Agenda packet — Santa Cruz City Council, June 13, 2023 (part 1 of 3)

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

CITY COUNCIL AGENDA
Regular Meeting – June 13, 2023
10:00 A.M. CLOSED SESSION, ZOOM/COURTYARD CONFERENCE ROOM 12:15 P.M. CONSENT, CONSENT PUBLIC HEARINGS, PUBLIC HEARINGS, GENERAL

BUSINESS AND ORAL COMMUNICATIONS, ZOOM/COUNCIL CHAMBERS 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)
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 Enter the meeting ID number: 946 8440 1344
 When prompted for a Participant ID, press #.
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Correspondence to be included in the agenda packet must be received by 5:00 pm on Monday, June 12th
PLEASE NOTE:
 Council may take a break(s) as needed.
 Requests for extra speaking time on items other than Oral Communications must be made by 5:00 p.m. on Sunday, June 11th by emailing the Mayor and the City Clerk.

Approval will be confirmed via email.
[email protected] [email protected]
June 13, 2023 City Council 2
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-councilmeetings and are also available for public inspection at the Office of the City Clerk, 809 Center Street Room 8, 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
10:00 AM
Closed Session

1. Real Property Negotiations (Government Code §54956.8) Property: Approximately 8.15 acres located on Mount Hermon Road in Scotts Valley, CA
APNs: 022-721-07, 022-721-08, 022-721-09
Owner: City of Santa Cruz
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and City of Scotts Valley Under Negotiation: Price, terms of payment, or both
June 13, 2023 City Council 3
Closed Session (continued)

2. Conference With Legal Counsel – Liability Claims (Government Code §54956.95)
1) Claimant: Dominique Townsend
2) Claimant: Michael B. Smith
3) Claimant: Ginaia Kelly
Claims against the City of Santa Cruz

3. Conference with Legal Counsel – Anticipated Litigation (Government Code §54956.9(d)(2)
Significant exposure to litigation (one potential case to be discussed - Don Honda May 28, 2023 email message)

4. Conference with Legal Counsel - Existing Litigation (Government Code §54956.9(d)(1))
1) City of Santa Cruz v. The Regents of the University of California, et al.
(Santa Cruz County Superior Court Case No. 22CV00373)
2) Regents of the University of California, et al. v. City of Santa Cruz (Santa Cruz County Superior Court Case No. 20CV02152)
3) Lisa Foster v. City of Santa Cruz, et al.
(Santa Cruz County Superior Court Case No. 23CV00638)
4) Robert Fleck v. City of Santa Cruz, et al.
(Santa Cruz County Superior Court Case No. 23CV01131)
5) City of Arcata, et al. v. Pacific Gas and Electric Company (San Francisco Superior Court Case No. CGC-20-585483)
June 13, 2023 City Council 4
City Council
12:15 PM
Call to Order
Roll Call
Presiding Officer's Announcements
Statements of Disqualification
Additions and Deletions
City Attorney Report on Closed Session
Presentations
The below presentation #5 was continued from the May 24th Budget Hearings.

5. Capital Investment Program Presentation
Please note: Public Comment will be accepted for the below presentation and will be limited to 20 minutes.

6. Presentation from the Council Ad Hoc Budget and Revenue Committee on Results of Housing Measure Feasibility Work
Council Meeting Calendar

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

June 13, 2023 City Council 5
Consent Agenda

8. Minutes of the May 23, 2023 City Council Meeting (CC) Motion to approve as submitted.

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

10. 333 Locust Street Acquisition Agreement and Budget Adjustment (ED) Motion to:
1) Adopt a resolution authorizing the City Manager to enter into a Purchase Sale Agreement to purchase the real property located at 333 Locust Street (APN 005-033-03) and execute any and all related documents necessary, in a form approved by the City Attorney; and 2) Adopt a resolution amending the FY 2023 budget in the amount of $1,718,000 to fund the acquisition of the property at 333 Locust Street.

11. Liability Claims Filed Against the City of Santa Cruz (FN) Motion to reject the liability claims of 1) Dominique Townsend, 2) Michael B. Smith, and 3) Ginaia Kelly, based on staff recommendation.

12. General Obligation Refunding Bonds - Tax Rate Authorization (FN) Resolution setting the tax rate for FY 2024 with respect to the City’s General Obligation Refunding Bonds.

13. Resolution Amending the Personnel Complement and Classification and Compensation Plans for the FY 2023 Budget for the Police Department (HR)
Resolution amending the Classification and Compensation Plan and the FY 2023 Personnel Complement by approving a classification change in the Police Department.

June 13, 2023 City Council 6
Consent Agenda (continued)

14. Suspension of the Natural Gas Prohibition Ordinance (PL) Resolution suspending enforcement of Santa Cruz Municipal Code 6.100 Prohibition of Natural Gas Infrastructure in new buildings.

15. Award Contract for Case 570N EP 4WD Tractor Loader Scraper - Budget Adjustment (PR)
Motion to:
1) Award a contract for the purchase of one new Case 570N EP 4WD Tractor Loader Scraper from Sonsray Machinery (Salinas, CA) in the amount of $114,437.70, not to exceed $150,000 in the event of inflationary increases; and
2) Adopt a resolution amending the FY 2023 budget in the amount of $114,437.70 to facilitate the purchase of a new Case 570N EP 4WD Tractor Loader Scraper from Sonsray Machinery (Salinas, CA).

16. FY 2024 Funding for Senate Bill 1 Road Maintenance and Rehabilitation Account (RMRA) (PW)
Resolution approving the FY 2024 allocation of SB 1 Road Maintenance and Rehabilitation Account funds and authorizing the City Manager to submit the project list to the California Transportation Commission.

17. Measure D Expenditure Plan: FY 2024-2028 (PW)
Motion to approve the proposed Measure D Five-Year Expenditure Plan for FY 2024-2028.

18. Neary Lagoon Tule and Sediment Removal Project (m409668) – Approval of Plans and Specifications and Authorization to Advertise for Bids and Award Contract (PW)
Motion to approve the plans and specifications for the Neary Lagoon Tule and Sediment Removal Project (m409668), authorize an exemption from local employment requirements, and authorize staff to advertise for bids and award the contract. The City Manager is hereby authorized and directed to execute the contract as authorized by Resolution No. NS-27,563. The Public Works Director is authorized to execute change orders within the approved project budget.

June 13, 2023 City Council 7
Consent Agenda (continued)

19. Rising Prices for Tires and Repair Costs for City Vehicles and Equipment – Budget Adjustment (PW)
Resolution amending the FY 2023 budget to appropriate funds in the amount for $70,000 to fund increasing tire purchases and repair expenses.

20. Proposed Resource Recovery Collection Rates Increase (PW) Motion to schedule a Public Hearing for August 8, 2023 on the proposed resource recovery collection rates increase, in accordance with State law, including a mailed notice to property owners.

21. Graham Hill Water Treatment Plant Facility Improvements Project – Update Report / City Council Direction (WT/PL)
Motion to:
1) Notify the Water and Planning Commissions that the Graham Hill Water Treatment Plant Facility Improvements Project (Project) will be brought to the City Council for final consideration and action on the Environmental Impact Report (EIR), discretionary
permits/entitlements, and final project approval per Santa Cruz Municipal Code 24.04.175.2; and
2) Direct staff to coordinate with the Water and Planning Commissions to obtain project recommendations from those commissions on the Project EIR (Water Commission) and Project entitlements (Planning Commission) prior to Council’s final action on the Project.

June 13, 2023 City Council 8
Consent Agenda (continued)

22. Loch Lomond Reservoir Oxygen Diffuser System – Notice of Completion (WT)
Motion to:
1) Ratify Change Order No. 1 with Mobley Engineering Inc. (Norris, TN) related to redesign of the system to accommodate differing field conditions and several delays and remobilizations to the project in the amount of $53,521.80; and
2) Accept the work of Mobley Engineering Inc. (Norris,TN) as complete per the agreement and authorizing the filing of a Notice of Completion for the Loch Lomond Reservoir Oxygen Diffuser System and to authorize the Water Director to sign the Notice of Completion as the Owner’s Authorized Agent.

23. Contract Amendment 2024-01 with HDR Inc. for Capital Program Management Services (WT)
Motion authorizing the City Manager to execute Contract Amendment No. 2024-01 with HDR for Service Order No. 9 in the amount of $6,933,644 in a form to be approved by the City Attorney.

End Consent Agenda
Consent Public Hearings

24. Downtown Association: Parking and Business Improvement Area Assessments for FY 2024 (ED)
Resolution confirming the Parking and Business Improvement Area FY 2024 Plan prepared by the Downtown Association and levying the Parking and Business Improvement Area Assessments for FY 2024.

June 13, 2023 City Council 9
Consent Public Hearings (continued)

25. Expansion of Technology Surcharge (PL)
Motion to:
1) Adopt a resolution to rescind Resolution No. NS-27,559, the Council’s 2007 Technology Surcharge resolution, and expand the application of a six (6) percent Technology Surcharge to certain fees collected by the Planning and Community Development, Finance, Public Works, Parks and Recreation, Fire, and Water Departments; and 2) Direct staff to take related implementation actions.

Public Hearings

26. Tree Appeal 233 Union Street (PR)
Resolution to deny the appeal and uphold the Parks and Recreation Commission's approval of tree removal permit application # 23-0005 submitted by Dorth Raphaely to remove two Coast Redwood trees located at 233 Union Street.

27. Ordinance Amending Select Portions of Chapter 10.40 of the Santa Cruz Municipal Code, Along with Santa Cruz Municipal Code Section

10.41.060, Pertaining to the Parking of Oversized Vehicles (PL/CA) Introduce for publication an ordinance amending select portions of Chapter 10.40 of the Santa Cruz Municipal Code pertaining to the parking of oversized vehicles.

June 13, 2023 City Council 10
General Business

28. Cooperative Retail Management Business Real Property Improvement District Assessments for FY 2024 (ED)
Motion to:
1) Approve the FY 2023 Annual Report and FY 2024 Plan prepared by the Downtown Management Corporation;
2) Adopt the Resolution of Intention to levy a Cooperative Retail Management Business Real Property Improvement District Assessment for FY 2024 and schedule a public hearing for June 27, 2023, after the hour of 1 pm, on the levy of the assessments for FY 2024; and 3) Introduce for publication an ordinance confirming that Chapter 5.06 of the Santa Cruz Municipal Code shall apply to the Cooperative Retail Management Business Real Property Improvement District within the District’s modified boundaries and to the increased assessments approved and levied by the City Council for the District’s 2023-2024 Fiscal Year.

29. Fiscal Year 2024 Proposed Budget

29.1. Fiscal Year 2024 Proposed Budget Adoption (FN)
Motion to:
1) Adopt a resolution adopting the Fiscal Year (FY) 2024 Budget including the Capital Investment Program (CIP), effective July 1, 2023; authorize the City Manager to allocate within the applicable funds the FY 2024 Schedule of Administrative Budget Changes to the appropriate accounting classifications and to approve related and applicable transfer in/out between funds; and authorize the Finance Director to create additional appropriations to provide for commitments carried over from the prior fiscal year, including contract and purchase order encumbrances and unexpended project balances, so long as there is a sufficient fund balance to finance these commitments; and 2) Accept the Water Commission’s recommendations regarding the Water Department’s FY 2024 Operating and Capital Investment Program (CIP).

June 13, 2023 City Council 11
General Business (continued)

29. Fiscal Year 2024 Proposed Budget (continued)

29.2. Resolution Amending the City of Santa Cruz Personnel Complement and Classification and Compensation Plans for the Public Works, City Manager, Finance, Parks and Recreation, Police, Water, Fire, Library and Human Resources Departments (HR)
Resolution amending the Classification and Compensation Plans for the FY 2024 budget personnel complement by implementing the approved FY 2024 budget/position changes in several departments.

Oral Communications Announcement – Members of the public may address Council on matters not on the agenda, but within the jurisdiction of the Council. 30 minutes is allocated for Oral Communications. No extra time for groups will be granted.

Oral Communications
Adjournment
June 13, 2023 City Council 12

INFORMATION ITEMS PREVIOUSLY DISTRIBUTED TO CITY COUNCILMEMBERS ADDENDUM TO CITY COUNCIL AGENDA – JUNE 13, 2023

30. City Council/Heath in All Policies: Tobacco Product Waste Update - June 7, 2023 (CMFYI 264)

31. Finance Department: Portfolio Management Report – Pooled Cash and Investments as of April 30, 2023 - 5/15/23 (FNFYI 368)

32. Finance Department: Transient Occupancy Tax - 6/13/23 (FNFYI 369)

33. Finance Department: Investment Strategy - 6/13/23 (FNFYI 370)

MAYOR'S PROCLAMATIONS
ADDENDUM TO CITY COUNCIL AGENDA – JUNE 13, 2023

34. Proclaiming June 3, 2023 as “Edward Benson Porter, Jr. Day” and encouraging the community to come together to honor him for his numerous contributions and to praise a life well lived.

35. Proclaiming June 4, 2023 as “Santa Cruz Museum of Art and History Day” and encouraging all citizens to join in honoring it and thanking it for its numerous contributions on behalf of the LGBTQ+ community and commending it for being named as a Grand Marshal for the 48th Annual Pride Parade.

36. Proclaiming June 4, 2023 as “Faris Sabbah Day” and encouraging all citizens to join in honoring him and thanking him for his numerous contributions on behalf of the LGBTQ+ community and commending him for being named as a Grand Marshal for the 48th Annual Pride Parade.

June 13, 2023 City Council 13
Advisory Body Appointments
The following positions are vacant. Council will make the appointments at a future meeting.

County Latino Affairs Commission One opening – at-large nomination Sister Cities Committee Three openings – at-large nominations 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.

FY 2024 Budget Hearings
Capital Investment
Program (CIP)
May 24, 2023
1 Elizabeth Cabell, Finance Director
Nathan Nguyen, Public Works Director
Tony Elliot, Parks and Recreation Director
Bonnie Lipscomb, Economic Development and Housing Director Rob Oatey, Fire Chief

5.1 Agenda
• General Fund CIP Reassessment
• FY 2024 Proposed CIP by
Department
o Public Works
o Parks and Recreation
o Economic Development
o Fire
2 5.2
Bulleted List
3 General Fund Supported CIP Reassessment
Pause Prioritize Plan
Pause on adding
any new funding
and review
current projects
Prioritize current
projects before
adding new ones
Make a plan for
existing projects
and priority new
projects

5.3 Factors to
Consider

STAFFING LEVELS
• Does the department have the staff to oversee
and complete the project?

RESOURCES
• Are the materials and supplies needed for the
project available now, or on backorder due to
supply chain issues?

FUNDING
• Is the project funded 100% by the General Fund
or is other funding available?
4 LONG RANGE FINANCIAL PLAN
• Does the project fit the long range financial plan
of the City?

5.4 5
Where are we?
• Departments have reviewed their
projects
 Completed projects closed and
remaining funds released
 Closed projects not moving
forward and released funds
 Prioritized projects to start before
or after December 31st

5.5 6
What’s coming next?
• New General Fund CIP projects starting before Dec 31st will be presented at the Budget Adoption meeting on June 13th
–General Fund Unfunded project list will also be presented • New General Fund CIP projects starting after Dec 31st will be presented at the Mid-Year Budget in January 2024

5.6 • FY 2024 Proposed CIP by Department
FY 2024 Proposed CIP by Department - $150.7M

5.7 Public Works CIP

5.8 9

PW CIP OVERVIEW
• Over 100 projects at cost of $250M with
$60M in grant funds
• CIP Categories: Gas Tax, Arterials Streets and
Roads, General CIP, Wastewater, Storm
Water Overlay and Citywide, Clean Beaches
and Rivers, Refuse, and Parking

5.9 10

CONSTRUCTION
• Rail Trail Seg 7 – Phase 2 - $12M
• SLR Culvert - $2.5M
• Ocean Street Paving - $1.5M
• Bay, San Lorenzo, Riverside Paving - $2.2M
• Dimeo Lane Paving and Storm Drain - $700K
• Front-Pacific Sewer Rehab - $8M
• Bay St. Protected Bike Lanes & Path - $350K
• Downtown Bike Locker Replacement - $50K
• Advance Vehicle Detection - $1M
• Traffic Controller Comms Upgrade - $650K
• HSIP10 Ped. Xing Improvements - $300K
• Murray St. Bridge Retrofit - $25M
DESIGN
• WWTF Electrical Upgrade - $40M
• Downtown Pump Station Imp. - $15M
• Rail Trail Segments 8 & 9 - $42M
• Downtown Intersection Imp – TBD
• Swanton-Delaware Multi-Use Path - $3M
• Sewer/SD Maintenance - $1M
• Traffic Calming Pilot Program - $75K
• Broadway Complete Streets - $650K
• Parking Office Remodel - TBD
• Foodwaste Pre-Processing - TBD
NEW

5.10 Under/Unfunded Priorities
• West Cliff Stabilization & Culvert - $17M
• WWTF Electrical Upgrade - $40M
• WWTF Headworks - $25M
• Downtown Pump Station Imp. - $15M
• Levee Maintenance - $500K
• Trevethan SD & Paving (Phase 2) - $800K
• Residential/Local Street Paving - $25M
• Wharf Roundabout Bike Lane - $750K
• Public EV Charging Stations - $10M

5.11 Parks and Recreation CIP

5.12 By Fund Source
$2,969,712
$1,684,725
$1,560,879
$1,295,671
$905,814
$400,000
$351,435
$308,801
$22,809
SiteLogIQ
General Fund
CEC
Park Tax
Grants
City Public Trust Fund
Quimby
CDBG
Liability Fund
$9.4M
CIP Snapshot: Active Projects
$4,007,301
$1,495,290
$1,294,735
$1,116,505
$1,060,875
$360,000
$50,000
$40,000
Community/Regional Parks
Civic Auditorium
Golf Course
Wharf & Beaches
Neighborhood Parks
Other Buildings
LNCC
Open Spaces & Greenways
$9.4M
By Area/Amenity

5.13 FY2024 Projects Funding
Source
Amount
Harvey West Pool Repairs
Park Tax
75,000
Water Conservation and Irrigation System
Improvements
150,000
West Cliff Design & Improvement Standards 120,000
Harvey West Park - Clubhouse Picnic Area Fence 45,000
Harvey West Park - Resurfacing Friendship Gardens
and Upper Glen Group Picnic Areas
45,000
Lighthouse Avenue Park Fencing 25,000
Riverside Gardens Park Pathway 60,000
Walkway Improvements in Neighborhood Parks 40,000
Sgt. Derby Park Playground Renovation 185,000
TOTAL $745,000
CIP Snapshot: FY 2024 Funded Requests

5.14 FY2024 Projects Amount
Parks Facilities Security Improvements
TBD
143,000
Harvey West Park Redesign 250,000
DeLaveaga Park - Culvert Repair, Slope Stabilization,
Drainage, and Stormwater Runoff
130,000
Civic Access and Safety Improvements CDBG 322,432
TOTAL $845,432
CIP Snapshot: FY 2024 Funded Requests

5.15 Economic Development and Housing CIP

5.16 CIP Projects
• Downtown Alley Improvements
• Tannery Dance & Performance
Building
17 5.17
Bulleted List
18 Tannery Dance & Performance Building
Project Description:
• Construction of a dance
performance building on the
Tannery Arts Center
campus
• Proposed FY 2024 Budget -
$80,000
• Funded by ED Trust Fund

5.18 Bulleted List
19 Downtown Alley Improvements
Project Description:
• Lighting, placemaking,
and wayfinding
improvements
• Proposed FY 2024
Budget - $300,000
• Funded by former RDA
Bonds

5.19 Fire Department CIP

5.20 Fire Station #3 Generator - $200,000
• Replacement of existing generator
– Current unit undersized and 20 years old
• To be purchased early 2024
Fire Station #2 Rear Expansion - $750,000
• Adding 1,800 square feet to existing fire
station
– To be used for equipment storage and
exercise facility
• Project to begin Jan 2024
21 Fire Department CIP

5.21 Questions?
FY 2024 Budget Hearings
Capital Investment Program (CIP)

5.22 Council Ad Hoc Budget & Revenue Committee
Final Presentation and Report Out on
Community Meetings and Draft Housing Revenue Measure
Presentation- June 13, 2023

6.1 Presentation Outline
● Background: Council Ad Hoc Budget & Revenue
Committee- Direction and Scope
● Overview of Initial Process and Activities to Date
● Next Steps and Timeline

6.2 Background:

Council Ad Hoc Budget & Revenue
Committee
- Council Direction
- Scope
-Polling Research
-Three Community Meetings

6.3 Overview of Process:

Community Meeting # 1:Overview
of Need for Affordable Workforce
Housing

6.4 6.5
Overview of Process:

Community Meeting # 2: Polling
Research Topline Results

6.6 Overview of Process:

Community Meeting # 3: Drafting
and Priorities

6.7 Next Steps and
Timeline:
• Community Draft Revenue Measure finalized
and released: June 2023
• Community group(s) will lead process going
forward
-Finalizing Measure
-Signature gathering
-Qualifying for ballot

6.8 Council Ad Hoc Budget & Revenue Committee
Final Presentation and Report Out on
Community Meetings and Draft Housing Revenue Measure
QUESTIONS?

6.9 Meeting Type
Holiday
Jewish Holiday
Regular Meeting
Special Meeting
Study Session (will be added as scheduled)
Budget Hearing
DATE Location Meeting Type
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 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
Yom Kippur (City observed - sundown to sundown)
City Council Meeting Calendar for 2023
November 28
December 12
City Hall Closure - Thanksgiving Day
City Hall Closure - Day After Thanksgiving Day
June 27
September 12
September 26
City Hall Closure - Juneteenth
Please note: Meeting times are not final and are likely to change August 8
City Hall Closure - Labor Day
August 22
July 11 and 25 Meetings Cancelled - CITY COUNCIL DARK
City Hall Closure - Independence Day
December 26 Meeting Cancelled - CITY COUNCIL DARK
City Hall Closure - Christmas Day
Hanukkah (City observed - sundown to sundown)
Rosh Hashanah (City observed - sundown to sundown)
November 14
October 10
October 24
City Hall Closure - Veteran's Day (observed)

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

MINUTES OF A CITY COUNCIL MEETING
May 23, 2023
1:30 PM
Mayor Keeley opened the City Council Closed Session at 1:30 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, Brunner, Kalantari-Johnson; Vice Mayor Golder; Mayor Keeley.

Absent: Councilmember Watkins.

Staff: City Manager M. Huffaker, Assistant City Manager L. Schmidt, City Attorney T. Condotti, Finance Director E. Cabell, Deputy City Clerk Administrator J. Wood, City Clerk Administrator B. Bush.

Public Comment
Mayor Keeley opened the public comment period at 1:32 p.m. There were no speakers. Mayor Keeley closed the public comment period at 1:32 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 Legal Counsel – Liability Claims (Government Code §54956.95) 1) Claimant: Ezekiel C. Tidmore
2) Claimant: Judith Laing
3) Claimant: Justin Laing
4) Claimant: Deborah Marie Guadian
Claims against the City of Santa Cruz
Council received a status report, took up under agenda item 12, and no reportable action was taken.

8.1 May 23, 2023 CITY COUNCIL MINUTES 6480
City of Santa Cruz
809 Center Street
Santa Cruz, California 95060

MINUTES OF A CITY COUNCIL MEETING
May 23, 2023
2:00 PM
Call to Order – Mayor Keeley called the meeting to order at 2:01 p.m. in Council Chambers.

Roll Call

Present: Councilmembers Newsome, Brown, Watkins (arrived at 2:37 p.m.), Brunner, Kalantari-Johnson; Vice Mayor Golder; Mayor Keeley.

Absent: None.

Staff: City Manager M. Huffaker, Assistant City Manager L. Schmidt, City Attorney T. Condotti, Director of Public Works N. Nguyen, Chief of Police B. Escalante, Director of Economic Development and Housing B.

Lipscomb, Finance Director E. Cabell, Chief People Officer S. De Leon, Director of Planning and Community Development L. Butler, Deputy City Manager L. Murphy, Recreation Supervisor D. Lawson, Fire Captain B.

Thomas, Service Field Crew Leader P. Mason, Business Liaison S.

Domondon, GIS Manager R. Westfall, Transportation Manager M.

Starkey, Principal Management Analyst V. Pearson, Homelessness Response Manager L. Imwalle, Deputy City Clerk Administrator J. Wood, City Clerk Administrator B. Bush.

Presentations

2. Outstanding Volunteer Recognition
CitySERVE Program Coordinator J. Shamoun spoke. Mayor Keeley and Karen Delaney, Executive Director of the Santa Cruz Volunteer Center, recognized the volunteers.

3. Beach Safety Week
Recreation Supervisor D. Lawson, Fire Captain B. Thomas, and Service Field Crew Leader P. Mason gave a presentation on Beach Safety Week.

8.2 May 23, 2023 CITY COUNCIL MINUTES 6481
Presentations (continued)

4. Mayoral Proclamation Declaring May 21 through May 27, 2023, as Public Works Week
Mayor Keeley presented a proclamation declaring May 21—May 27, 2023, as National Public Works Week. Director of Public Works N. Nguyen spoke.

5. Citywide Housing Project Interactive Map
Director of Economic Development and Housing B. Lipscomb introduced the item. Business Liaison S. Domondon and GIS Manager R. Westfall gave a presentation and responded to Councilmember questions.

Presiding Officer's Announcements
Statements of Disqualification – Councilmember Brunner announced she is recusing herself from item 9 as this item has an impact on her employer, the Downtown Association.

Additions and Deletions – None.

City Attorney Report on Closed Session – See page 6479 for the report.

Council Meeting Calendar

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

Consent Agenda
Mayor Keeley pulled item 10 for further discussion.

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

Garrett spoke regarding item 19.

Mayor Keeley closed the public comment period.

8.3 May 23, 2023 CITY COUNCIL MINUTES 6482
Consent Agenda (continued)
MOTION: Councilmember Brown moved, seconded by Vice Mayor Golder, to approve the remaining Consent Agenda.

ACTION: The motion carried with the following vote.

AYES: Councilmembers Newsome, Brown, Brunner (with the exception of item 9), Kalantari-Johnson; Vice Mayor Golder; Mayor Keeley.

NOES: None.

ABSENT: Councilmember Watkins.

DISQUALIFIED: Councilmember Brunner (item 9).

7. Minutes of the May 9, 2023 City Council Meeting (CC) Motion carried to approve as submitted.

8. Council Sugar-Sweetened Beverage Tax Ad Hoc Committee (CN) Motion carried to create a City Council ad hoc committee to explore the feasibility of placing a sugar-sweetened beverage tax measure on the March or November 2024 ballot.

9. Downtown Association: Parking and Business Improvement Area Assessments for FY 2024 (ED)
Motion carried to:
 Approve, or to modify and approve, the plan prepared by the Downtown Association for FY 2024; and
 Adopt Resolution No. NS-30,148, a resolution of intention to levy a Downtown Association Parking and Business Improvement Assessment for FY 2024 and schedule a public hearing for June 13, 2023 on the levy of the assessments for FY 2024.

8.4 May 23, 2023 CITY COUNCIL MINUTES 6483
Consent Agenda (continued)

10. 223 Darwin Street CFSC Loan Extension (APN: 011-122-04) (ED) Mayor Keeley opened the public comment period. The following person spoke.

Stephen La Berg
Mayor Keeley closed the public comment period.

Director of Economic Development and Housing B. Lipscomb responded to Councilmember questions.

MOTION: Councilmember Kalantari-Johnson moved, seconded by Councilmember Brunner, to authorize the City Manager to execute any and all loan documents necessary, in a form approved by the City Attorney, to extend the terms of existing Red Cross-funded loan in the amount of $75,000 to CFSC for the property located at 223 Darwin Street for 30 years with 3% simple interest and deferred payments.

ACTION: The motion carried with the following vote.

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

NOES: Mayor Keeley.

ABSENT: None.

DISQUALIFIED: None.

11. Pacific Collegiate Foundation – Approval of Issuance by the California Municipal Public Financing Authority of Refunding Revenue Bonds for the Purpose of Refinancing the 2016 Variable Rate Revenue Bonds (ED)
Resolution No. NS-30,149 was adopted to approve a non-charter membership agreement (the “Non-Charter Agreement”) with the California Municipal Public Financing Authority (“CalMuni PFA”) to assist the Pacific Collegiate Foundation with the issuance of refunding revenue bonds in an amount not to exceed $6,000,000 for the purpose of refinancing their 2016 Variable Rate Revenue Bonds.

8.5 May 23, 2023 CITY COUNCIL MINUTES 6484
Consent Agenda (continued)

12. Liability Claims Filed Against the City of Santa Cruz (FN) Motion carried to reject the liability claims of 1) Ezekiel C. Tidmore, 2) Judith Laing, 3) Justin Laing; and to return as late claim of 4) Deborah Marie Guadian, based on staff recommendation.

13. Award Contract for eProcurement Solution (FN)
Motion carried to:
 Amend the existing software services agreement, in a form to be approved by the City Attorney, with OpenGov (San Jose, California) to include the purchase of an integrated web-based electronic procurement (eProcurement) and contract management platform for a 3-year term, along with related business process, implementation and support services from June 1, 2023, through May 30, 2026; and,
 Authorize the City Manager to execute the agreement and any amendments within the approved operating budget.

14. Resolution Approving the Tentative Agreement and Adopting the Memorandum of Understanding with Temporary Service Employees SEIU Local 521 (HR) Resolution No. NS-30,150 was adopted approving the Tentative Agreement and adopting the Memorandum of Understanding with Temporary Service Employees SEIU Local 521.

15. Award Contract for Portable Digital Radios (PD)
Motion carried to authorize and direct the City Manager to execute an agreement in a form acceptable to the City Attorney with Motorola Solutions for the lease-purchase of portable digital radios and portable digital radio accessories for the Santa Cruz Police Department in the amount of $899,077.13.

8.6 May 23, 2023 CITY COUNCIL MINUTES 6485
Consent Agenda (continued)

16. Housing Matters Hygiene Bay Remodel Project (c102205) – Notice of Completion (PW)
Motion carried to accept the work of Selden & Son (Watsonville, CA) and authorize the filing of the Notice of Completion for the Housing Matters Hygiene Bay Remodel Project (c102205).

17. Contract Renewal with Hope Services, Inc. for the Resource Recovery Facility (PW)
Motion carried to authorize and direct the City Manager to execute renewal of an agreement in a form acceptable to the City Attorney with Hope Services, Inc., (Santa Cruz, CA) for recycling and litter control services at the City’s Resource Recovery Facility on Dimeo Lane.

18. 2024 Isuzu NRR Cab Chassis with 9-yard Heil Mini Rear Loader – Award Contract (PW)
Motion carried to:
 Award a contract for the purchase of a 2024 Isuzu NRR Cab Chassis with a 9-yard Heil Rear Loader from TEC of California (San Francisco, CA); and  Adopt Resolution No. NS-30,151 transferring and appropriating funds in the FY 2023 budget in the amount of $165,355.40 from Public Works’ Homelessness Response Field salary savings and from the City Manager's Office Homelessness Response Action Plan, California grant project.

19. Water Supply Augmentation, Aquifer Storage and Recovery Beltz 9 Pilot Test, Pueblo Water Resources Professional Services Contract (WT) Motion carried to authorize the City Manager to execute an agreement in a form to be approved by the City Attorney with Pueblo Water Resources of Ventura, CA in the amount of $216,425 to conduct pilot testing of Aquifer Storage and Recovery (ASR) at Beltz Well 9 and authorizing the Water Director to execute amendments within the approved project budget.

End Consent Agenda

8.7 May 23, 2023 CITY COUNCIL MINUTES 6486
Public Hearing

20. Technology Surcharge (PL)
This item has been continued to the meeting of June 13, 2023, and was not discussed on May 23, 2023.

General Business

21. West Cliff Update, including Infrastructure, Transportation, and Roadmap Development (PW/CM)
Assistant City Manager L. Schmidt introduced the item and responded to Councilmember questions.

Director of Public Works N. Nguyen and Transportation Manager M. Starkey gave a presentation and responded to Councilmember questions.

Michael McCormick, President of Farallon Strategies, gave a presentation and responded to Councilmember questions.

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

Al Ramadan
Andrea
Tammy
Unidentified person
Garrett
Gillian Greensite
Nancy
John Edmonds
Mayor Keeley closed the public comment period.

8.8 May 23, 2023 CITY COUNCIL MINUTES 6487
General Business

21. West Cliff Update, including Infrastructure, Transportation, and Roadmap Development (PW/CM) (continued)
MOTION: Councilmember Kalantari-Johnson moved, seconded by Vice Mayor Golder, to:
1) Receive the update on citywide West Cliff work, including infrastructure, transportation, and the development of a roadmap for a resilient and accessible West Cliff; and
2) Kick-off community review of the in-process roadmap to collect additional input and provide an updated draft of the “A Resilient West Cliff, Accessible to All Roadmap” to City Council by end of August 2023, that includes activation of projects listed in the “Post Disaster Projects 0—3 years;” and 3) Through a multi-agency approach, utilize the policy concepts named in the dynamic coast section of the draft roadmap, including nature-based solutions, to develop the “Beyond the Three Years” section to include a 50- year plan by end of 2023.

FRIENDLY AMENDMENT: Mayor Keeley requested to replace the word “kickoff” in #2 with the word “initiate.” Councilmember Kalantari-Johnson and Vice Mayor Golder accepted.

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.

City Council took a break at 4:11 p.m. and returned at 4:22 p.m.

At this time City Council heard item #2.

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

8.9 May 23, 2023 CITY COUNCIL MINUTES 6488
Oral Communications
At 4:36 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.

Kate Hinnenkamp spoke on behalf of the Community Action Board, and invited Council to participate in Community Action Month.

Bradley Snyder spoke regarding safety railing.

Councilmember Brunner spoke on behalf of a member of the public regarding a letter to the editor in the Good Times on hateful speech.

Garrett spoke regarding the City addressing nationwide issues, and funding for services.

At 4:45 p.m. Mayor Keeley closed Oral Communications.

Presentations

22. FY 2024 Proposed Budget
City Manager M. Huffaker and Finance Director E. Cabell gave a presentation providing an overview of the FY 2024 proposed budget.

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

Garrett
Mayor Keeley closed the public comment period.

City Council took a break at 5:33 p.m. and returned at 6:08 p.m.

Director of Economic Development and Housing B. Lipscomb gave a presentation on Economic Development and Housing’s proposed budget for FY 2024 and responded to Councilmember questions.

Director of Planning and Community Development L. Butler gave a presentation on Planning and Community Development’s proposed budget for FY 2024 and responded to Councilmember questions. Principal Management Analyst V.

Pearson responded to Councilmember questions.

8.10 May 23, 2023 CITY COUNCIL MINUTES 6489
Presentations (continued)

22. FY 2024 Proposed Budget (continued)
City Attorney T. Condotti gave a presentation on the City Attorney Office’s proposed budget for FY 2024 and responded to Councilmember questions.

Deputy City Manager L. Murphy gave a presentation on the Homelessness Response’s proposed budget for FY 2024 and responded to Councilmember questions. Homelessness Response Manager L. Imwalle responded to Councilmember questions.

Adjournment – Vice Mayor Golder moved, seconded by Councilmember Brown, to adjourn. By consensus City Council adjourned at 8:55 p.m.

Respectfully Submitted:

Julia Wood, Deputy City Clerk Administrator
Attest:

Bonnie Bush, City Clerk Administrator
Approved:

Fred Keeley, Mayor

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

MINUTES OF A CITY COUNCIL SPECIAL MEETING
May 24, 2023
9:00 AM
Call to Order – Mayor Keeley called the meeting to order at 9:07 a.m. in Council Chambers.

Roll Call

Present: Councilmembers Newsome (left at 10:07 a.m., returned at 12:09 p.m.), Brown, Watkins, Brunner (left at 2:26 p.m.), Kalantari-Johnson; Vice Mayor Golder; Mayor Keeley.

Absent: None.

Staff: City Manager M. Huffaker, Assistant City Manager L. Schmidt, Library Director Y. Wilburn, Finance Director E. Cabell, Chief People Officer S.

De Leon, Director of Information Technology K. Morgan, Deputy Chief of Police J. Bush, Chief of Fire R. Oatey, Director of Public Works N.

Nguyen, Director of Parks and Recreation T. Elliot, Water Director R.

Menard, Director of Planning and Community Development L. Butler (via Zoom), City Attorney T. Condotti (via Zoom), Principal Management Analyst C. Brothers, Principal Management Analyst L. Bass, Deputy City Clerk Administrator J. Wood, City Clerk Administrator B. Bush.

Presentations

1. FY 2024 Proposed Budget
Mayor Keeley opened the public comment period. The following person spoke.

Rick Longinotti
Mayor Keeley closed the public comment period.

Library Director Y. Wilburn gave a presentation on the Library’s proposed budget for FY 2024 and responded to Councilmember questions.

9.1 May 24, 2023 CITY COUNCIL SPECIAL MEETING MINUTES 4917 Presentations (continued)

1. FY 2024 Proposed Budget (continued)
Director of Finance E. Cabell gave a presentation on the Finance Department’s proposed budget for FY 2024 and responded to Councilmember questions. Chief People Officer S. De Leon and Assistant City Manager L. Schmidt responded to Councilmember questions.

Chief People Officer S. De Leon gave a presentation on Human Resources’ proposed budget for FY 2024 and responded to Councilmember questions.

Director of Information Technology K. Morgan gave a presentation on the Information Technology’s proposed budget for FY 2024 and responded to Councilmember questions.

Deputy Chief of Police J. Bush gave a presentation on the Police Department’s proposed budget for FY 2024 and responded to Councilmember questions.

Principal Management Analyst C. Brothers, Finance Director E. Cabell, and City Attorney T. Condotti responded to Councilmember questions.

Chief of Fire R. Oatey gave a presentation on the Fire Department’s proposed budget for FY 2024 and responded to Councilmember questions.

Council took a break at 1:00 p.m. and returned at 2:04 p.m.

MOTION: Councilmember Brown moved, seconded by Councilmember Newsome, to continue the Capital Improvement Program’s presentation to the June 13, 2023 City Council meeting, before the FY 2024 Budget adoption.

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.

9.2 May 24, 2023 CITY COUNCIL SPECIAL MEETING MINUTES 4918 Presentations (continued)

1. FY 2024 Proposed Budget (continued)
Assistant City Manager L. Schmidt gave a presentation on City Council’s and City Manager’s proposed budget for FY 2024 and responded to Councilmember questions.

Director of Public Works N. Nguyen gave a presentation on Public Works’ proposed budget for FY 2024 and responded to Councilmember questions.

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

Bass gave a presentation on Parks and Recreation’s proposed budget for FY 2024 and responded to Councilmember questions.

Water Director R. Menard gave a presentation on the Water Department’s proposed budget for FY 2024 and responded to Councilmember questions.

Adjournment – Vice Mayor Golder moved, seconded by Councilmember Newsome, to adjourn. By consensus City Council adjourned at 5:40 p.m.

Respectfully Submitted:

Julia Wood, Deputy City Clerk Administrator
Attest:

Bonnie Bush, City Clerk Administrator
Approved:

Fred Keeley, Mayor

9.3 City Council

AGENDA REPORT
DATE: 06/01/2023
AGENDA OF: 06/13/2023
DEPARTMENT: Economic Development and Housing
SUBJECT: 333 Locust Street Acquisition Agreement and Budget Adjustment (ED) RECOMMENDATION: Motion to:
1) Adopt a resolution authorizing the City Manager to enter into a Purchase Sale Agreement to purchase the real property located at 333 Locust Street (APN 005-033-03) and execute any and all related documents necessary, in a form approved by the City Attorney; and 2) Adopt a resolution amending the FY 2023 budget in the amount of $1,718,000 to fund the acquisition of the property at 333 Locust Street.

BACKGROUND: The property at 333 Locust Street is a six-unit apartment building that was built in 1877 by Ernest Kunitz. It was awarded a Blue Plaque Historic Landmark in 2011 for exemplifying a charming example of Italianate architecture. The property is bordered on three sides by the City Hall complex. It is the only property on the block bordered by Locust, Center, Church and Chestnut streets that is not owned by the City. The property has multiple owners, successors of the A. Kirkham Smith and Patricia W. Smith Revocable Living Trust. At this time, they are interested in selling the property.

DISCUSSION: Purchase of the Kunitz House by the City provides a strategic opportunity to control future development and use of that property in the context of the larger City Hall campus and surrounding City parking lots and City Hall offices. The building is 3,236 square feet spread over two stories and the lot is 5,358 square feet. It contains four, one-bedroom units and two studios.

In November 2022, an existing appraisal review and a new appraisal of the property was conducted. At that time the market value of the property was reasonably estimated to be in the $1.6 to $1.7 million range based on other comparable sales. The major factor limiting the appraisal sale price is that the rental income is currently below market rate with future increases limited by Assembly Bill 1482 and the City's Large Rent Increase Ordinance. The rental income as of February 2023 is approximately $93,000 annually. For this reason, and given the age of the building, the agreed upon fair market value of $1,575,000 is slightly lower than the original appraisal. Existing leases will remain in place and no current tenants will be impacted by the change of ownership.

10.1 A Phase I Environmental Site Assessment conducted by Weber, Hayes & Associates in January 2023 found no recognized environmental conditions based on review of on-site and off-site conditions. Based on review of historical information, the structure is of an age where leadbased paint and/or asbestos containing materials may have been used in its construction and/or additions, so prior to conducting renovations or demolition work, a building materials survey would need to be completed.

In February 2023 a property inspection was conducted of the interior and exterior of the building, the outbuilding, containing storage and a laundry room, and the grounds. As expected with a property of this size and age, a number of repairs were identified. The report can serve as a blueprint for future maintenance projects. It is planned that a professional property management company will be engaged to collect rents, manage repairs, and provide coverage for tenant responsiveness.

Health in All Policies (HiAP)
The recommendation is consistent with the Health in All Policies pillars of equity, public health, and sustainability. It is envisioned that the residential units could be eventually used to expand the supply of affordable housing and, potentially provide transitional housing opportunities for newly hired City staff while they search for long-term housing.

FISCAL IMPACT: Initial outlay for the property purchase, transaction costs, and any necessary renovations would reduce the balance available in the City Public Trust fund by $1,625,000. Rental income generated by the property would be returned to the City Public Trust Fund less any funding needed to pay for on-going maintenance, capital improvements, and property management.

Prepared By:

Kathryn Mintz
Development Manager
Submitted By:

Bonnie Lipscomb
Director of Economic
Development and Housing
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

2. BUDGET ADJUSTMENT.PDF

10.2 RESOLUTION NO. NSRESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ AUTHORIZING THE CITY MANAGER TO PURCHASE THE REAL PROPERTY LOCATED AT 333 LOCUST STREET (APN 005-033-03)
WHEREAS, the property located at 333 Locust Street is the only property on the block bordered by Locust, Center, Church, and Chestnut streets that is not owned by the City of Santa Cruz; and
WHEREAS, the City of Santa Cruz wishes to acquire the property to facilitate any future development of City property; and
WHEREAS, the A. Kirkham Smith and Patricia W. Smith Revocable Living Trust under Agreement dated September 27, 1982, or any Successor in Trust, has agreed to sell the property located at 333 Locust Street to the City; and
WHEREAS, the City Public Trust has sufficient funds to purchase the property.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz that that the City Manager is authorized to execute the purchase agreement with the A. Kirkham Smith and Patricia W. Smith Revocable Living Trust under Agreement dated September 27, 1982, or any Successor in Trust, in the amount of $1,575,000 from the City Public Trust for acquisition of the property located at 333 Locust Street (APN 005-033-03), under the terms and conditions presented herein.

PASSED AND ADOPTED this 13th day of June, 2023 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED:

Fred Keeley, Mayor
ATTEST:

Bonnie Bush, City Clerk Administrator

10.3 City of Santa Cruz

BUDGET ADJUSTMENT REQUEST
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25EXPENDITURE ACCOUNT TITLE
NET: $

REQUESTED BY DEPARTMENT HEAD

APPROVAL

BUDGET/ACCOUNTING
5(9,(:('

FINANCE DIRECTOR

APPROVAL

CITYMANAGER

APPROVAL
5HVR

352-(&7
352-(&7
$02817
$02817
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TOTAL EXPENDITURE

TOTALREVENUE
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Clear Form
2023
04/20/2023
City Public Trust funding of City acquisition costs of property known as Kunitz House located at 333 Locust Street located within the footprint of the City Hall Complex. Kunitz House Management project will receive rental income to be used primarily for property operations, maintenance and repayment to the City Public Trust Fund. 311-00-00-0000-49108 c512301-914-0-0 Transfer from City Public Trust 1,625,000 101-51-80-5591-46201 p512303-106-1026-0 Kunitz House Management: Rental income 93,000 1,718,000
130-00-00-0000-59103 Transfer to the CIP Fund 1,625,000 311-51-80-9990-57103 c512301-100-2020-0 Property acquisition costs 1,625,000 101-51-80-5591-54990 p512303-100-2020-0 Kunitz House Managment: Supplies and services 93,000 3,343,000
-1,625,000
Kathryn
Mintz
Digitally signed by Kathryn Mintz
DN: cn=Kathryn Mintz, o=City of
Santa Cruz, ou=Dept of Economic
Development,
[email protected],
c=US
Date: 2023.04.24 12:03:20 -07'00'
Bonnie
Lipscomb
Digitally signed by Bonnie Lipscomb
DN: cn=Bonnie Lipscomb, o=City of
Santa Cruz, ou=Economic
Development,
[email protected]
om, c=US
Date: 2023.04.24 15:04:56 -07'00'
Elizabet
h Cabell
Digitally signed by Elizabeth Cabell
DN: cn=Elizabeth Cabell, o=City of
Santa Cruz, ou=Finance
Department,
[email protected],
c=US
Date: 2023.06.05 07:24:24 -07'00'
Elizabet
h Cabell
Digitally signed by Elizabeth Cabell
DN: cn=Elizabeth Cabell, o=City of Santa Cruz,
ou=Finance Department,
[email protected], c=US
Date: 2023.06.05 07:24:40 -07'00'

10.4 City Council

AGENDA REPORT
DATE: 05/23/2023
AGENDA OF: 06/13/2023
DEPARTMENT: Finance
SUBJECT: Liability Claims Filed Against the City of Santa Cruz (FN) RECOMMENDATION: Motion to reject the liability claims of 1) Dominique Townsend, 2) Michael B. Smith, and 3) Ginaia Kelly, based on staff recommendation.

BACKGROUND: N/A
DISCUSSION: I. Claims to be rejected:

1. Claimant: Dominique Townsend
Date of occurrence: 01/03/2023
Date of claim: 05/02/2023
Amount of claim: $50,000.00
Claimant seeks general damages and reimbursement for medical expenses allegedly caused by a trip and fall.

Represented by legal counsel.

2. Claimant: Michael B. Smith
Date of occurrence: 02/04/2023
Date of claim: 05/11/2023
Amount of claim: $18,500.00
Claimant seeks reimbursement for damages to property allegedly related to police actions.

Self-Represented

3. Claimant: Ginaia Kelly
Date of occurrence: 11/20/2022
Date of claim: 05/15/2023
Amount of claim: $4,296.80
Claimant seeks reimbursement for damages to their vehicle allegedly caused by an improperly marked island in the roadway.

11.1 Self-Represented
FISCAL IMPACT: No fiscal impact.

Prepared By:

Ross Brandon
Risk & Safety Manager
Submitted By:

Elizabeth Cabell
Finance Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

11.2 City Council

AGENDA REPORT
DATE: 05/23/2023
AGENDA OF: 06/13/2023
DEPARTMENT: Finance
SUBJECT: General Obligation Refunding Bonds - Tax Rate Authorization (FN) RECOMMENDATION: Resolution setting the tax rate for FY 2024 with respect to the City’s General Obligation Refunding Bonds.

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

DISCUSSION: For the upcoming property tax billing, the City directs the County of Santa Cruz to levy on all taxable property in the City, in addition to all other taxes, a continuing direct and ad valorem tax in the amount of $524,800.85 to be used toward the payment of principal and interest coming due on the Bonds. Because the County of Santa Cruz is on the “Teeter Plan,” the City will receive 100% of the assessment. There is no need to factor in an amount for delinquencies.

The attached resolution establishes the appropriate tax rate, and instructs the Director of Finance to forward a copy to the County of Santa Cruz and take whatever action is necessary to have the assessment placed on the 2023-2024 property tax bills.

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

Prepared By:

Nicholas Gong
Senior Accountant
Submitted By:

Elizabeth Cabell
Director of Finance
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. FY24 GO BOND LEVY RESOLUTION.DOCX

12.1 RESOLUTION NO. NSRESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ SETTING THE TAX RATE FOR FY 2024 WITH RESPECT TO GENERAL OBLIGATION REFUNDING BONDS WHEREAS, more than two-thirds of the electors voting at a special municipal election held on November 3, 1998, voted for a proposition authorizing the issuance by the City of general obligation bonds in the aggregate principal of $7,000,000 (the "1998/1999 Bonds") for the purpose of providing funds for certain municipal improvements, including fire station improvements, community park improvements, and the acquisition of property to be used for open space purposes; and WHEREAS, pursuant to such authorization the City has previously issued the 1998/1999 Bonds in the form of $4,500,000 principal amount of current interest bonds and $2,498,473.25 principal amount of capital appreciation bonds; and
WHEREAS, the City Council has issued and sold its City of Santa Cruz 2009 General Obligation Refunding Bonds (the “Refunding Bonds”) in the aggregate principal amount not to exceed $8,000,000 for the purpose of refunding all of the outstanding 1999 current interest bonds and all of the outstanding 1998 capital appreciation bonds and thereby realizing financial savings to the property tax payers of the City; and WHEREAS, pursuant to Section 43632 of the California Government Code, the City Council is required annually to levy and collect until the bonds are paid, or until there is a sufficient amount in the treasury set apart to meet all payments of principal and interest coming due, a tax sufficient to pay the principal of and interest on the Refunding Bonds coming due and payable before the proceeds of a tax levied at the next general tax levy will be available; and
WHEREAS, the City has determined that it is necessary to levy and collect an amount of $524,800.85 toward the payment of principal and interest coming due on the Refunding Bonds on March 1 and September 1, 2024, and thereby directs the County of Santa Cruz to levy on all taxable property in the City, in addition to all other taxes, a continuing direct and ad valorem tax in the amount of $524,800.85 based on the estimated assessed values for all rolls (secured, unsecured and utility) for FY 2024.

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

Section 1. Levy of Tax. The City Council hereby determines that the tax rate necessary to pay the principal of and interest on the Refunding Bonds coming due and payable on March 1 and September 1, 2024, is equal to a continuing direct and ad valorem tax in the amount of $524,800.85, and such tax rate shall be and is hereby levied in accordance with all applicable requirements of law.

Section 2. Collection of Tax. The Director of Finance is hereby directed to forward a copy of this Resolution to the Auditor-Controller of the County of Santa Cruz and to the Board of Supervisors of the County of Santa Cruz, and to take such actions and execute such documents as may be required to cause the tax rate set forth in Section 1 to be placed on the 2023-2024 property tax bills and collected by the County of Santa Cruz.

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

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

12.2 PASSED AND ADOPTED this 13th day of June, 2023 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED________________________
Fred Keeley, Mayor
ATTEST: ___________________________
Bonnie Bush, City Clerk Administrator

12.3 City Council

AGENDA REPORT
DATE: 06/01/2023
AGENDA OF: 06/13/2023
DEPARTMENT: Human Resources
SUBJECT: Resolution Amending the Personnel Complement and Classification and Compensation Plans for the FY 2023 Budget for the Police Department (HR)
RECOMMENDATION: Resolution amending the Classification and Compensation Plan and the FY 2023 Personnel Complement by approving a classification change in the Police Department.

BACKGROUND: The Deputy Police Chief classification has received a Vehicle Allowance of $400 per month as part of their compensation and benefits package while using their personal vehicle in the course of Police Department business.

DISCUSSION: The recent Police Management Association Successor Memorandum of Understanding (MOU) dated March 20, 2023 included the agreement that effective the first pay period after Council approves the MOU in open session, the parties agree that the Deputy Police Chiefs will be allowed to use a take home vehicle and the current $400 vehicle allowance would be removed and exchanged for a commensurate increase to base pay as pensionable compensation.

The Council approval date was April 25, 2023, and therefore the new pay for the Deputy Police Chief would be effective April 29, 2023. It was determined by the City that the commensurate pay increase in lieu of the vehicle allowance would be $300 per month or $1.73 per hour. The current salary range for the Deputy Police Chief is $14,245 - $17,315 per month. The new salary range will be $14,545 to $17,615 per month.

FISCAL IMPACT: There is no fiscal impact to this change since the substitution of the vehicle allowance amount was offset for a commensurate increase in base pay amount.

Prepared By:

Cathy Bonino
Principal HR Analyst
Submitted By:

Sara De Leon
Chief People Officer
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. HR RESOLUTION POLICE DEPARTMENT.DOCX

13.1 RESOLUTION NO. NS-XX,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ AMENDING

THE PERSONNEL COMPLEMENT AND CLASSIFICATION AND COMPENSATION PLANS TO THE FY 2023 BUDGET – POLICE DEPARTMENT
WHEREAS, City Council adopted Resolution No. NS-30,135 approving the Memorandum of Understanding (MOU) for the Police Management Association effective March 3, 2023 through March 12, 2027,
WHEREAS, the approved MOU included modifying Classification and Compensation Plans for the Deputy Police Chiefs.

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

That effective April 29, 2023, the City of Santa Cruz Classification and Compensation Plans be modified to:

Activity Classification No. and Title Salary (New Classifications and Changes)
POLICE
Classification Salary
Change
550-xxx
550- Deputy Police Chief
From: $14,245/mo - $17,315/mo
To: $14,545/mo - $17,615/mo
PASSED AND ADOPTED this 13th day of June 2023, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

13.2 City Council

AGENDA REPORT
DATE: 06/01/2023
AGENDA OF: 06/13/2023
DEPARTMENT: Planning and Community Development
SUBJECT: Suspension of the Natural Gas Prohibition Ordinance (PL) RECOMMENDATION: Resolution suspending enforcement of Santa Cruz Municipal Code

6.100 Prohibition of Natural Gas Infrastructure in new buildings.

BACKGROUND: On April 14, 2020, City Council unanimously adopted the Natural Gas Prohibition Ordinance, adding Chapter 6.100 to the Santa Cruz Municipal Code (SCMC) which prohibits natural gas infrastructure in new buildings. The Ordinance was adopted as part of the City’s ongoing efforts to improve building energy efficiency, support renewable energy sources, and accelerate decarbonization. The ordinance was modeled after the City of Berkeley’s natural gas prohibition which was also recently adopted at the time. Santa Cruz’s ordinance did provide exceptions that the Berkeley ordinance did not, with the most important being that restaurants would still be allowed to use natural gas (for cooking purposes only). For more information on the ordinance and its role in building electrification efforts, SCMC Chapter 6.100 text is attached as well as the Building Electrification City Council Agenda Report of March 24, 2020.

On April 17, 2023, the California Ninth Circuit Court of Appeals struck down the City of Berkeley’s natural gas prohibition as part of the ruling in California Restaurant Association v.

City of Berkeley. The Ninth Circuit Opinion holds that the Energy Policy and Conservation Act (EPCA) preempts the City of Berkeley’s ordinance as the EPCA does not allow State and local governments to prohibit an end-user’s ability to use natural gas products. This ruling calls into question Santa Cruz’s ability to enforce its Natural Gas Prohibition Ordinance given the similarities between the two ordinances.

DISCUSSION: The City Attorney’s Office analyzed the City of Berkeley ruling and determined that the City of Santa Cruz’s exceptions in its Natural Gas Prohibition Ordinance do not enable the City to avoid the decision’s applicability to the City. The ruling is being appealed, but until further court decisions are made, staff recommends that the City Council approve a resolution suspending enforcement of SCMC Chapter 6.100. The resolution to suspend enforcement of SCMC Chapter 6.100 is attached.

Should this ruling stand, staff are already contemplating alternatives to a natural gas prohibition that allow the City to help achieve its energy and decarbonization goals. These were being considered as part of the existing building electrification efforts and will now be contemplated for both existing buildings and new construction. One possibility could be enforcing stricter energy efficiency standards through the Building Code. This type of regulation would be allowed

14.1 despite the City of Berkeley ruling because it would not prohibit natural gas, but it would disincentivize natural gas in favor of building electrification. An interdepartmental team of staff was already formed last year to work on decarbonization efforts, and this team will continue to work on alternatives that further sustainable development.

Health in All Policies
The goal of Health in All Policies (HiAP) is to ensure that decision-makers are informed about the impacts on the three HiAP pillars of health, equity, and sustainability when reviewing projects and policy options. While the City’s Natural Gas Prohibition Ordinance greatly supported health and sustainability throughout the City, the Ninth Circuit’s California Restaurant Association v. City of Berkeley deemed this type of ordinance to not be in compliance with the law. Therefore, suspending the City’s Ordinance until further notice protects the City from other lawsuits that could affect the fiscal sustainability of the City.

ENVIRONMENTAL REVIEW: This resolution suspending the noted City ordinance is done to comply with applicable case law and associated federal law and as such is mandated, thus it is not a project subject to the California Environmental Quality Act (CEQA) and does not require any further environmental review or documentation.

FISCAL IMPACT: It is anticipated that there will be a small increase in staff time related to building field inspections as the gas piping field will be reintroduced for new construction.

Otherwise, this resolution would have no direct effect on the fiscal conditions of the City.

Suspension of the Natural Gas Prohibition Ordinance will protect the City from lawsuits that would have a longer-term negative effect on the City’s fiscal conditions.

Prepared By:

Matt VanHua
Principal Planner
Submitted By:

Lee Butler
Director of Planning and
Community Development
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

2. SCMC CHAPTER 6.100.PDF

3. BUILDING ELECTRIFICATION CITY COUNCIL AGENDA REPORT - 3.24.20.PDF

14.2 RESOLUTION NO.

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

AUTHORIZING AND DIRECTING THE CITY MANAGER AND THE PLANNING AND

COMMUNITY DEVELOPMENT DIRECTOR TO ADMINISTRATIVELY SUSPEND ENFORCEMENT OF SANTA CRUZ MUNICIPAL CODE CHAPTER 6.100, CONSISTENT

WITH, AND AS REQUIRED BY, THE DECISION OF THE NINTH CIRCUIT COURT OF APPEAL RULING IN CALIFORNIA RESTAURANT ASSOCIATION V. CITY OF BERKELEY

AND ANY SUBSEQUENT JUDICIAL PROCEEDING OR ORDER OF THE COURT

RELATED TO THE TIMING AND APPLICATION OF THE RULING
WHEREAS, on April 14, 2020, City Council adopted Ordinance No. 2020-06, now codified as City of Santa Cruz Municipal Code Chapter 6.100 (Prohibition of Natural Gas Infrastructure in New Buildings); and
WHEREAS, on April 17, 2023, a three-judge panel of the Ninth Circuit Court of Appeal issued a decision holding that an ordinance of the City of Berkeley with similar provisions as the City’s ordinance is preempted by the Energy Policy and Conservation Act of 1975; and WHEREAS, while the Berkeley decision is currently binding precedent in the 9th Circuit Court of Appeals, the City of Berkeley may seek en banc review or petition the U.S. Supreme Court for a writ of certiorari and, therefore the binding nature of the case on parties other than the litigants has not been finally resolved.

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

SECTION 1. Authorization and Direction to Suspend Enforcement. The City Manager and Planning and Community Development Director are hereby authorized and directed to suspend enforcement of City of Santa Cruz Municipal code Chapter 6.100, consistent with, and as required by, the decision of the Ninth Circuit Court of Appeals ruling in California Restaurant Association v. City of Berkeley and any subsequent judicial proceeding and/or order of the Court related to the timing and application of the ruling.

SECTION 2. Notice. Notice of the action suspending enforcement of Chapter 6.100 shall be made publicly available for review and posted to the City’s website, and shall also be provided to affected development applicants in the city at the time of application, or as otherwise necessary to provide direct notice to applicants regarding the impacts of such actions on the processing of their applications.

14.3 PASSED AND ADOPTED this 13th day of June 2023, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

14.4 6/1/23, 9:06 AM Chapter 6.100 PROHIBITION OF NATURAL GAS INFRASTRUCTURE IN NEW BUILDINGS https://www.codepublishing.com/CA/SantaCruz/#!/SantaCruz06/SantaCruz06100.html#6.100 1/9 Chapter 6.100

PROHIBITION OF NATURAL GAS INFRASTRUCTURE IN NEW

BUILDINGS
Sections:

6.100.010 Findings and purpose.

6.100.020 Applicability.

6.100.030 Definitions.

6.100.040 Prohibited natural gas infrastructure in newly constructed buildings.

6.100.050 Public interest exemption.

6.100.055 Revocable building and infrastructure exemptions.

6.100.057 Revocation of natural gas infrastructure exemption.

6.100.060 Appeals.

6.100.070 Severability.

6.100.080 Effective date.

6.100.090 Violations.

6.100.100 Additional remedies.

6.100.010 FINDINGS AND PURPOSE.

The city council finds and expressly declares as follows:

A. Scientific evidence has established that natural gas combustion as well as leakage occurring during natural gas procurement, transportation, storage, and distribution produce significant greenhouse gas emissions that contribute to global warming and climate change.

B. The following addition to the Santa Cruz Municipal Code is reasonably necessary because of local climatic, geologic, and topographical conditions as listed below:

14.5 6/1/23, 9:06 AM Chapter 6.100 PROHIBITION OF NATURAL GAS INFRASTRUCTURE IN NEW BUILDINGS https://www.codepublishing.com/CA/SantaCruz/#!/SantaCruz06/SantaCruz06100.html#6.100 2/9 (1) As a coastal city located on the Monterey Bay, Santa Cruz is vulnerable to sea level rise, and human activities releasing greenhouse gases into the atmosphere causing increases in worldwide average temperature, which contribute to melting of glaciers, melting of ice floes, and thermal expansion of ocean water resulting in rising sea levels, reduced earth albedo, and cryosphere loss.
(2) Santa Cruz is already experiencing the repercussions of excessive greenhouse gas emissions as rising sea levels have threatened the city’s shoreline, and have caused the city to expend funds to implement preliminary protective climate adaptation measures inasmuch as the city of Santa Cruz projects that by the end of the century nearly one billion dollars in property and infrastructure are exposed to the threats of coastal climate hazards. (3) Santa Cruz is situated along a wildland-urban interface (WUI) and is extremely vulnerable to wildfires and firestorms, and human activities releasing greenhouse gases into the atmosphere cause an increase in worldwide average temperature, seasonal wind, rain, and drought conditions, altered vegetative fuel, altered diurnal temperature and humidity, and length and intensity of fire seasons.
(4) Santa Cruz is vulnerable to increased threat from new and newly mutated airborne, avian, insect, and rodent borne pathogens arising from altered temperature and humidity conditions in both the natural and built environment.
(5) Structures in Santa Cruz are located along or near the San Andreas, Zayante-Vergeles, San Gregorio, and Monterey Bay-Tularcitos faults, which, collectively and individually, maintain the potential to produce serious damage, fires, and or explosions as a result of damage to natural gas infrastructure in buildings due to unforeseeable seismic activity.

C. The following addition to the Santa Cruz Municipal Code is also reasonably necessary because of health and safety concerns as Santa Cruz residents suffer from asthma and other health conditions associated with poor indoor and outdoor air quality exacerbated by the combustion of natural gas.

D. As described in the city of Santa Cruz Climate Action Plan (Resolution No. NS-28,564) and Santa Cruz Climate Emergency Declaration (Resolution No. NS-29,462) rapid, far-reaching and unprecedented changes in all aspects of society are required to limit global warming and the resulting environmental threat posed by climate change, including the prompt phasing out of natural gas as a fuel for heating and cooling infrastructure in new buildings.

E. Substitute electric heating and cooling infrastructure in new buildings fueled by less greenhouse gas intensive electricity is linked to significantly lower greenhouse gas emissions and is cost

14.6 6/1/23, 9:06 AM Chapter 6.100 PROHIBITION OF NATURAL GAS INFRASTRUCTURE IN NEW BUILDINGS https://www.codepublishing.com/CA/SantaCruz/#!/SantaCruz06/SantaCruz06100.html#6.100 3/9 competitive because of the aggregate cost savings associated with all electric designs that avoid new gas infrastructure and increasing natural gas fuel prices.

F. All-electric building design benefits the health, welfare, and resiliency of Santa Cruz and its residents.

G. The most cost-effective time to integrate electrical infrastructure is in the design phase of a building project because building systems and spaces can be designed to optimize the performance of electrical systems inasmuch as projects can take full advantage of avoided costs and space requirements from the elimination of natural gas piping and equipment venting systems.

H. The intent of this chapter is to eliminate natural gas infrastructure and associated greenhouse gas emissions in new buildings where all-electric infrastructure can be most practicably integrated, thereby reducing the environmental and health hazards produced by the consumption and transportation of natural gas.
(Ord. 2020-06 § 1 (part), 2020).

6.100.020 APPLICABILITY.

A. The requirements of this chapter apply to design permit applications submitted on or after the effective date of this chapter for all newly constructed buildings as defined in this chapter, proposed to be located in whole or in part within the city. The prohibition of natural gas infrastructure shall apply in perpetuity, unless a separate exemption applies pursuant to the provisions of the chapter.

B. The requirements of the chapter also apply to all building permit applications for newly constructed buildings not requiring a design permit when such building permit application is submitted one hundred twenty or more days following the effective date of this chapter for all newly constructed buildings proposed to be located in whole or in part within the city. Said applications must be deemed natural gas-free confirmed at submission with a declaration on the architectural drawings cover sheet:
“Natural Gas-Free Design.” The prohibition of natural gas infrastructure shall apply in perpetuity, unless a separate exemption applies pursuant to the provisions of the chapter.

C. The requirements of this chapter shall not apply to the use of portable propane appliances for outdoor cooking, refrigeration, and heating.

D. This chapter shall in no way be construed as amending California Energy Code requirements under California Code of Regulations, Title 24, Part 6, nor as requiring the use or installation of any specific appliance or system as a condition of approval.

14.7 6/1/23, 9:06 AM Chapter 6.100 PROHIBITION OF NATURAL GAS INFRASTRUCTURE IN NEW BUILDINGS https://www.codepublishing.com/CA/SantaCruz/#!/SantaCruz06/SantaCruz06100.html#6.100 4/9 E. The requirements of this chapter shall be incorporated into conditions of approval for design permits issued pursuant to Chapter 24.08.
(Ord. 2020-06 § 1 (part), 2020).

6.100.030 DEFINITIONS.

A. “Applicant” shall mean an applicant for a building permit under Chapter 18.04 or a design permit under Chapter 24.08.

B. “Energy Code” shall mean the California Energy Code as adopted in Section 18.04.30.

C. “Greenhouse gas emissions” mean gases that trap heat in the atmosphere.

D. “Natural gas” shall have the same meaning as “fuel gas” as defined in California Plumbing Code and Mechanical Code.

E. “Natural gas infrastructure” shall be defined as fuel gas piping, other than service pipe, in or in connection with a building, structure or within the property lines of premises, extending from the point of delivery at the gas meter as specified in the California Mechanical Code and Plumbing Code.

F. “Newly constructed building” shall be defined as in the California Building Code Section 202 as: “a building that has never before been used or occupied for any purpose.” G. “Design permit” shall be defined as in Chapter 24.08.

H. “Restaurant” shall be defined as any newly constructed building with construction plans for a restaurant, commercial kitchen, or similar related occupancies with specified kitchen containing food cooking equipment, including stationary, outdoor kitchens.

I. “Facility employing industrial process heat” shall be defined as any newly constructed building including process equipment for sustained temperatures typically in excess of three hundred fifty degrees Fahrenheit for which the industrial process temperatures required are demonstrably not achievable with commercial electric equipment.

J. “New construction detached accessory dwelling unit” means any accessory dwelling unit that includes new construction, does not share a wall, ceiling or flooring with an existing residential structure, and which does not meet the definition and requirements for a conversion accessory dwelling unit in Section 24.16.125.

14.8 6/1/23, 9:06 AM Chapter 6.100 PROHIBITION OF NATURAL GAS INFRASTRUCTURE IN NEW BUILDINGS https://www.codepublishing.com/CA/SantaCruz/#!/SantaCruz06/SantaCruz06100.html#6.100 5/9 K. “Natural gas free confirmed” means any newly constructed building design utilizing no fuel gas as defined in California Plumbing Code and Mechanical Code. (Ord. 2020-06 § 1 (part), 2020).

6.100.040 PROHIBITED NATURAL GAS INFRASTRUCTURE IN NEWLY CONSTRUCTED BUILDINGS.

A. Except as set forth in subsections (A)(1) and (A)(2) and Sections 6.100.50, 6.100.55, and

6.100.60, natural gas infrastructure shall be prohibited in newly constructed buildings.

1. Exception. Natural gas infrastructure may be permitted in a newly constructed building if the applicant establishes that it is not physically feasible to construct the building without natural gas infrastructure. For purposes of this exception, “physically feasible” to construct the building means either an all-electric prescriptive compliance approach is available for the building under the Energy Code or the building is able to achieve the performance compliance standards under the Energy Code using commercially available technology and an approved calculation method.

2. Exception. Newly constructed buildings are allowed to extend inactive natural gas infrastructure to commercial or industrial spaces that are anticipated to qualify for the exceptions contained in this chapter. The inactive natural gas infrastructure shall not be activated or otherwise used unless the exemptions specified in this chapter have been confirmed as part of the issuance of a building permit.

B. To the extent that natural gas infrastructure is permitted, it shall be permitted to extend to any system, device, or appliance within a building for which an equivalent all-electric system or design is not available.

C. Newly constructed buildings shall nonetheless be required at a minimum to have sufficient reserved circuit breakers and electrical conduit to facilitate future full building electrification as certified by affidavit of either a registered design professional or a licensed electrical contractor.

D. The requirements of this section shall be deemed objective planning standards under Government Code Section 65913.4 and objective development standards under Government Code Section 65589.5.
(Ord. 2020-06 § 1 (part), 2020).

6.100.050 PUBLIC INTEREST EXEMPTION.

A. Notwithstanding the requirements of this chapter and the greenhouse gas emissions and other public health and safety hazards associated with natural gas infrastructure, minimally necessary and

14.9 6/1/23, 9:06 AM Chapter 6.100 PROHIBITION OF NATURAL GAS INFRASTRUCTURE IN NEW BUILDINGS https://www.codepublishing.com/CA/SantaCruz/#!/SantaCruz06/SantaCruz06100.html#6.100 6/9 specifically tailored natural gas infrastructure may be allowed in a newly constructed building; provided, that the entitling or permitting body establishes that the use serves the public interest. In determining whether the construction of natural gas infrastructure is in the public interest, the city may consider:

1. The availability of alternative technologies or systems that do not use natural gas;

2. Any other impacts that the decision to allow natural gas infrastructure may have on the health, safety, or welfare of the public.

B. If the installation of natural gas infrastructure is granted under a public interest exemption, the newly constructed buildings shall nonetheless be required at the minimum to have sufficient reserved circuit breakers and electrical conduit to facilitate future full building electrification as certified by affidavit of either a registered design professional or a licensed electrical contractor. (Ord. 2020-06 § 1 (part), 2020).

6.100.055 REVOCABLE BUILDING AND INFRASTRUCTURE EXEMPTIONS.

Notwithstanding the requirements of this chapter and the greenhouse gas emissions and other public health and safety hazards associated with natural gas infrastructure, minimally necessary and specifically tailored natural gas infrastructure shall be allowed in a new constructed building on a revocable basis limited to the duration of time during which one of the conditions set forth below is satisfied and the building continues occupancy as the original design specified in the construction drawings permitted by the city as a newly constructed building:

A. Restaurant. A newly constructed building meeting the definition of restaurant in Section

6.100.030. The scope of the exemption extends to the preparation of food only, not HVAC or water heating appliances.

B. Facility Employing Industrial Process Heat. A newly constructed building meeting the definition of facility employing industrial process heat in Section 6.100.030 as certified by affidavit of either a registered design professional or a licensed mechanical or electrical contractor. The scope of the exemption extends to process equipment only, not HVAC or water heating appliances.

C. New construction detached accessory dwelling unit less than or equal to seven hundred fifty square feet on a parcel with an existing residential structure with existing natural gas infrastructure. A newly constructed building of less than or equal to seven hundred fifty square feet conditioned floor area which meets the definition of new construction detached accessory dwelling unit in Section

6.100.030 and will be constructed on a parcel with an existing residential structure with natural gas

14.10 6/1/23, 9:06 AM Chapter 6.100 PROHIBITION OF NATURAL GAS INFRASTRUCTURE IN NEW BUILDINGS https://www.codepublishing.com/CA/SantaCruz/#!/SantaCruz06/SantaCruz06100.html#6.100 7/9 infrastructure serving it at the time of permit application, where both the existing residential structure and natural gas infrastructure serving it shall remain intact at the time of receipt of certificate of occupancy for the same exempted new construction detached accessory dwelling unit less than or equal to seven hundred fifty square feet. The scope of the exemption extends to HVAC and water heating appliances. The scope of the exemption does not extend to indoor cooking appliances in order to provide uniform reduction in indoor air quality hazards across all residential newly constructed buildings.
(Ord. 2020-06 § 1 (part), 2020).

6.100.057 REVOCATION OF NATURAL GAS INFRASTRUCTURE EXEMPTION.

At such time as the conditions of the applicable revocable building and infrastructure exemption of Section 6.100.055 cease to be satisfied, the natural gas delivery infrastructure shall either be capped, otherwise terminated, or removed by the entity previously entitled to the exemption, in a manner pursuant to all applicable codes.
(Ord. 2020-06 § 1 (part), 2020).

6.100.060 APPEALS.

A. The decision on whether a building is exempt from the provisions of this chapter based on the use of the building for potential future uses, as specified in Section 6.100.040; for furthering the public interest, as specified in Section 6.100.050; for restaurant, as specified in Section 6.100.055(A); or for new construction accessory dwelling unit less than or equal to seven hundred fifty square feet, as specified in Section 6.100.055(C), is made by the zoning administrator without the need for a hearing and the decision is appealable to the planning commission.

B. The decision on whether a building is exempt from the provisions of this chapter based on physical feasibility in Section 6.100.040 or facility employing industrial process heat in Section

6.100.055(B) is made by the chief building official and the decision is appealable to the building board of appeals.
(Ord. 2020-06 § 1 (part), 2020).

6.100.070 SEVERABILITY.

If any word, phrase, sentence, part, section, subsection, or other portion of this chapter, or any application thereof to any person or circumstance, is declared void, unconstitutional, or invalid for any reason, then such word, phrase, sentence, part, section, subsection, or other portion, or the prescribed application thereof, shall be severable, and the remaining provisions of this chapter, and all applications thereof, not having been declared void, unconstitutional or invalid, shall remain in full force and effect. The city council hereby declares that it would have passed this title, and each

14.11 6/1/23, 9:06 AM Chapter 6.100 PROHIBITION OF NATURAL GAS INFRASTRUCTURE IN NEW BUILDINGS https://www.codepublishing.com/CA/SantaCruz/#!/SantaCruz06/SantaCruz06100.html#6.100 8/9 section, subsection, sentence, clause and phrase of this chapter, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases are declared invalid or unconstitutional. (Ord. 2020-06 § 1 (part), 2020).

6.100.080 EFFECTIVE DATE.

A. The provisions of this chapter shall become effective on July 1, 2020.

B. The ordinance codified in this chapter shall be submitted to the California Building Standards Commission following adoption as consistent with state law. (Ord. 2020-06 § 1 (part), 2020).

6.100.090 VIOLATIONS.

Violation Penalties. Persons who shall violate a provision of this code or shall fail to comply with any of the requirements thereof or install, alter, repair or do work in violation of the approved construction documents or of a permit or certificate issued under provisions of this chapter shall be guilty of an infraction.

Acts denominated as infractions shall not be punishable by imprisonment. Every violation determined to be an infraction is punishable by:

1. A fine not exceeding one hundred dollars for a first violation and discontinuance of fuel gas service;

2. A fine not exceeding two hundred dollars for a second violation of the same provision of this code within one year and discontinuance of fuel gas service;

3. A fine not exceeding five hundred dollars for each additional violation of the same provision of this code within one year and discontinuance of fuel gas service.

A person charged with an infraction shall not be entitled to a trial by jury. A judgment that a person convicted of an infraction be punished by fine may also provide for the payment to be made within a specified time or in specified installments, contingent upon the person giving his or her written promise to pay the fine as provided. Any person who willfully violates any such written promise is guilty of a misdemeanor. Each day that a violation continues after due notice has been served shall be deemed a separate offense. Nothing contained herein shall be deemed to limit the city’s authority to enforce the provisions of this chapter pursuant to any other authority specified in the municipal code, or any other applicable state law.
(Ord. 2020-06 § 1 (part), 2020).

14.12 6/1/23, 9:06 AM Chapter 6.100 PROHIBITION OF NATURAL GAS INFRASTRUCTURE IN NEW BUILDINGS https://www.codepublishing.com/CA/SantaCruz/#!/SantaCruz06/SantaCruz06100.html#6.100 9/9

6.100.100 ADDITIONAL REMEDIES.

In addition to criminal prosecution pursuant to Section 6.100.090 any person, firm, or corporation violating any provisions of this chapter shall be subject to the remedies provided in Title 4 or alternatively delineated in the Santa Cruz County superior court uniform bail and penalty schedule for the city of Santa Cruz.
(Ord. 2020-06 § 1 (part), 2020).

The Santa Cruz Municipal Code is current through Ordinance 2023-05, passed March 28, 2023.

Disclaimer: The city clerk’s office has the official version of the Santa Cruz Municipal Code. Users should contact the city clerk’s office for ordinances passed subsequent to the ordinance cited above.

City Website: https://www.cityofsantacruz.com/
City Telephone: (831) 420-5030
Code Publishing Company

14.13 CITY COUNCIL

AGENDA REPORT
DATE: March 8, 2020
AGENDA OF: March 24, 2020
DEPARTMENT: City Manager’s Office and Planning and Community Development Department
SUBJECT: Building Electrification through Prohibitions on Use of Natural Gas in Newly Constructed Buildings (CM/PL)

RECOMMENDATION: Introduce for publication an ordinance adding a new Chapter 6.100 to the Santa Cruz Municipal Code Prohibiting Natural Gas Infrastructure in New Buildings.

BACKGROUND: The State of California has set ambitious renewable energy targets for new construction -- it aims to achieve zero-net-energy (ZNE) for all new residential buildings by 2020 and for all nonresidential buildings (including >3 stories residential) by 2030. One of the State’s policy mechanisms is to include energy efficiency and renewable energy requirements in the energy code, which is part of the State building code and must be adopted and enforced by local agencies.

While the requirements of the 2019 version of the code (effective on January 1, 2020) move in the direction of ZNE performance, opportunities exist to achieve greater energy savings and accelerate decarbonization which include: prohibiting natural gas and improving building energy efficiency and renewable generation standards.

The term “Building Electrification” refers to the construction of new buildings or retrofit of existing buildings to utilize electric powered building systems and/or appliances and transition away from the use of natural gas powered building systems and/or appliances. Because electricity procured by Monterey Bay Community Power (MBCP) for over 97% of the region and city’s customers is considered carbon free (i.e., renewable energy and hydropower), the conversion away from natural gas powered built environment features to electric has the potential to drastically reduce greenhouse gas (GHG) emissions. In its recent Electrification Strategic Plan, MBCP indicates that considering all vehicle and built environment emissions, 18% of those emissions are a result of residential and commercial space conditioning, water heating and food preparation. It is the emissions related to a building’s systems that require natural gas combustion as well as leakage occurring during natural gas procurement, transportation, storage, and distribution that this ordinance is addressing.

In addition, advances in electric heat pumps and other electrical equipment are yielding much higher overall efficiencies than their natural gas counterparts. Electric heat pumps, unlike traditional electric resistance heaters, do not generate heat, but concentrate and transfer it for end

14.14 uses such as space conditioning and water heating. This process uses less primary energy and emits much less carbon, particularly when it is powered by renewable energy.

Many forms of renewable energy cannot be readily dispatched; that is, they cannot be ramped up to match demand on a real-time basis. However, energy storage and load shifting technologies, combined with dynamic electricity pricing structures are helping overcome these limitations.

Batteries, smart buildings and financial incentives enable alignment of the consumer demand and supply from intermittent renewable sources such as solar and wind.

Other co-benefits include potential developer and building occupant cost savings, improvement of indoor air quality due to elimination of chemicals produced through indoor fuel combustion, and a decrease in public safety risks associated with leaking legacy natural gas infrastructure between the point of extraction and entry to homes that has been the source of catastrophic explosions throughout California and the US.

In 2018, former Governor Jerry Brown issued executive order B-55-18, pledging that the California economy will be carbon neutral by 2045. Assembly Bill 3232 also requires the California Energy Commission (CEC) to create a plan by 2021 to reduce building sector emissions by 40 percent below 1990 levels by 2030. These political developments, along with the ever-increasingly present climate emergency, foreshadow the likelihood of future state and federal emissions regulations that will impact the gas sector. It is certainly possible that California’s carbon-intensive natural gas system will have to be decommissioned, all new buildings will have to be emissions-free, and existing buildings will need retrofitting.

The City’s current Climate Action Plan (2012) sunsets in 2020, and while it did not specifically call out building electrification as a strategy (the Plan predates the building electrification concept and trend), it did recognize that the launch of a community choice energy program, i.e., MBCP, would result in significant GHG emissions reduction related to electricity consumption.

According to the 2015 GHG emissions inventory for the community, approximately 224,000 metric tons of carbon dioxide equivalent (MT CO2e) were emitted to the atmosphere over the course of that year. The Plan’s community-wide GHG emissions reduction targets specifies a 30% reduction by 2020 and an 80% reduction by 2050 (as compared to 1990 levels). Through the launch of MBCP in 2018, the City was able to achieve its 2020 target a year early.

Progress in the City towards lowering emissions in new buildings has been encouraging but is still incremental and gains can be largely attributed to the City’s Green Building Program. To date, the federal, state and local approach to energy use in new buildings has largely been to mandate greater building efficiency and energy conservation, which indirectly results in lower emissions, but does not directly phase out fossil fuel consumption in new buildings. Santa Cruz will be embarking upon a Climate and Energy Action Plan 2030 process in July, 2020 that will focus on transformational emission reduction strategies to complement those implemented to date.

City Council adopted a Climate Emergency Resolution in 2018 and a Green New Deal Resolution in 2019 aiming to accelerate action on aggressive carbon drawdown in the City of Santa Cruz. In support of these resolutions, in the fall of 2019, City Council directed staff to explore options for Building Electrification policies and bring back options for City Council to consider. A second part of the direction was to align the timeline of adoption of Building Electrification Reach Codes with MBCP’s rollout of city and developer support incentives to ease regional transition to an electrified built environment. It is expected those incentives will

14.15 be available in the second quarter of calendar year 2020.

City staff brought two options to City Council for consideration at a City Council Building Electrification Study Session on February 18, 2020. City Council directed staff to proceed with Option A: A Natural Gas Prohibition (with limited exemptions). Staff invited members of the Planning Commission and other stakeholders to attend the study session. Staff also brought the Building Electrification item to the Planning Commission at its March 5, 2020 meeting for a courtesy referral. The Planning Commission was generally supportive of the proposed ordinance and provided valuable feedback on a draft of the ordinance. In accordance with City Council’s direction and incorporating Planning Commission’s feedback, staff prepared a new Chapter 6.100 of the Santa Cruz Municipal Code prohibiting natural gas infrastructure in new buildings effective July 1, 2020. Attachment 1 to this report is the clean version of the proposed ordinance, while Attachment 2 shows the changes that have been made by staff following the publication of the working draft ordinance that was considered by the Planning Commission.

DISCUSSION: Every three years, cities and counties across the state can adopt local reach codes in line with the new Building Standards Code (Standards) or Title 24 of the California Code of Regulations. Cities and counties may adopt building codes more advanced than those required by the state, which are known as reach codes. This ordinance differs from the “reach code” approach in that it leverages the City’s authority under the California Constitution to prohibit installation of hazardous internal gas piping infrastructure when granting permits for new buildings and, as a result, avoids regulations requiring a cost effectiveness study and California Energy Commission (CEC) approval to amend energy efficiency standards (i.e., via “reach codes”). It also does so without impinging on the California Public Utility Commission’s (CPUC’s) jurisdiction, whose gas regulatory authority ends at the building’s gas meter, or point of delivery from within any given property.1

The effect of this legislation will be that builders will be prohibited from applying for permits for land uses that include gas infrastructure—gas piping to heat water, space, food, etc. with limited exemptions. Exemptions to the ordinance include the allowable use of natural gas only for food preparation (but not space conditioning or water heating) in restaurants and for space conditioning and water heating (but not food preparation) in accessory dwelling units (ADUs) < 750 square feet in area, for industrial process heat applications, and where the project without natural gas is not in the public interest or is not feasible.

The basic scope of the ordinance is similar to the approach other local governments have adopted, e.g., the Cities of Berkeley, Alameda, Carlsbad, Morgan Hill, San Francisco and San Jose. The following outreach has been conducted in support of the building electrification policy exploration and adoption efforts:
• Developer’s Roundtable 1 (September 25, 2019)
• Community Workshop 1: Building Electrification 101 (February 4, 2020) 1 Although the legislature empowered the Commission to “require each gas corporation to provide bundled basic gas service to all core customers in its service territory,” it did not require customers to install fuel gas piping in or in connection with a building, structure or within the property lines of premises behind the gas meter. See California Code, Public Utilities Code - PUC § 963,
https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=PUC&division=1.&title=&pa rt=1.&chapter=4.5.&article=2.

14.16 • City Council Study Session (February 18, 2020)
• Developer’s Roundtable 2 (February 26, 2020)
• Community Workshop 2: Policies (February 27, 2020)
• Electrification Coffee Talks with Trades, Vendors, Designer and Builders (Tuesdays between Feb. 11 – March 10 from 8:30 – 9:30 am) • Upcoming: Electrification Expo at Earth Day (April 18, 2020) • Upcoming: Local Celebrity Chef Induction Cooktop Cookoff (August, 2020) Ordinance Language
Full text of the draft ordinance is available in attached document titled Chapter 6.100 Prohibition of Natural Gas Infrastructure in Newly Constructed Buildings (Chapter). The requirements apply to Design Permit and Planning Development Permit applications submitted on or after the effective date of the Chapter for all Newly Constructed Buildings, as defined in the ordinance, proposed to be located in whole or in part within the City. The requirements of the Chapter apply to all Building Permit applications for Newly Constructed Buildings not requiring any of the planning applications cited above.

There are three categories of exemptions to Chapter proposed:
(1) Prohibited Natural Gas Infrastructure in Newly Constructed Buildings - Natural Gas Infrastructure may be permitted in a Newly Constructed Building if the Applicant establishes that it is not physically feasible to construct the building without Natural Gas Infrastructure. (2) Public Interest Exemption - Minimally necessary and specifically tailored natural gas infrastructure may be allowed in a Newly Constructed Building provided that the use serves the public interest. However, Newly Constructed Buildings under this exemption will be required at the minimum to have sufficient electric capacity, wiring and conduit to facilitate future full building electrification.
(3) Revocable Building and Infrastructure Exemptions - Minimally necessary and specifically tailored Natural Gas Infrastructure may be allowed in the following Newly Constructed Buildings on a revocable basis:
(a) Restaurant - The scope of the exemption extends to the preparation of food only, not HVAC, or water heating appliances.
(b) Facility Employing Industrial Process Heat - The scope of the exemption extends to process equipment only, not HVAC or water heating appliances. (c) Facility Infeasible Due to Site Conditions - The scope of the exemption extends to HVAC and water heating appliances. Under the condition of this exemption manufactured liquid petroleum is allowed in compliance with all applicable state and local building and fire codes.
(d) New Construction Accessory Dwelling Unit ≤ 750 Square Feet - The scope of the exemption extends to HVAC and water heating appliances. The scope of the exemption does not extend to indoor cooking appliances. Several considerations were made in developing the ADU exemption @ ≤ 750 square feet. They include:

14.17 • ADUs are challenged to comply with basic requirements of 2019 Energy Code. A 700- square-foot (SF) ADU which one of our local energy analysts modeled under 2019 Energy Code was unable to comply with basic requirements without incorporating either Quality Insulation Installation or a Heat Recover Ventilator. • The 2019 CECS Low Rise Residential Cost Effectiveness Study demonstrated that a suite of envelope and appliance incremental costs saved more money on utility bills than their installation and maintenance costs over a 30 year period for the 2100 SF/2700 SF CEC prototype structures. Those incremental costs would not scale lower for the smaller conditioned floor area of a typical ADU, e.g. of 400 SF. This would increase the payback period required to demonstrate ADU cost effectiveness. • In the case of an ADU, it is the only type of Newly Constructed Buildings where another structure already exists on the parcel which is highly likely to have Natural Gas service, thus the avoided costs for a new gas lateral and meter (~$16K) is likely reduced to the amount required only for extension of existing Natural Gas service (~$6-8K).
• ADUs incur impact fees including school fees beginning at ≤ 750 SF, so the ADU exemption correlates with that.

The decision on whether a building is exempt from the provisions of this Chapter based on the use of the building is made by the Zoning Administrator and the decision is appealable to the Planning Commission. The decision on whether a building is exempt from the provisions of this Chapter based on feasibility is made by the Building Official and the decision is appealable to the Building Board of Appeals.

Environmental Impacts
Gas-related emissions have increased because of population and job growth as well as the multidecade useful life of natural gas appliances. Based on estimates from the Planning and Community Development Department, approximately 600 dwelling units could be built between 2020 and 2024. Without the proposed ordinance prohibiting natural gas in new construction, these 600 units, along with any other future units utilizing natural gas, will be “locked into” decades of additional carbon pollution and stands to continue doing so with each new building permit approval.

With the adoption of the proposed ordinance prohibiting natural gas in new construction, GHG emissions related to energy consumption in these new buildings will be zero. Table 1 compares GHG emissions projected for these 600 dwelling units under the current 2019 California Energy Code and under a new natural gas prohibition. There is an annual reduction of over 300 metric tons of carbon dioxide equivalent (MT CO2e). With annual turnover of building stock at about 1%, the emissions avoided will compound annually over time.

Table 1: Projected GHG emissions from 2024 onward of 600 dwelling units built between 2020 and 2024 (MTCO2e)

14.18 This ordinance recognizes that all-electric heating technologies are cost-competitive substitutes to their natural gas counterparts especially when installed during new construction. If adopted, the natural gas prohibition new construction will usher in all-electric new buildings, avoiding significant new GHG emissions and allowing the City to focus its climate action efforts and resources on other critical sources of emissions such as existing buildings and transportation.

Economic Impacts
All-electric buildings are generally cheaper to build due to the elimination of running expensive gas plumbing to the building. These lower first costs generally make all-electric construction more cost-effective on a life-cycle basis. This is particularly true for low-rise residential buildings, where it is also often increasingly more cost-effective for the owner to exceed the code by improving efficiency and adding solar. In fact, if one invests the savings from the gas infrastructure in additional PV capacity to offset more of the electricity load, in many cases the building is cost-effective for the owner and society from day one, meaning the building is both less expensive to build and cheaper to operate.

Building electrification is a key part of MBCP’s Electrification Strategy. MBCP will soon be offering all-electric building grants to incentivize developers to build new, all-electric multiunit dwellings and electrification rebates to upgrade homes with electric water heating, home electric vehicle chargers and electrical panel upgrades. While the amounts and bases for these incentives are unknown, MBCP indicates these incentives will be available in the second quarter of calendar year 2020.

As new, all-electric buildings come online as a result of this ordinance and broader trends in the economy, new jobs specializing in green building will continue emerge. In 2017, nationwide jobs in the clean energy sector eclipsed the fossil fuel industry, despite record fossil fuel exploration and recovery.2
While certain trades such as electricians will see an expansion in demand for services as a result of prohibiting natural gas infrastructure in new buildings, other trades may see a decrease in work as gas infrastructure is phased out.

Legal Case for Natural Gas Prohibition
Under the California Constitution, cities retain police powers to adopt building standards 2 Lara Ettenson, “U.S. Clean Energy Jobs Surpass Fossil Fuel Employment,” NRDC, February 01, 2017, https://www.nrdc.org/experts/lara-ettenson/us-clean-energy-jobs-surpass-fossil-fuel-employment.

14.19 that provide for their community’s health, safety and welfare.3 This ordinance makes a series of climatic, geologic and health and safety findings. The City Attorney’s office has reviewed the ordinance for legality. In addition, the City Attorney’s office has reviewed the City’s franchise agreements with the Pacific Gas & Electric Company.

ENVIRONMENTAL DETERMINATION: In accordance with California Environmental Quality Act (CEQA) Guidelines section 15061(b)(3), the Council’s ultimate action on this item is covered by the common sense exemption that CEQA applies only to projects that have the potential to create a significant effect on the environment. As detailed in this report, the ordinance would require installation of less infrastructure and would reduce GHG emissions.

Thus, it would not have a significant effect on the environment. The Council’s ultimate action is also exempt from CEQA under the categorical exemption in Section 15308 of the CEQA Guidelines in that the proposed ordinance would institute regulatory requirements intended to protect the environment.

FISCAL IMPACT: The ordinance would not directly affect the fiscal conditions of the City; however, it would have some implications for staff review time. It is anticipated there will be a modest decrease in Planning and Community Development Department staff time related to plan check review, inspection and permitting. It is anticipated that the Current Planning division will experience a slight increase in staff time on some applications due to the need to discuss the requirements and review the location and screening of electric transformers, some of which may be larger than they otherwise would without the natural gas ban. It is anticipated that there will be a moderate decrease in staff time related to building field inspections as the gas piping field inspection will be eliminated. It is anticipated that there will be no net new staff time related to building plan check as the time eliminated from plan check of gas piping sizing is offset by an increase in electric service and distribution plan check.

The City will also likely be eligible for an incentive for adopting the natural gas prohibition ordinance from MBCP. While the amount and basis for this incentive is unknown, MBCP indicates it will be available in the second quarter of calendar year 2020.

Prepared by:

Tiffany Wise-West
Sustainability and
Climate Action
Manager
and
Kurt Hurley
Green Building
Specialist
Submitted by:

Lee Butler
Director of Planning &
Community Development
Approved by:

Martin Bernal
City Manager

3 Article XI, Sec. 7. of the CA Constitution reads: “A county or city may make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws.”

14.20 ATTACHMENTS:

Ordinance (clean version)
Ordinance (redline version)
Public Correspondence

14.21 City Council

AGENDA REPORT
DATE: 05/29/2023
AGENDA OF: 06/13/2023
DEPARTMENT: Parks and Recreation
SUBJECT: Award Contract for Case 570N EP 4WD Tractor Loader Scraper – Budget Adjustment (PR)
RECOMMENDATION: Motion to:
1) Award a contract for the purchase of one new Case 570N EP 4WD Tractor Loader Scraper from Sonsray Machinery (Salinas, CA) in the amount of $114,437.70, not to exceed $150,000 in the event of inflationary increases; and
2) Adopt a resolution amending the FY 2023 budget in the amount of $114,437.70 to facilitate the purchase of a new Case 570N EP 4WD Tractor Loader Scraper from Sonsray Machinery (Salinas, CA).

BACKGROUND: The Parks and Recreation Department currently relies on a 1997 New Holland Ford 545D tractor for moving materials, grading sites, flail mowing, and performing other heavy work. This machine has had frequent mechanical issues costing thousands of dollars a year to repair. It also has a Tier 1 engine, under federal emission regulation standards. In order to comply with the California Air Resources Board’s Regulation for In-Use Off-Road DieselFueled Fleets, the City is phasing out Tier 1 engines by the end of 2023.

DISCUSSION: Replacing this tractor will allow the Parks and Recreation Department to continue to perform essential duties without relying on rented equipment or contractors.

The Case 570N EP tractor has a Tier 4 engine, meaning it complies with the latest Environmental Protection Agency regulations and uses advanced emission control technologies.

Section 3.08.170 of the Municipal Ordinance allows the City to use cooperative purchasing agreements. The City is one of over 50,000 member agencies of Sourcewell. Sourcewell conducts national competitive solicitations for common products and is able to obtain greater discounts than the City could obtain on its own. The quote for the Case 570N EP applies a Sourcewell discount of $33,293.68 to the purchase price.

FISCAL IMPACT: The Parks and Recreation Department has a remaining $37,802 in its FY 2023 capital budget, and will reallocate unused funds from from its FY 2023 temporary personnel budget to provide the remaining funds.

15.1 Prepared By:

Travis Beck
Superintendent of Parks
Submitted By:

Tony Elliot
Parks & Recreation Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. EQUIPMENT QUOTE.PDF

2. BUDGET ADJUSTMENT.PDF

15.2 NOTICE TO

PURCHASER

1. Caution. Do not sign this contract before you thoroughly read both pages 1 and 2 of it or if it contains blank spaces, even if otherwise advised.

2. You are entitled to an exact and completely filled in copy of this Sales Order when you sign it. Keep it to protect your legal rights.

3. Store Manager signature required for final acceptance of Sales Order.

THIS AGREEMENT IS SUBJECT TO THE ADDITIONAL TERMS AND CONDITIONS ON THE REVERSE SIDE. CUSTOMER HAS HAD THE OPPORTUNITY TO READ THE TERMS OF THIS AGREEMENT PRIOR TO SIGNING.

Purchaser’s Signature ____________________________ Sales Consultant ____________________________ Date _________ Print Name ____________________________________ Date _________ Accepted By _______________ Date _________

Page 1 of 3 ends

1081 Harkins Road ∙ Salinas ∙ CA ∙ 93901 TEL: 831-240-0378 www.SonsrayMachinery.com
Ship To: Salinas Store
1081 Harkins Road
Salinas CA 93901
Invoice To: CITY OF SANTA CRUZ
1125 RIVER STREET
SANTA CRUZ CA 950601710
Attention: STEVE GOMEZ
Salinas
April 28, 2023 mgonzales-0065
BP0017842 8314205509
Purchase Order:

Sales Person: Marcus Gonzales

EQUIPMENT QUOTE/SALES ORDER
CASE 570N EP 4WD T4 FINAL Serial #: NPC777390 Stock #: EQ0056949 $85,612.32 ***SOURCEWELL DISCOUNT 570NEP LIST PRICE $118,906--- 28% DISCOUNT = $85,612.32*** NEW CASE MODEL 570N EP 4WD TRACTOR LOADER SCRAPER

REAR EQUIPMENT, THREE POINT HITCH
TIRES FRONT WHEELS 12X16.5, 10PR LUG TREAD
REAR WHEELS 19.5LX24, 10PR STD
LOADER LDR PERFORMANCE PKG RC & CS & 3SPL PKG

ROLLOVER PROTECTIVE STRUCTURES CANOPY, ROPS

OPERATOR'S SEAT - MECH SUSP, VINYL, W/ ARMRESTS

COLD START/BATTERIES- COLD START DUAL BATTERY

LIGHTS- STANDARD LIGHTS

TRANSPORT PROTECTION STANDARD
3-POINT HITCH EQUIPMENT DUAL TILT W/HOLDING VALVE

PLUG IN WEIGHT -ADDITIONAL REAR COUNTERWEIGHT
4WD DRIVE SHAFT GUARD

ENGINE BLOCK HEATER
FRONT VALVE FOR LOADER-AUX. HYDRAULICS & CONTROLS

RIDE CONTROL

STEERING OPTION- COMFORT STEER
*** MACHINE QUOTED IS SUBJECT TO AVAILABILITY ***
**** INTEREST RATE QUOTED IS BASED ON CURRENT RATES. INTEREST RATE IS SUBJECT TO CHANGE, BASED ON THE FINANCIAL INSTITUTION ****
***Quote Expires 04/30/2023 ***Financing Available on Approved Credit (OAC) ***Unit Based on Availability *** QUOTED PRICE IS NOT GUARANTEED, AND SUBJECT TO MANUFACTURER'S PRICE INCREASES, INCLUDING ANY ADDITIONAL SURCHARGES ***
SONSRAY SIGNATURE SERVICE – A commitment to providing excellent service and care when you purchase a new piece of equipment from Sonsray Machinery.

BOX SCRAPER $8,050.75
4-IN-1 BUCKET $6,175.26
FACTORY FREIGHT $3,200.00
DocuSign Envelope ID: 491153B0-0542-460B-9229-DA836D9F0EA6 5/19/2023

TRAVIS BECK

15.3

Page 2 of 3 ends

PPP-Premier 36/3000 ($0 Deductible) $1,765.33
Quoted Price $104,803.66
Sales Tax 9.25 % $9,235.04
Processing Fee $ 399.00
Cash Due or Finance Amount $114,437.70
DocuSign Envelope ID: 491153B0-0542-460B-9229-DA836D9F0EA6

15.4 City of Santa Cruz

BUDGET ADJUSTMENT REQUEST
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ACCOUNT 352-(&71$0(
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ACCOUNT 352-(&71$0(
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25EXPENDITURE ACCOUNT TITLE
NET: $

REQUESTED BY DEPARTMENT HEAD

APPROVAL

BUDGET/ACCOUNTING
5(9,(:('

FINANCE DIRECTOR

APPROVAL

CITYMANAGER

APPROVAL
5HVR

352-(&7
352-(&7
$02817
$02817
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TOTAL EXPENDITURE

TOTALREVENUE
'DWH

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Clear Form
2023
05/29/2023
Moving department funds to facilitate the purchase of a new Case 570N EP 4WD Tractor Loader Scraper from Sonsray Machinery (Salinas, CA) in the amount of $114,437.70.
0 101-30-41-3120-51122 Temporary -76,636
101-30-40-3101-57490 Other machinery and equipment -37,802 101-30-41-3107-57490 Other machinery and equipment 114,438 0 0
Lindsay
Bass
Digitally signed by Lindsay Bass
DN: cn=Lindsay Bass, o=City of Santa Cruz,
ou=Parks & Recreation Administration,
[email protected], c=US
Date: 2023.05.29 14:42:55 -07'00'
Anthony Elliot
Digitally signed
by Anthony Elliot
Date: 2023.05.30
17:35:10 -07'00'
Tracy
Cole
Digitally signed by Tracy Cole
DN: cn=Tracy Cole, o=City of
Santa Cruz, ou=Finance,
[email protected],
c=US
Date: 2023.06.01 13:35:03
-07'00'
Elizabet
h Cabell
Digitally signed by Elizabeth Cabell
DN: cn=Elizabeth Cabell, o=City of Santa Cruz,
ou=Finance Department,
[email protected], c=US
Date: 2023.06.01 12:03:41 -07'00'

15.5 City Council

AGENDA REPORT
DATE: 06/01/2023
AGENDA OF: 06/13/2023
DEPARTMENT: Public Works
SUBJECT: FY 2024 Funding for Senate Bill 1 Road Maintenance and Rehabilitation Account (RMRA) (PW)
RECOMMENDATION: Resolution approving the FY 2024 allocation of SB 1 Road Maintenance and Rehabilitation Account funds and authorizing the City Manager to submit the project list to the California Transportation Commission.

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

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

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

DISCUSSION: Based on the CTC approved guidelines, cities and counties are required to adopt a resolution and submit a list of projects annually to the CTC by July 15 to the RMRA program and it must reflect how the agency intends to use the SB1 funds. The RMRA is estimated to provide an additional $1,600,166 in gas tax funds to the City of Santa Cruz (City) next fiscal year. Public Works has developed a project list based on the need to fund gas tax eligible projects developed during the FY 2024 Capital Investment Program (CIP) process.

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

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

16.1 submissions for the Active Transportation Program, State Local Partnership Program and Caltrans planning grants in the past.

FISCAL IMPACT: SB 1 has a positive impact to the City’s transportation and maintenance budget by providing an estimated $1,600,166 in new gas tax revenue to the FY 2022 CIP.

Additionally, other SB 1 programs will fund important transportation projects in the City and region.

Prepared By:

Joshua Spangrud
Senior Professional Engineer
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOC

2. CSC SB1 PROJECT LIST – FY 2024.DOCX

16.2 RESOLUTION NO. NSRESOLUTION OF THE CITY OF SANTA CRUZ ADOPTING THE FY 2024 LIST OF PROJECTS FUNDED BY
SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 in order to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of the City of Santa Cruz are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City of Santa Cruz must adopt a list of all projects proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1 by resolution, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, the City of Santa Cruz will receive an estimated $1,600,166 in RMRA funding in Fiscal Year 2024 from SB 1; and
WHEREAS, the City of Santa Cruz has undergone a thorough public process to ensure public input into our community’s transportation and infrastructure priorities through consideration of the City’s Capital Improvement program at public meetings before the Transportation and Public Works Commission and, the City Council, and through social media; and
WHEREAS, the City of Santa Cruz uses a variety of tools to develop the Capital Investment Program, such as a Pavement Management System, operational resources and public input to develop the SB 1 projects to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the communities priorities for transportation investment; and
WHEREAS, the FY 2024 funding from SB 1 will help the City of Santa Cruz maintain, rehabilitate and restore the city’s infrastructure including street storm drains and catch basins citywide to prevent flooding, storm damage repair projects, rehabilitate arterial streets that include pedestrian and bicycle systems improvements that improve

16.3 RESOLUTION NO. NSFile # 770–40.105
SB1 Road Repair and Accountability Act FY24 Resolution.doc access and safety in Santa Cruz in FY2024; and that SB 1will fund many similar and larger projects into the future; and
WHEREAS, the 2018 California Statewide Local Streets and Roads Needs Assessment found that the City of Santa Cruz’s streets and roads are in a “Good” condition with a current average PCI of 62 and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into a “Very Good” condition, PCI goal of over 70 as well as repair other deficiencies and improve our multi-modal transportation system; and WHEREAS, without revenue from SB 1, the City of Santa Cruz, would otherwise fall further behind in maintaining our street infrastructure, not be able to reduce flooding impacts, and limit our ability to improve access and safety for our community; and
WHEREAS, if the Legislature and Governor failed to act, city streets and county roads would have continued to deteriorate, having many and varied negative impacts on our community; and
WHEREAS, cities and counties own and operate more than 81 percent of streets and roads in California, and from the moment we open our front door to drive to work, bike to school, or walk to the bus station, people are dependent upon a safe, reliable local transportation network; and
WHEREAS, modernizing the local street and road system provides well-paying construction jobs and boosts local economies; and
WHEREAS, the local street and road system is also critical for farm to market needs, interconnectivity, multimodal needs, and commerce; and WHEREAS, police, fire, and emergency medical services all need safe reliable roads to react quickly to emergency calls and a few minutes of delay can be a matter of life and death; and
WHEREAS, maintaining and preserving the local street and road system in good condition will reduce drive times and traffic congestion, improve bicycle safety, and make the pedestrian experience safer and more appealing, which leads to reduce vehicle emissions helping the City and State achieve its air quality and greenhouse gas emissions reductions goals; and

16.4 RESOLUTION NO. NSFile # 770–40.105
SB1 Road Repair and Accountability Act FY24 Resolution.doc WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on maintenance and safety, investing in complete streets infrastructure, and using appropriate technology, materials and practices, will have significant positive co-benefits in and for our community.

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

1. The foregoing recitals are true and correct.

2. The City of Santa Cruz is adopting the SB 1Road Maintenance and Rehabilitation Account (RMRA) Project List for FY 2024.

Passed and adopted this 13th day of June, 2023, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: _____________________________
Mayor
ATTEST: ____________________________
City Clerk Administrator

16.5 City of Santa Cruz
(To City Council for approval June 13, 2023)
Road Maintenance and Rehabilitation Account (RMRA) Project List (SB1) – FY 2024 Total Project Costs: $2,500,000
Total RMRA Funds: $1,600,166
Project Type Project Name Total Project
Est. Cost
SB 1
Portion
Estimated
Project Start
Date
Estimated Project
Completion Date
Community Benefit
Summary
Pavement,
Sidewalk and
Access Ramps
Arterial,
Collector and
Street
Reconstruction
$2,500,000 $1,600,166 07/01/23 06/30/24 Improve multimodal road conditions for
all users including
accessibility.

Specific Project Locations:

Riverside Avenue from Third Street to Beach Street
San Lorenzo Boulevard from Broadway to Jesse Street
Bay Street from Railroad Tracks to Mission Street
Ocean Street from Water Street to Plymouth Street (essentially Rte 1)

16.6 City Council

AGENDA REPORT
DATE: 05/31/2023
AGENDA OF: 06/13/2023
DEPARTMENT: Public Works
SUBJECT: Measure D Expenditure Plan: FY 2024-2028 (PW)
RECOMMENDATION: Motion to approve the proposed Measure D Five-Year Expenditure Plan for FY 2024-2028.

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

The Expenditure Plan categories include formula funding allocations to local jurisdictions under the “Neighborhood Category.” The City of Santa Cruz (City) is projected to receive $1,717,000 in FY 2024 and $ 9,083,000 over the FY 2024-2028 five-year period. The City has requested and been approved for Measure D funds allocated to the RTC for funding the Coastal Rail Trail within the City’s Segments 7, 8 and 9, some rail trail maintenance funds, and the Street Smarts Traffic Safety Program.

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

DISCUSSION: In order to move forward with receiving funds, local agencies are required to hold a public hearing to annually develop a five-year program of projects. The public hearing was held on April 17, 2023 before the Transportation and Public Works Commission (TPWC).

By motion, the TPWC recommended that the Council approve the proposed Measure D FiveYear Expenditure Plan for FY 2024-2028, and recommended that Council consider moving the Broadway Complete Streets Projects FY 2028 funding to FY 2026 and move either Market Street Bike Lanes and Sidewalk or Ocean-Plymouth Multi-Modal Project out years as needed.

Based on the Commission’s comments, Staff is proposing to move Broadway Complete Streets to FY 2025 and Market Street out to FY 2028, with the understanding that the Measure D fiveyear program is reviewed and reprioritized yearly.

17.1 The five-year program must meet the RTC guidelines, be consistent with the master funding agreement and must demonstrate that these funds will be used to enhance, not replace current transportation investments. A “Maintenance of Effort” report is developed annually to address this last requirement and may include performance measures. Additional details on the requirements and polices can be found on the RTC webpage (www.sccrtc.org). Staff is proposing a few changes to the budget based on the newest revenue projections.

Attached is the City’s Measure D Proposed 5-Year Project Funding List for FY 2024-2028 which also includes the approved allocations in the previous fiscal years and committed RTC and County of Santa Cruz Measure D for Coastal Rail Trail Segment 7, 8, and 9. It includes the grant amounts that Measure D is used to match that are approved and proposed. Changes to this year’s project list include adding one new project, Broadway Complete Streets in FY 2028, and deletion of Swanton Blvd. Multi-Use Path. The scope of the new project is not defined at this time but proposed funding may be used as local match for a future grant and will include traffic measures to enhance the bicycle and pedestrian experience. Measure D funding for Swanton was used as a local grant match the past several years. This year the City was successful and awarded an Active Transportation Program Cycle 6 grant to fully fund the project without the need for a local match.

The proposed City funded projects are approximately split 50-50 between local street paving and ATP projects over the five-year allocation period, though funding has been transferred from the paving to Active Transportation projects when costs have exceeded the adopted budget. The street reconstruction and paving projects also include new access ramps, sidewalk repairs, and enhanced bike lane and crosswalk striping that comprise anywhere from 5-20% of the paving project cost. This augments the City Measure D share for active transportation.

Projects and programs implemented in the past year or so with Measure D funds include MB Sanctuary Scenic Rail Trail Segment 7 Phase 2, Street Smarts, SR2S Youth Safety and street rehabilitation on Chestnut Ave with bike enhancements and other streets. Other grant funding was used on many of these projects.

Measure D approval recognized the need for a new funding source to better fund street reconstruction, overlay and other paving methods, and critical infrastructure maintenance that benefits all mobility uses. Even with Measure H (another sales tax) approved many years ago by City residents, occasional state grants and gas tax, the current funding only covered about half of the City’s paving needs. Measure D and the passage of SB 1, the Road Repair and Accountability Act of 2017, is funding a more robust City paving program that now meets about 70% of our needs, as well as other street related improvements, such as storm drain reconstruction, in the coming years.

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

FISCAL IMPACT: The COVID-19 pandemic did impact Measure D revenues though current allocations and projections reflect a smaller impact than previously anticipated. Measure D continues to have a very positive impact on the City’s transportation budget by providing critical transportation revenue to the City’s CIP and will be used advantageously to match additional

17.2 transportation grants. In addition, funding from the SCCRTC Measure D allocation for the Rail Trail projects will assist with implementing the projects in the City.

Prepared By:

Chris Schneiter
Senior Professional and
Technical Assistant
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

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

17.3 Project No. FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 Project Funding
Summary - All
Years (FY24-28)
Supporting
Grants & Local
Funding
c402301 $ 100,000 $ 150,000 $ 250,000 $ 600,000
NEW $ 150,000 $ 150,000
c401812 $ 50,000 $ 100,000 $ 50,000 $ 50,000 $250,000
c401806 $ 200,000 $ 200,000 $ 800,000
1,100,000 $ 1,000,000 $ 1,150,000
$ 1,000,000 $ 2,410,800
$ -
$ 200,000 $ 200,000 $ 400,000
$ 2,370,000 $ 2,370,000
$ 1,500,000 $ 1,500,000
$ 1,500,000 $ 1,500,000
m402001 $ - $ 20,000 $ 20,000 $ 34,000 $ 35,000 $ 49,000 $ 51,000 $ 53,000 $ 222,000 $ 300,000 c402210 $ 200,000 $ 300,000 $ 500,000 $ 1,500,000
g401901 $ 33,000 $ 88,000 $ 83,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 175,000 Varies per year $ 10,000
$ 15,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 50,000 Complete $ 100,000
Complete $ 250,000 $500,000
Complete $ 65,000
Complete
$ 500,000
$ 500,000 $ 668,560
100% Grant Funded
c400809 $ 250,000 $ 156,000 $ 300,000 $ - $ - $ 650,000 $ 600,000 $ 700,000 $ 700,000 $ 700,000 $ 700,000 $ 3,400,000 Varies per year c400810 $ 250,000 $ 156,000 $ 300,000 $ 300,000 $ - $ 650,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 2,500,000 Varies per year $ 1,150,000 $ 1,113,560 $ 1,688,000 $ 448,000 $ 2,460,800 $ 1,595,000 $ 2,795,000 $ 1,545,000 $ 1,445,000 $ 1,745,000 $ 1,645,000 $ 9,175,000 (FY24-28) $ 1,600,000 $ - $ 1,000,000 $ - $ 1,170,000 $ 30,000 $ 2,404,000 $ 35,000 $ 49,000 $ 51,000 $ 53,000 $ 2,592,000 (FY24-28) $ 1,500,000 $ 1,500,000 (FY24-28)
$ 1,462,000 $ 1,349,000 $ 1,292,000 $ 1,521,000 $1,640,000 $ 1,641,000 $ 1,717,000 $ 1,760,000 $ 1,813,000 $ 1,868,000 $ 1,925,000 $ 9,083,000 (FY24-28) $ 686,526 $ 1,175,175 $ 476,998 $ 633,574
Revised 05.28.2023
City of Santa Cruz Measure D - Proposed 5 Year Project Funding List FY24-28 (plus previous 6 program years) Project Title
Bicycle and Pedestrian Projects
MB Sanctuary Scenic Trail (Rail Trail) - Maintenance
c401413 $ 14,100,000
MB Sanctuary Scenic Trail (Rail Trail) Segment 8 & 9 c401804 $ 43,000,000 MB Sanctuary Scenic Trail (Rail Trail) Segment 7 - Phase 3 c402208 $ 2,400,000 Bay Dr. Protected Bike Lanes & Pedestrian Path
Ocean-Plymouth Multi-Modal Improvements
MB Sanctuary Scenic Trail (Rail Trail) Segment 7 - Phase 1 & 2 Total City Measure D Allocation Request
COVID Slow Streets Program
Street Smarts Traffic Safety Program
Street Reconstruction and Paving Projects
City Arterial & Collector St Reconstruction and Overlay * City Residential & Collector St Reconstruction and Overlay * Broadway Complete Streets
Swanton Blvd Multi-use Path
Pacific Ave Sidewalk between Front and Second
Market Street Bikelanes and Sidewalk
Active Transportation Program Projects
Downtown Bike Locker Replacement Program
p402001 $ 30,000
Complete
SR2S and Youth Bike Safety Programs
Chestnut St Storm Drain Replacement
SLR Parkway Phase III -Trestle Trail Widen **
Apportionment info from: https://sccrtc.org/wp-content/uploads/2022/04/Attachment-5-Five-year-estimates-to-direct-recipient.pdf.

Total RTC Measure D Allocation Request
Total County Measure D Allocation Estimate
City Measure D Apportionment Estimate
Spent per Annual Report
MB Sanctuary Scenic Trail (Rail Trail) Segment 7 funding was increased by $1.520 M from SCCRTC Measure D and increased by $1.810 M from City Measure D to fully fund Phase 2 due to increased costs from inflation. FY21 and FY 22 funding was reduced in the City Street Reconstruction projects by $1.47M, Swanton Blvd Multi-Use Path by $0.2 M and the completed Pacific Ave Sidewalk $0.148 M.

Items with asterisk include enhanced bike and pedestrian facilities in excess of status quo. This is true from FY 24 forward Rail Trail Mainteance is the amount upto which RTC will reimburse the City, but only up to haf the total maintenance cost.

P:\_Public\_Council Reports in Progress\June 13, 2023\Measure D_nn\City Measure D Proposed FY24-28 17.4 City Council

AGENDA REPORT
DATE: 06/01/2023
AGENDA OF: 06/13/2023
DEPARTMENT: Public Works
SUBJECT: Neary Lagoon Tule and Sediment Removal Project (m409668) – Approval of Plans and Specifications and Authorization to Advertise for Bids and Award Contract (PW)
RECOMMENDATION: Motion to approve the plans and specifications for the Neary Lagoon Tule and Sediment Removal Project (m409668), authorize an exemption from local employment requirements, and authorize staff to advertise for bids and award the contract. The City Manager is hereby authorized and directed to execute the contract as authorized by Resolution No. NS27,563. The Public Works Director is authorized to execute change orders within the approved project budget.

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

The purpose of the Neary Lagoon Tule and Sediment Removal Project is to conduct annual marsh vegetation removal (primarily tules) and sediment dredging in Neary Lagoon (see referenced Location Map). Dredging and vegetation management provides the following benefits:
1) Increase water circulation and flow rates
2) Improve water quality
3) Maintain an equal ratio of fresh water marsh to open water area as specified in the NLMP. 4) Enhance habitat for western pond turtles, water fowl and water birds.

DISCUSSION: Tule and sediment removal are accomplished using specialized equipment that are essentially barge-mounted backhoes, with a “clam bucket attachment,” which have a very limited draft to accommodate working in very shallow waters.

Section 3.10 of the Santa Cruz Municipal Code describes the Local Hiring requirements and includes provisions for 1) making good faith efforts to hire qualified individuals from the county of Santa Cruz and 2) making good faith efforts to employ apprentices. There is an exception clause for projects that involve the use of highly specialized equipment and skilled and experienced employees. Barge mounted backhoes are considered highly specialized equipment for a limited number of contractors to own and operate. Therefore, staff is recommending

18.1 exemption from local employment requirement as allowed for in Municipal Code section

3.10.080. The contract will maintain the requirements for apprentice hiring.

The environmental review process and (Mitigated) Negative Declaration was completed in accordance with the State CEQA guidelines and the local City of Santa Cruz CEQA guidelines and procedures.

Plans and specifications for the project can be found online at:
https://www.cityofsantacruz.com/government/city-departments/public-works/engineering/publicworks-projects FISCAL IMPACT: Funds are available in the Wastewater Capital Investment Program Fund FY 2023 budget in m409668 - Tule and Sediment Removal Project. The construction cost estimate to complete the project is $400,000. There is no impact to the General Fund.

Prepared By:

Eric Dhakni
Environmental Programs
Analyst II
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

18.2 1
Rosemary Balsley
From: Sandra Ivany <[email protected]>
Sent: Sunday, June 11, 2023 5:03 PM
To: Fred Keeley; City Council
Cc: Bonnie Bush; Eric Dhakni; [email protected]; Sandra Ivany Subject: Neary Lagoon Tule & Sediment Removal Project
Good Morning City Council, Major Keeley and Department of Public Works Staff, Thank you very much for your ongoing efforts to maintain the health of Neary Lagoon Wildlife Refuge.

The funds for maintenance of the lagoon are allocated in the Neary Lagoon Management Plan (1992) and do not come out of the City budget.

The community is aware the City Council will be approving the budget ( item 18 ) during Tuesday’s meeting.

And I just wanted to take a moment to express appreciation for the work you do to fulfill the Management Plan of 1992.

We understand this year the equipment will be starting at Laurel Creek and work the way down the lagoon.

Not only does ongoing maintenance increase water circulation and improve water quality of Neary Lagoon ‐ it also enhances wildlife habitat for water fowl, water birds, and western pond turtles.

This unique wildlife reserve in the heart of the city is also enjoyed and deeply appreciated by the community and many school groups and local birding groups that visit the lagoon every year.

We hope to see you on a stroll around the lagoon soon ! Best regards,
Sandra Ivany
Save Neary Lagoon Committee
downtown resident homeowner since 1988

18.3 1
Rosemary Balsley
From: Susan Monheit <[email protected]>
Sent: Sunday, June 11, 2023 9:01 PM
To: Fred Keeley; City Council
Cc: Bonnie Bush; Eric Dhakni; [email protected] Subject: Nearly Lagoon Maintenance Tule & Sediment Removal Honourable Mayor Keeley, and City Council Members:

On behalf of the Shelter Lagoon Homeowners Association, I would like to thank the City of Santa Cruz Parks Staff for their hard work to maintain the Neary Lagoon Wildlife Area in good condition, and City Council for adequately funding upkeep of this rare and precious urban wildlife area.

Homeowners in Shelter Lagoon work closely with City Parks Staff to keep homeless camps out of the lagoon area, remove garbage and debris left by homeless people in the wildlife area, maintain trees, remove hazardous trees and limbs, and remove graffiti from the floating docks. (I mean our homeowners are actively out in the Lagoon Area removing these items).

We look forward to the semi‐annual sediment and tule removal to maintain the health and function of this wildlife area for birds.

Thank you,
Susan Monheit
Shelter Lagoon Townhouse Owner
HOA Board Member

18.4 1
Rosemary Balsley
From: Lauren E Eisenberg <[email protected]>
Sent: Monday, June 12, 2023 1:49 PM
To: Fred Keeley; City Council; Bonnie Bush; Eric Dhakni; Kevin Crossley; Katie Stewart; Nathan Nguyen Subject: Neary’s Lagoon
Honourable Mayor Keeley, and City Council Members:

We look forward to the semi‐annual sediment and tule removal to maintain the health and function of this wildlife area for birds.

Thank you,
Lauren
Lauren Eisenberg, Realtor
Bailey Properties, Inc.
831.419.4018 Mobile
CalBRE#01402836
Sent from my iPhone

18.5 City Council

AGENDA REPORT
DATE: 05/31/2023
AGENDA OF: 06/13/2023
DEPARTMENT: Public Works
SUBJECT: Rising Prices for Tires and Repair Costs for City Vehicles and Equipment – Budget Adjustment (PW)
RECOMMENDATION: Resolution amending the FY 2023 budget to appropriate funds in the amount for $70,000 to fund increasing tire purchases and repair expenses.

BACKGROUND: The FY 2023 Fleet Maintenance budget had an original appropriation of $540,000 to cover the cost of required parts and repair services for the City of Santa Cruz’s (City) equipment and vehicles. The FY 2023 adopted budget for tires for all City assets was $210,000. Each year has seen slight increases in prices for both services and commodities due to the economy’s market inflation trend. Supply chain issues and shipping costs also lead to higher rates for tires. The Fleet Maintenance division has been growing a knowledgeable and resilient crew with expertise in all various types of assets that the City utilizes. Staff services nearly 600 assets and generate approximately 4,000 work orders annually.

DISCUSSION: Repairs: The costs for repair services are distributed to various funds and activities based on the percentage of use. A significant contributor to the higher costs for repair services is a result of being nearly fully staffed in the Fleet Maintenance division for the first time in three years. The COVID-19 pandemic, City hiring freezes, early retirements incentives, and challenging recruitments had led to a period with less staff servicing City assets. The Fleet Maintenance division has taken on more repair work in servicing the Citywide fleet, which also contributes to a higher volume of work being completed and higher expenditures than in previous years. With more staff in the division, a high number of work orders are being completed and providing less downtime for vehicles or equipment.

Tires: Fleet Maintenance staff have developed a system to limit tire purchases as much as possible and where it is most appropriate. To limit unnecessary charges, tire purchase requests are carefully evaluated and approved by staff. There must be a critical safety concern for tires to be approved for purchase. This new process for authorizing tire purchases has been successful and has limited the number of unnecessary tire replacement expenditures across all departments.

FISCAL IMPACT: The overall fiscal impact is $70,000. The General Fund impact is based on the repair services provided to individual departments. The Fleet Maintenance Fund is an internal services account where actual repair and tire expenditures are charged out to activities in various funds based on usage and need. The cost allocation will be distributed to various funds and

19.1 activities based on the percentage of use with an additional overhead charge of 22% for tires and 20% for repair work orders.

Prepared By:

Christina Alberti
Management Analyst
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. BUDGET ADJUSTMENT.PDF

19.2 City of Santa Cruz

BUDGET ADJUSTMENT REQUEST
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25EXPENDITURE ACCOUNT TITLE
NET: $

REQUESTED BY DEPARTMENT HEAD

APPROVAL

BUDGET/ACCOUNTING
5(9,(:('

FINANCE DIRECTOR

APPROVAL

CITYMANAGER

APPROVAL
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352-(&7
352-(&7
$02817
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TOTAL EXPENDITURE

TOTALREVENUE
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05/23/2023
Additional funds are needed to cover remaining FY23 costs for Citywide fleet purchase of tires and repair services. The Fleet Maintenance division has taken on additional services for departments, causing a higher expenditure for this fiscal year. The price of tires has also increased due to the economy's inflation trend and increase to prices for shipping and general supply chain issues. 0 811-40-61-7831-53104 Tires 30,000
811-40-61-7831-52242 Repair services 40,000
70,000
-70,000
Aime
Jellicoe
Digitally signed by Aime Jellicoe
DN: cn=Aime Jellicoe, o, ou,
email=aortiz[email protected], c=US
Date: 2023.05.24 11:41:52 -07'00'
Nathan
Nguyen
Digitally signed by
Nathan Nguyen
Date: 2023.05.27
08:37:02 -07'00'
Tracy
Cole
Digitally signed by Tracy Cole
DN: cn=Tracy Cole, o=City of
Santa Cruz, ou=Finance,
[email protected],
c=US
Date: 2023.06.01 11:01:28
-07'00'
Elizabet
h Cabell
Digitally signed by Elizabeth Cabell
DN: cn=Elizabeth Cabell, o=City of Santa Cruz,
ou=Finance Department,
[email protected], c=US
Date: 2023.06.01 12:06:27 -07'00'

19.3 City Council

AGENDA REPORT
DATE: 06/01/2023
AGENDA OF: 06/13/2023
DEPARTMENT: Public Works
SUBJECT: Proposed Resource Recovery Collection Rates Increase (PW) RECOMMENDATION: Motion to schedule a Public Hearing for August 8, 2023 on the proposed resource recovery collection rates increase, in accordance with State law, including a mailed notice to property owners.

BACKGROUND: The City’s resource recovery programs (refuse, recycling, and street sweeping) are operated as a self-supporting enterprise within the Refuse Enterprise Fund. All collection, street sweeping, disposal, recycling processing, customer service, and waste reduction and education operations are completed by City employees. The City owns and operates its own landfill and recycling processing facility on Dimeo Lane and sells the recycled materials. Refuse Enterprise Fund costs also include capital improvements and environmental monitoring needed to design and construct new landfill cells, to maintain and upgrade recycling facilities and to meet environmental regulatory requirements. In FY 2023, the Refuse Enterprise Fund budget included approximately $21 million in operating costs, $3 million in capital outlay, and $3 million in capital projects.

Residents and businesses within the City of Santa Cruz are required to have at least weekly solid waste collection service, with a minimum 20-gallon refuse cart service level. Resource recovery utility fees are charged monthly on the combined Santa Cruz Municipal Utility bill along with water and sewer fees. In addition to garbage collection, resource recovery collection fees include the cost of curbside recycling and yard waste service for cart-service customers, and recycling collection service for container and drop-box service customers. Resource recovery collection fees include the cost of disposal and processing of the collected materials at the Dimeo Lane Resource Recovery Facility (RRF). The resource recovery collection fees also include street sweeping service, provided in high-use business areas, beach areas and bike paths once a week, and to residential areas approximately twice a month. Resource recovery collections staff also picks up illegally dumped materials within the city limits. A waste reduction outreach and education program are provided to residents, businesses, and schools. Resource recovery collection fees cover the costs for city residents to use a countywide Household Hazardous Waste drop-off program at no additional cost, with one site open on Saturdays at the City RRF.

In addition, several additional services are provided to residential resource recovery collection customers, including Christmas tree collection in January, four free bulky item/appliance pick-up tags each year, a $40 discount program for compost or worm bins, and free drop-off locations around the city for fluorescent bulbs, household batteries, and unwanted medications and sharps.

20.1 Council last acted to increase the full schedule of resource recovery collection rates on January 27, 2015. (Minor changes affecting two rate categories were approved in August 2021). The 2015 action approved a four-tiered rate increase taking effect on February 1, 2015, and then on July 1 of the years 2015, 2016, and 2017 and 2018. Resource recovery collection fees have not been increased since July 2018.

The City Finance Department estimated that the Refuse Operations subfund had a FY 2023 beginning fund balance available for appropriation of $15 million as of July 1, 2022.

The Refuse Enterprise also includes three other restricted use subfunds. Two of these, the Landfill Closure subfund and Landfill Post-Closure Maintenance subfund are required under state law to ensure that adequate funds are available to close the landfill and maintain it for at least 30 years after closure in compliance with all environmental regulations. The Refuse 2% for Public Art subfund is the third restricted subfund and is required by City ordinance. Mandatory annual contributions to these restricted subfunds are included in projected expenditures of the operating budget.

The current $15 million fund balance is very substantial for the Refuse Operations subfund. The City was able to maintain the fund balance between FY 2018 and FY 2021, in which revenues kept pace with or exceeded expenditures. However, in FY 2022 and again in FY 2023, the construction of the new landfill cell created a deficit of about $3 million each year, severely cutting into the fund balance. Additionally, the Cost-of-Service study indicates that both the residential and commercial collection operations have been operating in a deficit, although the fund reserves have softened that impact.

The Refuse Fund supports 98.5 full-time equivalent (FTE) positions and personnel services costs make up over half of the operating budget (not including capital and debt). Budgeted personnel services costs for FY 2023 have increased by 36% over FY 2018 costs (from $8.6 million to $11.7 million). Trucks and heavy equipment are another vital but increasingly expensive part of refuse fund operations. Steel prices and availability have increased truck costs significantly, a front loader truck that cost $360,000 in 2018, is now about $400,00, and the electric version is up to $677.000. In addition to capital outlay costs for vehicles and equipment, capital construction costs can be substantial. Construction of a new lined landfill cell, completed this fiscal year, cost approximately $6 million.

Without a rate increase, expenditures are projected to continue to significantly exceed revenues, Table 1, and are projected to use up the fund balance by FY 2027 and put the refuse fund into a deficit by FY 2028 as shown in Table 2.

DISCUSSION: There are several reasons for the increased projected expenditures over the next several years. Primarily the passage of the California Short-lived Climate Pollutants: Organic Waste Reductions Act, more commonly known as Senate Bill 1383, created new requirements on cities to provide organic recovery programs. This includes food waste collection programs, food recovery programs for businesses and substantial inspection and compliance, including mandatory non-compliance fines. This has required the City to institute additional commercial and residential collection routes to meet this mandate. The City is looking to replace its aging computer software system in 2026. This software runs financial, human resources, permitting, customer service and billing, and various other citywide services. The estimated cost to the Refuse Fund is between $3 and $4 million. The City refuse fleet is responding to both the local

20.2 and state mandated push to replace diesel vehicles with electric versions. The difference in cost is currently about $300,000 higher for a similar refuse truck. Even as the City attempts to phase these purchases over several years, the additional cost is a significant increase to yearly expenses. Finally, there are significant increases in liability insurance, wages, and costs to access other needed City services, such as IT, Human Resources, Administrative, and Finance support services. The Resource Recovery Division hired an outside consultant, HF&H, to do an assessment of the Cost-of-Service requirements to keep the Refuse Fund healthy, able to respond to unforeseen occurrences, and meet the legal requirements under the State constitution (primarily under Proposition 218).
1) 5-Year Financial Plan:

Table 3 shows a 5-year financial plan for the Refuse Enterprise Fund showing proposed revenue increases needed to address the projected revenue deficits to the Refuse Fund that will occur without a rate increase. Table 2 assumes a refuse operations subfund balance available for appropriation of $15 million on July 1, 2022. The financial plan includes both closing the gap between revenues and anticipated spending, but also building up the reserve amount to fund the anticipated 2026 computer software purchase. These expected expenditures include assumed increases in capital outlay, maintenance, liability insurance, and personnel costs. The plan would leave a projected Refuse Operations subfund balance of approximately $14 million in FY 2028. 2) Estimated Target Reserve:

Table 4 shows estimated fund balance available for appropriation/reserves – with proposed rate increases. Several years ago Finance completed a risk characteristic stress test that evaluated the City’s individual factors for extreme and infrequent natural and man-made events, revenue volatility, expenditure volatility, size of debt or unfunded obligations, cash position, unfunded high priority capital projects among other factors. The result of this analysis supported a range of 17% to 25% for base reserves for General Fund obligations. For a self-sustaining Refuse Operation that relies on capital costs for continuation of services and is not meant to be subsidized by general taxes, staff recommends that the target reserve be increased by another 10% to 15% to reach a range between 27% and 40% depending on near term capital assessments.

This target has been traditionally calculated based on having in reserve one to three months of the annual operating budget of all refuse operations activities, as well as a capital cost contingency. Unfortunately, escalating costs over the last several years, in the areas of construction and environmental clean-up show that our previous target is now too low, it is more appropriate at the high end of that range. The proposed collection rates are projected to result in a fund balance of $14 million by FY 2028 or approximately 50% of our anticipated operating budget.
3) Proposed Cart Service Rates:

Table 5 shows the proposed cart service collection rates. The City has a Zero Waste Goal and has established resource recovery collection rates that provide incentives to customers to reduce waste by ordering a smaller refuse cart size at a lower price. This price incentive has been very effective. The number of cart customers choosing smaller carts has increased dramatically when first established and has remained consistent over the last few years. Currently, 38% of cart customers have 20-gallon carts, 43% have 32-gallon carts, 18% have 64-gallon carts and less than 1% have the 95-gallon carts. Although 81% of our customers have the smaller 20- or 32- gallon carts, historically 5% of customers will try to change to a smaller cart size after a rate increase. Although most will change back to the correct size, to achieve the revenue increases needed from within the cart sector while factoring in this shift to lower cost (and thus lower

20.3 revenue) service, the rates for cart service needed to be adjusted upward slightly for the first year. The cart service collection rates are proposed to increase by 10% on September 1, 2023, and then by 4% on September 1 of 2024, 2025, 2026 and 2027.

New or changed cart collection services are included in the proposed rates:
a) The addition of food scrap collection in the residential bundled rate package. b) Elimination of the Life-Line rate. This fee has been determined illegal under Proposition 218. 4) Proposed Commercial Rates:

Table 6 shows the proposed commercial collection rates. The proposed rates continue to provide a financial incentive to reduce waste and to choose a larger container size picked up less often rather than having a smaller container picked up multiple times each week. The commercial container collection rates are proposed to increase by 15% on September 1, 2023, and then by 4% on September 1 of 2024, 2025, 2026 and 2027.

Some commercial rates and fees apply to customers who request one-time and/or temporary collection services, services that are charged each time they are collected, and special services.

The proposed rates for most of these special commercial categories were based on a percentage increase equal to that of the regular commercial rates.

New or changed commercial collection services are included in the proposed rates:
a) Including State mandated food scrap collection into a bundled rate. This means for the basic cost of their refuse container, commercial collection will include recycling, yard waste and food scrap service for no additional cost. This will eliminate the current rates for 64-gallon cart, 1 yard container, 2-yard container and 3-yard container service for food scraps. b) Eliminate the Weekend Collection Surcharge.
5) Proposed Municipal Wharf Rates:

The businesses on the Municipal Wharf have a separate rate schedule because they are mandated to utilize shared City-owned compactors located at several points along the wharf due to collection challenges and to reduce the number of heavy truck trips. The current and proposed monthly resource recovery collection rates for Municipal Wharf customers are shown in Table 7.

The wharf rates were calculated to achieve the overall target revenue percentage increases set forth in the Financial Plan and are proposed to increase by 15% on September 1, 2023, and then by 4% on September 1 of 2024, 2025, 2026 and 2027.
6) City School District Rates:

Staff is recommending that the School District rates be increased as shown in Table 8. The proposed rates are based on applying the same percentage increases proposed for regular commercial rates to the current School District rates over the current rates, 15% on September 1, 2023, and then by 4% on September 1 of 2024, 2025, 2026 and 2027.

Under the State Constitution (as revised by Proposition 218) and subsequent State law, the City Council can approve increases to refuse collection fees after conducting a public hearing on the proposed fees and charges. That public hearing must be held no less than 45 days after mailing a notice of the proposed fees and charges to the record owners of each identified parcel which will be impacted. At the public hearing, Council must consider all properly submitted written protests against the proposed increase in fees and charges and may not impose the increase if a majority of the property owners submit such protests.

20.4 Staff has prepared a public notice for mailing (copy attached). If Council approves the recommendation to set a public hearing for the proposed resource recovery collection rates on August 8, 2023, staff will mail the notice out to property owners and refuse customers the week of June 19, 2023 (must be mailed no later than June 22, 2023).

FISCAL IMPACT: Without the proposed resource recovery collection rate increases, the estimated $14 million FY 2023 beginning fund balance available for appropriation for the refuse operations subfund is estimated to decline to a negative fund balance of at the end of FY 2027, and to a deficit of over $2.8 million by the end of FY 2028. The proposed rate increases are projected to increase revenues over the next five years while slowly spending down the fund balance over the next four years. With the proposed rate increases, annual revenues are projected to approximately equal annual expenditures by FY 2025, fund the computer system upgrade in FY 2025, and return to an ending fund balance of approximately $14 million.

The impact of the proposed fees on collection customers is shown in the attached tables.

Collection rates provide a financial incentive to both residential and commercial customers to reduce to a smaller cart or container size, fully utilize our additional waste reduction services, and to commercial customers to have refuse picked up less frequently. These rates provide financial incentives that should help the City reduce waste, move toward the Zero Waste Goal and increase landfill diversion and landfill life.

Under the proposed plan, collection rates would increase on September 1, 2023, and then on September 1st of 2024, 2025, 2026 and 2027.

Prepared By:

Bob Nelson
Resource Recovery
Operations Manager
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. TABLES .PDF

2. HF AND H EXECUTIVE SUMMARY RATE MODEL.PDF

3. REFUSE RATE INCREASE MAILED NOTICE.PDF

20.5 Table 1 Projected Expenditures – No Rate Increase
Table 2 Projected Fund Balance Available for Appropriation – No Rate Increase City of Santa Cruz
Solid Waste Rate Model
Table 1A - Summary YTD Actual <---- City Budget Toggle
Fiscal year FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Eff. Date 7/1/2022 7/1/2023 7/1/2024 7/1/2025 7/1/2026
Revenue Requirement - Residential $9,329,723 $9,668,063 $10,019,260 $10,383,803 $10,336,160 Revenue - Residential $8,224,797 $8,224,797 $8,224,797 $8,224,797 $8,224,797 Surplus / (Shortfall) -$1,104,926 -$1,443,266 -$1,794,463 -$2,159,006 -$2,111,363 Revenue Requirement - Commercial $8,258,869 $8,551,737 $8,855,734 $9,171,283 $8,947,008 Revenue - Commercial $7,208,433 $7,208,433 $7,208,433 $7,208,433 $7,208,433 Surplus / (Shortfall) -$1,050,436 -$1,343,304 -$1,647,301 -$1,962,850 -$1,738,575 Annual Rate Revenue Increases - Residential 0.0% 0.0% 0.0% 0.0% 0.0% Annual Rate Revenue Increases - Commercial 0.0% 0.0% 0.0% 0.0% 0.0%

20.6 Table 3 Five Year Financial Plan
Table 4 Estimated Fund Balance Available for Appropriation/Reserves – with proposed rate increases
Table 5 Proposed Cart Service Rates City of Santa Cruz
Solid Waste Rate Model
Table 1A - Summary YTD Actual <---- City Budget Toggle
Fiscal year FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Eff. Date 7/1/2022 7/1/2023 7/1/2024 7/1/2025 7/1/2026
Revenue Requirement - Residential $9,329,172 $9,667,491 $10,018,666 $10,383,186 $10,335,519 Revenue - Residential $9,047,277 $9,409,168 $9,785,535 $10,176,956 $10,584,034 Surplus / (Shortfall) -$281,895 -$258,323 -$233,131 -$206,230 $248,515 Revenue Requirement - Commercial $8,259,435 $8,552,325 $8,856,344 $9,171,916 $8,947,665 Revenue - Commercial $8,227,250 $8,556,340 $8,898,593 $9,254,537 $9,624,719 Surplus / (Shortfall) -$32,185 $4,015 $42,249 $82,621 $677,053 Annual Rate Revenue Increases - Residential 10.0% 4.0% 4.0% 4.0% 4.0% Annual Rate Revenue Increases - Commercial 15.0% 4.0% 4.0% 4.0% 4.0% $10.0
$11.0
$12.0
$13.0
$14.0
$15.0
$16.0
$17.0
$18.0
$19.0
FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Reserves Balance
(Millions)
Projected Year-End Unrestricted Cash Balance
City-Selected Rate
Phasing
No Rate Increases
Current Reserve Target
Current Rates FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Cart Service (Residential and Commercial)
20-gallon cart, one/week $22.36 $24.60 $25.58 $26.60 $27.67 $28.77 32-gallon cart, one/week $36.04 $39.64 $41.23 $42.88 $44.59 $46.38 64-gallon cart, one/week $77.25 $84.98 $88.37 $91.91 $95.59 $99.41 95-gallon cart, one/week $123.60 $135.96 $141.40 $147.05 $152.94 $159.05 Additional unscheduled setout (per bag) $16.72 $18.39 $19.13 $19.89 $20.69 $21.52 Call-back service (carts) $39.53 $43.48 $45.22 $47.03 $48.91 $50.87 Commercial 64-gallon Food Waste Cart once/week $69.48 $79.95 $83.15 $86.48 $89.94 $93.53 Food Waste additional schedule pickup $69.48 $79.95 $83.15 $86.48 $89.94 $93.53

20.7 Table 6 Proposed Commercial Rates
Current Rates FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Commercial Containers (City Owned)
1 CY one/week $218.50 $251.28 $261.33 $271.78 $282.65 $293.96 Additional scheduled weekly pickups $218.50 $251.28 $261.33 $271.78 $282.65 $293.96 Additional unscheduled pickups (each) $61.26 $70.45 $73.27 $76.20 $79.25 $82.42 Food Waste one pickup per week $196.65 $226.15 $235.19 $244.60 $254.39 $264.56 Food Waste additional scheduled (each) $196.65 $226.15 $235.19 $244.60 $254.39 $264.56 2 CY once/week $325.68 $374.53 $389.51 $405.09 $421.30 $438.15 Additional scheduled weekly pickups $325.68 $374.53 $389.51 $405.09 $421.30 $438.15 Additional unscheduled pickups (each) $122.52 $140.90 $146.53 $152.40 $158.49 $164.83 Food Waste one pickup per week $293.11 $337.08 $350.56 $364.58 $379.17 $394.33 Food Waste additional scheduled (each) $293.11 $337.08 $350.56 $364.58 $379.17 $394.33 Temporary Service
Ten-day service, one pick-up $157.52 $181.15 $188.39 $195.93 $203.77 $211.92 Five-day service, one pick-up $108.76 $125.07 $130.08 $135.28 $140.69 $146.32 Each Extra Day (max 15) $31.57 $36.31 $37.76 $39.27 $40.84 $42.47 3 CY once/week $456.74 $525.25 $546.26 $568.11 $590.84 $614.47 Additional scheduled weekly pickups $456.74 $525.25 $546.26 $568.11 $590.84 $614.47 Additional unscheduled pickups (each) $200.87 $231.00 $240.24 $249.85 $259.84 $270.24 Food Waste one pickup per week $411.07 $472.73 $491.63 $511.30 $531.75 $553.02 Food Waste additional scheduled (each) $411.07 $472.73 $491.63 $511.30 $531.75 $553.02 4 CY once/week $557.00 $640.55 $666.17 $692.82 $720.53 $749.35 Additional scheduled weekly pickups $557.00 $640.55 $666.17 $692.82 $720.53 $749.35 Additional unscheduled pickups (each) $245.05 $281.81 $293.08 $304.80 $317.00 $329.67 Temporary Service
Ten-day service, one pick-up $317.24 $364.83 $379.42 $394.60 $410.38 $426.79 Five-day service, one pick-up $216.59 $249.08 $259.04 $269.40 $280.18 $291.39 Each Extra Day (max 15) $62.98 $72.43 $75.32 $78.34 $81.47 $84.73 6 CY once/week $788.32 $906.57 $942.83 $980.54 $1,019.77 $1,060.56 Additional scheduled weekly pickups $788.32 $906.57 $942.83 $980.54 $1,019.77 $1,060.56 Additional unscheduled pickups (each) $367.57 $422.71 $439.61 $457.20 $475.49 $494.51 Temporary Service
Ten-day service, one pick-up $381.01 $438.16 $455.69 $473.92 $492.87 $512.59 Five-day service, one pick-up $259.88 $298.86 $310.82 $323.25 $336.18 $349.63 Each Extra Day (max 15) $62.98 $72.43 $75.32 $78.34 $81.47 $84.73 8 CY once/week $993.28 $1,142.27 $1,187.96 $1,235.48 $1,284.90 $1,336.30 Additional scheduled weekly pickups $993.28 $1,142.27 $1,187.96 $1,235.48 $1,284.90 $1,336.30 Additional unscheduled pickups (each) $462.63 $532.02 $553.31 $575.44 $598.46 $622.39 Delivery charge for reinstation dequinlent accounts (1-8 yd) $145.49 $167.31 $174.01 $180.97 $188.20 $195.73 Special Containers (Downtown MW and Rec Enclosures)
Rate for common use of a refuse container
Maintenance fee for downtown enclosures
Customer Services
Cart locks installation $15.23 $17.51 $18.22 $18.94 $19.70 $20.49 Container locks installation $52.74 $60.65 $63.08 $65.60 $68.22 $70.95 Cart cleaning (special request) $15.23 $17.51 $18.22 $18.94 $19.70 $20.49 Container renewal (clean/paint) $35.16 $40.43 $42.05 $43.73 $45.48 $47.30 Compactor cleaning (per time) $179.25 $206.14 $214.38 $222.96 $231.88 $241.15 Life-line rate - 20 gallon cart $21.36 $23.50 $24.44 $25.41 $26.43 $27.49 Life-line rate - 32 gallon cart $35.04 $38.54 $40.09 $41.69 $43.36 $45.09 Bulky item pickup (Resi pick up, scheduled) $24.31 $26.74 $27.81 $28.92 $30.08 $31.28 Private enclosed cleaning fee $179.25 $206.14 $214.38 $222.96 $231.88 $241.15 Special service fee (requested by customer) $15.23 $17.51 $18.22 $18.94 $19.70 $20.49 Difficult to service fee $30.47 $33.52 $34.86 $36.25 $37.70 $39.21 Additional Rec or GW cart fee $4.25 $4.68 $4.86 $5.06 $5.26 $5.47 Special haul rate (per hour) $564.15 $648.77 $674.72 $701.71 $729.78 $758.97 Special haul rate (minimum charge) $179.25 $206.14 $214.38 $222.96 $231.88 $241.15 Weekend Collection Surcharge 15% 15% 15% 15% 15% 15%
Change of service fee $11.72 $13.48 $14.02 $14.58 $15.16 $15.77 Regular container rate / proportional volume generated by the business or property = monthly refuse rate charged to business or property.

Proportional share of actual maintenance costs based on average volume of refuse collected. 20.8
Table 7 Proposed Municipal Wharf Rates
Table 8 Proposed City School Rates
Municipal Wharf Rates Current Rates FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Muni Wharf - Summer 32 gal Cart $36.04 $41.45 $43.10 $44.83 $46.62 $48.49 Muni Wharf - Winter 32 gal Cart $36.04 $41.45 $43.10 $44.83 $46.62 $48.49 Muni Wharf - Summer Level 0 $97.47 $112.09 $116.57 $121.24 $126.09 $131.13 Muni Wharf - Winter Level 0 $97.47 $112.09 $116.57 $121.24 $126.09 $131.13 Muni Wharf - Summer Level 1 $234.64 $269.84 $280.63 $291.85 $303.53 $315.67 Muni Wharf - Winter Level 1 $189.72 $218.18 $226.91 $235.98 $245.42 $255.24 Muni Wharf - Summer Level 2 $410.70 $472.31 $491.20 $510.85 $531.28 $552.53 Muni Wharf - Winter Level 2 $300.89 $346.02 $359.86 $374.26 $389.23 $404.80 Muni Wharf - Summer Level 3 $693.12 $797.09 $828.97 $862.13 $896.62 $932.48 Muni Wharf - Winter Level 3 $466.18 $536.11 $557.55 $579.85 $603.05 $627.17 Muni Wharf - Summer Level 4 $1,125.26 $1,294.05 $1,345.81 $1,399.64 $1,455.63 $1,513.85 Muni Wharf - Winter Level 4 $803.96 $924.55 $961.54 $1,000.00 $1,040.00 $1,081.60 Muni Wharf - Summer Level 5 $1,988.60 $2,286.89 $2,378.37 $2,473.50 $2,572.44 $2,675.34 Muni Wharf - Winter Level 5 $1,363.68 $1,568.23 $1,630.96 $1,696.20 $1,764.05 $1,834.61 Santa Cruz City School District - Proposed Resource Recovery Collection Rates School Name
Refuse
Containe
r Size
Refuse
Pickups/Week Current Rates FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Bay View Elementary 6 yd 2 $ $1,140.21 $1,185.81 $1,233.25 $1,282.58 $1,333.88 991.48 Branciforte Elementary 4 yd 2 $ $857.93 $892.25 $927.94 $965.06 $1,003.66 746.03 Branciforte Middle School 4 yd 2 $ $857.93 $892.25 $927.94 $965.06 $1,003.66 746.03 DeLaveaga Elementary 4 yd 3 $ $1,232.57 $1,281.88 $1,333.15 $1,386.48 $1,441.94 1,071.80 Gault Elementary 4 yd 2 $ $857.93 $892.25 $927.94 $965.06 $1,003.66 746.03 4 yd 2 $ $857.93 $892.25 $927.94 $965.06 $1,003.66 746.03 4 yd 3 $ $1,232.57 $1,281.88 $1,333.15 $1,386.48 $1,441.94 1,071.80 4 yd 1 $ $483.29 $502.62 $522.73 $543.64 $565.38 420.25 Adult School - La Fonda 4 yd 1 $ $483.29 $502.62 $522.73 $543.64 $565.38 420.25 Mission Hill Middle School 4 yd 3 $ $1,232.57 $1,281.88 $1,333.15 $1,386.48 $1,441.94 1,071.80 Santa Cruz High 6 yd 3 $ $1,639.15 $1,704.72 $1,772.91 $1,843.83 $1,917.58 1,425.35 Football Field 4 yd 1 $ $483.29 $502.62 $522.73 $543.64 $565.38 420.25 229 Weeks - Adult Ed 2 -32 gal 1 $ $55.42 $57.64 $59.94 $62.34 $64.84 48.19 Warehouse (536 Palm) 2 yd 1 $ $293.23 $304.96 $317.16 $329.85 $343.04 254.98 2 yd 1 $ $293.23 $304.96 $317.16 $329.85 $343.04 254.98 4 yd 1 $ $483.29 $502.62 $522.73 $543.64 $565.38 420.25 4 yd 1 $ $483.29 $502.62 $522.73 $543.64 $565.38 420.25 Westlake Elementary
Harbor High

20.9 20.10

20.11 20.12

20.13 20.14

20.15 20.16

20.17 20.18

20.19 20.20
Why Are Rate
Increases Needed?
Our City of Santa Cruz Resource Recovery programs and services described at left are self-supporting operations within the Refuse Enterprise Fund. Their expenditures are covered by refuse collection fees which have not been increased since July 2018 and are projected to exceed revenues and deplete the fund balance by FY2027. There are several reasons for this.

First, personnel service costs for FY2023 have increased by 36% since FY2018. Trucks and heavy equipment are more expensive given steel prices and availability. Also, Resource Recovery is responding to the state-mandate to replace diesel vehicles with electric versions at considerable increase in cost.

Capital construction costs have substantially risen. Construction of a new landfill cell has created a deficit of about $6 million, severely cutting into the fund balance.

The passage of California State’s mandated SB 1383 has brought new costs with requirements to provide residential and commercial food waste collection and recovery programs.

Last, citywide software that runs finances and other services is aging and must soon be replaced; the Resource Recovery portion will cost $3-4 million.

With the proposed rate increases, annual revenues are projected to equal annual expenditures by FY2025 and return a moderate unrestricted fund balance in FY2028 as a hedge against any unforeseen costs.

The proposed fees are based on the refuse container size (volume) and the frequency of collection. They offer customers a financial incentive to reduce waste and move to a smaller cart or container size.

Commercial customers may also choose to have refuse picked up less frequently at lower cost. These financial incentives help our City meet our Climate Action goals of increased waste reduction, increased landfill diversion, and landfill life extension.

The proposed Resource Recovery refuse collection rates are detailed in the following pages.

Services Included with Resource Recovery Refuse Collection Rates Curbside Recycling
Residents and businesses in the City are provided unlimited recycling collection with their refuse service. Recycling reduces the amount of garbage that must be collected and may enable you to reduce cart or container size and lower monthly rates. Materials to recycle include mixed paper, junk mail, newspapers, cardboard, glass bottles and jars, metal cans, bagged and tied plastic bags, and plastic bottles, jars, jugs and tubs. Used motor oil and oil filters may be recycled curbside in City-provided jugs. Please recycle right! Don’t include contaminants such as single plastic bags, garbage, polystyrene foam, or items with food residue—these can damage equipment and/or cause an entire recycling load to be landfilled.

Yard Waste Recycling
Resource Recovery collection rates include weekly collection of a 64-gallon yard waste cart. Grass clippings, leaves, pine needles, prunings, branches, plants, unpainted/untreated lumber scraps, and untreated wood chips, bark, or sawdust may be put into the green cart and placed curbside on your regular collection day. City crews will collect it, grind it, and send it to a local farm for composting or use as mulch. It is critical that you only include the items listed to prevent contamination and damage to the grinder. Yard waste recycling saves landfill space and helps you reduce your refuse cart size and monthly fees.

Street Sweeping
Our City Street Sweeping program is funded through Resource Recovery collection rates. Our crews attempt to sweep streets in the highuse business areas, beach areas, and bike paths at least once a week and more often during high-use seasons. They attempt to sweep residential streets twice a month on the day after collection service.

Heavy on-street parking limits the ability of sweepers to access areas next to curbs. You can help by not parking on the street the morning after your refuse collection. Street sweeping helps keep pollutants out of storm drains, and ultimately, out of Monterey Bay and the ocean.

Sweeping also helps clear gutters of leaves and debris that can clog storm drains and lead to street flooding. Your assistance in helping to keep storm drains near your home free of leaves during the rainy season is appreciated. If you observe a street debris problem that could cause a safety hazard, please call (831) 420-5558.

Food Scrap Diversion Program
(Commercial rates now include this service!)
The new Food Scrap Collection Program serves residents and businesses in compliance with SB 1383 to reduce greenhouse gas emissions. It is now part of the bundled service including garbage, yard waste, and recycling. Collection for residents is curbside, and onsite for businesses. The scraps are turned into mash that is processed into a variety of products including pellets for pig feed; eventually it will be transformed into energy for onsite use at the Wastewater Treatment Facility. Customers are provided containers for food scrap collection that may include vegetables, fruits, meat, dairy products, seafood, solid fats, and more. Learn more at cityofsantacruz.com/foodwaste.

Bulky Item Pickup
Contact Customer Service at (831) 420-5220 or scmu@cityofsantacruz.com to ask about our convenient “on call” bulky item pickup. If the utility bill is in your name, you are eligible to have up to four bulky items collected at one time or one item picked up four times a year, free of charge. Appliances, bags of trash and other “bulky” items qualify. Schedule a pickup any time during the year. Once you have used up your four free opportunities, the regular bulky item fee will be charged to your municipal utility account. If you are a renter and the utility bill is not in your name, bulky item collection is still available for a fee.

Household Hazardous Waste Drop-Off
Our Resource Recovery program provides free drop-off for Household Hazardous Waste (HHW) to all residents.

The Resource Recovery Facility, 605 Dimeo Lane, has a HHW facility open on Saturdays from 7:30 a.m. to 3:30 p.m. City residents may also use the two HHW sites at the County’s Buena Vista Landfill and Ben Lomond Transfer Station. It is both dangerous and illegal to dispose of HHW in the garbage, down the drain, or on the ground. For a free brochure on safe HHW disposal, call (831) 420-5591.

Medications and Sharps Drop-Off Sites
Prescription and over-the-counter medications (pills, liquids, or creams) should never be flushed down the toilet, poured down the sink, or placed in the trash. Used needles and lancets (often called “sharps”) should never be placed in a recycling or trash cart, flushed down the toilet, or discarded individually. Properly dispose of sharps by placing them into an approved red sharps container available at pharmacies. Resource Recovery collection rates help fund a number of free drop-off locations in Santa Cruz for safe disposal of needles and meds. Find drop-off sites at med-project.org/locations.

Home Composting $40 Rebate Program
If you are a City resident and a Resource Recovery collection customer, our Waste Reduction program will give you a $40 rebate the first time you purchase a home compost or worm bin from participating local businesses. Home composting can help you reduce your refuse volume and will produce a soil amendment that your plants will love! Visit cityofsantacruz.com/ homecomposting for the rebate form and a listing of participating merchants.

Fluorescent Bulb & Battery Drop-Off Sites
It is illegal to dispose of fluorescent bulbs and tubes, and household batteries in your trash. You may drop off these items for safe recycling at a number of local businesses or public facilities. There is no fee since your Resource Recovery collection rates include the costs of these programs. Find drop-off locations at cityofsantacruz.com.

For more information, contact:

Resource Recovery Operations Manager Bob Nelson
[email protected] or (831) 420-5548
Public Works Department
809 Center Street, Room 201
Santa Cruz, CA 95060
cityofsantacruz.com

PRSRT STD
U.S. POSTAGE
PAID

SANTA CRUZ, CA
PERMIT #505
Printed on
Recycled Paper
Printed on recycled paper
using plant-based inks.

Notice of Public Hearing
The Santa Cruz City Council will hold
a public hearing on
Proposed Resource Recovery
Refuse Collection Rate Increases
Tuesday, August 8, 2023 - after 11 a.m.

City Council Chambers, 809 Center St.

The City Council will consider adoption of
proposed Resource Recovery refuse collection rate increases affecting all residential and commercial customers. Interested persons are
encouraged to attend and comment on the
issues being discussed.

Written protests: Any property owner or a tenant
who is a customer of the City Resource Recovery
collection program may protest the proposed
Resource Recovery collection rates. Only one
written protest per parcel, filed by an owner or a
tenant who is a customer, will be counted. Only
written and signed protests that include the
writer’s address and/or assessor parcel number
will be counted to determine whether a majority
protest to the proposed Resource Recovery colResource Recovery Programs & Services
In a typical week, our City of Santa Cruz Resource
Recovery Division collects 660 tons of refuse,
252 tons of recycling, and 250 tons of organic
material from over 16,000 residential and 13,000
commercial customers.

All these materials are transported to the Resource
Recovery Facility. There, trash is deposited in the
landfill while all recyclable materials are sorted,
processed, and/or packaged for their next life.

One hundred and three staff members conduct these
and many other operations. They also sweep our City
streets, collect public area trash cans and illegally
dumped waste. They manage household hazardous
waste disposal services and waste reduction education and outreach programs. They conduct capital improvements and environmental monitoring needed
to design and construct new landfill cells and to
maintain and upgrade recycling facilities to meet
regulatory requirements.

They also manage free Christmas tree collection and
bulky item/appliance pick-up, a rebate program for
compost or worm bins, and free drop-off locations
for fluorescent bulbs, household batteries, and unwanted medications and sharps.

The results of these services include an estimated
65% rate of waste diversion from the landfill, while
the national diversion rate is about 34%. The new
food scrap collection program is increasing the
diversion percentage and reducing methane
landfill emissions.

Our City’s landfill disposal level is down about
60,000 tons a year from 120,000 tons in 1989.

This is tangible progress thanks to the active
recycling and waste reduction by our Santa Cruz
residents and businesses.

Public Works Department
Prop. 218 Notice
Proposed Rates
June 2023
Hay tres opciones
para la traducción
al español de este
boletín de tarifas:
• Para leer y/o descargar
nuestra versión, visite
cityofsantacruz.com/
resourcerecoveryrates.
• Recoja una copia impresa:

Departamento de Obras
Públicas, 809 Center St.

Rm. 201, Santa Cruz,
95060
• Llame a Resource
Recovery (831) 420-5575
para recibir una copia.
lection rate increase exists. Written protests
may be mailed or hand delivered to the Santa
Cruz Mayor and City Council at 809 Center
St, Rm. 10, Santa Cruz, CA 95060.

If you oppose the proposed rate increases,
your protest must be submitted in writing
to be counted, even if you plan to attend
the public hearing. To be counted, the
protest must:
l ) be in writing; 2) state opposition to the
proposed rate increase; 3) identify the parcel
by assessor’s parcel number or street address;
4) include the original signature of the owner
of record or a tenant who is a customer of
the City Resource Recovery collection service
submitting the protest; 5) be received before the conclusion of the public hearing on August 8, 2023 which will be held in City
Council Chambers at 809 Center St.

For more information, contact:

Resource Recovery Operations
Manager Bob Nelson
[email protected] or
(831) 420-5548
PHOTO: BRAD KAVA

20.21 Careful Choices
Will Save You Money
Resource Recovery refuse collection rates include weekly service for recycling, yard waste, and food scrap collection. By reducing waste, Recycling Right! and properly sorting and diverting organics, most customers can reduce the size of their refuse container.

Careful waste management
will save you money and
increase the lifespan
of our City landfill.

Current Rates FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Cart Service (Residential and Commercial) 10% 4% 4% 4% 4% 20-gallon cart, one/week $22.36 $24.60 $25.58 $26.60 $27.67 $28.77 32-gallon cart, one/week $36.04 $39.64 $41.23 $42.88 $44.59 $46.38 64-gallon cart, one/week $77.25 $84.98 $88.37 $91.91 $95.59 $99.41 95-gallon cart, one/week $123.60 $135.96 $141.40 $147.05 $152.94 $159.05 Additional unscheduled setout (per bag) $16.72 $18.39 $19.13 $19.89 $20.69 $21.52 Call-back service (carts) $39.53 $43.48 $45.22 $47.03 $48.91 $50.87 Commercial Containers (City Owned) 15% 4% 4% 4% 4%
1 CY one/week $218.50 $251.28 $261.33 $271.78 $282.65 $293.96 Additional scheduled weekly pickups $218.50 $251.28 $261.33 $271.78 $282.65 $293.96 Additional unscheduled pickups (each) $61.26 $70.45 $73.27 $76.20 $79.25 $82.42 2 CY once/week $325.68 $374.53 $389.51 $405.09 $421.30 $438.15 Additional scheduled weekly pickups $325.68 $374.53 $389.51 $405.09 $421.30 $438.15 Additional unscheduled pickups (each) $122.52 $140.90 $146.53 $152.40 $158.49 $164.83 Temporary Service
Ten-day service, one pick-up $157.52 $181.15 $188.39 $195.93 $203.77 $211.92 Five-day service, one pick-up $108.76 $125.07 $130.08 $135.28 $140.69 $146.32 Each Extra Day (max 15) $31.57 $36.31 $37.76 $39.27 $40.84 $42.47 3 CY once/week $456.74 $525.25 $546.26 $568.11 $590.84 $614.47 Additional scheduled weekly pickups $456.74 $525.25 $546.26 $568.11 $590.84 $614.47 Additional unscheduled pickups (each) $200.87 $231.00 $240.24 $249.85 $259.84 $270.24 4 CY once/week $557.00 $640.55 $666.17 $692.82 $720.53 $749.35 Additional scheduled weekly pickups $557.00 $640.55 $666.17 $692.82 $720.53 $749.35 Additional unscheduled pickups (each) $245.05 $281.81 $293.08 $304.80 $317.00 $329.67 Temporary Service
Ten-day service, one pick-up $317.24 $364.83 $379.42 $394.60 $410.38 $426.79 Five-day service, one pick-up $216.59 $249.08 $259.04 $269.40 $280.18 $291.39 Each Extra Day (max 15) $62.98 $72.43 $75.32 $78.34 $81.47 $84.73 6 CY once/week $788.32 $906.57 $942.83 $980.54 $1,019.77 $1,060.56 Additional scheduled weekly pickups $788.32 $906.57 $942.83 $980.54 $1,019.77 $1,060.56 Additional unscheduled pickups (each) $367.57 $422.71 $439.61 $457.20 $475.49 $494.51 Temporary Service
Ten-day service, one pick-up $381.01 $438.16 $455.69 $473.92 $492.87 $512.59 Five-day service, one pick-up $259.88 $298.86 $310.82 $323.25 $336.18 $349.63 Each Extra Day (max 15) $62.98 $72.43 $75.32 $78.34 $81.47 $84.73 8 CY once/week $993.28 $1,142.27 $1,187.96 $1,235.48 $1,284.90 $1,336.30 Additional scheduled weekly pickups $993.28 $1,142.27 $1,187.96 $1,235.48 $1,284.90 $1,336.30 Additional unscheduled pickups (each) $462.63 $532.02 $553.31 $575.44 $598.46 $622.39 Delivery charge for reinstation dequinlent accounts (1-8 yd) $145.49 $167.31 $174.01 $180.97 $188.20 $195.73 Roll-Off Rates **No Rate Change to Roll-Off Rates
10 CY
Temporary 15-day service, 1 pickup $459.98 $459.98 $459.98 $459.98 $459.98 $459.98 Minimum permanent Service, 1 pickup/month $511.35 $511.35 $511.35 $511.35 $511.35 $511.35 Additional pickups $485.53 $485.53 $485.53 $485.53 $485.53 $485.53 15 CY
Temporary 15-day service, 1 pickup $573.19 $573.19 $573.19 $573.19 $573.19 $573.19 Minimum permanent Service, 1 pickup/month $637.20 $637.20 $637.20 $637.20 $637.20 $637.20 Additional pickups $605.03 $605.03 $605.03 $605.03 $605.03 $605.03 20 CY
Temporary 15-day service, 1 pickup $671.01 $671.01 $671.01 $671.01 $671.01 $671.01 Minimum permanent Service, 1 pickup/month $745.95 $745.95 $745.95 $745.95 $745.95 $745.95 Additional pickups $708.29 $708.29 $708.29 $708.29 $708.29 $708.29 30 CY
Temporary 15-day service, 1 pickup $866.63 $866.63 $866.63 $866.63 $866.63 $866.63 Minimum permanent Service, 1 pickup/month $963.41 $963.41 $963.41 $963.41 $963.41 $963.41 Additional pickups $914.78 $914.78 $914.78 $914.78 $914.78 $914.78 Weekend Special, 10-yard, 15-yard
10 CY drop off Fri, pickup Mon $292.08 $292.08 $292.08 $292.08 $292.08 $292.08 15 CY drop off Fri, pickup Mon $365.13 $365.13 $365.13 $365.13 $365.13 $365.13 Current Rates FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Compactor Containers (Customer Owned)
Roll-off truck service (based on 12 CY) $67.35 $77.45 $80.55 $83.77 $87.12 $90.61 Front-loader truck service $29.08 $33.44 $34.78 $36.17 $37.62 $39.12 Municipal Wharf Rates
Muni Wharf - Summer 32 gal Cart $36.04 $41.45 $43.10 $44.83 $46.62 $48.49 Muni Wharf - Winter 32 gal Cart $36.04 $41.45 $43.10 $44.83 $46.62 $48.49 Muni Wharf - Summer Level 0 $97.47 $112.09 $116.57 $121.24 $126.09 $131.13 Muni Wharf - Winter Level 0 $97.47 $112.09 $116.57 $121.24 $126.09 $131.13 Muni Wharf - Summer Level 1 $234.64 $269.84 $280.63 $291.85 $303.53 $315.67 Muni Wharf - Winter Level 1 $189.72 $218.18 $226.91 $235.98 $245.42 $255.24 Muni Wharf - Summer Level 2 $410.70 $472.31 $491.20 $510.85 $531.28 $552.53 Muni Wharf - Winter Level 2 $300.89 $346.02 $359.86 $374.26 $389.23 $404.80 Muni Wharf - Summer Level 3 $693.12 $797.09 $828.97 $862.13 $896.62 $932.48 Muni Wharf - Winter Level 3 $466.18 $536.11 $557.55 $579.85 $603.05 $627.17 Muni Wharf - Summer Level 4 $1,125.26 $1,294.05 $1,345.81 $1,399.64 $1,455.63 $1,513.85 Muni Wharf - Winter Level 4 $803.96 $924.55 $961.54 $1,000.00 $1,040.00 $1,081.60 Muni Wharf - Summer Level 5 $1,988.60 $2,286.89 $2,378.37 $2,473.50 $2,572.44 $2,675.34 Muni Wharf - Winter Level 5 $1,363.68 $1,568.23 $1,630.96 $1,696.20 $1,764.05 $1,834.61 Special Containers (Downtown MW and Rec Enclosures)
Rate for common use of a refuse container Regular container rate / proportional volume generated by the business or property = monthly refuse rate charged to business or property.

Maintenance fee for downtown enclosures Proportional share of actual maintenance costs based on average volume of refuse collected.

Customer Services
Cart locks installation $15.23 $17.51 $18.22 $18.94 $19.70 $20.49 Container locks installation $52.74 $60.65 $63.08 $65.60 $68.22 $70.95 Cart cleaning (special request) $15.23 $17.51 $18.22 $18.94 $19.70 $20.49 Container renewal (clean/paint) $35.16 $40.43 $42.05 $43.73 $45.48 $47.30 Compactor cleaning (per time) $179.25 $206.14 $214.38 $222.96 $231.88 $241.15 Life-line rate - 20 gallon cart $21.36 $23.50 $24.44 $25.41 $26.43 $27.49 Life-line rate - 32 gallon cart $35.04 $38.54 $40.09 $41.69 $43.36 $45.09 Bulky item pickup (Resi pick up, scheduled) $24.31 $26.74 $27.81 $28.92 $30.08 $31.28 Private enclosed cleaning fee $179.25 $206.14 $214.38 $222.96 $231.88 $241.15 Special service fee (requested by customer) $15.23 $17.51 $18.22 $18.94 $19.70 $20.49 Difficult to service fee $30.47 $33.52 $34.86 $36.25 $37.70 $39.21 Additional Rec or GW cart fee $4.25 $4.68 $4.86 $5.06 $5.26 $5.47 Special haul rate (per hour) $564.15 $648.77 $674.72 $701.71 $729.78 $758.97 Special haul rate (minimum charge) $179.25 $206.14 $214.38 $222.96 $231.88 $241.15 Weekend Collection Surcharge 15% 15% 15% 15% 15% 15%
Change of service fee $11.72 $13.48 $14.02 $14.58 $15.16 $15.77 Santa Cruz City School District - Proposed Resource Recovery Collection Rates School Name
Refuse
Container Size
Refuse
Pickups/Week
Current
Rates FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Bay View Elementary 6 yd 2 $991.48 $1,140.21 $1,185.81 $1,233.25 $1,282.58 $1,333.88 Branciforte Elementary 4 yd 2 $746.03 $857.93 $892.25 $927.94 $965.06 $1,003.66 Branciforte Middle School 4 yd 2 $746.03 $857.93 $892.25 $927.94 $965.06 $1,003.66 DeLaveaga Elementary 4 yd 3 $1,071.80 $1,232.57 $1,281.88 $1,333.15 $1,386.48 $1,441.94 Gault Elementary 4 yd 2 $746.03 $857.93 $892.25 $927.94 $965.06 $1,003.66 Harbor High 4 yd 2 $746.03 $857.93 $892.25 $927.94 $965.06 $1,003.66 4 yd 3 $1,071.80 $1,232.57 $1,281.88 $1,333.15 $1,386.48 $1,441.94 4 yd 1 $420.25 $483.29 $502.62 $522.73 $543.64 $565.38
Adult School - La Fonda 4 yd 1 $420.25 $483.29 $502.62 $522.73 $543.64 $565.38 Mission Hill Middle School 4 yd 3 $1,071.80 $1,232.57 $1,281.88 $1,333.15 $1,386.48 $1,441.94 Santa Cruz High 6 yd 3 $1,425.35 $1,639.15 $1,704.72 $1,772.91 $1,843.83 $1,917.58 Football Field 4 yd 1 $420.25 $483.29 $502.62 $522.73 $543.64 $565.38 229 Weeks - Adult Ed 2 -32 gal 1 $48.19 $55.42 $57.64 $59.94 $62.34 $64.84 Warehouse (536 Palm) 2 yd 1 $254.98 $293.23 $304.96 $317.16 $329.85 $343.04 Westlake Elementary 2 yd 1 $254.98 $293.23 $304.96 $317.16 $329.85 $343.04 4 yd 1 $420.25 $483.29 $502.62 $522.73 $543.64 $565.38
4 yd 1 $420.25 $483.29 $502.62 $522.73 $543.64 $565.38

PROPOSED RESOURCE RECOVERY REFUSE COLLECTION RATE INCREASES Monthly rates unless otherwise stated
PROPOSED RESOURCE RECOVERY REFUSE COLLECTION RATE INCREASES (cont’d) Avoid extra fees from overloading and recycle cart contamination. 420-5220 Choose the right size trash cart based on the number of people in your household & your consumption habits.

20.22 City Council

AGENDA REPORT
DATE: 05/31/2023
AGENDA OF: 06/13/2023
DEPARTMENT: Water/Planning and Community Development
SUBJECT: Graham Hill Water Treatment Plant Facility Improvements Project – Update Report / City Council Direction (WT/PL)
RECOMMENDATION: Motion to:
1) Notify the Water and Planning Commissions that the Graham Hill Water Treatment Plant Facility Improvements Project (Project) will be brought to the City Council for final consideration and action on the Environmental Impact Report (EIR), discretionary permits/entitlements, and final project approval per Santa Cruz Municipal Code 24.04.175.2; and 2) Direct staff to coordinate with the Water and Planning Commissions to obtain project recommendations from those commissions on the Project EIR (Water Commission) and Project entitlements (Planning Commission) prior to Council’s final action on the Project.

BACKGROUND: As the City Council is aware, the Water Department (Department) is currently engaged in the design and environmental review of the Graham Hill Water Treatment Plant Facility Improvements Project (Project). The Graham Hill Water Treatment Plant (GHWTP) was originally constructed in 1960 and standards and regulations enacted over the intervening sixty-three years necessitate the Project. The preliminary budget for the Project, including its design, environmental review, permitting, and construction, is approximately $154,000,000. The major components of the Project include the following:
• Improved treatment reliability;
• New and upgraded water treatment and related processes; • New and upgraded buildings; and
• Infrastructure and site improvements.

The GHWTP parcel is within City limits; however, the parcel is non-contiguous to the City and hence constitutes an “island annexation” surrounded by parcels of residential property in the unincorporated County, most of which are within the City’s water service area and whose residents are customers of the City.

An EIR for the Project is currently being prepared in accordance with the California Environmental Quality Act (CEQA). Pursuant to California Government Code Section 53091(e), city and county zoning ordinances do not apply to “the location or construction of facilities for the production, generation, storage, treatment, or transmission of water[.]” This broad language

21.1 clearly applies to facilities such as tanks, pipelines, and water treatment equipment. However, related facilities which serve functions other than those listed above, such as the Project’s proposed administrative and operations buildings remain subject to the City’s zoning requirements. Accordingly, the Project, being located in the City’s Public Facilities zoning district, will require a Design Permit and a Special Use Permit for the administrative and operations buildings while the remainder of the Project is exempt from these permitting requirements.

This means that the Project’s approvals will require, first of all, certification of the Project’s Final EIR, secondly, approval of the Project’s Design Permit and Special Use Permit applications, and thirdly, approval of the remainder of the Project.

DISCUSSION: Per its bylaws, the City’s Water Commission is charged with acting in an advisory capacity to the City Council in all matters pertaining to the City’s water system and that system’s maintenance and management. The Water Commission is also responsible for reviewing and making recommendations to the City Council pertaining to the improvement and extension of the City’s water system, including sources, storage, quality, transmission, and distribution.

In accordance with these duties, the Water Commission has historically reported to the City Council annually to provide a comprehensive recommendation about the Water Department’s operating and capital budgets, including the Department’s multi-year Capital Investment Program that provides details about planned infrastructure projects. Additionally, the Water Commission has worked with Water Department staff to review certain CEQA documents projects and to make recommendations to the Council regarding Council actions on CEQA documents and project approvals.

Per its bylaws, the City’s Planning Commission is authorized to hear and decide matters relating to the application of the Zoning Ordinance. This includes the consideration of Design Permit and Special Use Permit applications and the approval of those permits. Here, as explained above, such permits are only needed for certain components of a larger project.

Per Santa Cruz Municipal Code Section 24.04.175.2, the City Council may, by motion, direct the Planning Commission to make a recommendation to the City Council on permit applications which the Planning Commission is otherwise authorized to rule upon, in which case the Council, rather than the Commission, makes the final permit issuance decision.

Staff recommends that the City Council follow that process here, as staff believes that it is in the public interest that the City Council consider the entire GHWTP Facility Improvements Project, including its permit applications, at a single public hearing and that the City Council serve as the final decision maker for all aspects of the Project. We make this recommendation for the following reasons:
• First, this is a project of major importance and application to the City’s entire Water Service Area.
• Second, two different Commissions will need to consider different aspects of the Project. • Third, the Planning Commission’s decision-making jurisdiction would be limited, and its permit approvals would be appealable to the Council.

21.2 • And finally, the Council will be charged with certification of the Final EIR before approving Project components exempt from the City’s Zoning Ordinance, even in the absence of an appeal from the Planning Commission.

Consequently, it makes sense for the City Council to be the decision maker with respect to the EIR and all aspects of the Project (i.e., both those components requiring permits and those components exempt from the zoning ordinance).

Accordingly, staff recommends that the Council direct staff to coordinate with the Water Commission and Planning Commission so as to obtain Project recommendations from those Commissions with regard to the Project EIR (Water Commission) and Project entitlements (Planning Commission) and have those recommendations simultaneously submitted to the City Council for the Council’s final action on the Project. During the draft EIR public comment period the Planning Commission, like all other agencies and individuals, will have the opportunity to comment on the EIR, which comments will be forwarded to the Council as part of its EIR consideration and action.

It is anticipated that the Project’s draft EIR will be circulated for public/agency comment by Fall 2023, that the necessary Water Commission and Planning Commission hearings will take place by Spring 2024, and that the Project will be presented to the City Council for final action by Summer 2024. It is anticipated that the Project will be constructed and fully operational by 2029.

With respect to the City’s Health in All Policy (HiAP), this item implements a procedural change allowable by Santa Cruz Municipal Code and is consistent with the City’s HiAP decisionmaking framework.

FISCAL IMPACT: None.

Prepared By:

John G. Barisone
Deputy City Attorney
Submitted By:

Rosemary Menard
Water Director
Lee Butler
Director of Planning and
Community Development
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

21.3 City Council

AGENDA REPORT
DATE: 05/23/2023
AGENDA OF: 06/13/2023
DEPARTMENT: Water
SUBJECT: Loch Lomond Reservoir Oxygen Diffuser System – Notice of Completion (WT)
RECOMMENDATION: Motion to:
1) Ratify Change Order No. 1 with Mobley Engineering Inc. (Norris, TN) related to redesign of the system to accommodate differing field conditions and several delays and remobilizations to the project in the amount of $53,521.80; and
2) Accept the work of Mobley Engineering Inc. (Norris,TN) as complete per the agreement and authorizing the filing of a Notice of Completion for the Loch Lomond Reservoir Oxygen Diffuser System and to authorize the Water Director to sign the Notice of Completion as the Owner’s Authorized Agent.

BACKGROUND: The Loch Lomond Reservoir is owned and operated by the City of Santa Cruz Water Department and is the primary source of untreated water storage. The reservoir supplements other water sources during peak demands, prolonged droughts, and during times when other sources are not available; for example, when surface water sources are too turbid for treatment, emergencies, maintenance projects, etc. All these factors make Loch Lomond a critical component of the City’s overall water supply portfolio.

On March 23, 2021, the City Council authorized staff to execute an agreement with Mobley Engineering Inc. (Norris, TN) to construct the Loch Lomond Reservoir Oxygenation System (Project). The Project replaced an existing aeration system that had reached the end of its useful life and allowed the City to address the older system’s lower efficiency compared with currently available systems. The new system provides improved operational flexibility and control, reduced maintenance costs, and significant improvements to water quality.

DISCUSSION: During the course of construction the project faced several challenges including redesign to accommodate differing field conditions, delays and remobilization costs due to drought conditions that resulted in low-water levels, and conflicts with other in-reservoir work associated with the Newell Creek Dam Inlet/Outlet Replacement Project. To avoid additional delay costs and to expedite the ability to use the new aeration system, staff approved additional work resulting in one change order and a net increase of $53,521.80.

22.1 All services required under the contract have now been completed, inspected by Water Department staff and found to be constructed in accordance with the Agreement.

FISCAL IMPACT: The final cost of all work under this contract was $425,983.80. The project was funded by the Water Department Capital Investment Program, Aerator Replacement Project, c701706.

Prepared By:

Taylor Kihoi
Associate Professional
Engineer
Submitted By:

Rosemary Menard
Water Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. CHANGE ORDER NO. 1.PDF

2. NOTICE OF COMPLETION FOR LOCH LOMOND RESERVOIR
OXYGENATION.DOCX

22.2 Contractor Name: Project Name: Subject:

Mobley Engineering
Inc.

Loch Lomond Oxygenation System Redesign and delay/remobilize Contract date: 4/28/21 P.O. #: 91-21120 CWO#: 21-006 C.O. Date: 05/16/23 C.O. #: 1 Description of Changes (Attach all applicable documents, including drawings, plans, or reports):
a) Additional redesign based upon actual conditions
b) Delay project by approximately 1-year and re-deploy for final diffuser installation Contract Revision (Include any applicable Contract Sum or Contract Time adjustment):
a) Lump sum increase of $13,652.80
b) Lump sum increase of $39,869
When approved by the City, Contractor is directed to promptly make the above described changes or to perform the above described work. The Change Order process shall comply with General Conditions Section 11.

Price:

Time (in
days and
hours):

Recommended by:

Taylor Kihoi
Associate Professional Engineer
Date
Base Contract as Bid: $372,462 0 Reviewed by
(when City staff
Base Contract Including All review is required): Previous Change Orders: $372,462 0 NOT USED Date Contract Contingency: $37,246.20 0 Reviewed by:

Contingency Allocated: $0.00 0 Heidi Luckenbach, P.E.

Deputy Director/Engineering Mngr.

Date
Contingency Available: $37,246.20 0 Approved by:

C.O. #1 Increase: $53,521.80
($16,095.60 over
contingency)
0 Rosemary Menard
Water Director
Date
C.O. #1 Decrease: N/A
Authorized by (when Council review is required):

Net Change: $53,521.80 0
Revised Contract Amount: $425,983.80 0 Matt Huffaker, City Manager Date For valuable consideration set forth herein, Contractor hereby releases the City of Santa Cruz from any and all claims for direct, indirect, and impact expenses and adjustments to the Contract Sum as well as additional time impact now existing or which may hereafter arise out of or result from the work or change described herein.

Contractor:

Signature Printed Name, Title Date

CONTRACT CHANGE ORDER
# 1
(EFFECTIVE ONLY WHEN APPROVED BY THE CITY)

WATER DEPARTMENT
212 Locust St., Suite C
Santa Cruz, CA 95060
Phone: 831-420-5200
Fax: 831-420-5201

22.3 230331
Submitted to: Payable to:

Water Engineering Mobley Engineering, Inc.

City of Santa Cruz
212 Locust St. Suite C
Santa Cruz, CA 95060-3813
ATTN: Accounts Payable 831-420-5080 ATTN: Susan Mobley 865-494-0600 Amount
Loch Lomond Hypolimnetic Oxygen Diffuser SystemSystem Design Labor Material − Additional redesign two diffuser layout for actual conditions $13,652.80 $0 $13,652.80 Re-Deploy for Final Diffuser Installation- Mobilization (2023) − Load Pack Ship Tool Crates $6,734.40 $4,200.00 $10,934.40 − Logistics, Site Setup and Cleanup 7,881.60 $ $0.00 $7,881.60 # Crew Qty Rate Labor Material
− Travel Time 6 25 /hrs varied 12,605.00 $ $0.00 $12,605.00 − Per Diem 6 2 /days $200/day $2,400.00
− Airfare/baggage fees 6 $1008/person $6,048.00
$53,521.80
Terms: Net 30 Days

CHANGE ORDER
Mobley Engineering, Inc.
30 Hickory Trail, PO Box 600, Norris, TN 37828-0600 Phone:(865) 494-0600 Cell: (865) 806-8051 email: [email protected] MEI Invoice # Total Amount $53,521.80
Subtotal
Please make checks payable to: Susan R. Mobley, President March 2023 Reschedule
230331
INVOICE #
Project
Loch Lomond HOS
Billing Period
Thru March 31, 2023
P.O. Box 600
Norris, TN 37828-0600
PO Number
91-21120
Date
3/31/2023

22.4 Notice of Completion (Revised Oct 2021)
(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: Loch Lomond Reservoir, Ben Lomond, CA 95005

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: Lomond Reservoir Oxygen Diffuser System, CWO 2021-006.

3. Nature of Work Performed on the Property or Materials Furnished for the City. The Project consisted of work described as: Installation of a hypolimnetic oxygenation system at Loch Lomond Reservoir

4. The general site location description or address (the “Property”) of the public improvement is located at: Loch Lomond Reservoir, 10322 Newell Creek Road, Ben Lomond, CA 95055

5. Name and Address of Contractor. The Contractor on the Project is: Mobley Engineering Inc., P.O. Box 600, Norris TN 37828-0600.

6. Construction Lender. The name and address of the construction lender, if any, is: N/A

7. Date of Completion. The Project on the Property was completed on: April 28, 2023 RECORDED AT THE REQUEST OF:

City of Santa Cruz, Water
Attn: Taylor Kihoi
WHEN RECORDED MAIL TO:

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

22.5 Notice of Completion (Revised Oct 2021)

8. The filing of this Notice of Completion was authorized by the Santa Cruz City Council Minute Order on Tuesday, June 13, 2023
DATE: ___________________
Rosemary Menard
Water Director, City of Santa Cruz

22.6 City Council

AGENDA REPORT
DATE: 05/31/2023
AGENDA OF: 06/13/2023
DEPARTMENT: Water
SUBJECT: Contract Amendment 2024-01 with HDR Inc. for Capital Program Management Services (WT)
RECOMMENDATION: Motion authorizing the City Manager to execute Contract Amendment No. 2024-01 with HDR for Service Order No. 9 in the amount of $6,933,644 in a form to be approved by the City Attorney.

BACKGROUND: The Water Department (Department) is implementing a large and complex capital program to enhance water system resiliency and water supply security. The program directly impacts nearly all aspects of the water system through rehabilitation or replacement of water diversions, pipelines, and water treatment infrastructure. Example projects include:
• Modernization of the Graham Hill Water Treatment Plant (GHWTP) to ensure continued delivery of high-quality drinking water to our customers that meets or exceeds all regulatory standards; a $112 million construction project currently in design. • Newell Creek Pipeline (GHWTP to Felton Booster Pump Station) Replacement project with a cost estimate of $41 million; completing design this calendar year and starting construction in early 2024.
• Ongoing evaluation, selection, and construction of supplemental water supplies as directed by the Securing Our Water Future policy.

In 2017, recognizing that the staffing required for this 10–15-year capital program would exceed the capacity of existing Department staff, a program management model was adopted to successfully deliver the work. Program management is a common model used when staffing needs vary significantly in terms of area(s) of expertise and level of effort as projects develop from planning and design through construction and project closeout. A prevalent contracting model for program management services is the use of a Master Services Agreement (MSA) with annual Service Order contracts. The MSA is used when it is not possible at the outset of a longterm contract to define an exact scope of services needed over a multi-year period, and annual Service Orders are issued through contract amendments to define specific scopes of work, fee estimates, and schedules as the program matures and projects are implemented.

Program management services can vary widely based on the types of projects and the owner’s needs. Typical program services have included staff augmentation to strengthen the depth and breadth of staff resources, development-and-use cost and schedule tracking tools, and adoption of new software applications to facilitate design reviews. Both large and small public entities

23.1 like the City of San Jose and Soquel Creek Water District are using a program management model to implement large-scale infrastructure programs similar to that of the Santa Cruz Water Department.

HDR was selected through a qualifications-based procurement process. In December 2017, City Council authorized a renewable five-year Master Services Agreement (MSA) for program management services with HDR. After five successful years of project implementation, on June 28, 2022, Council authorized an extension of the MSA for an additional five years.

DISCUSSION: Staff recommends approval of Service Order No. 9 (SO 9) which covers all program management activities planned for Fiscal Year 2024 (FY 2024). SO 9 is very detailed in order to direct the work of HDR in an efficient, clear, and transparent manner, and includes clearly identified assumptions and deliverables.

To summarize the work performed in FY 2023 and that planned for in FY 2024 under Service Order 9, staff has worked with HDR to develop an Annual Work Plan. The Annual Work Plan is a summary of the projects, resources, and planned activities over the next year; it also includes a schedule and the program management fee apportioned to each project managed within the program.

Notable HDR Services/staffing resources planned for FY 2024 include:
• Provide a staff person to serve as operations and maintenance (O&M) liaison. This role supports O&M staff and coordinates the planning, design, and execution of projects, with a particular focus on projects at the Graham Hill Water Treatment Plant. • Project and construction management services for the construction of the Concrete Tanks Replacement project.
• Provide project management and technical support for the GHWTP Facility Improvement project.
• Supplement project teams with engineering and right-of-way services on several projects including the Newell Creek Pipeline and Brackney Landslide Risk Reduction projects. • Support development of the Water Supply Augmentation Implementation Plan. • Support ongoing scheduling, cost forecasting, budgeting, and cash flow estimates through project controls support.

The program management services contract is funded through the respective capital projects which are financed by a mixture of grants, pay-as-you-go, and debt.

FISCAL IMPACT: The cost for Service Order No. 9 is $6,933,644. Funds are available in the FY 2024 Water Department’s Capital Investment Program budget.

Prepared By:

Heidi Luckenbach
Deputy Water
Director/Engineering Manager
Submitted By:

Rosemary Menard
Water Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. CONTRACT AMENDMENT NO. 2024-01.PDF

2. FISCAL YEAR 2024 - ANNUAL WORK PLAN.PDF

23.2 City of Santa Cruz Amendment to Master Services Agreement for Program Management Services
June 2023 Page 1
AMENDMENT 2024-01 TO MASTER SERVICES AGREEMENT FOR

PROGRAM MANAGEMENT SERVICES FOR THE

CITY OF SANTA CRUZ WATER DEPARTMENT
THIS AMENDMENT No. 2024-01, dated ____________, (“Service Order No. 9”) TO THE MASTER SERVICES AGREEMENT dated July 5, 2022, is made by and between the City of Santa Cruz (“City”) and HDR Engineering, Inc. (“Consultant”).

RECITALS
WHEREAS, City and Consultant have previously entered into that certain Master Services Agreement (“Agreement”) dated July 5, 2022, which is incorporated by this reference, and WHEREAS, City and Consultant desire to amend the Agreement as specified herein.

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

A. Add The Scope of Work for Service Order No. 9 and amend Exhibit A of the Master Scope of Work as follows:

Add Service Order No. 9 Tasks 2 through 6 per the attached 60-page scope of work referenced as Exhibit A and titled: “Service Order No. 9 – Program Activities (FY 2024)” dated June 5, 2023.

B. Add Fee Schedule for Service Order No. 9 and amend Exhibit B as follows:

Add the attached one-page table referenced as Exhibit B and titled “Estimated Work Effort and Fee Estimate”. This table presents a breakdown of the total fee for all Fiscal Year 2024 Services. The Authorized total fee for Fiscal Year 2024 services is not to exceed $6,933,644.00.

C. Add Work Schedule for Service Order No. 9 and amend Exhibit C as follows:

Notwithstanding these amended terms of the original Agreement by this Amendment No. 2024-01, all other terms and conditions of the original Master Services Agreement and attachments, shall remain in full force and effect. The terms of this Amendment No. 2024-01 shall control if any conflict exists.

Each party acknowledges that it has reviewed Amendment No. 2024-01 and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Amendment No. 2024-01.

Add the attached three-page schedule referenced as Exhibit C titled " Level 3 - z01 Detail Schedule" dated May 4, 2023.

23.3 City of Santa Cruz Amendment to Master Services Agreement for Program Management Services
June 2023 Page 2
The parties may execute this Amendment No. 2024-01 in two or more counterparts, which shall, in the aggregate, be deemed an original but all of which, together, shall constitute one and the same instrument. A scanned, electronic, facsimile or other copy of a party’s signature shall be accepted and valid as an original.

The signatories to this Amendment No. 2024-01 warrant and represent that each is authorized to execute this Amendment No. 2024-01 and that their respective signatures serve to legally obligate their respective representatives, agents, successors and assigns to comply with the provisions of this Amendment No. 2024-01.

IN WITNESS WHEREOF, the City and the Consultant have executed this Amendment No. 2024- 01 effective as of the date shown above.
[SIGNATURES ON FOLLOWING PAGE]

23.4 City of Santa Cruz Amendment to Master Services Agreement for Program Management Services
June 2023 Page 3
Approved As To Form:

By: ______________________________ Date: __________________ City Attorney

CONSULTANT
By: ______________________________ Date: __________________ Printed: __________________________ Title: _________________________

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

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

By: ______________________________ Date: __________________ Heidi Luckenbach, Deputy Water Director / Engineering Manager

23.5 Santa Cruz Program Management – Service Order 9
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SCOPE OF WORK
Service Order 9—Program Activities (FY 2024)
The City of Santa Cruz Water Department (City) has taken a program management approach to implementing its capital improvement program (the Program). It has contracted with HDR, under a Master Services Agreement (MSA), to provide Program management services. This service order falls under the MSA and covers ongoing Program activities and Program deliverables that will occur in FY 2024 (July 1, 2023 - June 30, 2024). Unless specifically noted, it is assumed that the scope and fee refer to work planned for completion in FY 2024.

As with all service orders, this service order follows the structure of the MSA in terms of major tasks:

Task 1—Program Mobilization (complete-not used)
Task 2—Design and Planning Management
Task 3—Program Administration
Task 4—Planning and Preliminary Engineering
Task 5—Construction Management
Task 6—Program Support
The tasks of the MSA were created to allow the Program to transition from the initial stages of defining the Program projects, structure, and procedures, through the planning and design of capital projects and department processes and protocols, and finally to project construction and start-up of almost two dozen capital projects. Each service order utilizes tasks from the MSA as appropriate with the expectation that the planning and administrative tasks will be utilized less over time with design and construction tasks being used more in the future.

Task 1—Program Mobilization (not used)
Task 1 will no longer be used. Program mobilization was completed in June 2018 as part of Service Order 1.

Task 2—Design and Planning Management; Project
Staff Augmentation
This task covers coordination and management of planning and design activities. As an integrated team, HDR and staff work with the project teams to continuously improve, adapt, and consistently apply the established project management tools to capital projects. This includes the planning and design activities of outside consultants, as well as designs prepared by City staff. For the purposes of estimating the labor requirements for this task, HDR assumes it will provide or support design and planning management services as indicated on the Design and Planning Management project activity matrix shown in Table 1.

This task also covers staff augmentation to support project management throughout all project phases.

Exhibit A

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Table 1. Design and Planning Management Key Activities by Project Task and Staff Augmentation No. Project Name
Duration in
FY 2024
(Months) PE/PM Augmentation
Activity A
Delivery
Methods
Support
Activity B
Select Final
Design
Consultants
Activity C
Monitor Project
Progress and Changes
(all project phases)
Activity D
Review Plans and
Specs (#)
Activity D
Review Planning
Reports, Memos
(#)
Activity E
Facilitate Bidding
Process
Activity F
Cost Est.

Support

1.5 Newell Creek Dam Inlet/Outlet
Replacement Project 3
Asst. PM @ 0.1 FTE
PE @ 0.1 FTE X

2.2.1 Newell Creek Pipeline Felton/Graham
Hill 12
Sr. . PM @ 0.30 FTE
Asst. PM @ 0.1FTE
EIT @ 0.20 FTE
X
Bid Documents
(IFC) X

2.2.3 Brackney Landslide Area Pipeline Risk
Reduction 12
Sr PM @ 0.1 FTE
Asst. PM @ 0.15FTE
EIT @ 0.15 FTE
X
Bid Documents
(IFC) X

2.4 Intertie 1: Santa Cruz - Scotts Valley
12 PM @ 0.4 FTE
EIT @ 0.2 FTE X 1 (100%) X X

3.1 Water Supply Augmentation
12 Tech Advisor (Shaw) @ 0.15 FTE
Tech Advisor (Thompson) @ 0.06 FTE
PE @ 0.8 FTE
EIT @ 0.33 FTE
X

3.3.1 ASR Existing Infrastructure 12 Staff support included in 3.1, deliverable reviews only 3 (30, 60, 90%)

4.3 Graham Hill WTP Concrete Tanks
Project 12
PM @0.5 FTE
EIT @ 0.2FTE
O&M Liaison @ 0.48 FTE
Electrical Review @ 0.05 FTE (total)
X

4.3.1 Graham Hill WTP Entrance
Improvements Project: Phase 2 6 none, deliverable reviews only X 1

4.4 Graham Hill WTP Facility Improvement
Plan
12 PM @ 0.5 FTE
Sr. PE @ 0.4 FTE
Asst. PM @ 0.5 FTE
DB Advisor @ 0.05 FTE
Ops Liaison @ 0.15 FTE
Sr. Eng Advisor @ .2 FTE
Electrical Lead @ .02 FTE
Electrical EIT @ .05
X X 2 (90%, 100%) X
X (GMP
negotiations) X

4.7 Beltz 12 Well Ammonia 12 PM @ 0.25 FTE
Tech Advisor @ 0.15 FTE X 1 (P2 100%) X X

4.8 Beltz Water Treatment Plant Upgrades 12 PM @ 0.25 FTE Tech Advisor @ 0.15 FTE X X 2 (30%, 60%) 2 X

6.1 University Tank No. 4
Rehab/Replacement 12
(City PM; City PE Advisor)
PE @ 0.1 FTE
EIT @ 0.1 FTE
Electrical Lead @ 0.025
X 1 (100%) - X
ECIP.
301
Felton Diversion Pipeline Emergency
Repair 8
Sr. PM @ 0.2 FTE
EIT @ 0.2 FTE X
NCIP.
912
Branciforte Creek Restoration 12 PM: 0.25 FTE XStructural (90, 100)
Hydraulics and
Geotech X

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Design and planning management teams may include a package manager, project manager(s), project engineer(s), technical advisors. O&M lead, O&M liaison, and environmental lead, and may be composed of either City or HDR staff. CM support is described in Task 5.

The package manager’s role includes, but is not limited to:
 Oversight of project managers for projects within their package.  Coordination and information transfer across projects within the package, as well as with other packages. Identification and facilitation of resolution on overlaps and interfaces between adjacent projects.

The project manager’s role includes, but is not limited to:
 Coordination and implementation of activities A through H, as applicable to the project type and phase.
 Leadership of project reporting efforts to Program controls and department leadership.

The project engineer’s role is to support the project manager in project activities. Typical tasks may include performing technical analyses, responding to data requests from the design consultant, coordinating and scheduling meetings, and maintaining the project’s document management via SharePoint.

The O&M lead coordinates the necessary and appropriate level of input for the Operations staff on a project. O&M lead roles may include meeting participation, review of deliverables, and coordination with site visits or on-site construction activities.

The environmental lead coordinates the environmental planning and permitting process for a project.

This role is scoped in Task 6.1.

Task 2 consists of the following general and project-specific subtasks:
• Task 2 – 0.0 General Planning and Design Administration • Task 2 – 1.5 Newell Creek Dam Inlet/Outlet Pipeline Replacement • Task 2 – 2.2.1 Newell Creek Pipeline Felton/Graham Hill • Task 2 – 2.2.3 Brackney Landslide Area Pipeline Risk Reduction • Task 2 – 2.4 Intertie 1: Santa Cruz - Scotts Valley
• Task 2 – 2.5 Felton Diversion Pipeline 2023 Emergency Repair • Task 2 – 3.1 Water Supply Augmentation
• Task 2 – 3.3.1 ASR Mid County Existing Infrastructure • Task 2 – 4.3 GHWTP Concrete Tanks Replacement
• Task 2 – 4.3.1 GHWTP Entrance Improvements: Phase 2
• Task 2 – 4.4 GHWTP Facility Improvement Project
• Task 2 – 4.7 Beltz 12 Ammonia Removal
• Task 2 – 4.8 Beltz WTP Upgrades
• Task 2 – 6.1 University Tank No. 4
• Task 2 – B40 Branciforte Creek Restoration
Each project subtask may include the following key activities. The number of projects and expected durations are noted accordingly.

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• Activity A – Support Collaborative Delivery Method Implementation (1 project; 12-month duration)
• Activity B – Select Final Design Consultants (1 project expected during FY 2024) • Activity C – Monitor Project Progress and Changes (11 projects, up to 12-month duration) [Note 5 additional projects will be supported/tracked as part of Task 5 and Task 6.1] • Activity D – Review Reports, Plans and Specifications (14 design submittals and 0 planning deliverables; 12-month duration)
• Activity E– Facilitate Bidding Process (7 projects expected during FY 2024) • Activity F– Cost Estimate Support (up to 4 projects assumed during FY 2024) For the purposes of defining scope and labor requirements for this task, it is assumed that the projects managed are/will be delivered through a design-bid-build delivery method, except for Project 4.4 (GHWTP Facility Improvement Project), which is delivered through a progressive designbuild delivery method.

Task 2 – 0.0 General Program Planning and Design Support Activities This task covers planning and design phase support and management activities that are generally program-wide in nature or are not affiliated with a specific project. When not provided by designated City staff, the scope of the Planning Lead and Design Management Lead positions are included in this task. (During FY24, the Planning Lead (Heidi Luckenbach) and Design Management Lead (Isidro Rivera) roles, as described in the Introduction section of the Program Management Plan, are provided by the City.)

1. HDR will provide general planning and design phase project support, which may include the activities described below:
 Development of (not yet scoped) technical evaluations, such as the assessment of current and future operations costs) project management scopes and levels of effort for projects or tasks not previously defined in the FY workplan (ex. Development and review of Riverbank Filtration evaluation scope and schedule).  Design review and input on projects, including project cost estimate (PCE review support) or schedule support for projects not previously identified or budgeted in Table 1; such as in preparation for deliverable or Stage Gate review.  Engagement in monthly program PM or staff meetings and/or trainings, especially for PM support staff engaged in multiple program projects.
 Cross project engagement and coordination (review meetings, follow up actions, etc.).
 Miscellaneous as-needed tasks on behalf of the City to support planning or design progression of projects (i.e., traffic study, department generator assessment, systems design criteria, decision making support)
 Coordination with O&M liaison
 Other general, non-scoped support tasks, as requested by City staff and approved by City leadership
Up to 24 combined hours per month (~15% FTE) are assumed for these activities, completed by HDR staff not otherwise identified in this task.

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2. O&M Liaison Support: Support the implementation of the Project Delivery Model for various planning, design, and construction projects focusing on the interaction and information transfer between the Operation and Maintenance Group, the Engineering Group and the Design Engineers. One objective of the O&M Liaison is to support the City’s O&M needs during these projects, while streamlining deliverable reviews. The O&M Liaison will apply his/her familiarity with City O&M standards and preferences and prepare and execute deliverable review with O&M staff. Another objective of this role is to facilitate development of operations plans related to planned outages, construction phase operational risk mitigation, start up and commissioning. Where project-specific support needs are defined, time for O&M Liaison support is identified in Table 1. During FY24 it is assumed the O&M Liaison will focus primarily on the Concrete Tanks and FIP projects. This task covers assistance with other projects, which is NOT USED for FY24.

3. Electrical, Instrumentation and Controls (E, I&C) support: At the request of the City and in response to the City being understaffed in the area of E, I&C, HDR will provide general support to the Operations Group during FY24. Support will be provided through monthly onsite visits, as required, and interim follow-on actions support. Activities for E, I&C support may include:
 Support: GE Intellisys Maintenance contract / Arc Flash for main electrical building.  Utility pole relocation reviews.
 Beltz 12 Programming
Brief descriptions of these activities are described below:

GE Intellisys. The City continues to have problems with the Automatic Throwover System (ATS) despite the recent site visits that GE performed. Among these include: 1) continued failure of the system to switch over from utility power to generator power during a power outage and he continued receipt of spurious alarms. Further, it has been discovered that the system’s operating system (OS) is out of date and must be updated. Lastly, coordination with the current Concrete Tanks project have led to delays with the maintenance of the ATS and switchgear maintenance, and ARC Flash update. The City has decided to install a temporary bypass Automatic Transfer Switch until formal servicing of the GE system has been completed. The scope will include continued onsite oversight of the ABB maintenance repair crew, coordination, research, documentation, and training of the City staff.

Total estimated coordination visits: 1
Support: 50 hours over the fiscal year.

Utility Pole Relocation. During project phase engagement with PG&E, it was recommended that the utility pole in front of the GHWTP be moved across the street and that the utility power lines continue to be routed overhead (rather than moved underground) into the plant.

Per PG&E, this new approach should save the City considerable monies. PG&E is currently in design phase. HDR will provide limited design review and coordination with PG&E and local utilities to relocate the utility pole in front of GHWTP, and provide reporting to the City.

Total estimated coordination visits: 1
Support: 32 hours over the fiscal year.

BELTZ 12 Programming (Controls) Evaluation and Update / Startup and Commissioning.

The City has reported that the existing controls for the BELTZ 12 pump station had not been properly tested and documented. The current Beltz 12 Ammonia Project will add additional

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programming. The City has asked HDR to review and document the existing program and to assist in the proper startup and commissioning of this project. Activities include the following:

1. Download the existing program and clean up the leftover remnants.

2. Review the program and integrate it with our new strategy.

3. Provide guidance to the programmer given the current City Standards.

4. Provide startup and commissioning of the existing program.

5. Review programming submittals and final documentation.

Total estimated coordination visits: 2
Assist with deployment of programing, including startup and commissioning and documentation: 60 hours
This E, I&C support role (0.1 FTE for FY2024) is in addition to the technical review of project deliverables that are budgeted within the project specific tasks. The City’s needs may increase upon initiation of the design for the GHWTP FIP, at which time the need for an amendment will be reassessed.

Sub-Task Activities
This section describes each of the key activities that may occur during FY24 for a specific project, as indicated by Table 1. The LOE is dependent upon HDR’s role on each project.

Activity A – Support Best Value Delivery Methods Implementation [None scoped for FY24] Activity B – Select Final Design (or other) Consultants In alignment with City procurement policies and procedures, the Program’s procurement guidelines, and together with the integrated team involved with the specific project, HDR will assist the City in selecting design (or other) consultant(s) by leading or assisting with the following, as appropriate per project:

1. Conduct a meeting with City staff to confirm the recommended process for selecting the final design consultants.

2. Prepare draft RFP(s) for retaining final design consultants for each solicitation and submit to the City for their review and approval.

3. Conduct pre-proposal meetings for each proposed final design contract. Record attendance and questions, and issue answers to questions and modifications to the selection process if appropriate in addendum format.

4. Receive consultant proposals in accordance with the City procedures. Review the proposals in accordance with the approved selection process. Meet with City staff to provide input and receive comments on the proposals. Summarize in writing the City’s recommendations on what firms should be selected for interview. Review of up to six proposals is assumed per RFP.

5. Conduct interviews, as appropriate, with up to three shortlisted firms in accordance with the authorized selection process. Prepare written comments on the firm interviews to support the City’s decision process on firm to be awarded the design consultant contract.

6. Using the City-designated contract terms and conditions, negotiate the scope, level of effort, and schedule for each final design contract with the selected firm. Prepare cost analysis

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metrics for evaluation of levels of effort associated with various professional services contracts. Prepare independent cost of services estimates, if needed. Prepare backup materials for City Council action and other procurement requirements and document selection processes. Coordinate discussions with the City and consultant’s legal counsel, if required. Prepare final contract for signature by the City and the final design consultant.

Deliverables: None
Where HDR is PM on projects:

1. City meeting agenda and minutes to confirm final design consultant lists, selection process, schedule, and draft RFP development.

2. Draft and final design RFP(s).

3. Written recommendation for selection of final design consultant.

4. City Council agenda package (attachments to staff reports) for final design contracts.

Assumptions:

1. Budget for independent cost of services estimate(s) is not included in this fee. If determined to be needed, this will be added via contract change amendment.

2. HDR will support the City in preparation of the City Council agenda package for submitting each final design contract to the City Council for their review and approval. It is assumed that HDR will not attend City Council meetings in FY 2024.

3. LOE to support this activity is included in the staff augmentation FTE in Table 1.

Activity C – Manage Project Progress and Changes
HDR, where augmenting City staff as project manager, will monitor the progress of the planning, design, and construction phases, and also manage the process for making changes to those scoped efforts. Where augmenting City staff as assistant project manager or project engineer, HDR will support the project manager. Where HDR is not augmenting staff at the project level, general support and oversight will be provided via the Design and Planning management Task 2-0. Project management tasks include:

1. As part of the project kick-off meeting with the consultants, project manager will provide information (as applicable) regarding the program or design guidelines, standard details, design review process, quality control procedures and quality assurance procedures.

2. Attend progress meetings lead by the consultants on a bi-weekly basis. These meetings will cover items such as progress to date, major issues, contract compliance, deliverables, QA/QC, and impacted agencies and utilities.

3. Lead planning and design coordination and deliverable review meetings and workshops.

4. Address questions and issues from the planning and design consultants. Interface with City staff and receive feedback when necessary. Issues and their status will be discussed at the bi-weekly team meeting.

5. Implement project-specific change management, including documentation of change log items with associated analysis to support approvals for proposed changes during a project that impact cost or schedule.

6. Work with package manager, as applicable, to identify and facilitate resolution on overlaps and interfaces between adjacent projects.

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7. Review the monthly project progress report and invoice submitted by the final design consultant. Provide invoice recommendations to City staff for their final action.

8. Provide the status of project activities, deliverables, and cost accruals to Program controls and Program Design and Planning Manager for reporting.

9. Participate in meetings with regulatory agencies, as needed, regarding planning or design activities and document reviews and approvals.

10. Manage preparation of permit submittal packages by final designers to meet regulatory requirements. Monitor permit submittals and coordinate modifications, as required and requested by the permit lead. Coordinate CEQA, as applicable.

11. Manage survey, geotechnical, and right-of-way (ROW) efforts.

12. Prepare or direct the modification of Division 0 and Division 1 specification templates.

13. Lead the implementation of construction management strategy and guidelines on the project, including constructability review during design.

14. Procure and manage technical advisors for project, as applicable.

15. Identify, together with City staff, which bid packages require contractor pre-qualification.

16. Develop, administer, and maintain contractor pre-qualification criteria and solicitation documents. Manage and coordinate the pre-qualifications process.

17. Manage (or support City management of) construction phase services, including CM (see task 5) and engineering services during construction.

Deliverables:

1. Meeting agendas, presentations, and minutes from project coordination and review meetings.

2. Change log entries, as required.

3. Monthly project status reports.

4. Permit applications (prepared by others).

Assumptions:

1. The labor hours in the budget table are based on HDR’s understanding of the LOE for the listed projects as per Table 1.

2. Two bid packages are assumed to require pre-qualification within this Service Order (Project

2.2.1 – Newell Creek Pipeline (Felton/Graham Hill) and Project 2.2.3 – Brackney Landslide Area Pipeline Risk Reduction project).

Activity D – Technical Review of Deliverables, Plans and Specifications HDR will augment City staff to support review of planning studies, design submittals, and design and constructability review of the final designs, including facility design elements, equipment vendor selection, configuration, and process control. In doing so, HDR will supplement the City’s technical resources and confirm that Program design guidelines and standards are integrated. Specifically, HDR will:

1. As needed and requested by the project manager, HDR will conduct a review of project’s plans and specifications at the 30%, 60%, 90% and 100% completion point. The detailed check of each design submittal will remain the design consultant’s responsibility and will be completed prior to providing the submittal to the Program team for review.

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2. As needed and requested by the project manager, HDR will conduct a review and comment on the cost estimate and schedule provided in the 30%, 60%, 90% and 100% submittals.

3. Provide a constructability review, likely at the 60% submittal.

4. Where HDR is project manager, HDR will document and track the action taken by designer on items noted during each review.

5. Operability reviews will be provided by the City’s O&M staff. HDR, where project manager, will conduct workshops on 60%, and 90% final design consultant submittals for City O&M staff to provide comments.

6. As project manager, HDR will conduct a “plan in hand” field walk and create a checklist with O&M lead at 60% deliverable, to verify adequacy and completeness of design documents.

7. As project manager, HDR will work with the final designer to identify long lead procurement items, and develop an approach to address those issues.

Deliverables:

1. Review comments at 30%, 60%, 90% and 100% final design completion, including constructability review at 60%

2. Agenda and minutes of the meetings for City O&M staff reviews at 60% and 90% final design consultant submittals

3. Spreadsheet to document and track design review comments and actions taken.

Assumptions:

1. Design reviews are assumed to include up to three HDR technical reviewers (i.e. electrical, mechanical, structural) to support City review on each project deliverable.

Activity E – Facilitate Bidding Process
During the construction bidding process, the project manager will perform the services below. HDR’s LOE associated with this scope applies to projects where HDR is the project manager (to lead these activities) and to support these activities where HDR is support staff augmentation.

1. Prepare for and participate in pre-bid or pre-proposal conferences in support of procurement.

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

3. Assist with the procurement of long-lead time and pre-purchased equipment and materials, as needed.

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

5. Monitor the distribution of construction bid packages (plans and specifications) to prospective bidders.

6. Participate in pre-bid meetings and possible site visits for each of the construction packages.

7. Manage and facilitate pre-bid geotechnical condition demonstration activities.

8. Oversee the addenda development process. Up to two addenda are assumed per bid package.

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

10. Develop and maintain an overall comprehensive bid tab for the Program, including unit price information, lump sum, and other bid cost data items and reference to appropriate construction cost index.

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11. Work with City staff to execute construction contracts and obtain performance bonds and insurance documents.

12. Coordinate with final designers and construction contractors to confirm that they obtain required construction permits prior to proceeding with construction.

Deliverables:

1. Agenda and minutes from pre-bid meetings.

2. Contractor pre-qualification solicitation documents.

3. Bid tabulations.

Assumptions:

1. The projects that will undergo all or part of the bidding phase in FY24 include: Project 2.2.1 – Newell Creek Pipeline (Felton/Graham Hill), led by City PM with assistance from HDR, and Project 2.2.3 – Brackney Landslide Area Pipeline Risk Reduction project), led by City PM with assistance from HDR and project 2.4 Intertie 1-Santa Cruz-Scotts Valley.

Activity F –Cost Estimating Support [Select projects for FY24] HDR will provide construction cost estimating review services, as requested, during the project design phase. Review of the design engineer’s cost estimate is intended to provide validation and alignment with program processes.

HDR will provide summary comments to the project manager and, as requested by the PM, will meet with the design engineer to discuss and resolve the comments. The PM will provide process mechanical equipment and specialty Sub equipment quotes as discussed.

Assumptions:

1. Detailed take offs will not be performed.

2. One meeting with the City (and designer, as desired) to review the estimate review comments (by phone).

3. A placeholder budget of up to 10 hours is allocated for each estimate review. Budget will be refined and confirmed upon selection of project and prior to initiating this task.

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Task 3—Program Administration
Task 3 covers the ongoing implementation of the Program structures, policies, procedures and systems that were developed initially during Program mobilization and have in many cases continued to evolve and improve. Over the course of the Program management services contract, the implementation of program administration activities (including program risk management, safety, quality, project delivery, and schedule and budget tracking) described within this section will be completed in close association with the City’s Program leadership team. This task consists of the following subtasks, each over a 12-month duration:

Task 3.1 – General Program Administration
Task 3.2 – Risk Management
Task 3.3 – Document Management
Task 3.4 – Training and Workforce Development
Task 3.5 – Quality Assurance Implementation
Task 3.6 – Program Controls
Task 3.6.1 – Program Controls Management
Task 3.6.2 – Program Schedule
Task 3.6.3 – Program Cost / Estimating,
Task 3.6.4 – Program Change Management
Task 3.7 – Miscellaneous Support for Water Finance / Accounting Department Task 3.8 – Design Drawing Review Software
Task 3.1 – General Program Administration
HDR will complete the following general Program administration tasks:

1. Update Program workflow policies and procedures, as determined needed by the integrated City/HDR Program team, and implement following submission to and approval by City.

Incorporate these updates in the PgMP.

2. Manage Program resources and make available technical, management, and support resources to meet the goals and objectives of the City. Implement staff approval policy and maintain approved staff matrix list and resume library. Revisit project and program staffing assumptions and future needs on twice annual (or more often as needed) basis.

3. Attend Water Commission, City Council, and other meetings as requested. Support preparation for presentations given at these meetings, as requested by Program Director.

4. Conduct bi-weekly Program review meetings with Program Director and monthly progress meetings with Program Executive Team.

5. Work with the Program Director to maintain the overall Program management organization chart and related roles and responsibilities.

6. Prepare an Annual Work Plan to provide the City staff with information needed for the City’s annual budgeting cycle and to support council review and approval of next year’s Program management service order.

7. Manage the program management contract, including preparation of monthly invoices and associated invoice activity progress reports, maintain the program management contract change log to track and document interim scope changes and subsequent contract amendments, review and update of HDR contract schedule, and development of annual work order including scope of work and associated budget.

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8. Implement the Program Safety, Health, & Environmental (SHE) guidelines by performing the following:
a. Summarize and consolidate safety reports from Contractors, including Occupational Safety and Health Administration (OSHA) required reporting or status, and submit with monthly safety status report.
b. For individual significant safety items, communicate with City and program staff by implementing the Incident Communication Plan per the PgMP. c. Coordinate with the City’s safety consultant for review of Contractor’s site-specific safety plans
d. Train new Program team members on SHE guideline requirements. Communicate safety status to wider team through periodic SHE guideline training refreshers. e. Coordinate with the City’s safety consultant regarding information to report out through the Program. Coordinate with HDR corporate safety to confirm alignment of program safety guidelines with HDR policy and implement internal HDR safety policies.
f. Coordinate with City’s water department safety committee specific to program SHE guidelines.

For FY 24, it is assumed that City staff will perform items a b, and c above.

The key Program roles supported in this task are described below. The hours associated with the major tasks for each role are also shown.

1. Program Manager: Overall leadership of the Program activities and Program leadership team, leads reporting to executive staff, leads the ongoing development and implementation of the PgMP (approximately 0.54 FTE).
a. Manage program resources, including:
i. Leading annual service order kick off.
ii. Leading monthly project managers meeting.
iii. Meeting regularly with HDR program core leadership to assess and respond to resource needs.
iv. Meeting monthly with wider HDR team and individually with local core HDR team.
v. Developing and managing hiring requisitions in response to Program needs. vi. Coordination of technical expertise to support the Program. vii. Coordination of resource needs and availability with Program Director and other City leadership.
viii. Lead staff approval process.
ix. Develop and maintain Program staff plan.
x. Estimated 25 hours per month.
b. Track project and program progress and completion: 0.5 - 1 hour per project per month (10 hours per month).
c. Facilitate continued development and progression of the implementation of the overall risk analysis and management strategy; ( 4 hours per month). d. Support general communication about, preparation for, and participate in stage gate meetings: Up to 3 hours for each stage gate meeting (4 hours per month on average).

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e. Review of Program costs, schedule, change management log, quality review reports, support development of monthly Program report: (8 hours per month on average). f. Identify, coordinate, and schedule trainings (up to 2 hours per month). g. Review meetings with Program Director, Program Executive Team, and City’s program management consultant, including associated action items (10 hours per month).
h. Update Program Management policies and procedures (4 hours per month). i. Manage Program Management contract, include contract change log and amendments, quarterly internal program reviews, program management invoices and associated status reports (14 hours per month).

2. Assistant Program Manager: Supports Program Manager in execution of their role and supports Program project managers, technical staff, and administrative staff in accessing and using program resources. (approximately 0.6 FTE)
a. Manage program resources, including:
i. Assist development of Annual Work Plan.
ii. Supporting annual service order kick off.
iii. Assist in planning and recording monthly project managers meeting. iv. Meeting regularly with HDR program core leadership to assess and respond to resource needs.
v. Meeting monthly with wider HDR team.
vi. Support staff approval process.
vii. Facilitate HDR Program staff onboarding and provide ongoing support to in use of program tools and policies.
viii. Items i. through vii are estimated 36 hours per month. b. Track project and program progress and completion: half hour per project per month (10 hours per month).
c. Identify, coordinate, and schedule trainings (up to 4 hours per month). d. Update Program Management policies and procedures: 8hours per month. e. Manage Program Management contract (28 hours per month). i. Review monthly contract invoices and monthly contract status reports. ii. Support HDR task managers to track task costs, progress, and scope completion.
iii. Manage HDR contract change log.

3. Construction Management (CM) Lead: Maintains CM strategy document; coordinates program CM activities, supports City staff where City is CM and HDR staff where HDR is CM. CM Lead scope and LOE is described in Task 5, CM.

4. Program Administrative Coordinator: Provides Program administrative support. The hours associated with this task (General Program Administration) are estimated at 42 hours per month (0.27 FTE). Typical tasks include:
a. Support staff approval process and management of HDR staff matrix b. Support monthly HDR invoice and monthly status reporting c. Coordinate HDR and City staff calendars to schedule meetings, trainings, and workshops
d. Contract management support, including subcontracts and purchase orders e. Coordination of internal Program quarterly reviews
f. General administration support
g. Prepare and support the development of the Program Monthly Report

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5. Project Controller/Accountant: Provides financial and accounting management for HDR contract including developing monthly invoices, financial review of HDR contract budget and amendments, and assists in contract and task budget management (26 hours per month) Deliverables:

1. Draft and final Service Order scope, fee, and Annual Work Plan

2. Monthly Program Progress Report

3. Monthly invoice(s), one per service order, including summary table, invoice activity status report, earned value report.

4. Contract change log updates, contract amendments for new scope or reallocation of existing scope, as applicable.

5. Staff approval requests, as applicable.

6. Updates to working Program tracking tools, including staff planning spreadsheets, and program improvement log.

7. PgMP updates, as applicable.

Assumptions:

1. Contractor safety plan submittals for construction projects during the FY24 will be reviewed by the City’s third-party safety consultant.

2. Contractor safety data is submitted to the Program by the CM for each respective project.

Task 3.2 – Risk Management
HDR will administer and manage the Risk Management Plan (RMP), and support associated activities as follows:

1. Develop, maintain, and improve processes, tools, and templates, including updating the PgMP document as appropriate.

2. Review and manage Program risk register (quarterly). Coordinate with risk item owners to support the development and implementation of mitigation activities.

3. Bi-annual risk review meetings. Coordinate and facilitate the risk review meetings for the purpose of communicating progress, challenges, and successful mitigations associated with the Program risk register (and establish new risks, as applicable).

4. Facilitate risk planning discussions, including assessment and use of management reserves.

Incorporate identified risks and mitigations into cost and schedule reporting.

5. Coordinate with the PMs to conduct a risk assessment workshop and perform qualitative and/or quantitative risk analysis with risk specialist for a TBD project before construction contract award.

6. Support project managers in their implementation of risk management at the project level, including progression of project risk register documentation, and associated mitigation activities.

7. Support the program director on project and program risk contingency management.

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Deliverables:

1. Quarterly (or as needed) Program risk register updates

2. Bi-annual Risk review meeting materials, meeting minutes

3. Draft and Final risk workshop report (one project and one Program-wide) Assumptions:

1. One quantitative risk workshop for the Program and one quantitative risk workshop for projects (GHWTP FIP Upgrades) will be performed in this Service Order 9, assuming up to 156 total hours with input from the risk specialist, Sr. Economist, and risk workshop assistant.

2. Up to three qualitative facilitated project risk workshops will be performed in this Service Order 9.

Task 3.3 – Document Management
HDR will implement the Document Management Plan, per the PgMP. Specific activities within this task and estimated combined hours for the document management team include:

1. Provide general management and over-sight of the Document Management and SharePoint processes and support tasks (7 hours per month).

2. Provide ongoing document management support (32 hours per month). a. Monitoring placement of documents and use of proper naming conventions and folder structures.
b. Provide communication and ongoing training to support team members on accessing and utilizing document storage.
c. Work with City staff to maintain alignment of P drive and SharePoint document and folder structures.
d. Identify areas for improvement, develop options, and facilitate decision making regarding long-term storage and repository of project files. e. Execute ad-hoc support tasks and special projects as requested by leadership and team members. If not achievable within assumed budget, develop scope and LOE for approval in advance of initiating such work.
f. Maintain and support the Photo Management workflow.
g. Support Stage Gate preparation as requested.
h. Maintain project files for reference, retrieval, and storage in electronic format.

Maintain hard copies for those documents that the City deems necessary, according to the PgMP; contractual-related or contract change documents are to be finalized in hard copy format.

3. Provide basic SharePoint administration support (12 hours per month). a. Maintain and update user profile information.
b. Provide ongoing training and support for team members. c. Perform basic technical support, including tech support requests, management of site settings, editing of program pages, photos, schedules, and safety graphics. d. Create and manage SharePoint Libraries and folder structures. e. Act as liaison for team members and IT support.

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4. Provide ongoing SharePoint maintenance, configuration and technical support throughout the year to for system functionality and end-user experience, including the following (34 hours per month):
a. Perform detailed technical support including troubleshooting, trainings, setup new projects, create workflows, respond to team member tech support requests. b. Perform system updates and resolve issues with Microsoft. c. Activate and deactivate user accounts. Manage and update individual groups, including access and permissions.
d. Provide ongoing necessary tasks during the year such as creating new lists, adding libraries and landing pages, and editing metadata.

5. Support continuous improvements, such as adding security groups, dashboards, workflows, closeout repository, metadata, and long-term storage decisions as feasible within the budget established for items 3-4 above. Where improvements would require exceeding the approved budget, a scope and LOE will be developed for approval by Program Director in advance of performing work (40 hours per month):

Deliverables:

1. Document management processes and tools updated, as appropriate.

2. Updates to SharePoint processes and tools, as appropriate.

Task 3.4 –Training / Workforce Development
Continue to support the Water Department’s workforce development objectives and efforts by providing direct training on project management and Program management processes to City staff through day-to-day interactions with the Program Management team, short monthly refresher trainings, one-hour topical seminars, extended workshops, and ongoing refinement of project management tools. Update the workforce development TM in the PgMP, as required, to reflect changes and input from the Program leadership team. Coordinate and plan for training topics with Program leadership.

Deliverables:

1. Presentation materials for all training sessions and seminars.

2. Updates to the PgMP, as appropriate.

Assumptions:

1. Ten monthly ten minute “refresher” trainings during the PM monthly meeting at three hours each.

2. Six one hour-long trainings at 8 hours each. Assume half of these are performed by core program staff and half are performed by others travelling to Santa Cruz.

3. One half-day training at 24 hours each for planning, execution, and trainer travel.

Task 3.5 – Quality Management
HDR will administer and manage the Quality Management Plan, per the PgMP. The primary objective of the Quality Management Plan is to assist project teams in the compliance with Program

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and Project standards. As such, the management of quality covers the four general categories, below:
 Process Quality: Covers the implementation of the processes and procedures established for the Program.
 Project Quality Plan: Covers the preparation and implementation of a Project Quality Plan by each project team, primarily by the consultants preparing deliverables.  Business Delivery: Covers how well each project is delivering to business metrics—cost, schedule, change and risk management.
 Technical Delivery: Covers the overall technical quality of the work being done, primarily associated with deliverables.

HDR’s scope for this task includes:

1. Develop, maintain, and improve processes, tools, and templates, including updating the PgMP document, as appropriate.

2. On a monthly basis, perform a quality check at the Program and Project levels, identifying areas of compliance as well as areas for improvement, and report the results in the Program quality report card and the Program Monthly Report. Example areas include: monthly project reporting, risk registers, safety, and Program tools, such as project quality checklist and project quality plans. Summarize in the monthly Quality Report Card and program overview table.

3. Quality Management Reviews are performed and reported once every four months via a report delivered to the Program Director. The report covers four general categories including:

Process Quality, Project Quality Plan, Business Delivery, and Technical Delivery.

4. Review and evaluate Key Performance Indicators (KPIs) for continuing development and refinement to support Program tracking. For FY24, it is assumed that monthly project overview KPI for cost, schedule, and quality will be continued within the monthly program report. No additional KPIs will be developed.

Deliverables:

1. Updates to the PgMP, and other processes and tools, as appropriate

2. Monthly quality reports, including Project Overview and Quality Report Card

3. Tri-annual review reports
Task 3.6 – Program Controls
This task includes services required to implement the Program Controls Plan, per the PgMP.

Task 3.6.1 – Program General Management
The Program Controls Lead oversees Program administration activities, including risk, document management, safety, quality, administration of the Program SharePoint site, and controls, including change management. The Controls Lead has scope in several Program Administration subtasks.

Scope and effort associated with Tasks 3.2 through 3.5 and 3.7 is included in each respective task.

The hours associated with this task (Program General Management) are estimated at 22 hours per month (0.15 FTE):

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1. Participate in various Program meetings, including executive, leadership and PM meetings, as well as other miscellaneous meetings and workshops (14 hours per month).

2. Support Program Director and Program Manager as requested (6 hours per month).

3. Participate in and provide training for various Program processes and tools (2 hours per month, plus additional hours in Task 3.4 Training).

Task 3.6.2 – Program Schedule
Program schedule will continue to be developed and maintained in P6, by the designated P6 scheduler. Schedules will be updated with Project Managers during and as follow up to the recurring individual monthly project update meetings and will be posted monthly to the SharePoint site for review and use by the Program team.

1. General oversight and schedule support (12 hours per month).

2. Attending monthly PM Update meetings, updating schedules, performing variance analysis and generating various reports (28 hours per month).

3. The following six types of schedules are anticipated for posting monthly during FY2024. a. Level 1 Single Line schedule
i. Consolidated high level, showing ‘key’ WBS phase durations b. Level 3 Activity Detail
i. Expanded to show all detailed activities, this is the lowest level schedule c. Level 3 60 Day Look Ahead
i. A layout showing detailed activities that have been finished in the previous 30 days, activities in progress, and activities highlighted starting within the next 60 days, and anticipated activities during the current fiscal year. d. Level 3 Activity Detail by PM
i. Expanded to show all detailed activities, sorted by Project Manager e. Level 3 City Council and Water Commission Meetings
f. Level 3 z01 Detail Schedule
i. Detailed schedule of program administrative activities In addition, at the request of Program team members, the P6 scheduler will support producing specific schedule reports (such as variance reports), filtered schedules, and custom layouts. HDR will perform schedule re-baselining per the PgMP, in conjunction with change management, and in coordination with the Program Director.

Deliverables:

1. Updated monthly schedules, as indicated above.

2. Updated scheduling processes, tools as part of PgMP updates, as appropriate.

Assumptions:

1. This task assumes no hours for reviewing construction Contractors’ schedules or construction progress reporting. Where needed, effort for construction schedule review is included in Task 5: CM.

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Task 3.6.3 – Program Cost / Estimating
HDR will perform estimating, cost collection, analysis, forecasting and reporting of Program and Project costs. Specific activities include:
 Update the PgMP documents, and associated processes and templates, as appropriate. (Estimated 2 hours per month).
 Prepare for and address action items from the monthly PM Update meetings. Review and evaluate Program and project cost, schedule, risk and change management status. Present for review and approval by the City as part of the Program Monthly Report (Estimated 24 hours per month).
 Support Project Managers in the updates of their Project Cost Estimate (PCE). Review and update project budgets, forecasts, and perform variance analysis (8 hours per month).  In coordination with the City Finance team, collect Program and Project actual costs on a monthly basis. Update CASPER (the Program cost management system), with Program level data, including program administration, escalation, contingencies, management reserves, and time-phasing based on the current schedule (24 hours per month). Develop and distribute regular cost performance reports, including cost and cash flows, thru a variety of tables, dashboards, graphs, and reports with appropriate levels of detail for various audiences. Also provide various ad-hoc reports as requested (8 hours per month).  Maintain CASPER, the Cost Management System (CMS), an Excel and database tool, which is the Program’s primary tool for managing costs. (Estimated 16 hours per month).  Support Program Director on general cost and schedule-related items, including the approach, development, monitoring, and use of Program and project contingencies, and management reserves (Estimated 8 hours per month).

Deliverables:

1. Monthly Dashboards posted to SharePoint, and a Cost Performance Report, (included in Program Monthly Report), various cost reports as requested.

2. Updated cost and estimating processes, tools as part of PgMP updates, as appropriate.

Assumptions:

1. Katy Fitzgerald (City) will provide cost controls support at up to 12 hours per month.

Task 3.6.4 –Program Change Management
Program Controls will provide ongoing support to the Change Management process, according to the PgMP. The Change Management process facilitates the identification, tracking, and resolution of changes that impact project or Program cost or schedules (8 hours per month). Specific activities include:
 Maintain and improve processes, tools, and templates related to change management, including updating the PgMP document, as appropriate. Communicate updates to the Program team in a timely manner.
 Coordinate with project managers to efficiently prepare and submit appropriate documentation of proposed changes for recommendation and approval by Program leadership.

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 Support the administration and maintenance of the Program Change Log that resides on SharePoint.

Deliverables:

1. Updates to Section 2 (Change Management) of the PgMP, as appropriate.

Assumptions:

1. Katy Fitzgerald (City) will provide change support at up to 16 hours per month.

Task 3.7 – Water Finance / Accounting Support to the Water Department As requested by the City, HDR will provide miscellaneous support in the areas of finance and accounting to assist the Water Department in capital planning, annual budgeting, alternative funding or similar tasks. This scope is intended to reflect work that is beyond the scope of Task 3.6 which may include, but is not limited to, the following:
 Additional reporting for Program CIP and Non-Program CIP projects  Support for development of annual budgets, additional cost/cash flows and forecasting alternatives, coordination with the City’s pro forma consultant  Support associated with project funding options
Assumptions:

1. An allowance of 12 hours per month is allocated for this task.

Task 3.8 – Design Drawing Review Software
The City Water Department continues to implement Bluebeam as a collaborative design drawing review tool that enables multiple reviewers to edit and comment on a common document. The Department will need to continue to provide training, enhance the use of Bluebeam and support the review work processes as more Program Projects use the tool. This task provides additional support for the Bluebeam collaborative review processes. The anticipated work includes:
 Prepare one Program Refresher (4 hours)
 Project support for the different projects moving forward/going into design. Staff will engage HDR as the first resource, and City Subject Matter Expert will provide additional support as needed (26 hours for 6 projects: 2.4, 3.3.1, 4.4, 4.7, 4.8 and 6.1).  Update training documentation – This will include modification of existing training materials previously implemented with incorporation of lessons learned. (3 hours) Deliverables:

1. Updated Program Documents (3 hours)
Assumptions:

1. Assume six projects will use Bluebeam for design drawing review during the fiscal year.

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Task 4—Planning and Preliminary Engineering
In general, Task 4 covers activities critical to the planning of Program projects. This task involves planning and preliminary engineering efforts by HDR that would be performed during this Service Order. It includes the following subtasks:

Task 4.1 – Planning Efforts
Task 4.1.6 – Distribution System Water Quality Improvements. [Carryover from SO7] Task 4.1.18 – Felton Booster Pump Station Arc Flash Study Task 4.1.19 – GHWTP SCADA Radio System Replacement
Task 4.2 – Preliminary Engineering Efforts [Not used].

Task 4.3 – Asset Management
Task 4.3.6 – Asset On-boarding Support
Task 4.3.7 – Computerized Maintenance Management System Implementation Support [Carryover from SO8]
Task 4.4 – Main Replacement Program Support [Completed] Task 4.5 – GHWTP CMMS Implementation Planning
Task 4.6 – [Not Used]
Task 4.7 – Beltz 12 Well Ammonia Removal
Task 4.1 – Planning Efforts
Task 4.1.1 – Task 4.1.5 Completed under previous Service Orders Task 4.1.6 – Distribution System Water Quality
The PgM will utilize the City’s hydraulic water model to assess improvements needed in the outer reaches of the water system where water age can be excessive and requires constant maintenance to flush the system.

Issues anticipated to be addressed include:

1. System requirements
 Storage capacity
 Reliable pumping capacity (accounts for redundant pumps and backup power)  Fire flow reserve (FFR)
 Current average day demand (ADD)
 Current maximum day demand (MDD)

2. Long distribution mains with low demand.

3. Fire storage significantly larger than daily demands of the area.

4. Ability to implement effective system flushing due to staff availability or pipe diameter (water volumes).

A planning-level study to determine feasible projects will be prepared. Alternatives will be evaluated to compare the advantages, disadvantages, and order of magnitude costs to provide recommendations and a prioritized list of projects for City implementation. Assistance with the Solicitation Package for the Request for Proposal will also be provided by the PgM.

Three areas have been identified for evaluation:

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1. DeLaveaga-Santa Cruz Gardens.

2. Pasatiempo-Rollingwoods system.

3. Carbonera.

Anticipated alternatives in each area are summarized below. A preliminary solution to water quality issues will be generated to a 10% design level.

1. DeLaveaga – SC Gardens Zones Water Quality Improvement - 10% Design Alternative Development. Investigation/Modelling of the following Project Alternatives:
 Reduced storage and fire storage only in SC Gardens Tanks  Deliveries to Soquel Creek Water District
 ASR Injection Wells
 Add power to SC Gardens tank site for mixing and aeration

2. Water Quality Improvement - 10% Design Alternative Development PasatiempoRollingwoods Zones. Investigation/Modelling of the following Project Alternatives:
 Improvements to the Pasatiempo Tank
o Reduced online storage
o Use of Aerators
o PRV at Eastridge Way and elimination of Carbonera Tank  Rollingwoods Pressure Zone Improvements
o Resizing pump station
o Convert zone to hydropneumatics
o Deliveries to Scotts Valley Water District
o Water exchange Scotts Valley Interie
o Deliveries to San Lorenzo Valley Water District
o ASR Injection Wells
o Recirculation/bleed down station connection to raw water at Newell Creek o Rollingwoods tank site improvements
 Aerators
 Tank Recirculation pump
o Bleed-down-recirculation station to relocated Newell Creek raw water transmission main (current recirculation bleed down effectiveness is limited by recirculation back to Rollingwoods Pump Station
o Expand Rollingwoods Tank zone into the Hillsdale-Oak Knoll and/or Myers Dr.

Neighborhoods
o New pressure reducing station at zone valve between Pasatiempo and Carbonera

3. Carbonera Pressure Zone Water Quality Improvement - 10% Design Alternative Development. Investigation/Modelling of the following Project Alternatives  Carbonera Zone reconfiguration
o Removal of Carbonera Tank
o Isolate Carbonera Tank either seasonally or semi-permanently and make Carbonera a sub-zone of Pasatiempo
o Interconnection of R-12 and Eastridge Way/Highway 17 zone valve

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o Reconfiguration such that Tanner Heights line is fed from Pasatiempo Zone through R-12
o Reconfiguration of Carbonera pump station in basement of GHWTP o Operate Carbonera pump station in basement of GHWTP continuously to server fresh water to Carbonera (fill Tank with low TOC, isolate and manage WQ due to low turnover) Zone backed up by Pasatiempo
o Consideration of long dead-end water quality issues at Branciforte Drive.  Reinstall fire booster pump station along B40 Dr
 Reinstall water storage tank and/or hydropneumatic system at end of B40 Dr
 Drill new production well at end of B40 Dr
Alternatives for each of the studied areas will includes figures appropriate for a 10% concept-level planning to clarify information provided to the City and will also include preliminary concept-level order of magnitude costs to determine feasibility and to be used to prioritize future projects.

Meetings:

1. As needed with onsite PgM staff and by phone with offsite PgM staff.

Deliverables:

1. Draft and Final Distribution System Water Quality Improvements TM (emailed PDF file)

2. Draft and Final Design Services Solicitation Package Assumptions:

1. Any condition assessment, pilot test, survey, geotechnical investigation, CEQA analysis, or other testing needed will be covered under a separate contract.

2. HDR will use the model received from the City for the analysis

3. HDR’s scope does not include model updates, or model calibration or validation

4. The model received from the City is adequate for water age analysis in that it is calibrated, and properly represents the network configuration and controls

5. The scope of the modeling analysis is limited to water age analysis. Other water quality analyses such as chlorine residual or tracer study analyses are not included in this scope of work.

6. Modeling analyses to address water age in the system may include evaluation of storage and pressure zone configuration.

7. Fire protection requirements and/or land use information will be made available to HDR in electronic format.

8. Maximum day and peak hour demand information for each pressure zone will be provided to HDR for use in the analysis.

City Responsibilities:

1. Provide model access.

2. Identification of environmental documents, permits, and processes needed for selected alternative.

3. Provide project description of CEQA process.

4. Confirm ROW needs.

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5. Provide background data.

6. Identify any changes/modifications to as-builts.

Task 4.1.7 – Task 4.1.17 Completed under previous Service Orders Task 4.1.18 – Felton Booster Pump Station ARC Flash Study HDR will conduct a short circuit, coordination, and arc flash study for the City of Santa Cruz Felton Booster Station, which will meet the requirements of the “NFPA 70E Handbook for Electrical Safety in the Workplace”. Specifically, it will cover NFPA 70E, Article 130 which includes Section 130.5, “Arc Flash Risk Assessment” and the incident energy analysis method captured in Section 130.5(G).

General Assumptions:

1. All deliverables to be provided electronically via email unless otherwise noted.

2. City review cycles are limited to 2-weeks.

3. Project will be completed within 8 weeks from notice to proceed.

Task 4.1.18.1 - Project Management and Quality Assurance/Quality Control (QA/QC) Subtask 1.1 - Project Management
Objective: This task will capture general task management efforts including the kick-off meeting, monthly invoicing, and progress reports.

Approach: General “best practices” for project management will be applied. Weekly status meetings will include key stakeholders (as defined during the kick-off meeting).

Deliverables:

1. Kick-off Meeting Agenda and Minutes

2. Weekly status meeting notes

3. Invoices and Progress Reports
Assumptions:

1. Kick-off meeting to be completed via telephone call and will last no more than 1 hour.

2. Weekly status meetings will be completed via telephone call and will last no more than 30 minutes.

3. Weekly status meetings will be informal and will be followed up with emailed notes for review.

City Responsibilities:

1. Timely review and payment of invoices.

2. Select representative(s) to participate in weekly status meetings.

Subtask 1.2 – QA/QC Program
HDR will institute and maintain a QA/QC program for the work performed on this project. Senior technical staff, not involved in the project, will perform internal QA/QC upon completion of draft and final report before they are submitted to the City.

Deliverables: QA/QC plan to be included in the project management plan.

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Santa Cruz City CouncilJune 13, 2023

Santa Cruz City Council
June 13, 2023