Santa Cruz City Council
February 14, 2023

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

CITY COUNCIL AGENDA
Regular Meeting – February 14, 2023
12:30 P.M. CLOSED SESSION, ZOOM/COURTYARD CONFERENCE ROOM 1:30 P.M. CONSENT, CONSENT PUBLIC HEARING, AND GENERAL BUSINESS,

ZOOM/COUNCIL CHAMBERS
6:30 P.M. ORAL COMMUNICATIONS AND GENERAL BUSINESS, ZOOM/COUNCIL

CHAMBERS
IMPORTANT NOTICE:

Pursuant to California Government Code 54953(e)(1)(A) and (C), and the City of Santa Cruz’s resolution authorizing continued virtual participation in public meetings given the COVID-19 pandemic, meetings of the Santa Cruz City Council are being conducted with a hybrid format, providing both in-person and virtual participation in order to promote social distancing and protect the health and safety of attendees, staff, and Councilmembers.

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

Correspondence to be included in the agenda packet must be received by 5:00 pm on Monday, February 13th
February 14, 2023 City Council 2
PLEASE NOTE:

Requests for extra speaking time on items other than Oral Communications must be made by 5:00 p.m. on Sunday, February 12th by emailing the Mayor and the City Clerk. Approval will be confirmed via email.
[email protected] [email protected]
The City of Santa Cruz does not discriminate against persons with disabilities. Out of consideration for people with chemical sensitivities we ask that you attend fragrance free. Upon request, the agenda can be provided in a format to accommodate special needs. Additionally, if you wish to attend this public meeting and will require assistance such as an interpreter for American Sign Language, Spanish, or other special equipment, please call the City Clerk’s Department at 420-5030 at least five days in advance so that we can arrange for such special assistance, or email [email protected]. The CalRelay system number: 1-800-735-2922.

Si desea asistir a esta reunión pública y necesita ayuda - como un intérprete de lenguaje de señas americano, español u otro equipo especial - favor de llamar al Departamento de la Secretaría de la Ciudad al 420-5030 al menos cinco días antes para que podamos coordinar dicha asistencia especial o envié un correo electrónico a [email protected]. El número del sistema Cal-Relay es: 1-800-735-2922.

Agenda and Agenda Packet Materials: The City Council agenda and the complete agenda packet containing public records, which are not exempt from disclosure pursuant to the California Public Records Act, are available for review on the City’s website:
www.cityofsantacruz.com/government/city-council-meetings and at the Office of the City Clerk located at 809 Center Street, Room 9, Santa Cruz, California, during normal business hours.

Agenda Materials Submitted after Publication of the Agenda Packet: Pursuant to Government Code §54957.5, public records related to an open session agenda item submitted after distribution of the agenda packet are available at the same time they are distributed or made available to the legislative body on the City’s website at:
www.cityofsantacruz.com/government/city-council-meetings and are also available for public inspection at the Office of the City Clerk, 809 Center Street Room 9, Santa Cruz, California, during normal business hours, and at the Council meeting.

Need more information? Contact the City Clerk’s office at 831-420-5030.

Closed Session
12:30 PM
Referral to Closed Session

1. 45 Municipal Wharf, APN: 007-34-105
Motion to refer to Closed Session for discussion regarding price, terms of payment, or both.

February 14, 2023 City Council 3
Closed Session

2. Conference with Labor Negotiators (Government Code §54957.6) Police Officers Association
Police Management Association
SEIU Temporary Employees
City Negotiator – Sara DeLeon

3. Real Property Negotiations (Government Code §54956.8) Property: 45 Municipal Wharf
APN: 007-34-105
Owner: City of Santa Cruz
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City and Mark Gilbert
Under Negotiation: Price, terms of payment, or both

4. Conference with Legal Counsel - Existing Litigation (Government Code §54956.9(d)(1))
County of Santa Cruz v. City of Santa Cruz
(Santa Cruz County Superior Court Case No. 22CV01094)
February 14, 2023 City Council 4
City Council
1:30 PM
Call to Order
Roll Call
Presiding Officer's Announcements
Statements of Disqualification
Additions and Deletions
City Attorney Report on Closed Session
Council Meeting Calendar

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

Consent Agenda

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

7. Opioid Settlement Fund Agreement - Stakeholder Group (CA/CM) Motion to authorize the City Manager to enter into an agreement with the County of Santa Cruz to establish a Stakeholder Group with City participation in defining priorities for the use of opioid settlement funds in the County.

February 14, 2023 City Council 5
Consent Agenda (continued)

8. Commission for the Prevention of Violence Against Women Appointment (CC)
Motion to defer Vice Mayor Golder’s nomination to a future meeting.

9. Minutes of the January 24, 2023 City Council Meeting (CC) Motion to approve as submitted.

10. Changes to the Councilmembers’ Handbook (CN)
Resolution amending the Councilmembers’ Handbook on page 7 to update the Order of Business section, page 9, paragraph 3, regarding decorum in Council meetings, and on page 23 at “Remarks of Councilmembers Entered in Minutes.”

11. Contract for Tannery Dance and Performance Building Architectural Services (ED)
Motion to award the contract for the Tannery Dance and Performance Building architectural services in an amount of $469,560 to 19six Architects and authorize the City Manager to execute an agreement with 19six Architects in a form to be approved by the City Attorney.

12. Resolution Authorizing Application for the California Prohousing Designation Program (ED)
Resolution authorizing the City of Santa Cruz to apply for the Prohousing Designation Program from the California Housing and Community Development Department and authorizing the City Manager or the Director of Economic Development and Housing to execute and deliver the application and any related documents if the application is approved.

February 14, 2023 City Council 6
Consent Agenda (continued)

13. 119 Coral St – Housing Matters Loan Consolidation and Extension (ED) 1) Authorize the City Manager to execute any and all loan documents necessary, in a form approved by the City Attorney, to consolidate and extend the terms of existing Red Cross and HOME funded loans in the amount of $571,533 to Housing Matters for the property located at 119 Coral St for 55 years with 1.5% residual receipts interest; and 2) Allow Housing Matters to repay an existing General Fund loan of approximately $12,805 in principal with a reduced interest rate of 3%, contingent upon payment received to the City prior to the execution of the loan documents.

14. Resolution Approving Various Employee Groups Memoranda of Understanding (HR)
Resolution approving the following employee organizations Memoranda of Understanding: Supervisory Employees Operating Engineers, Local 3; Mid-Management Employees Operating Engineers, Local 3; and Firefighters I.A.F.F. Local 1716.

15. State of California 2022 Land Use and Housing Legislation Update (PL) Motion to accept the State of California 2022 Land Use and Housing Legislation Update agenda report.

16. 2023 Pavement Rehabilitation Project (c400809) – Authorization to Advertise and Award (PW)
Motion to approve the plans and specifications for the 2023 Pavement Rehabilitation Project (c400809), authorize staff to advertise for bids, and award contract. The City Manager is hereby authorized and directed to execute the contact in a form approved by the City Attorney. The Director of Public Works is authorized to execute change orders within the approved project budget.

February 14, 2023 City Council 7
Consent Agenda (continued)

17. Award Contract for Boiler Control System Replacement Project (m409659) and Approval of Exemption from Local and Apprentice Employment (SCMC Ch. 3.10.080(2) for Boiler Control System Replacement Project (PW)
Motion to:
1) Award a contract for the purchase of Boiler Control System Replacement Project from R.F. Macdonald Co. (Hayward, CA) in the amount of $159,793.70; and
2) Exempt R.F. MacDonald Co. from the City’s local hiring and local apprentice employment requirements, pursuant to SCMC Chapter 3.10.

18. Mentel Aerial Sewer Improvement Project (c402102) – Notice of Completion (PW)
Motion to accept the work of Precision Grade, Inc (Salinas, CA) and authorize the filing of the Notice of Completion for the Mentel Aerial Sewer Improvement Project (c402102).

19. PG&E Fleet Ready Program Easement, 1125G River St, Santa Cruz (APN: 008-021-28-000) (PW)
Resolution authorizing the City Manager to grant an easement to Pacific Gas and Electric (PG&E) for the installation and maintenance of To-the-Meter (TtM) electrical infrastructure at the Corporation Yard, 1125G River St., Santa Cruz, CA 95060.

20. Award Contract for Traffic Signal Maintenance and Repair (PW) Motion to award a contract to Cal-West Lighting & Signal Maintenance, Inc. (San Jose, CA) for traffic signal maintenance and repair for a notto-exceed amount of $175,000, and reject all other proposals. The City Manager is hereby authorized and directed to execute an agreement in a form approved by the City Attorney. The Public Works Director is authorized to execute change orders within the approved project budget.

February 14, 2023 City Council 8
Consent Agenda (continued)

21. Resolution to Apply for U.S. Department of the Interior Bureau of Reclamation Funds (WT)
Resolution authorizing the submittal, acceptance, and appropriation of a U.S. Department of the Interior Bureau of Reclamation grant under the WaterSMART Water Recycling and Desalination Planning funding opportunity for FY 2023.

22. Award of Professional Services Agreement to Black & Veatch for the Water Quality and Corrosion Study (WT)
Motion authorizing the City Manager to execute an agreement in a form to be approved by the City Attorney with Black & Veatch (Rancho Cordova, CA) for Engineering Services for a Water Quality and Corrosion Study and to authorize the Water Director to execute future contract amendments within the approved budget.

23. Groundwater Modeling – Award of Professional Services Agreement to Errol L. Montgomery & Associates, Inc. (WT)
Motion authorizing the City Manager to execute a contract agreement in a form to be approved by the City Attorney with Errol L. Montgomery & Associates, Inc. (Oakland, CA) for Engineering Services for Groundwater Modeling and to authorize the Water Director to execute future contract amendments within the approved budget.

End Consent Agenda
Consent Public Hearing

24. 2nd Reading and Final Adoption of Ordinance No. 2023-02 Amending Section 2.40.011 of the Santa Cruz Municipal Code Related to the Process of Appointments to City Commissions (CN)
Adopt Ordinance No. 2023-02 amending Section 2.40.011 of the Santa Cruz Municipal Code and transitioning the appointments to specific advisory bodies from at-large to directly nominated by each Council District and the Mayor.

February 14, 2023 City Council 9
Public Hearing

25. Resolution of Intent to Annex Parcels at 538 Center Street into Parking District No. 1 (PW)
Resolution of Intent to annex remaining parcels at 538 Center Street (Assessors Parcel Numbers 005-148-17, 005-148-21 and 005-148-24) into Parking District No. 1.

General Business

26. Sister Cities Committee Appointment (CC)
Motion to appoint one member to the Sister Cities Committee, with a term ending January 31, 2025.

27. Response to 2021 Independent Police Auditor Report (PD) Receive a follow-up summary from the Santa Cruz Police Department (SCPD) in response to the 2021 Independent Police Auditor Report.

28. Ordinance Amending Chapter 5.10 of the Municipal Code Related to the Annual Living Wage Adjustment Index (FN/CA)
Introduce for publication an ordinance amending Chapter 5.10 of the Santa Cruz Municipal Code related to annual adjustments of the living wage based on Consumer Price Indices published by the Bureau of Labor Statistics.

29. Sidewalk Vending Ordinance Administrative Amendments and Program Update (PL)
Motion to:
1) Introduce for publication an ordinance amending Santa Cruz Municipal Code (SCMC) Chapter 5.82 (“Sidewalk Vending”); and 2) Accept the Sidewalk Vending Program update.

Recess - The City Council will recess to the 6:30 p.m. session.

February 14, 2023 City Council 10
City Council
6:30 PM
Call to Order
Roll Call
Oral Communications – Members of the public may address Council on matters not on the agenda, but within the jurisdiction of the Council.

General Business
Please note: The Public Comment period for the below item will be for items

30.1 and 30.2.

30. Mid-Year Update

30.1. FY 2023 Budget Adjustments and Information on City’s Financial Status (FN)
Motion to:
1) Receive a presentation on the City of Santa Cruz’s financial status; 2) Adopt a resolution amending FY 2023 budget appropriation of expenditures to all funds as listed in Exhibit A, in the amount of $15,048,374 including a reduction of $2,924,656 to the General Fund, and a total appropriation of estimated revenues as listed in Exhibit A in the amount of $5,788,384 to all funds, including a net addition of $969,552 to the General Fund; and
3) Authorize the City Manager to allocate budgetary changes within the applicable funds and departments.

February 14, 2023 City Council 11
General Business (continued)

30. Mid-Year Update (continued)

30.2. Resolution Amending the City of Santa Cruz Personnel Complement and Classification and Compensation Plans for the Finance, Parks and Recreation, City Manager, Human Resources, Planning and Community Development, Public Works, Water, and Information Technology (IT) Departments – Budget Adjustment (HR)
Motion to:
1) Adopt a resolution amending the Classification and Compensation Plans and the Mid-Year 2023 Budget Personnel Complement by approving classification and position changes in eight city departments; and
2) Adopt a resolution amending the FY 2023 budget to appropriate funds for the addition of a Facilities Field Supervisor and a SCADA Analyst, and deleting a Management Analyst within the Water Department.

Adjournment
February 14, 2023 City Council 12

INFORMATION ITEMS PREVIOUSLY DISTRIBUTED TO CITY COUNCIL ADDENDUM TO CITY COUNCIL AGENDA – FEBRUARY 14, 2023

31. Economic Development Department: Housing Successor Annual Report FY 2022 - 1/17/23 (EDFYI 001)

32. Finance Department: Portfolio Management Report – Pooled Cash and Investments as of December 31, 2022 - 1/27/23 (FNFYI 363)

MAYOR'S PROCLAMATIONS
ADDENDUM TO CITY COUNCIL AGENDA – FEBRUARY 14, 2023

33. Proclaiming January 26, 2023 as “Patricia Brissenden Day” and encouraging all citizens to join in wishing her a Happy 75th Birthday and expressing heartfelt appreciation for her numerous contributions and achievements.

34. Proclaiming Wednesday, February 1, 2023 as “Jerome Arthur Fardette Day” and encouraging all citizens to join in celebrating his life and recognizing him for his lifetime of composing music and influencing many generations.

35. Proclaiming Saturday, February 4, 2023 as “Santa Cruz Baroque Festival 50th Season Day” and encouraging all citizens to join in congratulating it on its 50th season of presenting outstanding concerts of early and unusual music to the Santa Cruz community and recognizing its founder and artistic director, UCSC Professor Emerita Linda Burman-Hall, who has led this distinguished Santa Cruz institution for the past fifty years.

February 14, 2023 City Council 13
Public Hearing
If, in the future, you wish to challenge in court any of the matters on this agenda for which a public hearing is to be conducted, you may be limited to raising only those issues which you (or someone else) raised orally at the public hearing or in written correspondence received by the City at or before the hearing.

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

City Council Agenda Legislative History Addendum
No information was submitted.

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

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

Meeting Type
Holiday
Jewish Holiday
Regular Meeting
Special Meeting
Study Session (will be added as scheduled)
Budget Hearing
DATE Location Meeting Type
February 20
Courtyard Conf. Room Closed Session ‐ Closed to the Public Council Chambers Council Regular Meeting ‐ Open to the Public Courtyard Conf. Room Closed Session ‐ Closed to the Public Council Chambers Council Regular Meeting ‐ Open to the Public Courtyard Conf. Room Closed Session ‐ Closed to the Public Council Chambers Council Regular Meeting ‐ Open to the Public April 5/6
Courtyard Conf. Room Closed Session ‐ Closed to the Public Council Chambers Council Regular Meeting ‐ Open to the Public Courtyard Conf. Room Closed Session ‐ Closed to the Public Council Chambers Council Regular Meeting ‐ Open to the Public Courtyard Conf. Room Closed Session ‐ Closed to the Public Council Chambers Council Regular Meeting ‐ Open to the Public Courtyard Conf. Room Closed Session ‐ Closed to the Public Council Chambers Council Regular Meeting ‐ Open to the Public May 23 and 24 Council Chambers Budget Hearings
May 29
Courtyard Conf. Room Closed Session ‐ Closed to the Public Council Chambers Council Regular Meeting ‐ Open to the Public June 19
Courtyard Conf. Room Closed Session ‐ Closed to the Public Council Chambers Council Regular Meeting ‐ Open to the Public July 4
Courtyard Conf. Room Closed Session ‐ Closed to the Public Council Chambers Council Regular Meeting ‐ Open to the Public Courtyard Conf. Room Closed Session ‐ Closed to the Public Council Chambers Council Regular Meeting ‐ Open to the Public September 4
Courtyard Conf. Room Closed Session ‐ Closed to the Public Council Chambers Council Regular Meeting ‐ Open to the Public September 15/16
September 24/25
Courtyard Conf. Room Closed Session ‐ Closed to the Public Council Chambers Council Regular Meeting ‐ Open to the Public Courtyard Conf. Room Closed Session ‐ Closed to the Public Council Chambers Council Regular Meeting ‐ Open to the Public Courtyard Conf. Room Closed Session ‐ Closed to the Public Council Chambers Council Regular Meeting ‐ Open to the Public Courtyard Conf. Room Closed Session ‐ Closed to the Public Council Chambers Council Regular Meeting ‐ Open to the Public November 10
Courtyard Conf. Room Closed Session ‐ Closed to the Public Yom Kippur (City observed ‐  sundown to sundown)
City Council Meeting Calendar for 2023
November 28
June 27
September 12
September 26
City Hall Closure ‐ Presidents' Day
February 28
May 23
City Hall Closure ‐ Juneteenth
Please note: Meeting times are not final and are likely to change Passover (City observed ‐ sundown to sundown)
August 8
March 14
March 28
May 9
April 11
April 25
June 13
City Hall Closure ‐ Labor Day
August 22
July 11 and 25 Meetings Cancelled ‐ CITY COUNCIL DARK
City Hall Closure ‐ Independence Day
City Hall Closure ‐ Memorial Day
Rosh Hashanah (City observed ‐  sundown to sundown)
November 14
October 10
October 24
City Hall Closure ‐ Veteran's Day (observed)

5.1 Meeting Type
Holiday
Jewish Holiday
Regular Meeting
Special Meeting
Study Session (will be added as scheduled)
Budget Hearing
DATE Location Meeting Type
City Council Meeting Calendar for 2023
Please note: Meeting times are not final and are likely to change Council Chambers Council Regular Meeting ‐ Open to the Public November 23
November 24
December 7/8
Courtyard Conf. Room Closed Session ‐ Closed to the Public Council Chambers Council Regular Meeting ‐ Open to the Public December 25
November 28
December 12
City Hall Closure ‐ Thanksgiving Day
City Hall Closure ‐ Day After Thanksgiving Day
December 26 Meeting Cancelled ‐ CITY COUNCIL DARK
City Hall Closure ‐ Christmas Day
Hanukkah (City observed ‐  sundown to sundown)

5.2 City Council

AGENDA REPORT
DATE: 02/01/2023
AGENDA OF: 02/14/2023
DEPARTMENT: City Attorney
SUBJECT: Resolution Authorizing the City to Continue Teleconferenced Public Meetings Pursuant to Assembly Bill 361 (CA)
RECOMMENDATION: Resolution authorizing legislative bodies of the City of Santa Cruz to continue the use of teleconferenced meetings pursuant to Assembly Bill 361.

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

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

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

6.1 strongly recommend that all individuals continue to wear masks in indoor public settings.3 The
County of Santa Cruz Health Services Agency also recently issued a press release noting an uptick in local COVID-19 cases and urging the public to “continue basic prevention methods like vaccination, frequent hand washing, and wearing a mask.”4 The highly transmissible omicron variant continues to contribute to positive cases and hospitalizations locally and throughout the State, and it is unknown at this time whether other variants may result in a new surge in COVID-19 cases. As such, holding meetings in person would present imminent risks to the health or safety of attendees due to the continued spread of COVID-19.

To continue teleconferenced meetings under AB 361, the City Council will need to declare every thirty (30) days that it has reconsidered the circumstances of the State of Emergency and either (1) the State of Emergency continues to directly impact the ability of the members to meet safely in person; or (2) State or local health officials continue to impose or recommend measures to promote social distancing.5
This declaration is needed for any use of teleconferenced meetings pursuant to AB 361, including for two City meeting models: (1) A City Council hybrid model that uses the City Council Chambers as an in person venue along with teleconference attendance; and (2) Continued use of teleconferencing for City Council and Brown Act City boards, commissions and committees.

At its regular meeting of October 12, 2021, the City Council adopted Resolution No. NS-29,877, authorizing legislative bodies of the City of Santa Cruz to continue using teleconferenced meetings pursuant to AB 361. At its regular meetings of November 9, 2021, November 23, December 14, 2021, January 11, 2022, February 8, 2022, March 8, 2022, March 22, 2022, April 12, 2022, May 10, 2022, May 24, 2022, June 14, 2022, June 28, 2022, August 9, 2022, August 23, 2022, September 13, 2022, October 11, 2022, October 25, 2022, November 15, 2022, December 13, 2022, January 10, 2023, and January 24, 2023, the City Council adopted Resolution Nos. NS-29,886, NS-29,894, NS-29,900, NS-29,915, NS-29,923, NS-29,933, NS29,942, NS-29,954, NS-29,975, NS-29,987, NS 29,994, NS-30,005, NS-30,017, NS-30,028, NS-30,035, NS-30,049, NS-30,053, NS-30,059, NS-30,076, NS-30-084, and NS-30,094, further authorizing legislative bodies of the City of Santa Cruz to continue using teleconferenced meetings pursuant to AB 361.

This Resolution would re-authorize the legislative bodies of the City of Santa Cruz to continue to use teleconferenced meetings for an additional thirty (30) from the date of its adoption. Given 3 See Press Release, Twelve Bay Area Health Officers to Life Most Indoor Mask Mandates on February 16 (Feb. 9, 2022), https://www.santacruzhealth.org/Portals/7/pdfs/Coronavirus/02.09.22%20ABAHO%20Masking_FINAL.pdf.

See also, BAY AREA HEALTH OFFICERS URGE PUBLIC TO TAKE PRECAUTIONS AS COVID LEVELS RISE (May 13, 2022),
https://www.santacruzhealth.org/Portals/7/pdfs/Coronavirus/ABAHOMaskRecommendationENG.05132022.pdf. 4 Press Release, Santa Cruz County Public Health Urges Residents to Take Preventative Measures Against Circulating Viruses this Holiday Season (Nov. 23, 2022), https://www.santacruzhealth.org/Portals/7/pdfs/Coronavirus/Press%20ReleaseRSV,%20Flu,%20COVID%20Prevention%20112322.pdf. See also Press Release, With Respiratory Viruses Circulating, 12 Bay Area Health Officials Recommend Actions To Stay Healthy for the Holidays (Dec. 15, 2022), https://www.santacruzhealth.org/Portals/7/pdfs/Coronavirus/ABAHO_Healthy_For_The_Holidays_12-15-22.pdf. 5 Cal. Gov’t Code § 54953(e)(3).

6.2 Governor Newsom’s intent to declare an end to the COVID-19 State of Emergency on February 28, 2023,6 this will likely be the last resolution presented to the Council re-authorizing legislative bodies of the City of Santa Cruz to continue to use teleconferenced meetings pursuant to AB 361.

FISCAL IMPACT: None.

Prepared By:

Stephanie Duck
Deputy City Attorney
Submitted By:

Tony Condotti
City Attorney
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX
6 See Governor Newsom to End the COVID-19 State of Emergency, (Oct. 17, 2022), https://www.gov.ca.gov/2022/10/17/governor-newsom-to-end-the-covid-19-state-of-emergency/.

6.3 RESOLUTION NO. NS-XX,XXX

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

THE CONTINUED USE OF TELECONFERENCED MEETINGS PURSUANT TO ASSEMBLY BILL 361
WHEREAS, on March 4, 2020, Governor Newsom declared a State of Emergency, as defined under the California Emergency Services Act, due to the COVID-19 pandemic; and WHEREAS, on March 17, 2020, due to the threat of COVID-19, Governor Newsom issued Executive Order N-29-20, which suspended certain requirements of Government Code section 54950 et seq., the Ralph M. Brown Act (“Brown Act”), in order to allow local legislative bodies to conduct meetings telephonically or electronically without a physical meeting place; and
WHEREAS, on June 11, 2021, Governor Newsom issued Executive Order N-08-21, which stated that the provision suspending requirements of the Brown Act in Executive Order N-29-20 would remain in effect through September 30, 2021, at which point the suspensions would expire; and
WHEREAS, on September 16, 2021, Governor Newsom signed Assembly Bill 361 into law, an urgency measure effective upon adoption, amending the Brown Act to allow legislative bodies to continue to meet remotely during a proclaimed State of Emergency, and either state or local officials have imposed or recommended measures to promote social distancing, or the legislative body determines that meeting in person would present imminent risks to the health or safety of attendees;
WHEREAS, on October 12, 2021, the City Council adopted Resolution No. NS-29, 877, making its initial finding that the requisite conditions exist for the legislative bodies of the City of Santa Cruz to conduct remote teleconference meetings; and WHEREAS, on November 9, 2021, November 23, 2021, December 14, 2021, January 11, 2022, February 8, 2022, March 8, 2022, March 22, 2022, April 12, 2022, May 10, 2022, May 24, 2022, June 14, 2022, June 28, 2022, August 9, 2022, August 23, 2022, September 13, 2022, October 11, 2022, October 25, 2022, November 15, 2022, December 13, 2022, January 10, 2023, and January 24, 2023 the City Council adopted Resolution Nos. NS-29,886, NS-29,894, NS-29,900, NS-29,915, NS-29,923, NS-29,933, NS-29,942, NS-29,954, NS29,975, NS-29,987, NS-29,994, NS-30,005, NS-30,017, NS-30,035, NS-30,049, NS-30,053, NS-30,059, NS-30,076, NS-30-084, and NS-30,094, each making a subsequent finding that the requisite conditions exist for the legislative bodies of the City of Santa Cruz to conduct remote teleconference meetings; and
WHEREAS, as a condition of authorizing the continued use of teleconferenced meetings, the City Council must, every 30 days, reconsider the circumstances of the State of Emergency that exists in the City and the City Council has done so; and

6.4 WHEREAS, the State of Emergency proclaimed by the Governor on March 4, 2020, remains in effect; and
WHEREAS, the California Department of Public Health and the Santa Cruz County Health Officer require that all individuals wear face coverings indoors in specified high-risk settings, and continue to strongly recommend that all individuals wear face coverings in indoor public settings; and
WHEREAS, the highly contagious omicron variant continues to contribute to the increase in positive cases and hospitalizations locally and throughout the State of California, demonstrating the unpredictable nature of the pandemic, and that transmission rates have the potential to rise quickly; and
WHEREAS, other variants of COVID-19 exist, including an Omicron subvariant, BA.5, and it is unknown at this time whether this or other variants may result in a new surge in COVID-19 cases; and
WHEREAS, due to the continued impact of COVID-19, the City continues to be concerned about the health and safety of attendees at public meetings should they be held in person and in a shared indoor public meeting space, as such, the City Council desires to take the actions necessary to comply with AB 361 and to continue to hold its meetings in a hybrid format, providing both in-person and virtual participation; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz (City Council) as follows:

A. The City Council hereby acknowledges that the Governor’s State of Emergency proclamation issued on March 4, 2020 remains in effect; and B. The City Council finds that due to the continued threat of COVID-19, holding in person meetings for the City Council, City Commissions, and City Committees continues to present imminent risks to the health or safety of attendees; and C. The legislative bodies of the City of Santa Cruz are hereby authorized and directed to take all actions necessary to carry out the intent and purpose of this Resolution, including continuing to conduct open and public meetings in accordance with Government Code section 54953(e) and other applicable provisions of the Brown Act; and D. This Resolution shall take effect immediately upon its adoption and shall be effective until the earlier of (i) thirty days from the adoption of this Resolution, or (ii) such time the City Council adopts a subsequent resolution in accordance with Government Code section 54953(e)(3) to extend the time during which the legislative bodies of the City of Santa Cruz may continue teleconferencing without compliance with the Brown Act’s prior rules regarding teleconferencing.

6.5 PASSED AND ADOPTED this 14th day of February, 2023 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator

6.6 City Council

AGENDA REPORT
DATE: 02/01/2023
AGENDA OF: 02/14/2023
DEPARTMENT: City Attorney/City Manager
SUBJECT: Opioid Settlement Fund Agreement - Stakeholder Group (CA/CM) RECOMMENDATION: Motion to authorize the City Manager to enter into an agreement with the County of Santa Cruz to establish a Stakeholder Group with City participation in defining priorities for the use of opioid settlement funds in the County.

BACKGROUND: States and cities across the United States brought litigation against the three largest pharmaceutical distributors of opioid painkillers, Amerisource Bergen, Cardinal Health, and McKesson (the “Distributors”), and the opioid painkiller manufacturer, Janssen (owned by Johnson & Johnson) (“Janssen”), which has resulted in two proposed settlements totaling approximately $26 billion dollars. The City of Santa Cruz has opted into the settlements, thereby releasing its claims against the Distributors and Janssen in order to receive approximately $2,300,000 over eighteen years.

Pursuant to these settlement agreements, these funds must be spent on activities to abate the impacts of the opioid crisis, such as providing matching funds for operating costs for substance use disorder (SUD) facilities, creating new or expanded SUD treatment infrastructure, addressing the needs of communities of color and vulnerable populations that are disproportionately impacted by SUD, preventing addiction in vulnerable youth, purchasing Narcan, and providing Narcan-use training. The City can either direct those funds to the County of Santa Cruz (County) for county-wide abatement activities or elect to use the funds internally, subject to settlementmandated State reporting requirements.

DISCUSSION: Pursuant to the Distributors and Janssen settlements, California will receive up to approximately $2.263 billion. California counties and cities have been allocated approximately $1,924,335,062, which is 85% of the total amount allocated to California. The City of Santa Cruz has been allocated an estimated $2,300,000. The County of Santa Cruz has been allocated an estimated $15,655,000, and the cities of Capitola, Scotts Valley, and Watsonville will collectively receive approximately $1,568,000.

The settlement agreements include a default distribution wherein the funds go directly to the county in which a city is located. However, a city can elect to have its funds delivered directly to the city. A city can change how its funds are distributed at any time before any settlement distribution during the 18-year settlement distribution timeframe.

7.1 At its November 9, 2021 meeting, the City Council decided to retain its settlement funds for the City’s internal use. Accordingly, and since the City signed the settlement agreements, the City has received three payments totaling $161,814.48. All other cities within the County have elected to send their settlement distributions directly to the County.

The County has proposed that the County and all cities within the County’s jurisdiction enter an agreement for stakeholder input about funding priorities. Pursuant to the attached agreement, the County will create a Stakeholder Group to collectively establish priorities for use of the settlement funds within the County. Any city within the County’s jurisdictional limits can participate in the Stakeholder Group, regardless of whether it allocates its portion of the settlement funding to the County or not. Each city, therefore, maintains its right to keep its settlement funds. In participating in the Stakeholder Group, however, each city will be a part of conversations and can influence how funds are used across the County to best serve those impacted by and to abate the impacts of the opioid crisis.

Given that the County Agreement will still permit the City to retain its settlement funds while participating in valuable Stakeholder Group conversations about the best use of county-wide funds, City staff recommend that Council direct the City Manager to execute the attached agreement and to participate in the Stakeholder Group.

FISCAL IMPACT: The recommended action will have no direct fiscal impact other than a limited amount of staff time to participate in the Stakeholder Group described by the Agreement.

Prepared By:

Victoria Thompson
Deputy City Attorney
Submitted By:

Tony Condotti
City Attorney
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. COUNTY OPIOID AGREEMENT.PDF

7.2

AGREEMENT AMONG THE COUNTY OF SANTA CRUZ

AND THE CITIES OF SANTA CRUZ, SCOTTS VALLEY,

CAPITOLA AND WATSONVILLE FOR THE USE OF

OPIOID SETTLEMENT FUNDS
WHEREAS, in the United States last year, over 100,000 people died because of an opioid addiction, representing a twenty-five (25) percent increase over the prior year.

WHEREAS, the CITIES OF SANTA CRUZ, WATSONVILLE, SCOTTS VALLEY AND CAPITOLA (together “CITIES” and individually “CITY”) and the COUNTY OF SANTA CRUZ (“COUNTY”) have been significantly impacted by the opioid epidemic through residents suffering from addiction and loss of life, and high demands for substance use disorder services in which the COUNTY has invested significant funding to support.

WHEREAS, CITIES and COUNTY have a mutual interest in best supporting the needs of individuals who would benefit from timely access to evidence based substance use disorder treatment.

WHEREAS, in 2017, multiple public agencies sued distributors AmerisourceBergen, Cardinal Health and McKesson and manufacturer Janssen Pharma, alleging damages caused by years of opioid marketing, sales, and overprescribing in their respective communities. Several of the lawsuits were consolidated in In re: National Prescription Opiate Litigation (U.S.D.C. Case No. 1:17-CV-2804). The parties settled in July 21, 2021. Pursuant to the settlement agreement (Settlement Agreement), the manufacturer and distributers have agreed to provide funding (Settlement Funds) to states to support ongoing treatment and services for individuals with a substance use disorder.

WHEREAS, pursuant to the Settlement Agreement, COUNTY and CITIES are entitled to a portion of the Settlement Funds. Initially, all Settlement Funds allocated to the State will be distributed to COUNTY. If CITIES take no action, COUNTY retains the Settlement Funds. If a CITY wants to receive its portion of the Settlement Funds, it must elect to do so each year by following the procedures dictated by the Settlement Administrator. The Settlement Funds must be used for services described in Exhibit E to the Settlement Agreement, “List of Opioid Remediation Uses,” or any additional priority areas added by the California Department of Healthcare Services (DHSC). A true and correct copy of Exhibit E to the Settlement Agreement is attached hereto.

WHEREAS, the State of California has established five (5) key priority areas for the use of the Settlement Funds:

1. The provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program;

2. Creating new or expanded substance use disorder (SUD) treatment infrastructure;

3. Addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD;

7.3

4. Diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction; and

5. Interventions to prevent drug addiction in vulnerable youth.

WHEREAS, COUNTY has encouraged CITIES to allow their portions of the Settlement Funds to remain with the COUNTY in order to have a greater collective impact and to support the needs of all residents of the County who struggle with substance use. This will support treatment interventions in all geographic areas of the County in accordance with the terms and conditions of the Settlement Agreement.

WHEREAS, the first payment under the Settlement Agreement is anticipated to be made in April of 2022.

NOW, THEREFORE, CITIES and COUNTY agree as follows:

COUNTY OBLIGATIONS

1. COUNTY will utilize all Settlement Funds allocated to the COUNTY directly or allowed to remain with the COUNTY by any CITY (County Funds) in accordance with the terms and conditions of the Settlement Agreement. COUNTY will also adhere to all reporting requirements required by the Settlement Agreement or Settlement Administrator for all County Funds.

2. COUNTY will establish a Stakeholder Group to provide input about how to prioritize the use of County Funds including COUNTY’s allocation consistent with the terms and conditions of the Settlement Agreement.

3. COUNTY will ensure that each CITY that leaves all or a portion of the Settlement Funds allocated to that CITY with the COUNTY will have a representative on the Stakeholder Group. The Stakeholder Group will work with COUNTY in establishing multi- year priorities for funding based on the terms and conditions of the Settlement Agreement, and local priorities and needs identified by CITIES.

4. COUNTY will prioritize the use of County Funds as a match for federal matching funds through the Drug Medi-Cal Organized Delivery System waiver to maximize the use of County Funds.

5. COUNTY will work with the Human Services Department (HSD) to explore utilizing the existing Collective of Results and Evidence-based Investments (CORE) funding process to solicit proposals and award contracts for substance use disorder services described in the Settlement Agreement. The next round of CORE begins in 2024. If, for any reason, the established CORE funding process cannot be utilized, COUNTY will establish an alternate process to solicit proposals and award contracts. In either event, COUNTY will ensure that Stakeholder Group input will include consumers and family members, providers of services and elected officials.

7.4

6. COUNTY will recommend to Stakeholder Group a multi-year approach to funding based on projected settlement payments and to allow for funded projects to demonstrate their effectiveness over several years.

7. COUNTY will recommend to Stakeholder Group that all proposals selected for funding be required to provide outcomes data to demonstrate the effectiveness of programming supported through this funding process.

CITY OBLIGATIONS

1. CITIES will have the opportunity to designate a lead representative to join the Stakeholder Group.

2. This Agreement does not obligate any CITY to leave any Settlement Funds allocated to the CITY with the COUNTY. Any CITY is permitted to request all or a portion of the Settlement Funds allocated to that CITY, pursuant to the procedures in the Settlement Agreement. In January of any year in which a CITY intends to request its portion of the Settlement Funds for that year, CITY will meet and confer with COUNTY for the purpose of responding to any concerns about the process or the use of the Settlement Funds.

3. In the event that a CITY determines that it is going to retain its portion of the Settlement Funds, that CITY will assume responsibility for the contracting and reporting process under the terms and conditions of the Settlement Agreement.

TERM
The term of this Agreement shall be from February 2022 to January 2027 and will automatically renew thereafter until the final disbursement of the Settlement Funds. However, COUNTY or CITIES have the option of terminating this Agreement at any time by giving all parties to this Agreement thirty (30) days written notice. Any individual CITY may terminate its participation in this Agreement by providing thirty (30) days written notice.

INDEMNIFICATION FOR DAMAGES
To the fullest extent permitted by applicable law, CITIES and COUNTY shall exonerate, indemnify, defend, and hold harmless one another (including, without limitation, its officers, agents, employees and volunteers) from and against any and all claims, demands, losses, damages, defense costs, or liability of any kind or nature which any party to this Agreement may sustain or incur or which may be imposed upon it as a result of, arising out of, or in any manner connected with this Agreement, excepting any liability arising out of the sole negligence of an indemnifying party. Such indemnification includes any damage to the person(s), or property(ies) of any party to this Agreement and third persons.

7.5

MISCELLANEOUS
This Agreement, along with any attachments, is the full and complete integration of the parties’ agreement forming the basis for this Agreement. The parties agree that this Agreement supersedes any previous written or oral agreements among the parties, and any modifications to this Agreement must be made in a written document signed by all parties. The unenforceability, invalidity, or illegality of any provision(s) of this Agreement shall not render the other provisions unenforceable, invalid or illegal. Waiver by any party of any portion of this Agreement shall not constitute a waiver of any other portion thereof. Any arbitration, mediation, or litigation arising out of this Agreement shall occur in the County of Santa Cruz. This Agreement shall be governed by, and interpreted in accordance with, California law.

IN WITNESS WHEREOF, the parties hereto have set their hands the day and year written below. [Signatures on Following Page]

7.6

CITY OF SANTA CRUZ COUNTY OF SANTA CRUZ
By: By:

SIGNED SIGNED

PRINTED PRINTED

CITY OF WATSONVILLE CITY OF SCOTTS VALLEY
By: By:

SIGNED SIGNED

PRINTED PRINTED

CITY OF CAPITOLA
By:

SIGNED
PRINTED APPROVED AS TO INSURANCE:

Risk Management-County
APPROVED AS TO FORM: APPROVED AS TO FORM:

Office of the City Attorney - Watsonville Office of the County Counsel Office of the City Attorney - Santa Cruz
Office of the City Attorney - Capitola
Office of the City Attorney - Scotts Valley

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EXHIBIT E
List of Opioid Remediation Uses
Schedule A
Core Strategies
States and Qualifying Block Grantees shall choose from among the abatement strategies listed in Schedule B. However, priority shall be given to the following core abatement strategies (“Core Strategies”).1

A. NALOXONE OR OTHER FDA-APPROVED DRUG TO

REVERSE OPIOID OVERDOSES

1. Expand training for first responders, schools, community support groups and families; and

2. Increase distribution to individuals who are uninsured or whose insurance does not cover the needed service.

B. MEDICATION-ASSISTED TREATMENT (“MAT”)

DISTRIBUTION AND OTHER OPIOID-RELATED

TREATMENT

1. Increase distribution of MAT to individuals who are
uninsured or whose insurance does not cover the needed
service;

2. Provide education to school-based and youth-focused
programs that discourage or prevent misuse;

3. Provide MAT education and awareness training to
healthcare providers, EMTs, law enforcement, and other
first responders; and

4. Provide treatment and recovery support services such as residential and inpatient treatment, intensive outpatient treatment, outpatient therapy or counseling, and recovery housing that allow or integrate medication and with other support services.
1 As used in this Schedule A, words like “expand,” “fund,” “provide” or the like shall not indicate a preference for new or existing programs.

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revised July 30, 2021
C. PREGNANT & POSTPARTUM WOMEN

1. Expand Screening, Brief Intervention, and Referral to Treatment (“SBIRT”) services to non-Medicaid eligible or uninsured pregnant women;

2. Expand comprehensive evidence-based treatment and
recovery services, including MAT, for women with cooccurring Opioid Use Disorder (“OUD”) and other Substance Use Disorder (“SUD”)/Mental Health disorders
for uninsured individuals for up to 12 months postpartum; and

3. Provide comprehensive wrap-around services to individuals with OUD, including housing, transportation, job
placement/training, and childcare.

D. EXPANDING TREATMENT FOR NEONATAL
ABSTINENCE SYNDROME (“NAS”)

1. Expand comprehensive evidence-based and recovery
support for NAS babies;

2. Expand services for better continuum of care with infantneed dyad; and

3. Expand long-term treatment and services for medical
monitoring of NAS babies and their families.

E. EXPANSION OF WARM HAND-OFF PROGRAMS AND

RECOVERY SERVICES

1. Expand services such as navigators and on-call teams to begin MAT in hospital emergency departments;

2. Expand warm hand-off services to transition to recovery services;

3. Broaden scope of recovery services to include co-occurring SUD or mental health conditions;

4. Provide comprehensive wrap-around services to individuals in recovery, including housing, transportation, job
placement/training, and childcare; and

5. Hire additional social workers or other behavioral health workers to facilitate expansions above.

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revised July 30, 2021
F. TREATMENT FOR INCARCERATED POPULATION

1. Provide evidence-based treatment and recovery support, including MAT for persons with OUD and co-occurring
SUD/MH disorders within and transitioning out of the
criminal justice system; and

2. Increase funding for jails to provide treatment to inmates with OUD.

G. PREVENTION PROGRAMS

1. Funding for media campaigns to prevent opioid use (similar to the FDA’s “Real Cost” campaign to prevent youth from
misusing tobacco);

2. Funding for evidence-based prevention programs in schools;

3. Funding for medical provider education and outreach regarding best prescribing practices for opioids consistent with the 2016 CDC guidelines, including providers at hospitals (academic detailing);

4. Funding for community drug disposal programs; and

5. Funding and training for first responders to participate in prearrest diversion programs, post-overdose response teams, or similar strategies that connect at-risk individuals to behavioral health services and supports.

H. EXPANDING SYRINGE SERVICE PROGRAMS

1. Provide comprehensive syringe services programs with more wrap-around services, including linkage to OUD
treatment, access to sterile syringes and linkage to care and treatment of infectious diseases.

I. EVIDENCE-BASED DATA COLLECTION AND

RESEARCH ANALYZING THE EFFECTIVENESS OF THE

ABATEMENT STRATEGIES WITHIN THE STATE

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revised July 30, 2021
Schedule B
Approved Uses
Support treatment of Opioid Use Disorder (OUD) and any co-occurring Substance Use Disorder or Mental Health (SUD/MH) conditions through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, the following:

PART ONE: TREATMENT
A. TREAT OPIOID USE DISORDER (OUD)
Support treatment of Opioid Use Disorder (“OUD”) and any co-occurring Substance Use Disorder or Mental Health (“SUD/MH”) conditions through evidence-based or evidenceinformed programs or strategies that may include, but are not limited to, those that:2

1. Expand availability of treatment for OUD and any co-occurring SUD/MH conditions, including all forms of Medication-Assisted Treatment (“MAT”) approved by the U.S.

Food and Drug Administration.

2. Support and reimburse evidence-based services that adhere to the American Society of Addiction Medicine (“ASAM”) continuum of care for OUD and any co-occurring SUD/MH conditions.

3. Expand telehealth to increase access to treatment for OUD and any co-occurring SUD/MH conditions, including MAT, as well as counseling, psychiatric support, and other treatment and recovery support services.

4. Improve oversight of Opioid Treatment Programs (“OTPs”) to assure evidence-based or evidence-informed practices such as adequate methadone dosing and low threshold approaches to treatment.

5. Support mobile intervention, treatment, and recovery services, offered by qualified professionals and service providers, such as peer recovery coaches, for persons with OUD and any co-occurring SUD/MH conditions and for persons who have experienced an opioid overdose.

6. Provide treatment of trauma for individuals with OUD (e.g., violence, sexual assault, human trafficking, or adverse childhood experiences) and family members (e.g., surviving family members after an overdose or overdose fatality), and training of health care personnel to identify and address such trauma.

7. Support evidence-based withdrawal management services for people with OUD and any co-occurring mental health conditions.
2 As used in this Schedule B, words like “expand,” “fund,” “provide” or the like shall not indicate a preference for new or existing programs.

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revised July 30, 2021

8. Provide training on MAT for health care providers, first responders, students, or other supporting professionals, such as peer recovery coaches or recovery outreach specialists, including telementoring to assist community-based providers in rural or underserved areas.

9. Support workforce development for addiction professionals who work with persons with OUD and any co-occurring SUD/MH conditions.

10. Offer fellowships for addiction medicine specialists for direct patient care, instructors, and clinical research for treatments.

11. Offer scholarships and supports for behavioral health practitioners or workers involved in addressing OUD and any co-occurring SUD/MH or mental health conditions, including, but not limited to, training, scholarships, fellowships, loan repayment programs, or other incentives for providers to work in rural or underserved areas.

12. Provide funding and training for clinicians to obtain a waiver under the federal Drug Addiction Treatment Act of 2000 (“DATA 2000”) to prescribe MAT for OUD, and provide technical assistance and professional support to clinicians who have obtained a DATA 2000 waiver.

13. Disseminate web-based training curricula, such as the American Academy of Addiction Psychiatry’s Provider Clinical Support Service–Opioids web-based training curriculum and motivational interviewing.

14. Develop and disseminate new curricula, such as the American Academy of Addiction Psychiatry’s Provider Clinical Support Service for Medication–Assisted Treatment.

B. SUPPORT PEOPLE IN TREATMENT AND RECOVERY
Support people in recovery from OUD and any co-occurring SUD/MH conditions through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, the programs or strategies that:

1. Provide comprehensive wrap-around services to individuals with OUD and any cooccurring SUD/MH conditions, including housing, transportation, education, job placement, job training, or childcare.

2. Provide the full continuum of care of treatment and recovery services for OUD and any co-occurring SUD/MH conditions, including supportive housing, peer support services and counseling, community navigators, case management, and connections to community-based services.

3. Provide counseling, peer-support, recovery case management and residential treatment with access to medications for those who need it to persons with OUD and any co-occurring SUD/MH conditions.

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revised July 30, 2021

4. Provide access to housing for people with OUD and any co-occurring SUD/MH conditions, including supportive housing, recovery housing, housing assistance programs, training for housing providers, or recovery housing programs that allow or integrate FDA-approved mediation with other support services.

5. Provide community support services, including social and legal services, to assist in deinstitutionalizing persons with OUD and any co-occurring SUD/MH conditions.

6. Support or expand peer-recovery centers, which may include support groups, social events, computer access, or other services for persons with OUD and any cooccurring SUD/MH conditions.

7. Provide or support transportation to treatment or recovery programs or services for persons with OUD and any co-occurring SUD/MH conditions.

8. Provide employment training or educational services for persons in treatment for or recovery from OUD and any co-occurring SUD/MH conditions.

9. Identify successful recovery programs such as physician, pilot, and college recovery programs, and provide support and technical assistance to increase the number and capacity of high-quality programs to help those in recovery.

10. Engage non-profits, faith-based communities, and community coalitions to support people in treatment and recovery and to support family members in their efforts to support the person with OUD in the family.

11. Provide training and development of procedures for government staff to appropriately interact and provide social and other services to individuals with or in recovery from OUD, including reducing stigma.

12. Support stigma reduction efforts regarding treatment and support for persons with OUD, including reducing the stigma on effective treatment.

13. Create or support culturally appropriate services and programs for persons with OUD and any co-occurring SUD/MH conditions, including new Americans.

14. Create and/or support recovery high schools.

15. Hire or train behavioral health workers to provide or expand any of the services or supports listed above.

C. CONNECT PEOPLE WHO NEED HELP TO THE HELP THEY NEED
(CONNECTIONS TO CARE)
Provide connections to care for people who have—or are at risk of developing—OUD and any co-occurring SUD/MH conditions through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, those that:

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revised July 30, 2021

1. Ensure that health care providers are screening for OUD and other risk factors and know how to appropriately counsel and treat (or refer if necessary) a patient for OUD treatment.

2. Fund SBIRT programs to reduce the transition from use to disorders, including SBIRT services to pregnant women who are uninsured or not eligible for Medicaid.

3. Provide training and long-term implementation of SBIRT in key systems (health, schools, colleges, criminal justice, and probation), with a focus on youth and young adults when transition from misuse to opioid disorder is common.

4. Purchase automated versions of SBIRT and support ongoing costs of the technology.

5. Expand services such as navigators and on-call teams to begin MAT in hospital emergency departments.

6. Provide training for emergency room personnel treating opioid overdose patients on post-discharge planning, including community referrals for MAT, recovery case management or support services.

7. Support hospital programs that transition persons with OUD and any co-occurring SUD/MH conditions, or persons who have experienced an opioid overdose, into clinically appropriate follow-up care through a bridge clinic or similar approach.

8. Support crisis stabilization centers that serve as an alternative to hospital emergency departments for persons with OUD and any co-occurring SUD/MH conditions or persons that have experienced an opioid overdose.

9. Support the work of Emergency Medical Systems, including peer support specialists, to connect individuals to treatment or other appropriate services following an opioid overdose or other opioid-related adverse event.

10. Provide funding for peer support specialists or recovery coaches in emergency departments, detox facilities, recovery centers, recovery housing, or similar settings; offer services, supports, or connections to care to persons with OUD and any cooccurring SUD/MH conditions or to persons who have experienced an opioid overdose.

11. Expand warm hand-off services to transition to recovery services.

12. Create or support school-based contacts that parents can engage with to seek immediate treatment services for their child; and support prevention, intervention, treatment, and recovery programs focused on young people.

13. Develop and support best practices on addressing OUD in the workplace.

14. Support assistance programs for health care providers with OUD.

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revised July 30, 2021

15. Engage non-profits and the faith community as a system to support outreach for treatment.

16. Support centralized call centers that provide information and connections to appropriate services and supports for persons with OUD and any co-occurring SUD/MH conditions.

D. ADDRESS THE NEEDS OF CRIMINAL JUSTICE-INVOLVED PERSONS Address the needs of persons with OUD and any co-occurring SUD/MH conditions who are involved in, are at risk of becoming involved in, or are transitioning out of the criminal justice system through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, those that:

1. Support pre-arrest or pre-arraignment diversion and deflection strategies for persons with OUD and any co-occurring SUD/MH conditions, including established strategies such as:

1. Self-referral strategies such as the Angel Programs or the Police Assisted Addiction Recovery Initiative (“PAARI”);

2. Active outreach strategies such as the Drug Abuse Response Team (“DART”) model;

3. “Naloxone Plus” strategies, which work to ensure that individuals who have received naloxone to reverse the effects of an overdose are then linked to treatment programs or other appropriate services;

4. Officer prevention strategies, such as the Law Enforcement Assisted Diversion (“LEAD”) model;

5. Officer intervention strategies such as the Leon County, Florida Adult Civil Citation Network or the Chicago Westside Narcotics Diversion to Treatment Initiative; or

6. Co-responder and/or alternative responder models to address OUD-related 911 calls with greater SUD expertise.

2. Support pre-trial services that connect individuals with OUD and any co-occurring SUD/MH conditions to evidence-informed treatment, including MAT, and related services.

3. Support treatment and recovery courts that provide evidence-based options for persons with OUD and any co-occurring SUD/MH conditions.

4. Provide evidence-informed treatment, including MAT, recovery support, harm reduction, or other appropriate services to individuals with OUD and any cooccurring SUD/MH conditions who are incarcerated in jail or prison.

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revised July 30, 2021

5. Provide evidence-informed treatment, including MAT, recovery support, harm reduction, or other appropriate services to individuals with OUD and any cooccurring SUD/MH conditions who are leaving jail or prison or have recently left jail or prison, are on probation or parole, are under community corrections supervision, or are in re-entry programs or facilities.

6. Support critical time interventions (“CTI”), particularly for individuals living with dual-diagnosis OUD/serious mental illness, and services for individuals who face immediate risks and service needs and risks upon release from correctional settings.

7. Provide training on best practices for addressing the needs of criminal justiceinvolved persons with OUD and any co-occurring SUD/MH conditions to law enforcement, correctional, or judicial personnel or to providers of treatment, recovery, harm reduction, case management, or other services offered in connection with any of the strategies described in this section.

E. ADDRESS THE NEEDS OF PREGNANT OR PARENTING WOMEN AND

THEIR FAMILIES, INCLUDING BABIES WITH NEONATAL ABSTINENCE

SYNDROME
Address the needs of pregnant or parenting women with OUD and any co-occurring SUD/MH conditions, and the needs of their families, including babies with neonatal abstinence syndrome (“NAS”), through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, those that:

1. Support evidence-based or evidence-informed treatment, including MAT, recovery services and supports, and prevention services for pregnant women—or women who could become pregnant—who have OUD and any co-occurring SUD/MH conditions, and other measures to educate and provide support to families affected by Neonatal Abstinence Syndrome.

2. Expand comprehensive evidence-based treatment and recovery services, including MAT, for uninsured women with OUD and any co-occurring SUD/MH conditions for up to 12 months postpartum.

3. Provide training for obstetricians or other healthcare personnel who work with pregnant women and their families regarding treatment of OUD and any co-occurring SUD/MH conditions.

4. Expand comprehensive evidence-based treatment and recovery support for NAS babies; expand services for better continuum of care with infant-need dyad; and expand long-term treatment and services for medical monitoring of NAS babies and their families.

5. Provide training to health care providers who work with pregnant or parenting women on best practices for compliance with federal requirements that children born with NAS get referred to appropriate services and receive a plan of safe care.

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revised July 30, 2021

6. Provide child and family supports for parenting women with OUD and any cooccurring SUD/MH conditions.

7. Provide enhanced family support and child care services for parents with OUD and any co-occurring SUD/MH conditions.

8. Provide enhanced support for children and family members suffering trauma as a result of addiction in the family; and offer trauma-informed behavioral health treatment for adverse childhood events.

9. Offer home-based wrap-around services to persons with OUD and any co-occurring SUD/MH conditions, including, but not limited to, parent skills training.

10. Provide support for Children’s Services—Fund additional positions and services, including supportive housing and other residential services, relating to children being removed from the home and/or placed in foster care due to custodial opioid use.

PART TWO: PREVENTION
F. PREVENT OVER-PRESCRIBING AND ENSURE APPROPRIATE

PRESCRIBING AND DISPENSING OF OPIOIDS
Support efforts to prevent over-prescribing and ensure appropriate prescribing and dispensing of opioids through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, the following:

1. Funding medical provider education and outreach regarding best prescribing practices for opioids consistent with the Guidelines for Prescribing Opioids for Chronic Pain from the U.S. Centers for Disease Control and Prevention, including providers at hospitals (academic detailing).

2. Training for health care providers regarding safe and responsible opioid prescribing, dosing, and tapering patients off opioids.

3. Continuing Medical Education (CME) on appropriate prescribing of opioids.

4. Providing Support for non-opioid pain treatment alternatives, including training providers to offer or refer to multi-modal, evidence-informed treatment of pain.

5. Supporting enhancements or improvements to Prescription Drug Monitoring Programs (“PDMPs”), including, but not limited to, improvements that:

1. Increase the number of prescribers using PDMPs;

2. Improve point-of-care decision-making by increasing the quantity, quality, or format of data available to prescribers using PDMPs, by improving the interface that prescribers use to access PDMP data, or both; or

7.17 73
revised July 30, 2021

3. Enable states to use PDMP data in support of surveillance or intervention strategies, including MAT referrals and follow-up for individuals identified within PDMP data as likely to experience OUD in a manner that complies with all relevant privacy and security laws and rules.

6. Ensuring PDMPs incorporate available overdose/naloxone deployment data, including the United States Department of Transportation’s Emergency Medical Technician overdose database in a manner that complies with all relevant privacy and security laws and rules.

7. Increasing electronic prescribing to prevent diversion or forgery.

8. Educating dispensers on appropriate opioid dispensing.

G. PREVENT MISUSE OF OPIOIDS
Support efforts to discourage or prevent misuse of opioids through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, the following:

1. Funding media campaigns to prevent opioid misuse.

2. Corrective advertising or affirmative public education campaigns based on evidence.

3. Public education relating to drug disposal.

4. Drug take-back disposal or destruction programs.

5. Funding community anti-drug coalitions that engage in drug prevention efforts.

6. Supporting community coalitions in implementing evidence-informed prevention, such as reduced social access and physical access, stigma reduction—including staffing, educational campaigns, support for people in treatment or recovery, or training of coalitions in evidence-informed implementation, including the Strategic Prevention Framework developed by the U.S. Substance Abuse and Mental Health Services Administration (“SAMHSA”).

7. Engaging non-profits and faith-based communities as systems to support prevention.

8. Funding evidence-based prevention programs in schools or evidence-informed school and community education programs and campaigns for students, families, school employees, school athletic programs, parent-teacher and student associations, and others.

9. School-based or youth-focused programs or strategies that have demonstrated effectiveness in preventing drug misuse and seem likely to be effective in preventing the uptake and use of opioids.

7.18 74
revised July 30, 2021

10. Create or support community-based education or intervention services for families, youth, and adolescents at risk for OUD and any co-occurring SUD/MH conditions.

11. Support evidence-informed programs or curricula to address mental health needs of young people who may be at risk of misusing opioids or other drugs, including emotional modulation and resilience skills.

12. Support greater access to mental health services and supports for young people, including services and supports provided by school nurses, behavioral health workers or other school staff, to address mental health needs in young people that (when not properly addressed) increase the risk of opioid or another drug misuse.

H. PREVENT OVERDOSE DEATHS AND OTHER HARMS (HARM REDUCTION) Support efforts to prevent or reduce overdose deaths or other opioid-related harms through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, the following:

1. Increased availability and distribution of naloxone and other drugs that treat overdoses for first responders, overdose patients, individuals with OUD and their friends and family members, schools, community navigators and outreach workers, persons being released from jail or prison, or other members of the general public.

2. Public health entities providing free naloxone to anyone in the community.

3. Training and education regarding naloxone and other drugs that treat overdoses for first responders, overdose patients, patients taking opioids, families, schools, community support groups, and other members of the general public.

4. Enabling school nurses and other school staff to respond to opioid overdoses, and provide them with naloxone, training, and support.

5. Expanding, improving, or developing data tracking software and applications for overdoses/naloxone revivals.

6. Public education relating to emergency responses to overdoses.

7. Public education relating to immunity and Good Samaritan laws.

8. Educating first responders regarding the existence and operation of immunity and Good Samaritan laws.

9. Syringe service programs and other evidence-informed programs to reduce harms associated with intravenous drug use, including supplies, staffing, space, peer support services, referrals to treatment, fentanyl checking, connections to care, and the full range of harm reduction and treatment services provided by these programs.

7.19 75
revised July 30, 2021

10. Expanding access to testing and treatment for infectious diseases such as HIV and Hepatitis C resulting from intravenous opioid use.

11. Supporting mobile units that offer or provide referrals to harm reduction services, treatment, recovery supports, health care, or other appropriate services to persons that use opioids or persons with OUD and any co-occurring SUD/MH conditions.

12. Providing training in harm reduction strategies to health care providers, students, peer recovery coaches, recovery outreach specialists, or other professionals that provide care to persons who use opioids or persons with OUD and any co-occurring SUD/MH conditions.

13. Supporting screening for fentanyl in routine clinical toxicology testing.

PART THREE: OTHER STRATEGIES
I. FIRST RESPONDERS
In addition to items in section C, D and H relating to first responders, support the following:

1. Education of law enforcement or other first responders regarding appropriate practices and precautions when dealing with fentanyl or other drugs.

2. Provision of wellness and support services for first responders and others who experience secondary trauma associated with opioid-related emergency events.

J. LEADERSHIP, PLANNING AND COORDINATION
Support efforts to provide leadership, planning, coordination, facilitations, training and technical assistance to abate the opioid epidemic through activities, programs, or strategies that may include, but are not limited to, the following:

1. Statewide, regional, local or community regional planning to identify root causes of addiction and overdose, goals for reducing harms related to the opioid epidemic, and areas and populations with the greatest needs for treatment intervention services, and to support training and technical assistance and other strategies to abate the opioid epidemic described in this opioid abatement strategy list.

2. A dashboard to (a) share reports, recommendations, or plans to spend opioid settlement funds; (b) to show how opioid settlement funds have been spent; (c) to report program or strategy outcomes; or (d) to track, share or visualize key opioid- or health-related indicators and supports as identified through collaborative statewide, regional, local or community processes.

3. Invest in infrastructure or staffing at government or not-for-profit agencies to support collaborative, cross-system coordination with the purpose of preventing

7.20 76
revised July 30, 2021
overprescribing, opioid misuse, or opioid overdoses, treating those with OUD and any co-occurring SUD/MH conditions, supporting them in treatment or recovery, connecting them to care, or implementing other strategies to abate the opioid epidemic described in this opioid abatement strategy list.

4. Provide resources to staff government oversight and management of opioid abatement programs.

K. TRAINING
In addition to the training referred to throughout this document, support training to abate the opioid epidemic through activities, programs, or strategies that may include, but are not limited to, those that:

1. Provide funding for staff training or networking programs and services to improve the capability of government, community, and not-for-profit entities to abate the opioid crisis.

2. Support infrastructure and staffing for collaborative cross-system coordination to prevent opioid misuse, prevent overdoses, and treat those with OUD and any cooccurring SUD/MH conditions, or implement other strategies to abate the opioid epidemic described in this opioid abatement strategy list (e.g., health care, primary care, pharmacies, PDMPs, etc.).

L. RESEARCH
Support opioid abatement research that may include, but is not limited to, the following:

1. Monitoring, surveillance, data collection and evaluation of programs and strategies described in this opioid abatement strategy list.

2. Research non-opioid treatment of chronic pain.

3. Research on improved service delivery for modalities such as SBIRT that demonstrate promising but mixed results in populations vulnerable to opioid use disorders.

4. Research on novel harm reduction and prevention efforts such as the provision of fentanyl test strips.

5. Research on innovative supply-side enforcement efforts such as improved detection of mail-based delivery of synthetic opioids.

6. Expanded research on swift/certain/fair models to reduce and deter opioid misuse within criminal justice populations that build upon promising approaches used to address other substances (e.g., Hawaii HOPE and Dakota 24/7).

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revised July 30, 2021

7. Epidemiological surveillance of OUD-related behaviors in critical populations, including individuals entering the criminal justice system, including, but not limited to approaches modeled on the Arrestee Drug Abuse Monitoring (“ADAM”) system.

8. Qualitative and quantitative research regarding public health risks and harm reduction opportunities within illicit drug markets, including surveys of market participants who sell or distribute illicit opioids.

9. Geospatial analysis of access barriers to MAT and their association with treatment engagement and treatment outcomes.

7.22 City Council

AGENDA REPORT
DATE: 01/25/2023
AGENDA OF: 02/14/2023
DEPARTMENT: City Clerk
SUBJECT: Commission for the Prevention of Violence Against Women Appointment (CC)
RECOMMENDATION: Motion to defer Vice Mayor Golder’s nomination to a future meeting.

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

MINUTES OF A CITY COUNCIL MEETING
January 24, 2023
12:30 PM
Mayor Keeley opened the City Council Closed Session at 12:35 p.m. in a public meeting via Zoom and in Council Chambers, for the purpose of announcing the agenda, and receiving public testimony.

Roll Call

Present: Councilmembers Newsome, Brown, Watkins, Brunner, KalantariJohnson; Vice Mayor Golder; Mayor Keeley.

Absent: None.

Staff: City Manager M. Huffaker, Assistant City Manager L. Schmidt, City Attorney T. Condotti, Chief People Officer S. De Leon, Deputy City Manager L. Murphy, Director of Economic Development B. Lipscomb, Deputy City Clerk Administrator J. Wood, City Clerk Administrator B.

Bush.

Public Comment
Mayor Keeley opened the public comment period at 12:36 p.m. There were no speakers. Mayor Keeley closed the public comment period at 12:36 p.m., at which time the meeting was closed to the public and Council adjourned to the Courtyard Conference Room.

Closed Session

1. Conference with Labor Negotiators (Government Code §54957.6) Police Officers Association
Police Management Association
SEIU Temporary Employees
City Negotiator – Lisa Murphy
Council received a status report from the City Negotiator, and no reportable action was taken.

9.1 January 24, 2023 CITY COUNCIL MINUTES 6349
Closed Session (continued)

2. Real Property Negotiations (Government Code §54956.8) Property: 902 Pacific Avenue and 333 Front Street
APNs: 005-152-32 and 005-152-33
Owner: City of Santa Cruz
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City and 902 Pacific Ave. Investors, L.P.

Under Negotiation: Price, terms of payment, or both
Council received a status report from the City Negotiator, took up under agenda item 12, and no reportable action was taken.

3. Conference with Legal Counsel - Existing Litigation (Government Code §54956.9(d)(1))
Lopez, Alicia v. Mary McCoy, City of Santa Cruz, et al.

Santa Cruz Superior Court Case No. 18CV03301
Council received a status report, gave direction, and took no reportable action.

9.2 January 24, 2023 CITY COUNCIL MINUTES 6350
City of Santa Cruz
809 Center Street
Santa Cruz, California 95060

MINUTES OF A CITY COUNCIL MEETING
January 24, 2023
2:00 PM
Call to Order – Mayor Keeley called the meeting to order at 2:02 p.m. in Council Chambers.

Roll Call

Present: Councilmembers Newsome, Brown, Watkins, Brunner, KalantariJohnson; Vice Mayor Golder; Mayor Keeley.

Absent: None.

Staff: City Manager M. Huffaker, Assistant City Manager L. Schmidt, City Attorney T. Condotti, Director of Planning and Community Development L. Butler, Director of Economic Development B. Lipscomb (via Zoom), Finance Director E. Cabell (via Zoom), Director of Information Technology K. Morgan (via Zoom), Fire Chief R. Oatey (via Zoom), Water Director R. Menard (via Zoom), Chief People Officer S. De Leon (via Zoom), Director of Parks and Recreation T. Elliot (via Zoom), Laboratory and Environmental Compliance Manager A. Babatola, Sustainability and Climate Action Manager T. Wise-West, Deputy City Clerk Administrator J. Wood, City Clerk Administrator B. Bush.

Presiding Officer's Announcements – None.

Statements of Disqualification – None.

Additions and Deletions – None.

City Attorney Report on Closed Session – See pages 6348—6349 for the report.

Council Meeting Calendar

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

9.3 January 24, 2023 CITY COUNCIL MINUTES 6351
Consent Agenda
Councilmember Kalantari-Johnson and Mayor Keeley made a comment on item 10.

Councilmember Watkins made a comment on item 16.

City Attorney T. Condotti spoke regarding item 7, reporting that the City Manager’s salary would be increasing 5% resulting in an adjustment of base compensation from $23,086.96/month to $24,241.31/month.

Mayor Keeley and Councilmember Brown made a comment on item 15. Mayor Keeley requested that when the motion is made, that it include an amendment to item 15,as follows:

Motion to accept the report regarding the schedule for the proposed General Plan Map amendments; and, indicate to staff that the Downtown Plan Expansion is the preferred option of the City Council without prejudging the recommendation from staff when this item returns to Council.

Director of Planning and Community Development L. Butler responded to Councilmember Brunner’s questions regarding Mayor Keeley’s amendments to item

15. Laboratory and Environmental Compliance Manager A. Babatola responded to Councilmember Brown’s questions on item 17.

Mayor Keeley opened the public comment period. The following people spoke:

Unidentified person spoke regarding item 17.

Liam McLaughlin spoke regarding item 7.

Unidentified person spoke regarding item 7.

Unidentified person spoke regarding item 7.

Laurie Egan spoke regarding item 17.

Mayor Keeley closed the public comment period.

MOTION: Vice Mayor Golder moved, seconded by Councilmember Watkins, to approve the Consent Agenda as amended.

9.4 January 24, 2023 CITY COUNCIL MINUTES 6352
Consent Agenda (continued)
ACTION: The motion carried unanimously with the following vote.

AYES: Councilmembers Newsome, Brown, Watkins, Brunner, KalantariJohnson; Vice Mayor Golder; Mayor Keeley.

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

5. Resolution Authorizing the City to Continue Teleconferenced Public Meetings Pursuant to Assembly Bill 361 (CA)
Resolution No. NS-30,094 was adopted authorizing legislative bodies of the City of Santa Cruz to continue the use of teleconferenced meetings pursuant to Assembly Bill 361.

6. Resolution Extending Emergency Declaration in Connection with the December 2022 and January 2023 Winter Storms (CA/CM)
Resolution No. NS-30,095 was adopted extending by sixty days the Local Emergency Declaration in connection with the December 2022 and January 2023 winter storms.

7. City Manager Annual Merit Increase (CA)
Motion carried to approve an annual merit increase for the City Manager in the amount of 5%.

8. Minutes of the January 10, 2023 City Council Meeting (CC) Motion carried to approve as submitted.

9. Minutes of the January 17, 2023 City Council Special Meeting (CC) Motion carried to approve as submitted.

9.5 January 24, 2023 CITY COUNCIL MINUTES 6353
Consent Agenda (continued)

10. City Council Ad-Hoc Housing Element Subcommittee (CN) Motion carried to appoint Mayor Keeley and Councilmembers Kalantari-Johnson and Newsome to a new Ad-Hoc Housing Element Subcommittee that will serve during the preparation of the Housing Element update and any associated subsequent General Plan amendments and rezonings to review draft policies and proposals in advance of their presentation to the full Council.

11. Resolution Establishing the 2023 Security Deposit Interest Rate for Residential Rental Property (ED)
Resolution No. NS-30,096 was adopted establishing the 2023 interest rate for the residential security deposits at 0.01% and rescinding Resolution No. NS29,919.

12. Pacific Station North Affordable Housing Transit-oriented Development Project Ground Lease Authorization for 902, 912 and 920 Pacific Avenue and 333 and 423 Front Street (ED)
Resolution No. NS-30,097 was adopted authorizing the City Manager to enter into lease(s) and authorizing the Economic Development and Housing Director to execute any amendments or documents needed thereto of a non-substantive nature, in forms approved by the City Attorney, for real property located at 902, 912 and 920 Pacific Avenue and 333 and 423 Front Street (APNs 005-152- 30, -31, -32, -33 and -05) between the City of Santa Cruz, Santa Cruz Metropolitan Transit District and/or 902 Pacific Ave Investors, L.P., or its affiliate, for the previously approved mixed-use affordable housing project on the site.

13. Award Contract for Portable Toilet Rental and Services (FN) Motion carried to award a contract for the citywide purchases for on-call portable toilet rental and services to American Debris Box Service, Incorporated DBA American Portables (American Portables), Half Moon Bay, California, in the amount not to exceed $1.5 million over 5 years and to authorize the City Manager to execute an agreement in a form approved by the City Attorney with American Debris Box Service, Incorporated DBA American Portables for portable toilet rental and services.

9.6 January 24, 2023 CITY COUNCIL MINUTES 6354
Consent Agenda (continued)

14. Application Support for Information Technology Systems (IT) Motion carried to approve statement of work amendment with EPI-Use America, Inc. for application support of critical information technology systems, and authorize the City Manager to execute the contract amendment in a form approved by the City Attorney.

15. Schedule for General Plan Map Amendments for 111-119 Leonard Street (PL) Motion to accept the report regarding the schedule for the proposed General Plan Map amendments; and, indicate to staff that the Downtown Plan Expansion is the preferred option of the City Council without prejudging the recommendation from staff when this item returns to Council.

16. Children’s Fund Oversight Committee Bylaws (PR)
Motion carried to approve the Children’s Fund Oversight Committee bylaws and governing document.

17. 2023 Nonpoint Source - Clean Water Act section 319(h) Grant: Authorization for Application, Acceptance, and Appropriation of Grant Funds for Nonpoint Source Water Quality Improvements and Reduction in Homelessness Impacts in San Lorenzo River (PW/CM)
Resolution No. NS-30,098 was adopted authorizing the City Manager to apply for, accept, and appropriate funds from the 2023 Nonpoint Source - Clean Water Act section 319(h) Grant for improvements in the San Lorenzo River (pathogen) bacteria levels and reduction in homelessness impacts.

18. Award of Professional Services Agreement to Weck Laboratories for Laboratory Analytical Services (WT)
Motion carried authorizing the City Manager to execute an agreement with Weck Laboratories, Inc. (City of Industry, CA) for Laboratory Analytical Services in a form approved by the City Attorney and authorizing the Water Director to execute contract amendments within the approved budget.

End Consent Agenda

9.7 January 24, 2023 CITY COUNCIL MINUTES 6355
Consent Public Hearing
Mayor Keeley opened the public comment period. There were no speakers. Mayor Keeley closed the public comment period.

MOTION: Councilmember Watkins moved, seconded by Councilmember KalantariJohnson, to approve the Consent Public Hearing Agenda.

ACTION: The motion carried unanimously with the following vote.

AYES: Councilmembers Newsome, Brown, Watkins, Brunner, KalantariJohnson; Vice Mayor Golder; Mayor Keeley.

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

19. Extension of Urgency Ordinance Relating to Accessory Dwelling Units (ADUs), Junior ADUs, and Associated Changes to Permitting Required by State Law (PL) Motion carried to:
 Adopt urgency Ordinance No. 2023-01 to extend the term of the previously adopted Urgency Ordinance No. 2022-22 for a term of twelve months in accordance with the allowances in State law; and
 Direct staff to proceed with developing a regular ordinance that addresses the same State code changes.

General Business

20. Existing Building Decarbonization Roadmap (CM/PL)
Sustainability and Climate Action Manager T. Wise-West and Rupam Singla with TRC Companies gave a presentation and responded to Councilmember questions.

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

Unidentified person
Victor Gomez
Eric Grodberg
Carol Polhamus
Candace Brown
Robert Kibrick
Mayor Keeley closed the public comment period.

9.8 January 24, 2023 CITY COUNCIL MINUTES 6356
General Business (continued)

20. Existing Building Decarbonization Roadmap (CM/PL) (continued) MOTION: Councilmember Brown moved, seconded by Councilmember Watkins, to accept the existing building decarbonization roadmap presentation.

ACTION: The motion carried with the following vote.

AYES: Councilmembers Newsome, Brown, Watkins, Brunner,
Kalantari-Johnson; Mayor Keeley.

NOES: Vice Mayor Golder.

ABSENT: None.

DISQUALIFIED: None.

21. Appointments to City Commissions (CN)
Mayor Keeley spoke.

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

Eric Grodberg
Unidentified person
Mayor Keeley closed the public comment period.

MOTION: Councilmember Brunner moved, seconded by Councilmember Watkins, to:
 Approve the transition of at-large Council appointments for most commissions to a directly appointed system while allowing all current commissioners to complete their terms in accordance with the attached table; and
 Introduce an ordinance amending Santa Cruz Municipal Code Section

2.40.011 to reflect the recommended appointment process, with the following amendments:

9.9 January 24, 2023 CITY COUNCIL MINUTES 6357
General Business (continued)

21. Appointments to City Commissions (CN)
MOTION (continued):

Amend Section 2.40.011(b)(2) From:

The seats of commission appointees whose terms expire in January 2023, will be assigned to the mayor and districts 4 and 6 to the extent that three are up for appointment. If fewer than three seats are open, the mayor will be assigned the first seat and the other seat(s) will be assigned in numerical order, to the district 4 and/or 6 councilmembers.

To:

The seats of commission appointees whose terms expire in January 2023, will be assigned to the mayor and districts 4 and 6 on a rotating basis to the extent that three are up for appointment. If fewer than three seats are open, the first seat and the other seat(s) will be assigned on a rotating basis to the mayor and/or the district 4 and/or 6 councilmembers.

Section 2.40.011(b)(3) From:

The seats of commission appointees whose terms expire in January 2024 will be assigned to either district 4 or 6, if they do not already have a seat assigned to them. For those seats assigned to District 4 and/or 6, the councilmembers may nominate, if eligible, their representatives for threeyear terms so they these terms correspond with the term of the nominating council member. Any remaining seat or seats shall be appointed by motion of the City Council for one-year terms.

To:

The seats of commission appointees whose terms expire in January 2024 will then be assigned on a rotating basis to either the mayor and/or district 4 or 6, if they do not already have a seat assigned to them, who may nominate, if eligible, their representatives for three-year terms so they these terms correspond with the term of the nominating council member.

Any remaining seat or seats shall be appointed by motion of the City Council for one-year terms.

Section 2.40.011(b)(4) From:

In January 2025, the seats on commissions with members whose terms are expiring as well as any seats with members appointed for a one-year term will be assigned to districts in numerical order.

9.10 January 24, 2023 CITY COUNCIL MINUTES 6358
General Business (continued)

21. Appointments to City Commissions (CN) (continued)
MOTION (continued):

To:

In January 2025, the seats on commissions with members whose terms are expiring as well as any seats with members appointed for a one-year term will be assigned to districts on a rotating basis.

Section 2.40.011(b)(5) From:

Members of commissions whose terms do not expire until January 2026 shall be assigned to the remaining districts in numerical order for nomination for three-year terms expiring in January 2029.

To:

Members of commissions whose terms do not expire until January 2026 shall be randomly assigned to the remaining districts on a rotating basis for nomination for three-year terms expiring in January 2029.

Section 2.40.011(b)(6) From:

If a seat occupied by a board or commission member originally appointed by motion becomes vacant, their replacement shall be filled by nomination of councilmembers elected by district in numerical order if they do not have a seat assigned to them, for a term expiring with the nominating councilmember’s term. If all councilmembers elected by district have a seat assigned to them, then the vacancy shall be filled by motion for a term ending January 31st of the next odd-numbered year following the effective date of the vacancy.

To:

If a seat occupied by a board or commission member originally appointed by motion becomes vacant, their replacement shall be filled by nomination of the councilmember(s) elected by district if they do not have a seat assigned to them, for a term expiring with the nominating councilmember’s term. If all councilmembers elected by district have a seat assigned to them, then the vacancy shall be filled by motion for a term ending January 31st of the next odd-numbered year following the effective date of the vacancy.

9.11 January 24, 2023 CITY COUNCIL MINUTES 6359
General Business (continued)

21. Appointments to City Commissions (CN) (continued)
MOTION (continued):

Add as Section 2.40.011(f) and renumber subsequent section:

In considering their nominations and appointments to boards and commissions, councilmembers are strongly encouraged to support diversity, equity and inclusion of a broad range of community interests and experiences among appointees in accordance with the City’s adopted Health in All Policies (HiAP) ordinance and adopted workplan, including diversity in geography (council district), age, income and education level, residence status (owner, renter or unhoused), race, ethnicity, gender, and gender identity.

ACTION: The motion carried unanimously with the following vote.

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

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

9.12 January 24, 2023 CITY COUNCIL MINUTES 6360
Advisory Body Appointments

22. Arts Commission
Mayor Keeley nominated Isabel Contreras.

Councilmember Newsome nominated Valeria Miranda.

Councilmember Golder nominated Nikki Patterson.

Councilmember Brunner nominated Sean McGowan.

By consensus, Isabel Contreras, Valeria Miranda, and Nikki Patterson were appointed with terms ending January 31, 2027, and Sean McGowan was reappointed with a term ending January 31, 2025.

23. Board of Building and Fire Appeals
Councilmember Brunner nominated Christian Nielsen.

Councilmember Kalantari-Johnson nominated Monica Ratliff.

Vice Mayor Golder nominated Thomas Kern.

Councilmember Watkins nominated Patrick Splitt.

Councilmember Brown nominated Rory Howland.

Councilmember Newsome nominated Scott Rogers.

By consensus, Christian Nielsen, Rory Howland, and Scott Rogers were appointed and Monica Ratliff, Thomas Kern, and Patrick Splitt were reappointed to the Board of Building and Fire Appeals, with terms ending January 31, 2027.

9.13 January 24, 2023 CITY COUNCIL MINUTES 6361
Advisory Body Appointments (continued)

24. Commission for the Prevention of Violence Against Women Councilmember Newsome nominated Karen Madura.

Mayor Keeley nominated Ilene Feinman.

Vice Mayor Golder requested to defer her nomination to the meeting of February 14, 2023.

By consensus, Karen Madura was reappointed, and Ilene Feinman was appointed to the Commission for the Prevention of Violence Against Women, with terms ending January 31, 2027.

25. Downtown Commission
Vice Mayor Golder nominated Peggy Dolgenos.

Councilmember Newsome nominated Cynthia Mathews.

By consensus, Peggy Dolgenos and Cynthia Mathews were appointed to the Downtown Commission, with terms ending January 31, 2027.

26. Historic Preservation Commission
Councilmember Newsome nominated Jessie Durant.

By consensus, Jessie Durant was appointed to the Historic Preservation Commission, with a term ending January 31, 2027.

27. Parks and Recreation Commission
Councilmember Newsome nominated Nikolas Strong-Cvetich.

Mayor Keeley nominated Bradley Angell.

By consensus, Nikolas Strong-Cvetich was appointed and Bradley Angell was reappointed to the Parks and Recreation Commission, with terms ending January 31, 2027.

9.14 January 24, 2023 CITY COUNCIL MINUTES 6362
Advisory Body Appointments (continued)

28. Planning Commission
Vice Mayor Golder nominated Timerie Gordon.

Mayor Keeley nominated Michael Polhamus.

By consensus, Timerie Gordon and Michael Polhamus were appointed to the Planning Commission, with terms ending January 31, 2027.

29. Sister Cities Committee
Councilmember Brunner nominated Isabelle Tuncer.

Vice Mayor Golder nominated Linda Snook.

Councilmember Brown nominated Anita Wood.

Isabelle Tuncer and Anita Wood were reappointed, and Linda Snook was appointed to the Sister Cities Committee, with terms ending January 31, 2027.

30. Transportation and Public Works Commission
Mayor Keeley nominated Susan Gilchrist.

By consensus, Susan Gilchrist was appointed to the Transportation and Public Works Commission, with a term ending January 31, 2027.

31. Water Commission
Vice Mayor Golder nominated Maggie Duncan-Merrell.

Mayor Keeley nominated Sierra Ryan.

By consensus, Maggie Duncan-Merrell was appointed, and Sierra Ryan was reappointed to the Water Commission, with terms ending January 31, 2027.

9.15 January 24, 2023 CITY COUNCIL MINUTES 6363
Oral Communications Announcement - The Mayor provided a brief announcement about Oral Communications.

Oral Communications
At 4:27 p.m. Mayor Keeley opened Oral Communications for members of the public who wished to speak regarding items not listed on the City Council agenda.

Unidentified person spoke regarding the way the Mayor spoke to a member of the public in a previous meeting.

Unidentified person spoke regarding heritage trees and the Downtown Library Project.

Jackie Griffith spoke regarding the amount of new construction with regard to water supply and the rise of sea level.

At 4:34 p.m. Mayor Keeley closed Oral Communications.

Adjournment - The City Council adjourned at 4:35 p.m.

Respectfully Submitted:

Julia Wood, Deputy City Clerk Administrator
Attest:

Bonnie Bush, City Clerk Administrator
Approved:

Fred Keeley, Mayor

9.16 City Council

AGENDA REPORT
DATE: 02/01/2023
AGENDA OF: 02/14/2023
DEPARTMENT: City Council
SUBJECT: Changes to the Councilmembers’ Handbook (CN)
RECOMMENDATION: Resolution amending the Councilmembers’ Handbook on page 7 to update the Order of Business section, page 9, paragraph 3, regarding decorum in Council meetings, and on page 23 at “Remarks of Councilmembers Entered in Minutes.” BACKGROUND: The proposed resolution is designed to update the Councilmembers’ Handbook on the issues of: (1) the Order of Business, (2) Council meeting disruptions, and (3) the process by which Councilmember remarks are entered into meeting minutes.

1. Order of Business
Removal of the Pledge of Allegiance, the Introduction of New Employees, and Council Memberships in City Groups and Outside Agencies.

2. Council Meeting Disruptions
Current Council policy on Council meeting disruptions is reflected in the Councilmember Handbook, which states:
“3. While the Council is in session, all persons shall preserve order and decorum.

Any person disrupting the Council meeting shall be barred by the presiding officer from further attendance at said meeting unless permission for continued attendance is granted by a majority vote of the Council. Any member of the public who fails to comply with the rules of order and decorum after being warned by the presiding officer, thereby requiring the presiding officer to interrupt the meeting once again to restore order, shall be considered to be disrupting the Council meeting.” Councilmember Handbook, page 9, paragraph 3.

The policy above is not quite in full alignment with the new Government Code § 54957.95, which formally allows presiding officers of legislative bodies to order the removal of individuals who disrupt a meeting, refuse to comply with meeting rules, engage in violence, or threaten to use violence.

10.1 Nor is the Councilmember Handbook reflective of Government Code § 54957.9, which contains provisions that allow for the removal of a group or groups of persons who willfully interrupt a meeting, so as to render the orderly conduct of such meeting infeasible.

3. Entering Councilmember Remarks into the Minutes

“A Councilmember may request, through the presiding officer, the privilege of having an abstract of that member’s statements on any subject under consideration by the Council entered in the minutes. If the Council consents, such statements shall be entered in the minutes.”
Recently, this process has not been strictly followed; Councilmembers have been able to have extra comments “for the record” added into the minutes without the explicit consent of the Council. Further, the Council’s current process of adding comments “for the record” has taken up valuable meeting time and caused some level of confusion when votes are taken.

DISCUSSION:

Council Meeting Disruptions
The proposed resolution would amend the Councilmembers’ Handbook (at page 9, paragraph 3) to align the Councilmembers’ Handbook with applicable state law, specifically Government Code sections 54957.95 and 54957.9, and has been drafted by the City Attorney’s Office:
“3. While the Council is in session, all persons shall preserve order and decorum.

Any person who causes a disruption at the Council meeting shall be removed from the meeting and barred from further attendance at said meeting by the presiding officer unless permission for continued attendance is granted by a majority vote of the Council. Disruption is defined as behavior that actually disrupts, disturbs, impedes, or renders infeasible the orderly conduct of the meeting. An individual may cause a disruption by failing to comply with reasonable meeting rules, using force or threatening to use force, or causing other disruptions.

Prior to removal, the presiding officer shall warn the disruptive individual that continuing the disruptive behavior may result in their removal. If the individual is warned and then fails to cease their disruptive behavior, the presiding officer may order that the individual be removed. A warning is not required prior to removal if the individual is engaging in violent behavior or is threatening to use violence.

In the event that any meeting is willfully interrupted by a group or groups of persons so as to render the orderly conduct of such meeting infeasible and order cannot be restored by the removal of individuals who are willfully interrupting the meeting, the presiding officer or the Council may order the meeting room cleared and continue in session. Only matters appearing on the agenda may be considered in such a session.

Representatives of the press or other news media, except those participating in the disturbance, shall be allowed to attend any session held pursuant to this section and the Council may, but shall not be required to, readmit an individual or individuals not responsible for willfully disturbing the orderly conduct of the meeting. (Gov.

Code § 54957.9.)”

10.2 Entering Councilmember Remarks into the Minutes
The proposed resolution would amend the Councilmembers’ Handbook (on page 23 at “Remarks of Councilmembers Entered in Minutes”) so that it contains the following language:
“In response to a roll call vote, Councilmembers shall respond with “yes”, “no”, or “I am disqualified.” If a Councilmember wishes to have an abstract of their statements on any subject under consideration by the Council entered in the minutes, they may submit those statements in writing to the City Clerk Administrator within 48-hours after the relevant Council meeting ends, and those statements shall be included in the minutes.”
FISCAL IMPACT. None.

Prepared by:

Cassie Bronson
Assistant City Attorney
(legal and drafting assistance)
Submitted by:

Fred Keeley
Mayor
ATTACHMENTS:
1) RESOLUTION, CLEAN
2) RESOLUTION, TRACK CHANGES COPY

10.3 RESOLUTION NO. NS-XX,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ AMENDING THE COUNCILMEMBERS’ HANDBOOK ON PAGE 7 TO UPDATE THE ORDER OF BUSINESS SECTION, PAGE 9, PARAGRAPH 3, REGARDING DECORUM IN COUNCIL MEETINGS, AND ON PAGE 23 AT “REMARKS OF COUNCILMEMBERS ENTERED IN MINUTES”
WHEREAS, effective January 1, 2023, California Government Code § 54957.95 formally allows presiding officers of legislative bodies to order the removal of individuals who disrupt a meeting, refuse to comply with meeting rules, engage in violence, or threaten to use violence. In most instances, the presiding officer must warn the individual before removal. If the individual fails to stop their behavior after the warning, then the presiding officer can direct that the disruptive individual be removed. If the disruptive individual uses force or threats of force, then the presiding officer may, without providing a prior warning, direct that the individual be removed. The Council wishes to align the Councilmembers’ Handbook (on page 9, paragraph 3) with this Brown Act provision; and
WHEREAS, Government Code § 54957.9 contains provisions that allow for the removal of a group or groups of persons who willfully interrupt a meeting, so as to render the orderly conduct of such meeting infeasible. The Council wishes to align the Councilmembers’ Handbook (on page 9, paragraph 3) with this provision of the Brown Act; and WHEREAS, the Council wishes to change the existing process by which remarks of Councilmembers are entered into the minutes.

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

1. The Order of Business section shall be amended as follows:

Afternoon Session (start time determined by Mayor):

Call to Order
Roll Call
Administrative Business (Presentations; Presiding Officer’s Announcements; Statements of Disqualification; Additions and Deletions; Oral Communications Announcement; City Attorney Report on Closed Session; City Manager Report)
Council Meeting Calendar
Consent Agenda
Council Business (Public Hearings and General Business) Oral Communications (could occur at the beginning of the evening session, if there is one.)
Adjournment (if no Evening Session is scheduled)
Recess to Evening Session (if scheduled)

10.4 RESOLUTION NO. NS-XX,XXX
2 Evening Session (start time determined by Mayor):

Call to Order
Roll Call
Oral Communications (if there is an Evening Session)
Administrative Business (Presentations)
Council Business (Public Hearings and General Business) Adjournment

2. The Councilmembers’ Handbook on page 9, paragraph 3 shall be amended as follows:
“3. While the Council is in session, all persons shall preserve order and decorum. Any person who causes a disruption at the Council meeting shall be removed from the meeting and barred from further attendance at said meeting by the presiding officer unless permission for continued attendance is granted by a majority vote of the Council. Disruption is defined as behavior that actually disrupts, disturbs, impedes, or renders infeasible the orderly conduct of the meeting. An individual may cause a disruption by failing to comply with reasonable meeting rules, using force or threatening to use force, or causing other disruptions.

Prior to removal, the presiding officer shall warn the disruptive individual that continuing the disruptive behavior may result in their removal. If the individual is warned and then fails to cease their disruptive behavior, the presiding officer may order that the individual be removed. A warning is not required prior to removal if the individual is engaging in violent behavior or is threatening to use violence.

In the event that any meeting is willfully interrupted by a group or groups of persons so as to render the orderly conduct of such meeting infeasible and order cannot be restored by the removal of individuals who are willfully interrupting the meeting, the presiding officer or the Council may order the meeting room cleared and continue in session. Only matters appearing on the agenda may be considered in such a session.

Representatives of the press or other news media, except those participating in the disturbance, shall be allowed to attend any session held pursuant to this section and the Council may, but shall not be required to, readmit an individual or individuals not responsible for willfully disturbing the orderly conduct of the meeting. (Gov.

Code § 54957.9.)”

10.5 RESOLUTION NO. NS-XX,XXX
3 3. The Councilmembers’ Handbook on page 23 at “Remarks of Councilmembers Entered in Minutes” shall be amended as follows:
“Remarks of Councilmembers Entered in Minutes
In response to a roll call vote, Councilmembers shall respond with “yes”, “no”, or “I am disqualified.” If a Councilmember wishes to have an abstract of their statements on any subject under consideration by the Council entered in the minutes, they may submit those statements in writing to the City Clerk Administrator within 48-hours after the relevant Council meeting ends, and those statements shall be included in the minutes.”
PASSED AND ADOPTED this 14th day of February, 2023 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator

10.6 RESOLUTION NO. NS-XX,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ AMENDING THE COUNCILMEMBERS’ HANDBOOK ON PAGE 7 TO UPDATE THE ORDER OF BUSINESS SECTION, PAGE 9, PARAGRAPH 3, REGARDING DECORUM IN COUNCIL MEETINGS, AND ON PAGE 23 AT “REMARKS OF COUNCILMEMBERS ENTERED IN MINUTES”
WHEREAS, effective January 1, 2023, California Government Code § 54957.95 formally allows presiding officers of legislative bodies to order the removal of individuals who disrupt a meeting, refuse to comply with meeting rules, engage in violence, or threaten to use violence. In most instances, the presiding officer must warn the individual before removal. If the individual fails to stop their behavior after the warning, then the presiding officer can direct that the disruptive individual be removed. If the disruptive individual uses force or threats of force, then the presiding officer may, without providing a prior warning, direct that the individual be removed. The Council wishes to align the Councilmembers’ Handbook (on page 9, paragraph 3) with this Brown Act provision; and
WHEREAS, Government Code § 54957.9 contains provisions that allow for the removal of a group or groups of persons who willfully interrupt a meeting, so as to render the orderly conduct of such meeting infeasible. The Council wishes to align the Councilmembers’ Handbook (on page 9, paragraph 3) with this provision of the Brown Act; and WHEREAS, the Council wishes to change the existing process by which remarks of Councilmembers are entered into the minutes.

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

1. The Order of Business section shall be amended as follows:

Afternoon Session (start time determined by Mayor):

Call to Order
Roll Call
Pledge of Allegiance
Administrative Business (Introduction of New Employees; Presentations; Presiding Officer’s Announcements; Statements of Disqualification; Additions and Deletions; Oral Communications Announcement; City Attorney Report on Closed Session; City Manager Report) Council Meeting Calendar
Consent Agenda
Council Business (Public Hearings and General Business) Administrative Business (Council Meeting Calendar; Council Memberships in City Groups and Outside Agencies;)
Oral Communications (could occur at the beginning of the evening session, if there is one. Timing will be specified on each agenda)

10.7 RESOLUTION NO. NS-XX,XXX
2 Adjournment (if no Evening Session is scheduled)
Recess to Evening Session (if scheduled)
Evening Session (start time determined by Mayor):

Call to Order
Roll Call
Oral Communications (if there is an Evening Session)
Administrative Business (Presentations)
Council Business (Public Hearings and General Business) Adjournment

2. The Councilmembers’ Handbook on page 9, paragraph 3 shall be amended as follows:
“3. While the Council is in session, all persons shall preserve order and decorum. Any person who causes a disruption at disrupting the Council meeting shall be barred removed from the meeting and barred from further attendance at said meeting by the presiding officer from further attendance at said meeting unless permission for continued attendance is granted by a majority vote of the Council.

Disruption is defined as behavior that actually disrupts, disturbs, impedes, or renders infeasible the orderly conduct of the meeting. An individual may cause a disruption by failing to comply with reasonable meeting rules, using force or threatening to use force, or causing other disruptions.

Prior to removal, the presiding officer shall warn the disruptive individual that continuing the disruptive behavior may result in their removal. If the individual is warned and then fails to cease their disruptive behavior, the presiding officer may order that the individual be removed. A warning is not required prior to removal if the individual is engaging in violent behavior or is threatening to use violence. Any member of the public who fails to comply with the rules of order and decorum after being warned by the presiding officer, thereby requiring the presiding officer to interrupt the meeting once again to restore order, shall be considered to be disrupting the Council meeting.

In the event that any meeting is willfully interrupted by a group or groups of persons so as to render the orderly conduct of such meeting infeasible and order cannot be restored by the removal of individuals who are willfully interrupting the meeting, the presiding officer or the Council may order the meeting room cleared and continue in session. Only matters appearing on the agenda may be considered in such a session.

Representatives of the press or other news media, except those participating in the disturbance, shall be allowed to attend any session held pursuant to this section and the Council may, but shall not be required to, readmit an individual or individuals not responsible for willfully disturbing the orderly conduct of the meeting. (Gov.

Code § 54957.9.)”

10.8 RESOLUTION NO. NS-XX,XXX
3 3. The Councilmembers’ Handbook on page 23 at “Remarks of Councilmembers Entered in Minutes” shall be amended as follows:
“Remarks of Councilmembers Entered in Minutes
A Councilmember may request, through the presiding officer, the privilege of having an abstract of that member’s statements on any subject under consideration by the Council entered in the minutes. If the Council consents, such statements shall be entered in the minutes.

In response to a roll call vote, Councilmembers shall respond with “yes”, “no”, or “I am disqualified.” If a Councilmember wishes to have an abstract of their statements on any subject under consideration by the Council entered in the minutes, they may submit those statements in writing to the City Clerk Administrator within 48-hours after the relevant Council meeting ends, and those statements shall be included in the minutes.”
PASSED AND ADOPTED this 14th day of February, 2023 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator

10.9 City Council

AGENDA REPORT
DATE: 02/02/2023
AGENDA OF: 02/14/2023
DEPARTMENT: Economic Development and Housing
SUBJECT: Contract for Tannery Dance and Performance Building Architectural Services (ED)
RECOMMENDATION: Motion to award the contract for the Tannery Dance and Performance Building architectural services in an amount of $469,560 to 19six Architects and authorize the City Manager to execute an agreement with 19six Architects in a form to be approved by the City Attorney.

BACKGROUND: The Tannery Arts Center opened in 2009 as a sustainable, accessible, and vibrant home for the arts in Santa Cruz County. The campus currently includes the Colligan Theater, the Radius Gallery, the Tannery World Dance and Cultural Center, the historic Kron House (offices of the Arts Council of Santa Cruz County), Tannery Lofts (100 units of live/work affordable housing), working art studios, and a café.

In March 2022 the City received a grant in the amount of $3,960,000 from the U.S. Department of Commerce Economic Development Administration (EDA) under the American Rescue Plan Act (ARP Act) to assist in the design and construction of the Tannery Dance and Performance Building. The ARP Act was passed by Congress and signed into law on March 11, 2021. The $1.9 trillion ARP Act provides $3 billion in funding to EDA and its Economic Adjustment Assistance Program to assist communities impacted by COVID-19 pandemic. Arts activities in Santa Cruz were especially hit hard due the closure of venues during the spring and summer of 2020, and the proposed Tannery Dance and Performance Building is an important step in helping the economic recovery of the local dance and arts community. The grant to the City was the first to be awarded under the ARP Act.

The Tannery Dance and Performance Building will be located on an existing 6,678 sq.ft. construction-ready lot between the Colligan Theater and the Tannery Lofts. Access roads and utility services are in place adjacent to the site. The building will be steel-framed single story with approximately 5,800 sq.ft. of space. The interior will consist of two dance studios, restrooms, an office, and an entrance lobby. This building will complete the proposed buildings envisioned in the Tannery Arts Center Master Plan.

DISCUSSION: In November 2022, staff issued a Request for Proposals (RFP) for architectural services for the Tannery Dance and Performance Building and received three proposals. As required by the qualifications based selection model set forth in California Government Code Section 4526, procurement of architectural services by state and local agencies must be on the

11.1 basis of demonstrated competence and professional qualifications, with fees to be negotiated later with the most highly qualified firm.

All proposals were evaluated based on the criterion in the RFP and the qualifications presented by the architects, without regard to fees. The most qualified proposal was submitted by 19six Architects, a local architectural planning and design firm with offices in the Sash Mill and a client roster ranging from cities and counties to school districts, colleges and universities.

Staff negotitated fees with 19six Architects to perform the required services which include design development drawings, construction drawings for permits, specifications and bid documents, and construction management assistance. A fee in the amount of $469,560 was determined to be mutually acceptable by both parties.

The project is consistent with the Health in All Policies pillars of equity, public health, and sustainability. The proposed Dance and Performance Building provides an important interface between health activities and business development. The building will provide an affordable space for community activities and development of micro businesses whose focus is on artistic presentation of physical activity.

FISCAL IMPACT: Funds are available and budgeted in the Economic Development Department’s capital investment program (CIP) project (Tannery Dance & Performance Building (c512204). The EDA grant of $3,960,000 will be leveraged by the commitment of $990,000 of former Redevelopment Agency Tax Allocation Bond proceeds.

Prepared By:

Norm Daly
Development Manager
Submitted By:

Bonnie Lipscomb
Director of Economic
Development and Housing
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. TANNERY DANCE AND PERFORMANCE BUILDING RENDING AND LOCATION MAP.DOCX

11.2 Preliminary concept rendering of the Dance and Performance Building Location of the Dance and Performance Building on the Tannery Arts Center campus.

11.3 City Council

AGENDA REPORT
DATE: 02/02/2023
AGENDA OF: 02/14/2023
DEPARTMENT: Economic Development and Housing
SUBJECT: Resolution Authorizing Application for the California Prohousing Designation Program (ED)
RECOMMENDATION: Resolution authorizing the City of Santa Cruz to apply for the Prohousing Designation Program from the California Housing and Community Development Department and authorizing the City Manager or the Director of Economic Development and Housing to execute and deliver the application and any related documents if the application is approved.

BACKGROUND: In 2019, the California Legislature passed Assembly Bill 101 which established the Prohousing Designation Program (PDP) to be administered by the State Department of Housing and Community Development (HCD). The PDP provides incentives for jurisdictions that follow existing state housing laws, housing element requirements, and enact local policies that are “prohousing” in addition to existing statutory requirements.

Jurisdictions that are awarded a prohousing designation receive priority for certain state housing and infrastructure grants, such as the Affordable Housing and Sustainable Communities (AHSC) program, the Infill Infrastructure Grant (IIG) program, the Transformative Climate Communities (TCC) program, and the Transit and Intercity Rail Capital Program (TIRCP) . Such funds are critical for local development projects and affordable housing projects which often necessitate multiple sources of funds to make a project viable. HCD also intends to expand benefits for prohousing designated jurisdictions in the future.

DISCUSSION: A successful PDP application will score a minimum of 30 points out of a possible 69 in four different categories: 1) Favorable Zoning and Land Use, 2) Acceleration of Housing Production Timelines, 3) Reduction of Construction and Development Costs, and 4) Providing Financial Subsidies. Based on staff’s preliminary self-scoring evaluation, the City is likely to qualify for approval under the PDP.

Upon submission of the application, HCD has sixty (60) calendar days to review the application and provide its final determination. If approved, the HCD will send an official letter formalizing the prohousing designation.

Staff recommends that the City Council adopt a Resolution authorizing the City to apply for the PDP and further authorizing the City Manager or Economic Development and Housing Director

12.1 to execute and deliver the application and any related documents required if the application is approved.

Health in All Policies (HiAP): In terms of assessing this item with respect to the three pillars of Health in All Policies, this action has a direct nexus with all three; public health, equity and sustainability. A prohousing designation will allow the City to apply for and potentially be awarded more state funds not only for housing creation, but also for transportation and climate impacts. Increased funding for affordable housing creation will affect public health positively by directly fulfilling the “Stable, Affordable Housing & Shelter” Collective of Results and Evidence-based (CORE) condition. Equity will be positively impacted with the creation of more affordable housing units for all members of the community. Sustainability will also be positively impacted with the access to State funds that require sustainable components in housing projects.

FISCAL IMPACT: Staff does not anticipate this action will have any fiscal impact to the General Fund. Participation in the PDP will have a positive effect on the competitiveness of future applications for several funding programs including AHSC, IIG, TCC, and TIRCP programs.

Prepared By:

Jessica Mellor
Principal Management
Analyst
Jessica de Wit
Housing and Community
Development Manager
Submitted By:

Bonnie Lipscomb
Director of Economic
Development and Housing
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION PROHOUSING DESIGNATION.DOCX

12.2 RESOLUTION NO. NSA RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ

AUTHORIZING APPLICATION TO AND PARTICIPATION IN THE PROHOUSING

DESIGNATION PROGRAM
WHEREAS, Government Code section 65589.9 established the Prohousing Designation Program (“PDP” or “Program”), which creates incentives for jurisdictions that are compliant with state housing element requirements and that have enacted Prohousing local policies; and WHEREAS, such jurisdictions will be designated Prohousing, and, as such, will receive additional points or other preference during the scoring of their competitive applications for specified housing and infrastructure funding; and
WHEREAS, the Department of Housing and Community Development (“Department”) has adopted emergency regulations (Cal. Code Regs., tit. 25, § 6600 et seq.) to implement the Program (“Program Regulations”), as authorized by Government Code section 65589.9, subdivision (d); and WHEREAS, the City of Santa Cruz (“Applicant”) desires to submit an application for a Prohousing Designation (“Application”).

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

1. Applicant is hereby authorized and directed to submit an Application to the Department.

2. Applicant acknowledges and confirms that it is currently in compliance with applicable state housing law.

3. Applicant acknowledges and confirms that it will continue to comply with applicable housing laws and to refrain from enacting laws, developing policies, or taking other local governmental actions that may or do inhibit or constrain housing production. Examples of such local laws, policies, and action include moratoriums on development; local voter approval requirements related to housing production; downzoning; and unduly restrictive or onerous zoning regulations, development standards, or permit procedures. Applicant further acknowledges and confirms that it commits itself to affirmatively furthering fair housing pursuant to Government Code section 8899.50.

4. If the Application is approved, Applicant is hereby authorized and directed to enter into, execute, and deliver all documents required or deemed necessary or appropriate to participate in the Program, and all amendments thereto (the “Program Documents”).

5. Applicant acknowledges and agrees that it shall be subject to the Application; the terms and conditions specified in the Program Documents; the Program Regulations; and any and all other applicable law.

6. The City Manager or Economic Development and Housing Director is authorized to execute and deliver the Application and the Program Documents on behalf of the Applicant for participation in the Program.

12.3 PASSED AND ADOPTED this 14th day of February, 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator
The undersigned, Bonnie Bush, City Clerk Administrator of Applicant, does hereby attest and certify that the foregoing is a true and full copy of a resolution of the Applicant’s governing body adopted at a duly convened meeting on the date above-mentioned, and that the resolution has not been altered, amended, or repealed.

SIGNATURE: _____________________ DATE: _____________________ NAME: Bonnie Bush TITLE: City Clerk Administrator

12.4 City Council

AGENDA REPORT
DATE: 02/02/2023
AGENDA OF: 02/14/2023
DEPARTMENT: Economic Development and Housing
SUBJECT: 119 Coral St – Housing Matters Loan Consolidation and Extension (ED) RECOMMENDATION:
1) Authorize the City Manager to execute any and all loan documents necessary, in a form approved by the City Attorney, to consolidate and extend the terms of existing Red Cross and HOME funded loans in the amount of $571,533 to Housing Matters for the property located at 119 Coral St for 55 years with 1.5% residual receipts interest; and 2) Allow Housing Matters to repay an existing General Fund loan of approximately $12,805 in principal with a reduced interest rate of 3%, contingent upon payment received to the City prior to the execution of the loan documents.

BACKGROUND: In the fall of 1997, City Council approved a Red Cross loan in the amount of $183,533 to Housing Matters, formerly Citizen’s Committee for the Homeless, for the construction of a 40-bedroom transitional housing complex known as Page Smith Housing on the Coral Street Campus. City Council also approved an additional HOME Investment Partnerships Program (HOME) loan in the amount of $660,000 between 1996 and 1998 to help fund the project. In 1995, City Council approved Community Development Block Grant (CDBG) funding in the amount of $20,000. Both the Red Cross and HOME funded loans were set at 0% interest while the CDBG funding had terms of 3% simple interest. Lastly, a General Fund fee deferral loan of $12,805 with 6.8% simple interest was entered into on January 9, 1995. Housing Matters owns the property and is a non-profit 501(c)(3) organization.

After 20 years of complying with the affordability agreement, $272,000 of the HOME loan converted to a grant on October 29, 2017. City Council also approved forgiveness of the CDBG principal and interest on October 10, 2000. The remaining loans, which have been due for approximately 6-8 years, have principal of $584,338 and comprise $183,533 of Red Cross Funds, $388,000 of HOME funds and $12,805 of General Funds. Additionally, the General Fund fee deferral has accrued approximately $24,000 in interest as of February 2023.

Housing Matters is now working with MidPen Housing, a non-profit developer, as their project manager, to construct Harvey West Studios (HWS) at the Page Smith Housing site. HWS will replace the original 40-bedroom transitional housing complex with 121 studios at 20-50% Area Median Income (AMI). The development will be a 4-story new construction with ground level

13.1 community amenities. See the attachment “Harvey West Studios Fact Sheet” for more information.

The HWS project has secured most of the needed funding, with the majority (over $34 million) to come from State Housing and Community Development (State HCD) with 55-year loans and residual receipts terms. Residual receipts loans allow the borrower to only make payments after construction completion, tenant occupancy, and all expenses are covered for each fiscal year.

Payment is made only from any remaining profit to the loan providers; as such, there is usually a few years delay before payments can be made and payments are not guaranteed from year to year. This is often also referred to as “soft debt.” The current project schedule anticipates loan closing in the spring of 2023 with construction completion in fall 2024 and tenant occupancy in early 2025.

DISCUSSION: Housing Matters requested to consolidate and extend the existing Red Cross and HOME loans to come due concurrently with the new State HCD loans as 55-year residual receipts loans. Housing Matters also requested to pay off the existing General Fund fee deferral with a reduced interest rate.

Staff recommends approving the consolidation and extension of the Red Cross and HOME loans for a 55-year period, with residual receipts payments and 1.5% interest rate, which will begin to accrue at the loan closing for the project. Since the City has previously forgiven the CDBG principal and interest on this loan, converted $272,000 of HOME funding to a grant and set the loan terms in the past at 0% interest, the current leverage in the property is many factors below the original investment and has not kept up with inflation or rising property value. Leverage in the property in the form of loans allows the City to ensure continuing affordability in perpetuity.

Due to the deep affordability levels in this project, including 47 units at 20% AMI and 38 units at 30% AMI, staff recommends the reduced interest rate of 1.5% rather than the usual recommendation of 3% interest for similar affordable housing projects.

Staff also recommends allowing repayment of the General Fund fee deferral at the reduced interest rate from 6.8% to 3%, rather than have the principal and interest roll into the new consolidated loan. This allows Housing Matters to appreciate a savings in interest, approximately $14,000, which was previously set at a 6.8% and will also result in the General Fund being repaid earlier than it would if the loan was to be consolidated in the 55-year residual receipts loan.

Health in All Policies (HiAP)
The recommendation is consistent with the Health in All Policies pillars of equity, public health, and sustainability in that the proposed motions will aid in the financial feasibility of this project which will support creation of Permanent Supportive Housing in the form of 121 studios with onsite case management available for members of the unhoused population of Santa Cruz.

FISCAL IMPACT: Deferment of anticipated recapture of the Red Cross and HOME loans in the amount of $183,533 and $388,000 respectively, with 1.5% residual receipts interest, when repaid, will be available for reuse and reprogramming for Red Cros and HOME eligible programming. The General Fund will also recapture approximately $24,000 (principal and interest) with the early repayment of the deferred fees.

13.2 Prepared By:

Tiffany Lake
Development Manager
Submitted By:

Bonnie Lipscomb
Director of Economic
Development and Housing
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. HARVEY WEST STUDIOS FACT SHEET.PDF

13.3 FACT SHEET
Harvey West Studios
119 Coral Street, Santa Cruz, CA 95060
Introduction:

Units: 121 studios
Population: Special needs households earning 20% AMI up to 50% AMI Parcel Size: 0.77 acres
Zoning: Community Commercial, approved via Special-use Permit Development Type: New construction
Construction: 4-story building of factory-built modular wood construction over one level of site-built concrete compromising a total of 121 units of affordable supportive housing. The ground level consists of community and building amenities as well as residential staff and services offices.

Project Site:

The parcel (APN 008-171-31) was sold by the City of Santa Cruz to Citizens Committee for the Homeless, Inc. in June 1991. In 2000, Citizens Committee for the Homeless, Inc. changed its name to Homeless Services Center, and in 2014, the entity changed their name from Homeless Services Center to Housing Matters.

The Harvey West studios site is accessed via pedestrian and vehicular easements which cross Cityowned property. That City-owned property is currently leased to Housing Matters and contains the main shelter campus with the family and individual shelters as well as services and a medical clinic. Currently, there are five modular buildings on site, which will be relocated at the start of construction.

Project Schedule
Receive MHP Award from HCD January 2023
Secure Building Permits January 2023
Construction Financing Closing Q2 2023
Start Construction Q2 2023
Complete Construction Q3 2024

13.4 100% Occupancy Q1 2025
Conversion Q2 202

Residents Served / Demographics / Tenant Subsidies:

Harvey West Studios will serve households earning $21,780, which is 20% of AMI for a 1-person household in Santa Cruz County, up to $54,450, which is 50% of AMI for a 1-person household in Santa Cruz County. Our underwriting is based on 2022 TCAC rents to ensure the highest AMI units achieve at least a 20% discount to market, and also to ensure rents are truly affordable to low- and extremely lowincome households in the current fast-escalating AMI context.

Special populations will include 59 HCD No Place Like Home (NPLH) Program households (homeless persons with a mental illness) as well as 15 HUD-VASH units. Housing Matters is partnering with the Santa Cruz County Housing Authority to provide project based rental subsidies (VASH, Shelter plus Care, DMV, Mainstream) for 60 units, and with Santa Cruz County Health Services Agency’s Behavior Health Services division for on-site case management and wrap around services for the 59 NPLH units.

Housing Matters services will be offered to all households, regardless of income level. The total resident services budget for Housing Matters is approximately $367,728. County services are funded outside of the project budget through a separate component of the No Place Like Home program Amenities & Resident Services:

Amenities include property management and services offices, a community room with a kitchen and a laundry room. There will be secure bicycle parking available for residents. Both the County of Santa Cruz Behavioral Health Department and Housing Matters will provide robust services staffing for the project.

Neighborhood Amenities:

Harvey West Studios is located on the south-end of the existing Housing Matters campus, with the intersection of Highway 1 and Highway 9 behind the property. The remainder of the Housing Matters campus sits in Coral Plaza and includes Rebele Family Shelter. Also on the Housing Matters campus, there is a medical clinic specializing in healthcare for low-income populations and people experiencing homelessness. To the north of the property is a mix of businesses, and a few single-family homes along with a transit stop .02 miles from the property. The businesses include a musical rehearsal studio, a building supply store, and a self-storage facility. Beyond the immediately adjacent uses, the surrounding area includes commercial uses such as a Costco store and pharmacy and a UPS branch, while a 50-acre municipal park, Harvey West Park, is less than half a mile from the site. The Santa Cruz Public Library and Santa Cruz High School are located within a one-mile radius from the property.

Key Players:

Owner: Housing Matters
Development Consultant: MidPen Housing
Architect: David Baker Architects
Contractor: Bogard Construction
Property Management: John Stewart Company
Funding:

The following depict secured and anticipated financial contributions:

13.5 Soft Financing
Source
Amount Status Regulatory Restrictions
HCD MHP Funds $16,825,714 Anticipated 120 units @ 20-50% AMI for 55 years HCD No Place Like
Home Program
(Competitive)
$18,174,282 Committed 59 units @ 20%-30% of AMI for 55 years Land Donation $1,600,000 Committed
Developer Loan $9,296,693 Committed
State of California
direct budget allocation
$8,000,000 Committed
Housing Authority of
the County of Santa
Cruz
65 -ProjectBased
Vouchers
Committed

13.6 City Council

AGENDA REPORT
DATE: 01/31/2023
AGENDA OF: 02/14/2023
DEPARTMENT: Human Resources
SUBJECT: Resolution Approving Various Employee Groups Memoranda of Understanding (HR)
RECOMMENDATION: Resolution approving the following employee organizations Memoranda of Understanding: Supervisory Employees Operating Engineers, Local 3; MidManagement Employees Operating Engineers Local 3; and Firefighters I.A.F.F. Local 1716.

BACKGROUND: The City Council has already approved Tentative Agreements at previous Council meetings with the following employee organizations: Supervisory Employees Operating Engineers, Local 3; Mid-Management Employees Operating Engineers Local 3; and Firefighters I.A.F.F. Local 1716 (Unions). This action before the City Council is to approve the associated Memoranda of Understanding (MOU) for each Union.

DISCUSSION: Tentative Agreements which outline the new terms of successor MOU’s were reached with each of the Unions and previously approved by the City Council. Updating the actual MOU documents takes a significant amount of time and therefore are usually brought before the City Council in a separate action. This is a routine action, and no changes may be made to the MOU’s unless otherwise agreed upon by the City and the Union.

FISCAL IMPACT: There are no additional fiscal impacts generated by final approval.

Prepared By:

Lisa Murphy
Deputy City Manager
Submitted By:

Sara De Leon
Chief People Officer
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

2. SUPERVISORY EMPLOYEES OE3 MOU.PDF

3. MID-MANAGEMENT EMPLOYEES MOU.PDF

4. FIREFIGHTERS I.A.F.F. LOCAL 1716 MOU.PDF

14.1 RESOLUTION NO. NS-XX,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ

APPROVING MEMORANDA OF UNDERSTANDING BETWEEN THE CITY OF SANTA CRUZ AND THE FOLLOWING: SUPERVISORY EMPLOYEES OPERATING ENGINEERS, LOCAL 3; MID-MANAGEMENT EMPLOYEES OPERATING ENGINEERS, LOCAL 3; AND FIREFIGHTERS I.A.F.F. LOCAL 1716
WHEREAS, the City Council has already approved Tentative Agreements at previous City Council meetings with the following employee organizations; Supervisory Employees Operating Engineers, Local 3; Mid-Management Employees Operating Engineers, Local 3; and Firefighters I.A.F.F. Local 1716 (Unions); and
WHEREAS, staff has prepared the updated Memoranda of Understanding documents for each of the Unions; and
WHEREAS, it is the obligation of the City Council to approve the MOU’s at a City Council meeting.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz, that the City Council hereby approves the Memoranda of Understanding with the Unions.

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

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator

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City Council

AGENDA REPORT
DATE: 01/23/2022
AGENDA OF: 02/14/2023
DEPARTMENT: Planning & Community Development
SUBJECT: State of California 2022 Land Use and Housing Legislation Update (PL) RECOMMENDATION: Motion to accept the State of California 2022 Land Use and Housing Legislation Update agenda report.

BACKGROUND: One of the recommendations in the Housing Blueprint Subcommittee report accepted in 2018 was to provide updates to the City Council regarding housing-related State legislation. Staff has provided consistent updates since then and continues that direction here.

This report serves as a summary of key pieces of legislation from 2022 that impact the City’s land use and housing decisions. Additional information is contained in the attached document entitled CA 2022 Land Use and Housing Legislation Summary.

DISCUSSION: The land use and housing-related bills listed below are those that are most likely to have direct implications for the City. Many bills are passed each year, so more esoteric bills or legislation that is less relevant to the City of Santa Cruz have been omitted. Key themes in this legislative session were allowing housing in commercial zones, reducing parking requirements, streamlining Building Permit reviews, and liberalizing the standards for accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs).

The main changes that each highlighted bill established are listed in the following section. The bills are presented using the standard abbreviations “AB” for Assembly Bill and “SB” for Senate Bill to describe the part of the State Legislature in which the bill was created.

Housing in Commercial Zones
AB 2011 – Affordable Housing and High Road Jobs Act of 2022 Process
AB 2011 provides a streamlined approval process for qualifying multifamily projects on commercial zoned land. The project must meet objective standards and site criteria, affordability requirements, and pay prevailing wages for construction work. The streamlined ministerial process is similar to the one used for SB 35 and involves no discretionary review for projects that meet all of the standards. The legislation provides two options for eligibility: one for 100 percent below market rate multifamily residential projects located on commercial zoned land and one for “mixed income” multifamily residential inclusionary projects located on "commercial corridors."

15.1 Affordability
Mixed income projects require minimum affordability levels specified in the legislation, and the qualifying affordability levels can be different due to jurisdictions’ differing local affordability requirements. While the City has a 20% affordability requirement, it is for 80% of Area Median Income (AMI) and does not include Very Low Income (up to 50% AMI). Based on that existing local affordability requirement, the amount to qualify for AB 2011 in the City of Santa Cruz is 5% Low Income (80% AMI), 8% Very Low Income (50% AMI), and 5% Extremely Low Income (30% AMI). Meeting these affordability levels supersedes the City’s 20% affordable requirement, so an applicant would not have to provide the additional 2% of the units at 80% of AMI to reach 20% total affordability if using this bill. AB 2011 requires deeper levels of affordability to qualify rather than a single, higher percentage of units, so the AB 2011 requirement is still overall more substantial than the City’s flat rate. All affordability requirements are calculated using a base project, not inclusive of any qualifying density bonus.

The City’s requirement that affordable units be in perpetuity still applies, even though the bill states a different time period (45 years for for-sale units and 55 years for rental units). In this case, the legislation is drafted such that the higher level of requirement can be applied.

Height and Setbacks
The allowed height of a project is either: 1) the height allowed by the City on that parcel, 2) 35 feet for properties with less than 100 feet of commercial corridor frontage, and 3) 45 feet for properties with 100 feet of commercial corridor frontage or greater. The height shall be whichever of these options is greater.

There are several different setback scenarios but the most important setback to detail is when a qualifying AB 2011 project abuts residential property that is not on a commercial corridor (for example, a single-family house behind a qualifying project). In this scenario, the ground floor shall be setback at least 10 feet from the shared property line with the house and each subsequent floor shall be setback through calculation of 7 feet multiplied by every floor (second floor has a 14-foot setback, third floor has a 21-foot setback, etc.).

Parking and Commercial Requirement
There is no parking requirement for qualifying AB 2011 projects except that they must still provide any required accessible parking, electric vehicle parking, and bicycle parking. All parking is to be set back at least 25 feet.

The City is allowed to require that up to 50 percent of the ground floor be dedicated to retail use.

This allows the City to maintain commercial activities and neighborhood serving uses along commercial corridors. Interestingly, this commercial requirement was specifically noted in AB 2011 as an objective standard that cannot be waived as part of any density bonus incentives.

SB 6 – Middle Class Housing Act of 2022
Process
SB 6 does not directly provide a ministerial approval process but does allow for qualifying residential projects to be on commercially zoned property without requiring a rezoning. This provides a pathway for SB 35 projects on commercially zoned property. To qualify, a project must meet the objective standards that would apply to a similar project on property zoned for

15.2 residential or mixed use. Additional standards for affordable housing and labor are detailed below.

Affordability and Labor
While SB 6 has no affordable housing requirements (unlike AB 2011), locally, that incentive is negated because the City’s inclusionary requirement of 20 percent affordable units remains enforceable under SB 6. The project must also meet greater labor standards than AB 2011. To qualify for SB 6, the project must meet objective standards, and project applicants must provide both prevailing wages for workers and meet "skilled and trained workforce" (meeting various labor union) requirements. Based on these stricter labor requirements, SB 6 is more likely to be used when AB 2011 is not available or when lower labor cost is available.

Parking Reductions
AB 2097 – No Minimum Parking Requirement Near Transit
AB 2097 does not allow the City to require an automobile parking minimum on any development project located within a half-mile of public transit. The only uses that do not apply are hotels, motels, bed and breakfasts, or other transient lodging. New development can still be required to provide any required accessible parking spaces and electric vehicle parking spaces.

Qualifying public transit is defined in two ways:
 Major transit stop: The intersection of two or more major bus routes with a frequency of service interval of 15 minutes or less during the morning and afternoon peak commute periods.
 High-quality transit corridor: A corridor with fixed route bus service with service intervals no longer than 15 minutes during peak commute hours.

These transit stops and their half-mile buffer are mapped and available to the public on the City’s Geographic Information System (GIS), accessible from the Services tab on the City’s website.

The City may only require minimum automobile parking requirements on a qualifying project if it makes written findings that not enforcing minimum automobile parking requirements on the development would have a substantially negative impact, supported by a preponderance of the evidence in the record, on any of the following:
 City’s ability to meet its share of the regional housing need for low- and very-low-income households.
 City’s ability to meet any special housing needs for the elderly or persons with disabilities.
 Existing residential or commercial parking within one-half mile of the housing development project.

Written findings to impose parking requirements cannot be used if the project:
 Dedicates a minimum of 20 percent of the total number of housing units to very low, low-, or moderate-income households, students, the elderly, or persons with disabilities;  Contains fewer than 20 housing units; or
 Is subject to parking reductions based on the provisions of any other applicable law.

Building Permit Streamlining
AB 2234 – Post-Entitlement Phase Processing

15.3 AB 2234 sets forth processing timelines for a housing development project’s post-entitlement phase application. This is typically a building permit application process following approval of the project through the City Planning process (entitlement). Per the new legislation, the City must determine application completeness within 15 business days and then make a determination on a complete application within 30 business days for a housing project 25 units or less and 60 business days for a housing project 26 units for more.

The bill also sets out additional timelines for the City to provide more post entitlement permitting accessibility over the internet. By January 1, 2024, the City must provide additional information on its website including examples of complete, approved post-entitlement applications. By January 1, 2028, the City must provide an option for post-entitlement phase permits to be applied for, completed, and retrieved by the applicant through a website.

AB 970 – Electric Vehicle Charging Permitting
Building Permit applications for electric vehicle charging stations must have a completeness determination with 5 business days for projects of 25 or less stations and 10 business days for projects of 26 or more stations. A complete application must be approved or denied within 20 business days for projects of 25 or less stations and 40 business days for projects of 26 or more stations.

SB 379 – Residential Solar Energy System Permitting
SB 379 requires the City to implement an online, automated permitting platform for residential solar energy system applications. This platform must be in place by September 30, 2023, and the platform is to provide verification of code compliance and issue permits in real time. A qualifying residential solar energy system is no larger than 38.4 kilowatts alternating current nameplate rating along with a residential energy storage system that is no larger than 38.4 kilowatts alternating current nameplate rating.

Accessory Dwelling Units and Junior Accessory Dwelling Units SB 897 – ADUs and JADUs
SB 897 specifies an array of new standards and policies for ADU and JADU applications. The bill states that only objective standards are allowed to be used when reviewing ADU and JADU applications and also establishes new height and setback standards for these projects that jurisdictions must meet. As with all jurisdictions throughout the state, the bill required the City to amend its code to meet these new requirements or else its ADU/JADU ordinance would be null and void. This language is what necessitated the urgency ordinance that was presented to Council on December 14, 2022 and adopted, along with an extension of that urgency ordinance being considered on this same January 24, 2023 agenda. A formal ordinance addressing SB 897 changes will be presented to City Council in spring 2023.

SB 897 also makes changes to Building Permit processes and Code Enforcement procedures.

Construction of an ADU does not trigger a requirement for fire sprinklers to be installed in the primary dwelling. It also requires the City to issue a demolition permit for a detached garage that is to be replaced by and ADU at the same time as a permit for the ADU. SB 897 also prohibits the City from denying an application for a permit to create an ADU due to the correction of nonconforming zoning conditions, building code violations, or unpermitted structures that do not

15.4 present a threat to public health and safety and are not affected by the construction of the accessory dwelling unit. It also prohibits the City from denying a permit for an unpermitted ADU that was constructed before January 1, 2018, due to the unit being in violation of building standards or if it is does not comply with current local or state standards, unless the inconsistency creates a health or safety issue.

AB 2221 – ADUs and JADUs
AB 2221 establishes that either an attached or detached accessory dwelling unit of at least 800 square feet and 16 feet in height shall be allowed, including within in a front setback. ADU applicants can deviate from standards, including front setback standards, if said standards would preclude an 800 square foot ADU.

Housing Production (General)
Senate Constitutional Amendment (SCA) 2 – Article 34 Repeal SCA 2 would put to a statewide public vote the repeal of Article 34 of the California State Constitution. Article 34 was adopted in 1950 and prohibits a jurisdiction’s construction of affordable housing with state assistance beyond a given number of units unless a majority of that jurisdiction’s voters approve the affordable housing project in an election. SCA 2 will place a measure on the 2024 State election ballot, and if approved, would repeal Article 34.

AB 2334 – Density Bonus Clarifications
AB 2334 clarifies the state definition of “base density” as it relates to the calculated density bonus for a qualifying density bonus project. Per AB 2334, the base density or the “Maximum allowable residential density” means the maximum number of units allowed under the zoning ordinance, specific plan, or land use element of the general plan, or, if a range of density is permitted, means the maximum number of units allowed by the specific zoning range, specific plan, or land use element of the general plan applicable to the project.

If the density allowed under the zoning ordinance is inconsistent with the density allowed under the land use element of the general plan or specific plan, the greater shall prevail. Density shall be determined using dwelling units per acre. However, if the applicable zoning ordinance, specific plan, or land use element of the general plan does not provide a dwelling-units-per-acre standard for density, then the local agency shall calculate the number of units by:
 Estimating the realistic development capacity of the site based on the objective development standards applicable to the project, including, but not limited to, floor area ratio, site coverage, maximum building height and number of stories, building setbacks and stepbacks, public and private open space requirements, minimum percentage or square footage of any nonresidential component, and parking requirements, unless not required for the base project. Parking requirements shall include considerations regarding number of spaces, location, design, type, and circulation. A developer may provide a base density study and the local agency shall accept it, provided that it includes all applicable objective development standards.
 Maintaining the same average unit size and other project details relevant to the base density study, excepting those that may be modified by waiver or concession to accommodate the bonus units, in the proposed project as in the study.

15.5 The City performs these requirements through the steps outlined Municipal Code Section

24.16.255, so no changes to the City’s code or processes are necessary at this time. These existing steps for density bonus calculations were based on interpretations of prior law, so confirmation of Planning’s interpretations by the State through AB 2334 is helpful.

AB 2295 – Local Education Agency Residential Land Use
Effective January 1, 2024, AB 2295 deems a housing development project an allowable use on any real property owned by a local educational agency if the housing development satisfies local objective zoning standards, objective subdivision standards, and objective design review standards. This provision would be repealed on January 1, 2033.

AB 916 – Bedroom Additions
AB 916 states that the City shall not adopt or enforce an ordinance requiring a public hearing as a condition of reconfiguring existing space to increase the bedroom count within an existing dwelling unit. This only applies to a permit application for no more than two additional bedrooms within an existing dwelling unit. The bill’s provisions that prohibit requiring a public hearing would not apply to conversions of structures other than the existing dwelling unit.

Health in All Policies (HiAP). This report represents information on new state bills geared toward increasing housing production at all affordability levels and other improvements to land use processes that help residents and builders alike. By being aware of and following these laws, the City is advancing the HiAP pillars of equity, public health, and sustainability.

California Environmental Quality Act (CEQA): This legislative update is not considered a project under CEQA.

FISCAL IMPACT: The fiscal impact of these bills varies. Over time, housing generally has a net negative fiscal impact due to the cost of services provided to residents, and many of these bills generally promote housing production not just in Santa Cruz but throughout the state. So some of the bills could ultimately have a negative fiscal impact, particularly over time; however, the direct fiscal impacts of these bills are unknown.

Prepared by:

Matt VanHua, AICP
Principal Planner
Submitted by:

Lee Butler, AICP, LEED AP
Director of Planning and
Community Development
Approved by:

Matt Huffaker
City Manager
ATTACHMENTS:

1. CA 2022 Land Use and Housing Legislation Summary

15.6 CA 2022 Land Use and Housing Legislation Summary for 2/14/23 City Council Topic areas include:

1. Housing in Commercial Zones

2. Parking Reduction

3. Building Permitting

4. Housing (General)

5. ADUs

6. Density Bonus

7. Housing Element and Annual report

8. Homelessness

9. Miscellaneous

1. Housing in Commercial Zones
AB 2011 – Affordable Housing and High Road Jobs Act of 2022 AB 2011 provides a streamlined ministerial approval pathway (non-discretionary, based only on objective standards, and not subject to the California Environmental Quality Act (CEQA)), comparable to SB 35, for qualifying multifamily projects on commercial zoned land that pay prevailing wages for construction work and meet specified affordable housing targets. The legislation provides two distinct options for eligibility: one for 100 percent below-market-rate(BMR) projects located on commercial zoned land, and one for “mixed income” projects located on "commercial corridors." There is no repeal date. Eligibility is further limited by numerous site and project criteria detailed below.

Process
- Ministerial, CEQA-exempt approval for qualifying residential projects along commercial corridors or 100% affordable housing in commercial zones
- Approval to be within 90 days for projects equal to or less than 150 units or 180 days for projects of 151 units or more
- City required to identify any inconsistency with qualifying criteria within 60 days for 150 units or less and 90 days for 151 units or more
- Ministerial Design Permit is used to evaluate consistency, though only using objective standards and within the set timeframe
o Objective standards are to follow those that apply to the most applicable multifamily land use designation
o See Government Code Section 65914.114 for more information.

Qualifying Standards (for all AB 2011 Projects)
- Zone where office, retail, or parking are a principally permitted use - Multifamily: 5+ units

15.7 - Not on a site or adjacent to a site where more than 1/3 of the square footage is dedicated to industrial use
- Project must meet the following minimum density requirements:
o The residential density allowed on the parcel by the local government, or:
o Sites of less than one acre in size: 20 units per acre. o Sites of one acre in size or greater located on a commercial corridor of less than 100 feet in width: 30 dwelling units per acre (DU/AC).
o Sites of one acre in size or greater located on a commercial corridor of 100 feet in width or greater: 50 DU/AC.
o Sites within one-half mile of a major transit stop: 70 DU/AC. - For a vacant site, does not contain tribal cultural resources (when impacts to which cannot be mitigated) and is not within a very high fire severity zone. (See Government Code Section 65912.121(j) for more information.)
- Satisfies SB 35 eligibility criteria listed in Government Code Section 65913.4(a)(6)(B)-(K) - For sites in an area plan, the plan must allow multifamily housing on the site as of Jan 1, 2022 - Not on site governed by mobile home laws
- No housing within 500 feet of a freeway
- Applicant must complete a phase 1 environmental site assessment and mitigate as necessary - Applicant shall provide written notice of the pending application to each commercial tenant on the parcel when the application is submitted
- Relocation assistance to certain qualifying independently owned commercial tenants o Qualifying commercial tenant:
 The commercial tenant is an independently owned and operated business with its principal office located in the county in which the property on the site that is leased by the commercial tenant is located.
 The commercial tenant’s lease expired and was not renewed by the property owner.
 The commercial tenant’s lease expired within the three years following the development proponent’s submission of the application for a housing development pursuant to this article.
 The commercial tenant employs 20 or fewer employees and has an annual average gross receipts under one million dollars ($1,000,000) for the three taxable year period ending with the taxable year that precedes the expiration of their lease.
 The commercial tenant is still in operation on the site at the time of the expiration of its lease.
o The relocation assistance shall be provided to an eligible commercial tenant upon expiration of the lease of that commercial tenant:
 The development proponent shall provide relocation assistance to each eligible commercial tenant located on the site as follows:
 For a commercial tenant operating on the site for at least one year but less than five years, the relocation assistance shall be equivalent to six months’ rent.

15.8  For a commercial tenant operating on the site for at least 5 years but less than 10 years, the relocation assistance shall be equivalent to nine months’ rent.  For a commercial tenant operating on the site for at least 10 years but less than 15 years, the relocation assistance shall be equivalent to 12 months’ rent.  For a commercial tenant operating on the site for at least 15 years but less than 20 years, the relocation assistance shall be equivalent to 15 months’ rent.  For a commercial tenant operating on the site for at least 20 years, the relocation assistance shall be equivalent to 18 months’ rent.  The relocation assistance shall be provided to an eligible commercial tenant upon expiration of the lease of that commercial tenant
Qualifying Standards specific to non-100% affordable projects on commercial corridors - Project site abuts a commercial corridor and has minimum frontage of 50 feet - Project does not qualify if:
o Site greater than 20 acres
o Site where housing has been occupied by tenants within the past 10 years, excluding any manager’s units
o Requires the demolition of a historic structure that was placed on a national, state, or local historic register.
o Site contains 1 to 4 dwelling units
o Site is vacant and zoned for residential but not for multifamily residential Height and Setbacks
- The height limit applicable to the housing development shall be the greater of the following:
o The height allowed on the parcel by the City
o For sites on a commercial corridor of less than 100 feet in width, 35 feet o For sites on a commercial corridor of 100 feet in width or greater, 45 feet - Setbacks for the portion of the property that fronts a commercial corridor:
o No setbacks shall be required.
o All parking must be set back at least 25 feet.
o On the ground floor, a building or buildings must be within 10 feet of the property line for at least 80 percent of the frontage.
o For the portion of the property that fronts a side street, a building or buildings must be within 10 feet of the property line for at least 60 percent of the frontage. o For the portion of the property that abuts an adjoining property that also abuts the same commercial corridor as the property, no setbacks are required unless the adjoining property contains a residential use that was constructed prior to 2023. - Setbacks if abutting residential or for the portion of the property line that does not abut a commercial corridor, a side street, or an adjoining property that also abuts the same commercial corridor as the property:
o Along property lines that abut a property that contains a residential use, the following shall occur:

15.9  The ground floor of the development project shall be set back at 10 feet. The amount required to be set back may be decreased by the local government.  Starting with the second floor of the property, each subsequent floor of the development project shall be stepped back in an amount equal to seven feet multiplied by the floor number. For purposes of this paragraph, the ground floor counts as the first floor. The amount required to be stepped back may be decreased by the local government.
o Along property lines that abut a property that does not contain a residential use, the development shall be set back 15 feet. The amount required to be set back may be decreased by the local government.

BMR Unit Requirements (if not 100% affordable, and based on the City’s current inclusionary requirement of 20% of the base project at 80% of Area Median Income (AMI)) - Requires 5% Low Income (LI), 8% Very Low Income (VLI), and 5% Extremely Low Income (ELI) o Meeting this requirement would supersede the local ordinance. - BMR units must be “equally distributed” and have the same bedroom/bathroom count ratios and same quality appliances, fixtures, and finishes as the market rate units Commercial Requirement
- The applicable objective standards may include a requirement that up to ½ of the ground floor of a project be dedicated to retail use
o This requirement cannot be removed as part of a Density Bonus concession or waiver o See Government Code Section 65912.123(j) for more information.

Parking
- No parking required except for bike parking, electric vehicle parking spaces, and accessible parking spaces using standing parking requirements
Labor Requirements
- Prevailing wage
- For projects more than 50 units, contractors must employ “construction craft employees,” or let subcontracts (for at least 1,000 hours) participate in an apprenticeship program and make health care contributions.

SB 6 – Middle Class Housing Act of 2022
SB 6 does not directly provide a ministerial approval process but does grant qualifying residential use on commercially zoned property without requiring a rezoning which can allow SB 35 projects on commercially zoned property. To invoke the law, however, applicants must commit both to prevailing wages for workers and to "skilled and trained workforce" meeting various labor union requirements.

There are no BMR requirements, unlike AB 2011, but the City’s inclusionary requirements are still enforceable. The City’s inclusionary is relatively close to AB 2011 requirements. This, coupled with the

15.10 fact that AB 2011 provides a CEQA exemption, will likely make SB 6 less appealing in Santa Cruz, unless SB 6 is used in combination with SB 35.

Process
- Residential allowed in a specified commercial zone if it meets qualifying criteria - No ministerial process unless the project qualifies to also use Housing Accountability Act or SB 35 - SB 35 allowed to be used on qualifying commercial sites Project Standards
- Residential allowed in a zone where office, retail, or parking are a principally permitted use - Project site is less than 20 acres
- Not on a site adjoined to any site where more than 1/3 of the square footage of the site is dedicated to industrial use
- Must be a “Housing Development Project” that is residential or mixed-use with at least 50% of the project square footage dedicated to residential use - Must be consistent with Sustainable Community Strategy or the like - Applicant shall provide written notice of the pending application to each commercial tenant on the parcel when the application is submitted
- Must provide relocation assistance to certain qualifying independently-owned commercial tenants (same requirements as detailed in AB 2011)
- Rental of any unit created by SB 6 must be for a term longer than 30 days - Density must exceed 20 DU/AC
- Must meet the objective standards and fees that would be applicable to a similar project in a conforming zone.

Affordability Requirement
- None, but City’s inclusionary requirement still applies Labor Requirements
- Prevailing wager required
- “Skilled and trained workforce” required
o Unless after specified bidding process, less than two prequalified contractors promising to use “skilled and trained” workforce bid on contract
Provisions of this bill repealed on January 1, 2033

2. Parking Reduction
AB 2097 – No Minimum Parking Requirement Near Transit

15.11 - City shall not impose or enforce any minimum automobile parking requirement on a residential, commercial, or other development project if the project is located within one-half mile of public transit (determined by Association of Monterey Bay Area Governments (AMBAG) and mapped in City’s Geographic Information Systems (GIS)).
o Major transit stop: The intersection of two or more major bus routes with a frequency of service interval of 15 minutes or less during the morning and afternoon peak commute periods.
o High-quality transit corridor: A corridor with fixed route bus service with service intervals no longer than 15 minutes during peak commute hours. o A project shall be considered to be within one-half mile of a major transit stop or highquality transit corridor if all parcels within the project have no more than 25 percent of their area farther than one-half mile from the stop or corridor and if not more than 10 percent of the residential units or 100 units, whichever is less, in the project are farther than one-half mile from the stop or corridor.
- An AB 2097 project does not include a project where any portion is designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging, except where a portion of a housing development project is designated for use as a residential hotel, as defined in Section 50519 of the Health and Safety Code.
- City may only impose or enforce minimum automobile parking requirements on a project that is located within one-half mile of public transit if the City makes written findings, within 30 days of the receipt of a completed application, that not imposing or enforcing minimum automobile parking requirements on the development would have a substantially negative impact, supported by a preponderance of the evidence in the record, on any of the following:
o City’s ability to meet its share of the regional housing need for low- and very low income households.
o City’s ability to meet any special housing needs for the elderly or persons with disabilities
o Existing residential or commercial parking within one-half mile of the housing development project.
- Written findings to impose parking requirements cannot be used if the project:
o Dedicates a minimum of 20 percent of the total number of housing units to very low, low-, or moderate-income households, students, the elderly, or persons with disabilities. o Contains fewer than 20 housing units.
o Is subject to parking reductions based on the provisions of any other applicable law. - These reductions do not preclude the City from enforcing of any requirement imposed on a qualifying development to provide electric vehicle parking spaces or accessible parking spaces that would have otherwise applied to the development if this section did not apply.

3. Building Permitting
AB 2234 – Post Entitlement Phase Permitting and HAA

15.12 Website application information
- By January 1, 2024, the City shall make the following items available on its website:
o Compile one or more lists that specify in detail the information that will be required from any applicant for a post-entitlement phase permit.  City may revise the lists of information required from an applicant and any revised list shall not apply to any permit pending review. o Post an example of a complete, approved application and an example of a complete set of post-entitlement phase permits for at least five types of housing development projects in the jurisdiction, including, but not limited to, accessory dwelling unit, duplex, multifamily, mixed use, and townhome.
- By January 1, 2028, the City shall provide an option for post-entitlement phase permits to be applied for, completed, and retrieved by the applicant on its internet website. o The internet website shall list the current processing status of the applicant’s permit by the City. That status shall note whether it is being reviewed by the City or action is required from the applicant.
o The City shall respond to inquiries from an applicant regarding the current processing status of the applicant’s permit via electronic mail.
- Unless specified otherwise, the City shall accept post-entitlement phase permit applications by electronic mail.

Review timelines
- Changes to review timelines begin January 1, 2023
- City shall determine whether an application for a post-entitlement phase permit is complete and provide written notice of this determination to the applicant not later than 15 business days after the local agency received the application.
o Otherwise application is deemed complete.
- If City determines an application is incomplete, the local agency shall provide the applicant with a list of incomplete items and a description of how the application can be made complete. The list shall be limited to incomplete items that are included on the required lists. The list and description shall be provided with the written notice.
o In the review of a submitted application, the City shall not require the application to include an item that was not included in the specification list. - After completeness is determined:
o For housing development projects with 25 units or less, the City shall complete the review and either return in writing a full set of comments to the applicant with a comprehensive request for revisions or return the approved permit application on each post-entitlement phase permit requested, and immediately transmit that determination to the applicant by electronic mail and, if applicable, by posting the response on its internet website not later than 30 business days.
o For housing development projects with 26 units or more, the City shall complete the review and either return in writing a full set of comments to the applicant with a comprehensive request for revisions or return the approved permit application on each

15.13 post-entitlement phase permit requested, and immediately transmit that determination to the applicant by electronic mail and, if applicable, by posting the response on its internet website not later than 60 business days.
o Timelines do not apply if City finds the permit might have a specific, adverse impact on public health or safety and that additional time is necessary to process the application. o If City requires review of the application by an outside entity, such as the County Environmental Health Department or the Santa Cruz Metropolitan Transit District, the City shall notify the applicant within three business days by electronic mail (and website if applicable) and the time limits shall be tolled until the outside entity completes the review and returns the application to the City, at which point the City shall complete the review within the time remaining under the time limit.
- The applicant and a local agency may mutually agree to an extension of any time limit. However, the City shall not require such agreement as a condition of accepting the application for, or processing of, a post-entitlement phase permit, unless the agreement is obtained for the purpose of permitting concurrent processing of related approvals or an environmental review on the same housing development project.
- SB 35 timelines in Section 65913.4 still apply and both timelines must be met if applicable.

Appeals
- If a post-entitlement phase permit is determined to be incomplete, denied, or determined to be noncompliant, the City shall provide the right to appeal and a process for the applicant to appeal that decision in writing to the governing body. Depending on the issue(s) of contention, the appeal could go directly to the Planning Commission, whose decision would be appealable to the City Council. For example, if it is a planning issue at question, it would follow the above appeal procedure. If it is a building or fire code issue that is under contention, the initial appeal body would be the Building and Fire Board of Appeals. The Building and Fire Board of Appeals’ decision could then be appealed to the Planning Commission, and their decision could be appealed to the City Council.
o With respect to a post-entitlement phase permit concerning housing development projects with 25 units or fewer, the City on the appeal shall provide a final written determination by not later than 60 business days after receipt of the applicant’s written appeal. The fact that an appeal is permitted to both the planning commission and to the governing body does not extend the 60-business-day period. o 90 business day appeal period for projects 26 units or more AB 970 – Electric Vehicle Charging Permitting
- Requires an application to install an electric vehicle charging station to be deemed complete in either 5 business days (25 stations or less) or 10 business days (26 stations or more) after the application was submitted if the City has not deemed the application to be incomplete or issued a written correction notice detailing all deficiencies in the application.

15.14 - Requires an application to install an electric vehicle charging station to be deemed approved within 20 business days (25 stations or less) or 40 business days (26 stations or more) after the application was deemed complete or if each of the following happens:
o The City has not approved the application within the timeframe o The Building Official has not made a finding that the proposed installation could have an adverse impact upon the public health or safety or required the applicant to apply for a use permit
o The Building Official has not denied the permit
o An appeal has not been made to the Planning Commission - Bill’s requirements do not expand or restrict the role or responsibility of a local publicly owned electric utility in providing new electric service to an electric vehicle charging station in a manner consistent with safety, reliability, and engineering requirements. - The bill would require the City to reduce the number of required parking spaces to accommodate the electric vehicle charging station.

SB 379 – Solar Streamlining
- Requires the City to implement an online, automated permitting platform that verifies code compliance and issues permits in real time or allows the City to issue permits in real time for a residential solar energy system that is no larger than 38.4 kilowatts alternating current nameplate rating and a residential energy storage system, as defined, paired with a residential solar energy system that is no larger than 38.4 kilowatts alternating current nameplate rating. - City required to satisfy the requirements by September 30, 2023. - Requires the City to report to the Energy Commission when it is in compliance with specified requirements, in addition to other information.
- Requires the City to self-certify their compliance with the bill’s provisions when applying for specified funds from the Energy Commission.
- This bill would require the Energy Commission to set guidelines, adopted through a specified public process, for the City to report to the commission on the number of permits issued for residential solar energy systems and residential energy storage systems paired with residential solar energy systems and the relevant characteristics of those systems. - This bill would exempt adopting the guidelines from the Administrative Procedures Act. o The Administrative Procedure Act generally governs the procedure for the adoption, amendment, or repeal of regulations by state agencies and for the review of those regulatory actions by the Office of Administrative Law.

4. Housing (General)
SCA 2 – Article 34 Repeal
- The California Constitution prohibits the construction of affordable housing beyond a given threshold in any manner by any state public body until a majority of the qualified electors of the

15.15 City in which the development, construction, or acquisition of the low-rent housing project is proposed approve the project by voting in favor at an election. - This measure would repeal these provisions.
- SCA 2 will appear on the ballot in 2024.

AB 2295 – Local Education Agency Residential Land Use
- Effective January 1, 2024
- Deems a housing development project an allowable use on any real property owned by a local educational agency if the housing development satisfies local objective zoning standards, objective subdivision standards, and objective design review standards - Deems housing development that meets these requirements consistent, compliant, and in conformity with local development standards, zoning codes or maps, and the general plan. - Authorizes the land used for the development of the housing development to be jointly used or jointly occupied by the local educational agency and any other party - Exempts a housing development project subject to these provisions from various requirements regarding the disposal of surplus land
- Bill would require the Department of Housing and Community Development to provide a specified notice to the planning agency of each county and city on or before January 31, 2023 - Repeal of provisions on January 1, 2033
AB 2668 – Amendments to SB 35 (Section 65913.4)
- Clarifies that the percentage of affordable housing units is calculated by the base project prior to adding density bonus units.
- Clarifies that a hazardous waste site is listed pursuant to Section 65962.5 or a hazardous waste site designated by the Department of Toxic Substances Control pursuant to Section 25356 of the Health and Safety Code, unless either of the following apply:
o The site is an underground storage tank site that received a uniform closure letter issued pursuant to subdivision (g) of Section 25296.10 of the Health and Safety Code based on closure criteria established by the State Water Resources Control Board for residential use or residential mixed uses. This section does not alter or change the conditions to remove a site from the list of hazardous waste sites listed pursuant to Section 65962.5.
o The State Department of Public Health, State Water Resources Control Board, Department of Toxic Substances Control, or a local agency making a determination pursuant to subdivision (c) of Section 25296.10 of the Health and Safety Code, has otherwise determined that the site is suitable for residential use or residential mixed uses.
- Clarifies that if the City determines that a SB 35 development is consistent with the objective planning standards, it shall approve the development in the required timelines:

15.16 o Within 60 days of submittal of the development to the local government pursuant to this section if the development contains 150 or fewer housing units. o Within 90 days of submittal of the development to the local government pursuant to this section if the development contains more than 150 housing units. - Clarifies that the City shall not determine that a development, including an application for a modification, conflicts with the objective planning standards on the basis that application materials are not included, if the application contains substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
- Clarifies that if the City determines that an SB 35 development conflicts with any of the standards, it shall provide the development proponent written documentation of which objective standard or standards the development conflicts with and an explanation for the reason or reasons the development conflicts with that objective standard or standards within the same timeline listed above.
- Amendment to support addition of SB 6
o Qualifying SB 35 projects need to be at least 2/3 residential square footage and satisfy any of the following:
 The site is zoned for residential use or residential mixed-use development.  The site has a general plan designation that allows residential use or a mix of residential and nonresidential uses.
 The site is zoned for office or retail commercial use and meets the requirements of SB 6 (Section 65852.24)
AB 916 – Bedroom Additions
- City shall not adopt or enforce an ordinance requiring a public hearing as a condition of reconfiguring existing space to increase the bedroom count within an existing dwelling unit. o This section shall only apply to a permit application for no more than two additional bedrooms within an existing dwelling unit.
o This section shall not be construed to prohibit a local agency from requiring a public hearing for a proposed project that would increase the number of dwelling units within an existing structure.

5. ADUs
SB 897 – ADUs and JADUs
Objective Standards
- Can only use objective standards on accessory dwelling units that include, but are not limited to, parking, height, setback, landscape, architectural review, maximum size of a unit, and standards that prevent adverse impacts on any real property that is listed in the California Register of Historical Resources.

15.17 Code Enforcement
- Prohibits the City from denying an application for a permit to create an accessory dwelling unit due to the correction of nonconforming zoning conditions, building code violations, or unpermitted structures that do not present a threat to public health and safety and are not affected by the construction of the accessory dwelling unit. - Permitting Unpermitted ADUs
o Prohibits the City from denying a permit for an unpermitted ADU that was constructed before January 1, 2018, due to either of the following:
 The accessory dwelling unit is in violation of building standards pursuant to Article 1 (commencing with Section 17960) of Chapter 5 of Part 1.5 of Division 13 of the Health and Safety Code.
 The accessory dwelling unit does not comply with Section 65852.2 or any local ordinance regulating accessory dwelling units.
o Notwithstanding the above, the City may deny a permit for an ADU constructed before January 1, 2018, if the local agency makes a finding that correcting the violation is necessary to protect the health and safety of the public or occupants of the structure. o The permitting requirements noted above shall not apply to a building that is deemed substandard pursuant to Section 17920.3 of the Health and Safety Code.

Building Code
- The ADU shall comply with local building code requirements that apply to detached dwellings, except that the construction of an accessory dwelling unit shall not constitute a Group R occupancy change under the local building code, as described in Section 310 of the California Building Code (Title 24 of the California Code of Regulations) o Unless the building official or enforcement agency of the local agency makes a written finding based on substantial evidence in the record that the construction of the accessory dwelling unit could have a specific, adverse impact on public health and safety. Nothing in this clause shall be interpreted to prevent a local agency from changing the occupancy code of a space that was unhabitable space or was only permitted for nonresidential use and was subsequently converted for residential use pursuant to this section.
- The construction of an accessory dwelling unit shall not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling.
- Requires the City to review and issue a demolition permit for a detached garage that is to be replaced by an accessory dwelling unit at the same time as it reviews and issues the permit for the accessory dwelling unit.

Noticing
- Applicant shall not be required to provide written notice or post a placard for the demolition of a detached garage that is to be replaced with an accessory dwelling unit, unless the property is located within an architecturally and historically significant historic district.

15.18 Owner Occupancy
- Removed Jan 1, 2025 sunset of for all of Section 65852.2 except the owner occupancy requirement:
o City shall not impose an owner-occupant requirement on an accessory dwelling unit that was permitted between January 1, 2020, and January 1, 2025.

Height
- Expands height allowances for ADUs. However, City already allows greater height maximums in most instances. Where local codes did not align, the December 2022 urgency ordinance rectifies the discrepancy, so staff/applicants only need to follow the urgency ordinance maximum height of 22 feet for a detached ADU that is setback four feet or more (or height limit of primary structure, if attached).

Setbacks on single-family or multifamily lots
- Detached ADU rear and side yards: maximum 4 feet
- If an existing multifamily structure is already setback less than 4 feet, City cannot require modification of the structure to conform to setback when permitting an ADU. - Front yard setback is maximum needed to permit 800 square foot detached ADU (per AB 2221) JADU specific requirements
- Enclosed uses within the residence, such as attached garages, are considered a part of the proposed or existing single-family residence.
- If a permitted JADU does not include a separate bathroom, the JADU shall include a separate entrance from the main entrance to the structure, with an interior entry to the main living area.

AB 2221 – ADUs and JADUs
Processing
- ADU and JADU review times remain the same:
o City shall approve or deny an application to create or serve an ADU or JADU within 60 days from the date the City receives a completed application if there is an existing single-family or multifamily dwelling on the lot.
o If the permit application to create or serve an ADU or JADU is submitted with a permit application to create or serve a new single-family or multifamily dwelling on the lot, the City may delay approving or denying the permit application for the accessory dwelling unit or the junior accessory dwelling unit until the permitting agency approves or denies the permit application to create or serve the new single-family or multifamily dwelling, but the application to create or serve the accessory dwelling unit or junior accessory dwelling unit shall be considered without discretionary review or hearing.

15.19 o If the applicant requests a delay, the 60-day time period shall be tolled for the period of the delay. If the City has not approved or denied the completed application within 60 days, the application shall be deemed approved.
- Adds that if the City denies an application for an ADU or JADU, the City is required to return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant within the same timeframes.

Front Setbacks
- All language below exists except for the front setback addition:
o City shall not establish a minimum or maximum size based upon a percentage of the proposed or existing primary dwelling or limits on lot coverage, floor area ratio, open space, front setbacks, and minimum lot size, for either attached or detached dwellings that does not permit at least an 800 square foot accessory dwelling unit that is at least 16 feet in height with four-foot side and rear yard setbacks to be constructed in compliance with all other local development standards.

ADUs and detached garages
- An ADU that is detached from the proposed or existing primary dwelling may include a detached garage.

6. Density Bonus
AB 682 – Shared Housing Density Bonus
- Allows shared housing to qualify for a density bonus
- Shared housing building means a residential or mixed-use structure, with five or more shared housing units and one or more common kitchens and dining areas designed for permanent residence of more than 30 days by its tenants. The kitchens and dining areas within the shared housing building shall be able to adequately accommodate all residents. If a local ordinance further restricts the attributes of a shared housing building beyond the requirements established in this section, the local definition shall apply to the extent that it does not conflict with the requirements of this section.
- Shared housing building may include other dwelling units that are not shared housing units, provided that those dwelling units do not occupy more than 25 percent of the floor area of the shared housing building. A shared housing building may include 100 percent shared housing units.
- Shared housing building may include incidental commercial uses, provided that those commercial uses are otherwise allowable and are located only on the ground floor or the level of the shared housing building closest to the street or sidewalk of the shared housing building. - Shared housing unit means one or more habitable rooms, not within another dwelling unit, that includes a bathroom, sink, refrigerator, and microwave, is used for permanent residence, that

15.20 meets the “minimum room area” specified in Section R304 of the California Residential Code (Part 2.5 of Title 24 of the California Code of Regulations) and complies with the definition of “guestroom” in Section R202 of the California Residential Code. If a local ordinance further restricts the attributes of a shared housing building beyond the requirements established in this section, the local definition shall apply to the extent that it does not conflict with the requirements of state code.
- For purposes of calculating a density bonus granted for a shared housing building, “unit” means one shared housing unit and its pro rata share of associated common area facilities.

AB 1551 – Mixed-Use Density Bonus
- When an applicant for approval of a commercial development has entered into an agreement for partnered housing to contribute affordable housing through a joint project or two separate projects encompassing affordable housing, the City shall grant to the commercial developer a development bonus. Housing shall be constructed on the site of the commercial development or on a site that is all of the following:
o Within the boundaries of the local government.
o In close proximity to public amenities including schools and employment centers. o Located within one-half mile of a major transit stop, as defined in subdivision (b) of Section 21155 of the Public Resources Code.
- The development bonus granted to the commercial developer shall mean incentives, mutually agreed upon by the developer and the City, that may include, but are not limited to, any of the following:
o Up to a 20-percent increase in maximum allowable intensity in the General Plan. o Up to a 20-percent increase in maximum allowable floor area ratio. o Up to a 20-percent increase in maximum height requirements. o Up to a 20-percent reduction in minimum parking requirements. o Use of a limited-use/limited-application elevator for upper floor accessibility. o An exception to a zoning ordinance or other land use regulation. - The agreement for partnered housing shall be between the commercial developer and the housing developer, shall identify how the commercial developer will contribute affordable housing, and shall be approved by the City.
- Affordable housing may be contributed by the commercial developer in one of the following manners:
o The commercial developer may directly build the units. o The commercial developer may donate a portion of the site or property elsewhere to the affordable housing developer for use as a site for affordable housing. o The commercial developer may make a cash payment to the affordable housing developer that shall be used towards the costs of constructing the affordable housing project.
- Any additional allowances or incentives offered to developers by local governments pursuant to law or regulation shall apply.

15.21 - If the developer of the affordable units does not commence with construction of those units in accordance with timelines ascribed by the agreement, the local government may withhold certificates of occupancy for the commercial development under construction until the developer has completed construction of the affordable units. - In order to qualify for a development bonus under this section, a commercial developer shall partner with a housing developer that provides at least 30 percent of the total units for lowincome households or at least 15 percent of the total units for very low-income households. - The affordable housing developer may still seek a density bonus, concessions or incentives, waivers or reductions of development standards, or parking ratios under Section 65915 (Density Bonus Law).
- A development bonus shall not include a reduction or waiver of development requirements if the commercial developer uses an in-lieu fee for the provision of affordable housing. - Annual Housing Element Report: the City shall submit to the Department of Housing and Community Development, as part of the annual report required by Section 65400, information describing a commercial development bonus approved pursuant to this section, including the terms of the agreements between the commercial developer and the affordable housing developer, and the developers and the local jurisdiction, and the number of affordable units constructed as part of the agreements.
- In effect until January 1, 2028.

AB 2334 – Density Bonus Clarifications
- Clarifies the state definition of base density, consistent with the City’s interpretation. o “Maximum allowable residential density” or base density means the maximum number of units allowed under the zoning ordinance, specific plan, or land use element of the general plan, or, if a range of density is permitted, means the maximum number of units allowed by the specific zoning range, specific plan, or land use element of the general plan applicable to the project. If the density allowed under the zoning ordinance is inconsistent with the density allowed under the land use element of the general plan or specific plan, the greater shall prevail. Density shall be determined using dwelling units per acre. However, if the applicable zoning ordinance, specific plan, or land use element of the general plan does not provide a dwelling-units-per-acre standard for density, then the local agency shall calculate the number of units by:
 Estimating the realistic development capacity of the site based on the objective development standards applicable to the project, including, but not limited to, floor area ratio, site coverage, maximum building height and number of stories, building setbacks and stepbacks, public and private open space requirements, minimum percentage or square footage of any nonresidential component, and parking requirements, unless not required for the base project. Parking requirements shall include considerations regarding number of spaces, location, design, type, and circulation. A developer may provide a base density study and the local agency shall accept it, provided that it includes all applicable objective development standards.

15.22  Maintaining the same average unit size and other project details relevant to the base density study, excepting those that may be modified by waiver or concession to accommodate the bonus units, in the proposed project as in the study.

7. Housing Element and Annual Progress Report
AB 1743 – Ministerial Approvals
- Planning is required to include in the annual report whether each housing development application is subject to a ministerial or discretionary approval process.

AB 2094 - Extremely Low-Income Housing
- Require the City’s annual report to include the locality's progress in meeting the housing needs of extremely low-income households, as specified (30% or less of the Area Median Income (AMI)). This will still count towards Very Low-Income Housing Element category.

AB 2653 – Housing Element Reporting
- Requires the City to additionally include in its annual report:
o The number of all new housing units
o The number of housing units demolished
o Data from all projects approved to receive a density bonus - Authorizes State Department of Housing and Community Development (HCD) to request corrections to the housing element portion of an annual report. o Require the City to make the requested corrections within 30 days and would authorize the department to reject the housing element portion of an annual report if the report is not in substantial compliance with these requirements. o If HCD rejects the housing element portion of an annual report, HCD would provide the reasons for the rejection in writing.

AB 2339 – Regional Housing Need
- Requires the City to ensure that its housing element can accommodate its remaining unmet share of the regional housing need and any remaining unaccommodated portion of the regional housing need from the prior planning period, at all times throughout the planning period. - Clarifies that the state’s existing “no net loss” provisions also apply to any parcel identified to meet the City’s current share of the regional housing need or any unaccommodated portion of the regional housing need from the prior planning period.

15.23 8. Homelessness
AB 1991 – Publicly Funded Shelter Programs in Hotels/Motels - Defines “shelter program participant” as an occupant of a motel or hotel who participates in specified city-, county-, continuum of care-, state-, or federally funded shelter, interim housing, motel voucher, or emergency shelter programs.
- Prohibits specified provisions of the California Building Standards Code from causing a motel or hotel to be designated as nontransient solely as a result of a shelter program participant’s occupancy in the motel or hotel beyond a 30-day period, or from being interpreted to restrict the duration of occupancy for shelter program participants. - Prohibits a hotel or motel from adopting termination policies, restricting access rights, or imposing charges or fees specifically for shelter program participants that do not apply to other occupants, and would also prohibit a motel or hotel from requiring those shelter program participants to check out and reregister, move out of rooms or between rooms, or from the hotel or motel while actively enrolled in the shelter for purposes of preventing occupants from establishing rights of tenancy.
- Effective until January 1, 2025.

SB 1338 – Community Assistance, Recovery, and Empowerment (CARE) Act - Authorizes specified adult persons to petition a civil court to create a voluntary CARE agreement or a court-ordered CARE plan and implement services, to be provided by county behavioral health agencies, to provide behavioral health care, including stabilization medication, housing, and other enumerated services to adults who are currently experiencing a severe mental illness and have a diagnosis identified in the disorder class schizophrenia and other psychotic disorders, and who meet other specified criteria.
- Must be implemented by Santa Cruz County by December 1, 2024.

AB 2483 – Incentives for Homeless Housing Development
- Provides several financial and procedural incentives (including loans) for developments that include at least 20% of units set aside for individuals experiences homelessness.

9. Miscellaneous
SB 1214 – Architectural Drawing Copyrights (GC Section 65103.5) - City may maintain official copies of each set of architectural drawings submitted to the agency.

Unless permission is granted by the design professional or other owner of the copyright, if an

15.24 official copy of the architectural drawings maintained by the City contains protected information, that copy shall be subject to the following restrictions:
o Drawings shall be open for inspection and public review only on the premises of the planning agency as a public record.
o Drawings shall not be copied by a member of the public without the permission of the design professional or the owner of the copyright.
o City shall not provide copies of architectural drawings or postarchitectural drawings that contain protected information on the internet.
- City may use copies of protected architectural drawings for the purposes of internal review and to share with governing bodies.
- Protected architectural drawings may be displayed as part of a public hearing. - Massing diagrams and site plans may be posted on the internet and may be copied o Upon submission of an official copy of architectural drawings to the City, the design professional or the owner of the copyright may also submit to the City a site plan or a massing diagram for posting online or for distribution to the public, upon request. If the design professional or the owner of the copyright elects not to submit a site plan or massing diagram upon submission of an official copy of architectural drawings to a local planning agency, permission is deemed granted and the planning agency shall not be subject to any restrictions on the copying or distribution of those architectural documents. The planning agency, or other governing body, shall not compel such permission.

15.25 City Council

AGENDA REPORT
DATE: 02/02/2023
AGENDA OF: 02/14/2023
DEPARTMENT: Public Works
SUBJECT: 2023 Pavement Rehabilitation Project (c400809) – Authorization to Advertise and Award (PW)
RECOMMENDATION: Motion to approve the plans and specifications for the 2023 Pavement Rehabilitation Project (c400809), authorize staff to advertise for bids, and award contract. The City Manager is hereby authorized and directed to execute the contact in a form approved by the City Attorney. The Director of Public Works is authorized to execute change orders within the approved project budget.

BACKGROUND: Public Works has implemented a program to rehabilitate city streets long plagued by deferred maintenance. This program targets heavily used arterial and collector streets.

The City of Santa Cruz (City) uses the pavement condition index, or PCI, as a pavement condition measurement, which ranges from zero to 100. A newly constructed street will have a PCI of 100, while a failed street will have a PCI of 25 or less. The pavement condition index is divided into four categories: from 0 to 25, pavement condition is considered very poor; from 25 to 50, pavement condition is poor; from 50 to 70 pavement condition is good; and from 70 to 100, pavement condition is very good. The pavement condition is primarily affected by the climate, traffic, loads and volumes, construction materials, and age. This project will include pavement rehabilitation in the following streets: Bay Street, Riverside Avenue, and San Lorenzo Blvd. The section of Bay Street (from Mission Street to Lennox Street) has a PCI of 47. The section of Riverside Avenue (from Beach Street to Third Street) has a PCI of 21. The section of San Lorenzo Blvd (from Barson Street to Jessie Street) has a PCI of 40.

DISCUSSION: Bay Street, Riverside Avenue, and San Lorenzo Boulevard serve high local and visitor traffic volumes. The current condition of the existing asphalt and non-compliant curb ramps along these corridors are disruptive to motorists, bicyclists, and pedestrians.

The project will enhance safety for all roadway users, pedestrians, and bicyclists. The proposed improvements in the project area (Bay Street, Riverside Avenue, and San Lorenzo Boulevard) include the removal of non-ADA compliant curb ramps and installation of ADA-compliant curb ramps, removal, and replacement of asphalt pavement, and installation of new striping that will help reduce any potential conflict between motorists, bicyclists, and pedestrians. These striping improvements include, but are not limited to, shared lane markings and bike lane buffers where possible.

16.1 Project staff will work with adjacent property owners on details of the construction plans and specifications to minimize construction impacts. Staff anticipates that the project will begin construction during the spring of 2023. Plans and specifications can be found on the City’s website www.cityofsantacruz.com/publicworksprojects
Paving work on Riverside Ave will be scheduled outside of the Memorial Day to Labor Day window (May 26, 2023, to September 4, 2023). This should help reduce the impact on summer beach traffic due to construction.

FISCAL IMPACT: The project (c400809) will be additionally funded by Measure D, Gas Tax, and the General Fund in the FY 2023 Capital Investment Program (CIP). The project construction is estimated at $2,500,000, including construction management costs.

Prepared By:

Miguel Lizarraga
Associate Civil Engineer
Submitted By:

Nathan N. Nguyen
Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

16.2 City Council

AGENDA REPORT
DATE: 02/02/2023
AGENDA OF: 02/14/2023
DEPARTMENT: Public Works
SUBJECT: Award Contract for Boiler Control System Replacement Project (m409659) and Approval of Exemption from Local and Apprentice Employment (SCMC Ch. 3.10.080(2) for Boiler Control System Replacement Project (PW)
RECOMMENDATION: Motion to:
1) Award a contract for the purchase of Boiler Control System Replacement Project from R.F.

Macdonald Co. (Hayward, CA) in the amount of $159,793.70; and 2) Exempt R.F. MacDonald Co. from the City’s local hiring and local apprentice employment requirements, pursuant to SCMC Chapter 3.10.

BACKGROUND: Each year the City of Santa Cruz (City) budgets funds in the Wastewater Enterprise Fund (m409659) to replace or rehabilitate worn equipment at the Wastewater Treatment Facility (WWTF) to maintain and operate the facility to meet environmental goals and regulatory requirements. The Cogeneration Building provides power and crucial heat for various facilities including the digesters and the administration offices. This heat is generated by the Cogen 1 generator, a dual fire boiler, and a standby boiler.

Currently, the dual fire boiler is out of service due to control system failure. The current control system is outdated, no longer supported, and needs to be replaced. Recent boiler inspections showed that the dual fire boiler itself is still in good condition. Public Works staff propose replacing the control system and burner to bring the dual fire boiler back to full and improved functionality.

DISCUSSION: Section 3.08.150 of the Purchasing Ordinance allows the Purchasing Manager to award a contract without competition when there is only one source for the required item/service. The existing dual fire boiler is a Cleaver Brooks (CB) product, and R.F.

MacDonald Co. is the sole factory authorized representative for CB products in the State of California. To be an authorized factory representative, technicians from each representative office are required by CB to attend the CB certification courses conducted throughout each year that provide technicians with training on maintenance and repair work. CB does not warrant or stand behind work performed by anyone other than a factory authorized representative on CB products. The existing controls will be replaced with HAWK 1000 boiler controls with all

17.1 necessary switches and parts. New natural gas and digester gas trains, boiler regulators, and a new Cleaver Brooks Burner will be installed.

The Purchasing Manager concurs that R.F. Macdonald Co. is the only company able to provide and install the replacement control system, burner, and all necessary switches and parts.

In addition, Public Works Staff requests an exemption for R.F. MacDonald from the City’s local hiring and apprentice employment requirements, pursuant to SCMC Chapter 3.10, as part of the City’s construction contract. Generally, the SCMC requires “all city contracts for public works or improvements … shall contain provisions pursuant to which the contractor promises to make a good-faith effort… to employ qualified individuals who are . . . residents of the county of Santa Cruz” so that fifty percent of the contractor’s project work force are local residents. (SCMC Ch.

3.10.010). The same applies for apprentices, where “all contracts for a public works project” must include “provisions [for] each contractor or subcontractor [to] make good faith efforts to employ apprentices” enrolled in an apprenticeship program serving the Monterey Bay Area. (Id.) Chapter 3.10.080(2) permits Council to exempt a project from the City’s local hiring and apprentice employment requirements when “the work is of a highly specialized nature as determined by the City Council when the contract specifications are approved.” R.F. MacDonald’s work is “highly specialized” as it is the sole factory authorized representative for CB products in the state of California. As mentioned, CB provides certification courses to its contracted representative offices. Any work on CB products must be performed by certified technicians from factory authorized representatives, who may not be local to Santa Cruz.

FISCAL IMPACT: The estimated $159,793.70 contract amount is available in the Public Works’ FY 2023 Wastewater Enterprise Fund budget. There is no impact to the General Fund.

Prepared By:

Tim Wong
Assistant Engineer I
Submitted By:

Nathan N. Nguyen
Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. LOCATION MAP.PDF

2. SPECIFICATIONS.DOCX

17.2 Lot #19
Location Map
Boiler Control System Replacement Project
February 7, 2023
N

PROJECT AREA
Prepared By: Tim Wong

17.3 BOILER CONTROL SYSTEM REPLACEMENT PROJECT
PROJECT NO. m409659
1 PUBLIC WORKS DEPARTMENT

SPECIFICATIONS AND CONTRACT DOCUMENTS
FOR

BOILER CONTROL SYSTEM REPLACEMENT PROJECT
CITY PROJECT NO. m409659

SANTA CRUZ CITY COUNCIL
Fred Keeley, Mayor
Renee Golder, Vice Mayor
Martine Watkins
Sandy Brown
Scott Newsome
Shebreh Kalantari-Johnson
Sonja Brunner
Matt Huffaker, City Manager
Bonnie Bush, City Clerk Administrator
Anthony P. Condotti, City Attorney
Nathan Nguyen, Public Works Department Director
Vacant, Assistant Public Works Director

17.4 BOILER CONTROL SYSTEM REPLACEMENT PROJECT
PROJECT NO. m409659
2 PROPOSAL
Wastewater Treatment Facility Screening Conveyor Rebuild Project – Project Cost
PROPOSAL BY: _ R. F. MACDONALD CO. _ ___(510) 784 0110______ Contractor's Name Phone Number
ITEM NO. ITEM DESCRIPTION UNIT UNIT PRICE TOTAL
1 Material Cost 1 $85,267 $85,267.00
2 Labor Cost 1 $60,000 $60,000.00
SUBTOTAL $145,267.00
10% Contingency $14.526.70
TOTAL $159,793.70

17.5 BOILER CONTROL SYSTEM REPLACEMENT PROJECT
PROJECT NO. m409659
3 DIR COMPLIANCE AFFIDAVIT
Name of Bidder:

Project Name/Number:

California Labor Code requires private contractors, and their subcontractors, to pay prevailing wages to their workers when working on a project funded by a public entity. Prevailing wages are due if the project costs more than $1,000, and involves the following construction work: new construction, alteration, demolition, installation, repair and maintenance. Contractors must also make an attempt to hire apprentices when the total project costs exceed $30,000.

Prior to commencement of the Contract, all Contractors and subcontractors are required to register, and maintain active registration throughout the duration of the contract with the California Department of Industrial Relations (DIR). For information regarding registration, please go to https://www.dir.ca.gov/Public-Works/PublicWorks.html.
• No contractor or subcontractor may be listed on a bid proposal for a public works project (effective March 1, 2015) unless registered with the DIR pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)]. • No contractor or subcontractor may be awarded a contract for public work on a public works project (effective April 1, 2015) unless registered with the DIR pursuant to Labor Code section 1725.5.
• DIR registration is required each fiscal year (July 1 – June 30).

I, the Bidder, certify that:

I acknowledge that this project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. I am aware of the provisions of Senate Bill SB 854 and Labor Code sections 1725.5, 1771.1(a), 1774-1776, 1777.5, 1813, and 1815 which require Contractors to comply with all labor compliance requirements, including but not limited to, prevailing wage requirements, Public Works Contractor Registration Program, Electronic Certified Payroll Reporting, and other requirements described in the DIR website. I will comply with such provisions before commencing the performance of the work of this contract, and maintain compliance throughout the completion of said contract.

Signature Date
Print Name Title

17.6 BOILER CONTROL SYSTEM REPLACEMENT PROJECT
PROJECT NO. m409659
4 AGREEMENT
THIS AGREEMENT, made and entered into this ________day of ______________, 20___ (“Effective Date”), by and between the CITY OF SANTA CRUZ, a municipal corporation, hereinafter called “City,” and _________________________________, hereinafter called “Contractor;”
WITNESSETH, that the parties hereto do mutually agree as follows:

ARTICLE I
That for and in consideration of the covenants and agreements herein contained and the payments at the prices stated in the bid proposal attached hereto, and by this reference made a part hereof, the Contractor hereby covenants and agrees to furnish any and all required supervision, labor, equipment, material, services, and transportation, as set forth in the Contract Documents as hereinafter defined, and will bear any and all other expense necessary or incidental to the performance of certain work hereinafter specified, and to build, construct, reconstruct, pave or repave and complete improvements for:

BOILER CONTROL SYSTEM REPLACEMENT PROJECT
(the “Project”) in strict conformity and compliance with the Contract Documents, and to do everything required by this Agreement, and by said Contract Documents as hereinafter defined (the “Work”).

ARTICLE II
It is expressly agreed and understood by each and every party to this Agreement that the following documents are hereby incorporated and made a part of this Agreement (hereinafter the “Contract Documents”):

1. All applicable Laws and Regulations

2. Duly issued Agreement modifications, and allowance authorization(s) signed by the City, in chronological order by effective date of each.

3. This Agreement, including:
a. Exhibit A – Contractor’s Quote, dated 12/08/2022, including all attachments

4. Labor and Material Bond (Payment Bond)

5. Performance Bond

6. Maintenance Bond

7. Insurance Certificates, including Contractor’s Certificate Relating to Worker’s Compensation

8. General Conditions

9. Standard Specifications, including the City Specifications The parties to this Agreement do hereby expressly acknowledge that they have read, understand, and promise to comply with each and every provision of Contract Documents. There are no Contract Documents other than those indicated above. In the event inconsistencies, conflicts, or ambiguities

17.7 BOILER CONTROL SYSTEM REPLACEMENT PROJECT
PROJECT NO. m409659
5 between and among the Contract Documents are discovered, the parties shall attempt to resolve any ambiguity, conflict, or inconsistency informally, recognizing that the Contract Documents shall take precedence in the order in which they are listed above. Inclusion of an order of precedence herein does not in any way negate or reduce Contractor’s obligation to report conflicts, discrepancies, apparent omissions, and similar matters to the City.

ARTICLE III
It is expressly agreed and understood by the Contractor that the “Standard Specifications” consists of the documents on file at the Public Works Department of the City of Santa Cruz, entitled:

1. City of Santa Cruz Department of Public Works, Department of Parks and Recreation, and Water Department 2002 Standard Specifications (“City Specifications”).

ARTICLE IV
Contractor shall conform to all laws and regulations of the United States and the State of California, as well as laws of Santa Cruz, as may be applicable to the Project. In addition, the City Council of the City of Santa Cruz endorses the MacBride Principles and the Peace Charter and encourages all companies doing business in Northern Ireland to abide by the MacBride Principles.

ARTICLE V
The City hereby contracts to pay said Contractor the prices provided for in the Bid Proposal in the manner, to the extent, and at the times set forth in the Contract Documents.

ARTICLE VI
It is agreed by the parties hereto that the acceptance of the Contractor's performance will be made only by an affirmative action of the City of Santa Cruz City Council in session, evidenced by resolution, and upon the filing by the Contractor of a Release of all Claims of every nature on account of work done under this Agreement, together with an affidavit that all claims have been fully paid.

The acceptance by the Contractor of said final payment shall constitute a waiver of all claims against the City arising out of or in connection with this Agreement.

ARTICLE VII
To the fullest extent permitted by law, Contractor shall defend, indemnify, and hold harmless the City and its respective officials, officers, directors, partners, employees, and authorized agents (“Indemnitees”) from and against any and all claims, suits, actions, judgments, demands, liabilities, losses, damages, expenses, including attorneys’ fees and costs of litigation (collectively, “Losses”), arising from personal or bodily injuries, death, property damage, or otherwise in any way related to, connected with, or resulting from the obligations or performance of the Work under this Agreement by Contractor, subcontractors, and their respective officers, directors, employees, agents, or other third parties directly or indirectly employed by or under the authority or control of Contractor or subcontractors. This provision shall not be deemed to require the Contractor to

17.8 BOILER CONTROL SYSTEM REPLACEMENT PROJECT
PROJECT NO. m409659
6 indemnify or hold harmless an Indemnitee for any Loss proximately caused by the sole or active negligence or willful misconduct of the Indemnitee, as determined by a court or other adjudicatory body of competent jurisdiction.

Contractor acknowledges and agrees that Contractor’s obligation to defend the City and the other Indemnitees arises at the time such Losses is tendered to Contractor by the Indemnitees and continues at all times until finally resolved, and/or decided by an adjudicatory body or a court of competent jurisdiction. This provision shall survive the termination of the Agreement or the completion of the Work.

This indemnification clause supersedes any other indemnification clauses contained in any other Contract Documents.

ARTICLE VIII
Article Intentionally Omitted

ARTICLE IX
General Terms

1. Complete Agreement. This Agreement, along with the terms and conditions in the Contract Documents and 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.

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

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

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

5. 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.

6. 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.

7. 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.

17.9 BOILER CONTROL SYSTEM REPLACEMENT PROJECT
PROJECT NO. m409659
7 Signature Page to Follow

17.10 BOILER CONTROL SYSTEM REPLACEMENT PROJECT
PROJECT NO. m409659
8 IN WITNESS WHEREOF, this Agreement is executed by the City Manager of the City of Santa Cruz, under and pursuant to a resolution of the City Council authorizing such execution, and the Contractor has affixed his/her signature hereto the day and year first hereinabove written.

Approved As To Form:

By: ______________________________ Date: __________________ Office of the City Attorney

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

CONSULTANT
By: ______________________________ Date: __________________ Printed: ___________________________ Title: __________________

CONSULTANT
By: ______________________________ Date: __________________ Printed: ___________________________ Title: __________________

17.11 BOILER CONTROL SYSTEM REPLACEMENT PROJECT
PROJECT NO. m409659
9 LABOR AND MATERIAL BOND
WHEREAS, as the City Council of the City of Santa Cruz, a municipal corporation in the County of Santa Cruz, State of California (the “City”), has awarded to hereinafter designated as the “Principal”, a contract for constructing the work or improvement described in the contract documents entitled: BOILER CONTROL SYSTEM REPLACEMENT PROJECT, adopted by the City Council of the City , 20___ and
WHEREAS, said Principal is required under the terms of said contract to furnish a Labor and Material Bond, the surety of this bond will pay the same to the extent hereinafter set forth; and WHEREAS, the said Principal is about to enter into the annexed contract with the City to complete the work or improvement referred to above for the City, all as more particularly and in detail shown upon the Contract Documents filed in the Office of the City Clerk of the City:

NOW, THEREFORE, we, the Principal, and , a
corporation organized and existing under and by virtue of the laws of the State of as “Surety”, are held and firmly bound unto the City of Santa Cruz in the sum of dollars ($ ), such sum being not less than one hundred percent (100%) of the estimated contract cost of the work, lawful money of the United States of America, to be paid to the City of Santa Cruz, for payment of which sum, well and truly to be made, we hereby bind ourselves, our heirs, administrators, executors, successors and assign jointly and severally.

THE CONDITION OF THIS OBLIGATION IS SUCH, that if said Principal or its heirs, executors, administrators, successors or assigns, shall fail to pay for any materials, provisions, vendor supplies, or equipment as provided in the contract documents, upon, for, or about the performance of the work contracted to be done, or for any work or waiver thereon of any kind, or for amounts due under the Unemployment Insurance Code with respect to work or labor performed by any such claimant, or fails to pay any of the persons authorized under Civil Code Section 9100 to assert a claim against a payment bond, or fails to pay for any amounts required to be deducted, withheld, and paid over to the Franchise Tax Board for the wages of employees of the Principal or his/her subcontractor pursuant to Section 18806 of the Revenue and Taxation Code, or fails to pay for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the principal and all subcontractors with respect to such work and labor that the surety or sureties will pay for the same, in an amount not exceeding the sum specified in this bond, and also, in case suit is brought upon the bond, will pay, in addition to the face amount hereof, a reasonable attorney's fee, to be fixed by the Court.

The condition of this obligation is such that its terms inure to the benefit of any of the persons and entities authorized in Civil Code Section 9100 to assert a claim against a payment bond so as to give a right of action to such persons or entities or their assigns in any suit brought upon or action to enforce liability on the bond.

The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the contract or to the work to be performed thereunder shall in any manner affect its obligation upon this bond, and it does hereby explicitly waive notice of

17.12 BOILER CONTROL SYSTEM REPLACEMENT PROJECT
PROJECT NO. m409659
10 any such change, extension of time, alteration or addition to the terms of the contract or to the work to be performed thereunder, and further explicitly hereby waives its rights under Civil Code Section 2819.

IN WITNESS WHEREOF, the above parties have executed this instrument under their seals this day of , 20_____, and duly signed by its undersigned
representative, pursuant to the authority of its governing body.

PRINCIPAL:

Firm name:

Printed name:

Signature: Date:

Title:

SURETY:

Firm name:

Printed name:

Signature: Date:

Title:

I hereby approve the form of the within bond.

City Attorney Date
(Note: Signatures of those executing for the surety as an Attorney-in-Fact must include a Notary Acknowledgement.)

17.13 BOILER CONTROL SYSTEM REPLACEMENT PROJECT
PROJECT NO. m409659
11 FAITHFUL PERFORMANCE BOND
WHEREAS, the City Council of the City of Santa Cruz, a municipal corporation in the County of Santa Cruz, State of California (the “City”), and
hereinafter designated as “Principal” have entered into an agreement whereby Principal agrees to install and complete the work or improvement described in the contract documents entitled: BOILER CONTROL SYSTEM REPLACEMENT PROJECT, adopted by the City Council of the City on , 20__; and
WHEREAS, said Principal is about to enter into the annexed agreement with the City as is required to furnish security for the faithful performance of said Agreement.

NOW, THEREFORE, we, the Principal, and , a corporation
organized and existing under and by virtue of the laws of the State of , as “Surety”, are held and firmly bound unto the City, in the sum of ($ ), such sum being not less than one hundred percent (100%) of the estimated contract cost of the work, lawful money of the United States of America, to be paid to the City, for payment of which sum, well and truly to be paid, we hereby jointly and severally bind ourselves, our heirs, administrators, executors, successors and assigns, by these presents; NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that if the above bound Principal, its heirs, executors, administrators, successors, or assigns will in all things abide by and well and truly keep and perform the covenants, conditions and provisions in the said agreement and any alteration thereof made as therein provided, on his or her part, to be kept and performed at the time and in the manner therein specified, and in all respects according to the true intent and meaning, and will indemnify and save harmless the City, its officers and agents, and employees, as therein stipulated, then this obligation will become null and void, otherwise it will be and remain in full force and effect.

As a part of the obligation secured hereby and in addition to the face amount specified therefore, there will be included costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by the City.

As a condition precedent to the satisfactory completion of the said contract, an obligation in the amount of ($ ), being not less than ten percent (10%) of the estimated contract cost, will remain in force for a period of one (1) year after the official acceptance of said work, during which time if the Principal, its heirs, executors, administrators, successors or assigns will fail to make full, complete and satisfactory repairs and replacements or totally protect the City of Santa Cruz from loss or damage made evident during said period of one (1) year from the date of official acceptance of said work and resulting from or caused by defective materials or faulty workmanship in the prosecution of the work done, the above obligation in the sum of ($ ), will remain in full force and effect, otherwise the obligation will be discharged.

However, notwithstanding any other provisions of this paragraph, the obligation for the surety hereunder will continue so long as any obligation of the Principal remains.

17.14 BOILER CONTROL SYSTEM REPLACEMENT PROJECT
PROJECT NO. m409659
12 The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the contract or to the work to be performed thereunder or the specifications will in any manner affect this obligation upon this bond, and it does hereby explicitly waive notice of any such changes, extensions of time, alterations, or additions to the terms of the contract or to the work to be performed thereunder, or to the specifications, and it further explicitly hereby waives its rights under California Civil Code § 2819.

IN WITNESS WHEREOF, the parties have executed this instrument under their seals this day of , 20___, and duly signed by its undersigned representative, pursuant to the authority of its governing body.

PRINCIPAL:

Firm name:

Printed name:

Signature: Date:

Title:

SURETY:

Firm name:

Printed name:

Signature: Date:

Title:

I hereby approve the form of the within bond.

City Attorney Date
(Note: Signatures of those executing for the surety as an Attorney-in-Fact must include a Notary Acknowledgement.)

17.15 BOILER CONTROL SYSTEM REPLACEMENT PROJECT
PROJECT NO. m409659
13 MAINTENANCE BOND
WHEREAS, the City of Santa Cruz, a municipal corporation, in the County of Santa Cruz, State of California (the “City”), has awarded to _______________________, hereinafter designated as the "Principal," a contract for constructing the work or improvement described in the contract documents entitled:
“Boiler Control System Replacement Project”
adopted by the City Council of the City on the __ day of , 20__, and, WHEREAS, said Principal is about to enter into the annexed contract with the City.

NOW, THEREFORE, we, the Principal, and ____________________________________, a corporation organized and existing under and by virtue of the laws of the State of California, as “Surety”, are held and firmly bound unto the City, in the sum of dollars ($____________) being not less than ten percent (10%) of the estimated contract costs of the work, to be paid to the City, for the payment of which sum, well and truly to be paid, we hereby jointly and severally bind ourselves, our heirs, administrators, executors, successors and assigns; NOW, THEREFORE THE CONDITION OF THIS OBLIGATION IS SUCH, that if the Principal, his/her heirs, executors, administrators, successors, or assigns shall in all things abide by and well and truly keep and perform the covenants, conditions and agreements in the said contract and any alteration thereof made as herein provided, on his/her or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to the true intent and meaning, and shall indemnify and save harmless the City, its officers and agents as therein stipulated, that this obligation shall be discharged, otherwise it shall be and remain in full force and effect.

As a condition precedent to the satisfactory completion of the said contract, the above obligation in the amount of dollars dollars ($_________), being not less than ten percent (10%) of the estimated contract cost, shall remain in force for a period of one (1) year after the completion and acceptance of the said work, during which time if the Principal, his/her or its heirs, executors, administrators, successors or assigns shall fail to make full, complete and satisfactory repairs and replacements or totally protect the City of Santa Cruz from loss or damage made evident during said period of one (1) year from the date of official acceptance of said work and resulting from or caused by defective materials or faulty workmanship in the prosecution of the work done, the above obligation in the sum of dollars ($_________), shall remain in full force and effect, otherwise the obligation shall be discharged.

However, notwithstanding any other provisions of this paragraph, the obligation of the surety hereunder shall continue so long as any obligation of the Principal remains.

The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the contract or to the work to be performed thereunder or the Contract Documents shall in any way effect its obligation on this bond, and it does hereby waive notice of any such changes, extensions of time, alterations, or additions to the terms of the contract

17.16 BOILER CONTROL SYSTEM REPLACEMENT PROJECT
PROJECT NO. m409659
14 or to the work or to the specifications, and the surety does hereby waive its rights under California Civil Code Section 2819.

IN WITNESS WHEREOF, the above parties have executed this instrument under their seals this day of , 20_____, and duly signed by its undersigned
representative, pursuant to the authority of its governing body.

PRINCIPAL:

Firm name:

Printed name:

Signature: Date:

Title:

SURETY:

Firm name:

Printed name:

Signature: Date:

Title:

I hereby approve the form of the within bond.

City Attorney Date
(Note: Signatures of those executing for the surety as an Attorney-in-Fact must include a Notary Acknowledgement.)

17.17 BOILER CONTROL SYSTEM REPLACEMENT PROJECT
PROJECT NO. m409659
15 Contractor’s Certificate Relating to Worker’s Compensation I, THE UNDERSIGNED, HEREBY CERTIFY that at all times during the performance of any work under contract with the City of Santa Cruz (check one of the following) for BOILER CONTROL SYSTEM REPLACEMENT PROJECT:
□ I have and will maintain in full force and effect Workers’ Compensation Insurance, as required by Section 3700 of the Labor Code, for the performance of the Work. My Workers’ Compensation insurance carrier and policy number are:

Insurance Carrier:

Policy Number:
□ I have and will maintain in full force and effect and have attached hereto a Certificate of Consent to Self-Insure issued by the Director of Industrial Relations, as provided for by Section 3700 of the Labor Code, for the performance of the Work.

I declare under penalty of perjury that the foregoing is true and correct and executed on , 20 at , California.

CONTRACTOR
Name:

Title:

17.18 BOILER CONTROL SYSTEM REPLACEMENT PROJECT
PROJECT NO. m409659
16 GENERAL CONDITIONS

1. Failure to Execute Contract
Failure of the Contractor to execute the Contract and provide all acceptable bonds and documents as required by the Contract Documents as provided herein within ten (10) calendar days after such Contractor has received the Contract for execution shall be just cause for the annulment of the award and the forfeiture of the proposed guarantee. This period of time shall be subject to extension for such further period as may be agreed upon in writing between the City and Contractor concerned.

2. Contractor's Insurance
Contractor will procure and maintain for the duration of the contract, insurance 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 Contractor, its/his agents, representatives, employees or subcontractors.

A. CERTIFICATE REQUIREMENTS
The City will be issued a Certificate of Insurance (a Memorandum of Understanding will not be accepted) with the following minimum requirements:
 Certificate(s) will show current policy number(s) and effective dates,  Coverage and policy limits will meet, or exceed, requirements below,  The Certificate Holder will be City of Santa Cruz, Risk Management, 333 Front Street., Suite 200, Santa Cruz, CA 95060,
 Certificate will be signed by an authorized representative,  An endorsement will be provided to show the City, its officers, officials, employees, agents, and volunteers as additional insureds.

B. MINIMUM SCOPE AND LIMITS OF INSURANCE
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 Consultant. Coverage will be at least as broad as:
 COMMERCIAL GENERAL LIABILITY (CGL): $2,000,000 PER OCCURRENCE; $2,000,000

AGGREGATE
Proof of coverage for $2 Million per occurrence including products and completed operations, property damage, bodily injury, personal and advertising injury will be provided on Insurance Services Office (ISO) Form CG 00 01 covering CGL. If a general aggregate limit applies, either the general aggregate limit will apply separately to this project/location or the general aggregate limit will be at least twice the required occurrence limit.
 AUTOMOBILE LIABILITY:

Proof of coverage for $1,000,000 provided on ISO Form Number CA 00 01 covering any auto (Code 1), or if Consultant has no owned autos, hired, (Code 8) and non-owned autos

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17 (Code 9), per accident for bodily injury and property damage.  WORKERS’ COMPENSATION AS REQUIRED BY THE STATE OF CALIFORNIA, WITH STATUTORY LIMITS, AND EMPLOYER’S LIABILITY INSURANCE: $1,000,000 per accident for bodily injury or disease.

The Worker’s Compensation policy must be endorsed with a waiver of subrogation in favor of the City for all work performed by the Consultant and its employees. (Not required if Consultant provides written verification it has no employees) - If Contractor has no employees, Contractor shall complete and sign a Workers’ Compensation Exemption Declaration and Release of Liability C. OTHER INSURANCE PROVISIONS
If Consultant maintains broader coverage and/or higher limits than the minimums shown above, the City of Santa Cruz requires and shall be entitled to the broader coverage and/or higher limits maintained by Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Santa Cruz.

The insurance policies are to comply with the following provisions:
 ADDITIONAL INSURED STATUS
The City, its officers, officials, employees, agents, and volunteers are to be covered as additional insureds on the CGL, and automobile insurance (if transporting hazardous materials policy(ies) with respect to liability arising out of work or operations performed by or on behalf of 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 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 CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 (if a later edition is used).  PRIMARY COVERAGE
For any claims related to this Agreement, Consultant’s insurance coverage will be primary insurance as respects the City, its officers, officials, employees, agents, and volunteers.

Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents, or volunteers will be excess of Consultant’s insurance and will not contribute with it.
 NOTICE OF CANCELLATION
Each insurance policy required above shall state that the coverage shall not be canceled, except with notice to the City.
 WAIVER OF SUBROGATION
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, including attorney’s fees under such insurance. Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.
 EXCESS LIABILITY/UMBRELLA INSURANCE POLICIES

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18 The excess/liability policies will provide similar coverage as the primary CGL policy with no new exclusions - Excess liability insurance must follow form the terms, conditions, definitions, and exclusions of the underlying CGL insurance. The excess/umbrella policy must also be written on a primary and noncontributory basis for an additional insured, and that it will apply before any other insurance that is available to such additional insured which covers that person or organization as a named insured, and we will not share with that other insurance.

The policy regarding Limits of Insurance regarding Aggregates must provide that the aggregate limits if applicable shall apply in the same manner as the aggregate limits shown in the Schedule of the Underlying Insurance.
 SELF-INSURED RETENTIONS
Self-insured retentions must be declared to and approved by the City. City may require Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related expenses. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.  ACCEPTABILITY OF INSURERS
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:

VII, unless otherwise acceptable to the City.
 CLAIMS MADE POLICIES
If any of the required policies provide coverage on a claims-made basis:

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 of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL,CPL, and automobile Policy(ies) listing all policy endorsements to be approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning will not waive the 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.

D. 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.

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19 E. 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.

3. Claims
A. Definition of “Claim”.

All provisions of California Public Contract Code Section 9204 are incorporated into and form an integral part of the Contract Documents for this Project. The City and Contractor shall comply with California Public Contract Code Section 9204 when applicable.

As used herein, the term “Claim” means a separate written demand or assertion by Contractor sent by registered mail or certified mail, with return receipt requested, for one or more of the following arising out of or related to the Contract Documents or the performance of the Work: (A) a time extension, including, without limitation, for relief from damages or penalties for delay assessed by the City under the Contract; (B) payment by the City of money or damages arising from work done by, or on behalf of, the Contractor pursuant to the Contract and payment for which is not otherwise expressly provided or to which the claimant is not otherwise entitled; (C) payment of an amount that is disputed by the City, as defined in Public Contract Code Section 9204(c).

A Claim does not include, and the procedures for processing of Contractor Claims do not apply to the following:
(i) Claims respecting penalties for forfeitures prescribed by statute or regulation which a government agency is specifically authorized to administer, settle, or determine (other than penalties for delay assessed by the City under the Contract). (ii) Claims respecting personal injury, death, reimbursement, or other compensation arising out of or resulting from liability for personal injury or death. (iii) False claims liability under California Government Code Section 12650, et seq. (iv) Defects in the Work first discovered by City after final payment by City to Contractor. (v) Claims respecting stop notices.
(vi) The right of City to specific performance or injunctive relief to compel performance of any provision of the Contract Documents or for other City claims against the Contractor.

B. Time Period for Submission of Claim.

If a Claim involves an adjustment to the Contract Sum or to the Contract Time due to Extra Work, then the Claim arises upon issuance of a decision denying, in whole or in part, Contractor’s Change Order Request. All other Claims arise when Contractor discovers, or should have discovered, the circumstances giving rise to the Claim (even if Contractor has not yet been damaged or delayed).

A Claim that does not involve an adjustment to the Contract Sum or Contract Time for Extra Work may be asserted if, and only if, Contractor gives written notice of intent to file the Claim to the City within five (5) calendar days of the date the Claim arises. A written notice of intent to file a

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20 Claim shall be valid if, and only if, it identifies the event or condition giving rise to the Claim, states its probable effect, if any, with respect to Contractor’s entitlement to an adjustment of the Contract Sum or Contract Time, and complies with the requirements of Section 3(C), below.

All Claims and supporting documentation and certifications must be filed as soon as possible, but no later than thirty (30) calendar days after the Claim arises. No Claims shall be filed after the final payment has been issued unless otherwise permitted by law.

C. Reasonable Documentation.

The Claim must include the following:
(i) A statement that it is a Claim and a request for a decision on the Claim; (ii) A detailed factual narrative of events fully describing the nature and circumstances giving rise to the Claim, including but not limited to, necessary dates, locations, and items of Work effected and reasonable documentation to support the Claim; (iii) A certification, executed by each Subcontractor claiming not less than 5% of the total monetary amount sought by the Claim, that the Subcontractor’s portion of the Claim is filed in good faith.
(iv) If the Claim involves an adjustment to the Contract Sum or Contract Time for Extra Work, a statement demonstrating that a Change Order Request was submitted in a timely manner as required by the Contract Documents. If the Claim does not involve an adjustment to the Contract Sum or Contract Time for Extra Work, a statement demonstrating that a notice of intent to file the Claim was submitted in a timely manner as required by the Contract Documents.
(v) A detailed justification for any remedy or relief sought by the Claim, including, without limitation:
a. A detailed cost breakdown in the form required for submittal of Change Order Requests, including an estimate of the costs incurred or to be incurred. To the extent costs have been incurred when the Claim is submitted, the Claim must include actual cost records (including, without limitation, payroll records, material and rental invoices, and the like) demonstrating that costs claimed have actually been incurred. To the extent costs have not yet been incurred at the time of Claim submittal, actual cost records must be submitted on a current basis not less than once a month during any periods costs are incurred.
b. Copies of actual job cost records demonstrating that the costs have been incurred. c. If the Claim is based on an error, omission, conflict, or ambiguity in the Contract Documents: (1) a sworn statement by Contractor and any Subcontractors or Subsubcontractors involved in the Claim, to the effect that the error, omission, conflict, or ambiguity was not discovered prior to submission of the Bid, or (2) if not discovered, a statement demonstrating that the error, omission, conflict, or ambiguity could not have been discovered by Contractor, its Subcontractors or Subsubcontractors in exercise of the degree of care required of them under the Contract Documents for review of the Bid Documents prior to submission of the Bid. (vi) If the Claim involves a request for adjustment of the Contract Time, written documentation demonstrating that Contractor has complied with the requirements of the Contract Documents pertaining to proving the right to an extension of time and

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21 demonstrating that Contractor is entitled to an extension of time under the Contract Documents.
(vii) A written certification signed by a responsible managing officer of Contractor’s organization, who has the authority to sign subcontracts and purchase orders on behalf of Contractor and who has personally investigated and confirmed the truth and accuracy of the matters set forth in such certification, in the following form:
“I hereby certify under penalty of perjury under the laws of the State of California that I am a managing officer of (Contractor’s name) and that I have reviewed the Claim presented herewith on Contractor’s behalf and/or on behalf of (Subcontractor's/Subsubcontractor’s name(s)) and that the following statements are true and correct. a. The facts alleged in or that form the basis for the Claim are true and accurate. b. The Claim is submitted in good faith.
c. The Change Order Request was timely submitted, as required by the Contract Documents.
d. Contractor does not know of any facts or circumstances, not alleged in the Claim, that by reason of their not being alleged render any fact or statement alleged in the Claim materially misleading.
e. Contractor has, with respect to any request for money or damages alleged in or that forms the basis for the Claim, reviewed the job cost records (including those maintained by Contractor and by any Subcontractor or Sub-subcontractor, of any Tier, that is asserting all or any portion of the Claim) and confirmed with reasonable certainty that the Losses or damages suffered by Contractor and/or such Subcontractor or Sub-subcontractor were in fact suffered in the amounts and for the reasons alleged in the Claim.
f. Contractor has, with respect to any request for extension of time or claim of Delay, disruption, hindrance or interference alleged in or that forms the basis for the Claim, reviewed the job schedules (including those maintained by Contractor and by any Subcontractor or Sub-subcontractor, of any Tier, that is asserting all or any portion of the Claim) and confirmed on an event-by-event basis that the delays or disruption suffered by Contractor and /or such Subcontractor or Sub-subcontractor were in fact experienced for the durations, in the manner, and with the consequent effects on the time and/or sequence of performance of the Work, as alleged in the Claim; and.
g. Contractor has not received payment from City for, nor has Contractor previously released City from, any portion of the Claim.

Signature: ___________________________
Name: ______________________________
Title: _______________________________
Company: ___________________________
Date: _______________________________
D. Assertion of Claims.

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22 (i) Notwithstanding the making of any Claim or the existence of any dispute regarding any Claim, unless otherwise directed by City, Contractor shall not delay, slow, or stop performance of the Work, but shall diligently proceed with performance in accordance with the Contract Documents and City will continue to make payments as required by the Contract Documents.
(ii) All Claims and supporting documentation must be sent to the City by registered mail or certified mail with return receipt requested.
(iii) Strict compliance with these requirements is conditions precedent to Contractor’s right to an informal conference to meet and confer to resolve a Claim, mediate a Claim, or arbitrate or litigate a Claim. The failure of Contractor to strictly comply with the requirements of this Section constitutes a failure by Contractor to exhaust its administrative remedies with the City, thereby denying any court or arbitration panel of jurisdiction to adjudicate the Claim.
(iv) There shall be no waiver of any of the rights set forth in California Public Contract Code Section 9204; provided, however, that (i) upon receipt of a Claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action or binding arbitration, as applicable; and (ii) the City may prescribe reasonable Change Order, Claim, and Dispute Resolution Procedures and requirements in addition to the provisions of this section, so long as the contractual provisions do not conflict with or otherwise the timeframes and procedures set forth in Public Contract Code Section 9204.
(v) The City’s right to commence the Contract dispute resolution process shall arise at any time following the City’s actual discovery of the circumstances giving rise to the dispute. Nothing herein shall preclude the City from asserting disputes in response to a Claim asserted by Contractor.

E. Decision of City on Claims.
(i) Pursuant to Public Contracting Code section 9204(d), upon receipt of a Claim, the City shall conduct a reasonable review of the claim and, within 45 days, shall provide the Contractor a written statement identifying what portion of the Claim is disputed and what portion is undisputed. Upon receipt of the Claim, the Owner’s Representative, City, and Contractor may, by mutual agreement, extend the time period provided in this Section.

If City determines that additional supporting data are necessary to fully evaluate a Claim, City will request such additional supporting data in writing. Such data shall be furnished by Contractor to City no later than 10 days after the date of such request. Any payment due to Contractor by City on an undisputed portion of the Claim shall be processed and made within 60 days after the written statement is issued.
(ii) If the City needs approval from its governing body to provide the Contractor with a written statement identifying the disputed portion and the undisputed portion of the Claim, and the governing body does not meet within the forty-five (45) days or within the mutually agreed to extension of time following receipt of a Claim sent by registered mail or certified mail,

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23 return receipt requested, the City shall have up to three (3) days following the next duly publicly noticed meeting of the governing body after the forty-five (45) day period, or extension, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion.
(iii)Failure by the City to respond to a Claim from Contractor within the time periods described in this Section 3 and California Public Contract Code Section 9204 or to otherwise meet the time requirements shall result in the Claim being deemed rejected in its entirety. A Claim that is denied by reason of the City's failure to have responded to a Claim, or its failure to otherwise meet the time requirements of this Article 4.2 and California Public Contract Code Section 9204, shall not constitute an adverse finding with regard to the merits of the Claim or the responsibility or qualifications of the Contractor. (iv)Any payment due on an undisputed portion of the Claim shall be processed and made within 60 days after the City issues its written statement. (v) Amounts not paid in a timely manner as required by this Section shall bear interest at 7 percent per annum, pursuant to Public Contracting Code section 9204(d)(4). (vi)If a subcontractor or a lower tier subcontractor lacks standing to assert a Claim against the City because privity of contract does not exist, the Contractor may present to the City a Claim on behalf of a subcontractor or a lower tier subcontractor. A subcontractor may request in writing, either on its own behalf or on behalf of a lower tier subcontractor, that the Contractor present a Claim for work which has been performed by the subcontractor or lower tier subcontractor on behalf of the subcontractor. The subcontractor requesting the Claim be presented to the City shall furnish reasonable documentation supporting the Claim. Within 45 days of receipt of this written request, the Contractor shall notify the subcontractor in writing as to whether the Contractor presented the Claim to the City and, if the Contractor did not present the Claim, provide the subcontractor with a statement of the reasons for not having done so.

F. Meet and Confer Conference.

If the Contractor disputes the City's written response, or if the City fails to respond to a Claim issued pursuant to Section 3(E) within the time prescribed, the Contractor may demand in writing an informal conference to meet and confer for settlement of the issue in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the City shall schedule a meet and confer conference within 30 days for settlement of the dispute.

G. Mediation.
(i) Within ten (10) business days following the conclusion of the meet and confer conference, specified in Section 3(F), if the Claim or any portion of the Claim remains in dispute, the City shall provide the Contractor a written statement identifying the portion of the Claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the Claim shall be processed and made within sixty (60) days after the City issues its written statement. Any disputed portion of the Claim, as identified by

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24 the Contractor in writing, shall be submitted to nonbinding mediation, with the City and the Contractor sharing the associated costs equally. The City and the Contractor shall mutually agree to a mediator within ten (10) business days after the disputed portion of the Claim has been identified in writing. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the Claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the Claim remaining in dispute shall be subject to applicable procedures outside this section.
(ii) For purposes of this Section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation, or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section. (iii)Unless otherwise agreed to by the City and the Contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Public Contract Code Section 20104.4 to mediate after litigation has been commenced.

H. Arbitration and Litigation.
(i) In the event mediation does not resolve the parties' dispute, the parties shall comply with the Arbitration provisions set forth in Public Contract Code Sections 10240 – 1024.13. (ii) Unless the City and Contractor otherwise agree in writing, the arbitration decision shall be binding upon the parties, made under and in accordance with the laws of the State of California, supported by substantial evidence, and in writing. If the total of all Claims or cross Claims submitted to arbitration is in excess of $50,000, the award shall contain the basis for the decision, findings of fact, and conclusions of law. Any arbitration award shall be subject to confirmation, vacation, or correction under the procedures and on the grounds specified in the California Code of Civil Procedure including without limitation Section 1296. The expenses and fees of the arbitrators and the administrative fees of the AAA shall be divided among the parties equally. Each party shall pay its own counsel fees, witness fees, and other expenses incurred for its own benefit. (iii)The City may, but is not required, to assert as a counterclaim any matter arising out of the claims asserted by Contractor in the arbitration. City’s failure to assert any such counterclaim in an arbitration shall be without prejudice to the City’s right to assert the counterclaim in litigation or other proceeding.
(iv)Any litigation shall be filed in the Superior Court of the State of California for the County of Santa Cruz.

I. Waiver.

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25 A waiver of or failure by the City to enforce any requirement in this Section 3 in connection with any Claim shall not constitute a waiver of and shall not preclude the City from enforcing such requirements in connection with any other Claims.

The Contractor agrees and understands that no oral approval, either express or implied, of any Claim shall be binding upon the City unless and until such approval is ratified by execution of a written Change Order.

4. Time of Completion
Attention is directed to the provisions in Section 8 (Commencement of Work, Time of Completion and Liquidated Damages) of the Standard Specifications and these General Conditions.

The Contractor shall promptly start the work and diligently prosecute the work to completion before the expiration of 120 working days after the date of the Notice to Proceed.

Full compensation for any additional costs occasioned by compliance with the provisions in this section shall be considered as included in the prices paid for the various contract items of work and no additional compensation will be allowed therefore.

5. Failure to Complete the Work on Time (Liquidated Damages) All time limits stated in the Contract Documents are of the essence. If the work is not completed by Contractor in the time specified in the Contract Documents, or within any period of extension authorized in writing by the City, it is understood that City will suffer damage; and it being impracticable and infeasible to determine the amount of actual damage, it is agreed that Contractor will pay the City, as fixed and liquidated damages, and not as a penalty, the sum of four hundred ($400) dollars for each calendar day of delay until the work is completed and accepted, and Contractor and his/her surety will be liable for the amount thereof; provided, however, that Contractor shall not be charged liquidated damages because of any delays in the completion of the work due to unforeseeable causes beyond the control and without the fault or negligence of Contractor.

Contractor shall, within ten (10) days from the beginning of any such delay, notify City in writing of the cause of the delay; whereupon City shall ascertain the facts and the extent of the delay and extend the time for completing the work when, in its judgment, the findings of fact justify such an extension. City's finding of fact thereon shall be final and conclusive on the parties hereto.

6. Existing Facilities
Prospective bidders shall visit the work site and determine for themselves the existing conditions at the Project site, including location of utilities. The Contractor shall take precaution so as to avoid damaging existing public facilities and private improvements.

In accordance with California Government Code Section 4215, the City assumes the responsibility for the timely removal, relocation, or protection of existing main or trunk line utility facilities located on the Project site if such utilities are not identified in the plans and specifications made a

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26 part of the invitation for bids. The City will compensate the Contractor for the costs of locating, repairing damage not due to the Contractor’s failure to exercise reasonable care, and removing or relocating existing main or trunk line utility facilities located at the Project site and not identified with reasonable accuracy in plans and specifications made a part of the invitation for bids. The City will also compensate the Contractor for the cost of equipment on the Project necessarily idled during such work. The Contractor will not be assessed liquidated damages for delay in completion of the project, when such delay was caused by the City’s or utility owner’s failure to provide for removal or relocation of such main or trunk line utility facilities.

Nothing in this provision or the Contract Documents will be deemed to require the City to indicate the presence of existing service laterals or appurtenances whenever the presence of such utilities on the Work site can be inferred from the presence of other visible facilities, such as buildings, meter, and junction boxes, on or adjacent to the Project site; provided, however, that nothing in this provision or the Contract Documents shall relieve the City from identifying main or trunk lines in the plans and specifications made a part of the invitation for bids.

Nothing in this provision or the Contract Documents will preclude the City from pursuing any appropriate remedy against the utility for delays which are the responsibility of the utility.

Nothing in this provision or the Contract Documents will be construed to relieve the utility from any obligation as required either by law or by contract to pay the cost of removal or relocation of existing utility facilities.

If the Contractor while performing the Work discovers utility facilities not identified by the City in the plans and specifications made a part of the invitation for bids, the Contractor must immediately notify the City and utility in writing.

Either the City or the utility, whichever owns existing main or trunk line utility facilities located on the Work site, shall have sole discretion to effect repairs or relocation work or to permit the Contractor to perform such repairs or relocation work at a reasonable price The Contractor will be required to work around public utility facilities that are to remain in place within the construction area or that are to be relocated and relocation operations have not been completed, and (s)he will be held liable to the owners of such facilities for any damage or interference with service resulting from his/her operations.

The exact locations of underground facilities and improvements within the construction area shall be ascertained by the Contractor before using equipment that may damage or interfere with service resulting from his/her operations. It shall be the Contractor’s responsibility to notify public utilities that (s)he is working in the vicinity of their facilities.

Other forces may be engaged in moving or reconstructing utility facilities or maintaining service of utility facilities, and the Contractor shall cooperate with such forces and conduct his/her

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27 operation in such a manner as to avoid unnecessary delay or hindrance to the work being performed by such other forces.

The City owns, operates, and maintains its own water distribution and sewer collection systems and will cooperate with the Contractor insofar as it is reasonable and practicable. Water, as required for City projects, may be obtained at City-owned fire hydrants provided that application is made to the Water Department and permission obtained with provision for payment.

Full compensation for conforming to the requirements of this article, not otherwise provided for, shall be considered as included in the prices paid for the various contract items of work and no additional allowance will be made therefor.

All underground utilities including but not limited to water service, sewer laterals, electrical service, and gas service broken or disturbed by the Contractor’s crew will be replaced or repaired by the Contractor or Utility Company at the Contractor’s expense.

The Contractor shall consult with utilities and notify them of any relocation or protection in sufficient time to allow the utilities to perform the work in a complete and orderly manner.

7. Water Pollution Control Program (WPCP) and/or Storm Water Pollution Prevention Program (SWPPP)
Water pollution control work and storm water pollution prevention work shall conform to Chapter 4 of the Best Management Practices Manual for the City’s Storm Water Management Program available on the City of Santa Cruz website at:
http://www.cityofsantacruz.com/government/city-departments/public-works/stormwater/bestmanagement-practices.

The Contractor shall take all necessary precautions to prevent any leakage or sewage spills of any kind onto adjacent property, public or private roadway, drainage systems, and waterways. The Contractor shall be liable for any and all clean-up costs or any fines that may be levied including those by the Regional Water Quality Control Board (RWCQB) against the City, in the event that such leakage or spill occurs. The Contractor shall also be responsible for reporting any and all spill to the appropriate regulatory agencies, including the RWCQB and the Santa Cruz County Health Department.

Full compensation for conforming to the requirements of “WATER POLLUTION CONTROL” including furnishing all labor, materials, equipment, tools, and incidentals shall be included in the various bid item prices and no additional compensation will be allowed.

8. Maintenance and Clean-Up
Throughout the construction period, the Contractor shall keep the Project site in a neat and clean condition, shall dispose of any surplus materials in an approved manner off the site, and maintain proper housekeeping practices to the satisfaction of the Engineer.

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28 When any material is to be disposed of outside of the easement or street or highway right-of-way, the Contractor shall first obtain written permission from the owner on whose property the disposal is to be made. Disposal must conform to grading ordinance of the jurisdiction in which the Work is performed. Location of disposal sites shall be submitted to the Engineer for review and subject to his/her approval.

Upon completion of the Work, and prior to requesting final inspection, the Contractor shall thoroughly clean the site of the Work of all rubbish, excess materials, falsework, temporary structures, and equipment, and all portions of the Work shall be left in a neat and orderly condition.

The final inspection, acceptance, and final payment will not be made until this has been accomplished.

9. State of California Department of Transportation Standard Specifications All Work under the Contract shall conform to the applicable requirements of the most recent published State of California Department of Transportation Standard Specifications. Said State Specifications are to be considered an integral part of the specifications for all purposes related to this Contract.

Definitions of terms not defined in City Standard Specifications shall be as defined in the 2018 State Standard Specifications, available at:
https://dot.ca.gov/-/media/dot-media/programs/design/documents/f00203402018stdspecsa11y.pdf.

10. Notification of Project Commencement
The Contractor shall notify the City Engineer at least five (5) business days prior to mobilizing to the Project site.

11. Project Schedule
The Contractor shall prepare a project schedule and submit it to the Engineer for his/her review and approval ten (10) days prior to the beginning of the Work. Work shall be conducted between the hours of 8 AM and 5 PM, Monday to Friday, except with the permission of the Director, except in case of any emergency.

12. Progress and Final Payment
Progress and final payments will be made in accordance with Section 9 of the Standard Specifications, except as herein modified.

Payments are made every two weeks by the City Finance Department. The Contractor may receive partial payments only once for any month. A listing of payment cut-off dates is available upon request.

13. Extra Work

17.31 BOILER CONTROL SYSTEM REPLACEMENT PROJECT
PROJECT NO. m409659
29 Extra work shall conform to the provisions in Section 9 of the California Standard Specifications and to these General Provisions.

Any alleged extra work or delays shall be given in writing within 24 hours of any occurrence to the Project Engineer or Inspector. The Contractor shall submit to the Project Engineer or Inspector an extra work report for each day the extra work is performed. The report shall be submitted prior to the start of work the following day. The report shall include: (1) a description of the extra work; (2) the quantity, classification, and working hours of the extra work labor force; (3) the type of equipment, code number, and hours of operation of the equipment towards extra work; and (4) the quantity and type of materials used for extra work.

14. Local Hiring Compliance Forms
Section Intentionally Omitted, Pursuant to Council Approval.

15. Apprentice Hiring Records and Compliance Forms
Local apprenticeship hiring requirements intentionally omitted, pursuant to council approval.

The Contractor, and all subcontractors, must comply with State apprenticeship requirements, including Labor Code Sections 1775.5 and 1777.6 and California Apprenticeship Council regulations concerning the employment of apprentices by the Contractor or subcontractor for the Project.

If the Contractor is exempted from the apprentice requirement according to the exemptions described in State Labor Code 1777.5, the Contractor must notify the City in writing of their exemption prior to commencing work and explain the exemption in detail.

Unless exempted, the Contactor will, prior to commencing Work, submit to the City and the appropriate apprenticeship program, a DAS Form 140. The Contractor will submit a copy of the Request for Dispatch of Apprentice Form to the City as evidence that an apprentice was requested.

A Request for Dispatch of Apprentice Form is provided in Section 4 of these Special Provisions.

The request for an apprentice will be made at least two (2) working days before the date on which one or more apprentices are required. These forms are available from the DAS web site (http://www.dir.ca.gov/das/PublicWorksForms.htm ).

16. Trenching Requirements
Section Intentionally Omitted.

17. Third Party Claims
Both parties shall timely notify the other of the receipt of any third-party claim relating to the Contract or Project. The City shall be entitled to recover its reasonable costs incurred in providing such notice.

17.32 BOILER CONTROL SYSTEM REPLACEMENT PROJECT
PROJECT NO. m409659
30 18. 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 Contract.

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

20. Conflicts of Interest
Contractor owes City a duty of undivided loyalty in performing the Work and services under this Contract. Contractor covenants (on behalf of Contractor and its 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 Contract.

Contractor acknowledges and agrees to comply with applicable provisions of conflict of interest law and regulations, including the Political Reform Act, Section 1090 of the Government Code, and the City’s conflict of interest code. Contractor will immediately advise City if Contractor learns of a conflicting financial interest of Contractor during the term of this Contract.

21. City Property
Unless otherwise provided herein, Contractor agrees that all copyrights which arise from creation of Project-related documents and materials pursuant to this Agreement shall be vested in the City and Contractor waives and relinquishes all claims to copyright or other intellectual property rights in favor of City. Any work product related to this Contract shall be confidential, not to be used by the Contractor on other projects or disclosed to any third party, except by agreement in writing by the City, or except as otherwise provided herein.
[End of Section]

17.33 BOILER CONTROL SYSTEM REPLACEMENT PROJECT
PROJECT NO. m409659
31 TECHNICAL SPECIFICATIONS

1. Scope of Work
The Work to be done under the provisions of these contract documents for the Boiler Control System Replacement Project for the Wastewater Treatment Facility (WWTF) consists in general of:
 The replacement of the existing fire eye controls with Cleaver Brooks recommended HAWK 1000 boiler controls components with dual fuel selection switch, and replace all pressure temperature and safety switch with updated components, and  Provide new LWCO Float/Switch, and New Pilot Assembly  Supply and install new natural gas train, digester gas train, and regulators at the boiler.
 Supply and install new Cleaver Brooks Burner

2. Project Schedule
The Contractor shall prepare and submit a project schedule to the Engineer for his/her review and approval ten (10) days prior to beginning the Work.

3. Facility Access and Safety
The Contractor's attention is drawn to the fact that during the course of the work of this Contract, the existing facilities will be used and maintained by City personnel. The Contractor shall coordinate its work in such a way as to interfere as little as possible with the routine work of existing facilities except in direct pursuit of the work of this Contract and as favorably reviewed by the Engineer. The Contractor shall provide safe access at all times to all existing facilities for operating personnel and equipment and shall follow clearance and staging area requirements as shown in the plans. The Contractor shall notify the Wastewater Maintenance Supervisor if obstruction to a facility cannot be avoided.

Contractor shall provide protection devices and whatever else is necessary to ensure the security of and within the facility during all phases of construction. Contractor shall comply with all federal, state and local statutes, rules and regulations in performance of this Contract, including those dealing with demolition and public safety. Contractor shall ensure safe passage of persons around areas of construction within the facility. Contractor shall conduct operations to prevent damage to adjacent buildings, structures, other facilities, and people.

4. Installation
Installation work shall include the following:
 Deliver New Controls and Remove the old controls and Materials from Jobsite.  Remove the old Controls Panel and Controls and replace them with new HAWK 1000 Controls.
 Install new Hawk 1000 control panel.

17.34 BOILER CONTROL SYSTEM REPLACEMENT PROJECT
PROJECT NO. m409659
32  Install new parallel positioning actuators.
 Install all electrical connections to the Burner and new control panel using the customers’ existing electrical service.
 Ensure that the new control installation follows a control scheme in which the digester gas spencer blower is started first when calling for heat in order to bring the pressure to 3 psi to the boiler. This will satisfy the gas pressure switch to the boiler which will allow the boiler to go through the start sequence. The gas blower must turn off after the boiler has shut down.
 Commission and test burner and Safety Devices for safe and reliable operation.  Provide end-user training on the new burner controls.  Provide combustion reports, Burner documentation, and startup report to customers.  Parking for (2) vehicles within 100 feet of the boiler room  Isolate and lockout/tag out boilers valves, water, gas, and electrical.  Replace low water level control safety devices and test to verify that the low water safety device is working.
 Open the fireside of the boiler, clean out any debris, and inspect for any damage.  Inspect the blower assembly; make sure it is in good working order.  Replace pilot assembly and flame-sensing system with new updated components Post-installation work shall include the following:
 Check for water leaks around the boiler and in the firebox.  Seal up the fireside of the boiler, and use a new rope seal gasket.  Unlock the boiler's electrical and gas valves.
 Check for any gas leaks.
 Place the boiler back online and test all safety controls for proper operation.  Fire the boiler on Digester Gas (First) and perform boiler emission analysis. Tune for maximum efficiency.
 Fire boiler on Natural Gas and perform boiler emission analysis. Tune for maximum efficiency.
 Provide a full-service report on repair and boiler and emissions analysis report running on digester gas and natural gas.

Warranty and Exclusions to apply as stated on quote provided by R.F. MacDonald, dated 12/08/2022.

17.35 City Council

AGENDA REPORT
DATE: 02/02/2023
AGENDA OF: 02/14/2023
DEPARTMENT: Public Works
SUBJECT: Mentel Aerial Sewer Improvement Project (c402102) – Notice of Completion (PW)
RECOMMENDATION: Motion to accept the work of Precision Grade, Inc (Salinas, CA) and authorize the filing of the Notice of Completion for the Mentel Aerial Sewer Improvement Project (c402102).

BACKGROUND: At its June 8, 2021 meeting, the City Council approved the authorization to advertise this project and authorized the City Manager to execute the contract. On July 13, 2021 the project was awarded to the lowest responsive and responsible bidder, Precision Grade, Inc.

Construction began on August 2, 2022 and included the installation of a new 8-inch diameter aerial sanitary sewer and associated infrastructure.

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

FISCAL IMPACT: The total project cost was $258,098.60. This project was funded by the Sewer Capital Investment Program (CIP) (c402102). There is no impact to the General Fund.

Prepared By:

Cina Seyedkazemi
Assistant Engineer I
Submitted By:

Nathan N. Nguyen
Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. NOTICE OF COMPLETION.DOCX

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

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

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

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

1. The Owner’s Name and Address. The Project owner is the City of Santa Cruz, a municipal corporation (the “City”). The City’s mailing address is 809 Center Street, Santa Cruz, California 95060. The City of Santa Cruz has the following interest in the subject Property described below: City right-of-way, 202 Forest Ave, 158 Forest Ave, & 105 Mentel Ave

2. Project Title and Number. The full name of the work of improvement/public works project (the “Project”) which is the subject of this Notice of Completion is: Mentel Aerial Sewer Improvement Project c402102

3. Nature of Work Performed on the Property or Materials Furnished for the City. The Project consisted of work described as: Removing and replacing an aerial sanitary sewer main and installing associated infrastructure.

4. The general site location description or address (the “Property”) of the public improvement is located at: Within the City sewer easement from Mentel Ave to Forest Ave

5. Name and Address of Contractor. The Contractor on the Project is: Precision Grade, Inc. 25 San Juan Grade Road, Suite 150, Salinas, CA 93906

6. Date of Completion. The Project on the Property was completed on: December 9, 2022

7. The filing of this Notice of Completion was authorized by the Santa Cruz City Council Minute Order on Tuesday, February 14, 2023
DATE: ___________________
Nathan Nguyen
Director of Public Works, City of Santa Cruz
RECORDED AT THE REQUEST OF:

City of Santa Cruz, Public Works
Attn: Cina Seyedkazemi
WHEN RECORDED MAIL TO:

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

18.2 City Council

AGENDA REPORT
DATE: 02/02/2023
AGENDA OF: 02/14/2023
DEPARTMENT: Public Works
SUBJECT: PG&E Fleet Ready Program Easement, 1125G River St, Santa Cruz (APN: 008-021-28-000) (PW)
RECOMMENDATION: Resolution authorizing the City Manager to grant an easement to Pacific Gas and Electric (PG&E) for the installation and maintenance of To-the-Meter (TtM) electrical infrastructure at the Corporation Yard, 1125G River St., Santa Cruz, CA 95060.

BACKGROUND: In order for the City of Santa Cruz (City) to achieve its Climate Action goals, to meet State law requires all new vehicle purchases be all electric by 2035, and save costs, the City is installing Electric Vehicle (EV) charging at the Corporation Yard for Medium Duty and Heavy Duty (MD/HD) vehicles. As of now, the City has 16 chargers for light duty vehicles. The project was initiated in 2020 and staff utilized the PG&E EV Charge program, which paid for new infrastructure such as a 208V transformer, electrical service panel, and reimbursed the cost of program approved EV chargers.

DISCUSSION: In 2019 staff enrolled in PG&E’s Fleet Ready Program, which is for Medium Duty and Heavy Duty (MD/HD) vehicles. To participate in the program, the City is responsible for everything Behind-the-Meter (BTM), which consists of the design and installation of the electrical infrastructure and the chargers. PG&E is responsible for the work To-the-Meter (TtM), which is made up of the high voltage conductors and the transformer to the newly installed meter. The TtM work, which is cost free, is an integral part of the transition to EV. Without a 480V transformer and supporting infrastructure, the City cannot charge MD/HD vehicles. For this project, the PG&E transformer will be located inside the Corporation Yard. As such, PG&E requests an easement to access their equipment.

FISCAL IMPACT: None.

Prepared By:

Andy Shatney
Energy Project Coordinator
Submitted By:

Nathan N. Nguyen
Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

2. EASEMENT.PDF

3. BTM_MDHD_PRELIMINARY_DESIGN.PDF

4. TTM_MDHD_PRELIMINARY_DESIGN.PDF

19.1 RESOLUTION NO. NS-XX,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ FOR PG&E

EASEMENT FOR ELECTRIC VEHICLE INFRASTRUCTURE
1125G RIVER ST., SANTA CRUZ, CA 95060
WHEREAS, the City of Santa Cruz, is participating in PG&E’s Fleet Ready program. This program will install, at no cost to the City, the necessary To The Meter (TTM) EV charging infrastructure. This project, will lay the foundation to charge Medium Duty and Heavy Duty (MD/HD) Electric Vehicles (EV); and
WHEREAS, the City of Santa Cruz has an interest in promoting the use of electric vehicles to reduce greenhouse gases and other health-harming pollutants and to protect public health and safety; and
WHEREAS, California State law mandates that, all new vehicle purchase be electric by the year 2035; and
WHEREAS, the City of Santa Cruz recognizes that the installation of electric vehicle charging infrastructure requires access rights, including but not limited to a PG&E easement.

NOW, THEREFORE, BE IT RESOLVED that the Council hereby authorizes the City Manager or his designee to approve of a PG&E Easement for the installation, access and maintenance to the MD/HD EV charging infrastructure at the City of Santa Cruz Corporation Yard, 1125G River Street, Santa Cruz, CA 95060.

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

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator

19.2 EVCN Charging Network Easement (Rev.10/17)
RECORDING REQUESTED BY AND RETURN TO:

PACIFIC GAS AND ELECTRIC COMPANY
245 Market Street, N10A, Room 1015
P.O. Box 770000, San Francisco, CA 94177
Location: City/Uninc SANTA CRUZ
Recording Fee $ ________________________
Document Transfer Tax $ N/A
[] This is a conveyance where the consideration and
Value is less than $100.00 (R&T 11911)
[ ] Computed on Full Value of Property Conveyed, or
[ ] Computed on Full Value Less Liens
& Encumbrances Remaining at Time of Sale
[ ] Exempt from the fee per GC 27388.1 (a) (2); This
document is subject to Documentary Transfer Tax
J.M.H.

Signature of declarant or agent determining tax
(SPACE ABOVE FOR RECORDER'S USE ONLY)
LD# 2311-02-10033 EASEMENT DEED
Internal
35356430, 1111 - FLEET002156710_CITYOFSANTACRUZ_SANTACRUZ THE CITY OF SANTA CRUZ, a municipal corporation of the State of California,
hereinafter called Grantor, hereby grants to PACIFIC GAS AND ELECTRIC COMPANY, a California corporation, hereinafter called Grantee, the right from time to time to construct, reconstruct, install, inspect, maintain, replace, remove, and use facilities of the type hereinafter specified, together with a right of way therefor, within the easement area as hereinafter set forth, and also ingress thereto and egress therefrom, over and across the lands of Grantor situate in the City of Santa Cruz, County of Santa Cruz, State of California, described as follows:
(A.P.N. 008-021-28-000)
The parcel of land described in the deed from Philip Fridley and Ethel G. Fridley to Grantor dated September 19, 1952 and recorded in Book 892 at page 202, Official Records of Santa Cruz County.

The parcels of land designated PARCEL ONE and PARCEL TWO, conveyed by United California Bank, Executor, as to an undivided 1/2 interest to Grantor by deed dated December 9, 1964 and recorded in Book 1678 at page 700, Official Records of Santa Cruz County.

The parcels of land designated PARCEL 1 and PARCEL 2, conveyed by Baldo M. Kristovich, Administrator, as to an undivided 1/2 interest to Grantor by deed dated December 31, 1964 and recorded in Book 1678 at page 708, Official Records of Santa Cruz County.

The parcel of land described in the deed from B. B. Snyder, Jr., Executor, to Grantor dated October 9, 1974 and recorded in Book 2453 at page 434, Official Records of Santa Cruz County.

19.3 EVCN Charging Network Easement (Rev.10/17)
Internal
The parcel of land described in the deed from Jack E. Britschgi and Ruth Jean Britschgi to Grantor dated March 12, 1975 and recorded in Book 2485 at page 11, Official Records of Santa Cruz County.

Said facilities and easement area are described as follows:

Such underground conduits, pipes, manholes, service boxes, wires, cables, and electrical conductors; aboveground marker posts, risers, and service pedestals; underground and aboveground switches, fuses, terminals, and transformers with associated concrete pads; electric vehicle charging supply equipment, bollards and/or curbs or other associated safety equipment, associated signage; and fixtures and appurtenances necessary to any and all thereof, as Grantee deems necessary for the distribution of electric energy and communication purposes located within the strip(s) of land of the uniform width of 10 feet, lying 5 feet on each side of the alignment of the facilities as initially installed hereunder. The approximate location of said facilities are shown upon Grantee’s Drawing Number 35356430 attached hereto and made a part hereof.

Grantee agrees that on receiving a request in writing, it will at Grantor’s expense, survey, prepare and record a “Notice of Final Description” referring to this instrument and setting forth a description of said strip(s) of land.

Grantor further grants to Grantee the right, from time to time, to trim or to cut down any and all trees and brush now or hereafter within said easement area, and shall have the further right, from time to time, to trim and cut down trees and brush along each side of said easement area which now or hereafter in the opinion of Grantee may interfere with or be a hazard to the facilities installed hereunder, or as Grantee deems necessary to comply with applicable state or federal regulations.

Grantor shall not erect or construct any building or other structure or drill or operate any well within said easement area.

Grantor further grants to Grantee the right to assign to another public utility as defined in Section 216 of the California Public Utilities Code the right to install, inspect, maintain, replace, remove and use communications facilities within said easement area (including ingress thereto and egress therefrom).

In the event upon termination of the electric vehicle charging station contract as set forth in said terms and conditions, Grantee shall upon written demand therefor execute and deliver to Grantor a good and sufficient quitclaim of said easement and right of way or such portion thereof conveyed in this document, at Grantor’s expense.

The legal description herein, or the map attached hereto, defining the location of this utility distribution easement, was prepared by Grantee pursuant to Section 8730 (c) of the Business and Professions Code.

In exercising its easement rights hereunder, Grantee shall not unreasonably interfere with, disrupt, or materially adversely affect Grantor’s business operations or access rights at the property owned by Grantor.
********* ********* *********
********* ********* ********* *********
********* ********* *********
********* ********* ********* *********
Signature(s) on Following Page
********* ********* *********
********* ********* ********* *********
********* ********* *********

19.4 EVCN Charging Network Easement (Rev.10/17)
Internal
The provisions hereof shall inure to the benefit of and bind the successors and assigns of the respective parties hereto.

Dated: __________________, _______.

THE CITY OF SANTA CRUZ, a
municipal corporation of the State
of California
By:

Name:

Title:
(PG&E Use Only)
Att. to L.D.: 2311-02-10033
Area, Div.: 3, Central Coast
Land Serv. Office: Fresno
L.O.B.: Char. Sta. (95), E. Dist. (43)
Doc. Type: Easements
M.T.R.S.Q.: 21.11.02.12.42
F.E.R.C. Lic. No.: N/A
PG&E Draw. No.: 35356430
Plat No.: O13, 01309 (E.)
Aff. Docs: N/A
X-ref. Docs: N/A
Interest Type: Comm. Ease. (6), E. U/G
Ease. (4), Util. Ease (86)
S.B.E. Parcel: N/A
% Quitclaimed: N/A
Order/PM: 35356430, 1111
JCN: N/A
County: Santa Cruz
Ut. Notice No.: N/A
851 Approv. App. No.: N/A
Prep. By: JUHT, L.C. (W.H.P.)
Checked By: JUHT
Approved As To Form:

By:______________________ Date: ___________
Office of the City Attorney
11/30/2022

19.5 Place Notary Seal Above

OPTIONAL
Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. ©2015 National Notary Association • www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 Description of Attached Document
Title or Type of Document: ____________________________________________________________________ Document Date: ______________________________________________ Number of Pages: ______________ Signer(s) Other Than Named Above: ___________________________________________________________ Capacity(ies) Claimed by Signer(s)
Signer’s Name: ________________________________ Signer’s Name: _______________________________ Corporate Officer — Title(s): __________________ Corporate Officer — Title(s): _________________ Partner — Limited General Partner — Limited General
Individual Attorney in Fact Individual Attorney in Fact Trustee Guardian or Conservator Trustee Guardian or Conservator Other: _____________________________________ Other: ____________________________________ Signer Is Representing: ________________________ Signer Is Representing: _______________________ _____________________________________________ _____________________________________________ A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

Signature of Notary Public
Name(s) of Signer(s)
State of California )
County of ________________________________ )
On _________________________ before me, ______________________________________________________, personally appeared __________________________________________________________________________ ______________________________________________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature ____________________________________________
Date Here Insert Name and Title of the Officer
, Notary Public
Easement Deed

19.6 NAME OF COUNTY where Notary
performs notarization.

DATE OF NOTARIZATION. Actual
month, day and year on which signer(s)
appear(s) before Notary.

NAME & TITLE OF NOTARIZING
OFFICER. In the case of a Notary,
“Notary Public” would be the title.

NAME(S) OF SIGNER(S) appearing
before Notary. Initials and spelling of
names should agree with name(s) signed
on document and ID card.

NUMBER AND GENDER OF
SIGNER(S). Cross out letters and
words that do not apply — person(s),
name(s), is/are, he/she/they, his/her/
their, capacity(ies), signature(s) — or
circle words that apply, to agree with
number and gender of signer(s) in
space 4.

SIGNATURE OF NOTARY exactly
as name appears on commissioning
papers, in space 3 and in seal.

NOTARY SEAL IMPRINT, clearly
and legibly affixed.

SPACES 8–15 ARE OPTIONAL.

Omission of information here will not
affect the document’s validity. However, completing these spaces can deter alteration of the document or fraudulent reattachment of this form to an unintended document.

TITLE OR TYPE OF DOCUMENT notarized, such as “Grant Deed.” DATE OF DOCUMENT notarized. Most but not all documents will have a date, usually at the top or following the signature. If none, insert “No Date.”
NUMBER OF PAGES in the notarized document. This may point out fraudulent addition or removal of pages. Do not count the certificate as a page. However, the certificate will be regarded as a page by recording officials in assessing recording fees.

SIGNER(S) OTHER THAN NAMED
IN SPACE 4. Since all signers might
not be named on the same notarial
certificate, insert name(s) of signer(s)
here that appear(s) or will appear on
other certificates — as many as space
allows. If there are a large number of
signers, a notation such as “Mary Smith
and 28 other signers” will suffice. If
none, insert “no other signers.”
NAME(S) OF SIGNER(S) from
space 4 whose capacity and represented
entity follow.

CAPACITY CLAIMED BY SIGNER.

Check appropriate box to indicate
whether signer is signing as individual
(on his or her own behalf), or as
corporate officer (indicate corporate
title), partner (indicate whether “limited”
or “general” partner), attorney in fact,
trustee, guardian/conservator, or in
another capacity.

DESCRIPTION OF OTHER
CAPACITY(IES). A single capacity, such
as “executor,” may be indicated here; or
a multiple capacity, such as “corporate
officer signing for partnership in which
corporation is partner.”
NAME OF PERSON OR LEGAL ENTITY that signer is representing.

It could, for example, be the name of an absent person represented by attorney in fact. It could be the name of a condominium association, such as “Blue Lagoon Condo Assn.” Or it could be multiple entities, such as “XYZ Corp., partner in Mutual Enterprises, a partnership.” Place Notary Seal Above

OPTIONAL
Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. ©2015 National Notary Association • www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 Description of Attached Document
Title or Type of Document: ____________________________________________________________________ Document Date: ______________________________________________ Number of Pages: ______________ Signer(s) Other Than Named Above: ___________________________________________________________ Capacity(ies) Claimed by Signer(s)
Signer’s Name: ________________________________ Signer’s Name: _______________________________ Corporate Officer — Title(s): __________________ Corporate Officer — Title(s): _________________ Partner — Limited General Partner — Limited General
Individual Attorney in Fact Individual Attorney in Fact Trustee Guardian or Conservator Trustee Guardian or Conservator Other: _____________________________________ Other: ____________________________________ Signer Is Representing: ________________________ Signer Is Representing: _______________________ _____________________________________________ _____________________________________________ hfulness, accuracy, or validity of that document.

Signature of Notary Public
Name(s) of Signer(s)
State of California )
County of ________________________________ )
On _________________________ before me, ______________________________________________________, personally appeared __________________________________________________________________________ ______________________________________________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature ____________________________________________
Date Here Insert Name and Title of the Officer
The so-called “all-purpose” acknowledgment wording, as prescribed in California Civil Code Section 1189(a), is mandatory for all acknowledgments taken in the state, whether the acknowledger is signing as an individual or a representative (partner, corporate officer, attorney in fact, trustee, etc.).

Law permits California Notaries to use an out-of-state acknowledgment form on a document that will be filed in that other state or U.S. jurisdiction, but only if “the form does not require the Notary to determine or certify that the signer holds a particular representative capacity or to make other determinations and certifications not allowed by California law” (Civil Code Section 1189[c]).

Still, however, any acknowledged document notarized and filed or recorded in California must bear only an all-purpose certificate.

State law requires the “all-purpose” certificate wording to be used exactly as it appears in statute.

The optional section at the bottom can deter alteration of the document or fraudulent reattachment of this form to an unintended document. The insertions in this section are not required by law. Failure to fill out this section will not affect the validity of the certificate.

California All-Purpose Acknowledgment
1 2
3 4
5 6
7 8
10 11
13 14
15 Instructions:

Los Angeles
July 19, 2012 Pat R. Jones, Notary Public
Pat R. Jones
Michael T. Smith
July 19, 2012 one
X X X
X
no other signers
Michael T. Smith
Grant Deed
X X
9 12
©2015 National Notary Association Item #5907
National Notary Association
9350 De Soto Avenue
Chatsworth, CA 91311-4926
1-800-876-6827
www.NationalNotary.org
X
1 2 3
4 7
10 11
12 13
15 5
9 6
14 8

19.7 19.8
···· PRELIMINARY NOT FOR CONSTRUCTION 19.9
BUILDING A BUILDING X (E) PG&E POLE (E) MSB2 400A, 120/240V, 3Ø, 4W (METER #1010085977) (E) MSB1
800A, 120/240V, 3Ø, 4W
(METER #1009486310)
(E) PG&E POLE PANEL DEV SWBD WITH METER PRELIMINARY NOT FOR CONSTRUCTION 19.10 PANEL DEV PRELIMINARY NOT FOR CONSTRUCTION 19.11
PRELIMINARY NOT FOR CONSTRUCTION 19.12
PRELIMINARY NOT FOR CONSTRUCTION 19.13
PRELIMINARY NOT FOR CONSTRUCTION 19.14
J
PC
PC
PC
SCOPE OF WORK: PROJECT SCOPE INCLUDES (10) STANDARD EV FLEET STALLS. THE STALLS ARE LOCATED IN THE WEST SIDE OF THE PROPERTY. THE EV STALLS WILL BE SERVICED BY
PEDESTAL MOUNT EVSE. SEE DETAILED SITE LAYOUT FOR MORE INFORMATION.

GOLF CLUB DR

PROJECT SUMMARY
DRAWN BY: CHECKED BY: DATE: SCALE AS NOTEDSHEET NO. OF SHEETS

CONSULTANT
CITY OF SANTA CRUZ 1125G RIVER ST., SANTA CRUZ, CA 95060 SCALE: 1" = 60'

ENAAS HASAN

CASSIE BURGER
03-02-2022
1 1
PRELIMINARY DESIGN - FLEET002156710

BILL OF MATERIALS

ITEM UNIT QUANTITY
TTM 1000KVA, 480/277V, PAD MOUNT
TRANSFORMER WITH CONCRETE PAD EACH 1 TTM PADMOUNT 4-WAY JUNCTION EACH 1 TTM 40T FUSE EACH 3 TTM 30ELF FUSE EACH 3 BTM 2000A, 480/277V, 3Ø, STANDARD RATED, METER SERVICE - PEDESTAL MOUNT EACH 1 BTM POWER CABINET EACH 3 BTM 1" PVC CONDUIT LF 160 BTM 1-1/2" PVC CONDUIT LF 830 BTM 3" PVC CONDUIT LF 180 TTM 4" PVC CONDUIT LF 215 TTM 5" PVC CONDUIT LF 95 BTM (3) #3 AWG THWN-2 CU + (1) #8 AWG THWN-2 CU EGC LF 930 BTM (3) #12 AWG THWN-2 CU + (1) #12 AWG THWN-2 CU EGC LF 180 BTM (3) 500 MCM THWN-2 CU + (1) #2 AWG THWN-2 CU EGC LF 150 BTM (2) 350 MCM THWN-2 CU + (1) 3/0 AWG THWN-2 CU EGC LF 140 TTM 1/0AL EPR LF 1005 TTM 1000AL QPX LF 210 TTM 36" WIDE OPEN CUT TRENCH - HARDSCAPE LF 225 BTM 24" WIDE OPEN CUT TRENCH - HARDSCAPE LF 160 TTM RESTORE ASPHALT PAVEMENT SF 520 BTM RESTORE ASPHALT PAVEMENT SF 315 TTM RESTORE CONCRETE SF 165 TTM BOLLARD EACH 10 BTM BOLLARD EACH 59 BTM EV CHARGER FOUNDATION EACH 10 NOTE: 1. ALL QUANTITIES ARE ESTIMATED AND SHOULD BE VERIFIED BY THE CONTRACTOR. 2. ASSUMED STANDARD RATED EQUIPMENT WILL BE USED. PROPOSED SYMBOL LEGEND: BTM BOLLARD

TTM BOLLARD

62.5KW ELECTRIC VEHICLE

SINGLE PORT PEDESTAL CHARGER
250KW ELECTRIC VEHICLE

SINGLE PORT WALL MOUNT CHARGER

6.5KW ELECTRIC VEHICLE

SINGLE PORT PEDESTAL CHARGER

BTM SWITCHGEAR

BTM ELECTRIC PULL BOX

PG&E PAD MOUNT

TRANSFORMER

TTM UNDERGROUND CONDUIT
LINE

TTM OVERHEAD CONDUIT LINE BTM UNDERGROUND CONDUIT
LINE

LIMITS OF WORK

CONCRETE

STALL AND STATION COUNT

IMPACTED EXISTING QUANTITY
FLEET STALLS 11 TOTAL 11 PROPOSED EV CHARGING QUANTITY
FLEET STALLS 10 TOTAL 10 EV CHARGING STATIONS QUANTITY DCFC (250KW NOMINAL/ 250KW ACTUAL) SINGLE PORT - PEDESTAL MOUNT 3 DCFC (62.5KW NOMINAL / 66.5KW ACTUAL) SINGLE PORT - PEDESTAL MOUNT 8 LEVEL 2 (6.5KW NOMINAL / 6.5KW ACTUAL) SINGLE PORT - PEDESTAL MOUNT 1 TOTAL 11 ANTICIPATED LOAD TOTAL KW CHARGEPOINT CPE250 @ 66.5KW 532 CHARGEPOINT EXPRESS PLUS @ 300KW 600 CHARGER BANK DEMAND LOAD (AMPS 480V) 1549.8 LIMITS OF WORK PROPOSED 2000A SWITCHGEAR
(1600A CONTINUOUS)
UPSIZE FUSE 5269 TO 40T FUSE
UPSIZE FUSE 79747 TO 30ELF FUSE
PULL BACK EXISTING 3-1/0AL EPR CABLE AND REROUTE TO
NEW PAD MOUNT JUNCTION INSTALL 200A
PADMOUNT 4-WAY

JUNCTION
3-1/0AL EPR IN
EXISTING 4" CONDUIT
3-1/0AL EPR IN 1-4" DUCT
7-1000AL QPX
IN 7-5"DUCT
1000KVA PADMOUNT

TRANSFORMER

PROPERTY LINE

PROPOSED BTM PULL BOX

RIVER ST

19.15 City Council

AGENDA REPORT
DATE: 02/02/2023
AGENDA OF: 02/14/2023
DEPARTMENT: Public Works
SUBJECT: Award Contract for Traffic Signal Maintenance and Repair (PW) RECOMMENDATION: Motion to award a contract to Cal-West Lighting & Signal Maintenance, Inc. (San Jose, CA) for traffic signal maintenance and repair for a not to exceed amount of $175,000, and reject all other proposals. The City Manager is hereby authorized and directed to execute an agreement in a form approved by the City Attorney. The Public Works Director is authorized to execute change orders within the approved project budget.

BACKGROUND: The City of Santa Cruz (City) currently owns and maintains 41 signalized intersections. These intersections include traffic signal systems consisting of controller cabinets and their contents, electrical service cabinets, safety lighting, vehicle and bike detection, and pedestrian control systems, battery backup systems, preemption systems, interconnected signal systems and all other equipment/connections required for safe and efficient operation of the signal systems. The City also owns and maintains approximately 2000 streetlights, 9 speed radar feedback signs, and 28 rectangular rapid flashing beacons.

In previous years, Public Works staff has obtained quotes for routine traffic equipment maintenance and repair, however, after evaluating the total expenditures and based on the spending patterns, staff thought it became prudent to conduct a formal Request for Proposal (RFP) for this work. The City’s single citywide contract approach provided cost savings through a competitive bid process and provides the City with fixed pricing not only for the routine maintenance but also the repair of components of the system that may need replacement due to failure or damage during the course of the contract.

On November 14, 2022, staff solicited RFPs from qualified firms with expertise in traffic signal maintenance and repair to implement an annual contract for traffic signal maintenance and repair services within the city for a five-year period.

DISCUSSION: On December 13, 2022, a total of three vendors responded to the City’s RFP.

Proposals were opened by the evaluation committee composed of City staff. Proposals were evaluated and scored based on the criteria listed in the solicitation and the results are shown below.

Cal-West Lighting & Signal Maintenance, Inc. (San Jose, CA) - Final Score 86.50 Bear Electrical Solutions (Alviso, CA) - Final Score 84.17 St. Francis Electric (San Leandro, CA) - Final Score 81.00

20.1 FISCAL IMPACT: The estimate for the work is $175,000. Fund are available in the FY 2023 General Fund within the Street Maintenance division.

Prepared By:

Dan Estranero
Associate Professional
Engineer
Submitted By:

Nathan Nguyen P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. EVALUATION RECAP.PDF

20.2 RFQ/RFP Advertised On:

Proposals Due On:RFQ sent to the following vendors:

Response Received No Response Declined to Bid
Local Business Preference Given
Form completed by:Name (City, ST)Cal-West Lighting & Signal Maintenance, Inc. (San Jose, CA)Bear Electrical Solutions (Alviso, CA)Name (Title) DepartmentSt. Francis Electric (San Leandro, CA) December 13, 2022
Proposals evaluated by:Nathan Goodman (Engineering Technician) Public WorksChristina Alberti (Management Analyst) Public WorksDan Estranero (Associate Engineer) Public Works Dan Estranero
November 14, 2022
Evaluation Recap Request For Proposal for 2023 Traffic Signal Maintenance and Repair

20.3 City Council

AGENDA REPORT
DATE: 02/01/2023
AGENDA OF: 02/14/2023
DEPARTMENT: Water
SUBJECT: Resolution to Apply for U.S. Department of the Interior Bureau of Reclamation Funds (WT)
RECOMMENDATION: Resolution authorizing the submittal, acceptance, and appropriation of a U.S. Department of the Interior Bureau of Reclamation grant under the WaterSMART Water Recycling and Desalination Planning funding opportunity for FY 2023.

BACKGROUND: The City of Santa Cruz Water Department is pursuing the objectives of the Securing Our Water Future (SOWF) policy adopted by the City Council in November 2022 which includes the evaluation of water supply alternatives to ensure the water supply reliability of the Santa Cruz water customers. These alternatives include aquifer storage and recovery, water transfers and exchanges, water reuse in the form of groundwater or surface water augmentation and/or direct potable reuse, and seawater desalination.

The U.S. Bureau of Reclamation (USBR) recognizes that “water reclamation and reuse feasibility studies help states, tribes, and local communities tackle water supply challenges.

Feasibility Studies funded under [this program] support the development of water reclamation and reuse projects to supplement urban and irrigation water supplies through water reclamation and reuse, thereby improving efficiency, providing flexibility during water shortages, and diversifying the water supply.”
The USBR WaterSMART Water Recycling and Desalination Planning funding opportunity for FY 2023 supports activities that are very much in line with next steps in the City’s pursuit of water supply reliability: develop new water recycling and desalination feasibility studies including preliminary cost estimates, site-specific investigations, development of project alternatives, environmental evaluations and pre-final design efforts.

DISCUSSION: The City completed a recycled water feasibility study in 2018 with the assistance of grant funding through the State Water Resources Control Board. The USBR funding would be used to develop a USBR-compliant Title XVI Feasibility Study by using the existing feasibility study as the framework and updating with the technical and policy work developed since 2018. A USBR-compliant Feasibility Study is needed for future funding considerations through USBR grant programs. Staff intends to allocate funds for this work in FY 2024 and is seeking grant funding through this WaterSMART Grant program to reduce the City’s costs and save ratepayer money.

21.1 Health in All Policies (HiAP)
The City Council adopted Health in All Policies (HiAP) three pillars, equity, public health, and sustainability, to be considered during decision-making. This project aligns with these pillars by supporting the Water Department’s work in ensuring the health and safety of the public drinking water supply.

FISCAL IMPACT: Funding Group 1 of this grant program has a funding limit for individual projects of up to $1,000,000 with a 50% match. The estimate to complete a Title XVI Feasibility Study and supporting studies is approximately $1,200,000. Funds are available in the Water Department Capital Investment Program budget for project c701705.

Prepared By:

Heidi Luckenbach
Deputy Director/Engineering
Manager
Submitted By:

Rosemary Menard
Water Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. USBR 2023 GRANT APPLICATION RESOLUTION.DOCX

21.2 RESOLUTION NO. NSRESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ AUTHORIZING

THE WATER DEPARTMENT TO APPLY FOR BUREAU OF RECLAMATION FUNDS FOR A U.S. BUREAU OF RECLAMATION-COMPLIANT TITLE XVI FEASIBILITY STUDY
WHEREAS, the City of Santa Cruz (CITY) desires and intends to finance expenditures to implement the Securing Our Water Future (SOWF) policy objectives by continuing the evaluation of water supply alternatives described therein; and WHEREAS, the SOWF policy includes evaluation of the beneficial use(s) of recycled water (PROJECT) as a means of contributing to the water supply reliability of City water customers; and
WHEREAS, the U.S. Bureau of Reclamation is currently accepting grant applications for studies that evaluate the feasibility of water reclamation and reuse projects to supplement urban and irrigation water supplies under the Title XVI Water Reclamation and Reuse Program; and WHEREAS, the PROJECT is eligible for funding from the U.S. Bureau of Reclamation Title XVI Water Reclamation and Reuse Feasibility Study Grant Program; and WHEREAS, the Water Director or designee is hereby authorized as the Authorized Representative to enter into an agreement under this Notice of Funding Opportunity (NOFO) Number R23AS00076; and
WHEREAS, the Authorized Representative, or designee, has reviewed (or will review) and supports the grant application submitted under this NOFO, and is designated to represent the CITY in carrying out the CITY’s responsibilities under the grant agreement, including certifying disbursement requests on behalf of the CITY, and compliance with applicable state and federal laws; and
WHEREAS, the Water Department has the capability to provide the amount of funding and/or in-kind contributions specified in the funding plan; and WHEREAS, the CITY will work with Reclamation to meet established deadlines for entering into a grant or cooperative agreement.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Santa Cruz supports submittal of a grant application to the U.S. Department of the Interior Bureau of Reclamation and approves this Authorizing Resolution as required in the NOFO.

PASSED AND ADOPTED this _____ day of ________, 2023, by the following vote:

AYES:

21.3 NOES:

ABSENT:

DISQUALIFIED:

I do hereby certify that the foregoing is a full, true and correct copy of a resolution duly and regularly adopted at a meeting of the City Council as date above.

ATTEST:

City Clerk Administrator
APPROVED:

Mayor

21.4 City Council

AGENDA REPORT
DATE: 02/01/2023
AGENDA OF: 02/14/2023
DEPARTMENT: Water
SUBJECT: Award of Professional Services Agreement to Black & Veatch for the Water Quality and Corrosion Study (WT)
RECOMMENDATION: Motion authorizing the City Manager to execute an agreement in a form to be approved by the City Attorney with Black & Veatch (Rancho Cordova, CA) for Engineering Services for a Water Quality and Corrosion Study and to authorize the Water Director to execute future contract amendments within the approved budget.

BACKGROUND: Over the past five years, sporadic water quality events in the form of increased color have occurred in the northeast corner of the water service area. While continuing to meet all local, state, and federal drinking water standards, testing confirmed the source being from iron particles detaching from the inside of the water main in that area. Elevated iron can affect other water quality parameters like chlorine residual which is an important part of ensuring the health and safety of drinking water.

The colored water events correspond to periods of source water changes between groundwater and surface water. While flushing the system and switching back to surface water have resolved the issue, these reactive measures do not represent a long-term solution as water supply planning includes ongoing and increased use of groundwater in that part of the service area.

Distribution system water quality and corrosion analysis is a very complex and a specialized subject matter. In November 2022, the Water Department formally issued a Request for Qualifications (RFQ) for engineering services related to water quality and corrosion analysis.

Three firms submitted statements of qualifications in December 2022. Each submittal was evaluated and scored through a competitive qualifications-based selection process, and Black & Veatch was selected based on their experienced team, their partnership with a laboratory at University of Virginia (a leading institute on water system corrosion analysis), as well as their strong performance providing similar services for Soquel Creek Water District.

DISCUSSION: The objective of the Water Quality and Corrosion Study is to determine the cause of water main corrosion and identify operational changes either at the groundwater treatment plant or in the water distribution system to avoid future events. The study is expected to start in February 2023 and conclude in July 2023.

Black & Veatch has organized their scope of work into the following tasks.

22.1 • Task 1: Project Management
• Task 2: Background Review
• Task 3: Draft Work Plan
• Task 4: Execute Work Plan
• Task 5: Summarize Results and Make Recommendations
• Task 6: Regulatory Support
Health in All Policies (HiAP)
This study aligns with the public health pillar of the City’s HiAP initiative by supporting the Water Department’s work in ensuring the health and safety of the public drinking water supply.

FISCAL IMPACT: The estimate for engineering services for Black & Veatch is $109,161.

Funds are available in the Water Department’s Capital Investment Program budget within project c701705, Water Supply Augmentation.

Prepared By:

Kevin Crossley
Senior Professional Engineer
Submitted By:

Rosemary Menard
Water Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. DRAFT PROFESSIONAL SERVICES AGREEMENT.PDF

2. RFQ TABULATION.PDF

22.2 City of Santa Cruz Professional Services Agreement for Engineering Services for Water Quality and Corrosion Study
February 2023 Page 1

PROFESSIONAL SERVICES AGREEMENT FOR

ENGINEERING SERVICES FOR

WATER QUALITY AND CORROSION STUDY
THIS AGREEMENT for professional services is made by and between the City of Santa Cruz (“City”) and Black & Veatch (“Consultant”) (each is referred to individually as a “Party” and collectively, as the “Parties”) as of , 20 (the “Effective Date”).

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

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

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

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

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

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

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

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

22.3 City of Santa Cruz Professional Services Agreement for Engineering Services for Water Quality and Corrosion Study
February 2023 Page 2
SECTION 4: FEES AND PAYMENT
For services actually performed, the City will compensate Consultant at the rates set forth in the Fee Schedule detailed in Exhibit B and in accordance with the terms set forth therein. Payment for Consultant's services in carrying out the entire Scope of Work shall be made within the budget limit, or limits shown, upon Exhibit B. Such payment shall be considered the full compensation for all personnel, materials, supplies, and equipment used by Consultant in the Scope of Work. Markups shall not be charged for any approved sub-consultants or subcontractors.

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

Variations from the budget for each task which are justified by statementsindicating personnel time expended and submittal of a revised budget are only allowed with prior City approval; however, in no event shall the total fee charged for the Scope of Work set forth in Exhibit A exceed the budget of $ authorization in the form of an amendment or change order. without advance written City
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. Unless otherwise specified in the fee schedule, payments shall be made monthly by the City within 30 days based on itemized invoicesfrom the Consultant which list the actual costs and expenses.

All invoices shall contain the following affidavit signed by Consultant (if individual) or by a principal of Consultant’s firm (if Consultant is an entity):
"I hereby certify [or as principal of Consultant] 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."
This Agreement is contingent upon the appropriation of sufficient funding by the City for the services covered by this Agreement. If funding is reduced or deleted by the City for the services covered by this Agreement, the City has the option without penalty or liability to either terminate this Agreement or to offer an amendment to this Agreement indicating the reduced amount.

SECTION 5: TRAVEL REIMBURSEMENT POLICY
The City agrees to reimburse Consultant and Consultant’s employee(s) for only authorized travel expenses, as indicated by a mark below, and according to the City’s Travel Reimbursement Policy. It is expected that all travel expenses incurred by Consultant while conducting activities on behalf of the City will be at reasonable rates and that Consultant and Consultant’s employee(s) will exercise prudence in incurring these expenses. The total fees and costs of Consultant’s expenses shall not exceed the amount described in the Fee Schedule.  Meals: Meals are reimbursed at the current GSA Meals & Incidental per diem rate by county (www.gsa.gov/travel). The City does not reimburse for actual costs for meals. Reimbursement is based solely on per diem rates. Do not submit meal receipts.
• Travel before 8:00am qualifies for breakfast reimbursement. • Travel between 8:00am – 1:30pm qualifies for lunch reimbursement.

22.4 City of Santa Cruz Professional Services Agreement for Engineering Services for Water Quality and Corrosion Study
February 2023 Page 3
• Travel between 1:30pm – 7:00pm (or later) qualifies for dinner reimbursement. • Days between hotel stays and days starting before 8am and ending after 7pm, qualify for the full GSA Meals & Incidental per diem rate.
 Ground Transportation: Ground transportation is reimbursable when it is for travel between the Consultant’s place of business, an airport, or Santa Cruz hotel, as applicable, to the City work location.

1. Reasonable fees for taxis, shuttles, buses, trains, light rail, ride hailing services (Uber, Lyft or other), and similar modes of transportation will be reimbursed. Receipts are required for reimbursement.

2. When using vehicles owned by Consultant or Consultant’s employer:
• Mileage will be reimbursed at the current IRS mileage rate. • Evidence of automobile liability insurance meeting the City’s requirements must be provided. • Maps showing starting point, City work location, and total miles are required for reimbursement.

3. Use of car rentals are reimbursable when:
• Travel is necessary from an airport to the City work location. • The rental reservation is made as far in advance as is practical and the lowest possible price is obtained.
• Insurance coverage is included, and the car is returned with a full tank of gas. • The smallest vehicle necessary is rented.
• Parking expenses are included in the GSA Meals & Incidental per diem rate. The City will not pay additionally for parking expenses.
• Receipts are required for reimbursement.
 Airfare: Airfare is reimbursable when the Consultant’s place of business, or Consultant’s employee’s home, is more than 250 miles away from Santa Cruz.
• Airfare must be lowest available coach class fare. Flights may be non-stop. • Airfare must be booked as far in advance as is practical. • Fees for one piece of checked luggage (and any equipment necessary for the work being done) will be reimbursed.
• Extra charges for seat assignments, refundable tickets, travel insurance/protection, and similar fees are not reimbursable.
• If the City cancels the need for travel and the ticket cannot be changed or refunded, the ticket cost will be reimbursable.
• Receipts are required for reimbursement.
 Lodging: Lodging is reimbursable when the Consultant must work on site for two or more consecutive days and the Consultant’s place of business or personal residence, is more than 60 miles away from Santa Cruz. • Lodging is reimbursed up to the current GSA rate by county (www.gsa.gov/travel). • Costs for hotel rooms above this rate are the responsibility of the traveler. • Receipts are required for reimbursement.

General Rule

1. Travel expenses not listed or checked above will not be reimbursed.

2. Travel reimbursements are paid after the completion of travel. There are no travel advances.

3. Exceptions to any of the above requirements require advance written permission from the Director or City’s designated agent contracting with the Consultant.

4. Tips and gratuities will not be reimbursed.

5. Alcoholic beverage purchases will not be reimbursed.

6. Consultant will exercise prudence in incurring reimbursable expenses.

22.5 City of Santa Cruz Professional Services Agreement for Engineering Services for Water Quality and Corrosion Study
February 2023 Page 4

7. The City of Santa Cruz has the sole discretion to deny any Consultant proposed reimbursable expense the City has determined to be excessive or an inappropriate use of public funds.

SECTION 6: CHANGES IN WORK
City may negotiate changes in the Scope of Work. No changes in the Scope of Work shall be made without the written approval of City and Consultant. Any change requiring compensation in excess of the sum specified in Exhibit B shall be approved in advance in writing by the City. Only City’s authorized representative(s) is authorized to approve changes to this Agreement on behalf of City.

SECTION 7: TIME OF BEGINNING AND SCHEDULE FOR COMPLETION The term of this Agreementshall be on the effective date of this Agreement and terminating on 20 .

Consultant shall begin work as specified in a written authorization (e.g. Notice to Proceed) to perform services. The written authorization to perform work shall not be issued until after this Agreement has been approved and authorized by the City.

The Work Schedule for completion of the work shall be as shown upon Exhibit C. In the event that major changes are ordered, the schedule for completion as stated in Exhibit C may 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 Force Majeure event 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.

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

Consultant acknowledges that it is necessary for Consultant to complete its work on or before the completion date set forth in Exhibit C 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 Consultant not less than 10 calendar days prior to an effective termination date.

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

The City may, at its option, allow Consultant to cure its failure to perform within 10 business days (or longer period authorized in writing by the City) from the date of the City’s termination notice. The termination shall be become effective if Consultant has not cured within the specified time period to the City’s satisfaction.

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

22.6 City of Santa Cruz Professional Services Agreement for Engineering Services for Water Quality and Corrosion Study
February 2023 Page 5
Upon notice of termination by either the City or Consultant, the Consultant will immediately act to not incur any additional obligations, costs or expenses, except as may be reasonably necessary to terminate its activities. The City’s only obligation to the Consultant will be just and equitable payment for services authorized by, and received to the satisfaction of, the City up to and including the effective date of termination less any amounts withheld. All finished or unfinished work or documents procured or produced under the Agreement will become property of the City upon the termination date. In the event of Consultant’s failure to perform pursuant to the Agreement, the City reserves the right to obtain services elsewhere and Consultant will be liable for the difference between the prices set forth in the terminated Agreement and the actual cost to the City. Termination of the Agreement pursuant to this paragraph shall not relieve the Consultant of any liability to City for additional costs, expenses, or damages sustained by City due to failure of the Consultant to perform pursuant to the Agreement. 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. After the effective date of termination, Consultant will have no further claims against the City under the Agreement. No other compensation will be payable for anticipated profit on unperformed services.

SECTION 9: INSURANCE
Prior to the beginning of and throughout the duration of the Agreement, Consultant will maintain and comply with the Insurance Requirements as set forth in Exhibit D. 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. The insurance coverages required shall not in any way limit the liability of the 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. Consultant’s obligation to defend shall arise regardless of any claim or assertion that Indemnitees caused or contributed to the Losses.

In the event this Agreement involves the performance of design professional services by 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/NON-DISCRIMINATION POLICIES City’s policies promote a working environment free from abusive conduct, discrimination, harassment, and retaliation; and require equal opportunity in employment for all regardless of race, religious creed (including religious dress and grooming practices), color, national origin (including language use restrictions), ancestry, religion, disability (mental and physical), medical condition, sex, gender (including gender identity and gender expression), physical characteristics, marital status, age, sexual orientation, genetic information (including family health history and genetic test results), organizational affiliation, and military or veteran status, or any other consideration made unlawful by local, State or Federal law. City requires 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

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Opportunity and Non-Discrimination policies to which this Section applies may be viewed at http://www.codepublishing.com/CA/SantaCruz/?SantaCruz09/SantaCruz0983.html and http://www.cityofsantacruz.com/home/showdocument?id=59192.

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

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

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

SECTION 14: MISCELLANEOUS PROVISIONS

1. Project Manager/Key Staff. Director reserves the right to evaluate and confer with Consultant regarding the project manager or other key staff assigned by Consultant to perform the work under this Agreement. Consultant shall replace the project manager or key staff upon Director’s request due to Director’s concern about their performance, or City shall have the right to terminate this Agreement. Otherwise, no change in assignment by the Consultant may occur without prior written approval of the City.

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

3. 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 harmlessthe 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.

4. 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.

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

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

7. Conflicts of Interest. Consultant agrees to comply with conflict of interest laws 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 CA Political Reform Act, Sections 1090 and 87100 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.

8. City Property. The work, or any portion, of Consultant in performing this Agreementshall 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 claimsto 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.

9. 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.

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.

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10. 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 information or proprietary materials (in every form and media) not generally known to the public and which has been or is hereafter disclosed or made available directly or indirectly to Consultant through any means of communication, either verbally or in writing even if it has not been designated in writing as “Confidential” 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.

11. 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 (5) years from the date of the final City payment for Consultant's services, or date of the termination of this Agreement, whichever is later. 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.

12. California Public Records Act. City is a public agency subject to the disclosure requirements of the California

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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.

13. 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. Consultant further agrees to comply with the covenant of good faith and fair dealing and other provisions of Santa Cruz Municipal Ordinance chapter 3.09, or otherwise Consultant may be subject to penaltiesincluding being declared an irresponsible contractor.

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

For additional information and licensing requirements, view the City’s Business Licenses and Permits webpage or call the Revenue and Taxation division at 831/420-5070.

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

16. Prevailing Wages for Public Work. To the extent that the work or services to be performed under this Agreement may be considered a “public work” (construction, alteration, demolition, or repair work) pursuant and subject to Labor Code section 1720 et seq., 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.)
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:
a. 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

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actually paid for each calendar day (or portion thereof) for which the worker(s) was paid less than the prevailing wage rate, as specified in Labor Code section 1775; b. Consultant shall maintain and make available payroll and worker records in accordance with Labor Code sections 1776 and 1812;
c. 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; d. 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;
e. Consultant shall post a copy of the applicable wage rates at each jobsite at a location readily available to its workers.
f. 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.
g. 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)].

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

18. Dispute Resolution. The Parties agree to attempt in good faith to resolve through negotiation any dispute, claim or controversy arising out of or relating to this Agreement. Either party may initiate negotiations by providing written notice in letter form to the other party, setting forth the subject of the dispute and the relief requested. Promptly upon such notification, the Parties shall meet at a mutually agreeable time and place in order to exchange relevant information and perspective, and to attempt to resolve the dispute. In the event that no resolution is achieved, and if, but only if, the parties mutually agree, then prior to pursuing formal legal action, 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

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requirements of the California Tort Claims Act, Gov’t Code section 800 et seq. unless otherwise agreed to by the Parties.

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

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

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

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

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

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

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

26. Notices. If either party shall desire or is required to give notice to the other such notice shall be given in writing, via email, and concurrently delivered by: (a) personal delivery, in which case notice is effective upon delivery; (b) overnight courier (i.e., Federal Express) with charges prepaid or charged to the sender’s account, in which case notice is effective when delivered; (c) priority U.S. Mail, in which case notice shall be deemed delivered on the second business day after the deposit thereof with the U.S. Postal Service, Notices shall be addressed to recipient as follows:

To CITY:

City of Santa Cruz Water Department
Rosemary Menard, Director
212 Locust Street, Ste A
Santa Cruz, CA 95060
[email protected]
(831) 420-5200
To CONSULTANT:

Black &Veatch
Ashutosh Shirolkar, P.E.
10995 Gold Center Drive, Ste 100
Rancho Cordova, CA 95670
[email protected]
(916) 851-0260

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A Party must provide written notice to the other of any change to the above information before the change is effective.

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

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

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NOTE: *NEED 2 SIGNATURES FROM CORPORATE OFFICERS: 1) PRES/VP; AND 2)SECRETARY/CFO/ TREASURER

1. Check if corporate entity is in good standing on CA Secretary of State website:
https://www.secstates.com/CA_California_Secretary_of_State_Corporation_Search#:~:text=Corporation%20%26%20Busine ss%20Entity%20Search,where%20that%20corporation%20is%20registered.

2. Corporation - Signature of two (2) officers required: 1) Pres/VP; and 2)Secretary/CFO/Treasurer (unless 1 person holds two officer positions in both categories (1) and (2)

3. General Partnership, Limited Partnership, Limited Liability Partnership, Limited Liability Corp:

See, City’s Signature Requirements for corporate entities. .

Technical Review By:

By: Date:

Heidi Luckenbach, Deputy Water Director/ Engineering Manager Approved As To Form:

By:

Office of the City Attorney
Date:

CONSULTANT
By: Date:

Printed: Title:

CONSULTANT
By: Date:

Printed: Title:

WATER DEPARTMENT
By: Rosemary Menard
Water Director
Date:

Matt Huffaker
City Manager

CITY OF SANTA CRUZ
By: Date:

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EXHIBIT A: SCOPE OF WORK

22.16 City of Santa Cruz January 27, 2023
Water Quality and Corrosion Study SCOPE OF WORK