City of Santa Cruz
809 Center Street
Santa Cruz, California 95060
MINUTES OF A CITY COUNCIL MEETING
June 13, 2023
10:00 AM
Mayor Keeley opened the City Council Closed Session at 10:01 a.m. in a public meeting via Zoom and in Council Chambers, for the purpose of announcing the agenda, and receiving public testimony.
Roll Call
Present: Councilmembers Newsome, Brown, Watkins, Brunner; Vice Mayor Golder; Mayor Keeley.
Absent: Councilmember Kalantari-Johnson.
Staff: City Manager M. Huffaker, Assistant City Manager L. Schmidt, Finance Director E. Cabell, Director of Information Technology K. Morgan (via Zoom), City Attorney T. Condotti, Deputy City Clerk Administrator J.
Wood, City Clerk Administrator B. Bush.
Public Comment
Mayor Keeley opened the public comment period at 10:02 a.m. The following people spoke:
Jane Doyle spoke regarding item 1.
Reggie Meisler spoke regarding item 1.
Mayor Keeley closed the public comment period at 10:08 a.m., at which time the meeting was closed to the public and Council adjourned to the Courtyard Conference Room.
June 13, 2023 CITY COUNCIL MINUTES 6494
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
Council received a status report from the City Negotiator and gave direction.
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
Council received a status report, took up under agenda item 11, and no reportable action was taken.
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)
Council received a status report, and took no reportable action.
June 13, 2023 CITY COUNCIL MINUTES 6495
Closed Session (continued)
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 (6th Appellate District Court of Appeals 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)
Council received a status report, gave direction, and took no reportable action on items 1, 2, and 5.
Council received a status report and authorized the City Attorney to file crosscomplaints related to cases 3 and 4. The details and particulars will be available to members of the public by request once the complaints are filed.
June 13, 2023 CITY COUNCIL MINUTES 6496
City of Santa Cruz
809 Center Street
Santa Cruz, California 95060
MINUTES OF A CITY COUNCIL MEETING
June 13, 2023
12:15 PM
Call to Order – Mayor Keeley called the meeting to order at 12:17 p.m. in Council Chambers.
Roll Call
Present: Councilmembers Newsome, Brown, Watkins, Brunner; Vice Mayor Golder; Mayor Keeley.
Absent: Councilmember Kalantari-Johnson.
Staff: City Manager M. Huffaker, Assistant City Manager L. Schmidt, City Attorney T. Condotti, Finance Director E. Cabell, Director of Public Works N. Nguyen, Director of Parks and Recreation T. Elliot, Director of Economic Development and Housing B. Lipscomb, Chief of Fire R. Oatey, Director of Planning and Community Development L. Butler, Water Director R. Menard, Director of Information Technology K. Morgan, Police Lieutenant G. Crofts, Chief People Officer S. De Leon, Parks Superintendent T. Beck, Operations Manager G. Sanchez, Deputy City Clerk Administrator J. Wood, City Clerk Administrator B. Bush.
Presiding Officer's Announcements
Statements of Disqualification – Councilmember Brunner announced she is recusing herself from items 24 and 28 as these items have an impact on her employer, the Downtown Association.
Additions and Deletions – None.
City Attorney Report on Closed Session – See pages 6494—6495 for the report.
June 13, 2023 CITY COUNCIL MINUTES 6497
Presentations
5. Capital Investment Program Presentation
Finance Director E. Cabell introduced the Capital Improvement Program’s proposed budget for FY 2023 and called on the following individuals to give presentations on their department’s Capital Investment and respond to Councilmember questions: Director of Public Works N. Nguyen, Director of Parks and Recreation T. Elliot, Director of Economic Development and Housing B. Lipscomb, and Fire Chief R. Oatey.
Parks Superintendent T. Beck responded to Councilmember questions.
Operations Manager G. Sanchez responded to Councilmember questions.
6. Presentation from the Council Ad Hoc Budget and Revenue Committee on Results of Housing Measure Feasibility Work
Mayor Keeley, and Councilmembers Brown and Newsome gave a presentation.
Mayor Keeley opened the public comment period. The following people spoke:
Unidentified person
Unidentified person
Garrett
Jim Weller
Jane Barr
Don Lane
Unidentified person
Mayor Keeley closed the public comment period.
Council Meeting Calendar
7. The City Council reviewed and did not revise the meeting calendar attached to the agenda.
June 13, 2023 CITY COUNCIL MINUTES 6498
Consent Agenda
Mayor Keeley opened the public comment period. The following person spoke:
Garrett spoke regarding items 14 and 20.
Mayor Keeley closed the public comment period.
Director of Public Works N. Nguyen responded to Councilmember Brown’s question regarding item 18.
MOTION: Councilmember Watkins moved, seconded by Vice Mayor Golder, to approve the Consent Agenda.
ACTION: The motion carried with the following vote.
AYES: Councilmembers Newsome, Brown, Watkins, Brunner; Vice Mayor Golder; Mayor Keeley.
NOES: None.
ABSENT: Councilmember Kalantari-Johnson.
DISQUALIFIED: None.
8. Minutes of the May 23, 2023 City Council Meeting (CC) Motion carried to approve as submitted.
9. Minutes of the May 24, 2023 City Council Special Meeting (CC) Motion carried to approve as submitted.
10. 333 Locust Street Acquisition Agreement and Budget Adjustment (ED) Motion carried to:
Adopt Resolution No. NS-30,152 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 Adopt Resolution No. NS-30,153 amending the FY 2023 budget in the amount of $1,718,000 to fund the acquisition of the property at 333 Locust Street.
June 13, 2023 CITY COUNCIL MINUTES 6499
Consent Agenda (continued)
11. Liability Claims Filed Against the City of Santa Cruz (FN) Motion carried 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 No. NS-30,154 was adopted 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 No. NS-30,155 was adopted amending the Classification and Compensation Plan and the FY 2023 Personnel Complement by approving a classification change in the Police Department.
14. Suspension of the Natural Gas Prohibition Ordinance (PL) Resolution No. NS-30,156 was adopted 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 carried to:
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
Adopt Resolution No. NS-30,157 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).
June 13, 2023 CITY COUNCIL MINUTES 6500
Consent Agenda (continued)
16. FY 2024 Funding for Senate Bill 1 Road Maintenance and Rehabilitation Account (RMRA) (PW)
Resolution No. NS-30,158 was adopted 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 carried 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 carried 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.
19. Rising Prices for Tires and Repair Costs for City Vehicles and Equipment – Budget Adjustment (PW)
Resolution No. NS-30,159 was adopted 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 carried 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.
June 13, 2023 CITY COUNCIL MINUTES 6501
Consent Agenda (continued)
21. Graham Hill Water Treatment Plant Facility Improvements Project – Update Report / City Council Direction (WT/PL)
Motion carried to:
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 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.
22. Loch Lomond Reservoir Oxygen Diffuser System – Notice of Completion (WT) Motion carried to:
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
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 carried 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
June 13, 2023 CITY COUNCIL MINUTES 6502
Consent Public Hearings
Mayor Keeley separated the Consent Public Hearing items at the request of Councilmember Brunner.
At this time, Councilmember Brunner left the dais.
24. Downtown Association: Parking and Business Improvement Area Assessments for FY 2024 (ED)
Mayor Keeley opened the public comment period. There were no speakers.
Mayor Keeley closed the public comment period.
MOTION: Councilmember Newsome moved, seconded by Councilmember Brown, to adopt Resolution No. NS-30,160 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.
ACTION: The motion carried with the following vote.
AYES: Councilmembers Newsome, Brown, Watkins; Vice Mayor Golder; Mayor Keeley.
NOES: None.
ABSENT: Councilmember Kalantari-Johnson.
DISQUALIFIED: Councilmember Brunner.
June 13, 2023 CITY COUNCIL MINUTES 6503
At this time Councilmember Brunner returned to the dais.
Consent Public Hearings (continued)
25. Expansion of Technology Surcharge (PL)
Mayor Keeley opened the public comment period. The following person spoke:
Garrett
Mayor Keeley closed the public comment period.
MOTION: Councilmember Watkins moved, seconded by Councilmember Brown, to:
Adopt Resolution No. NS-30,161 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
Direct staff to take related implementation actions.
ACTION: The motion carried with the following vote.
AYES: Councilmembers Newsome, Brown, Watkins, Brunner; Vice Mayor Golder; Mayor Keeley.
NOES: None.
ABSENT: Councilmember Kalantari-Johnson.
DISQUALIFIED: None.
June 13, 2023 CITY COUNCIL MINUTES 6504
Public Hearings
26. Tree Appeal 233 Union Street (PR)
Urban Forester L Keedy spoke and responded to Councilmember questions.
Appellant Elise Casby and Marv Lewis spoke regarding this item and responded to Councilmember questions.
Danny Alvarez, Realtor with Maverick Group Real Estate, and Sarah Moore, coowner of 233 Union Street, spoke on behalf of the applicant regarding this item and responded to Councilmember questions.
Mayor Keeley opened the public comment period. The following people spoke.
Gillian Greensite
George Berkeley
Mayor Keeley closed the public comment period.
Appellant Elise Casby provided a rebuttal.
MOTION: Vice Mayor Golder moved, seconded by Councilmember Newsome, to adopt Resolution No. NS-30,162 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.
ACTION: The motion carried with the following vote.
AYES: Councilmembers Newsome, Watkins, Brunner; Vice Mayor Golder; Mayor Keeley.
NOES: Councilmember Brown.
ABSENT: Councilmember Kalantari-Johnson.
DISQUALIFIED: None.
June 13, 2023 CITY COUNCIL MINUTES 6505
Public Hearings (continued)
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) Director of Planning and Community Development L. Butler gave a presentation and responded to Councilmember questions.
Mayor Keeley opened the public comment period. The following people spoke.
Joy Schendledecker
Reggie
Robert Norse
Mayor Keeley closed the public comment period.
MOTION: Councilmember Brunner moved, seconded by Councilmember Watkins, to introduce for publication Ordinance No. 2023-08 amending select portions of Chapters 10.40 and Section 10.41.060 of the Santa Cruz Municipal Code, pertaining to the parking of oversized vehicles.
ACTION: The motion carried with the following vote.
AYES: Councilmembers Newsome, Watkins, Brunner; Vice Mayor Golder; Mayor Keeley.
NOES: Councilmember Brown.
ABSENT: Councilmember Kalantari-Johnson.
DISQUALIFIED: None.
June 13, 2023 CITY COUNCIL MINUTES 6506
At this time, Councilmember Brunner left the dais.
General Business
28. Cooperative Retail Management Business Real Property Improvement District Assessments for FY 2024 (ED)
Economic Development and Housing Manager R. Unitt gave a presentation.
Mayor Keeley opened the public comment period. There were no speakers.
Mayor Keeley closed the public comment period.
MOTION: Councilmember Brown moved, seconded by Vice Mayor Golder, to:
Approve the FY 2023 Annual Report and FY 2024 Plan prepared by the Downtown Management Corporation;
Adopt Resolution No. NS-30,163 as a 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
Introduce for publication Ordinance No. 2023-09 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 FY 2024.
ACTION: The motion carried with the following vote.
AYES: Councilmembers Newsome, Brown, Watkins; Vice Mayor Golder; Mayor Keeley.
NOES: None.
ABSENT: Councilmember Kalantari-Johnson.
DISQUALIFIED: Councilmember Brunner.
Council took a break at 3:58 p.m. and returned at 4:33 p.m.
June 13, 2023 CITY COUNCIL MINUTES 6507
General Business (continued)
29. Fiscal Year 2024 Proposed Budget
Finance Director E. Cabell spoke.
Mayor Keeley opened the public comment period. The following person spoke.
Doug Engfer
Mayor Keeley closed the public comment period.
29.1. Fiscal Year 2024 Proposed Budget Adoption (FN)
MOTION: Councilmember Brown moved, seconded by Councilmember Brunner, to:
Adopt Resolution No. NS-30,164 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
Accept the Water Commission’s recommendations regarding the Water Department’s FY 2024 Operating and Capital Investment Program (CIP).
ACTION: The motion carried with the following vote.
AYES: Councilmembers Newsome, Brown, Watkins, Brunner; Vice Mayor Golder; Mayor Keeley.
NOES: None.
ABSENT: Councilmember Kalantari-Johnson.
DISQUALIFIED: None.
June 13, 2023 CITY COUNCIL MINUTES 6508
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)
MOTION: Councilmember Brown moved, seconded by Councilmember Brunner, to adopt Resolution No. NS-30,165 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.
ACTION: The motion carried with the following vote.
AYES: Councilmembers Newsome, Brown, Watkins, Brunner; Vice Mayor Golder; Mayor Keeley.
NOES: None.
ABSENT: Councilmember Kalantari-Johnson.
DISQUALIFIED: None.
Oral Communications Announcement - The Mayor provided a brief announcement about Oral Communications.
Oral Communications
At 4:45 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.
Sean Williams spoke regarding his composting business.
At 4:48 p.m. Mayor Keeley closed Oral Communications.
Adjournment – Vice Mayor Golder moved, seconded by Councilmember Watkins, to adjourn. By consensus City Council adjourned at 4:48 p.m.
RESPECTFULLY SUBMITTED: ss/Julia Wood, Deputy City Clerk Administrator, ATTEST: ss/Bonnie Bush, City Clerk Administrator, APPROVED: ss/Fred Keeley, Mayor.