Agenda — Santa Cruz City Council, October 24, 2023

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

CITY COUNCIL AGENDA
Regular Meeting - October 24, 2023
1:40 P.M. CLOSED SESSION, ZOOM/COURTYARD CONFERENCE ROOM 1:45 P.M. ORAL COMMUNICATIONS, CONSENT, CONSENT PUBLIC HEARINGS, AND

GENERAL BUSINESS, 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
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 Press *9 on your phone to “raise your hand” when the Mayor calls for public comment.  It will be your turn to speak when the Mayor calls on you. Press *6 to unmute yourself. The timer will then be set.

Correspondence to be included in the agenda packet must be received by 5:00 pm on Monday, October 23rd
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, October 22nd by emailing the Mayor and the City Clerk. Approval will be confirmed via email.
[email protected] [email protected]
October 24, 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 Cal-Relay system number: 1-800-735-2922.

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

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

Agenda Materials Submitted after Publication of the Agenda Packet: Pursuant to Government Code §54957.5, public records related to an open session agenda item submitted after distribution of the agenda packet are available at the same time they are distributed or made available to the legislative body on the City’s website at: www.cityofsantacruz.com/government/city-council-meetings and are also available for public inspection at the Office of the City Clerk, 809 Center Street Room 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. 1:40 PM
Closed Session

1. Conference With Legal Counsel – Liability Claims (Government Code §54956.95)
Claimant: Kathleen Gould
Claim against the City of Santa Cruz
October 24, 2023 City Council 3
City Council
1:45 PM
Call to Order
Roll Call
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
Presiding Officer's Announcements
Statements of Disqualification
Additions and Deletions
City Attorney Report on Closed Session
Council Meeting Calendar

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

Consent Agenda

3. Minutes of the October 10, 2023 City Council Meeting (CC) Motion to approve as submitted.

October 24, 2023 City Council 4
Consent Agenda (continued)

4. Resolution Urging California Public Employees’ Retirement System (CalPERS) to Invest in Sustainable Energy and Divest from Fossil Fuels and Support Climate-Safe California Goals (CN)
Motion to:
1) Adopt a resolution urging CalPERS to invest in sustainable energy and divest from fossil fuels, and
2) Encourage State and Federal legislation that supports Climate-Safe California goals.

5. Appointments to Housing for Health Partnership Board (CN) Motion to appoint Mayor Keeley and Councilmember Kalantari-Johnson to the Santa Cruz County Housing for Health Partnership (H4HP) Policy Board.

6. Impact Report on Effect of Housing for People Ballot Initiative (CN) Motion to direct the preparation of an impact report on the effect of the proposed Housing for People initiative which would amend the City’s Municipal Code to: (1) prohibit the City Council from amending the City’s General Plan or Zoning Ordinance in a way that increases allowable height limits or floor area ratios without a prior vote of the people; and (2) increases the City’s inclusionary housing requirements to at least 25% for developments with 30 or more units.

7. USDA, Forest Service Type 6 Fire Truck (Engine) – Congressionally Designated Project - Grant Acceptance, Authorization and Appropriation (FD)
Motion to:
1) Adopt a resolution authorizing the City Manager to apply for, accept, and appropriate funds from the USDA Forest Service Grant to purchase a Type 6 Fire Engine and additional equipment; and
2) Adopt a resolution amending the FY 2024 budget to appropriate a $400,000 grant from USDA Forest Service to purchase a Type 6 Fire Engine and additional equipment.

October 24, 2023 City Council 5
Consent Agenda (continued)

8. Liability Claim Filed Against the City of Santa Cruz (FN) Motion to reject the liability claim of Kathleen Gould, based on staff recommendation.

9. Award Contract for Investment Management Services (FN) Motion to:
1) Award a contract for Investment Management Services to PFM Asset Management LLC, San Francisco, California for fiscal years ending June 30, 2023, 2024, 2025, 2026, and 2027 with five option years; and 2) Authorize the City Manager to execute an agreement in a form approved by the City Attorney with PFM Asset Management LLC for Investment Management Services.

10. Year-End Budget Adjustment for FY 2023 (FN)
Resolution amending the FY 2023 budget where annual revenues and expenditures need adjustments in various funds.

11. Resolution Amending the City of Santa Cruz Personnel Complement and Classification and Compensation Plan for the City Manager’s Office, Information Technology, Parks and Recreation, Public Works, and Economic Development and Housing – Budget Adjustment (HR/FN) Motion to:
1) Adopt a resolution amending the Classification and Compensation Plans and the Fiscal Year 2024 Budget Personnel Complement for Information Technology, the City Manager’s Office, Parks and Recreation, Public Works, and Economic Development and Housing; and 2) Adopt a resolution amending the FY 2024 budget in the amount of $636,046 to adjust personnel budgets for Information Technology, City Manager’s Office, Parks and Recreation, Public Works, and Economic Development and Housing.

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Consent Agenda (continued)

12. Award Agreement for Fee Study for the Departments of Public Works, Parks and Recreation, Economic Development and Housing, Fire, Finance, City Manager’s Office, and Planning and Community Development (PL)
Motion to:
1) Award agreement for citywide Fee Study to MGT of America Consulting, LLC (MGT) in the amount of $139,874; and
2) Authorize the City Manager, or designee, to execute the agreement and any amendments within the approved operating budget and authorized amendments budget, in a form approved by the City Attorney.

13. Recycling Center Storm Water Quality Improvements (c402111) – Award Contract (PW)
Motion to accept the bid of Clear Water Services (Rodeo, CA) for providing storm water treatment system rental at the Resource Recovery Facility Recycling Center in the amount of $129,204.00. The City Manager is hereby authorized and directed to execute the contract in a form approved by the City Attorney. The Director of Public Works is authorized to execute change orders within the approved project budget.

14. Encroachment Permit – Installation of Retaining Wall and Stairs (PW) Resolution granting an encroachment permit to Christen & W.F. Docker to install a retaining wall and stairs in the public right-of-way at 215 4th Avenue.

15. Encroachment Permit – Installation ADA Access Ramp/Sidewalk (PW) Resolution granting an encroachment permit to Lissner Properties, Inc. to install an ADA access ramp/sidewalk in the public right-of-way at 320 Cedar Street (Birch Alley).

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Consent Agenda (continued)

16. Front-Spruce-Pacific 54-Inch Sewer Rehabilitation (c401606) – Approval of Plans and Specifications, Authorization to Advertise and Award Contract, California Environmental Quality Act Exemption, and Budget Adjustment (PW)
Motion to:
1) Approve the plans and specifications for the Front-Spruce-Pacific 54- Inch Sewer Rehabilitation (c401606), authorize staff to advertise for bids, award the contract. The City Manager is hereby authorized and directed to execute the contract, in a form approved by the City Attorney, and as authorized by Resolution No. NS-27,563. The Director of Public Works is authorized to execute change orders within the approved project budget;
2) Find the project exempt under the California Environmental Quality Act (CEQA); and
3) Adopt a resolution amending the FY 2024 budget and appropriating $8,100,000 from supporting project, c402204 (City WWTF Headworks Replacement), to fund c401606 (Front-Spruce-Pacific 54-Inch Sewer Rehabilitation).

17. Front-Spruce-Pacific 54-Inch Sewer Rehabilitation Project and Wastewater Treatment Facility Headworks Rehabilitation Project – Loan Application and Acceptance (c401606 and c402204) (PW)
Resolution authorizing the Public Works Department to apply for and accept a loan from the California Infrastructure and Economic Development for the Front-Spruce-Pacific 54-Inch Sewer Rehabilitation and Wastewater Treatment Facility Headworks Rehabilitation Projects (c401606 and c402204) in the amount of $33,500,000 and authorizing the City Manager to execute an agreement in a form approved by the City Attorney with California Infrastructure and Economic Development Bank for said loan and its repayment.

October 24, 2023 City Council 8
Consent Agenda (continued)

18. Route 1/9 Intersection Improvement Project (c400805) - Notice of Completion (PW)
Motion to accept the work of Granite Rock, Inc. (Watsonville, CA) as completed per the plans and specifications and authorize the filing of the Notice of Completion for Route 1/9 Intersection Improvement Project (c400805).

19. Branciforte Branch Public Library Renovation (c351801) – Notice of Completion (PW)
Motion to accept the work of JPB Designs, Inc. (Orangevale, CA) as completed per plans and specifications and authorizing the filing of a Notice of Completion for the Branciforte Branch Public Library Renovation Project (c351801).

20. Retaining Wall Reconstruction Project -141 Archer Drive (g402402) (PW) Motion to:
1) Adopt a resolution approving the Application for Federal Assistance SF-424 and Advance of Funds/Reimbursement Agreement for Emergency Watershed Protection Program and authorizing the City Manager to execute said agreements and any amendments in a form acceptable to the City Attorney; and
2) Adopt a resolution amending the FY 2024 budget and appropriating $414,000 for the Retaining Wall Reconstruction Project - 141 Archer Drive (g402402).

21. Award Agreement for Fisheries Biology Support from Hagar Environmental Science (WT)
Motion authorizing the City Manager to execute an agreement in a form to be approved by the City Attorney with Hagar Environmental Science for ongoing fisheries biology support of the City of Santa Cruz's Habitat Conservation Plan development and Incidental Take Permitting, and to authorize the Water Director to execute up to four annual agreement renewals.

End Consent Agenda
October 24, 2023 City Council 9
Consent Public Hearings

22. Tax Equity and Fiscal Responsibility Act (TEFRA) Hearing for Approval of the California Municipal Finance Authority for Issuance of Tax-Exempt Bonds for the Benefit of the Sycamore Street Commons and La Playa Residential Affordable Housing Projects (ED)
Motion to:
1) Conduct the public hearing under the requirements of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the Internal Revenue Code of 1986, as amended (the “Code”); and
2) Adopt a resolution to approve the issuance of Tax-Exempt Revenue Bonds by the California Municipal Finance Authority (“CMFA”) for the benefit of Mercy Housing California 72, L.P., a California limited partnership, or another entity to be established by Mercy Housing California or an affiliate thereof (collectively, the “Borrower”), in an amount not to exceed thirty million dollars ($30,000,000) to provide financing for Sycamore Street Commons and La Playa Residential (the “Project”), such adoption is solely for the purposes of satisfying the requirements of TEFRA, the Code, and the California Government Code Section 6500.

23. Mission Gardens Apartments Amendment to HOME Investment Partnership Regulatory Agreement and Assumption Agreements (ED) Motion to adopt a resolution to:
1) Authorize the City Manager to execute any and all amendments necessary, in a form to be approved by the City Attorney, to change the Managing Agent from John Stewart Company to Rose Community Management LLC including but not limited to Exhibit D of the HOME Investment Partnership Regulatory Agreement, upon close of escrow should Rose Affordable Housing Preservation Fund V Mission Gardens L.P. take ownership of the property located at 90 Grandview Street; and 2) Authorize the City Manager to execute any and all agreements necessary, in a form to be approved by the City Attorney, for Rose Affordable Housing Preservation Fund V Mission Gardens, L.P. to assume all existing affordability requirements currently recorded against 90 Grandview Street and extend the City Redevelopment Agency affordability requirements in perpetuity.

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Consent Public Hearings (continued)

24. Housing and Urban Development (HUD) Pathways to Removing Obstacles to Housing Grant Program: Authorization for Application, Acceptance, and Appropriation of Grant Funds for Preserving and Promoting Housing Affordability and Climate Resilience in Front Line Communities of Santa Cruz, CA (CM)
Resolution authorizing the City Manager to apply for, accept, and appropriate funds from the Housing and Urban Development (HUD) Pathways to Removing Obstacles to Housing Grant Program to carry out a project entitled “Preserving and Promoting Housing Affordability and Climate Resilience in Front Line Communities of Santa Cruz, CA.”

25. A23-0001: Downtown Plan Amendments Related to Removing Public Hearing Requirements for Day Care and Supportive Housing, Consistent with State Law; Expanding Hotel, Residential, and Recreational Use Allowances; Revising Additional Height Criteria; Adding Language to Encourage Activated Roof Top Amenities; and Amending Landscape Requirements to Allow More Flexibility with Landscaping and Tree Selection (PL)
Motion to:
1) Adopt a resolution approving the amendments to the Downtown Plan and the Local Coastal Program to clarify and update various sections, remove obsolete sections and references, streamline application processes, and bring the Downtown Plan into conformity with State law, finding that the public necessity, and the general community welfare, and good zoning practice shall be served and furthered with the adoption of the Downtown Plan amendments; and that the proposed amendments are in general conformance with the principles, policies, and land use designation set forth in the General Plan, Local Coastal Program, and the Downtown Plan. The amendments include but are not limited to removing public hearing requirements for day care and supportive housing, consistent with state law; expanding hotel, residential, and recreational use allowances; revising additional height criteria; adding language to encourage activated roof top amenities; and amending landscape requirements to allow more flexibility with landscaping and tree selection. An Addendum to the 2017 Downtown Plan Amendments Program Environmental Impact Report (EIR) has been prepared pursuant to California Environmental Quality Act (CEQA) Guidelines sections 15162 and 15164.

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Consent Public Hearings (continued)

General Business

26. METRO Downtown Transit Center Interim Operations Plan - Approval of Plans and Specifications and Related Actions (ED)
Motion to:
1) Adopt a resolution approving plans and specifications for the METRO Downtown Transit Interim Operations Plan (Plan) pursuant to Government Code Section 830.6 (design immunity), and authorizing removal of unlawfully parked vehicles when the Plan is implemented; 2) Direct staff to review the potential impacts of the Plan on parking revenue with the Downtown Commission;
3) Direct staff to return to the Transportation and Public Works Commission with an update on the conditions of the Plan after it has been implemented;
4) Authorize the City Manager, or designee, to negotiate and enter into a commercial lease with the Santa Cruz Metropolitan Transportation District (METRO) for a storefront facility at 603 and 605 Front Street for a METRO ticket sales/call center function, in a form approved by the City Attorney;
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General Business (continued)

26. METRO Downtown Transit Center Interim Operations Plan - Approval of Plans and Specifications and Related Actions (ED) (continues) Motion (continued)
5) Adopt a resolution amending the FY 2024 budget to allocate $500,000 of METRO funding to the Pacific Station North Project for the METRO Interim Operations Plan; and
6) Authorize the City Manager to enter into a Memorandum of Understanding with METRO and For the Future Housing/EDEN that defines roles and financing commitments for the Plan.

Adjournment

INFORMATION ITEMS PREVIOUSLY DISTRIBUTED TO CITY COUNCILMEMBERS None issued.

MAYOR'S PROCLAMATIONS
ADDENDUM TO CITY COUNCIL AGENDA – OCTOBER 24, 2023

27. Proclaiming Saturday, October 7, 2023 as “German-American Heritage Day.”

28. Proclaiming October 14, 2023 as “Rainbow Theater Day” and encouraging all citizens to join in celebrating its thirty years of service and dedication to our diverse communities.

29. Proclaiming October 15, 2023 as “Yoga for All Movement Day” and encouraging all citizens to join in expressing heartfelt appreciation for its dedication to helping individuals in the Santa Cruz community and beyond.

October 24, 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 Water Commission One opening – Vice Mayor Golder’s
nomination
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.

Santa Cruz City CouncilOctober 24, 2023

Santa Cruz City Council
October 24, 2023