Agenda — Santa Cruz City Council, December 12, 2023

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

CITY COUNCIL AGENDA
Regular Meeting - December 12, 2023
10:30 A.M. CLOSED SESSION, ZOOM/COURTYARD CONFERENCE ROOM 12:45 P.M. ORAL COMMUNICATIONS, CONSENT, CONSENT PUBLIC HEARINGS, PUBLIC

HEARINGS, AND GENERAL BUSINESS, ZOOM/COUNCIL CHAMBERS
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Correspondence to be included in the agenda packet must be received by 5:00 pm on Monday, December 11th
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, December 10th by emailing the Mayor and the City Clerk.

Approval will be confirmed via email.
[email protected] [email protected]
December 12, 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. 10:30 AM
Closed Session

1. Conference With Legal Counsel – Liability Claims (Government Code §54956.95)
1) Claimant: Jenai Marie Herod
2) Claimant: Elaine Vierra
Claims against the City of Santa Cruz
December 12, 2023 City Council 3
Closed Session (continued)

2. Real Property Negotiations (Government Code §54956.8) 1) Property: 113 Lincoln Street
APN: 005-141-11
Owner: Christophe Bellito
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Christophe Bellito Under Negotiation: Price, terms of payment, or both
2) Property: 119-123 Locust Street
APN: 005-043-02
Owner: David Posner
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and David Posner Under Negotiation: Price, terms of payment, or both
3) Property: 1016 Cedar Street
APN: 005-042-36
Owner: City of Santa Cruz
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Ryan Stirm
Under Negotiation: Price, terms of payment, or both
4) Property: 302 and 326 Front Street
APNs: 005-151-48 and 005-151-35
Owner: City of Santa Cruz
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and SCFS Venture LLC.

Under Negotiation: Price, terms of payment, or both
5) Property: No site address, Ben Lomond
APN: 072-174-02
Owner: Helena Chen
City Negotiator: Rosemary Menard
Negotiating Parties: City of Santa Cruz and Helena Chen Under Negotiation: Price, terms of payment, or both
6) Property: 321 Brackney Road, Ben Lomond
APN: 072-231-12
Owner: Julie K. Daniels
City Negotiator: Rosemary Menard
Negotiating Parties: City of Santa Cruz and Julie K. Daniels Under Negotiation: Price, terms of payment, or both
December 12, 2023 City Council 4
Closed Session (continued)

2. Real Property Negotiations (Government Code §54956.8) (continued) 7) Property: No Site Address, Ben Lomond
APN: 072-152-07
Owner: Hai and Nga Nau
City Negotiator: Rosemary Menard
Negotiating Parties: City of Santa Cruz and Hai and Nga Nau Under Negotiation: Price, terms of payment, or both
8) Property: 7000 Rose Acres Lane, Felton
APN: 071-081-03
Owner: Ronald J. Ballauf c/o Elaine Rebecchi
City Negotiator: Rosemary Menard
Negotiating Parties: City of Santa Cruz and Ronald J. Ballauf c/o Elaine Rebecchi
Under Negotiation: Price, terms of payment, or both
9) Property: 234 Caledonium Avenue, Ben Lomond
APN: 072-145-28
Owner: Katrin Craig
City Negotiator: Rosemary Menard
Negotiating Parties: City of Santa Cruz and Katrin Craig Under Negotiation: Price, terms of payment, or both
10) Property: 200 Caledonium Avenue, Ben Lomond
APN: 072-145-33
Owner: Brian K. and Leslee A. Warwick
City Negotiator: Rosemary Menard
Negotiating Parties: City of Santa Cruz and Brian K. and Leslee A.

Warwick
Under Negotiation: Price, terms of payment, or both
11) Property: No Site Address, Ben Lomond
APN: 072-174-04
Owner: Milburn D. and Cheryl Lynne Schaaf
City Negotiator: Rosemary Menard
Negotiating Parties: City of Santa Cruz and Milburn D. and Cheryl Lynne Schaaf
Under Negotiation: Price, terms of payment, or both
December 12, 2023 City Council 5
Closed Session (continued)

2. Real Property Negotiations (Government Code §54956.8) (continued) 12) Property: 7900 Fremont Avenue, Ben Lomond
APN: 072-174-06
Owner: Susan C. Rines
City Negotiator: Rosemary Menard
Negotiating Parties: City of Santa Cruz and Susan C. Rines Under Negotiation: Price, terms of payment, or both
13) Property: No Site Address, Ben Lomond
APN: 072-181-17
Owner: Jamie Keith McDonald
City Negotiator: Rosemary Menard
Negotiating Parties: City of Santa Cruz and Jamie Keith McDonald Under Negotiation: Price, terms of payment, or both
14) Property: No Site Address, Ben Lomond
APN: 072-181-25
Owner: Jamie Keith McDonald
City Negotiator: Rosemary Menard
Negotiating Parties: City of Santa Cruz and Jamie Keith McDonald Under Negotiation: Price, terms of payment, or both
15) Property: No Site Address, Ben Lomond
APN: 072-181-26
Owner: Jamie Keith McDonald
City Negotiator: Rosemary Menard
Negotiating Parties: City of Santa Cruz and Jamie Keith McDonald Under Negotiation: Price, terms of payment, or both
16) Property: No Site Address, Ben Lomond
APN: 072-182-03
Owner: Cheryl Mercurio
City Negotiator: Rosemary Menard
Negotiating Parties: City of Santa Cruz and Cheryl Mercurio Under Negotiation: Price, terms of payment, or both
17) Property: 345 Brackney Road, Ben Lomond
APN: 072-212-36
Owner: Robert C. and Judith A. Gremminger
City Negotiator: Rosemary Menard
Negotiating Parties: City of Santa Cruz and Robert C. and Judith A.

Gremminger
Under Negotiation: Price, terms of payment, or both
December 12, 2023 City Council 6
Closed Session (continued)

2. Real Property Negotiations (Government Code §54956.8) (continued) 18) Property: 370 Brackney Road, Ben Lomond
APN: 072-221-18
Owner: Patrick J. Randolph
City Negotiator: Rosemary Menard
Negotiating Parties: City of Santa Cruz and Patrick J. Randolph Under Negotiation: Price, terms of payment, or both
19) Property: 5865 Graham Hill Road
APN: 066-211-10
Owner: Wood VMS Family Limited Partnership
City Negotiator: Rosemary Menard
Negotiating Parties: City of Santa Cruz and Wood VMS Family Limited Partnership
Under Negotiation: Price, terms of payment, or both

3. Conference With Legal Counsel – Anticipated Litigation (Government Code §54956.9(d)(2))
Significant exposure to litigation (two potential cases to be discussed)

4. Public Employee Performance Evaluation/Conference with Labor Negotiators (Government Code §54957, §54957.6)
Unrepresented employee: City Manager
Agency designated representative: City Attorney
December 12, 2023 City Council 7
City Council
12:45 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
Presentation

5. Mayoral Proclamation Declaring December 12, 2023, as Autumn Hays Day
Presiding Officer's Announcements
Statements of Disqualification
Additions and Deletions
City Attorney Report on Closed Session
Council Meeting Calendar

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

December 12, 2023 City Council 8
Consent Agenda

7. Minutes of the November 28, 2023 City Council Meeting (CC) Motion to approve as submitted.

8. Council Subcommittee to Explore the Feasibility of Community Workforce or Project Labor Agreements for City Capital Investment Projects (CN)
Motion to:
1) Direct staff to issue a Request for Proposals to work with a Council subcommittee to conduct a feasibility assessment of the potential options and considerations related to the City entering into a Community Workforce or Project Labor Agreement with the MontereySanta Cruz Counties Building and Construction Trades Council; and 2) Appoint an ad hoc Council subcommittee comprised of Mayor Keeley, and Councilmembers Watkins and Newsome on the planned evaluation of Community Workforce or Project Labor Agreements.

9. Liability Claims Filed Against the City of Santa Cruz (FN) Motion to reject the liability claims of 1) Jenai Marie Herod, and 2) Elaine Vierra, based on staff recommendation.

10. FY 2023 Traffic Impact Fee Annual Report (FN/PW)
Motion to accept and approve the attached FY 2023 Traffic Impact Fee Annual Report.

11. FY 2023 Parking In-Lieu Impact Fee Annual Report (FN/PW) Motion to accept and approve the attached FY 2023 Parking In-Lieu Impact Fee Annual Report.

December 12, 2023 City Council 9
Consent Agenda (continued)

12. Award Contract for an Environmental Impact Report (EIR) for the 908 Ocean Street Mixed Use Project, which Occupies the Majority of the Block Bounded by Ocean Stret, Water Street, May Avenue, and Hubbard Street (PL)
Motion to:
1) Award a contract to Kimley-Horn (Capitola, CA) for an Environmental Impact Report (EIR) in the amount of $209,086 and reject all other proposals, and
2) Authorize the City Manager to execute an agreement in a form approved by the City Attorney with Kimley-Horn for an EIR for 908 Ocean Street.

13. Award Contract for Active Transportation Program (ATP) Cycle 6 Noninfrastructure Education and Encouragement Programming (PW) Motion to award a contract for the purchase of Non-infrastructure Education and Encouragement Programming from Ecology Action (Santa Cruz, CA) in the amount of $992,000. The City Manager is hereby authorized and directed to execute an agreement in a form approved by the City Attorney. The Public Works Director is authorized to execute contract amendments within the approved project budget.

14. Santa Cruz County Regional Transportation Commission Consolidated Call for Project Grant Submittals (PW)
Motion to authorize the City Manager to apply for, accept, and appropriate funds from the 2023 Consolidated Regional Transportation Grant program for Bethany Culvert Emergency Repairs, Bay Corridor Design Funds, Bay Paving between Mission Street and east of Lennox Street, and Escalona Complete Streets.

15. Award Contract for FY 2024—2028 Traffic Striping Installation and Maintenance (PW)
Motion to award a contract to Chrisp Company for traffic striping installation and maintenance. The City Manager is hereby authorized and directed to execute an agreement in a form to be approved by the City Attorney. The Public Works Director is authorized to execute contract amendments within the approved project budget.

December 12, 2023 City Council 10
Consent Agenda (continued)

16. Contract Amendment 2024-1.1 with HDR Inc. for Capital Program Management Services (WT)
Motion authorizing the City Manager to execute Contract Amendment 2024-1.1 in the amount of $1,128,563 with HDR, Inc. in a form to be approved by the City Attorney.

17. Purchase of Real Property Necessary for Brackney Landslide Area Pipeline Risk Reduction Project: Multiple Properties, Assessor’s Parcel Numbers 071-081-03, 072-145-28, 072-145-33, 072-174-04, 072-174-06, 072-181-17, 072-181-25 & 26, 072-182-03, 072-212-36, and 072-221-18, Owned by Rebecchi & Ballauf Trust, Craig, Warwick, Schaaf, Rines Trust, McDonald, McDonald, Mercurio Trust, Gremminger Trust, and Peeler-Randolph Trust, Respectively (WT) (continued)
Motion: (continued)
4) Adopt a resolution authorizing and directing the City Manager or his designee to execute a purchase sale agreement between the City of Santa Cruz and Milburn Schaaf and Cheryl Schaaf for the easement located in Felton, CA near Highway 9 between Glen Arbor Road and Brackney Road for a temporary easement for APN 072-174-04 for the Brackney Landslide Area Pipeline Risk Reduction Project; 5) Adopt a resolution authorizing and directing the City Manager or his designee to execute a purchase sale agreement between the City of Santa Cruz and Susan C. Rines Trust for the easement located in Felton, CA near Highway 9 between Glen Arbor Road and Brackney Road for a temporary easement for APN 072-174-06 for the Brackney Landslide Area Pipeline Risk Reduction Project;
6) Adopt a resolution authorizing and directing the City Manager or his designee to execute a purchase sale agreement between the City of Santa Cruz and Jamie K. McDonald for the easement located in Felton, CA near Highway 9 between Glen Arbor Road and Brackney Road for a permanent easement for APN 072-181-17 for the Brackney Landslide Area Pipeline Risk Reduction Project;
7) Adopt a resolution authorizing and directing the City Manager or his designee to execute a purchase sale agreement between the City of Santa Cruz and Jamie K. McDonald for the easement located in Felton, CA near Highway 9 between Glen Arbor Road and Brackney Road for a permanent easement for APN 072-181-25 & 072-181-26 for the Brackney Landslide Area Pipeline Risk Reduction Project; 8) Adopt a resolution authorizing and directing the City Manager or his designee to execute a purchase sale agreement between the City of Santa Cruz and Cheryl Mercurio Living Trust for the easement located in Felton, CA near Highway 9 between Glen Arbor Road and Brackney Road for a permanent easement for APN 072-182-03 for the Brackney Landslide Area Pipeline Risk Reduction Project;
December 12, 2023 City Council 12
Consent Agenda (continued)

End Consent Agenda
Consent Public Hearings

18. 2nd Reading and Final Adoption of Ordinance No. 2023-13 Requiring Delivery Companies to Provide a Service Enabling Customers to Tip Delivery Drivers (CN)
Adopt Ordinance No. 2023-13 adding Chapter 5.11 to the Santa Cruz Municipal Code to require delivery companies to offer a tipping option to residential delivery customers.

December 12, 2023 City Council 13
Consent Public Hearings (continued)

19. Amending the City’s Plumbing Code to include Appendix M, the Peak Water Demand Calculator Approach to Sizing Building Plumbing Systems and Fixtures (CN)
Motion to:
1) Introduce for publication an ordinance amending Title 18 of the Santa Cruz Municipal Code, adopting California Code of Regulations Title 24 Appendix M of the California Building Standards Codes, and 2) Direct Water Department staff to identify and resolve equity issues created by use of the meter sizing approach included in Appendix M prior to implementing the Appendix M meter sizing provisions and bring to the Council for review and action any necessary changes in Water and Wastewater System Development Charges and Water Rate fixed costs following the anticipated 2025 and 2027 updates to System Development Charges and Water Rates, respectively, to ensure that similarly situated customers are treated equitable regardless of the approach used to size the meters for their water service.

20. Tax Equity and Fiscal Responsibility Act (TEFRA) Hearing for Approval of the California Municipal Finance Authority for Issuance of TaxExempt Bonds for the Benefit of the Pacific Station North Affordable Housing Transit-oriented Development, Exempt Surplus Land Declaration, Approval of State IIG Funded Loan and for the Project, and Approval of a FY 2023 Federal Budget Appropriation Loan to the Project (ED)
Motion to:
1) Conduct the public hearing under the requirements of TEFRA and the Internal Revenue Code of 1986, as amended (the “Code”); 2) Adopt a resolution to approve the issuance of Tax-Exempt Revenue Bonds by the California Municipal Finance Authority (“CMFA”) for the benefit of 902 Pacific Avenue Investors, L.P., a California limited partnership, or another entity to be established by Eden Housing, Inc. and For the Future Housing, Inc. or an affiliate thereof (collectively, the “Borrower”), in an amount not to exceed seventy-five million dollars ($75,000,000) to provide financing for Pacific Station North (the “Project”), such adoption is solely for the purposes of satisfying the requirements of TEFRA, the Code and the California Government Code Section 6500;
December 12, 2023 City Council 14
Consent Public Hearings

20. Tax Equity and Fiscal Responsibility Act (TEFRA) Hearing for Approval of the California Municipal Finance Authority for Issuance of TaxExempt Bonds for the Benefit of the Pacific Station North Affordable Housing Transit-oriented Development, Exempt Surplus Land Declaration, Approval of State IIG Funded Loan and for the Project, and Approval of a FY 2023 Federal Budget Appropriation Loan to the Project (ED) (continued)
Motion: (continued)
3) Adopt a resolution to approve the declaration of the land to be conveyed by the City to METRO as “exempt surplus” for the purpose of developing and operating the Project;
4) Authorize City Manager or Finance Director to approve a Project loan for up to $10 million in State IIG funding already awarded to Pacific Station and the Project and to execute loan documents including agreements, amendments, and related documents in a form to be approved by City Attorney, on behalf of the City; and 5) Authorize City Manager or Finance Director to approve a Project loan for up to $2 million from the FY 2023 federal budget appropriation for the Project.

21. 2nd Reading and Final Adoption of Ordinance No. 2023-14 Municipal Code Amendments Relating to Flexible Density Units (FDUs) Responding to Modifications Requested by the California Coastal Commission (PL) Adopt Ordinance No. 2023-14 amending Part 16 of Chapter 24.12 of the Municipal Code related to Flexible Density Units in response to action by the California Coastal Commission.

December 12, 2023 City Council 15
Public Hearings

22. General Plan 2030 6th Cycle Housing Element Update and Update to the Safety Element of the 2030 General Plan. Location: Citywide.

Applicant: City of Santa Cruz. Environmental Review: Exempt per Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines and Reuse of the 2030 General Plan Environmental Impact Report (EIR). (PL)
Resolution rescinding Resolution No. NS-29,076 and adopting a General Plan Amendment to repeal the 5th Cycle 2015—2023 Housing Element and adopting the 2023—2031 6th Cycle Housing Element of the General Plan and associated updates to the Safety Element of the General Plan and finding that the proposed changes are exempt from CEQA under Section 15061(b)(3) and finding that the changes are covered under CEQA through a reuse of the 2030 General Plan EIR.

23. Resolution of Necessity for Brackney Landslide Area Pipeline Risk Reduction Project: East Side of Fremont Avenue, South of Oak Avenue, Ben Lomond, CA 95005, APN 072-174-02, Owned by Helena H. Chen, Single Tenancy (WT/CA)
Resolution, following a hearing providing the owner(s) of the subject property an opportunity to speak, finding that public interest and necessity require the acquisition of interests in certain real property on Assessor’s Parcel Number 072-174-02, located in the unincorporated area of Santa Cruz County, and authorizing the City Attorney to proceed with eminent domain proceedings to acquire the real property.

24. Resolution of Necessity for Brackney Landslide Area Pipeline Risk Reduction Project: 321 Brackney Road, Ben Lomond, CA 95005, APN 072-231-12, owned by Julie K. Daniels (WT/CA)
Resolution, following a hearing providing the owner(s) of the subject property an opportunity to speak, finding that public interest and necessity require the acquisition of interests in certain real property on Assessor’s Parcel Number 072-231-12, located in the unincorporated area of Santa Cruz County, and authorizing the City Attorney to proceed with eminent domain proceedings to acquire the real property.

December 12, 2023 City Council 16
General Business

25. Collective of Results Evidence-Based (CORE) Update (CM) Motion to:
1) Accept Santa Cruz County’s Human Services Department (HSD) CORE Annual Report for Fiscal Year (FY) 2022—23 and report back on community engagement;
2) Provide direction on HSD recommendations for prioritization for the next CORE RFP funding cycle; and
3) Direct City staff to coordinate with the HSD to return on or before April 30, 2024 with recommendations for the draft of the next cycle of the CORE Investments request for proposals (RFP).

26. Fiscal Year (FY) 2024 State Homeland Security Program Grant Proposal – Automated License Plate Readers (ALPRs) (PD)
Motion to:
1) Approve the attached FY 2024 State Homeland Security Program Grant proposal letter and direct staff to send the letter to the Santa Cruz County Office of Response, Recovery, and Resilience, Authorized Body of Five no later than December 31, 2023;
2) Approve the installation of automated license plate readers within Santa Cruz city limits, purchased with funds received through the FY 2024 State Homeland Security Program Grant; and
3) Review the Santa Cruz Police Department’s Automated License Plate Readers (ALPRs) Policy and provide comment.

Presentation

27. Comments from Re-elected Vice Mayor, Renee Golder
Adjournment
December 12, 2023 City Council 17

INFORMATION ITEMS PREVIOUSLY DISTRIBUTED TO CITY COUNCILMEMBERS ADDENDUM TO CITY COUNCIL AGENDA – DECEMBER 12, 2023

28. Finance Department: Portfolio Management Report – Pooled Cash and Investments as of October 31, 2023 - 11/21/23 (FNFYI 376)

MAYOR'S PROCLAMATIONS
ADDENDUM TO CITY COUNCIL AGENDA – DECEMBER 12, 2023

29. Proclaiming December 2, 2023 as “Tom Ralston Day” and encouraging all citizens to join in congratulating him on his successful endeavors and expressing heartfelt appreciation for his contributions to the community and those in need.

30. 2. Proclaiming Tuesday, December 12, 2023 as “O’Neill Cold Water Classic Day” and encouraging all citizens to join in expressing gratitude for its contribution to the surfing culture, the promotion of local talent, and the spirit of sportsmanship and to participate in the festivities and support this prestigious surfing event each year.

31. Proclaiming December 12, 2023 as “Autumn Hays Day” and encouraging all citizens to join in congratulating her for making a name for herself in the surfing world and for her victory in the O’Neill Cold Water Classic.

December 12, 2023 City Council 18
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 Historic Preservation Commission One opening – at-large nomination Sister Cities Committee Three openings – at-large nominations Water Commission One opening – to be appointed by Vice
Mayor Golder
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 CouncilDecember 12, 2023

Santa Cruz City Council
December 12, 2023