordability, and with a reasonable expectation of long-term affordability protections consistent with affordable housing as defined in the Chapter.

41.13 RESOLUTION NO. NSD. Up to five (5) percent of the revenue deposited into the Fund in any single year may be used to provide sanitation, bathroom, and hygiene services for the unhoused community in the City.

E. Monies in the Fund may be used to pay the costs of an independent third-party audit of the use of monies in the Fund.

F. Monies in the Fund may be used to pay for the costs of administering the Tax, regardless of how or by what entity those administrative services are provided. No more than fifteen (15) percent of the revenue deposited into the Fund in any single year may be used to pay for such administrative costs, except that revenue used to pay for the costs of the Empty Home Tax Fund Oversight Committee established by Section 3.38.070 shall not count toward the fifteen (15) percent. Notwithstanding the foregoing, the City shall be reimbursed for its administrative costs of establishing the program for collecting the tax, whose costs shall be confirmed by a third-party auditor. Administrative costs include, but are not limited to:

1. the costs to the City associated with monitoring and enforcing compliance with this Chapter;

2. the costs to the City associated with developing ordinances and regulations to implement this Chapter;

3. the costs to the City associated with the operations of the Empty Home Tax Fund Oversight Committee established by Section 3.38.070; and

4. the costs to the City associated with collecting the tax.

Section 3.38.070. Empty Home Tax Oversight Committee.

A. The Empty Home Tax Oversight Committee is hereby established for community oversight of the Tax established by this Chapter, and to make recommendations to the City to improve zoning and land use designations to better support the creation of affordable housing as defined by this Chapter.

B. The Committee shall meet at least one (1) time per calendar year and more frequently as needed. The first meeting of the Committee each year shall be held within three (3) months of the release of the annual audit. A majority of Committee members may request in writing that the City Council approve the Committee meeting more than once per year.

C. The Committee shall review relevant financial and operational reports, including enforcement and compliance data, related to the expenditures. The Committee shall publish an annual report that shall be posted on a dedicated page of the City of Santa Cruz website regarding how and to what extent the City has implemented this Chapter.

Additionally, the Committee may obtain or prepare and publish reports regarding the following:

41.14 RESOLUTION NO. NS1. recommendations from the Committee for consideration by the City Council on how to prioritize the allocation of funds in accordance with the requirements of this Chapter, including for supporting the provision of affordable housing to households qualifying at least low-income households (those at fifty (50) percent Average Median Income or below); and

2. information, if available, concerning the impacts of programs funded by the Empty Home Tax in the City.

D. The Committee shall appoint a member as liaison to communicate with the City Manager and City.

E. The Committee shall consist of nine (9) members who are all residents of the City. No fewer than three (3) members must be renters. No fewer than two (2) members must be in the low, very low or extremely low income category but do not have to be renters. No fewer than two (2) representatives must have financial expertise. No fewer than one (1) member shall be a currently enrolled student at the Santa Cruz campus of the University of California at the time of appointment. No fewer than one (1) member must be a city worker who is an active member of a union bargaining unit during their tenure on the Committee. Members may fulfill more than one (1) of these criteria for the purposes of meeting these requirements. The City will hold an open application period for all seats similar to the process for other Advisory Bodies. Members of the Committee shall be appointed by the City pursuant to Section 2.40 of the City of Santa Cruz Municipal Code.

Members of the Committee shall receive no salary for serving.

F. Members shall serve four (4) year terms, as provided for in Santa Cruz Municipal Code Section 2.40.011(c). No member shall serve more than two (2) consecutive four (4) year terms. Of the initial members of the Committee, three (3) appointments shall be for oneyear terms, three (3) appointments shall serve for two-year terms, and three (3) appointments shall be for three-year terms. Thereafter, all terms shall be for four (4) years.

All terms of members shall begin as of the date that nine (9) members have been appointed, which is when the Committee may begin its work. All future terms shall begin and end on that same day and month of subsequent years.

G. A quorum of the Committee shall never be fewer than five (5) members and if seats are not filled due lack of applicants, work may begin with five (5) members and a quorum will consist of three (3) members.

H. A member may be removed for cause by a majority vote of the City Council. Absence from three (3) consecutive regular meetings, or four (4) non-consecutive regular meetings during a single fiscal year, may constitute cause for removal from the Committee. In addition, any cause for removal may be voted on by the Committee and if a majority votes to recommend removal, it shall be referred to the City Council for a final vote on removal of the member from the Committee. If the City Council fails to appoint a Committee member following a vacancy within three months (3) of the vacancy, the Committee may appoint an interim Committee member by a majority vote.

41.15 RESOLUTION NO. NSI. The City Manager or designee shall provide clerical assistance, administrative support and technical assistance to the Committee and shall be present at the Committee meetings.

J. The Committee may hold at least one (1) meeting per year at a location outside of City Hall but within the City of Santa Cruz.

K. The Committee may convene community meetings to solicit community testimony and other input to build trust between the community, neighborhoods and the City, and to address other similar and relevant subjects as determined by the Committee within its jurisdiction.

L. The Committee may invite subject matter experts and individuals to provide informational presentations, including but not limited to representatives from faith-based groups, nonprofit affordable housing developers, land use experts, unhoused community advocates, renters’ rights groups, land trusts, youth groups, LGBTQIA2S+ advocates, veterans, racial equity experts, and other members of the community.

M. The Committee may establish by a majority vote, bylaws, working groups and subcommittees.

N. Committee members shall be provided and shall attend training on the following:

1. basic principles of Robert's Rules of Order and meeting procedures; and

2. the legal requirements of California's Political Reform Act (Cal. Gov. Code section 81000, et seq.), Santa Cruz's Conflict of Interest Code (Resolution No. NS-18,483 - 2/14/89), California's Brown Act (Cal. Gov. Code section 54950, et seq.), and California's Public Records Act (Cal. Gov. Code section 6250, et seq.) and diversity, equity and inclusion.

Section 3.38.080. Accountability.

In accordance with the requirements of California Government Code Sections 50075.1 and 50075.3, the following accountability measures, among others, shall apply to the tax:

A. A separate, special account, referred to as the Empty Home Tax Fund, shall be created, into which the proceeds of the Tax must be deposited.

B. The specific purposes of the Tax are for provision of affordable housing and for the other purposes set forth in Section 3.38.060 of this Chapter. The proceeds of the tax shall be applied only to these specific purposes.

C. The Committee established by Section 3.38.070 shall perform the oversight functions listed in that Section to ensure that the revenue from the tax is spent solely for the purposes listed in Section 3.38.060.

41.16 RESOLUTION NO. NSD. An independent third-party auditor shall perform regular audits at least annually to ensure accountability and proper disbursement of all revenue collected by the City from the Tax imposed by this Chapter, in accordance with the objectives stated herein and in compliance with provisions of California law.

3.38.090. False declarations.

Any person required to make, render, sign or verify any report under the provisions of this Chapter, who makes any false or fraudulent declaration, with intent to defeat or evade the determination of an amount due and required to be paid hereunder, is guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than five hundred (500.00) dollars or by imprisonment in the county jail for a period of not more than six (6) months, or by both such fine and imprisonment.

3.38.100. Enforcement and penalties.

A. Except as provided in Section 3.38.090, a violation of any of the provisions of this Chapter shall constitute an infraction for the first two (2) violations of this Chapter in a one-year period, which shall be punishable by a fine in a bail established by the City Council by resolution. Each person or entity in violation of this Chapter may be charged with a separate offense for each and every day during any portion of which any violation of any provision of this Chapter is committed, continued or permitted by such person or entity and shall, upon conviction, be punished accordingly. Three (3) violations within a oneyear period shall constitute a misdemeanor, which shall be punishable by a fine of one thousand (1,000.00) dollars and/or by imprisonment in the county jail for a period of not more than six (6) months.

B. In addition to any other remedy provided by this code, this Chapter may be enforced by injunction issued by the superior court upon a suit brought by the City of Santa Cruz, or upon a suit brought by any aggrieved party. Pursuant to Section 4.04.020, as part of a civil action filed to enforce provisions of this chapter, a court may assess a maximum civil penalty of two thousand five hundred (2,500.00) dollars per violation of this chapter for each day during which any person commits, continues, allows or maintains a violation of any provision of this chapter.

C. This Chapter is enacted for the significant public benefit of promoting public health, safety and welfare to minimize any adverse impact on the community due to vacant residential units exacerbating the housing affordability crisis and to increase the affordable housing stock for the lowest income levels in the City. Therefore, if a private attorney general plaintiff successfully brings an action to enforce this Chapter against any offenders of this Chapter, it is the desire and intent of the city of Santa Cruz that the successful plaintiff be able to recover its reasonable attorneys’ fees under Code of Civil Procedure Section 1021.5, or any similar private attorney general successor statute.

D. Repeated violations of this Chapter constitute a public nuisance which may be enjoined under all applicable law, including, but not limited to, Municipal Code Section 4.04.020 and Code of Civil Procedure Section 731. Therefore, pursuant to Municipal Code Sections

4.25.010 and 4.25.020, the prevailing party to an action or proceeding to enjoin a public

41.17 RESOLUTION NO. NSnuisance arising from violations of this Chapter shall recover the amount of its reasonable attorneys’ fees.

E. If the owner of a taxable property previously declared “in use” cannot provide requested required documentation to substantiate that status, the taxable property will be considered to be “vacant”, and excluding a successful appeal pursuant to Section 3.38.110 of this Chapter, be subject to the Tax and any associated penalties. Additionally, the owner of the taxable property shall be subject to all of the following:
a. immediate audit of the declaration of vacancy status for the three (3) preceding calendar years, except; if the tax has not yet been enacted for the preceding three (3) calendar years, the declaration of vacancy status shall be audited for all preceding calendar years in which the tax was applied; if the current majority interest property owner has not owned the taxable property for the entirety of the audit period defined above, the audit will be constrained to only the time period the current owner held a majority interest in the taxable property; if one hundred (100) percent of the legal interest in the taxable property was transferred within the preceding three (3) calendar years, the declaration of vacancy status shall be audited only back to the calendar year immediately following the transfer; b. ongoing audit of the declaration of vacancy status for the two (2) following calendar years; and
c. pursuant to Santa Cruz Municipal Code Chapter 4.26, any additional administrative costs associated with audits required due to an owner being unable to provide required documentation to substantiate vacancy status shall be recovered from the owner directly. Monies recovered through this provision shall be deposited in the Empty Home Tax Fund.

F. The City may take any other action permitted by law to ensure compliance with this Chapter and other City ordinances subject to its administration, including, but not limited to, general municipal code enforcement procedures in Santa Cruz Municipal Code Title 4.

G. The remedies provided herein shall be cumulative and not exclusive. No remedy provided in this Chapter shall be deemed to be a prerequisite to the taking of any other action provided for herein.

Section 3.38.110. Appeal process.

A. Request for Hearing. Following an adverse decision after an audit pursuant to Section

3.38.030 or the imposition of the tax pursuant to Section 3.38.040 an owner may, within twenty (20) days of notification of an adverse decision of an audit or receiving their ad valorem tax bill, file a petition and request an appeal hearing before a hearing officer as defined in Section 4.22 of the Santa Cruz Municipal Code. Upon such request, the City Manager shall randomly appoint an independent hearing officer from a panel of at least five (5) previously identified hearing officers.

41.18 RESOLUTION NO. NSB. Pre-Hearing Procedure. Prior to the hearing, the hearing officer may receive supplemental materials and evidence from the petitioner and the City. As soon as practical, the hearing officer shall set a deadline to receive any supplemental materials and evidence and shall set a hearing date.

C. Hearing Procedure. Formal rules of evidence shall not apply to the conduct of the hearing and decisions shall be made on the preponderance of the evidence standard. The hearing officer shall have the authority and discretion to permit examination of witnesses. Any party to a hearing may be assisted by a representative, including an attorney.

D. Decision Following Hearing. As soon as practical following the hearing, the hearing officer shall issue a written decision regarding the vacancy status of the subject taxable property. At the discretion of the hearing officer, the decision may, but is not required to, include findings of fact. The hearing officer's decision shall be considered final on the day it is executed by the hearing officer.

E. Further Action. After the hearing officer issues a final decision, any party may seek further appropriate relief from the superior court. Any person whose complaint, claim, or petition may be resolved by employing the administrative remedies provided in Section 3.38.110 (A-D) must exhaust those remedies before filing any suit for refund, rebate, exemption, cancellation, amendment, adjustment, or other codification of the tax.

Section 3.38.120. Administrative regulations and delegation.

A. The City is authorized to adopt rules and regulations consistent with this Chapter as needed to implement this Chapter, and to develop all related forms and/or other materials and take other steps as needed to implement this Chapter and make such interpretations of this Chapter as they may consider necessary to achieve the purposes of this Chapter.

B. The City Manager may delegate any authority within the City Manager’s discretion pursuant to this Chapter as the City Manager deems reasonably necessary.

Section 4. Severability.

If any section or portion of this Ordinance is found to be invalid by a court of competent jurisdiction, such finding shall not affect the validity of the remainder of the Ordinance, which shall continue in full force and effect, and to that extent, the provisions of this Ordinance are severable.

Section 5. California Environmental Quality Act requirements.

The City hereby determines that this Ordinance is not in-and-of-itself a "project" pursuant to the California Environmental Quality Act, Public Resources Code section 21000 et seq., including without limitation CEQA Guidelines 15378(b)(4) and 1506l(b)(3), as it can be seen with certainty that there is no possibility that the adoption of the ordinance itself may have a significant effect on the environment. To the extent that special tax revenues generated by the Ordinance may in the future be used to fund the construction of capital improvements, the Ordinance may assist in the financing of future "projects'' that will be subject to environmental review pursuant to CEQA at the "earliest feasible time" prior to "approval" consistent with CEQA Guidelines Sections 15004

41.19 RESOLUTION NO. NSand 15352.

Section 6. Approval; effective date.

This Ordinance, and all the provisions thereof, shall become effective only upon affirmative passage by a fifty (50) percent plus one (1) majority vote of the voters voting on the Ordinance.

This Ordinance shall be considered adopted on the date that the City declares the results of the election at which it was voted upon and shall be effective ten (10) days thereafter.

Section 7. Council amendments.

This Ordinance may only be amended by a vote of the people if the amendment would result in the special tax being imposed, extended, decreased or increased in a manner not authorized by this Ordinance as originally approved by the voters. The City Council of the City of Santa Cruz is hereby authorized to amend Chapter 3.38 of the Santa Cruz Municipal Code as adopted by this Ordinance in any manner that does not decrease or increase the tax rates, or otherwise constitute a tax increase for which voter approval is required by Article XIII C of the California Constitution.

41.20 RESOLUTION NO. NS-30,XXX

EXHIBIT B
The full text of the Measure is as follows:

The People of the City of Santa Cruz do hereby ordain as follows:

Section 1. Purposes
The purposes of this Measure are to establish policies:
(1) to address the City’s housing crisis by prioritizing development of affordable housing on specified City-owned properties in Downtown Santa Cruz; (2) to maintain the Downtown Farmers’ Market and Downtown Library, important community institutions, at their current locations;
(3) to prevent the construction of a multi-level parking garage Downtown that transportation consultants to the City have concluded is unnecessary. The garage would contribute to increased greenhouse gas emissions.
(4) to prioritize the expenditure of surplus parking revenue for:
(a) promoting development of affordable housing Downtown, (b) supplementing 2016 Bond Measure S funding to renovate and modernize the Downtown Library,
(c) making improvements to the public space hosting the Downtown Farmers’ Market; and (d) providing funding for transportation demand management programs that reduce vehicle trips and make more parking available to visitors.

This measure further directs City officials to make any further conforming changes to the General Plan, Downtown Plan, Zoning Ordinance, and/or Local Coastal Program that are necessary and appropriate to comply with this Measure and State law.

Section 2. Findings
The people of City of Santa Cruz find and declare:

1. Action is needed to maintain Downtown as a place where a broad diversity of people can meet their needs in a Complete Neighborhood.

The Santa Cruz 2030 General Plan explicitly values “Complete Neighborhoods.” These are neighborhoods where people can live, work, access goods and services, recreate, learn, and

41.21 socialize. Complete Neighborhoods include housing for a diversity of income levels. The General Plan adds to the definition of Complete Neighborhoods: “Residents need access to parks, open space, and other places where they can relax and socialize.” Planning for a Downtown that includes affordable housing prioritized on City-owned underutilized property, an improved Downtown Farmers’ Market and event space, and a renovated and modernized Downtown Library at its historic location across from City Hall will enhance Downtown as a Complete Neighborhood. The experience of cities across the world is that Complete Neighborhoods reduce demand for auto transportation and parking.

2. Housing Affordability Is a Pressing Need.

A. According to the National Low Income Housing Coalition report (2019), Santa Cruz is the least affordable small city in the US. The limited supply of housing and especially affordable housing relative to demand causes stress and disruption of our community.

B. In Downtown locations where parking demand can be met, conversion of specified Cityowned surface parking lots for development of affordable multi-family dwellings can add at least twice as many and potentially three times as many affordable housing units as currently proposed for City Lot 4, the current site of the Downtown Farmers’ Market on Cedar Street, including 120 to 200 units on Lot 7, a City-owned lot on Front Street, and additional units on other City parking lots specified for affordable housing development in this Measure. Public parking continuing on the ground levels of these and other structures can meet localized parking demand.

C. The Housing Crisis Act of 2019 (“SB 330”) calls for the expansion of residential development opportunities throughout the City, including opportunities for affordable housing development. Consistent with this State law, this Measure prioritizes affordable housing development on certain designated City-owned parcels that are now used as surface parking lots.

3. Farmers’ Market Open Space is a Community Priority.

A. As more housing is developed Downtown, the need for public space for residents becomes more acute. As the City’s General Plan provision calling for Complete Neighborhoods states, “Residents need access to parks, open space, and other places where they can relax and socialize.”
B. Retaining the Downtown Farmers’ Market where it has been for over two decades, at 119 Lincoln Street on the City-owned parcel known as Lot 4, will further the policies and goals of the City’s General Plan that provides for “establishing a sense of place and walkability of the City,” and of the Downtown Plan that provides that: “Open spaces within downtown Santa Cruz should have value and meaning; they should be carefully located where people want to be and in locations that take advantage of the unique resources, heritage, and traditions of the community.” The proposed move of the Downtown Farmers’ Market from its current location to the smaller Lot 7 on traffic-congested Front St. at Cathcart St. or another location would inhibit adherence to these policies and achievement of these goals,

41.22 and is inconsistent with the Downtown Plan.

4. The Downtown Library, thoroughly modernized at its current location, can serve the public well and enhance the Civic Center.

A. Measure S, passed in 2016, provides bond funds for the Santa Cruz Libraries Facilities Financing Authority to “modernize, upgrade and repair local libraries in Santa Cruz [and other locations] – replace failing roofs, outdated bathrooms, electrical systems/ structurally damaged facilities; support growing use by children, seniors, veterans and others; expand access to modern technology; and construct/ expand facilities where necessary.” B. City consultants Jayson Architecture have proposed plans to use a portion of the City’s share of Measure S bond funds to thoroughly renovate the existing Downtown Library to create a 21st-century facility with new plumbing, electrical, HVAC, shelving, carpeting, lighting, and elevators, and adjacent handicapped and other parking. The proposal includes study rooms, a teen space, and a greatly increased children’s area and large community room, both with outdoor patios.

C. Creating a state-of-the-art Downtown Library at its present site builds on the 117-year tradition of having the Library in the city's Civic Center.

5. Parking competes with and reduces opportunities for affordable housing.

A. Parking competes with housing for space. According to Urban Planning Partners, reporting to the Santa Cruz City Planning Commission on January 7, 2021, the space required to park two cars (including circulation space) is equivalent to the space required for a two-bedroom housing unit.

B. Parking competes with affordable housing for City funds. Tens of millions of dollars saved from not building a new garage can be used to support development of affordable housing Downtown.

C. Based on parking supply/demand projections and financial considerations, professional parking consultants have advised the City that a new parking garage is unnecessary.

Nelson\Nygaard’s “Economics of Parking: Santa Cruz Strategic Parking Plan” (2019), produced for the City of Santa Cruz, states, “The most fiscally prudent approach to accommodating additional demand: Modernize parking management and better align parking prices to the cost of building and maintaining the system.” This report further states that “In aggregate almost thirty percent of off-street parking in the Downtown remains empty even at the peak of the peak times…. Oversupplying parking in a space-constrained area like a downtown can fragment the built environment, creating a less desirable place to work, live, visit, and walk around.”

6. The City’s Climate Action Goals can be advanced by this Measure.

A. Prioritizing a public space for the Downtown Farmers’ Market on Lot 4, Cedar St., will

41.23 permit the preservation of 10 Heritage trees and preserve the parcel for possible future development as a public space, park, or commons, thereby advancing the City’s Climate Action Goals, rather than undermining them.

B. Expansion of auto infrastructure undermines the ability of the City to reduce automobile dependency, the largest local contributor to global warming. The City failed to achieve its Climate Action Plan (2012) goal of reducing vehicle trips within town by 10% by 2020.

C. Increasing the City’s supply of affordable and market-rate housing can enable more workers to live close to their jobs in Downtown Santa Cruz, reducing vehicle miles traveled.

D. Prioritizing Lot 4 for the Downtown Farmers’ Market and other fairs and public events will allow use of 2016 Measure S Bond funds to renovate and modernize the Downtown Library at its existing location, thereby reducing the production of greenhouse gases required for the construction of a new library as part of a mixed-use project on Lot 4. As the 2021 winners of the prestigious Pritzker Architecture Prize assert: “Never demolish, never remove – always add, transform and reuse.”

7. Surplus parking revenue can support Downtown as a Complete Neighborhood.

The City can avoid building a new garage by following consultant recommendations to make better use of existing parking resources. Savings from not building a garage can be invested in affordable housing and improvements to the Downtown Library and Downtown Farmers’ Market infrastructure, as well as incentives for workers Downtown to commute by means other than single-occupant autos.

Section 3. Definitions
As used in this measure:
“Affordable housing” means residential dwelling units which are affordable to extremely low, very low, low, median, or moderate income households as defined by the Affordable Housing Provisions of the Santa Cruz Municipal Code (Chapter 24.16), or by any federal or state housing program and are subject to rental, sale, or resale provisions to maintain affordability. “Downtown Plan” means the City of Santa Cruz Downtown Plan (September 1991) As Amended through January 28, 2020 and the date of approval of this measure by the voters of the City of Santa Cruz.
“General Plan” means the City of Santa Cruz 2030 General Plan, as amended through the date of approval of this Measure by the voters of the City of Santa Cruz. “Lot 4” means the City-owned parcel at 119 Lincoln Street on the east side of Cedar Street between Lincoln and Cathcart Streets (APN 005-141-21), as shown on EXHIBIT B. “Measure” means this Initiative measure, including its statement of reasons and full text.

41.24 “SB 330” means the Housing Crisis Act of 2019, as approved by the Governor on October 9, 2019 and subsequently codified in the California Government Code. “Surplus parking revenue” means revenue determined by the City Council to be in excess of what is required in order to provide and maintain, improve or expand existing parking facilities or create new parking facilities in of the Downtown Parking District and determined by the City Council as not needed to improve or expand such parking facilities. “Zoning Code” means Title 24, Zoning, of the Santa Cruz Municipal Code.

Section 4. General Plan Amendments
A. The voters hereby amend the City of Santa Cruz 2030 General Plan, Chapter 5 (Mobility), to add the following new General Plan Policy (addition in underline text):

M1.5.7 Prioritize, in a manner consistent with State law, the expenditure of surplus parking revenue from the Downtown Parking District that is in excess of funds needed to provide and maintain existing parking facilities and spaces for use in: 1) supporting the development of affordable housing for people who work Downtown; 2) establishing transportation demand management programs for people who work Downtown, including free transit passes; 3) supporting two Complete Neighborhoods projects – including renovation and modernization of the Santa Cruz Public Libraries’ Downtown Branch at 224 Church Street and improvements to Lot 4, to enhance the use of the space for public gatherings and recreation, including the Downtown Farmers’ Market.

B. The voters hereby amend the City of Santa Cruz 2030 General Plan, Chapter 4, Land Use, to add the following new General Plan Policy LU3.7.2 under existing Policy LU3.7 as shown below (additions in underline text):

RESIDENTIAL USES
LU3.7 Encourage higher-intensity residential uses and maximum densities in accordance with the General Plan Land Use designations. Cf. LU4.1.

LU3.7.1 Allow and encourage development that meets the high end of the General Plan Land Use designation density unless constraints associated with site characteristics and zoning development standards require a lower density. Cf. LU1.3
LU3.7.2 Require, to the maximum extent feasible, that certain designated parcels situated within the City of Santa Cruz Downtown Plan area, as shown in EXHIBIT A, and with the APNs as shown, that are City-owned parcels as of the date the voters approve this Measure, shall be developed with permanently affordable housing, with parking permissible on the ground level and not permissible on floors above the ground level, and public park space permissible, where appropriate. For Lots 14 and 16, library facilities and library-associated functions shall also be permissible on floors above the ground level. This Policy shall apply notwithstanding any subsequent sale or transfer of any City-owned parcels to private parties after the date the voters

41.25 approve this Measure.

C. The voters hereby amend the City of Santa Cruz 2030 General Plan, Chapter 4, Land Use, to add the following new General Plan Policy LU1.1.6 under existing Policy LU1.1 as shown below (additions in underline text):

LU1.1.6 Recognize as a policy priority that the City-owned parcel at 119 Lincoln Street known as Lot 4 (APN 005-141-21) is the preferred long-term location of the Downtown Farmers’ Market as well as other fairs and public events, with other ground-level uses incompatible with this priority strongly discouraged. This policy priority shall specifically not preclude the development of affordable housing and associated uses on Lot 4 above the ground level. Parking and other uses not associated with affordable housing are prohibited in any development on Lot 4 on floors above ground level.

D. The voters hereby amend the City of Santa Cruz 2030 General Plan, Chapter 4, Land Use, to add the following new General Plan Policy LU1.1.7 under existing Policy LU1.1 as shown below (additions in underline text):

LU1.1.7 Recognize as a policy priority that the current location of the Santa Cruz Public Libraries’ Downtown Branch at 224 Church Street is the preferred long-term location of this important community institution, with other uses incompatible with this priority strongly discouraged.

Section 5. Downtown Plan Amendments
A. The voters hereby amend the Downtown Plan, Chapter 1, Introduction, Executive Summary, pp. 10-11, to amend text as shown below (additions in underline text, deletions in strikethrough text):
[continued on next page]

41.26 Reinforcing the Pedestrian-Oriented Environment
Downtown Santa Cruz should be a place where pedestrians feel comfortable throughout the day and nighttime hours. Great pedestrian places are those that always feel full and active, with people promenading, window shopping or watching other people, people sitting in cafes with friends, people passing by on bicycles, or people enjoying a

41.27 spontaneous street performance. The public spaces and streets of downtown Santa Cruz must be appropriately scaled to ensure that a comfortable pedestrian environment is created. As the major open space within the downtown, streets should be designed to respond to the cyclical nature and needs of the community. The ability to have larger pedestrian spaces when they are needed and more intimate and active places at other times will give the streets a life and character of their own. For instance, an annual parade or festival may warrant the temporary closure of all of Pacific Avenue to automobiles, whereas a weekly farmer's market could be accommodated on a particular street segment (e.g., between Cathcart and Lincoln). Similarly, traffic could be closed on other streets within the downtown (e.g., Cooper Street between Pacific and Front or Front Street between Water and River Streets) for special events.

B. The Downtown Plan, Chapter 1, Introduction, Executive Summary, p. 14 is amended as shown below (additions in underline text):

Housing Feasibility and Affordability
A comprehensive housing implementation strategy should be developed by the City to establish a feasible program for the creation of market-rate and affordable housing, including developer incentives, land write-downs, public participation in financing, parking reductions, etc. The Downtown Plan does not recommend the imposition of exactions on commercial developers for the creation of residential development. However, the Downtown Plan requires, to the extent feasible, that certain designated parcels situated within the City of Santa Cruz Downtown Plan area as shown in Exhibit A, and with the APNs as shown, that are City-owned parcels as of the date the voters approve this Measure, shall be developed with permanently affordable housing, with parking permissable on the ground level and not permissible on floors above the ground level, and public park space permissible, where appropriate.

C. The Downtown Plan, Chapter 3, Land Use Plan, The Cedar Street Village Corridor, p. 29, is amended as follows (additions in underline text):

The land use plan and the standards and guidelines strive to preserve and enhance the informal “village” qualities of the Cedar Street Corridor. Unlike the Pacific Avenue district, permitted ground-level uses include office in addition to retail, and residential uses are allowed at the ground level along the east-west streets and Center Street. No strict “build-to” lines are established, and the height of development is purposely stepped down to a maximum of 35 feet, or three floors.

The land use plan further strives to preserve adequate space for the Downtown Farmers’ Market on Lot 4, the City-owned parking lot at 119 Lincoln Street, the east side of Cedar Street between Lincoln and Cathcart Streets (APN 005-141-21).

D. The Downtown Plan, Chapter 4, Development Standards and Guidelines, Additional Regulations – Upper Floor Uses, p. 44, is amended as follows:
(2) Multi-family Housing. Development projects containing up to 60 units in size are principally permitted uses. Residential uses shall incorporate sound attenuation space planning designs and construction materials and methods such that noise from nearby

41.28 commercial activities do not unduly disturb occupants of new dwelling units.

Residential development exceeding 60 units will be considered with a Special Use Permit if it can be demonstrated that such a development includes a mixture of unit types (e.g., variety of unit sizes) that will be attractive to a wide range of potential residents. Single-Room Occupancy projects require approval of an AUP and are subject to 24.12.1000 et seq. Single-Room Occupancy projects exceeding 60 units require approval of City Council. For properties east of Front Street between Soquel Avenue and Laurel Street, housing is a priority use and shall be at least 60% of the total floor area of the project. This requirement does not apply to properties within 75 feet of Laurel Street or Soquel Avenue. Parking shall be a prohibited use above the ground floor of any future development of the City-owned parcels referenced in Policy LU3.7.2 and shown in EXHIBIT A thereto, where upper level affordable housing development is prioritized.

E. The Downtown Plan, Chapter 6, Streetscape and Open Space Plan, Pacific Avenue:

Cathcart to Lincoln, p. 105, first paragraph, is amended as follows (additions in underline text, deletions in strikethrough text):

Pacific Avenue: Cathcart to Lincoln
The segment of Pacific Avenue between Cathcart and Lincoln Streets has a right-ofway width of approximately 80 feet. The area is characterized by a significant number of vacant parcels resulting from the earthquake. These sites include the Ford's Department Store property at Cathcart and Pacific, Plaza and Logos Books, and the Good Times and Gularte properties on the east side of Pacific Avenue. In spite of this devastation, the area is also characterized by several strong destinations including the Del Mar Theater, the Plaza Books Annex, and the Cat ‘n’ Canary clothing store, and the weekly farmer’s market on the Ford's property. Redevelopment efforts are fairly advanced in the area, with three approved projects: two retail/residential developments on the Gularte and Good Times sites, and a retail/office development that will replace Logos Books.

F. The Downtown Plan, Chapter 6, Streetscape and Open Space Plan, Pacific Avenue:

Cathcart to Lincoln, p. 106, second paragraph, is amended as follows (deletions in strikethrough text):

The redevelopment of the Ford's and Plaza Books site will be critical to the achievement of a strong pedestrian environment in this area. The Plan recommends the consolidation of these two properties for the creation of a major retail anchor that could reinforce this portion of the downtown as a strong retailing destination. At the corner of Cathcart and Pacific, a setback of approximately 800 square feet is proposed as an entry plaza and cafe for this anchor use, to activate the street and to create a strong gateway to the downtown. Major storefront displays within the retail development would also serve to enliven the street and build off the creative windows across the street at Cat 'n Canary. The Plan also recommends that this segment of the street be closed on a weekly basis to accommodate the farmer's market.

41.29 G. The Downtown Plan, Chapter 7, Implementation and Management Strategy, Downtown Management Strategy, p. 130, is amended to delete text as follows (deletions in strikethrough text):

Farmer’s Market
• The CRM [Cooperative Retail Management entity] would assist in the coordination and administration of the weekly farmer’s market on the City-owned parcel at 119 Lincoln Street, including issuance of permits, control over individual vendors, and logistics related to setup, trash control, storage of stalls and vehicles, and street cleanup.
• The CRM would also coordinate with adjacent property owners and retailers to ensure that the farmer's market continues to be compatible with their merchandising.

Section 6. Implementation
A. Effective Date. Upon the effective date of the approval of this Measure by the voters of the City of Santa Cruz, the provisions of Section 4 of the Measure concerning parcels that do not lie within the Coastal Zone are hereby inserted into the City of Santa Cruz General Plan, and the provisions of Section 5 of the Measure are hereby inserted into the City of Santa Cruz Downtown Plan; except that if the four amendments of the mandatory elements of the General Plan permitted by state law for any given calendar year have already been utilized in the year in which the Measure becomes effective, this General Plan amendment shall be the first amendment inserted into the City of Santa Cruz General Plan on January 1 of the next year. At such time as the provisions of Section 4 of the Measure are inserted into the City of Santa Cruz General Plan, and the provisions of Section 5 of the Measure are inserted into the City of Santa Cruz Downtown Plan, any provisions of the City of Santa Cruz Zoning Code, as reflected in the Zoning Code itself or in the City of Santa Cruz Zoning Map, that are inconsistent with the provisions of Section 4 and/or Section 5 of this Measure shall not be enforced. The exception to the effective date is the Measure’s application to parcels within the Coastal Zone. Parcels within the Coastal Zone require a Local Coastal Program amendment. The City Council is directed to submit an amended Local Coastal Program to the Coastal Commission within 6 months of voter approval, incorporating the provisions of Section 4 of this Measure. If the Coastal Commission denies the amendment, this Measure’s application to parcels within the Coastal Zone will be void. If the Coastal Commission requires a modification of the amendment, the City Council will have 4 months to approve the modification or withdraw the amendment. For parcels within the Coastal Zone, the provisions of this Measure shall go into effect immediately upon Coastal Commission approval of an amended Local Coastal Program. No voter approval is necessary for the City Council to agree to a modification of the Local Coastal Program required by the Coastal Commission.

B. Interim Amendments. The date that the notice of intention to circulate this Initiative was submitted to the City elections official is referenced herein as the “Submittal Date.” The

41.30 City of Santa Cruz General Plan in effect on the Submittal Date as amended by this Measure is required by state law to comprise an integrated, internally consistent, and compatible statement of policies for the City of Santa Cruz. In order to ensure that nothing in this Measure would prevent the General Plan from being an integrated, internally consistent, and compatible statement of the policies of the county, as required by State law, and to ensure that the actions of the voters in enacting this Measure are given effect, any amendment or update to the General Plan that is adopted between the Submittal Date and the date that the General Plan is amended by this Measure shall, to the extent that such interim-enacted provision is inconsistent with the General Plan provisions adopted by this Measure, be amended as soon as possible to ensure consistency between the provisions adopted by this Measure and other provisions of the General Plan.

C. Compliance with SB 330. The City of Santa Cruz and its City Council are hereby authorized and directed to amend the Santa Cruz General Plan, Downtown Plan, all specific plans, the Zoning Ordinance, the Zoning Map, Land Use Maps, and any other ordinances and policies affected by this Measure as soon as possible and in the manner and time required by any applicable state law, to ensure consistency between the policies adopted in this Measure and any governing provisions of SB 330.

D. Other City Ordinances and Policies. The City of Santa Cruz and its City Council are hereby authorized and directed to amend the Santa Cruz General Plan, Downtown Plan, all specific plans, the Zoning Ordinance, the Zoning Map, Land Use Maps, and any other ordinances and policies affected by this Measure as soon as possible and in the manner and time required by any applicable state law, to ensure consistency between the policies adopted in this Measure and other elements of the General Plan, Downtown Plan, all specific plans, the Zoning Ordinance, the Zoning Map, Land Use Maps, and other City ordinances and policies.

Section 7. Severability and Interpretation
A. This Measure shall be interpreted so as to be consistent with all federal and state laws, rules, and regulations. If any section, sub-section, sentence, clause, phrase, part, or portion of this Measure is held to be invalid or unconstitutional by a final judgment of a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Measure. The voters hereby declare that this Measure, and each section, sub-section, sentence, clause, phrase, part, or portion thereof would have been adopted or passed even if one or more sections, sub-sections, sentences, clauses, phrases, parts, or portions are declared invalid or unconstitutional. If any provision of this Measure is held invalid as applied to any person or circumstance, such invalidity shall not affect any application of this Measure that can be given effect without the invalid application. This Measure shall be broadly construed in order to achieve the purposes stated in this Measure.

B. If any portion of this Measure is held by a court of competent jurisdiction to be invalid, the voters hereby declare their strong desire that: (i) the City Council use its best efforts to sustain and re-enact that portion, and (ii) the City Council implement this Measure by taking all steps possible to cure any inadequacies or deficiencies identified by

41.31 the court in a manner consistent with the express and implied intent of this Measure, including adopting or reenacting any such portion in a manner consistent with this Measure.

C. Should the City Council determine that it is impossible to comply with the requirements of state law without amending the General Plan and/or Zoning Code in a manner inconsistent with the purposes, intent, or operative provisions of this Measure, it shall first seek voter approval of any proposed inconsistent amendments, and should the voters reject such amendments the City Council shall thereafter seek a judicial declaration or similar relief from a court of competent jurisdiction as to the existence and extent of the proposed amendments’ inconsistencies with this Measure.

Section 8. No Unconstitutional Taking
This initiative is not intended, and shall not be applied or construed, to authorize the City to exercise its powers in a manner which will take private property for public use without the payment of just compensation, but shall be interpreted, applied and implemented so as to accomplish its purposes to the maximum constitutionally permissible extent. If application of this initiative to a specific property of record as of its effective date would create a taking, then the City Council may allow additional uses on said property, upon findings that the level of additional development permitted is the minimum necessary to avoid a taking, and no lesser level of development would be sufficient to avoid a taking.

Section 9. Amendment or Repeal
Except as otherwise provided herein, this Measure, including the General Plan Amendments and Downtown Plan Amendments enacted hereby, may be amended or repealed only by a majority of the voters of the City of Santa Cruz.

Section 10. Effective Date and Duration
A. The provisions of this initiative shall remain in effect through the year 2050.

B. This initiative shall take effect 10 days after the city council declares the results of the election approving this measure.

Section 11. Conflicting Ballot Measures
In the event that this Measure and another measure or measures relating to the same or similar subject matter shall appear on the same election ballot, the provisions of the other measures shall be deemed in conflict with this Measure. In the event that this Measure shall receive a greater number of affirmative votes, the provisions of this Measure shall prevail in their entirety, and the provisions of the other measure or measures shall be null and void.

41.32 Exhibit List
EXHIBIT A. Map depicting City-owned parcels in the Downtown Plan area currently used as surface parking lots, to be prioritized for affordable housing development, as designated in this Measure (APN Nos. 005-048-11; 005-048-12; 005-075-12; 005-142-09; 005-151-35; 005-151-48; 005-153-03; 005- 153-05; 005-153-17; 005-153-28; 005-153-29; 007-012-01; 007-012-02).

EXHIBIT B. City Parking Lot 4. Map showing Santa Cruz City-owned parcel at 119 Lincoln Street on the east side of Cedar Street between Lincoln and Cathcart Streets (APN 005-141-21).

EXHIBIT A
Map depicting City-owned parcels situated within the Downtown Plan area, currently used as surface parking lots, to be prioritized for affordable housing development, as designated in this Measure.

41.33 City
Location Parking
on Map Lot APN Street Location
7a 7 005-153-03 Front Street
7b 7 005-153-05 Front Street
7c 7 005-153-17 Front Street at corner of Cathcart Street 7d 7 005-153-28 Front Street
7e 7 005-153-29 Front Street
8 8 005-075-12 Cedar Street at corner of Lincoln Street 9 9 005-142-09 Cedar Street at corner of Elm Street
11 11 005-151-35 Front Street
14 14 005-048-11 Locust Street
16 16 005-048-12 Church Street
26a 26 007-012-01 Center Street at corner of Laurel Street 26b 26 007-012-02 Center Street
27 27 005-151-48 Front Street at corner of Laurel Street

41.34 EXHIBIT B
City Parking Lot 4. Map showing Santa Cruz City-owned parcel at 119 Lincoln Street on the east side of Cedar Street between Lincoln and Cathcart Streets (APN 005-141-21).

41.35 CLERK’S CERTIFICATE OF EXAMINATION OF INITIATIVE PETITION I, Tricia Webber, County Clerk of Santa Cruz County, California, hereby certify that:

AN INITIATIVE MEASURE PROPOSING AN ORDINANCE ADDING CHAPETER  3.38 TO THE SANTA CRUZ MUNICIPAL  CODE  TO  ESTABLISH  AN EMPTY  HOMES  TAX,  A  PARCEL  TAX  ON  VACANT  RESIDENTIAL PROPERTY IN THE CITY OF SANTA CRUZ.

This initiative was filed with our office on 4/26/2022. Said petition consists of 350 sections; Each section contains signatures purporting to be the signatures of qualified electors from the City of Santa Cruz;
The petition sections at the time of filing contain an affidavit of the person who solicited the signatures and the dates between which the purported qualified electors signed this petition; The affiant stated he/she solicited the signatures upon that section, that all of the signatures were made in his/her presence, and that to the best of his/her knowledge and belief each signature was the genuine signature of the person whose name it purports it to be; After the proponent filed this petition, I verified the required number of signatures by examining the records of registration in this county, current and in effect at the respective purported dates of such signing, to determine what number of qualified electors signed the petition and from that examination, I have determined the following facts regarding this petition:

1. Number of signatures filed by proponent     6,289

2. Number of signatures verified                                 6,289 A. Number of signatures found SUFFICIENT                         4,156 B. Number of signatures found NOT SUFFICIENT                2,133 C. Number of DUPLICATE signatures        346
Method of Verification:    DFM Associates Program
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal this the 3rd day of June, 2022.

Tricia Webber, County Clerk

___________________________
Gina Lapioli, Program Coordinator

COUNTY CLERK / ELECTIONS
701 Ocean Street, Room 310, Santa Cruz, CA 95060-4076
831-454-2060 Toll-free: 866-282-5900 FAX: 831-454-2445 TDD: 711 E-mail: [email protected] Web Sites: www.sccoclerk.com & www.votescount.com Tricia Webber, County Clerk

41.36 41.37
CLERK’S CERTIFICATE OF EXAMINATION OF INITIATIVE PETITION I, Tricia Webber, County Clerk of Santa Cruz County, California, hereby certify that:

INITIATIVE  AMENDING  THE  CITY  OF  SANTA  CRUZ  GENERAL  PLAN  AND  DOWNTOWN PLAN  TO:  (1)  PROHIBIT CONSTRUCTION  OF  PROPOSED  DOWNTOWN  MIXED‐USE  LIBRARY  PROJECT  AND  PROHIBIT  RELOCATION  OF DOWNTOWN FARMERS’ MARKET; (2) REQUIRE DEVELOPMENT OF AFFORDABLE HOUSING ON DOWNTOWN CITY‐ OWNED  SURFACE  PARKING  LOTS;  AND  (3)  DESIGNATE  USE  OF  SURPLUS  PARKING  DISTRICT  REVENUE  FOR DOWNTOWN  AFFORDABLE  HOUSING  DEVELOPMENT  PROJECTS,  ALTERNATIVE  TRANSPORTATION  PROGRAMS FOR DOWNTOWN WORKERS AND OTHER NON‐PARKING RELATED EXPENDITURES.

This initiative was filed with our office on 5/3/2022. Said petition consists of 387 sections; Each section contains signatures purporting to be the signatures of qualified electors from the City of Santa Cruz; The petition sections at the time of filing contain an affidavit of the person who solicited the signatures and the dates between which the purported qualified electors signed this petition; The affiant stated he/she solicited the signatures upon that section, that all of the signatures were made in his/her presence, and that to the best of his/her knowledge and belief each signature was the genuine signature of the person whose name it purports it to be;
After the proponent filed this petition, I verified the required number of signatures by examining the records of registration in this county, current and in effect at the respective purported dates of such signing, to determine what number of qualified electors signed the petition and from that examination, I have determined the following facts regarding this petition:

1. Number of signatures filed by proponent     5,065

2. Number of signatures verified                                                    5,065 A. Number of signatures found SUFFICIENT                                    4,912 B. Number of signatures found NOT SUFFICIENT                       153 C. Number of DUPLICATE signatures          21
Method of Verification:    DFM Associates Program
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal this the 14th day of June, 2022.

Tricia Webber, County Clerk

___________________________
Gina Lapioli, Program Coordinator

COUNTY CLERK / ELECTIONS
701 Ocean Street, Room 310, Santa Cruz, CA 95060-4076
831-454-2060 Toll-free: 866-282-5900 FAX: 831-454-2445 TDD: 711 E-mail: [email protected] Web Sites: www.sccoclerk.com & www.votescount.com Tricia Webber, County Clerk

41.38 City of Santa Cruz
Impact Report for Empty Home Tax
Citizen Initiative
June 28. 2022
1 Background
The City of Santa Cruz City Council directed the Finance Department to report on the impacts of a citizen initiative ballot measure – Empty Home Tax in accordance with the provisions of California Elections Code Section 9212(a) at their May 24, 2022 Council meeting. The Empty Home Tax will be on the November 8, 2022 ballot for consideration by Santa Cruz voters. The proposed measure would amend the City of Santa Cruz municipal code to add Chapter 3.38 which establishes a special tax on residential parcels that are in use less than 120 days within a calendar year (“vacant parcels”).

The Code further indicates that this report must be presented to the City Council no later than 30 days after the election official certifies the sufficiency of the petition to the City. This report contains Finance Department’s analysis and identifies the resulting impacts we believe the City may experience if the proposed measure is approved by the voters.

Summary of Impacts
A summary of our analysis regarding the impacts the measure may have on the City is provided below.

Impacts under California Elections Code Section 9212(a)

1. Fiscal Impact
Based on factors such as property owner exemptions estimated to range from 34%-60%, the City’s Finance Department estimates annual revenue between $2.5 and $4 million1.

Expenses specifically related to tax collection are capped at 15% of revenues collected, and anything above that amount would need to be paid for by the General Fund. However, costs relating to activities of the 9 member Empty Home Tax Committee are not capped and will be paid for by the special tax funds. The measure requires City staff to provide “clerical assistance, administrative support, and technical assistance” to a new Committee that is charged with “community oversight of the tax established by this Chapter, and to make recommendation to the City to improve zoning and land use designations to better support the creation of affordable housing as defined by this Chapter.” The Committee must meet at least once per year but may meet “more frequently as needed.” “The Committee may convene community meetings to solicit community testimony and other input to build trust between the community, neighborhood groups, and the City, and to address other similar and relevant subjects as determined by the Committee within its jurisdiction.” “The Committee may invite subject matter experts and individuals to

1 The range was calculated based upon data from the County of Santa Cruz’s absentee property lists, homeowner exemptions claimed, and long-term and short-term rental data.

41.39 City of Santa Cruz
Impact Report for Empty Home Tax
Citizen Initiative
June 28. 2022
2 provide informational presentations, including but not limited to” a wide range of groups listed in the measure. City staff “shall be present at the Committee meetings.” Given the required staff presence and the required clerical, administrative, and technical assistance, the amount of staff time and the associated staff costs required to serve the Committee could be very substantial, particularly if the Committee chooses to meet frequently, with cumulative staff time easily climbing to hundreds of hours per year and even over 1,000 hours per year if regular meetings or complex topics trigger substantial staff time commitments.

The Finance Department estimates the annual cost to administer this Measure would be approximately $420,000 with dedicated staffing to support the Commission, tax administration, collection, and enforcements fees. In addition, one-time startup costs are estimated at $607,000 for financial database infrastructure, web development, ordinance implementation, legal counsel and committee establishment.

2. Consistency with General Plan and Housing Element.

The measure has the potential to raise funds that can be used in the creation of additional affordable housing, which would promote various General Plan guiding principles and goals related to neighborhood vitality, a balanced community, and affordable housing.

For example, affordable housing creation and promotion is included in the following policies:

The General Plan Guiding Principles include the following:
“Neighborhood integrity and housing. We will maintain the identity and vitality of our neighborhoods, actively pursuing affordable housing for a diversity of household and promoting compatible livability and high quality design in new buildings, major additions, and redevelopment.” The ballot measure has the potential to raise funds that can be used to create or sustain affordable housing, so consistent with this guiding principle, it would actively pursue affordable housing opportunities. “A balanced community. We will maintain the community’s longstanding commitment to shared social and environmental responsibility, fostering a balance between employment, housing affordable to persons of all income levels, transportation, and natural resources.” The ballot measure has the potential to raise funds that can be used to create or sustain affordable housing, so those funds could assist with fostering the balance called for in this principle. Thus, if funds are generated from the measure, it would be consistent with this principle.

The Housing Element contains the following goals:
“GOAL 1 An adequate diversity in housing types and affordability levels to accommodate present and future housing needs of Santa Cruz residents.” The measure

41.40 City of Santa Cruz
Impact Report for Empty Home Tax
Citizen Initiative
June 28. 2022
3 supports this goal if it results in a net surplus of revenue compared to implementation and staffing costs.
“GOAL 2 Increased and protected supply of housing affordable to extremely low, very low, low, and moderate income households.” The ballot measure has the potential to raise funds that can be used to create or sustain affordable housing, so consistent with this goal, it could increase affordable housing opportunities. “GOAL 3 Accessible housing and appropriate supportive services that provide equal housing opportunities for special needs populations.” The ballot measure has the potential to raise funds that can be used to create or sustain affordable housing, including supportive housing, so consistent with this goal, it could increase housing opportunities for special needs populations. The measure also states that “up to five (5) percent of the revenue deposited into the Fund in any single year may be used to provide sanitation, bathroom, and hygiene services for the unhoused community in the City.” “GOAL 4 Increased opportunities for low and moderate income residents to rent or purchase homes.” The ballot measure has the potential to raise funds that can be used to create or sustain affordable rental or ownership housing, so consistent with this goal, it could increase affordable housing opportunities.

The proposed measure would not directly conflict with Section 65008 of the Government Code or Chapters 4.2 (commencing with Section 65913) and 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code.

3. Land Use and Housing.

The measure has the potential to raise funds that can be used in the creation of additional affordable housing, which would promote various General Plan guiding principles and goals related to neighborhood vitality, a balanced community, and even economic development, since housing scarcity and costs are cited as a barrier to attraction and retention of employees. Should excess funds be generated through the tax, the funds could be used to stimulate the development of new affordable housing projects that would assist in meeting the City’s regional housing needs. However, it is unclear if the measure would result in a net positive benefit or not, as the total tax that will be collected and the total costs associated with the administration of the tax collection program and the costs associated with the staffing of and support for the Committee called for in the measure are unknown.

4. Impacts on funding for infrastructure of all types, including, but not limited to, transportation, schools, parks, and open space.

Unlikely to have a direct impact here as the initiative refers to existing properties.

41.41 City of Santa Cruz
Impact Report for Empty Home Tax
Citizen Initiative
June 28. 2022
4 5. Business Attraction, Retention and Employment.

While the annual revenue from the proposed empty home tax and the full cost of administration and Committee support are unknown at this time, the fund, over time, could accumulate revenue that could aid in the development or preservation of affordable housing units in Santa Cruz. The creation and preservation of affordable housing is critical to the successful attraction and retention of employees for most, if not all, of businesses in Santa Cruz. The ability to hire and retain employees is often predicated on the ability to secure affordable housing in the community, particularly for tourist-based economies like Santa Cruz. At a residential rental vacancy rate consistently between 1%-3% city-wide and considerable wait lists for the majority of multi-family affordable housing units in Santa Cruz, the community has long suffered from inadequate affordable housing to serve existing residents which has directly impacted the long-term success of local businesses and employers located in Santa Cruz. Ongoing revenue from the proposed empty home tax could positively impact the community’s ability to attract and retain business and employment, if the revenues ultimately exceed the costs of administering the program and of staffing the Commission established by the measure.

6. Vacant Land.

The initiative will probably not have appreciable impacts of vacant parcels of land. Since the question on whether a unit is vacant or not does not have an impact on whether to develop undeveloped land.

7. Agricultural Lands, Open Space, Traffic Conditions, Business Districts and Revitalization Areas.

The initiative is unlikely to have an impact in this category as the ordinance is related to existing properties.

8. Any other matters the legislative body requests to be in the report.

No other matters were requested.

Conclusion
Vacant or Empty Home Tax initiatives are not widely utilized among California cities at this time.

However the cities of San Francisco and Oakland have variations of a similar tax for commercial properties, undeveloped parcels and residential properties that have recently been implemented but partly delayed due to COVID-19. As such, analysis for impacts on this type of tax are largely estimates at this point in time. As a side note however, the City of Los Angeles, and more locally, the City of Capitola are having discussions on whether to add this type of tax to their November ballots.

41.42 Tax on Vacant Parcels ("Empty Homes Tax")
Estimate of Annual Revenue
# of
Properties
Total
Estimated
Revenue
SFR - $6,000 Multi - $6,000 Multi - $3,000
(1) Residential properties on absentee list 4,668
(2) Remove properties listed per addresses match query (268) (3) Homeowner's exemption claimed (401)
Potential empty units 3,999
(4) Used as long-term rental (assume 66%) (2,639)
(5) Registered in short-term rental program (291)
Estimate of empty units before other exemptions 1,069
(6) Exempt units 34% (bottom of range) (364)
Taxable empty units 705 $ 4,143,000 3,696,000 360,000 87,000 (7) Breakdown of units by Tier 616 60 29
(6) Exempt units 60% (top of range) (642)
Taxable empty units 427 $ 2,508,000 2,238,000 216,000 54,000 (7) Breakdown of units by Tier 373 36 18
(1) Information from 21/22 County of Santa Cruz absentee listing, property tax bill mailed to location other than situs (2) Addresses reviewed for duplication or abbreviation, address match (3) Units that receive the homeowner's exemption through County of Santa Cruz (4) Percentage based on current date from the City of Santa Cruz long-term rental program (5) Cross reference of addresses registered in the City's short term rental program (6) Estimate of exemption factor provided as a top and bottom range (7) Ratio based off of 21/22 Residential Summary Roll as provided by HdL Empty Home Tax Tiers

41.43 Tax on Vacant Parcels ("Empty Homes Tax")
Estimate of Annual Staff Time to Administer Program (in Hours) Finance
Director, Budget Purch,AP, PR
Revenue/Acco
unting
Audits,
Collections Planning/Code Housing
Economic
Development
Asst
Director
Systems
Analyst
Program
Oversight
Clerk/Public
Information Legal
FULLY BURDENED HOURLY RATES $ 239 $ 267 $ 236 $ 202 $ 150 $ 109 $ 111 $ 120 $ 72 $ 269 $ 77 $ 318 Hrs Amount

STARTUP
Create online system for collecting property data and remitting payment 20 $ 4,780 $ - 20 $ 4,720 20 $ 4,040 5 $ 750 $ - $ - 20 $ 2,400 20 $ 1,440 $ - $ - $ - 105 $ 18,130 Consultant costs to create an online payment and reporting portal $ 5,000 Establish internal revenue tracking 10 $ 2,390 $ - 10 $ 2,360 10 $ 2,020 $ - $ - $ - 10 $ 1,200 10 $ 720 $ - $ - $ - 50 $ 8,690 Establish mechanism for the 15% admin cost cap 25 $ 5,975 $ - 25 $ 5,900 $ - $ - $ - $ - $ - $ - 25 $ 6,725 $ - 25 $ 7,950 100 $ 26,550 Adopt and implementing ordinance 25 $ 5,975 $ - 25 $ 5,900 25 $ 5,050 25 $ 3,750 25 $ 2,725 25 $ 2,775 $ - $ - 25 $ 6,725 25 $ 1,925 25 $ 7,950 225 $ 42,775 Setup the empty home tax oversight committee with bylaws 10 $ 2,390 $ - $ - $ - $ - $ - $ - $ - $ - 30 $ 8,070 30 $ 2,310 30 $ 9,540 100 $ 22,310 Committee members trainings (Robert's Rules etc.) $ - $ - $ - $ - $ - $ - $ - $ - $ - 15 $ 4,035 $ - 15 $ 4,770 30 $ 8,805 Develop annual vacancy declaration process 35 $ 8,365 $ - 35 $ 8,260 35 $ 7,070 35 $ 5,250 35 $ 3,815 35 $ 3,885 $ - $ - 35 $ 9,415 $ - 35 $ 11,130 280 $ 57,190 Develop annual audit process 35 $ 8,365 $ - 35 $ 8,260 35 $ 7,070 35 $ 5,250 $ - $ - $ - $ - 35 $ 9,415 $ - 35 $ 11,130 210 $ 49,490 Develop annual tax imposition process and transfer of levy authority to County 20 $ 4,780 $ - 20 $ 4,720 20 $ 4,040 $ - $ - $ - $ - $ - $ - $ - 20 $ 6,360 80 $ 19,900 Develop process for administration and review of claimed exemptions 15 $ 3,585 $ - 15 $ 3,540 15 $ 3,030 $ - $ - $ - $ - $ - $ - $ - 15 $ 4,770 60 $ 14,925 Develop process for CPI annual increase 5 $ 1,195 5 $ 1,335 $ - $ - $ - $ - $ - $ - $ - $ - $ - 5 $ 1,590 15 $ 4,120 Develop process for vetting use of funds 15 $ 3,585 $ - $ - $ - 15 $ 2,250 15 $ 1,635 15 $ 1,665 $ - $ - 15 $ 4,035 $ - 15 $ 4,770 90 $ 17,940 Develop and adopt appeal process 10 $ 2,390 $ - 10 $ 2,360 10 $ 2,020 $ - $ - $ - $ - $ - $ - $ - 10 $ 3,180 40 $ 9,950 Arrange for on-call administrative law services 10 $ 2,390 10 $ 2,670 $ - $ - $ - $ - $ - $ - $ - 10 $ 2,690 $ - $ - 30 $ 7,750 Set up enforcement mechanisms 15 $ 3,585 $ - $ - $ - 15 $ 2,250 $ - $ - $ - $ - 15 $ 4,035 $ - 15 $ 4,770 60 $ 14,640 Budget for litigation response $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 100,000 0 $ 100,000 Retain independent Auditor 5 $ 1,195 5 $ 1,335 $ - $ - $ - $ - $ - $ - $ - 5 $ 1,345 $ - $ - 15 $ 3,875 Present to oversight commiittee all the above 30 $ 7,170 $ - 30 $ 7,080 30 $ 6,060 30 $ 4,500 $ - $ - $ - $ - 30 $ 8,070 $ - 30 $ 9,540 180 $ 42,420 Website revisions/additions for all the above 30 $ 7,170 $ - 30 $ 7,080 30 $ 6,060 30 $ 4,500 $ - $ - 30 $ 3,600 30 $ 2,160 30 $ 8,070 $ - 30 $ 9,540 240 $ 48,180 Policies and procedures for all the above 30 $ 7,170 $ - 30 $ 7,080 30 $ 6,060 30 $ 4,500 $ - $ - $ - $ - 30 $ 8,070 $ - 30 $ 9,540 180 $ 42,420 Forms and FAQs for all the above 30 $ 7,170 $ - 30 $ 7,080 30 $ 6,060 30 $ 4,500 $ - $ - $ - $ - 30 $ 8,070 $ - 30 $ 9,540 180 $ 42,420 Subtotal 375 $ 89,625.00 20 $ 10,340.00 315 $ 74,340.00 290 $ 58,580.00 250 $ 37,500.00 75 $ 8,175.00 75 $ 8,325.00 60 7,200.00$ 60 4,320.00$ 330 $ 88,770.00 55 $ 4,235.00 365 $ 216,070.00 2270 $ 607,480 ONGOING Committee
Administration of EHTO Committee - agendas, meeting minutes, etc. 12 $ 2,868 $ - 12 $ 2,832 $ - $ - $ - $ - $ - 3 $ 216 $ - 12 $ 924 $ - 39 $ 6,840 Attend EHTO Committee meetings - dedicated staff time 24 $ 5,736 $ - 24 $ 5,664 $ - 24 $ 3,600 24 $ 2,616 24 $ 2,664 $ - $ - 24 $ 6,456 $ - $ - 144 $ 26,736 Prepare ad-hoc reports and analysis for EHTO Committee 40 $ 9,560 $ - 40 $ 9,440 40 $ 8,080 40 $ 6,000 40 $ 4,360 40 $ 4,440 $ - $ - 40 $ 10,760 $ - $ - 280 $ 52,640 Annual Report 6 $ 1,434 $ - 6 $ 1,416 6 $ 1,212 6 $ 900 6 $ 654 6 $ 666 $ - $ - 6 $ 1,614 6 $ 462 $ - 48 $ 8,358 Legal counsel $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 100 $ 31,800 100 $ 31,800 Subtotal 82 $ 19,598.00 0 $ - 82 $ 19,352.00 46 $ 9,292.00 70 $ 10,500.00 70 $ 7,630.00 70 $ 7,770.00 0 $ - 3 $ 216.00 70 $ 18,830.00 18 $ 1,386.00 100 $ 31,800.00 611 $ 126,374 ONGOING Administration Capped at 15%
Outreach to all property owners regarding self-reporting requirements $ - $ - 20 $ 4,720 20 $ 4,040 20 $ 3,000 $ - $ - $ - $ - 20 $ 5,380 20 $ 1,540 $ - 100 $ 18,680 Answer customer questions and respond to Public Records Act requests 20 $ 4,780 $ - 100 $ 23,600 20 $ 4,040 $ - $ - $ - $ - $ - $ - 20 $ 1,540 20 $ 6,360 180 $ 40,320 Review/approve tax exemptions 30 $ 7,170 $ - 30 $ 7,080 30 $ 6,060 $ - $ - $ - $ - $ - $ - $ - 30 $ 9,540 120 $ 29,850 Review/follow up on non-respondents $ - $ - $ - 100 $ 20,200 40 $ 6,000 $ - $ - $ - $ - $ - $ - $ - 140 $ 26,200 Prepare annual billings $ - $ - 20 $ 4,720 20 $ 4,040 $ - $ - $ - $ - $ - $ - $ - $ - 40 $ 8,760 Process payments both electronic and check $ - $ - 200 $ 47,200 $ - $ - $ - $ - $ - $ - $ - $ - $ - 200 $ 47,200 Negotiate payment arrangements/plans $ - $ - $ - 80 $ 16,160 Adjust tax rate annually for CPI changes 5 $ 1,195 5 $ 1,335 $ - $ - $ - $ - $ - $ - $ - 5 $ 1,345 5 $ 385 5 $ 1,590 25 $ 5,850 Annual audits/inspections to verify vacancy status $ - $ - $ - 100 $ 20,200 100 $ 15,000 $ - $ - $ - $ - $ - $ - $ - 200 $ 35,200 Independent Auditors report 5 $ 1,195 $ 2,500 5 $ 1,180 $ - $ - $ - $ - $ - $ - $ - $ - $ - 10 $ 4,875 Issuing citations for non-compliance $ - $ - $ - 30 $ 6,060 100 $ 15,000 $ - $ - $ - $ - $ - $ - $ - 130 $ 21,060 Program tax revenue for affordable housing 15 $ 3,585 $ - 15 $ 3,540 $ - $ - 15 $ 1,635 15 $ 1,665 $ - $ - 15 $ 4,035 15 $ 1,155 $ - 90 $ 15,615 Budgeting and analysis throughout the year 20 $ 4,780 $ - 20 $ 4,720 $ - $ - $ - $ - $ - $ - $ - $ - $ - 40 $ 9,500 Quantify administrative costs and perform accounting entries 20 $ 4,780 $ - 20 $ 4,720 $ - $ - $ - $ - $ - $ - $ - $ - $ - 40 $ 9,500 Maintenance of online reporting/payment system $ - $ 1,000 10 $ 2,360 10 $ 2,020 $ - $ - $ - 10 $ 1,200 10 $ 720 $ - $ - $ - 40 $ 7,300 Subtotal 115 $ 27,485.00 5 $ 4,835.00 440 $ 103,840.00 410 $ 82,820.00 260 $ 39,000.00 15 $ 1,635.00 15 $ 1,665.00 10 1,200.00$ 10 $ 720.00 40 $ 10,760.00 60 $ 4,620.00 55 $ 17,490.00 1435 $ 296,070 Grand total 572 $ 136,708.00 25 $ 15,175.00 837 $ 197,532.00 746 $ 150,692.00 580 $ 87,000.00 160 $ 17,440.00 160 $ 17,760.00 70 8,400.00$ 73 5,256.00$ 440 $ 118,360.00 133 $ 10,241.00 520 $ 265,360.00 4316 $ 1,029,924 Grand total Start-up $ 607,480.00
Grand total Ongoing Committee $ 126,374.00
Grand total Ongoing Administrative $ 296,070.00
Grand total first year $ 1,029,924.00
Grand total ongoing $ 422,444.00
Finance Planning/ED IT City Manager Totals

41.44 1
Rosemary Balsley
From: Shauna Gunderson <[email protected]>
Sent: Thursday, June 16, 2022 1:21 PM
To: Shebreh Kalantari-Johnson; Donna Meyers; Sonja Brunner; Martine Watkins; Sandy Brown; Justin Cummings; Renee Golder; City Council
Cc: Bonnie Bush
Subject: Adopt the Empty Home Tax Now!
Dear Councilmember
Santa Cruz is in an affordable housing crisis! Our essential workers including teachers, healthcare workers, childcare providers and service workers cannot afford to live in our town. These workers are the engine of Santa Cruz's vibrant culture and economy. I am writing you today to urge you to take action today to adopt the community‐driven Empty Home Tax Ordinance.

Over 6000 residents of Santa Cruz signed the petition to support putting the Empty Home Tax on the ballot, but we don't have to wait for November. Recent numbers from the California Department of Finance report a 9% vacancy rate in Santa Cruz. Everyone in Santa Cruz has that house or houses in their neighborhood where no one every seems to be home. Property owners across the city have raised their hand and supported the Empty Home Tax because it is fair, balanced and will help ensure their friends, family and kids can stay living here too.

We want our neighbors to be at home. We want community. We want Santa Cruz to be accessible. We want economic diversity which drives racial and cultural diversity. These are the things that make Santa Cruz special.

Please help keep Santa Cruz vibrant and thriving by adopting the Empty Home Tax today! Yours sincerely,
Shauna Gunderson
___________________________
This email was sent by Shauna Gunderson via Do Gooder, a website that allows people to contact you regarding issues they consider important. In accordance with web protocol RFC 3834 we have set the FROM field of this email to our generic no‐reply address at [email protected], however Shauna provided an email address ([email protected]) which we included in the REPLY‐TO field.

Please reply to Shauna Gunderson at [email protected].

To learn more about Do Gooder visit www.dogooder.co To learn more about web protocol RFC 3834 visit:
https://tools.ietf.org/html/rfc3834

41.45 2
Rosemary Balsley
From: Jesse Brennan <[email protected]>
Sent: Thursday, June 16, 2022 1:39 PM
To: Shebreh Kalantari-Johnson; Donna Meyers; Sonja Brunner; Martine Watkins; Sandy Brown; Justin Cummings; Renee Golder; City Council
Cc: Bonnie Bush
Subject: Adopt the Empty Home Tax Now!
Dear Councilmember
Santa Cruz is in an affordable housing crisis! Our essential workers including teachers, healthcare workers, childcare providers and service workers cannot afford to live in our town. These workers are the engine of Santa Cruz's vibrant culture and economy. I am writing you today to urge you to take action today to adopt the community‐driven Empty Home Tax Ordinance.

Over 6000 residents of Santa Cruz signed the petition to support putting the Empty Home Tax on the ballot, but we don't have to wait for November. Recent numbers from the California Department of Finance report a 9% vacancy rate in Santa Cruz. Everyone in Santa Cruz has that house or houses in their neighborhood where no one every seems to be home. Property owners across the city have raised their hand and supported the Empty Home Tax because it is fair, balanced and will help ensure their friends, family and kids can stay living here too.

We want our neighbors to be at home. We want community. We want Santa Cruz to be accessible. We want economic diversity which drives racial and cultural diversity. These are the things that make Santa Cruz special.

Please help keep Santa Cruz vibrant and thriving by adopting the Empty Home Tax today! Yours sincerely,
Jesse Brennan
___________________________
This email was sent by Jesse Brennan via Do Gooder, a website that allows people to contact you regarding issues they consider important. In accordance with web protocol RFC 3834 we have set the FROM field of this email to our generic no‐reply address at [email protected], however Jesse provided an email address ([email protected]) which we included in the REPLY‐TO field.

Please reply to Jesse Brennan at [email protected].

To learn more about Do Gooder visit www.dogooder.co To learn more about web protocol RFC 3834 visit:
https://tools.ietf.org/html/rfc3834

41.46 3
Rosemary Balsley
From: Shay Stoklos <[email protected]>
Sent: Thursday, June 16, 2022 1:53 PM
To: Shebreh Kalantari-Johnson; Donna Meyers; Sonja Brunner; Martine Watkins; Sandy Brown; Justin Cummings; Renee Golder; City Council
Cc: Bonnie Bush
Subject: Adopt the Empty Home Tax Now!
Dear Councilmember
Santa Cruz is in an affordable housing crisis! Our essential workers including teachers, healthcare workers, childcare providers and service workers cannot afford to live in our town. These workers are the engine of Santa Cruz's vibrant culture and economy. I am writing you today to urge you to take action today to adopt the community‐driven Empty Home Tax Ordinance.

Over 6000 residents of Santa Cruz signed the petition to support putting the Empty Home Tax on the ballot, but we don't have to wait for November. Recent numbers from the California Department of Finance report a 9% vacancy rate in Santa Cruz. Everyone in Santa Cruz has that house or houses in their neighborhood where no one every seems to be home. Property owners across the city have raised their hand and supported the Empty Home Tax because it is fair, balanced and will help ensure their friends, family and kids can stay living here too.

We want our neighbors to be at home. We want community. We want Santa Cruz to be accessible. We want economic diversity which drives racial and cultural diversity. These are the things that make Santa Cruz special.

Please help keep Santa Cruz vibrant and thriving by adopting the Empty Home Tax today! ___________________________
This email was sent by Shay Stoklos via Do Gooder, a website that allows people to contact you regarding issues they consider important. In accordance with web protocol RFC 3834 we have set the FROM field of this email to our generic no‐reply address at [email protected], however Shay provided an email address ([email protected]) which we included in the REPLY‐TO field.

Please reply to Shay Stoklos at [email protected].

To learn more about Do Gooder visit www.dogooder.co To learn more about web protocol RFC 3834 visit:
https://tools.ietf.org/html/rfc3834

41.47 4
Rosemary Balsley
From: Colin Murphy <[email protected]>
Sent: Thursday, June 16, 2022 4:57 PM
To: Shebreh Kalantari-Johnson; Donna Meyers; Sonja Brunner; Martine Watkins; Sandy Brown; Justin Cummings; Renee Golder; City Council
Cc: Bonnie Bush
Subject: Adopt the Empty Home Tax Now!
Dear Councilmember,
I know many people who have been forced to leave Santa Cruz due to housing prices. The sky rocketing prices of housing in the area require people to make 100 times their current salary, or to have owned their property for decades. Young professionals are being priced out of owning their own home.

Santa Cruz is in an affordable housing crisis! Our essential workers including teachers, healthcare workers, childcare providers and service workers cannot afford to live in our town. These workers are the engine of Santa Cruz's vibrant culture and economy. I am writing you today to urge you to take action today to adopt the community‐driven Empty Home Tax Ordinance.

Over 6000 residents of Santa Cruz signed the petition to support putting the Empty Home Tax on the ballot, but we don't have to wait for November. Recent numbers from the California Department of Finance report a 9% vacancy rate in Santa Cruz. Everyone in Santa Cruz has that house or houses in their neighborhood where no one every seems to be home. Property owners across the city have raised their hand and supported the Empty Home Tax because it is fair, balanced and will help ensure their friends, family and kids can stay living here too.

We want our neighbors to be at home. We want community. We want Santa Cruz to be accessible. We want economic diversity which drives racial and cultural diversity. These are the things that make Santa Cruz special.

Please help keep Santa Cruz vibrant and thriving by adopting the Empty Home Tax today! Yours sincerely,
Colin Murphy
___________________________
This email was sent by Colin Murphy via Do Gooder, a website that allows people to contact you regarding issues they consider important. In accordance with web protocol RFC 3834 we have set the FROM field of this email to our generic no‐reply address at [email protected], however Colin provided an email address ([email protected]) which we included in the REPLY‐TO field.