Santa Cruz City Council
January 23, 2024

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

CITY COUNCIL AGENDA
Regular Meeting - January 23, 2024
Updated 1/19/24 – Changing the start time of afternoon session 10:00 A.M. CLOSED SESSION, ZOOM/COURTYARD CONFERENCE ROOM 12:30 P.M. ORAL COMMUNICATIONS, CONSENT, CONSENT PUBLIC HEARINGS, PUBLIC

HEARING, 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)
 1-833-548-0282 (Toll Free)
 1-877-853-5247 (Toll Free)
 1-669-900-9128
 Enter the meeting ID number: 946 8440 1344
 When prompted for a Participant ID, press #.
 Press *9 on your phone to “raise your hand” when the Mayor calls for public comment.  It will be your turn to speak when the Mayor calls on you. Press *6 to unmute yourself. The timer will then be set.

Correspondence to be included in the agenda packet must be received by 5:00 pm on Monday, January 22nd
January 23, 2024 City Council 2
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, January 21st by emailing the Mayor and the City Clerk.

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

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

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

Agenda Materials Submitted after Publication of the Agenda Packet: Pursuant to Government Code §54957.5, public records related to an open session agenda item submitted after distribution of the agenda packet are available at the same time they are distributed or made available to the legislative body on the City’s website at: www.cityofsantacruz.com/government/city-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.

January 23, 2024 City Council 3
10:00 AM
Closed Session

1. Real Property Negotiations (Government Code §54956.8) 1) Property: 6000 La Madrona Drive, Scotts Valley
APN: 021-141-20
Owner: Scotts Valley Fire Protection District (SVFPD)
City Negotiator: Heidi Luckenbach
Negotiating Parties: City of Santa Cruz and SVFPD
Under Negotiation: Price, terms of payment, or both
2) Property: 175 Sims Road
APN: 067-202-66
Owner: Yates Family Trust
City Negotiator: Heidi Luckenbach
Negotiating Parties: City of Santa Cruz and Yates Family Trust Under Negotiation: Price, terms of payment, or both
3) Property:17-D Municipal Wharf (Santa Cruz Bay Company) APN: 007-351-02
Owner: City of Santa Cruz
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City and Santa Cruz Bay Company
Under Negotiation: Price, terms of payment, or both
4) Property: 17-A Municipal Wharf (Surf Life)
APN: 007-331-06
Owner: City of Santa Cruz
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City and Surf Life
Under Negotiation: Price, terms of payment, or both
5) Property: 501 Upper Park Road (Santa Cruz Shakespeare) APN: 009-471-02
Owner: City of Santa Cruz
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City and Santa Cruz Shakespeare
Under Negotiation: Price, terms of payment, or both
January 23, 2024 City Council 4
Closed Session (continued)

1. Real Property Negotiations (Government Code §54956.8) (continued) 6) Property: 307 Church Street (Civic Auditorium)
APN: 005-071-06
Owner: City of Santa Cruz
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City and Santa Cruz Symphony
Under Negotiation: Price, terms of payment, or both
7) Property: 1020 Cedar Street (Atlantis Fantasy World) APN: 005-042-36
Owner: City of Santa Cruz
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City and Atlantis Fantasy World
Under Negotiation: Price, terms of payment, or both

2. Conference with Legal Counsel - Anticipated Litigation (Government Code §54956.9(d)(4))
Initiation of litigation (two potential cases to be discussed) Please note updated start time.
12:30 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
January 23, 2024 City Council 5
Presentations

3. Age-friendly City Designation

4. Mayoral Proclamation Declaring February 2, 2024 as Rosemary Menard Day
Presiding Officer's Announcements
Statements of Disqualification
Additions and Deletions
City Attorney Report on Closed Session
Council Meeting Calendar

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

Consent Agenda

6. Resolution Extending the Emergency Declaration in Connection with the December 2022 and January 2023 Winter Storms (CA/CM) Resolution extending by sixty days the Local Emergency Declaration in connection with the December 2022 and January 2023 winter storms.

7. Minutes of the January 9, 2024 City Council Meeting (CC) Motion to approve as submitted.

8. Farallon Strategies – Change Order (CM)
Motion authorizing the City Manager to approve a change order in the amount of $103,000 with Farallon Strategies to facilitate the completion of the 50-year vision for West Cliff.

January 23, 2024 City Council 6
Consent Agenda (continued)

9. Authorization for Application and Acceptance of California Interagency Council on Homelessness Grant Funds for Encampment Resolution Funding Program Round 3 (ERF-3-R) (CM)
Resolution authorizing the City Manager to apply for, accept, and appropriate funds the California Interagency Council on Homelessness Grant Funds for Encampment Resolution Funding Program Round 3 (ERF-3-R).

10. Severe Weather Shelter Pilot Program (CM)
Motion to approve a Memorandum of Understanding with the County of Santa Cruz in the amount of $100,271.70 to facilitate the operation of a Severe Weather Shelter Pilot Program during the period of December 1, 2023 and March 31, 2024.

11. State Legislation on Rental Applications (CN)
Motion to direct the Mayor to send a letter urging State Legislators to address disproportionately high fees imposed on renters during the application process, as outlined in this agenda report.

January 23, 2024 City Council 7
Consent Agenda (continued)

12. Pacific Station North Affordable Housing and METRO Project Administrative Approvals (ED)
Motion to:
1) Authorize the City Manager to approve necessary easements including but not limited to ingress/egress, public access, utilities, and stormwater easements in Maple Alley, Pacific Station, and the Project as specified in the City building permit(s) for the benefit of Pacific Station and the Project and terminate outdated easements that were left over from prior development and do not benefit the City or the Project. Easement termination and easement agreements will be in a form to be approved by City Attorney, on behalf of the City; 2) Authorize the City Manager to approve modification of the Project Conditions of Approval to allow recording of the Project’s Lot Line Adjustment (already approved by Council), before demolition and construction start;
3) Authorize the City Manager to execute funding documents including agreements, amendments, and related documents in a form to be approved by City Attorney, on behalf of the City for the $2 million Federal set-aside awarded previously to the project as a construction loan; and
4) Authorize the City Manager to approve up to $1 million from the already awarded State Infill and Infrastructure Grant funding to be allocated for METRO’s transit station improvements and to execute funding documents including agreements, amendments, and related documents in a form to be approved by City Attorney, on behalf of the City.

13. Living Wage Rate Annual Prescription for Fiscal Year 2025 (FN) Resolution upwardly indexing the prescribed minimum living wage rate by 2.5%, the amount which corresponds to San Francisco-OaklandHayward Area Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers, for the period ending October 31, 2023, to become effective July 1, 2024; and rescinding Resolution No. NS-30,111.

January 23, 2024 City Council 8
Consent Agenda (continued)

14. Application and Project Management Support for Information Technology Systems (IT)
Motion to:
1) Approve a professional services agreement and scope of work with 3Nineteen, LLC for application and project management support of critical information technology systems. The City Manager is hereby authorized and directed to execute a contract in a form approved by the City Attorney. The Information Technology Director is hereby authorized to execute change orders within the approved project budget; and
2) Authorize the Information Technology Director to renew for an additional two years under identical contractual terms and conditions at the end of the first contract term.

15. Fiscal Year 2024 California Department of Justice, Office of Attorney General, Tobacco Program Grant Award (PD)
Motion to:
1) Adopt a resolution authorizing the acceptance of the California Department of Justice, Office of Attorney General, Tobacco Program Grant pursuant to the California Healthcare, Research, and Prevention Tobacco Tax Act of 2016, and authorizing and directing the City Manager to execute the contract and agreements associated with acceptance of this grant, and
2) Adopt a resolution amending the FY 2024 budget in the amount of $256,568 for the FY 2024 Tobacco Program Grant.

16. Digester Gas Piping Rehabilitation Project (m409659) – Approval of Plans and Specifications, and Authorization to Award (PW) Motion to approve the plan and specifications for the Digester Gas Piping Rehabilitation Project (m409659) and authorize the City Manager to award the construction contract to MBS Engineering, Inc. in the amount of $116,270.00 in a form acceptable to the City Attorney and authorize the Director of Public Works to execute change orders within the approved project budget.

January 23, 2024 City Council 9
Consent Agenda (continued)

17. Murray Street Bridge Seismic Retrofit and Barrier Replacement (c409321) – Reject All Bids (PW)
Motion to:
1) Reject all bids for the Murray Street Bridge Seismic Retrofit and Barrier Replacement Project (c409321), and
2) Authorize staff to re-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 Director of Public Works is authorized to execute change orders within the approved project budget.

18. Anadromous Salmonid Habitat Conservation Plan – Adoption of a Final Mitigated Negative Declaration and a Mitigation Monitoring and Reporting Program (WT)
Resolution adopting the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for the Anadromous Salmonid Habitat Conservation Plan.

January 23, 2024 City Council 10
Consent Agenda (continued)

19. Purchase of Real Property Necessary for Newell Creek Pipeline Replacement-Felton to Graham Hill Water Treatment Plant Project:

Multiple Properties, Assessor’s Parcel Numbers 066-211-09, 066-211-10, 066-212-04 Owned by Wood VMS Family Limited Partnership and DK Felton Management, LLC (WT)
Motion to:
1) 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 David Wood for a permanent easement on APN 066-211- 09 located in Felton, CA near Graham Hill Road and Zayante Road for the Newell Creek Pipeline Replacement-Felton to Graham Hill Water Treatment Plant Project;
2) 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 David Wood for a permanent easement on APN 066-211- 10 located in Felton, CA near Graham Hill Road and Zayante Road for the Newell Creek Pipeline Replacement-Felton to Graham Hill Water Treatment Plant Project; and
3) 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 David Wood for a permanent easement on APN 066-212- 04 located in Felton, CA near Graham Hill Road and Zayante Road for the Newell Creek Pipeline Replacement-Felton to Graham Hill Water Treatment Plant Project.

20. Felton Diversion Pipeline Emergency Repair Project (e702301) – Notice of Completion (WT)
Motion to accept the work of Anderson Pacific Engineering Construction, Inc. (Santa Clara, CA) as complete per the Agreement, authorize the filing of a Notice of Completion for the Felton Diversion Pipeline Emergency Repair Project (e702301), and authorize the Water Director to sign the Notice of Completion as the Owner’s Authorized Agent.

End Consent Agenda
January 23, 2024 City Council 11
Consent Public Hearings

21. 2nd Reading and Final Adoption of Ordinance No. 2024-01 Implementing the CalPERS Contract Amendment (HR)
Motion to adopt Ordinance No. 2024-01 implementing the CalPERS contract amendment.

22. 2nd Reading and Final Adoption of Ordinance No. 2024-02 Amending Chapter 5.11 – Delivery Driver Tipping at Section 5.11.030 - Exceptions (CA)
Motion to adopt Ordinance 2024-02 amending Chapter 5.11 – Delivery Driver Tipping at Section 5.11.020 “Tipping Option Requirement” and

5.11.030 “Exceptions” pertaining to delivery driver tipping.

23. Municipal Code Amendments Relating to Objective Design Standards and Permit Processing Responding to Modifications Requested by the California Coastal Commission (PL)
Motion to:
1) Adopt a resolution acknowledging receipt of the resolution of certification from the California Coastal Commission, including the suggested modifications, and
2) Introduce for publication an ordinance amending various parts Chapter 24.04 of the Santa Cruz Municipal Code related to permit processing in response to action by the California Coastal Commission.

January 23, 2024 City Council 12
Consent Public Hearings (continued)

24. A23-0001: Downtown Plan Amendments and Local Coastal Program Implementation Plan Amendments Responding to Modifications Requested by the California Coastal Commission on Previously Adopted 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 adopt a resolution:
1) Acknowledging receipt of the resolution of certification from the California Coastal Commission, including the suggested modifications, 2) Amending the Downtown Plan and Local Coastal Program Implementation Plan to match the minor changes related to contributions to the Affordable Housing Trust Fund in response to action by the California Coastal Commission, and
3) Directing the Director of Planning and Community Development to submit the accepted changes to the Coastal Commission.

25. Extension of Urgency Ordinance Relating to Accessory Dwelling Units (ADUs), Junior ADUs, and Associated Changes to Permitting Required by State Law (PL)
Motion to:
1) Adopt an urgency ordinance to extend the term of the previously adopted urgency ordinance for a term of twelve months in accordance with the allowances in State Law, and
2) Direct staff to proceed with developing a regular ordinance that addresses the same state code changes.

January 23, 2024 City Council 13
Public Hearing

26. Tree Appeal 339 Walnut Avenue (PR)
Resolution to deny the appeal and uphold the Parks and Recreation Commission’s approval of tree removal permit application TR23-0089 submitted by Santa Cruz Property Management to remove one coast redwood tree located at 339 Walnut Avenue.

General Business

27. Communitywide Climate Action Plan 2030 – Year 1 Progress Report Update (CM)
Accept progress report update for the first year of the City’s Communitywide Climate Action Plan 2030.

28. 2023 Health in All Policies Progress Update and 2024 Health in All Policies Committee Workplan (CN)
Motion to:
1) Accept 2023 Health in All Policies (HiAP) progress update; 2) Adopt the 2024 HiAP Committee workplan and targets for increasing diversity in City committees and commissions;
3) Direct staff to prepare a commissioner/committee member compensation policy and process and provide an update to HiAP Committee; and
4) Direct staff to include HiAP committee recommended HiAP budget in FY 2025 proposals, and provide an update to the HiAP Committee on integrating HiAP into budget decision making for FY 2025 prior to budget hearings.

January 23, 2024 City Council 14
General Business (continued)

29. Economic Development Strategy Update: Downtown and
Eastside/Midtown District Activation and Direction (CN/ED) Accept the Economic Development Strategy Update regarding downtown and eastside/midtown actions and direct staff to move forward on the following additional recommended action areas to further activate the two districts during the current fiscal year:
1) Placemaking and activation activities
2) Assessment of empty storefronts
3) Permanent planning for future use of the existing downtown library site
4) Integration of new downtown housing projects into the downtown business, retail, and shopping environment
5) Pursue establishment of an eastside/midtown Business or Property-Based Improvement District
6) Amend the Economic Development Strategy to include these additional strategies and actions, and
7) Return to Council with an update on progress during the current fiscal year.

30. Military Equipment Purchase Request and Policy Update per Assembly Bill 481 (PD)
Motion to:
1) Introduce for publication an ordinance amending City of Santa Cruz Municipal Code (“SCMC”) Chapter 9.90 “AB 481 Military Equipment Use,” adopting an amended Military Equipment Use Policy (Policy) and incorporating the acquisition of unmanned aerial systems, and 2) Should the Council adopt the amended Policy and upon ordinance adoption:
a) Adopt a resolution amending the FY 2024 budget in the amount of $170,942 from the Police Asset Seizure 214 Fund, and
b) Approve a five-year purchase with Axon, Inc. for a drone program, with Year 1 totaling $114,844, and authorize the City Manager to execute a contract in a form approved by the City Attorney.

January 23, 2024 City Council 15
Advisory Body Appointments

31. Arts Commission (CC)
Appoint two at-large Arts Commissioners with terms ending January 31, 2025.

32. County Library Advisory Commission (CC)
Appoint two at-large County Library Advisory Commissioners with terms ending January 31, 2028.

33. Downtown Commission (CC)
Approve Mayor Keeley’s nomination for one Downtown Commissioner with a term ending January 31, 2027, and appoint one Downtown Commissioner, at-large, with a term ending January 31, 2025.

34. Historic Preservation Commission (CC)
Approve Vice Mayor Golder’s and Mayor Keeley’s nominations for two Historic Preservation Commissioners, with terms ending January 31, 2027.

35. Parks and Recreation Commission (CC)
Approve Vice Mayor Golder’s nomination of one Parks and Recreation Commissioner, with a term ending January 31, 2027.

36. Planning Commission (CC)
Approve Councilmember Newsome’s nomination for one Planning Commissioner with a term ending January 31, 2027, and appoint one Planning Commissioner, at-large, with a term ending January 31, 2025.

37. Sister Cities Committee (CC)
Appoint two Sister Cities Committee Members with terms ending January 31, 2028.

January 23, 2024 City Council 16
Advisory Body Appointments (continued)

38. Transportation and Public Works Commission (CC)
Approve Vice Mayor Golder’s nomination of one Transportation and Public Works Commissioner with a term ending January 31, 2027, Councilmember Newsome’s nomination of one Transportation and Public Works Commissioner with a term ending January 31, 2027, and appoint two Transportation and Public Works Commissioners, at-large, both with terms ending January 31, 2025.

39. Water Commission (CC)
Approve Vice Mayor Golder’s nomination of one Water Commissioner with a term ending January 31, 2027, and appoint one Water Commissioner, at-large, with a term ending January 31, 2025.

General Business

40. Impact Report on the Effect of the Proposed Housing for People Initiative (Measure M) (PL/ED)
Accept the impact report on the effect of the proposed Housing for People initiative (Measure M) and, should the Council choose to do so, vote to take a formal position on the measure.

Adjournment
January 23, 2024 City Council 17

INFORMATION ITEMS PREVIOUSLY DISTRIBUTED TO CITY COUNCILMEMBERS ADDENDUM TO CITY COUNCIL AGENDA – JANUARY 23, 2024

41. City Clerk: 2023 Advisory Body Attendance Reports - 1/11/24 (CCFYI 221)

MAYOR'S PROCLAMATIONS
ADDENDUM TO CITY COUNCIL AGENDA – JANUARY 23, 2024

42. Proclaiming January 11, 2024 as “Doug Engfer Day” in acknowledgment of his long service to our community and urging all citizens to join in recognizing and honoring his exemplary citizenship for his contributions to our community’s ongoing efforts to responsibly and sustainably manage our City’s precious natural resources, its critically important water resources and infrastructure, and the financial resources that customers provide to support the Santa Cruz water system in its mission to deliver high quality and reliable water to Santa Cruz water service customers.

Advisory Body Appointments
The following positions are either currently vacant or the terms are due to expire.

Council will make the appointments at a future meeting.

Commission for the Prevention of
Violence Against Women
One opening, to be appointed by
Councilmember Watkins.

County Latino Affairs Commission One opening – at-large nomination January 23, 2024 City Council 18
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 Council
Aging Committee Update
January 23, 2024

3.1 Today’s Update
● Why we are here:
○ Local policy initiatives
● What’s been happening since May
● Status of Age-Friendly Designation
● Age Well Santa Cruz County Survey:
○ January - March 2024

3.2 Parallel Aging Initiatives
Age-Friendly Network
The AARP Network of Age-Friendly
States and Communities is the
United States affiliate of the World
Health Organization Global
Network for Age-Friendly Cities and
Communities, an international effort
launched in 2006 to help cities
prepare for rapid population aging
and the parallel trend of
urbanization.

Master Plan on Aging
In 2019, Governor Newsom signed
the executive order calling for the
California Master Plan on Aging.

Launched in 2020, the Master Plan
for Aging outlines five bold goals
and twenty-three strategies to build
a California for All Ages by 2030.

3.3 3.4
Enrollment
Join the network:

Summer 2023
Year 1
Conduct a community
needs assessment:

January - March 2024
Year 2
Develop an action plan
Years 3-5
Implement the action
plan, and track the
progress
Year 5
Evaluate the impact of the work,
and create a progress report
Continue assessing
community needs, setting
goals, implementing plans
and evaluating progress
Age-Friendly Program
Process

3.5 Age Well Santa Cruz County
Community Needs Assessment
January - March 2024

3.6 3.7
Survey is Live:
tinyurl.com/AgeWellSantaCruz
● Eligible to Complete the Survey:
○ Residents of Santa Cruz County
○ Must be at least 40 years of age
● Goal of 1,000 Santa Cruz County residents
surveyed
○ Targeted response from key subgroups
● “Boots on the ground” sampling approach

3.8 How can you help?
Help us spread the word!

3.9 Thank you!
Kelly Mercer-Lebov
Senior Programs Coordinator
London Nelson Community Center
[email protected]
cityofsantacruz.com/seniors
cityofsantacruz.com/agewell

3.10 Meeting Type
Holiday
Jewish Holiday
Regular Meeting
Special Meeting (will be added as scheduled)
Study Session (will be added as scheduled)
Budget Hearing
DATE Location Meeting Type
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public February 19
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 April 22/23
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public May 27
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public May 29 Council Chambers Budget Hearing
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public June 19
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public July 4
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public September 2
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 October 2/3
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public October 11/12
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public November 11
Rosh Hashanah (City observed - sundown to sundown)
October 8
October 22
City Hall Closure - Veteran's Day (observed)
Yom Kippur (City observed - sundown to sundown)
City Hall Closure - Labor Day
August 27
July 9 and 23 Meetings Cancelled - CITY COUNCIL DARK
City Hall Closure - Independence Day
City Hall Closure - Memorial Day
Passover (City observed - sundown to sundown)
August 13
March 12
March 26
May 14
April 9
April 30
June 11
May 28
City Council Meeting Calendar for 2024
June 25
September 10
September 24
February 13
City Hall Closure - Presidents' Day
February 27
City Hall Closure - Juneteenth
Please note: Meeting times are not final and are likely to change

5.1 Meeting Type
Holiday
Jewish Holiday
Regular Meeting
Special Meeting (will be added as scheduled)
Study Session (will be added as scheduled)
Budget Hearing
DATE Location Meeting Type
City Council Meeting Calendar for 2024
Please note: Meeting times are not final and are likely to change 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 28
November 29
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public December 25/26
December 25
December 24 Meeting Cancelled - CITY COUNCIL DARK
City Hall Closure - Christmas Day
November 12
Hanukkah (City observed - sundown to sundown)
November 26
December 10
City Hall Closure - Thanksgiving Day
City Hall Closure - Day After Thanksgiving Day

5.2 City Council

AGENDA REPORT
DATE: 01/18/2024
AGENDA OF: 01/23/2024
DEPARTMENT: City Attorney/City Manager
SUBJECT: Resolution Extending the Emergency Declaration in Connection with the December 2022 and January 2023 Winter Storms (CA/CM)
RECOMMENDATION: Resolution extending by sixty days the Local Emergency Declaration in connection with the December 2022 and January 2023 winter storms.

BACKGROUND: Storms in December 2022 and January 2023 caused significant flooding, infrastructure damage, and other storm impacts, including downed trees and impacts to persons experiencing homelessness. On January 4, 2023, the City Manager issued a “Proclamation of Existence of Local Emergency.”
DISCUSSION: Chapter 2.20 of the City of Santa Cruz Municipal Code, at Section 2.20.030, empowers the Director of Emergency Services to proclaim the existence or threatened existence of a local emergency when the City is affected or likely to be affected by a public calamity or disaster, subject to confirmation by the City Council at the “earliest practicable time.” During the existence of such emergency, the Director of Emergency Services is also authorized, pursuant to Section 2.20.040(1), to “[m]ake and issue rules and regulations on matters reasonably related to the protection of life and property as affected by such emergency,” also subject to confirmation by the City Council “at the earliest practicable time.” In view of the facts and circumstances described above, on January 4, 2023, the City Manager declared the existence of a local emergency in the City of Santa Cruz. The City Council ratified the emergency declaration by Resolution No. NS-30,085 at its January 10, 2023 regular meeting.

At its regular meetings on January 24, 2023, March 14, 2023, May 9, 2023, June 27, 2023, August 22, 2023, October 10, 2023, and November 28, 2023, the Council adopted Resolution Nos. NS-30,095, NS-30,116, NS-30,145, NS-30,166, NS-30,187, NS-30,208, and NS-30,239 further extending the declaration of emergency by 60 days.

The attached resolution, if adopted by the City Council, would extend the emergency declaration related to the December 2022 and January 2023 winter storms emergency by an additional 60 days, to March 23, 2024.

FISCAL IMPACT: Actions taken by the City during a declared emergency are potentially recoverable from Cal OES (California Governor’s Office of Emergency Services) and FEMA (Federal Emergency Management Agency).

6.1 Prepared By:

Stephanie Duck
Deputy City Attorney
Submitted By:

Tony Condotti
City Attorney
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

6.2 RESOLUTION NO. NS-XX,XXX

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

THE LOCAL EMERGENCY DECLARATION IN CONNECTION WITH THE DECEMBER 2022 AND JANUARY 2023 WINTER STORMS
WHEREAS, Santa Cruz Municipal Code section 2.20.030 empowers the City Manager, as the director of emergency services, to proclaim the existence or threatened existence of a local emergency when the City is affected or likely to be affected by a public calamity, subject to confirmation by the City Council at the earliest practicable time; and WHEREAS, on December 30 and 31st, 2022, the City of Santa Cruz experienced a major rain event (the "December 2022 Atmospheric River Winter Storm"); and WHEREAS, as a result of the December 2022 Atmospheric River Winter Storm, flooding, debris from trees, and mud impacted the San Lorenzo River and adjacent areas, including the Tannery area, San Lorenzo Park, and the beach. The San Lorenzo River reached

22.1 feet. Rainfall amounts exceeded 7 inches in the mountains over a 24-hour period; and WHEREAS, soil conditions in the City of Santa Cruz remain saturated as a result of the December 2022 Atmospheric River Winter Storm, and another powerful storm event occurred on January 4 and 5th, 2023, increasing flooding and other storm impacts, including downed trees, major infrastructure damage, and impacts to persons experiencing homelessness; and
WHEREAS, the County of Santa Cruz proclaimed the existence of a local emergency in the County on January 3, 2023; and
WHEREAS, in light of the foregoing and pursuant to his authority as Emergency Services Director, on January 4, 2023, the City Manager declared the existence of a local emergency (the "Emergency Proclamation"); and
WHEREAS, at its January 10, 2023 meeting, the City Council adopted Resolution No.

NS-30,085 declaring the existence of a State of Emergency in connection with the December 2022 and January 2023 winter storms, confirming the January 4, 2023 Emergency Proclamation by the Director of Emergency Services; and WHEREAS, at its regular meetings on January 24, 2023, March 14, 2023, May 9, 2023,June 27, 2023, August 22, 2023, October 10, 2023, and November 28, 2023, the Council adopted Resolution Nos. NS-30,095, NS-30,116, NS-30,145, NS-30,166, NS-30,187, NS30,208, and NS-30,239 further extending the declaration of emergency by 60 days; and WHEREAS, damage to City infrastructure from the December 2022 and January 2023 winter storms is extensive and as a result, the City’s emergency response to the December 2022 and January 2023 winter storms will likely be ongoing.

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

A. That the City Council hereby declares that the local emergency declaration adopted at its January 10, 2023 regular meeting by Resolution No. NS-30,085, and extended on January 24, 2023 by Resolution NS-30,095, on March 14, 2023 by Resolution NS-30,116, on May 9, 2023 by Resolution NS-30,145,on June 27, 2023 by Resolution NS-30,166, on August 22, 2023 by Resolution NS-30,187, on October 10, 2023 by Resolution NS30,208, and on November 28, 2023 by Resolution NS-30,239, shall be extended an additional sixty (60) days from its adoption pursuant to California Government Code Section 8630, et seq., by this Resolution; and
B. This Resolution shall remain in full force and effect and shall thereafter terminate on the sixtieth (60th) day after its adoption, unless earlier terminated or further extended by subsequent City Council action.

PASSED AND ADOPTED this 23rd day of January 2024 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

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

MINUTES OF A CITY COUNCIL MEETING
January 9, 2024
10:15 AM
Mayor Keeley opened the City Council Closed Session at 10:21 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 (arrived at 10:40 a.m.), Brunner (left at 11:10 a.m.), 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 Economic Development and Housing B.

Lipscomb, Deputy City Clerk Administrator J. Wood, City Clerk Administrator B. Bush.

Additions and Deletions - City Clerk Administrator B. Bush announced that item 4 was removed from the agenda and would not be heard, as there were no new updates to discuss.

Public Comment
Mayor Keeley opened the public comment period at 10:22 a.m. The following person spoke:

Unidentified person spoke regarding item 1.

Mayor Keeley closed the public comment period.

Statements of Disqualification – Councilmember Brunner announced she would be recusing herself from item 3 based on the fact that a party to the matter is a source of income to a family member.

Closed Session was adjourned at 10:26 a.m. and Council went to the Courtyard Conference Room.

7.1 January 9, 2024 CITY COUNCIL MINUTES 6677
Closed Session

1. Conference With Legal Counsel – Liability Claims (Government Code §54956.95) 1) Claimant: Jonatan Ordonez
2) Claimant: David W. Turner
Claims against the City of Santa Cruz
Council received a status report, took up under agenda item 15, and no reportable action was taken.

2. Conference with Legal Counsel - Existing Litigation (Government Code §54956.9(d)(1))
Don’t Morph the Wharf! v. City of Santa Cruz et al.
(Santa Cruz County Superior Court Case No. 20CV02731)
Council received a status report, 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) Councilmember Brunner recused herself from hearing this item, the remaining Council received a status report, and no reportable action was taken.

4. Conference with Labor Negotiators (Government Code §54957.6) This item was removed from the agenda and was not heard.

7.2 January 9, 2024 CITY COUNCIL MINUTES 6678
City of Santa Cruz
809 Center Street
Santa Cruz, California 95060

MINUTES OF A CITY COUNCIL MEETING
January 9, 2024
11:45 AM
Call to Order – Mayor Keeley called the meeting to order at 11:57 a.m. in Council Chambers.

Roll Call

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

Absent: None.

Staff: City Manager M. Huffaker, Assistant City Manager L. Schmidt, City Attorney T. Condotti, Director of Parks and Recreation T. Elliot, Water Director R. Menard, Chief People Officer S. De Leon, Director of Economic Development and Housing B. Lipscomb, Finance Director E.

Cabell (via Zoom), Director of Information Technology K. Morgan (via Zoom), Director of Public Works N. Nguyen (via Zoom), Chief of Police B. Escalante (via Zoom), Director of Planning and Community Development L. Butler (via Zoom), Deputy City Manager L. Murphy (via Zoom), Asset and Development Manager D. McCormic, Deputy City Clerk Administrator J. Wood, City Clerk Administrator B. Bush.

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

Oral Communications
At 11:58 a.m. Mayor Keeley opened Oral Communications for members of the public who wished to speak regarding items not listed on the City Council agenda.

Tom Nelson spoke regarding an incident that happened at his downtown office, and the overall safety of downtown Santa Cruz.

Unidentified person spoke regarding polarization.

Robert Norse spoke regarding winter shelters and asked where they will be set up.

7.3 January 9, 2024 CITY COUNCIL MINUTES 6679
Oral Communications (continued)
Richard Lewis spoke regarding opening a senior center in Watsonville, as well as one at the London Nelson Center.

Garrett spoke regarding illegal immigration.

John Golder spoke regarding a previous Planning Director, parks, and local parking structures.

Bradley Snyder spoke regarding the crime rates in other Bay Area cities.

Jasmeen Miah spoke regarding transparency of the Santa Cruz Police Department.

At 12:16 p.m. Mayor Keeley closed Oral Communications.

Presentations

5. Mayoral Proclamation Declaring January 9, 2024, as Autumn Hays Day Vice Mayor Golder read from and presented a proclamation to Autumn Hays, declaring January 9, 2024 as Autumn Hays Day.

6. Mayoral Proclamation Declaring January 11, 2024, as Doug Engfer Day Councilmember Brown read from and presented a proclamation to Doug Engfer, declaring January 11, 2024 as Doug Engfer Day.

Mayoral Proclamation Declaring January 9, 2024, as O’Neill Coldwater Classic Day
Councilmember Kalantari-Johnson read from and presented a proclamation to Shaun Burns, declaring January 9, 2024 as O’Neill Coldwater Classic Day.

Presiding Officer's Announcements
Statements of Disqualification – None.

Additions and Deletions – Mayor Keeley announced an additional attachment was added to item 29.

City Attorney Report on Closed Session – See page 6677 for the report.

7.4 January 9, 2024 CITY COUNCIL MINUTES 6680
Council Meeting Calendar

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

Consent Agenda
Councilmember Brunner made a comment on item 14.

Vice Mayor Golder made comments on items 12 and 14.

Councilmember Brown made a comment on item 8.

Mayor Keeley made a comment on item 13 and announced that Councilmember Newsome would be assigned as the alternate to the Central Coast Community Energy Policy Board instead of Councilmember Brunner.

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

Unidentified person spoke regarding items 10 and 13.

Garrett spoke regarding item 12.

Robert Acosta spoke regarding item 8.

Mayor Keeley closed the public comment period.

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

ACTION: The motion carried unanimously with the following vote.

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

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

8. City Manager Annual Merit Increase and Contract Amendment (CA) Motion carried to approve an annual merit increase for the City Manager in the amount of 5% and an amendment to the City Manager’s Employment Agreement extending the term to January 1, 2030.

7.5 January 9, 2024 CITY COUNCIL MINUTES 6681
Consent Agenda (continued)

9. Resolution Amending and Updating the City's Bail Schedule (CA) Resolution No. NS-30,262 was adopted adopting an updated bail schedule and directing staff to forward the updated bail schedule to the Santa Cruz County Superior Court.

10. Minutes of the December 12, 2023 City Council Meeting (CC) Motion carried to approve as submitted.

11. Decision Support Tool - Understanding Climate-Influenced River Flooding - Budget Adjustment (CM)
Resolution No. NS-30,263 was adopted amending the FY 2024 budget for the use of $239,375 ($179,375 from California Department of Water Resources grant and $60,000 from Public Works to fully fund the Decision Support Tool - Understanding Climate-Influenced River Flooding.

12. A Living Shoreline, Nature-Based Solutions and Sand Management Feasibility Study - Budget Adjustment (CM)
Resolution No. NS-30,264 was adopted amending the FY 2024 budget for the use of $500,000 from State Coastal Conservancy grant to fund the Living Shoreline, Nature-Based Solutions and Sand Management Feasibility Study.

13. Appointment of Representatives to External Agencies, Groups, Council Committees and Task Forces (CN)
Motion carried to approve Mayor Keeley’s nominations to external agencies, groups, and City Council committees and task forces for the 2024 calendar year.

14. Award Contract for Purchase of a Type 6 Fire Engine (FD) Motion carried to award a contract for the purchase of a Type 6 Fire Engine to Weis Fire & Safety Equipment, LLC., Salina, Kansas, in the amount of $305,310.05 and authorize the City Manager to execute an agreement in a form approved by the City Attorney.

7.6 January 9, 2024 CITY COUNCIL MINUTES 6682
Consent Agenda (continued)

15. Liability Claims Filed Against the City of Santa Cruz (FN) Motion carried to reject the liability claims of 1) Jonatan Ordonez, and 2) David W. Turner, based on staff recommendation.

16. Sister Cities Committee Membership Reduction (PR)
Motion carried to:
 Adopt Resolution No. NS-30,265 changing the at-large membership from eleven (11) to seven (7) members and rescinding Resolution No. NS-28,142; and
 Amend the Sister Cities Committee bylaws to change the at-large membership from eleven (11) to seven (7).

17. Neary Lagoon Tule and Sediment Removal Project (m409688) – Notice of Completion (PW)
Motion carried to accept the work of McNabb Construction, Inc. (Lafayette, CA) as completed per plans and specifications and authorize the filing of the Notice of Completion for the Neary Lagoon Tule and Sediment Removal Project (m409688).

18. Award Contract for WWTF Emergency Switchgear and ATS Rehabilitation Project (c401405) - Purchase Order (PW)
Motion carried to approve a purchase order with Cupertino Electric Inc. (San Jose, CA) in the total amount of $387,934 to provide services for WWTF Emergency Switchgear and ATS Rehabilitation Project (c401405). The City Manager is hereby authorized and directed to execute the purchase order in a form approved by the City Attorney. The Public Works Director is authorized to execute change orders within the approved budget.

7.7 January 9, 2024 CITY COUNCIL MINUTES 6683
Consent Agenda (continued)

19. Wastewater Treatment Facility Digester 1 Cleaning (c401607) - Authorization to Advertise and Award (PW)
Motion carried to approve the specifications for the Wastewater Treatment Facility Digester 1 Cleaning (c401607), 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 Director of Public Works is authorized to execute change orders within the approved project budget.

20. Award Contractor for Solar PV Expansion at the Corp Yard (c101901) ABB EV Chargers – Budget Adjustment (PW)
Motion carried to:
 Award a contract for the purchase of ABB EV (electric vehicle) Chargers from EV Connect Inc, (Lake Forest, CA) in the amount $959,951.75; and  Adopt Resolution No. NS-30,266 amending the FY 2024 budget and appropriate funds in the amount of $647,929.39 from the California Energy Commission for the Solar PV (photovoltaic) Expansion at the Corp Yard (c101901).

21. Police Department Roof Restoration, Phase 2 – Award Contract (PW) Motion carried to award a contract with Tremco Inc. (Foster City, CA) for the restoration of the Police Department roof in the amount of $152,943. The City Manager is hereby authorized and directed to execute the contract in a form approved by the City Attorney. The Public Works Director is authorized to execute change orders within the approved project budget.

7.8 January 9, 2024 CITY COUNCIL MINUTES 6684
Consent Agenda (continued)

22. Purchase of Real Property Necessary for Brackney Landslide Area Pipeline Risk Reduction Project: Multiple Properties, Assessor’s Parcel Numbers 071-081-24, 072-152-07, and 072-174-02, Owned by Lynn Weissbart, Hai & Nga Nau, and Hien Nguyen, and Nelson Chen, Respectively (WT)
Motion carried to:
 Adopt Resolution No. NS-30,267 authorizing and directing the City Manager or his designee to execute a purchase sale agreement between the City of Santa Cruz and Lynn Weissbart for the easement located in Felton, CA. near Highway 9 between Brackney Road and San Lorenzo Way for a permanent easement on APN 071-081-24 for the Brackney Landslide Area Pipeline Risk Reduction Project,
 Adopt Resolution No. NS-30,268 authorizing and directing the City Manager or his designee to execute a purchase sale agreement between the City of Santa Cruz and Hai & Nga Nau, and Hien Nguyen for the easement located in Felton, CA. near Highway 9 between Brackney Road and San Lorenzo Way for a permanent easement on APN 072-152-07 for the Brackney Landslide Area Pipeline Risk Reduction Project, and
 Adopt Resolution No. NS-30,269 authorizing and directing the City Manager or his designee to execute a purchase sale agreement between the City of Santa Cruz and Nelson Chen for the easement located in Felton, CA. near Highway 9 between Glen Arbor Road and Brackney Road for a temporary easement on APN 072-174-02 for the Brackney Landslide Area Pipeline Risk Reduction Project.

23. Award of Agreement to Thatcher Company of California Inc. for Liquid Aluminum Sulfate (WT)
Motion carried to accept the bid of Thatcher Company of California Inc. (Salt Lake City, UT) for Liquid Aluminum Sulfate, reject all other bids, and authorize the City Manager to execute an agreement in a form approved by the City Attorney.

End Consent Agenda

7.9 January 9, 2024 CITY COUNCIL MINUTES 6685
Consent Public Hearing
Mayor Keeley opened the public comment period. There were no speakers. Mayor Keeley closed the public comment period.

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

ACTION: The motion carried unanimously with the following vote.

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

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

24. 2nd Reading and Final Adoption of Ordinance No. 2023-15 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 carried to adopt Ordinance No. 2023-15 amending Title 18 of the Santa Cruz Municipal Code, adopting California Code of Regulations Title 24 Appendix M of the California Building Standards Codes.

25. CalPERS Contract Amendment (HR)
Motion carried to:
 Adopt Resolution No. NS-30,270, a Resolution of Intention to approve an amendment to its contract with the California Public Employees’ Retirement System (CalPERS) to provide for a new local ocean beach lifeguard member category with Section 7522.25(d) (2.7% @ 57 Full formula), and Section 21574 (Fourth Level of 1959 Survivor Benefits) with 0% prior service; and
 Introduce for publication Ordinance No. 2024-01 implementing the CalPERS contract amendment.

7.10 January 9, 2024 CITY COUNCIL MINUTES 6686
General Business

26. Collective of Results Evidence-Based (CORE) Update (CM) Assistant City Manager L. Schmidt introduced the item and responded to Council questions.

Kimberly Petersen, Deputy Human Services Director, and Amanda Geipe, Director of Planning and Evaluations of the Human Services Department with the County of Santa Cruz, gave a presentation and responded to Council questions.

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

Tracey Weiss
Jasmeen Miah
James Ewing Whitman
Brad Snyder
Mayor Keeley closed the public comment period.

MOTION: Councilmember Watkins moved, seconded by Councilmember Brown, to:
 Accept Santa Cruz County’s Human Services Department (HSD) CORE Annual Report for Fiscal Year (FY) 2022-23 and report back on community engagement;
 Direct that the prioritization for the next CORE request for proposals (RFP) funding cycle be:
 Lifelong Learning & Education,
 Thriving Families,
 Stable, Affordable Housing & Shelter, and
 Healthy Environments; and
 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).

7.11 January 9, 2024 CITY COUNCIL MINUTES 6687
General Business

26. Collective of Results Evidence-Based (CORE) Update (CM) 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.

27. Revised Santa Cruz Wharf Master Plan and Environmental Determination (ED/PL/PR)
Asset and Development Manager D. McCormic and outside counsel Sabrina Teller gave a presentation and responded to Council questions.

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

Gillian Greensite
Bradley Snyder
James Ewing Whitman
Peter Drobac
Charles Meier
John Bombaci
Andrea Rosenfeld
Mark Gilbert
Unidentified person
John Aird
Mark Trabing
Mayor Keeley closed the public comment period.

MOTION: Councilmember Newsome moved, seconded by Councilmember Kalantari-Johnson, to:
 Adopt Resolution No. NS-30,271 certifying the Final Environmental Impact Report, with the following amendments:

7.12 January 9, 2024 CITY COUNCIL MINUTES 6688
General Business (continued)

27. Revised Santa Cruz Wharf Master Plan and Environmental Determination (ED/PL/PR) (continued)
MOTION (continued:

Title:

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ

ADOPTING THE SANTA CRUZ WHARF MASTER PLAN AND CERTIFYING THE

FINAL ENVIRONMENTAL IMPACT REPORT FOR THE SANTA CRUZ WHARF

MASTER PLAN

WHEREAS, the record, including the entire EIR, public comment, staff presentations, Master Plan and Engineering Report, and archival information shows a long history of infrastructure damage resulting from waves and debris, together with increased risk from climate change impacts, project engineers have recommended improving Wharf resilience through maintenance, lateral stabilization, and wave and debris impact attenuation from features like the Westside Walkway, among other efforts, based upon their extensive experience with a variety of approaches to coastal infrastructure. The record therefore supports the determination that proposed Wharf Master Plan improvements, as a whole and including the Westside Walkway, are needed to wrap the existing Wharf in a protective layer of new infrastructure that will reduce risks to public health, safety, and economic activity, while also expanding access and recreational uses, consistent with the project objectives; and,

The City Council hereby adopts the Santa Cruz Wharf Master Plan as guiding document for development and sustainability at the Wharf.  Adopt Resolution No. NS-30,272 approving Findings of Fact and a Mitigation Monitoring and Reporting Program for the Santa Cruz Wharf Master Plan and approving the revised Wharf Master Plan under California Environmental Quality Act (CEQA), with the following amendments:

Title:

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ

ADOPTING FINDINGS OF FACT AND A MITIGATION MONITORING AND

REPORTING PROGRAM FOR THE REVISED SANTA CRUZ WHARF MASTER

PLAN AND APPROVING THE REVISED WHARF MASTER PLAN

7.13 January 9, 2024 CITY COUNCIL MINUTES 6689
General Business (continued)

27. Revised Santa Cruz Wharf Master Plan and Environmental Determination (ED/PL/PR) (continued)
MOTION (continued:

WHEREAS, the City Council finds that the record, including the entire EIR, public comments, staff presentations, Wharf Master Plan and Engineering Report, and archival information shows a long history of infrastructure damage resulting from waves and debris, together with increased risk from climate change impacts. Project engineers have recommended improving Wharf resilience through maintenance, lateral stabilization, and wave and debris impact attenuation from features like the Westside Walkway, among other efforts, based upon their extensive experience with a variety of approaches to coastal infrastructure. The record therefore supports the determination that proposed Wharf Master Plan improvements, as a whole and including the Westside Walkway are needed to wrap the existing Wharf in a protective layer of new infrastructure that will reduce risks to public health, safety, and economic activity, while also expanding access and recreational uses, consistent with the project objectives;

WHEREAS, the City Council has determined, based on the reasons and substantial evidence set forth in the Findings of Fact, that none of the alternatives addressed in the Recirculated Final EIR are feasible and environmentally superior to the Project, and that Alternative 2, the alternative determined to be environmentally superior in the Draft EIR, is also not feasible based on the Findings set forth below and in Exhibit A; and
WHEREAS, the City Council finds, in the exercise of its inherent discretion to weigh and balance project objectives and policy and planning goals for the City, that while Alternative 2 would reduce potential biological impacts resulting from construction, the exclusion of the Westside Walkway in this alternative would not meet the project objectives of expanded public access, enhanced pedestrian environment and recreational opportunities, and public safety as well as the proposed Project would; specifically, that elimination of the Westside Walkway would not expand pedestrian access to
circumnavigate the Wharf, nor provide a defensive barrier to disrupt waves and intercept debris, nor enhance public safety through increased emergency and fire response access, nor expand maritime and

7.14 January 9, 2024 CITY COUNCIL MINUTES 6690
General Business (continued)

27. Revised Santa Cruz Wharf Master Plan and Environmental Determination (ED/PL/PR) (continued)
MOTION (continued):
recreational uses to the westside of the Wharf, nor protect property, jobs, and economic livelihood provided by Wharf businesses, and as such, for any of these reasons individually or all of them cumulatively, the City Council determines that Alternative 2 is not feasible; and WHEREAS, the City Council finds that, due to the facts that public opposition to the proposed project has centered largely on objections to the Westside Walkway, and the City currently has no funding for the further engineering and construction of the Westside Walkway, further technical study of possible alternative options for achieving the project objectives, defensive barrier function, recreation, protection of economic activities, and public safety and access goals that would be served by the Westside Walkway should be conducted; and WHEREAS, the City Council determines, based on the reasons and substantial evidence set forth in the Findings of Fact that the No Project Alternative and Alternative 1 are infeasible, but that Alternative 2, which removes the Westside Walkway, is feasible, when compared to continued delay of the full project due to opposition to the Walkway, although it would not satisfy all project objectives; and  Adopt the revised Santa Cruz Wharf Master Plan, with the alternative chapter for end of Wharf development and all references of the Landmark Building removed, plus additional revisions recommended in this report, approving Alternative 2 of the Revised EIR (Project eliminating Westside Walkway, and reducing the height and size of the new public use buildings to 40’ maximum height plus 5 to 10% reduced footprint), directing staff to make conforming changes to the Wharf Master Plan consistent with Council’s approval, directing staff to obtain additional technical studies of options to improve the resiliency of the Wharf to climate change and wave damage and return to Council with recommendations from the studies; and  Direct staff to prepare a Public Works Plan with the California Coastal Commission (CCC) for implementation of the Wharf Master Plan.

7.15 January 9, 2024 CITY COUNCIL MINUTES 6691
General Business (continued)

27. Revised Santa Cruz Wharf Master Plan and Environmental Determination (ED/PL/PR) (continued)
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.

28. An Ordinance Amending Chapter 5.11 – Delivery Driver Tipping at Section

5.11.030 - Exceptions (CA)
City Attorney T. Condotti spoke.

Mayor Keeley opened the public comment period. There were no speakers.

Mayor Keeley closed the public comment period.

MOTION: Councilmember Watkins moved, seconded by Councilmember Brunner, to introduce for publication Ordinance No. 2024-02 amending Chapter

5.11 – Delivery Driver Tipping at Section 5.11.020 “Tipping Option Requirement” and 5.11.030 “Exceptions” pertaining to delivery driver tipping.

ACTION: The motion carried with the following vote.

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

NOES: Vice Mayor Golder.

ABSENT: None.

DISQUALIFIED: None.

Recess - The City Council recessed at 3:49 p.m. until 5:00 p.m.

7.16 January 9, 2024 CITY COUNCIL MINUTES 6692
Council reconvened at 5:06 p.m. and Mayor Keeley called the meeting to order in Council Chambers.

Roll Call

Present: Councilmembers Newsome, Brown (arrived at 5:07 p.m. after roll call), Watkins, Brunner, Kalantari-Johnson; Vice Mayor Golder; Mayor Keeley.

Absent: None.

Staff: City Manager M. Huffaker, City Attorney T. Condotti, Deputy City Clerk Administrator J. Wood, City Clerk Administrator B. Bush.

General Business

29. Resolution Affirming Santa Cruz’s Commitment and Support for Ceasefire and Peace (CN)
Councilmembers Brunner and Brown spoke.

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

Ros Shorenstein
Joe
Ihlam
Al Burgan
Rabbi Paula Marcus
Shani
Sylvie Stein
Teddy
Tam Welch
Sadia
Eric Stats
Miranda
Sheila Carrillo
Julia
Ani
Maria Walsh
John Jackson
Stephen David Engel
Kai
Kayla Kumar
Hart Faye
Sandra Shamma
Mila Gillich

7.17 January 9, 2024 CITY COUNCIL MINUTES 6693
General Business (continued)

29. Resolution Affirming Santa Cruz’s Commitment and Support for Ceasefire and Peace (CN) (continued)
Public comment (continued):

Noemi Romo
Debra Feldstein
Meg Sandow
Lou Ursa
Ziggy Rendler Bregman
Faz
Unidentified person
BB Lang
Nancy Shanfeld
David Antonio Robles
Tom Manheim
Alyce Thornhill
Unidentified person
Zion Davidson
Brian
Cassandra Derrico
Unidentified person
Alex
Unidentified person
Sabina
Ronnie
Claire Shorenstein
Unidentified person
Unidentified person
Jasmeen Miah
Unidentified person (Garrett)
Sophia
Sophia
Justice Silver
Mike
Unidentified person
Naomi
Andrea Estrada
Pepper Unger
Reggie Meisler
Mijin Cha
Phil Kipnis
Jared

7.18 January 9, 2024 CITY COUNCIL MINUTES 6694
General Business (continued)

29. Resolution Affirming Santa Cruz’s Commitment and Support for Ceasefire and Peace (CN) (continued)
Public comment (continued):

Himadri
Debbie Gould
Rebecca Gross
Unidentified person
Nolan
Alex McDonald
Rachael
Carly
Camille
Unidentified person
Micha Cardenos
Ethan Miller
Keith Rickney
“X”
Candace
Unidentified person
Unidentified person
River Eisenbach
Ellen Garfield
Sameena
Lisa Ward
Nicole
Matti
Nadav Litawaya
Lauren
Elaine
Rabbi Richard Litvak
Rabbi Debbie Israel
Rachelle Norris
Christine Hong
Aria Brown
Unidentified person
Heather
Jody Ryker
Anthony
Fatima
Lee
Eliza Balantyne

7.19 January 9, 2024 CITY COUNCIL MINUTES 6695
General Business (continued)

29. Resolution Affirming Santa Cruz’s Commitment and Support for Ceasefire and Peace (CN) (continued)
Public comment (continued):

Ray Diaz
Unidentified person
Gregory Ficks
Camilla Hawthorne
Darcy Cavanaugh
Unidentified person
Naomi
[Unintelligible name]
Unidentified person
Chris Garcia
Eden Mendel
Peter Klotz-Chamberlin
Callia
[Unintelligible name]
Kamal
Jane
Julian Ward
Tania Schnare
Eliza [last name unintelligible]
David Ginsburg
Unidentified person
Bill Rentz
Jordan
Michael Gesaer
Unidentified person
Yliana Cruz
Lath Assat
Sutton Sauder
Yasmine
Catherine [unintelligible last name]
Chel
Cheryl Davilla
Kira Dralle
Barak
Reiley Collins
Laughing Coyote
Becker Sharrif
Amondo Argueta-Vogel

7.20 January 9, 2024 CITY COUNCIL MINUTES 6696
General Business (continued)

29. Resolution Affirming Santa Cruz’s Commitment and Support for Ceasefire and Peace (CN) (continued)
Public comment (continued):

Jess Fournier
Isaac
Veronica Hamilton
Rachel Kippen
Jacob Fontana
Michelle Glowa
Vladimir Kraus
[unintelligible name]
Malisa
Michael Harold
Unidentified person
Sur La Couch
Nate Edenhofer
Emma
David
Salman Padri
Constantine
Gabie Darlak
Anastasia Torres Gil
Zav
Eli Karon
Lauren Sudd
Greg Cotten
Omar
Joy Schendledecker
Jill Susskind
Amanda
Susan Coen
Unidentified person
Caitlin Brune
Mohammad
Gail McNulty
Jack Hain
Adeve
Erin
Abbi
Jennifer Kelly
Unidentified person

7.21 January 9, 2024 CITY COUNCIL MINUTES 6697
General Business (continued)

29. Resolution Affirming Santa Cruz’s Commitment and Support for Ceasefire and Peace (CN) (continued)
Public comment (continued):

Espernaldo
Miriam Greenberg
Amir Asadi
Liz Fitzgerald
Unidentified person
Rajeek Kameel
Vishal Singh
Maureen Eberhardt
Zeka Glucs
Unidentified person
Unidentified person
Caroline Kuspa
Nareva
Karl Schafer
Henry Cordeil
Unidentified person
Nadia
Wesley Summers
Alex Sorin
Unidentified person
Unidentified person
Lani
Gil Stein
Ellen Kane
Unidentified person
Arthur Burns
Esma
Basil Ojay
Jojo Diaz
Betsy Sentheneld
Unidentified person
Chris Kogan
Gabiella
Unidentified person
Ana Orloff
Asa McCroskey
Deas Mia Porter
Emory

7.22 January 9, 2024 CITY COUNCIL MINUTES 6698
General Business (continued)

29. Resolution Affirming Santa Cruz’s Commitment and Support for Ceasefire and Peace (CN) (continued)
Public comment (continued):

Unidentified person
Dustin Silver
Mellie Gomez
Unidentified person
Skyler
Unidentified person
Dice
Mikayla
Unidentified person
Amanda
Selma
Katie Digiralamo
Ruby
Greg Walker
Mel
Zora Skelton
Shira Mendelevich
Keenan Lorenzato
Leo Maciel
Unidentified person
Unidentified person
Jacob
Mary Gardner
Thairie Ritchie
Unidentified person
Curtis Rutherford
Lean
Unidentified person
Victoria Nobles
Amy Krouse
Gabriella
Forest
Marissa
Stacy Marie Garcia
Jose
Stephen Karon
Judy Yokel
Unidentified person

7.23 January 9, 2024 CITY COUNCIL MINUTES 6699
General Business (continued)

29. Resolution Affirming Santa Cruz’s Commitment and Support for Ceasefire and Peace (CN) (continued)
Public comment (continued):

Unidentified person
Unidentified person
Daniella
Ericks
Laila
Unidentified person
Unidentified person
Unidentified person
Ellen Stone
Unidentified person
Unidentified person
Anna
Mayor Keeley closed the public comment period.

MOTION: Councilmember Brown moved, seconded by Councilmember Brunner, to adopt the draft resolution affirming Santa Cruz’s commitment and support for ceasefire and peace.

7.24 January 9, 2024 CITY COUNCIL MINUTES 6700
General Business (continued)

29. Resolution Affirming Santa Cruz’s Commitment and Support for Ceasefire and Peace (CN) (continued)
SUBSTITUTE MOTION: Councilmember Newsome moved, seconded by Councilmember Watkins, to adopt Resolution No. NS-30,273 with the following language:

WHEREAS the City of Santa Cruz, CA acknowledges the suffering of the peoples of the Middle East and affirms our shared humanity.

WHEREAS the City of Santa Cruz, CA recognizes the history of conflicts in the Middle East.

WHEREAS the City of Santa Cruz, CA values peaceful conflict resolution.

THEREFORE, BE IT RESOLVED that the City of Santa Cruz, California:

1. Acknowledges the suffering of the Peoples of the Middle East.

2. Affirms our shared humanity and wish for peace.

3. Calls for collaborative efforts supporting peaceful dialogue among all parties involved.

4. Urges our community to develop and participate in activities that foster tolerance, empathy, education, and understanding of people of all backgrounds and religious faiths.

5. Looks forward to a future where all can live with dignity and security in PEACE.

6. Declares that January 2024 will be “City of Santa Cruz, California Peace Month” where all can have the opportunity to participate in activities and dialogue that promotes peace locally and around the world.

ACTION: The motion to accept the substitute motion carried with the following vote.

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

NOES: Councilmembers Brown, Brunner.

ABSENT: None.

DISQUALIFIED: None.

7.25 January 9, 2024 CITY COUNCIL MINUTES 6701
General Business (continued)

29. Resolution Affirming Santa Cruz’s Commitment and Support for Ceasefire and Peace (CN) (continued)
ACTION: The substitute motion carried with the following vote.

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

NOES: Councilmember Brunner.

ABSENT: Councilmember Brown.

DISQUALIFIED: None.

Public Hearing

30. Tree Appeal 339 Walnut Avenue (PR)
This item was continued to the meeting of January 23, 2024 and was not discussed.

Adjournment – Councilmember Watkins moved, seconded by Councilmember Newsome, to adjourn. By consensus City Council adjourned at 3:08 a.m.

Respectfully Submitted:

Julia Wood, Deputy City Clerk Administrator
Attest:

Bonnie Bush, City Clerk Administrator
Approved:

Fred Keeley, Mayor

7.26 City Council

AGENDA REPORT
DATE: 01/08/2024
AGENDA OF: 01/23/2024
DEPARTMENT: City Manager
SUBJECT: Farallon Strategies – Change Order (CM)
RECOMMENDATION: Motion authorizing the City Manager to approve a change order in the amount of $103,000 with Farallon Strategies to facilitate the completion of the 50-year vision for West Cliff.

BACKGROUND: West Cliff Drive between Columbia Road and David Way was severely damaged by large swells during the January 2023 storms, causing portions of the roadway and path to fail, along with impacts to public access points, utility infrastructure, and the surrounding neighborhood. Initial work was focused on emergency protective measures geared toward safety and access. Additionally, community interest in support of accelerated decision-making regarding management of the West Cliff area was activated.

Post-disaster, the City assembled an integrated, citywide team to holistically address the damage, existing in process work, and development of adjusted next steps as West Cliff is a cherished public amenity that should be accessible to all for a variety of uses. The extended team (Team) also included consulting and engineering partners, regulatory agencies, funders, the community, and community groups.

Initially and urgently, the City sought a knowledgeable partner with resiliency, climate, grant, state and federal relationships, and local knowledge, to be a critical and necessary extension of staff capacity. Farallon Strategies (Farallon) came on board in late January 2023 and began working with the City to develop a post-recovery, three-year roadmap (Roadmap). This work encompassed review of 30+ master plans and policy documents related to West Cliff, review of 200+ projects, identification of 100+ policies, and analysis of 95+ resiliency triggers and thresholds.

On May 23, 2023, City staff, along with Farallon, presented the draft Roadmap to Council and kicked-off the community review process. At that time, Council further directed staff to return with follow-on work to go beyond the three-year time horizon to a 50-year vision (Vision), and to deliver it by the end of the calendar year. Additionally, the Team was to focus on interagency coordination on multiple fronts including 1:1 interviews and through the Silver Jackets, future funding, and state and federal interagency support team – with an emphasis on nature-based solutions and long-term vision implementation.

8.1 Due to the extremely quick project turnaround time and the existing investment of time, knowledge, research, and relationships built, the City single-sourced the Vision work with Farallon. The initial plan and scope targeted completion at the end of 2023 as directed, but the Team determined toward the end of the calendar year that additional time would be needed for community outreach, data analysis, and deliverable development to deliver a quality Vision.

DISCUSSION: The Vision work includes extensive opinion and data gathering, analysis, outreach, communication, and deliverable development. The work has included the below and more time was needed to complete key components.

The Team, including Farallon, has executed:
 One (1) Council study session – “Understanding the Dynamic Coast”  August 15 – Council Study Session – “Understanding the Dynamic Coast”  Formation of City Manager West Cliff 50-year Vision Focus Group (Focus Group)  Facilitation of 5 Focus Group meetings
 Community Conversations:
o October 3 – London Nelson Community Center, 5:30-7:00 pm o October 18 – Zoom, 5:30-7:00 pm
o December 5 – London Nelson Community Center, 5:30-7:30 pm  Other work:
o December 5 – National Oceanic and Atmospheric (NOAA) Nature Based Solutions Training
o Working with consultants for:
o Artistic visuals for four draft future scenarios
o Public opinion poll
The next steps will include the following:
 Data consolidation and analysis of feedback of the four 2073 scenarios for West Cliff, with consolidation of feedback and integration into the Vision.  Development of draft, public draft, and final Vision deliverable.  One (1) Focus Group meeting.
 Various Community Conversations for above, with one (1) specifically led by Farallon and City staff leading others as needed.
 Minimally, two Council meetings updates.
 Coordination of additional meetings and work as needed to reconcile the Three-year Postrecovery Roadmap and the 50-year Vision, plus further development of state and federal agency partnerships, especially via the Silver Jackets grant awarded to the City.

Purchase over $100,000 must go to Council and additional work for the 50-year Vision for West Cliff and the Farallon portion of the above next steps will be a not to exceed $103,000. Due to extensive knowledge gained by Farallon, the investments to date in the partnership, maintenance of continuity, and the need to complete the Vision in a timely manner, staff, including the Purchasing Manager, recommend that the City approve the single source change order with Farallon.

8.2 FISCAL IMPACT: Funds are available in the Capital Investment Program project c402305, West Cliff Resiliency and Accessibility for $64,000 and from the City Manager’s FY 2024 operating budget for $39,000.

Prepared By:

Gina Liebig
Principal Management
Analyst
Submitted By:

Laura Schmidt
Assistant City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. FARALLON SCOPE EXTENTION AND AMENDMENT.PDF

2. FARALLON SCOPE DELIVERABLES STATUS.PDF

8.3 8.4

8.5 8.6

8.7 8.8

8.9 8.10

8.11 8.12
City Council

AGENDA REPORT
DATE: 01/11/2024
AGENDA OF: 01/23/2024
DEPARTMENT: City Manager
SUBJECT: Authorization for Application and Acceptance of California Interagency Council on Homelessness Grant Funds for Encampment Resolution Funding Program Round 3 (ERF-3-R) (CM)
RECOMMENDATION: Resolution authorizing the City Manager to apply for, accept, and appropriate funds the California Interagency Council on Homelessness Grant Funds for Encampment Resolution Funding Program Round 3 (ERF-3-R).

BACKGROUND: In 2022, the City of Santa Cruz stepped into the role of temporary transitional shelter provision by opening two safe sleeping programs: 1220 River Street Transitional Community Camp (1220 River Street) and the City Overlook located at the Armory.

Both of these shelters are designed to provide a more stable environment for individuals who have been unhoused and camping within the City. Program participants at 1220 River Street and City Overlook have indicated that a critical, first step of moving out of an encampment is the availability and access to a low-barrier shelter where they no longer needed to focus on day-today survival (finding food, hygiene and protecting property). At 1220 River Street and City Overlook, participants are in a stable and supportive environment where they can connect with providers and case managers more effectively; access food, health and hygiene services; and focus on their job and housing searches.

The City was able to create the 160 stabilization shelter spots through one-time funds provided by the State of California in recognition of the undue burden the City carries in our region and the lack of access the City has to ongoing regional, state and federal homeless-response funding.

These state funds were instrumental in allowing the City to open these shelters as well as kick start the implementation of the City’s 3-year Homelessness Response Action Plan.

The one-time CA state funding is not sufficient to support the ongoing operation of these shelters or the personnel cost for the City’s outreach workers. Nor does the City have external funds to expand the case management support needed to help connect more program participants to services and re-housing resources. The Homelessness Response Team in collaboration with the County of Santa Cruz and Housing Matters is therefore submitting a grant application to the California Interagency Council on Homelessness, seeking funds to extend and enhance existing services to support people experiencing homelessness in the Coral Street area.

9.1 DISCUSSION: For the California Interagency Council on Homelessness Grant Funds for Encampment Resolution Funding Program Round 3 (ERF-3-R), the City proposes to collaborate with the County of Santa Cruz and Housing Matters to submit an application for a grant to:

1. Serve unhoused individuals in the Coral St. and Harvey West area by providing them interim housing and supporting their progress towards housing solutions;

2. Provide targeted outreach efforts to individuals camping on Coral Street;

3. Connect these individuals experiencing homelessness to interim shelter where they can stabilize and take advantage of case coordination;

4. Expand access to case management and housing navigation by hiring additional skilled personnel; and

5. Expand interim shelter capacity on the Housing Matters campus, and support continued operations of existing interim shelter to provide more individuals the opportunity to participate in case management and eventual re-housing.

The City has retained the services of a grant writer to assist the City in preparation of the application. Applications are due January 31, 2024.

HEALTH IN ALL POLICY (HiAP): HiAP is a collaborative approach to improving the health of all people by incorporating health considerations into decision-making across sectors and policy areas. HiAP is based on 3 pillars: equity, public health, and sustainability. The goal of HiAP is to ensure that all decision-makers are informed about the health, equity, and sustainability impacts of various policy options during the policy development process. The actions and approaches discussed herein support the pillar of equity by providing outreach, shelter, and connection to services that support individuals experiencing homelessness. They support public health by providing mental health, case management, and hygiene resources to those experiencing homelessness. The actions and approaches support sustainability by providing resource and land management staff, shelter, and hygiene resources, thereby decreasing the amount of litter, debris, and human waste that is disposed of improperly.

Therefore, these actions and approaches are consistent with the three pillars of HiAP.

FISCAL IMPACT: If this grant is awarded, the funds will offset the impact to the General Fund by supporting the City’s ongoing shelter system and outreach personnel costs.

Prepared By:

Larry Imwalle
Homelessness Response
Manager
Submitted By:

Lisa Murphy
Deputy City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

9.2 RESOLUTION NO.

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

APPLICATION, ACCEPTANCE, AND APPROPROPRIATION OF GRANT FUNDS FROM

THE TO CALIFORNIA INTERAGENCY COUNCIL ON HOMELESS FOR THE

ENCAMPMENT RESOLUTION FUNDING PROGRAM
WHEREAS, governments at various levels across the entire country are struggling to address increasing numbers of individuals who are living without permanent housing; and WHEREAS, a variety of factors have contributed to the situation, including but not limited to systemic inadequacy of available funding, economic factors (such as the Great Recession, economic fallout from COVID-19, and increasing housing costs), lack of mental health services, a rise in substance abuse, and a wide range of other contributing factors; and WHEREAS, across the country, a biennial census is taken in late January that provides a baseline to understand absolute numbers and trends related to unhoused individuals. The last count, conducted in 2023, estimated approximately 1,028 unhoused individuals in the City of Santa Cruz.

The 1,028 individuals in the City represented 57 percent of the homeless population (approximately 1,804) in Santa Cruz County. Thus, while the City’s overall population represented 23 percent of the County’s population, 57 percent of the County’s homeless were located within the City; and
WHEREAS, the City’s per capita homeless population is one of the highest rates in the state; and
WHEREAS, Under the authority of Chapter 7 of Part 1 of Division 31 of the California Health and Safety Code (HSC) (sections 50250 et seq.), the Encampment Resolution Funding Program (ERF Program) was established to increase collaboration between the California Interagency Council on Homelessness (Cal ICH), Local Jurisdictions, and Continuums of Care for the following purposes:
• Assist Local Jurisdictions in ensuring the safety and wellness of people experiencing homelessness in encampments.
• Provide grants to Local Jurisdictions and continuums of care to resolve critical encampment concerns and transition individuals into safe and stable housing. • Encourage a data-informed, coordinated approach to address encampment concerns.

WHEREAS, Cal ICH released a Notice of Funding Availability (NOFA) on November 27, 2023, making a total of $298.7 million in funding statewide to be awarded amongst selected grantees through the competitive application process; and WHEREAS, the ERF Program grants awarded through this application process will support Cal ICH’s mandates by funding local demonstration projects that provide services to resolve the experience of unsheltered homelessness for people residing in encampments. Resolving these

9.3 experiences of homelessness will necessarily address the safety and wellness of people within encampments, resolve critical encampment concerns, and transition individuals into interim shelter with clear pathways to permanent housing or directly into permanent housing, using datainformed, non-punitive, low-barrier, person-centered, Housing First, and coordinated approaches; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Santa Cruz authorizes the submittal of application to the California Interagency Council on Homelessness (Cal ICH) for the Encampment Resolution Funding Program (ERF Program); BE IT FURTHER RESOLVED that the City Manager, or his/her designee, is hereby authorized and empowered to execute in the name of the City of Santa Cruz all grant documents, including by not limited to application, agreements, amendment, and requests for payment, necessary to secure grant funds, appropriate funds, and implement the approved grant project; and PASSED AND ADOPTED this 23rd day of January 2024, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: _______________________
Fred Keeley, Mayor
ATTEST: _____________________
Bonnie Bush, City Clerk Administrator

9.4 City Council

AGENDA REPORT
DATE: 01/04/2024
AGENDA OF: 01/23/2024
DEPARTMENT: City Manager
SUBJECT: Severe Weather Shelter Pilot Program (CM)
RECOMMENDATION: Motion to approve a Memorandum of Understanding with the County of Santa Cruz in the amount of $100,271.70 to facilitate the operation of a Severe Weather Shelter Pilot Program during the period of December 1, 2023 and March 31, 2024.

BACKGROUND: Historically, the countywide winter shelter program was funded through the County’s Continuum of Care (COC). The program was a night-only, congregate shelter that was activated only during the winter months. In April of 2019, the City and County collaborated to expand the winter shelter program beyond the winter months into a year-round, night-only program. During the COVID pandemic, the winter shelter program was folded into the suite of COVID emergency shelter programs, which were eventually closed in June of 2022.

Recognizing the need for continued access to emergency shelter on a year-round basis, the City, in 2022, opened the 1220 River Street Community Transitional Camp and the City Overlook shelter, both of which are 24/7, year-round programs. During the severe weather events in late 2022 and early 2023, the City responded to the need for more temporary emergency shelters in addition to these existing City programs by opening additional shelters. Working with the County, the City opened a shelter at the Depot Park building for 15 nights, and the Civic Auditorium provided shelter for 4 nights. The Free Guide, a local nonprofit organization, managed the evening only shelters under separate agreements with the City of Santa Cruz and County of Santa Cruz. According to program data from the local Homeless Management Information System (HMIS), these sites provided shelter for 255 unique individuals for at least 1 night during last year’s winter storm season.

DISCUSSION: Recognizing the need for an expanded emergency shelter program to assist individuals experiencing homelessness during severe winter conditions, the City Council allocated $142,000 for a Severe Weather Shelter program. The funds were derived from the onetime state grant the City received in 2022 designated for homelessness response programs and services (CA $14 million). City staff reached out to the County staff and City of Watsonville to explore the possibility of collaborating on a shared pilot shelter program.

The proposed partnership with the County of Santa Cruz and the City of Watsonville will be to open additional shelters when certain conditions are met. Together, all three agencies will jointly operate up to three extreme weather shelter locations, with two in the City and one in the County.

The collective bed capacity across these sites will be a minimum of 106 beds for an anticipated

10.1 maximum of 20 days of operations. The management of these shelter locations will be conducted by a third-party contractor, The Free Guide. The contract will be managed by the County. The shelters will operate during extreme weather conditions between December 1 and March 31, and the conditions are defined as either two or more consecutive days with predicted temperatures at or below 38F or in the event of a formal flood warning due to anticipated heavy rains. The Free Guide will support a safe and secure environment for people experiencing homelessness during a severe weather period for a full day, when possible. The sites will offer bathrooms, two meals per day, along with essential case management services.

FISCAL IMPACT: The City Council authorized the funding for a severe weather shelter program in the FY 2024 Budget from the CA $14 million grant for $142,000. The total cost of the program is projected to be $332,800, with the City’s contribution of $100,271.70 and the County and the City of Watsonville covering the remaining expenditures. Any funds from the MOU that are not utilized during this winter season will be placed in a trust account for use in covering future severe weather sheltering or as an additional Continuum of Care (CoC) contribution to be used in the following year.

Prepared and Submitted By:

Lisa Murphy
Deputy City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. CITY COUNTY MOU.DOCX

10.2 1

AGREEMENT BETWEEN

THE COUNTY OF SANTA CRUZ AND THE CITY OF SANTA CRUZ

AND THE CITY OF WATSONVILLE
FOR

SEVERE WINTER WEATHER SHELTER FUND PILOT PROGRAM
THIS AGREEMENT (hereafter called “Agreement”) between the County of Santa Cruz (hereafter called “County”), the City of Santa Cruz, and the City of Watsonville (hereafter called “Cities”), is executed with the effective date of January 1, 2024 County and Cities may be referred to individually as a “Party” and collectively, as the “Parties.”

RECITALS
WHEREAS, the Parties named above have identified a need in Santa Cruz County for expanded emergency shelter capacity for people experiencing homelessness during periods of severe winter weather; and
WHEREAS, the Parties acknowledge severe winter weather shelters are distinct from disaster-response shelters created during times of formal disaster declarations issued by agencies of government during times of natural or other disasters that impact the health and safety of all County residents; and
WHEREAS, the Parties acknowledge that during formal disasters, disaster response shelters must not discriminate against individuals in need of disaster assistance based on their economic or housing status prior to the declaration of a disaster according to Section 308 of the Federal Stafford Act1; and
WHEREAS, the Parties define severe winter weather as a weather event occurring between January 1 and March 31 when one or more of the following occur: (1) The National Weather Service issues a forecast of two or more consecutive days with average overnight low temperatures at or below 38F within the County’s urban services boundary; (2) The National Weather Service issues a formal flood warning due to excessive forecasted rains for two or more consecutive days anywhere in the County; or (3) The County of Santa Cruz issues evacuation orders due to excessive forecasted rains within the coastal watersheds of Santa Cruz County; and WHEREAS, the Parties agree that the Director of the County Office of Response, Recovery, and Resilience or their designee will determine when severe winter weather shelters should open and will provide at least 24 hours and preferably 48 hours’ notice of the need to open severe winter weather shelter sites to key designated staff in the Cities, County, and a contracted operator of the sites; and
WHEREAS, the County will make the Veterans Memorial Halls in the Cities of Watsonville and Santa Cruz or comparable sites available for use as severe winter weather shelter and the City of Santa Cruz will make available the Depot Park Freight Building or a comparable site for use as a severe winter shelter within its jurisdiction; and 1 https://www.fema.gov/sites/default/files/2020-03/stafford-act_2019.pdf

10.3 2
WHEREAS, the County Human Services Department Housing for Health Division provides administrative support to the local Housing and Urban Development (HUD) Continuum of Care (CoC) known as the Housing for Health Partnership, and the CoC Policy Board has responsibility for coordinating efforts to ensure all County residents have stable, safe, and healthy places to live within the County; and
WHEREAS, the CoC receives periodic contributions from the four cities (Capitola, Santa Cruz, Scotts Valley, and Watsonville) in the County and from the County to support CoC prioritized activities which historically include emergency shelter services; and WHEREAS, the County’s role with the CoC makes it the best option for managing a centralized severe winter weather vendor contract and program in partnership with the Cities; and WHEREAS, the CoC Policy Board has not yet identified severe winter weather shelter as a priority investment choice for limited CoC contributed funding in FY 23-24; and WHEREAS, the pilot program will help inform future budgetary and policy priority discussions within the Cities, County, and CoC and help determine if a severe winter weather vendor contract and operational sites should become part of an ongoing financial and programmatic commitment of the CoC and local governments; and

AGREEMENT
NOW, THEREFORE, the Cities and County agree to incorporate the above Recitals hereto, and agree to the following:

1. The City of Santa Cruz shall pay the County $100,271.70 within 30 days after execution of this Agreement for the severe winter shelter program fund.

2. The City of Santa Cruz shall make the Depot Park Freight Building or a comparable site available for use as a severe winter shelter by a mutually agreed upon contracted vendor as a contribution to the pilot program.

3. The City of Santa Cruz shall be responsible for building maintenance issues, additional special security needs, and other public agency generated facility-costs associated with Depot Park Freight Building shelter operations outside the scope of work with the contracted shelter operational vendor.

4. The City of Watsonville shall pay the County $66,128.30 within 30 days after execution of this Agreement for the severe winter shelter program fund.

5. The City of Watsonville in partnership with the County shall make the Watsonville Veterans Memorial Hall or a comparable site available for use as a severe winter shelter by a mutually agreed upon contracted vendor as a contribution to the pilot program.

6. The County shall contribute $166,400 for the severe winter shelter program fund.

7. The County shall make the City of Santa Cruz and City of Watsonville Veterans Memorial Halls or comparable sites available for use as a severe winter shelter by a mutually agreed

10.4 3
upon contracted vendor as a contribution to the pilot program.

8. The County shall supply all sites with cots and at its identified sites will be responsible for building maintenance issues, additional special security needs, and other public agency generated facility-costs associated with shelter operations outside the scope of work with the contracted shelter operational vendor.

9. The Parties shall not be expected to provide transportation to participants to designated shelter sites as part of this Agreement.

10. The County will place the total of $332,800 in contributed funds (“Contributed Funds”) from the County and Cities (as referenced in paragraphs 1, 4, and 6) into a County-managed trust account for use to cover the costs associated with: a) third-party vendor contract for severe winter weather shelter services, subject to the approval of the Parties; and b) additional security and facility-related costs for County identified sites. The proposed funding is anticipated to cover vendor and County expenses for 20 half or full-day operational periods with at most 106 total beds available across the three identified sites. The City of Santa Cruz will retain funding to, if needed, cover additional security and facility-related costs, if any, for its City-identified site separately from this Agreement. The Contributed Funds from the City of Santa Cruz, City of Watsonville, and County shall be used by the County for severe winter sheltering during the term of this Agreement. For sites within the City of Santa Cruz, operational costs covered by the Contributed Funds will be split 50/50 between the County and the City of Santa Cruz. For sites within the City of Watsonville, operational costs covered by the Contributed Funds will be split 50/50 between the County and the City of Watsonville. Exhibit A, which is attached hereto and incorporated herein by reference, sets forth the FY 2023-2024 budget for the fund pilot program.

11. The Parties may confer regarding the disposition of any unutilized Contributed Funds from this Fiscal Year 2023-2024 to cover future severe winter weather sheltering costs or their respective CoC jurisdictional contribution to be used in Fiscal Year July 1, 2024 – June 30, 2025. On or before May 30, 2024, the Cities and County must mutually agree in writing on the proposed use of any remainder of the Contributed Funds. If the Parties do not confer or do not reach agreement regarding any unutilized Contributed Funds, those funds will be retained by the County for future severe winter weather sheltering vendor costs.

12. All use of funds relating to this program shall be subject to verification with the County providing accounting to the Cities of the use of their respective City funds upon request and at least on an annual basis at the end of the fiscal year, June 30, 2024.

13. Unless this Agreement is amended in writing, the Parties’ total collective contributions to the program shall not be increased beyond the amounts outlined above.

14. Term and Termination.
a) Unless modified or terminated with at least 30 days prior written notice to the other Party, this Agreement expires on June 30, 2024. The Parties may modify and/or extend the terms of this Agreement via a written amendment signed by both Parties. b) Upon termination, the Parties will each be responsible for payment of the services up to the effective termination date.

10.5 4
c) All indemnity and record retention obligations shall survive termination of this Agreement.

15. Indemnity Obligations.
a. Vendor Indemnity Requirement.

In any contracts for severe winter weather shelter services between the County and a third-party vendor, the third-party vendor must be required to defend, indemnify, and hold harmless the Cities and County and their respective related parties. The vendor’s contract shall contain the following or similar language:

1. CONTRACTOR shall additionally exonerate, indemnify, defend, and hold harmless the City of Santa Cruz and the City of Watsonville (which shall include, without limitation, their officers, agents, employees and\ volunteers) from and against:
i. Any and all claims, demands, losses, damages, defense costs, or liability of any kind or nature which Cities may sustain or incur, or which may be imposed upon either or both of them for injury to or death of persons, or damage to property as a result of, arising out of, or in any manner connected with the CONTRACTOR’s performance under the terms of this Contract, excepting any liability arising out of the sole negligence of the Cities. Such indemnification includes any damage to the person(s), or property(ies) of CONTRACTOR and third persons.
ii. Any and all Federal, State, and Local taxes, charges, fees, or contributions required to be paid with respect to CONTRACTOR and CONTRACTOR’S officers, employees and agents engaged in the performance of this Contract (including, without limitation, unemployment insurance, social security and payroll tax withholding).
b. Indemnity Requirement between the Cities and County.

1. For the purpose of indemnification between the Cities and the County, each Party (“Indemnitor”) agrees to defend, indemnify, and hold harmless the other Party to this Agreement, and the other Party’s respective officials, officers, and employees (“Indemnitees”) from any claims, demands, damages, and liability of any kind or nature, including attorneys’ fees and costs, but only in proportion to and to the extent that any such liability imposed on the other Party is proximately due to the negligent acts or omissions of the Indemnitor party’s employee(s) relating to this Agreement.

2. For the purpose of indemnification between the Cities and the County, each Party shall be responsible for the acts or omissions of its respective participating personnel and shall incur liabilities arising out of the acts or omissions of its respective personnel while participating in the severe winter weather shelter service program.

3. Any personnel assigned to assist with the severe winter weather shelter program shall be deemed to be continuing under the employment of their respective

10.6 5
jurisdiction and shall have the same powers, duties, privileges, responsibilities, and immunities as are conferred upon them as an employee of their respective public agency.

4. The obligations under this Section 15 of the Agreement shall survive expiration or termination of this Agreement to the fullest extent permitted by law.

16. Vendor’s Insurance. The County shall require that the City of Santa Cruz and the City of Watsonville and their respective officials, officers, directors, and employees be named as an additional insured in all its third-party vendor contracts for shelter services related to severe winter weather that are partially funded by the Cities. Proof of insurance must be verified by County, kept on file, and provided to Cities.

17. License Agreement Required for Use of City Facilities. Should the Parties choose to use City-owned or operated facilities for the purpose of providing shelter during severe winter weather, the County’s third-party vendor and the identified City will be required to enter into the City’s standard license agreement.

18. No Assignment. No party to this Agreement can assign any portion of this Agreement without the other Parties’ prior written consent, unless otherwise stated herein.

19. No Third-Party Rights. This Agreement is not intended, and shall not be construed, to create any right, benefit, or enforceable law, substantive or procedural, for any third party against any parties to this Agreement, the State of California, the United States, or the officers, employees, agents, or other associated personnel thereof.

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

21. Governing Law. This Agreement shall be governed, construed, and enforced in accordance with the laws of the State of California.

22. Counterparts. This Agreement may be executed in counterparts, and when each Party has signed and delivered at least one such counterpart, each one shall be deemed an original and, when taken together with other signed counterparts, shall constitute one agreement, which shall be binding on and effective regarding all parties. Facsimile and scanned signatures have the same force and effect as original signatures.

IN WITNESS WHEREOF, the parties have executed this Agreement, which is effective January 1, 2024.

10.7 6
[SIGNATURE PAGE]
BY
Matt Huffaker, City Manager Date
City of Santa Cruz
APPROVED AS TO FORM:

City of Santa Cruz Counsel
Date
APPROVED AS TO FISCAL PROVISIONS:

City of Santa Cruz Finance Director
Date
BY
René Mendez, City Manager Date
City of Watsonville
APPROVED AS TO FORM:

City of Watsonville Counsel
Date
APPROVED AS TO FISCAL PROVISIONS:

City of Watsonville Finance Director
Date
BY
Randy Morris, Director Date
County of Santa Cruz, Human Services Department
APPROVED AS TO FORM:

Santa Cruz County Counsel
Date
APPROVED AS TO INSURANCE:

Santa Cruz County Risk Manager
Date

10.8 7
Exhibit A: FY 2023-2024 - Severe Winter Weather Shelter Fund Pilot Program Budget Projected Expenses
County -
Watsonville
Location
County –
City of Santa Cruz
Location
City of Santa Cruz -
City of Santa Cruz
Location
Contracted Vendor Start-Up Costs $12,256.60 $12,256.60 $7,966.79 Contracted Vendor 20 Day
Operations Cost $92,800.00 $92,800.00 $60,320.00
County Security and Facility Costs $27,200.00 $27,200.00 Total Expense Budget $132,256.60 $132,256.60 $68,286.79 Revenue from Agreement Totals
County Contribution $66,128.30 $66,128.30 $34,143.40 $166,400.00 City of Watsonville Contribution
(24R0428) $66,128.30 $0.00 $66,128.30
City of Santa Cruz Contribution
(24R0427) $0.00 $66,128.30 $34,143.40 $100,271.70
City of Santa Cruz Security and Facility Costs (outside agreement) $17,680.00

10.9 City Council

AGENDA REPORT
DATE: 01/13/2024
AGENDA OF: 01/23/2024
DEPARTMENT: City Council
SUBJECT: State Legislation on Rental Applications (CN)
RECOMMENDATION: Motion to direct the Mayor to send a letter urging State Legislators to address disproportionately high fees imposed on renters during the application process, as outlined in this agenda report.

BACKGROUND: According to California law (Cal. Civ. Code § 1950.6), landlords can charge a maximum application fee of $59.67 per applicant as of December 2022, adjusted annually for inflation based on the Consumer Price Index (CPI). This fee is refundable if no rental units are available at the time of application or if it's not used for authorized purposes. Optional under California Civil Code - CIV § 1950.1, landlords may use a reusable tenant screening report, but compliance with these laws is often lacking. Instances have been reported where tenants were charged excessive fees, such as a family paying over $2000 for application fees with a single company, or individuals being charged for waiting list entries without available units.

Enforcement and accountability measures for these practices are limited.

DISCUSSION: This agenda item seeks Council direction for the Mayor to send a letter to State Legislators, asking for the introduction of legislation to address and rectify the disproportionately high fees imposed on renters during the application process.

Proposed Directions
Several policy solutions have been considered and put into practice, including:
• Elimination of application fees (Massachusetts; Vermont) • Enforcing capped application fees (New York)
• Mandating common applications
• Prohibiting property management companies overseeing multiple properties from charging multiple fees
Health in All Policies
These solutions align with Health in All Policies, fostering equity and well-being by ensuring fair housing access, preventing excessive financial burdens, promoting equal treatment, and ensuring affordability and fairness across properties.

FISCAL IMPACT: None.

11.1 Submitted By:

Shebreh Kalantari-Johnson
Councilmember
Submitted By:

Scott Newsome
Councilmember
Submitted By:

Fred Keeley
Mayor
ATTACHMENTS:

None.

11.2 City Council

AGENDA REPORT
DATE: 01/04/2024
AGENDA OF: 01/23/2024
DEPARTMENT: Economic Development and Housing
SUBJECT: Pacific Station North Affordable Housing and METRO Project Administrative Approvals (ED)
RECOMMENDATION: Motion to:
1) Authorize the City Manager to approve necessary easements including but not limited to ingress/egress, public access, utilities, and stormwater easements in Maple Alley, Pacific Station, and the Project as specified in the City building permit(s) for the benefit of Pacific Station and the Project and terminate outdated easements that were left over from prior development and do not benefit the City or the Project. Easement termination and easement agreements will be in a form to be approved by City Attorney, on behalf of the City; 2) Authorize the City Manager to approve modification of the Project Conditions of Approval to allow recording of the Project’s Lot Line Adjustment (already approved by Council), before demolition and construction start;
3) Authorize the City Manager to execute funding documents including agreements, amendments, and related documents in a form to be approved by City Attorney, on behalf of the City for the $2 million Federal set-aside awarded previously to the project as a construction loan; and
4) Authorize the City Manager to approve up to $1 million from the already awarded State Infill and Infrastructure Grant funding to be allocated for METRO’s transit station improvements and to execute funding documents including agreements, amendments, and related documents in a form to be approved by City Attorney, on behalf of the City.

BACKGROUND: On January 26, 2021, the City Council approved several entitlements related to the development project, Pacific Station North, located at 902, 912 and 920 Pacific Avenue and 333 and 423 Front Street (APNs 005-152-30, -31, -32, -33 and -05) (Project) to develop 128 affordable rental apartments with a maximum household income average of 60% Area Median Income (AMI) or below including two manager units and commercial uses on the ground floor, and to redevelop the Santa Cruz Metropolitan Transit District (METRO) downtown transit METRO Center (both are referred to herein as “Project”).

For the State funding awarded to the Project, the State requires that the Lot Line Adjustment approved at the January 26th, 2021 City Council meeting must be recorded prior to demolition

12.1 and construction start so the State’s funding documents accurately reflect the parcels where the work will be done.

For the federal set-aside $2 million of funding, awarded to the project at the December 12th, 2023 City Council meeting, staff recommends that the funding be provided as a construction loan funding source to pay for development of the improvements which the City will own in exchange once construction is complete. This is a clarification as the December 12th staff report characterized it as a longer-term loan.

For the already awarded State IIG funding, staff recommends that up to $1 million of this funding award be allocated for the new bus tarmac and other METRO related improvements at Pacific Station North. Per the State IIG regulations, the funding will be paid on a reimbursement basis to the developer in exchange for the cost of the development of these improvements.

DISCUSSION:

1. For the State funders to fund the Project, the Project must be free and clear of any easements that would prevent the Project from being built as specified in the funding applications and the City building permit plans. Therefore, any outdated easements from prior development on the Project property must be terminated and new easements assigned that allow for the development of the Project. Staff is working with the Title Company to identify the easements to be terminated and draft termination agreements and effectuate their termination in accordance with state law and the City’s municipal code, in a form and procedure to be approved by City Attorney. Similarly, new easement agreements will be drafted in a form to be approved by City Attorney as required per the Project’s City building permit(s).

2. At the January 26, 2021 City Council meeting, Council approved a Lot Line Adjustment to realign the METRO-owned land parcel and the City-owned land parcel needed to build the Project.

METRO is transferring a portion of its land parcel to the City and the City is doing the same with its land parcel as part of the Lot Line Adjustment. The City and METRO will still remain landowners of their respective new parcels resulting from the Lot Line Adjustment. For the affordable housing and other mixed-use components, the City will continue to own its land parcel and ground lease the land to the affordable housing developer and provide leases for other commercial uses on the ground floor of the 100% affordable residential building. For the State funding awarded to the Project, the State requires that the Lot Line Adjustment be recorded prior to demolition and construction start so the State’s funding documents accurately reflect the parcels where the work will be done.

3. For the Project’s commercial improvement costs which include METRO’s Santa Cruz Metropolitan Transit District’s Pacific Station customer service and operations, the previously awarded long term loan to the project will be a construction loan, as this type of loan is paid back on a shorter schedule and more accurately reflects the nature of the loan. The developer will build these commercial improvements for the City and once construction is complete the City will own and plans to lease the improved commercial space including METRO’s customer service and operations located on the ground floor of the City’s 100% affordable residential building.

4. For site preparation and infrastructure work on METRO’s new bus tarmac, staff is recommending up to $1 million of the already awarded State IIG funding be allocated for development of these improvements on a reimbursement basis to the developer. While the City is

12.2 planning to lease City-owned commercial space on the ground floor of the affordable housing building to METRO for their customer service and operations, METRO’s bus tarmac will remain under METRO’s ownership.

Health in All Policies (HiAP)
HiAP is a collaborative approach to improving the health of all people by incorporating health considerations into decision-making across sectors and policy areas. HiAP is based on 3 pillars:
equity, public health, and sustainability. The goal of HiAP is to ensure that all decision-makers are informed about the health, equity, and sustainability impacts of various policy options during the policy development process. With the Project located downtown, it encourages a sustainable and healthy lifestyle by allowing residents to walk and ride to the job center and commercial uses in the downtown vicinity. The site will also include the Metro station, allowing for residents and downtown visitors to use public transit to gain access to other areas of the city, thereby further promoting sustainable transportation use. By providing 100% affordable rental apartments, this will not only help the City with a more sustainable supply of rental housing, but will also help create a more inclusive equitable community.

FISCAL IMPACT: There will be no negative fiscal impact to the City. Once the development is complete, significant revitalization efforts will be completed in lower Pacific Avenue in addition to the much-needed affordable housing that includes a new METRO transit station, new commercial retail and a new public paseo pedestrian enhancement connecting to the Riverwalk that will substantially increase the vitality and help sustain the downtown economy. The City will receive increased revenue from future commercial tenants in the Project.

Prepared By:

Jessica de Wit
Housing and Community
Development Manager
Submitted By:

Bonnie Lipscomb
Director of Economic
Development and Housing
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

12.3 City Council

AGENDA REPORT
DATE: 01/04/2024
AGENDA OF: 01/23/2024
DEPARTMENT: Finance
SUBJECT: Living Wage Rate Annual Prescription for Fiscal Year 2025 (FN) RECOMMENDATION: Resolution upwardly indexing the prescribed minimum living wage rate by 2.5%, the amount which corresponds to San Francisco-Oakland-Hayward Area Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers, for the period ending October 31, 2023, to become effective July 1, 2024; and rescinding Resolution No. NS30,111.

BACKGROUND: On February 28, 2023, the City Council adopted Ordinance No. 2023-03 pertaining to the payment of a living wage. Section 5.10.040 of the ordinance requires that the City Council adopt a recommendation regarding adjustments to minimum living wage rates and benefits annually to be effective on July first. This section of the ordinance further requires that, at a minimum, the living wage rates shall be upwardly indexed each year by an amount which corresponds to the San Francisco-Oakland-Hayward area CPI for Urban Wage Earners and Clerical workers for the twelve-month period ending on October 31, of the previous year.

DISCUSSION: This CPI data for the period ending October 31, 2023, reflects an increase of

2.5%. Staff recommends that this percentage be used to upwardly index the current living wage rate, effective July 1, 2024. Using this percentage to calculate the new minimum living wage rates will result in the following:

1. The minimum living wage to be paid to employees when they receive the minimum leave and health insurance benefits prescribed in this resolution shall be increased by $.51 to $20.73 per hour.

2. The minimum living wage to be provided to employees where the employees do not receive the minimum leave and health insurance benefits prescribed in this resolution shall be increased by $.55 to $22.61 per hour.

3. The minimum sick leave, vacation leave and health insurance benefits which must be provided to employees in order to qualify for the $20.73 per hour wage rate shall be as follows:

A. Compensated sick leave/vacation leave: a combined twelve (12) days annually for full-time employees and prorated for employees working less than full time.

B. Uncompensated sick leave/vacation leave: a combined ten (10) days annually for fulltime employees and prorated for employees working less than full time.

C. Health insurance benefits: the payment of at least $1.88 per hour towards the payment for a health insurance policy for each employee.

13.1 FISCAL IMPACT: This rise in the minimum living wage may increase contract pricing for some service contracts; however it is not possible to determine any fiscal impact at this time.

Prepared By:

Elizabeth Millwee
Purchasing Manager
Submitted By:

Elizabeth Cabell
Finance Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOC

13.2 RESOLUTION NO. NSRESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ ESTABLISHING MINIMUM LIVING WAGE RATES EFFECTIVE JULY 1, 2024 AND RESCINDING RESOLUTION NO. NS-30,111
WHEREAS, the City Council adopted Ordinance No. 2023-03 on February 28, 2023; and WHEREAS, the living wage ordinance, at Municipal Code Section 5.10.030 requires the payment of a living wage to all “employees” as that term is defined in the ordinance; and WHEREAS, Section 5.10.040 requires the City Council on an annual basis to consider a recommendation annually to prescribe by resolution the minimum living wage rates to be paid to employees pursuant to the requirements of the ordinance to become effective no later than July 1 of each year.

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

1. The minimum living wage to be paid to employees when said employees receive the minimum vacation leave, sick leave, and health insurance benefits prescribed in this resolution shall be $20.73 per hour.

2. The minimum living wage to be provided to employees where the employees do not receive the minimum vacation leave, sick leave, and health insurance benefits prescribed in this resolution shall be $22.61 per hour.

3. The minimum vacation leave, sick leave, and health insurance benefits which must be provided to employees in order to qualify for the $20.73 per hour minimum living wage prescribed in this resolution shall be as follows:

A. Compensated sick leave/vacation leave: a combined twelve (12) days annually for fulltime employees and prorated for employees working less than full time.

B. Uncompensated sick leave/vacation leave: a combined ten (10) days annually for fulltime employees and prorated for employees working less than full time.

C. Health insurance benefits: the payment of at least $1.88 per hour towards the payment for a health insurance policy for the employee.

13.3 PASSED AND ADOPTED this 23rd day of January 2024, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

13.4 City Council

AGENDA REPORT
DATE: 01/03/2024
AGENDA OF: 01/23/2024
DEPARTMENT: Information Technology
SUBJECT: Application and Project Management Support for Information Technology Systems (IT)
RECOMMENDATION: Motion to:
1) Approve a professional services agreement and scope of work with 3Nineteen, LLC for application and project management support of critical information technology systems. The City Manager is hereby authorized and directed to execute a contract in a form approved by the City Attorney. The Information Technology Director is hereby authorized to execute change orders within the approved project budget; and
2) Authorize the Information Technology Director to renew for an additional two years under identical contractual terms and conditions at the end of the first contract term.

BACKGROUND: The Information Technology (IT) Department is actively managing various application-related projects, strategically emphasizing the streamlining of the City’s technology landscape and the reduction of dependence on legacy applications. To address this, the department collaborates with professional services partners and leverages advanced knowledge of the City's unique application landscape.

These collaborations have proven particularly advantageous, enhancing the department's ability to provide targeted and effective support as needed. This support includes project management and assistance for applications serving key City systems such as:
• Utility billing
• Financial management
• Human resources management
• Permitting and licensing
• Asset management
• Document management
• Time management
This strategic approach plays a crucial role in maintaining the operational sustainability of the City's technology systems, minimizing downtime, disruption, and risk.

DISCUSSION: Recognizing the ongoing need for additional operational and project management support through professional services, the IT Department sought to secure the most

14.1 qualified vendor. To ensure a thorough selection process, the staff initiated a competitive Request for Proposals (RFP). The objective of this evaluation was twofold: to identify a vendor capable of meeting the specific requirements of the City, and to offer a competitive cost proposition.

Following a comprehensive evaluation, 3Nineteen, LLC emerged as the most qualified vendor.

Their selection was based on a combination of demonstrated expertise in addressing the City's unique requirements and providing a cost-effective solutions. The competitive RFP was instrumental in thoroughly evaluating potential partners, emphasizing the importance of delivering exceptional value.

FISCAL IMPACT: The agreement duration with 3Nineteen spans three years, with the option to renew for an additional two years under identical contractual terms and conditions. The total expense for support services during Fiscal Years (FY) 2024 is $175,000, with two renewals at $270,000/year for FY 2025 and FY 2026. This cost will be allocated between the Information Technology Department's professional and technical services budget (1251-52199) and the Capital Investment Program project Fund (c152301). This project has been established for the Enterprise Resource Planning (ERP) replacement project, scheduled to begin in FY 2025. Three subsequent years beyond FY 2026 can be renewed, but costs would be negotiated and brought back to Council for approval.

There is no impact to the General Fund.

Fiscal
Year Title Hourly Rate
Total
Hours
Total Amount
(Not to Exceed)
FY24
Sr. Applications and Project
Consultant $180.00/hour 972 $175,000
FY25
Sr. Applications and Project
Consultant $180.00/hour 1500 $270,000
FY26
Sr. Applications and Project
Consultant $180.00/hour 1500 $270,000
FY27
Sr. Applications and Project
Consultant TBD TBD TBD
FY28
Sr. Applications and Project
Consultant TBD TBD TBD
Prepared and Submitted By:

Ken Morgan
Director of IT
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. PROFESSIONAL SERVICES AGREEMENT.DOCX

14.2 City of Santa Cruz Professional Services Agreement for Application and Project Support January 2024 Page 1
Professional Services Agreement With
3NINETEEN
For APPLICATION AND PROJECT SUPPORT
THIS AGREEMENT for professional services is made by and between the City of Santa Cruz (“City”) and 3Nineteen, LLC (“Consultant”) (each is referred to individually as a “Party” and collectively, as the “Parties”) as of January 31st, 2024 (the “Effective Date”).

NOW, THEREFORE, in consideration of each other’s mutual promises, the Parties hereto agree as follows:

SECTION 1: SCOPE OF WORK
Consultant will furnish services as defined and described in the Scope of Work, attached hereto as Exhibit A and incorporated herein.

SECTION 2: RESPONSIBILITIES OF CONSULTANT
All work performed by Consultant, or under Consultant’s direction, shall be rendered in accordance with the generally accepted practices, and to the standards of, Consultant's profession. Consultant represents and agrees that Consultant: (i) is fully experienced and properly qualified to perform the work and services provided for herein, (ii) has the financial capability required for the performance of the work and services, and (iii) is properly equipped and organized to perform the work and services in a competent, timely, and proper manner, in accordance with the requirements of this Agreement.

Consultant shall not undertake any work beyond the Scope of Work set forth in Exhibit A unless such additional work is approved in advance and in writing by City. The cost of such additional work shall be reimbursed to Consultant by City on the same basis as provided for in Section 4.

If, in performing the work, it is necessary to conduct field operations, security and safety of the job site will be the Consultant's responsibility excluding, the security and safety of any facility of City within the job site which is not under the Consultant's control.

Consultant shall meet with Michael Schmidt, Assistant Director of the Information Technology Department, hereinafter called "Assistant Director", or other designated and authorized City personnel, or third parties as necessary, on all matters connected with carrying out of Consultant’s services described in Exhibit A. Such meetings shall be held at the request of either Party. Review and City approval of completed work shall be obtained monthly, or at other intervals as may be mutually agreed upon during the course of this Agreement. Review, approval, or acceptance of Consultant’s work by City or others shall not relieve Consultant from responsibility for errors and omissions in Consultant’s work.

SECTION 3: RESPONSIBILITIES OF THE CITY
City shall make available to Consultant all necessary data and information in the City's possession and shall actively assist Consultant in obtaining such information from other agencies and individuals as needed. Consultant is entitled to reasonably rely upon the accuracy and completeness of such data and information, and Consultant shall provide City prompt written notice of any known defects in such data and information.

The Assistant Director may authorize a staff person to serve as his or her representative. The work in progress shall be reviewed at such intervals as may be mutually agreed upon between the Parties. The City will be the sole judge of acceptable work, provided that such approval will not be unreasonably withheld or delayed. If the work is not acceptable, City will inform Consultant of the changes or revisions necessary to secure approval.

14.3 City of Santa Cruz Professional Services Agreement for Application and Project Support January 2024 Page 2
SECTION 4: FEES AND PAYMENT
For services actually performed, the City will compensate Consultant at the rates set forth in the Fee Schedule detailed in Exhibit B and in accordance with the terms set forth therein. Payment for Consultant's services in carrying out the entire Scope of Work shall be made within the budget limit, or limits shown, upon Exhibit B. Such payment shall be considered the full compensation for all personnel, materials, supplies, and equipment used by Consultant in the Scope of Work. Markups shall not be charged for any approved sub-consultants or subcontractors.] Consultant agrees that the payments to Consultant specified in this Section 4 will constitute full and complete compensation for all obligations assumed by Consultant under this Agreement. Where conflicts regarding compensation may occur, the provisions of this section apply.

Variations from the budget for each task which are justified by statements indicating personnel time expended and submittal of a revised budget are only allowed with prior City approval; however, in no event shall the total fee charged for the Scope of Work set forth in Exhibit B Fee Schedule exceed the budget of $715,000 without advance written City authorization in the form of an amendment or change order.

Invoices shall detail the time worked by each class of employee on each task and the expenses incurred for which billing is made. Invoices shall indicate the percentage completion of each work task as identified in the Scope of Work in Exhibit A and the overall percentage of completion of the total required services. Unless otherwise specified in the fee schedule, payments shall be made monthly by the City within 30 days based on itemized invoices from the Consultant which list the actual costs and expenses.

All invoices shall contain the following affidavit signed by Consultant (if individual) or by a principal of Consultant’s firm (if Consultant is an entity):
“I hereby certify [or as principal of Consultant] that the charge of (Insert invoice amount) as summarized above and shown in detail on the attachments is a fair and reasonable use of public funds, is in accordance with the terms of Agreement dated (Insert Agreement Date), and has not been previously paid.”
This Agreement is contingent upon the appropriation of sufficient funding by the City for the services covered by this Agreement. If funding is reduced or deleted by the City for the services covered by this Agreement, the City has the option without penalty or liability to either terminate this Agreement or to offer an amendment to this Agreement indicating the reduced amount.

SECTION 5: TRAVEL REIMBURSEMENT POLICY
CHOOSE FOR REIMBURSEMENT (CHECK BOX) OF RELEVANT SECTIONS:] The City agrees to reimburse Consultant and Consultant’s employee(s) for only authorized travel expenses, as indicated by a mark below, and according to the City’s Travel Reimbursement Policy. It is expected that all travel expenses incurred by Consultant while conducting activities on behalf of the City will be at reasonable rates and that Consultant and Consultant’s employee(s) will exercise prudence in incurring these expenses. ☒ Meals: Meals are reimbursed at the current GSA Meals & Incidental per diem rate by county (www.gsa.gov/travel). The City does not reimburse for actual costs for meals. Reimbursement is based solely on per diem rates. Do not submit meal receipts.
• Travel before 8:00am qualifies for breakfast reimbursement. • Travel between 8:00am – 1:30pm qualifies for lunch reimbursement.

14.4 City of Santa Cruz Professional Services Agreement for Application and Project Support January 2024 Page 3
• Travel between 1:30pm – 7:00pm (or later) qualifies for dinner reimbursement. • Days between hotel stays and days starting before 8am and ending after 7pm, qualify for the full GSA Meals & Incidental per diem rate.
☒ Ground Transportation: Ground transportation is reimbursable when it is for travel between the Consultant’s place of business, an airport, or Santa Cruz hotel, as applicable, to the City work location.

1. Reasonable fees for taxis, shuttles, buses, trains, light rail, ride hailing services (Uber, Lyft or other), and similar modes of transportation will be reimbursed. Receipts are required for reimbursement.

2. When using vehicles owned by Consultant or Consultant’s employer:
• Mileage will be reimbursed at the current IRS mileage rate. • Evidence of automobile liability insurance meeting the City’s requirements must be provided. • Maps showing starting point, City work location, and total miles are required for reimbursement.

3. Use of car rentals are reimbursable when:
• Travel is necessary from an airport to the City work location. • The rental reservation is made as far in advance as is practical and the lowest possible price is obtained. • Insurance coverage is included, and the car is returned with a full tank of gas. • The smallest vehicle necessary is rented.
• Parking expenses are included in the GSA Meals & Incidental per diem rate. The City will not pay additionally for parking expenses.
• Receipts are required for reimbursement.
☒ Airfare: Airfare is reimbursable when the Consultant’s place of business, or Consultant’s employee’s home, is more than 250 miles away from Santa Cruz.
• Airfare must be lowest available coach class fare. Flights may be non-stop. • Airfare must be booked as far in advance as is practical. • Fees for one piece of checked luggage (and any equipment necessary for the work being done) will be reimbursed.
• Extra charges for seat assignments, refundable tickets, travel insurance/protection, and similar fees are not reimbursable.
• If the City cancels the need for travel and the ticket cannot be changed or refunded, the ticket cost will be reimbursable.
• Receipts are required for reimbursement.
☒ Lodging: Lodging is reimbursable when the Consultant must work on site for two or more consecutive days and the Consultant’s place of business or personal residence, is more than 60 miles away from Santa Cruz. • Lodging is reimbursed up to the current GSA rate by county (www.gsa.gov/travel). • Costs for hotel rooms above this rate are the responsibility of the traveler. • Receipts are required for reimbursement.

General Rule

1. Travel expenses not listed or checked above will not be reimbursed.

2. Travel reimbursements are paid after the completion of travel. There are no travel advances.

3. Exceptions to any of the above requirements require advance written permission from the Director or City’s designated agent contracting with the Consultant.

4. Tips and gratuities will not be reimbursed.

5. Alcoholic beverage purchases will not be reimbursed.

6. Consultants will exercise prudence in incurring reimbursable expenses.

7. The City of Santa Cruz has the sole discretion to deny any reimbursement request the City has determined to be excessive or an inappropriate use of public funds.

14.5 City of Santa Cruz Professional Services Agreement for Application and Project Support January 2024 Page 4
SECTION 6: CHANGES IN WORK
City may negotiate changes in the Scope of Work. No changes in the Scope of Work shall be made without the written approval of City and Consultant. Any change requiring compensation in excess of the sum specified in Exhibit B shall be approved in advance in writing by the City. Only City’s authorized representative(s) is authorized to approve changes to this Agreement on behalf of City.

SECTION 7: TERM AND SCHEDULE
The term of this Agreement shall be on the effective date of this Agreement and terminating after three years on January 31st, 2027. At the option of the City, this Agreement may be renewed for up to two additional years under the same contractual terms and conditions by letter agreement.

Consultant shall begin work as specified in a written authorization (e.g., Notice to Proceed) to perform services. The written authorization to perform work shall not be issued until after this Agreement has been approved and authorized by the City.

Neither party will be held responsible for delay or default caused by declared emergencies, natural disasters, or any Force Majeure event which is beyond the party's reasonable control. Consultant will, however, make all reasonable efforts to remove or eliminate such a cause of delay or default and will, upon the cessation of the cause, diligently pursue performance of its obligations in this Agreement.

The City reserves the right to obtain the item(s) and/or services covered by this Agreement from another source during any on-going suspension of service due to the circumstances outlined above.

SECTION 8: TERMINATION
The City may terminate the Agreement for any reason by providing written notice to Consultant not less than 10 calendar days prior to an effective termination date.

The Consultant may terminate the Agreement for cause by providing written notice to the City` not less than 30 calendar days prior to an effective termination date.

The City may, at its option, allow Consultant to cure its failure to perform within 10 business days (or longer period authorized in writing by the City) from the date of the City’s termination notice. The termination shall be become effective if Consultant has not cured within the specified time period to the City’s satisfaction.

Consultant may terminate this Agreement for cause if the City fails to cure a material default in performance within a period of 30 calendar days (or such longer period agreed to by the Consultant), from date of the Consultant’s written termination notice specifying the default in performance.

Upon notice of termination by either the City or Consultant, the Consultant will immediately act to not incur any additional obligations, costs or expenses, except as may be reasonably necessary to terminate its activities. The City’s only obligation to the Consultant will be just and equitable payment for services authorized by, and received to the satisfaction of, the City up to and including the effective date of termination less any amounts withheld. All finished or unfinished work or documents procured or produced under the Agreement will become property of the City upon the termination date. In the event of Consultant’s failure to perform pursuant to the Agreement, the City reserves the right to obtain services elsewhere and Consultant will be liable for the difference between the prices set forth in the terminated Agreement and the actual cost to the City. Termination of the Agreement pursuant to this

14.6 City of Santa Cruz Professional Services Agreement for Application and Project Support January 2024 Page 5
paragraph shall not relieve the Consultant of any liability to City for additional costs, expenses, or damages sustained by City due to failure of the Consultant to perform pursuant to the Agreement. City may withhold any payments to Consultant for the purpose of set-off until such time as the exact amount of damages due City from Consultant is determined. After the effective date of termination, Consultant will have no further claims against the City under the Agreement. No other compensation will be payable for anticipated profit on unperformed services.

SECTION 9: INSURANCE
Prior to the beginning of and throughout the duration of the Agreement, Consultant will maintain and comply with the Insurance Requirements as set forth in Exhibit C. Consultant will insure the City against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder. The insurance coverages required shall not in any way limit the liability of the Consultant.

SECTION 10: INDEMNIFICATION
Consultant agrees, to the fullest extent permitted by law, to indemnify, defend, and hold harmless the City, its officials, officers, employees, agents, and volunteers (collectively, “Indemnitees”) from and against any and all liability, claim, action, loss, injury, damage, judgment, or expense, including attorneys’ fees and costs (“Losses”) caused by or resulting from the negligence, recklessness, or willful misconduct of Consultant, Consultant’s officers, employees, agents, or subcontractors in any way related to this Agreement. Consultant’s duty to indemnify and hold harmless Indemnitees shall not apply to the extent such Losses are caused by the sole or active negligence or willful misconduct of Indemnitees. Consultant’s obligation to defend shall arise regardless of any claim or assertion that Indemnitees caused or contributed to the Losses.

In the event this Agreement involves the performance of design professional services by Consultant, Consultant’s officers, employees, agents, or subcontractors, Consultant’s costs to defend Indemnitees shall not exceed the Consultant’s proportionate percentage of fault per Civil Code §2782.8. This section shall survive the termination or expiration of this Agreement.

SECTION 11: EQUAL EMPLOYMENT OPPORTUNITY/NON-DISCRIMINATION POLICIES City’s policies promote a working environment free from abusive conduct, discrimination, harassment, and retaliation; and require equal opportunity in employment for all regardless of race, religious creed (including religious dress and grooming practices), color, national origin (including language use restrictions), ancestry, religion, disability (mental and physical), medical condition, sex, gender (including gender identity and gender expression), physical characteristics, marital status, age, sexual orientation, genetic information (including family health history and genetic test results), organizational affiliation, and military or veteran status, or any other consideration made unlawful by local, State or Federal law. City requires Consultant to comply with all applicable Federal and State and local equal employment opportunity laws and regulations, and Consultant is responsible for ensuring that effective policies and procedures concerning the prevention of abusive conduct, discrimination, harassment, and retaliation exist in Consultant’s business organization. The City’s current Equal Employment Opportunity and Non-Discrimination policies to which this Section applies may be viewed at http://www.codepublishing.com/CA/SantaCruz/?SantaCruz09/SantaCruz0983.html and http://www.cityofsantacruz.com/home/showdocument?id=59192.

SECTION 12: LEGAL ACTION/ATTORNEYS’ FEES
If any action at law or in equity is brought to enforce or interpret the provisions of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees in addition to any other relief. The laws of the State of California, with jurisdiction in the Santa Cruz County Superior Court, shall govern all matters relating to the validity, interpretation, and effect of this Agreement and any authorized or alleged changes, the performance of any of its terms, as well as the rights and obligations of Consultant and the City.

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SECTION 13: AMENDMENTS
This Agreement may not be amended in any respect except by way of a written instrument which expressly references and identifies this particular Agreement, which expressly states that its purpose is to amend this particular Agreement, and which is duly executed by the City and Consultant. Consultant acknowledges that no such amendment shall be effective until approved and authorized by the City’s authorized representative. No representative of the City is authorized to obligate the City to pay the cost or value of services beyond the scope of services set forth in Exhibit A.

Such authority is retained solely by the City Manager, Director, or their designee. Unless expressly authorized by the City Manager or Director, Consultant’s compensation shall be limited to that set forth in Exhibit B, Fee Schedule.

SECTION 14: MISCELLANEOUS PROVISIONS

1. Project Manager/Key Staff. Director reserves the right to evaluate and confer with Consultant regarding the project manager or other key staff assigned by Consultant to perform the work under this Agreement. Consultant shall replace the project manager or key staff upon Director’s request due to Director’s concern about their performance, or City shall have the right to terminate this Agreement. Otherwise, no change in assignment by the Consultant may occur without prior written approval of the City.

2. Consultant Services Only. Consultant is employed to render professional services only and any payments made to Consultant are compensation solely for such professional services.

3. Independent Contractor. In the performance of this Agreement, it is expressly understood that Consultant, including each of Consultant’s employees, agents, subcontractors or others under Consultant’s supervision or control, is an independent contractor solely responsible for its own acts and omissions, and shall not be considered an employee of the City for any purpose. Consultant agrees to comply with AB5, codified at Labor Code section 2750.3, and shall indemnify, defend and hold harmless the City, its officials, officers, employees, and agents against any claim or liability, including attorneys’ fees and costs, arising in any manner related to this Agreement that an employee, agent or others under Consultant’s supervision or control was misclassified.

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

5. Subcontractors. Consultant shall obtain prior approval of the City prior to subcontracting of any work pursuant to this Agreement. If at any time, the City determines any subcontractor is incompetent or unqualified, Consultant will be notified and will be expected to immediately cancel the subcontract. Consultant shall require and verify that all subcontractors maintain insurance meeting all of the requirements stated herein, including naming the City of Santa Cruz, its officers, officials, employees, agents, and volunteers as additional insureds. Any modification to the insurance requirements for subcontractors must be agreed to by the City in writing.

6. Assignment. This Agreement shall not be assigned without first obtaining the express written consent of the Director or after approval of the City Council. Neither party may assign this Agreement unless this Agreement is amended in accordance with its terms.

7. Conflicts of Interest. Consultant agrees to comply with conflict of interest lawsin performing the work and services under this Agreement. Consultant covenants (on behalf of Consultant and Consultant’s employees, agents, representatives, and subcontractors) that there is no direct or indirect interest, financial or otherwise, which would conflict in any manner or degree with the performance of services required under this Agreement. Consultant acknowledges and agrees to comply with applicable provisions of conflict of interest law and regulations, including the CA Political Reform Act, Sections 1090 and 87100 of the Government Code, and the City’s conflict of interest

14.8 City of Santa Cruz Professional Services Agreement for Application and Project Support January 2024 Page 7
code. Consultant will immediately advise City if Consultant learns of a conflicting financial interest of Consultant during the term of this Agreement.

8. City Property. The work, or any portion, of Consultant in performing this Agreement shall become the property of City. The Consultant may be permitted to retain copies of such work for information and reference in connection only with the provision of services for the City. All materials and work product, whether finished or unfinished, shall be delivered to City upon completion of contract services or termination of this Agreement for any reason.

Consultant acknowledges and agrees that the work product shall be considered a work made for hire within the meaning of the patent and copyright laws of the United States; and Consultant agrees that all copyrights which arise from creation of project-related documents and materials pursuant to this Agreement shall be vested in the City and Consultant waives and relinquishes all claims to copyright or other intellectual property rights in favor of City. Any work product related to this Agreement shall be confidential, not to be used by the Consultant on other projects or disclosed to any third party, except by agreement in writing by the City, or except as otherwise provided herein.

Consultant’s final deliverables shall comply with Section 508 (29 U.S.C. Section 794d) accessibility requirements, as applicable.

9. Intellectual Property and Indemnity. Consultant represents to City that, to the best of Consultant’s knowledge, any Intellectual Property (including but not limited to: patent, patent application, trade secret, copyright and any applications or right to apply for registration, computersoftware programs or applications, tangible or intangible proprietary information, or any other intellectual property right) in connection with any services and/or products related to this Agreement does not violate or infringe upon any Intellectual Property rights of any other person or entity.

To the fullest extent permitted by law, Consultant agrees to indemnify, defend, and hold harmless City, its officials, officers, employees, and agents, from any and all claims, demands, actions, liabilities, damages, or expenses (including reasonable attorneys’ fees and costs) arising out of a claim of infringement, actual or alleged, direct or contributory, of any Intellectual Property rights in any way related to Consultant’s performance under this Agreement or to the City’s authorized intended or actual use of Consultant’s product or service under this Agreement. This provision shall survive termination or expiration of this Agreement.

If any product or service becomes, or in the Consultant’s opinion is likely to become, the subject of a claim of infringement, the Consultant shall, at its sole expense: (i) provide the City the right to continue using the product or service; or (ii) replace or modify the product or service so that it becomes non-infringing; or (iii) if none of the foregoing alternatives are possible even after Consultant’s commercially reasonable efforts, in addition to other available legal remedies, City will have the right to return the product or service and receive a full or partial refund of an amount equal to the value of the returned product or service, less the unpaid portion of the purchase price and any other amounts, which may be due to the Consultant. City shall have the right to retrieve its data and proprietary information at no charge prior to any return of the product or termination of service.

10. Confidentiality.
a. Consultant shall not acquire any ownership interest in data and information (“City Data”) received by Consultant from City, which shall remain the property of the City. Certain information may be considered confidential (“Confidential Information”). Confidential Information shall mean all information or proprietary materials (in every form and media) not generally known to the public and which has been or is hereafter disclosed or made available directly or indirectly to Consultant through any means of communication, either verbally or in writing even if it has not been designated in writing as “Confidential” to Consultant in connection with this Agreement. Unless otherwise required by law, Consultant shall not, without City’s written permission, use or disclose City Data and/or Confidential Information other than in the performance of the obligations under this Agreement. As between Consultant and City, all City

14.9 City of Santa Cruz Professional Services Agreement for Application and Project Support January 2024 Page 8
Confidential Information shall remain the property of the City. Consultant shall not acquire ownership interest in the City’s Confidential Information.
b. Consultant shall be responsible for ensuring and maintaining the security and confidentiality of City Data and Confidential Information, protect against any anticipated threats or hazards to the security or integrity of City Data and Confidential Information, protect against unauthorized access to or use of City Data and Confidential Information that could result in substantial harm or inconvenience to City or any end users; and ensure the proper return and/or disposal of City Data and Confidential Information upon termination of this Agreement with notice to the City.
c. Consultant shall take appropriate action to address any incident of unauthorized access to City Data and Confidential Information, including addressing and/or remedying the issue that resulted in such unauthorized access, notifying City as soon as possible of any incident of unauthorized access to City Data and Confidential Information, or any other breach in Consultant’s security that materially affects City or end users; and be responsible for ensuring compliance by its officers, employees, agents, and subcontractors with the confidentiality provisions hereof. Should confidential and/or legally protected City Data be divulged to unauthorized third parties, Consultant shall comply with all applicable federal and state laws and regulations, including but not limited to California Civil Code sections 1798.29 and 1798.82 at Consultant’s sole expense. Consultant shall not charge City for any expenses associated with Consultant’s compliance with these obligations.

d. Consultant shall defend, indemnify and hold harmless City, its officials, officers, employees and agents against any claim, liability, loss, injury or damage (including attorneys’ fee and costs) arising out of, or in connection with, the unauthorized use, access, and/or disclosure of City Data and/or Confidential Information by Consultant and/or its agents, employees or subcontractors, excepting only loss, injury or damage caused by the sole negligence or willful misconduct of the City. This provision shall survive the termination or expiration of this Agreement.

11. Consultant's Records. Consultant shall maintain accurate accounting records and other written documentation pertaining to the costs incurred relating to this Agreement for examination and audit by the City, State, or federal government, as applicable, during the period of this Agreement, and for a period of at least five (5) years from the date of the final City payment for Consultant's services, or date of the termination of this Agreement, whichever is later. If Consultant engages a subcontractor to perform work related to this Agreement with a cost of $10,000 or more over a 12-month period, such subcontract shall contain these same requirements. This provision shall survive the termination of this Agreement.

12. California Public Records Act. City is a public agency subject to the disclosure requirements of the California Public Records Act (“CPRA”). If Consultant’s proprietary information is contained in documents or information submitted to City, and Consultant claims that such information falls within one or more CPRA exemptions, Consultant must clearly mark such information “Confidential and Proprietary,” and identify the specific lines containing the information. In the event of a request for such information, City will make best efforts to provide notice to Consultant prior to such disclosure. If Consultant contends that any documents are exempt from the CPRA and wishes to prevent disclosure, it is required to obtain a protective order, injunctive relief, or other appropriate remedy from a court of law in Santa Cruz County before the City is required to respond to the CPRA request. If Consultant fails to obtain such remedy within the time the City is required to respond to the CPRA request, City may disclose the requested information without any liability. Consultant further agrees that it shall defend, indemnify and hold City harmless against any claim, action or litigation (including but not limited to all judgments, costs, and attorney’s fees) that may result from denial by City of a CPRA request for information arising from any representation, or any action (or inaction), by the Consultant.

14.10 City of Santa Cruz Professional Services Agreement for Application and Project Support January 2024 Page 9

13. Compliance with Laws. All activities of Consultant, its employees, subcontractors and/or agents will be carried out in compliance with all applicable federal, state, and local laws and regulations. Consultant further agrees to comply with the covenant of good faith and fair dealing and other provisions of Santa Cruz Municipal Ordinance chapter 3.09, or otherwise Consultant may be subject to penalties including being declared an irresponsible contractor.

14. Licensure. Consultant agrees that Consultant, its subcontractors and/or agents (if any) has/have complied with all applicable federal, state, and local licensing requirements and agrees to provide proof of a current City of Santa Cruz Business Tax Certificate if:
• Consultant, its subcontractor(s) and agent(s) or its business is/are located in the City of Santa Cruz; • Will perform actual work in the City of Santa Cruz for 6 or more days annually; or • Will use company vehicles to deliver within the City of Santa Cruz for 6 or more days annually.

For additional information and licensing requirements, view the City’s Business Licenses and Permits webpage or call the Revenue and Taxation division at 831/420-5070.

15. Living Wage. Every contract for services to the City for $10,000 or more, is subject to City of Santa Cruz Living Wage Ordinance number 2000-25. If applicable, Consultant agrees to comply with the requirements of the Living Wage ordinance as provided in Santa Cruz Municipal Code Chapter 5.10.

16. Prevailing Wages for Public Work. To the extent that the work or services to be performed under this Agreement may be considered a “public work” (construction, alteration, demolition, or repair work) pursuant and subject to Labor Code section 1720 et seq., Consultant (and any subconsultant performing the work or services) shall conform to any and all prevailing wage requirements applicable to such work/and or services under this Agreement. Consultant (and any subconsultant) shall adhere to the prevailing wage determinations made by the Director of Industrial Relations (DIR) pursuant to California Labor Code Part 7, Chapter 1, Article 2, applicable to the work, if any. All workers employed in the execution of a public works contract (as such term is defined California Labor Code section 1720 et seq. and section 1782(d)(1)) must be paid not less than the specified prevailing wage rates for the type of work performed. (CA Labor Code sections 1720, 1774 and 1782.) To the extent applicable to the scope of work and services under this Agreement, Consultant agrees to be bound by the state prevailing wage requirements, including, but not limited to, the following:
a. If a worker is paid less than the applicable prevailing wage rate owed for a calendar day (or any portion thereof), Consultant shall pay the worker the difference between the prevailing wage rate and the amount actually paid for each calendar day (or portion thereof) for which the worker(s) was paid less than the prevailing wage rate, as specified in Labor Code section 1775; b. Consultant shall maintain and make available payroll and worker records in accordance with Labor Code sections 1776 and 1812;
c. If Consultant employs (and/or is legally required to employ) apprentices in performing the work and/or services under this Agreement, Consultant shall ensure compliance with Labor Code section 1777.5; d. Consultant is aware of the limitations imposed on overtime work by Labor Code sections 1810 et seq. and shall be responsible for any penalties levied in accordance with Labor Code section 1813 for failing to pay required overtime wages;
e. Consultant shall post a copy of the applicable wage rates at each jobsite at a location readily available to its workers.

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f. Any failure of Consultant and/or its subconsultant to comply with the above requirements relating to a public work project shall constitute a breach of this Agreement that excuses the City’s performance of this Agreement at the City’s sole and absolute option and shall be at the sole risk of Consultant. Consultant on behalf of itself and any subconsultant, agree to indemnify, defend and hold harmless the City and its officials, officers, employees, and agents from and against any and all claims, liabilities, losses, costs, expenses, attorney’s fees, damages, expenses, fines, financial consequences, interest, and penalties, of any kind or nature, arising from or relating to any failure (or alleged failure) of the Consultant and any subconsultant to pay prevailing wages or to otherwise comply with the requirements of prevailing wage law relating to a public work.
g. Consultant acknowledges that it and/or any subconsultant may not engage in the performance of any contract for public work unless currently registered with the DIR and qualified to perform public work pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)].

17. Storm Water Requirements. To the extent applicable to the Scope of Work under this Agreement, Consultant, Consultant’s employees, subcontractors, and agents are required to abide by the applicable City of Santa Cruz Storm Water Best Management Practices (BMPs) for the duration of the work. The City’s mandatory Storm Water BMPs, which are listed according to the type of work, operations, or business, are located on the City website at: https://www.cityofsantacruz.com/government/city-departments/public-works/stormwater/bestmanagement-practices

18. Dispute Resolution. The Parties agree to attempt in good faith to resolve through negotiation any dispute, claim or controversy arising out of or relating to this Agreement. Either party may initiate negotiations by providing written notice in letter form to the other party, setting forth the subject of the dispute and the relief requested.

Promptly upon such notification, the Parties shall meet at a mutually agreeable time and place in order to exchange relevant information and perspective, and to attempt to resolve the dispute. In the event that no resolution is achieved, and if, but only if, the parties mutually agree, then prior to pursuing formal legal action, the parties shall make a good faith effort to resolve the dispute by non-binding mediation or negotiations between representatives with decision-making power, who, to the extent possible, shall not have had substantive involvement in the matters of the dispute. To the extent that the dispute involves or relates to a public works project, the Parties agree to attempt to resolve the dispute by complying with the claims process as set forth in Public Contract Code sections 9204(e), 20104-20104.6, but without waiving the requirements of the California Tort Claims Act, Gov’t Code section 800 et seq. unless otherwise agreed to by the Parties.

19. Force Majeure. Neither party hereto shall be considered in default in the performance of its obligation hereunder to the extent that the performance of any such obligation is prevented or delayed by an act of God, natural disaster, pandemic, acts of terrorism, war, a strike, lockout or other labor difficulty, or other peril, which is beyond the reasonable control of the affected party and without the negligence of the respective Parties. Each party hereto shall give notice promptly to the other of the nature and extent of any Force Majeure claimed to delay, hinder or prevent performance of the services under this Agreement. Each Party will, however, make all reasonable efforts to remove or eliminate such a cause of delay or default and will, upon the cessation of the cause, diligently pursue performance of its obligations in this Agreement. In the event either party is prevented or delayed in the performance of its respective obligation by reason of such Force Majeure, the only remedy is that there may be an equitable adjustment of the schedule based on City’s sole discretion.

20. Complete Agreement. This Agreement, along with any attachments, is the full and complete integration of the Parties’ agreement with respect to the matters addressed herein, and that this Agreement supersedes any previous written or oral agreements between the Parties with respect to the matters addressed herein. Unless otherwise stated,

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to the extent there is any conflict between this Agreement and any other agreement (written or oral), the terms of this Agreement shall control.

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

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

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

24. Contract Interpretation. Each party acknowledges that it has reviewed this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement.

25. MacBride Principles/Peace Charter. City of Santa Cruz Resolution NS-19,378 (7/24/90) encourages all companies doing business in Northern Ireland to abide by the MacBride Principles and Peace Charter.

26. Notices. If either party shall desire or is required to give notice to the other such notice shall be given in writing, via email, and concurrently delivered by: (a) personal delivery, in which case notice is effective upon delivery; (b) overnight courier (i.e., Federal Express) with charges prepaid or charged to the sender’s account, in which case notice is effective when delivered; (c) priority U.S. Mail, in which case notice shall be deemed delivered on the second business day after the deposit thereof with the U.S. Postal Service. Notices shall be addressed to recipient as follows:

To CITY:

Information Technology
Michael Schmidt
809 Center Street Room 8
Santa Cruz Ca
[email protected]
To CONSULTANT:
3Nineteen
Tony DellaTorre
235 Peachtree St Suite 403
Atlanta, GA 30303
[email protected]
Changes to the above information shall be given to the other party in writing ten (10) business days before the change is effective.

27. Counterparts. The Parties may execute this Agreement in two or more counterparts, which shall, in the aggregate, be deemed an original but all of which, together, shall constitute one and the same instrument. A scanned, electronic, facsimile or other copy of a party’s signature shall be accepted and valid as an original.

28. Warranty of Authority. The signatories to this Agreement warrant and represent that each is authorized to execute this Agreement and that their respective signatures serve to legally obligate their respective representatives, agents, successors and assigns to comply with the provisions of this Agreement. [SIGNATURES ON FOLLOWING PAGE]

14.13 City of Santa Cruz Professional Services Agreement for Application and Project Support January 2024 Page 12
Signature Requirements for Business Entity:
a. Corporation – 2 officer signatures required (one from each group, unless person signing holds officer positions in both Group 1 and 2):

Group 1: Chief Executive Officer, Chairman of the Board, President, or Vice President Group 2: Secretary, Assistant Secretary, Chief Financial Officer, Treasurer, Assistant Treasurer b. Partnership - Signature of General Partner, or signature of partner who is authorized to execute documents per the Certificate of Partnership. If authorized partner is a corporation, follow Corporation signature requirement. c. LLC- For a member-managed LLC, signature of any member. For a manager-managed LLC, signature of the manager. If the LLC has corporate officer designations, follow Corporation signature requirement.

See, City’s Signature Requirements for Business Entities for more information.

Approved As To Form:

By: _____________________________ Date: __________________ Stephanie Y. Hall, Office of the City Attorney

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

CONSULTANT
By: _____________________________ Date: __________________ Printed: ___________________________ Title: __________________ January 16, 2024

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EXHIBIT A: SCOPE OF WORK
The Scope of Work entails the provision of ad hoc support services for application and project-related support to the City of Santa Cruz Information Technology Department. Assistance will be delivered on an hourly rate basis, rather than by project, covering various applications and interfaces. Interactions are scheduled during regular business hours, with the possibility of occasional off-hours support as necessary. The scope of work is not confined to the specifics outlined below, and its evolution into project-oriented tasks will be determined by the needs articulated by the City of Santa Cruz.

Details for the support of various applications are outlined but not limited to the following support needs below:

Eden Enterprise Resource Planning Application Support:
• Offer ad hoc support and enhancement services as requested. • Address recurring processes for HR data from Eden to AD and AD data to Eden. • Assist with loading position data from xlsx into Eden. • Provide ad hoc support during Calendar Year-End as required. • Address ad hoc needs for UB enhancements and reports.

Tyler Cashiering Application Upgrade:
• Provide ad hoc support for the upgrade of Tyler Cashiering and respond to interface issues. • Address ad hoc interface support for Eden to Cashiering, CRW TrakIT to Eden, etc.

CRW TrakIT Land Use Management Application Support:
• Offer ad hoc support for Tech Fee and enhancements.
• Conduct ad hoc data cleansing, including extraction and evaluation of data quality for master data fixes.

Hylands – OnBase Document Management Application Support and Upgrade:
• Provide ad hoc support for the Public Request Module.

Gasboy (EKOS) Application Support:
• Offer ad hoc support and enhancements.
• Beacon and AMI Integrations:
• Provide ad hoc support and enhancements.

MyCity of Santa Cruz Application Support:
• Address ad hoc interface support and enhancements.

General IT Support:
• Assist City IT with ad hoc support for various applications and interfaces.

AIMS Parking Application Support and Upgrade:
• Implement AIMS upgrade as needed.
• Implement LPR solution as needed.

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• Provide ad hoc support for current AIMS.
• Provide ad hoc support for upgraded AIMS and LPR.

Cityworks Computerized Maintenance Management System (CMMS) Application Implementation:
• Implement Cityworks and address ad hoc needs for migrating remaining departments (Fleet and Wharf) from CMMS.

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EXHIBIT B: FEE SCHEDULE
Fiscal
Year Title Hourly Rate
Total
Hours
Total
Amount
(Not to
Exceed)
FY24 Sr. Applications and Project Consultant $180.00/hour 972 $175,000 FY25 Sr. Applications and Project Consultant $180.00/hour 1500 $270,000 FY26 Sr. Applications and Project Consultant $180.00/hour 1500 $270,000 FY27 Sr. Applications and Project Consultant TBD TBD TBD FY28 Sr. Applications and Project Consultant TBD TBD TBD

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EXHIBIT C: INSURANCE REQUIREMENTS
Consultant shall procure and maintain insurance against claims for injuries to persons or damages to property and otherwise which may arise from or in connection with the performance of the work under this Agreement and the results of that work by Consultant, its agents, representatives, employees, or subcontractors.

A. CERTIFICATE REQUIREMENTS
The City will be issued a Certificate of Insurance (a Memorandum of Understanding will not be accepted) with the following minimum requirements:
• Certificate(s) will show current policy number(s) and effective dates, • Coverage and policy limits will meet, or exceed, requirements below, • The Certificate Holder will be City of Santa Cruz, Risk Management, 1200 Pacific Ave., Suite 290, Santa Cruz, CA 95060,
• Certificate will be signed by an authorized representative, • An endorsement, if required below, will be provided to show the City, its officers, officials, employees, and volunteers as additional insureds, and
• Coverages must be maintained during the term of the Agreement with the City, unless a longer duration is required as specified below.

B. MINIMUM SCOPE AND LIMITS OF INSURANCE
Consultant acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. If Consultant maintains broader insurance coverage and/or higher limits than the minimums shown below, the City of Santa Cruz requires and shall be entitled to the broader insurance coverage and/or higher limits maintained by Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Santa Cruz.

Coverage will be at least as broad as:
• COMMERCIAL GENERAL LIABILITY (CGL): $1,000,000 PER OCCURRENCE; $2,000,000 AGGREGATE Proof of coverage for $1 Million per occurrence and $2 Million in the aggregate including products and completed operations, property damage, bodily injury, personal and advertising injury will be provided on Insurance Services Office (ISO) Form CG 00 01 covering CGL. • PROFESSIONAL LIABILITY (ERRORS AND OMISSIONS): $2,000,000 PER OCCURRENCE OR CLAIM, $2,000,000 AGGREGATE.

Consultant will maintain insurance appropriate to Consultant’s profession; with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after date of completion of the services under this Agreement. If coverage is canceled or non-renewed and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date or start of work date, Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of the contract of work.
• AUTOMOBILE LIABILITY:

Proof of coverage for $1,000,000 provided on ISO Form Number CA 00 01 covering any auto (Code 1), or if Consultant has no owned autos, hired, (Code 8) and non-owned autos (Code 9), per accident for bodily injury and property damage.
• WORKERS’ COMPENSATION AS REQUIRED BY THE STATE OF CALIFORNIA, WITH STATUTORY LIMITS, AND EMPLOYER’S LIABILITY INSURANCE: $1,000,000 per accident for bodily injury or disease.

14.18 City of Santa Cruz Professional Services Agreement for Application and Project Support January 2024 Page 17
The Worker’s Compensation policy must be endorsed with a waiver of subrogation in favor of the City for all work performed by the Consultant and its employees. (Not required if Consultant provides written verification it has no employees) - If Consultant has no employees, Consultant shall complete and sign a Workers’ Compensation Exemption Declaration and Release of Liability.

C. OTHER INSURANCE PROVISIONS
The insurance policies are to comply with the following provisions:
• ADDITIONAL INSURED STATUS
The City, its officers, officials, employees, agents, and volunteers are to be covered as additional insureds on the CGL with respect to liability arising out of work or operations performed by or on behalf of Consultant including materials, parts, or equipment furnished in connection with such work or operations, products and completed operations. General liability coverage will be provided in the form of an endorsement to Consultant’s insurance at least as broad as ISO Form CG 20 10 11 85, or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 (if a later edition is used).
o PRIMARY COVERAGE
For any claims related to this Agreement, Consultant’s and all subcontractor’s insurance coverage will be primary and non-contributory as respects the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents, or volunteers will be excess of Consultant’s and all subcontractor’s insurance and will not contribute with it.
• NOTICE OF CANCELLATION
Each insurance policy required above shall state that the coverage shall not be canceled, except with notice to the City.
• WAIVER OF SUBROGATION
Consultant hereby grants to the City a waiver of any right to subrogation, except as otherwise not applicable, which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss, including attorney’s fees under such insurance. Consultant agrees to obtain any endorsement that may be necessary to effectuate this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. • EXCESS LIABILITY/UMBRELLA INSURANCE POLICIES
Consultant may use excess liability/umbrella policies to meet the required liability limits on the condition that they provide all of the insurance coverages required herein, including, but not limited to, primary and non-contributory, additional insured, Self-Insured Retentions (SIRs), indemnity, and defense requirements. The excess liability/umbrella insurance policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying CGL insurance. No insurance policies maintained by the additional insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Consultant’s primary and excess liability policies are exhausted. • DURATION OF COVERAGE
CGL & Excess Liability/Umbrella policies for any construction related work, including, but not limited to, maintenance, service, or repair work, shall continue coverage for a minimum of 5 years for Completed

14.19 City of Santa Cruz Professional Services Agreement for Application and Project Support January 2024 Page 18
Operations liability coverage. Such Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. • SELF-INSURED RETENTIONS (SIR)
Self-insured retentions must be declared to and approved by the City. City may require Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related expenses.

The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.
• ACCEPTABILITY OF INSURERS
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A: VII, unless otherwise acceptable to the City.
• CLAIMS MADE POLICIES
If any of the required policies provide coverage on a claims-made basis:

1. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.

2. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of contract work. • VERIFICATION OF COVERAGE
Consultant will furnish the City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy (and CPL, automobile and any Excess Liability/Umbrella policies, as applicable) listing all policy endorsementsto be approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning will not waive the Consultant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

D. SUBCONTRACTORS
Consultant shall include their subcontractor(s) as additional insured(s) under the policies or shall furnish separate certificates and endorsements for each contractor and subcontractor. Consultant shall require and verify that all contractors and subcontractors maintain insurance meeting all the requirements stated herein, and Consultant shall ensure that City, its officers, officials, employees, agents, and volunteers are named as additional insureds on insurance required from its contractor(s) and subcontractor(s).

E. SPECIAL RISKS/CIRCUMSTANCES
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances and provide notice to Consultant.

14.20 City Council

AGENDA REPORT
DATE: 01/10/2024
AGENDA OF: 01/23/2024
DEPARTMENT: Police
SUBJECT: Fiscal Year 2023-24 California Department of Justice, Office of Attorney General, Tobacco Program Grant Award (PD)
RECOMMENDATION: Motion to:
1) Adopt a resolution authorizing the acceptance of the California Department of Justice, Office of Attorney General, Tobacco Program Grant pursuant to the California Healthcare, Research, and Prevention Tobacco Tax Act of 2016, and authorizing and directing the City Manager to execute the contract and agreements associated with acceptance of this grant, and 2) Adopt a resolution amending the FY 2024 budget in the amount of $256,568 for the FY 2024 Tobacco Program Grant.

BACKGROUND: In accordance with the State Budget Act and the California Healthcare, Research and Prevention Tobacco Tax Act of 2016, as added by Proposition 56, the Tobacco Grant Program, financed with funds made available through the Department of Justice (DOJ), administered by the Office of the Attorney General is provided to eligible local law enforcement agencies for qualifying tobacco enforcement purposes. Tobacco Grant Program funds will be used for local law enforcement activities that target retailers for illegal sales, and/or marketing of tobacco products and the purchase of equipment and materials to complete the scope of work.

Between 2018 and 2020, the Santa Cruz Police Department (SCPD) was awarded a $463,754 DOJ Tobacco Program Grant focused on local law enforcement education and prevention programs within local school districts and enforcement activities for the sale and use of tobacco products. Within two months of grant funding approval, The Santa Cruz Police Department hired two community service officers (CSO) with the goal of educating approximately 4,000 students over a two-year period on the health risks and harms of tobacco use. CSOs also conducted tobacco retail enforcement campaigns and a Living Clean video contest. Funding also provided police officers overtime pay for the purpose of tobacco enforcement activities.

DISCUSSION: California’s 2022 statewide ban on the sale of flavored tobacco products further supports the existing Santa Cruz countywide and citywide ban on all flavored tobacco products.

Flavored tobacco products, including flavored e-cigarettes and menthol cigarettes, as well as tobacco product flavor enhancers, are impacting the health of the community’s youth. The Journal of the American Medical Association states 4 out of 5 kids who have used tobacco, started with a flavored product.

15.1 A recent report by the Center for Disease Control cited staggering numbers related to students and e-cigarette use. In 2022, 2.55 million U.S. high school (14.1%) and middle school (3.3%) students reported current e-cigarette use, with nearly half reporting frequent use. Of the current e-cigarette users, 84.9% used flavored products. A 2022-23 California School Climate, Health, and Learning Survey of secondary students in Santa Cruz City School District suggest a similar trend, reporting that 12% of high school juniors identify themselves as having “current use of vaping products” (past 30 days).

While California has implemented its own ban, the County and City of Santa Cruz hold their own local ordinances on flavored tobacco products. May retailers may find the different laws confusing or are unaware of the laws altogether. Legislation empowers local law enforcement agencies to enforce the flavored tobacco ban. However, the COVID-19 pandemic and challenges in retaining and recruiting staff at the city and county levels have been palpable and have led to decreased enforcement activities and compliance checks over the last few years. SCPD has had to eliminate specialized teams and reduce assignments to maintain an adequate number of patrol officers in the field. The City of Santa Cruz has 50 licensed retail tobacco outlets, with several in proximity to the 21 Santa Cruz city public schools and its 7,000 K-12 students or within lowincome or minority communities. The Tobacco Program Grant would allow the SCPD to expand its services to focus on illegal sales of flavored tobacco products and increase long-term compliance from the numerous tobacco retailers established within the city.

Within two months of the fully executed Memorandum of Understanding (MOU), the SCPD expects to hire, train, and prepare one CSO to address tobacco retailer compliance. Within six months, a CSO will mail out education/enforcement mailers and initiate the evaluation of tobacco retail locations. Throughout the remainder of the grant period, a CSO and assistance from one police officer will inspect tobacco retail locations, deploy minor decoy operations, and enforce non-compliance at all 50 licensed tobacco retail locations until the completion of the grant term.

Pursuant to the Tobacco Tax Act of 2016, the DOJ Tobacco Program Grant will provide the Santa Cruz Police Department with $256,568 in funding over a 24-month period, beginning on November 1, 2023, and ending October 31, 2025, for the expenditures in accordance with a MOU between the DOJ and the Santa Cruz Police Department. The award allows for $256,568 in personnel services and will cover one Community Service Officer’s salary and benefits, and a specific amount of overtime for one sworn police officer and one community service officer. An additional award amount of $2014 will cover operating expenses and equipment, focusing on retailer education and community outreach.

The SCPD anticipates it will exhaust the available Tobacco Program Grant funds over the 24- month term.

FISCAL IMPACT: A total of $256,568 grant funds will be awarded, with no local match required.

Prepared By:

Catherine Brothers
Principal Management
Analyst
Submitted By:

Bernie Escalante
Chief of Police
Approved By:

Matt Huffaker
City Manager

15.2 ATTACHMENTS:

1. RESOLUTION.DOCX

2. MEMORANDUM OF UNDERSTANDING DEPARTMENT OF JUSTICE AND SANTA CRUZ POLICE DEPARTMENT.DOCX

3. BUDGET ADJUSTMENT.PDF

4. SUMMARY OF AWARD.PDF

15.3 RESOLUTION NO. NSRESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ TO ACCEPT GRANT FUNDS IN THE AMOUNT OF $256,567 FROM THE STATE OF CALIFORNIA

DEPARTMENT OF JUSTICE, OFFICE OF ATTORNEY GENERAL, TOBACCO GRANT

PROGRAM
WHEREAS, the Santa Cruz Police Department looks to leverage grant opportunities to provide financial resources to fund personnel costs and for the procurement of necessary equipment to meet their goals; and
WHEREAS, the California Department of Justice, Office of Attorney General Tobacco, Grant Program has determined the City of Santa Cruz to be eligible for a grant funding allocation of $256,568 over a 24-month period, starting on November 1, 2023, and ending October 31, 2025, for enforcement activities in accordance with the California Healthcare, Research and Prevention Tobacco Tax Act of 2016; and
WHEREAS, the award will be used to fund one community service officer position, provide funds for a police officer and a community service officer overtime pay, and purchase necessary equipment for the purposes of the program for a 24-month period; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Santa Cruz hereby authorizes and directs the City Manager to execute all necessary agreements and contracts to accept the California Department of Justice, Office of Attorney General, Tobacco Grant Program (DOJ-PROP56-2023-24-1-031).

PASSED AND ADOPTED this 9th day of January, 2024, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

15.4 Tobacco Grant Program
Grant Services Branch – Local Assistance
Division of Operations
Santa Cruz Police Department DOJ-PROP56-2023-24-1-031

MEMORANDUM OF UNDERSTANDING

PURPOSE
This Memorandum of Understanding (“MOU”) is entered into by the Department of Justice (“DOJ”) and the Santa Cruz Police Department (“Grantee”), for the purpose of disbursing grant funds to Grantee for reimbursement of expenditures in compliance with the California Code of Regulations and the Fiscal Year 2023-24 Grantee Handbook.

Commencing January 1, 2023, the California Code of Regulations, Title 11, Division 1, Chapter 5:

Department of Justice Tobacco Grant Program (“TGP Regulations”) shall govern the policies and procedures of the Tobacco Grant Program.

The TGP Regulations, Request for Proposals, Grantee Handbook (dated March 2023), and Summary of Award document are hereby incorporated by reference into this MOU. Grantee will expend funds for the purposes identified in the approved Summary of Award document. Reimbursements are to be funded under the California Healthcare, Research and Prevention Tobacco Tax Act of 2016, approved by the voters as Proposition 56.

COST REIMBURSEMENT
DOJ agrees to reimburse Grantee in arrears, for Grantee’s actual expenditures in performing the project or scope of work included in the approved Summary of Award document. Reimbursements will be made upon receipt of invoices from Grantee and approval of the invoices by DOJ, in accordance with the reimbursement procedures set forth in the TGP Regulations and Grantee Handbook.

BUDGET CONTINGENCY CLAUSE
It is mutually agreed, if the Budget Act of the current fiscal year and/or any subsequent years covered under the MOU does not appropriate sufficient funds, the MOU shall be of no further force and effect.

In the event this situation occurs, DOJ shall have no liability to reimburse/pay any funds to Grantee, or to furnish any other considerations under this MOU. As well, Grantee shall not be obligated to continue performing the provisions of this MOU, for which the Grantee would have been reimbursed.

If funding for any fiscal year is reduced or deleted in the Budget Act for purposes of this MOU, DOJ shall have the option to either cancel this MOU with no liability occurring to DOJ, or offer an addendum to the Grantee to reflect the reduced amount.

15.5 Santa Cruz Police Department DOJ-PROP56-2023-24-1-031

PROJECT BREACH-TERMINATION
Failure of a Grantee to comply with this MOU or the TGP Regulations shall be treated by DOJ as a breach of contract. If an act of noncompliance occurs, DOJ may take actions described within the TGP Regulations, including termination. DOJ may terminate this MOU and be relieved of any obligation to disburse grant funds to Grantee should Grantee fail to perform the scope of work at the time and in the manner provided in this MOU.

MISCELLANEOUS PROVISIONS
Addendum – No addendum or variation of the terms of this MOU is valid unless made in writing, and signed by the duly authorized representatives of the parties.

Assignment – This MOU is not assignable by Grantee in whole or in part.

Indemnification – Grantee agrees to indemnify and hold harmless DOJ, its officers, agents and employees from all claims, liabilities, or losses in connection with the performance of this MOU.

Certifications – Grantee certifies that it does not receive funding from a manufacturer, distributor, or advertiser of Cigarettes or Tobacco Products. Grantee further certifies that grant funds will not supplant existing state or local funds dedicated for the same purpose.

TERMS
Grant Duration: 11/1/2023 – 6/30/2027
Award Amount
Category of Expenditure Budget
FY 2023-2024
Budget
FY 2024-2025
Budget
FY 2025-2026
Budget
FY 2026-2027
Personal Services $87,912 $133,312 $33,330 $
Operating Expenses and
Equipment $1,882 $0 $132 $
Administrative Costs (Not to
Exceed 5%) $0 $0 $0 $
TOTAL AWARD AMOUNT $256,568
The time limit for reimbursements against this award ends 6/30/2027. Requests for reimbursement received after 7/15/2027 cannot be considered by DOJ.

GRANTEE CONTACT INFORMATION
Catherine Brothers, Principal Management Analyst
Santa Cruz Police Department
155 Center Street
Santa Cruz, CA 95060
408-792-5040
[email protected]

15.6 Santa Cruz Police Department DOJ-PROP56-2023-24-1-031

AUTHORIZATION
DOJ and Grantee, by their duly authorized officials, have executed this MOU on the respective dates indicated below. This MOU and any future addendums shall be e-mailed to [email protected], care of the Division of Operations, Grant Services Branch, Local Assistance Unit, Tobacco Grant Program, and will become fully executed upon completion of signatures from all parties.
___________________________________ ___________________ NAME: Date
Title:

Agency:
___________________________________ ___________________ NAME: Date
Title:

Agency:
___________________________________ ___________________ NAME: Date
Title:

Agency:
______________________________ ___________________
JENNIFER IVERY JOHNSON, Grant Manager Date
Division of Operations
California Department of Justice
___________________________________ ___________________ STACY HEINSEN, Administrative Manager Date
Division of Operations
California Department of Justice
__________________________________ ___________________
CHRIS RYAN, Chief Date
Division of Operations
California Department of Justice

15.7 City of Santa Cruz

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 Clear Form
2024
01/04/2023
FY24 Tobacco Enforcement Grant
101-20-22-2104-43210 g202403-126-1016-0165 DOJ Tobacco Grant FY2023-24 256,568 256,568
101-20-22-2104-52122 g202403-100-2010-0 Labor 254,554
101-20-22-2104-54990 g202403-100-2020-0 Supplies and Services 2,014 256,568
0 Catherine
Brothers
Digitally signed by
Catherine Brothers
Date: 2024.01.03
16:41:59 -08'00'
Bernie
Escalante
Digitally signed by
Bernie Escalante
Date: 2024.01.03
17:01:13 -08'00'
Edward
Torres
Digitally signed by Edward Torres
DN: cn=Edward Torres, o=City of Santa Cruz, ou,
[email protected], c=US
Date: 2024.01.10 13:58:01 -08'00'
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: 2024.01.10 14:05:41 -08'00'

15.8 Tobacco Grant Program
Grant Services Branch – Local Assistance
Division of Operations
10/11/2023 Page 1 of 4
_
SUMMARY OF AWARD – DOJ-PROP56-2023-24-1-031
Santa Cruz Police Department
I. Award Summary
Requested Amount: $476,198 Award Amount: $256,568
Removed from Award:

None
Reduced Line Items:

Reduced to one CSO
Other Changes or Stipulations:

As noted below, patrols and citations for tobacco possession and use is not permitted. Enforcement activities must target retailers.

II. Notes for All Grantees
a. Enforcement Activities
i. Authorized - If enforcement activities were proposed, only activities that target retailers for illegal sales/marketing of tobacco products were approved. ii. Unauthorized - Community and school patrols or other enforcement actions related to tobacco use and possession are not permitted. b. Removed Personnel or Other Items
i. If specific personnel or other items were removed and not funded, they cannot be reinstated during the grant term.
c. Reduced Line Items
i. If a specific line item was reduced, the intention was to not fully fund it or the activities it represents.
d. Mileage/Fuel
i. Budgets that include mileage or fuel were amended to include both together in one line item for flexibility and the type of backup documentation available.

Mileage is limited to the state rate at the time of travel. e. Equipment
i. All equipment items must be purchased during that first year of the grant. Their awarding is intended to support project goals and be used to support grant activities during the grant term.

15.9 10/11/2023 Page 2 of 4
Please reference the Tobacco Grant Program Grantee Handbook for more information regarding allowable costs under this grant cycle.

III. Goals and Budget Narrative
a. Based on the information contained in page 1, we expect some goals, objectives, and deliverables stated in your proposal may have been removed or adjusted. With that in mind, please re-state your funded goals, objectives, deliverables, and budget narratives using the template below so they are reflective of required changes noted on page 1. b. The Tobacco Grant Program will reference this document when determining whether an activity was approved for funding and is reimbursable.
c. Completion of this summary is required in order for DOJ to fully execute the Memorandum of Understanding and become part of the Grant Agreement.

Goal 1 Title: Tobacco Retail Education and Enforcement
Goal Description: Prioritize tobacco retail compliance, banning flavored tobacco and illegal sales to minors through educational/enforcement mailers, customized compliance packets, and enforcement.

Measurable Outcome: One (1) CSO will address tobacco retail compliance at all fifty (50) tobacco retail locations within the city limits of Santa Cruz.

Timeline: Within two (2) months of the fully executed MOU, the SCPD expects to hire, train and prepare one (1) CSO to address tobacco retailer compliance. Within six (6) months, one (1) CSO will mail out education/enforcement mailers and initiate the evaluation of tobacco retail locations. Throughout the remainder of the grant period, one (1) CSO and assistance from one (1) police officer will inspect tobacco retail locations, deploy minor decoy operations, and enforce non-compliance at all fifty (50) licensed tobacco retail locations until the completion of the grant term.

Narrative Description: To maximize tobacco retailer compliance, the SCPD will utilize a four-stage approach:

1. Mailers sent to all fifty (50) tobacco retailers within the city limits of Santa Cruz to inform retailers of current state laws and local ordinances regarding flavored tobacco bans and illegal sales to minors.

2. One (1) CSO, with the assistance of one (1) police officer, will evaluate all fifty (50) tobacco retailers through site visits, proximity to schools, and sales behavior to assess risk level

3. Minor decoy operations will be deployed once at all fifty (50) retail locations.

4. Tobacco license inspections will be conducted at all fifty (50) retail locations to identify any illegal possession or sale of banned tobacco products.

As a result of minor decoy operations and/or inspections, one (1) CSO will apply penalties to retailers, their agents, or their employees who sell, offer

15.10 10/11/2023 Page 3 of 4
for sale, or possess with intent to sell or offer for sale flavored tobacco products or sell tobacco products to minors.

Tobacco retailer locations assessed as high-risk will receive additional target enforcement operations (i.e., minor decoy, inspections, enforcement letters).

One (1) CSO will create mailers and custom compliance packets, track site visits, report on license inspections and minor decoy operations, and maintain enforcement records.

City Code Compliance will support SCPD CSO to enforce existing laws to ensure compliance with tobacco laws, ordinances, and regulations. They will also analyze any gaps in the law that can be adjusted through local ordinances. Any identified discrepancies will be brought forward to the city attorney to create thoughtful ordinance revisions.

Goal 2 Title: Tobacco-Related Community Outreach
Goal Description: Dedicate a minority portion towards community outreach in the form of table events, community meetings, and social media posts to educate the public about the statewide and citywide flavored tobacco ban and illegal tobacco sales to minors.

Measurable Outcome: One (1) CSO will participate in at least ten (10) community events, at least eight (8) community meetings, and post at least (22) social media posts.

Timeline: One (1) CSO will be expected to attend and participate in community outreach events, and meetings, and provide social media posts to the community no less than two months from their hire date. One (1) CSO will be expected to participate in community engagement activities no less than two months from their hire date and continue through the whole grant period.

Narrative Description: One (1) CSO will attend no less than (10) community outreach events over the course of the 24-month grant period. Events may include but are not limited to National Night Out, Truck-or-Treat, Open Streets, Downtown Business Association holiday events, Wharf-to-Wharf, Santa Cruz Triathlon, and Hot Rods on the Beach/Harbor.

One (1) CSO will attend bi-monthly Santa Cruz County Tobacco Education Coalition (TEC) community meetings, staffed by the Santa Cruz County Health Services Agency. The goal is to fortify a network with neighboring agencies and gain access to tools that address education about the dangers of tobacco, reduce youth access to tobacco, and engage Santa Cruz community members to participate in tobacco control activities.

One (1) CSO will provide informative social media posts on the SCPD social media platforms (Facebook, Instagram, etc.) no less than (1) post per month. Social media posts will cover topics that include statewide laws

15.11 10/11/2023 Page 4 of 4
and citywide ordinances banning flavored tobacco, illegal sales to minors, and the dangers of tobacco.

Budget Narrative: The grant requests $60,883 per year per full-time CSO position, for a total of $121,766 for one (1) CSO over a 24-month term.

The grant requests $46,566 per year for benefits per full-time CSO position, for a total of $93,131 for one (1) CSO over a 24-month term.

CSO overtime pay, no more than five (5) hours per month per officer, will allow CSOs to attend and participate in community outreach events, meetings, and other activities outside of regular enforcement operating hours. The grant requests $2581 for each full year of one CSO overtime for a total of $4,732 for one (1) CSO over a 24-month term.

One (1) police officer, on overtime, is expected to assist one (1) CSO at the problematic tobacco retail locations, minor decoy operations, inspections, and surveillance of stores near schools for no more than five (5) hours per week, starting within six (6) months of the fully executed MOU. The grant requests $23,283 for each full year of police overtime pay for a total of $34,925 over a 24-month term.

Other expenses of $2014 are requested for community outreach materials (e.g., popup tent, table, tablecloth, flyers, and promotional materials), tobacco retailer mailers, and retail compliance packets.

The total grant request is $256,568.

End

15.12 City Council

AGENDA REPORT
DATE: 01/04/2024
AGENDA OF: 01/23/2024
DEPARTMENT: Public Works
SUBJECT: Digester Gas Piping Rehabilitation Project (m409659) – Approval of Plans and Specifications, and Authorization to Award (PW)
RECOMMENDATION: Motion to approve the Plan and Specifications for the Digester Gas Piping Rehabilitation Project (m409659) and authorize the City Manager to award the construction contract to MBS Engineering, Inc. in the amount of $116,270.00 in a form acceptable to the City Attorney and authorize the Director of Public Works to execute change orders within the approved project budget.

BACKGROUND: The anaerobic digesters at the Wastewater Treatment Facility (WWTF) breakdown bio-solids to produce digester gas, which is used with natural gas to co-generate electricity at the Cogeneration Building for use in the plant. Digester gas is transported to the Cogeneration Building through a series of pipes, which run through the Gas Vault. The Gas Vault serves as both an access point for the pipes and a low point where the condensate from the biogas can drain and be pumped out. The piping running through the vault was installed in 1988 and has since experienced significant corrosion. A leak was discovered earlier in the year and a temporary fix was implemented.

DISCUSSION: The project consists of replacing two digester gas pipes elbows in the Gas Vault where the leaks were discovered. This will be accomplished by the fabrication and installation of the two pipe elbows to be replaced, and the implementation of a gas purge and bypass to ensure continued operations during construction.

The initial engineer’s estimate for this project was $94,000. Bids opened on December 19, 2023 were as follows:

MBS Engineering, Inc.: $116,270.00
AES Industrial: $201,566.00
MBS Engineering Inc. is the lowest responsible and responsive bidder.

Plans and specifications for the project can be found online at:
https://www.cityofsantacruz.com/publicworksprojects
FISCAL IMPACT: The project is funded in the FY 2024 Wastewater Enterprise Fund as WWTF - Equipment Replacement (m409659). There is no impact to the General Fund.

16.1 Prepared By:

Tim Wong
Assistant Engineer II
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

Plans and specifications for the project can be found online at:
https://www.cityofsantacruz.com/publicworksprojects

16.2 City Council

AGENDA REPORT
DATE: 01/04/2024
AGENDA OF: 01/23/2024
DEPARTMENT: Public Works
SUBJECT: Murray Street Bridge Seismic Retrofit and Barrier Replacement (c409321) – Reject All Bids (PW)
RECOMMENDATION: Motion to:
1) Reject all bids for the Murray Street Bridge Seismic Retrofit and Barrier Replacement Project (c409321), and
2) Authorize staff to re-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 Director of Public Works is authorized to execute change orders within the approved project budget.

BACKGROUND: The Murray Street Bridge Seismic Retrofit and Barrier Replacement Project (Project), which passes over the Santa Cruz Small Craft Harbor, requires a retrofit to bring the structure up to current seismic codes. This project has been long delayed, first because the state of California withheld matching funds during a prior financial crisis. When the state passed Proposition 1B matching funds became available again and the Project was restarted in 2007.

The Murray Street Bridge is the last bridge in the City of Santa Cruz that requires a seismic retrofit, the other bridges having been completed in the early 2000’s.

The necessary permits have been acquired (with the exception of the US Army Corps of Engineers, which is being drafted) and final plans prepared and accepted by CALTRANS this past summer. Negotiations with the Port District are also nearly complete, and the District is poised to initiate a $5,000,000 supporting project to relocate Port buildings and docks in advance of the City Project.

On June 14, 2023, Council authorized staff to advertise the Murray Street Bridge Seismic Retrofit and Barrier Replacement (c409321).

DISCUSSION: The approved project plans and specifications were advertised for bids in October 2023, and bids were publicly opened on December 5, 2023. Despite strong interest from several contractors, only one bid was received from Granite Construction for $57,209,609.10.

The engineer’s estimate was $26,307,242.

17.1 Staff has evaluated the bid and found it to be responsible and responsive, although the bid was higher than authorized by the Federal Highway Bridge Program funding. Regionally other entities including the Regional Transportation Commission, and County of Santa Cruz have experienced low bidder response and elevated project costs. Staff received feedback from Contractors that they are fully engaged in funded private and public projects. Adding to this is the fact that this particular project is exceptionally challenging with right of way complications and restrictive environmental and schedule conditions for in-water work. Construction staffing and materials are very much in demand and steel prices are volatile. This trend locally mirrors recent experiences statewide where projects are significantly exceeding cost estimates and there are fewer bids, even with outreach to contractors.

Staff recommend rejecting the bid and re-advertising the Project for construction. There is no guarantee that future costs will be lower, however additional funding from the federal Highway Bridge Program will be available with the proper and documented justification. Because there was only one bid and it was significantly over the engineer’s estimate, CALTRANS Division of Local Assistance (District 5) thought the justification was lacking to request additional funding at this time and directed staff to readvertise the Project.

Schedule: Staff anticipates re-advertising the project in February/March 2024, with a bid opening in June and award shortly thereafter. The current strategy envisions a contractor beginning work towards the end of summer, 2024 with the bulk of the in-water work beginning in the summer of 2025. The project is expected to take approximately 30 months for completion. Traffic will be limited to one-way eastbound for the majority of the project, with occasional complete closures for specific operations. Once a contractor is procured, staff will coordinate and perform a communication campaign to provide more specific impacts due to anticipated construction.

Plans and specifications for the project can be found online at:
https://www.cityofsantacruz.com/publicworksprojects
Once bids are received an amended funding request will be submitted through CALTRANs local assistance to the Federal Highway Bridge Program.

FISCAL IMPACT: Funds are available in FY 2024 Murray Street Bridge Seismic Retrofit and Barrier Replacement (c409321). Approximately 88% of Project funds come through reimbursement from the Federal Highway Bridge Program and state matching funds from Proposition 1B. City matching contributions would come from Fund 221-Gas Tax. There is no impact to the General Fund.

Prepared By:

Joshua Spangrud
Senior Civil Engineer
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

Plans and specifications for the project can be found online at:
https://www.cityofsantacruz.com/publicworksprojects

17.2 City Council

AGENDA REPORT
DATE: 01/04/2024
AGENDA OF: 01/23/2024
DEPARTMENT: Water
SUBJECT: Anadromous Salmonid Habitat Conservation Plan – Adoption of a Final Mitigated Negative Declaration and a Mitigation Monitoring and Reporting Program (WT)
RECOMMENDATION: Resolution adopting the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for the Anadromous Salmonid Habitat Conservation Plan.

BACKGROUND: Since 2001, City of Santa Cruz (City) staff, in coordination with staff from the California Department of Fish and Wildlife (CDFW) and the National Marine Fisheries Service (NMFS) have been developing an Anadromous Salmonid Habitat Conservation Plan (ASHCP or proposed project) for California Endangered Species Act (CESA) and federal Endangered Species Act (ESA) compliance for various City operation and maintenance activities that may adversely affect special-status anadromous salmonids. The anadromous salmonids covered by the ASHCP include Central California Coast coho salmon (coho) (Oncorhynchus kisutch), a state and federally listed endangered species, and the Central California Coast steelhead (steelhead) (Oncorhynchus mykiss), a federally listed threatened species.

In addition to other impacts, coho and steelhead are listed due to loss and degradation of suitable freshwater and estuarine habitats. Climate change driven events such as droughts, excessive rainfall, streambank erosion, and increased water temperatures, as well as activities undertaken by the City and by other entities in the City’s source water watersheds such as streamflow diversions, sediment impoundment and release of sediment below diversions, and removal of large woody material from streams all contribute to habitat degradation.

Habitat Conservation Plans (HCPs) are planning documents that are a required component of an incidental take permit (ITP) issued by the National Marine Fisheries Service or the U.S. Fish and Wildlife Service when an entity will conduct activities that result in take of a species listed or likely to be listed under the Endangered Species Act. They describe the affected species, the proposed activities, the effects those activities will have on the species, and how the entity will ensure that the plan implementation will be funded; and they contain conservation strategies that define how the HCP goals will be accomplished.

The ASHCP is a 30-year commitment that, when properly implemented, will provide assurance to the City that no additional restrictions or financial compensation will be required for the mitigation of impacts to covered special status salmonid species in light of unforeseen

18.1 circumstances. These assurances will allow the City to continue to undertake the essential activities necessary to maintain and operate the City water system and flood control channels.

COVERED ACTIVITIES:

The activities covered under the HCP are largely existing activities that the City has been undertaking for decades. They include the rehabilitation of City water diversion structures and pipelines, diversion and storage of water, operations and maintenance of the City’s water system and the flood control channels, the management of City lands and forest roads, and other related activities. Table 1 (attached) lists the covered activities and a brief description of each activity.

CONSERVATION STRATEGY:

The ASHCP includes a conservation strategy that is designed to avoid, minimize, and fully mitigate to the maximum extent practicable the effects of City activities (Covered Activities) on these special status salmonid species (Covered Species) and their habitat in support of the longterm viability of these populations within streams affected by the Covered Activities. This will primarily be achieved by, amongst other actions, reducing surface water diversions subsequent to approval of the City's petitions for change to its water rights (Water RIghts Project) by the California State Water Resources Control Board. Any effects remaining after avoidance and mitigation measures (AMMs) have been implemented will be compensated for by contributing to regional, non-flow conservation actions for steelhead and coho.

The conservation strategy is designed to address each stage of the salmonid life cycle, from spawning to incubation and rearing, to migration up and down the stream reaches and in and out of the ocean. It defines a set of key biological goals and objectives (Table 2, attached) that identifies desired conditions. Additionally, it addresses local limiting conditions such as the effects of diversions, habitat quality, and passage barriers, and it identifies specific measures to achieve these goals and objectives through efforts such as instream flow improvements during each life stage, improvement of City water diversion facilities to reduce sediment impoundment and improve anadromous fish passage, and best management practices for construction activities.

The conservation strategy includes a non-flow conservation program that will identify, fund, and implement restoration projects to address the remaining effects that cannot be avoided or minimized. And it contains a robust monitoring program to track compliance and effectiveness and allow for adaptive management as needed. Implementation of the HCP and the conservation strategy will support the larger regional effort that is needed to ensure the long-term viability of the species.

DISCUSSION: The Water Department is currently in the process of obtaining related CESA and ESA ITPs that will provide the “take” coverage for these special status anadromous fish species needed to implement the ASHCP and conservation strategy. Because the issuance of an ITP by NMFS under Section 10 of the ESA constitutes a federal action, NMFS has drafted an Environmental Assessment to comply with the National Environmental Policy Act (NEPA).

Additionally, the action by the City to adopt and implement the ASHCP and the subsequent issuance of a Section 2081 ITP by CDFW is a project subject to the California Environmental Quality Act (CEQA). Accordingly, the City has completed the environmental review process and has drafted a Final Mitigated Negative Declaration (MND).

18.2 The City prepared the Initial Study, which can be found at:
https://www.cityofsantacruz.com/government/city-departments/water/habitat-conservation-plan.

It determined that the Proposed Project may result in potentially significant environmental impacts on biological resources, cultural and tribal cultural resources, geology and soils, hazards and hazardous materials, and noise, but by incorporating the mitigation measures identified in the Mitigation Monitoring and Reporting Program (MMRP), those impacts would either be avoided or mitigated to a point where clearly no significant effect on the environment would occur.

The MMRP can be reviewed online at:
https://www.cityofsantacruz.com/home/showpublisheddocument/97239/638398927994316374.

Based on those findings, the City prepared the MND for the ASHCP in accordance with CEQA (California Public Resources Code, Section 21000 et seq.) and the CEQA Guidelines (Title 14 of the California Code of Regulations [CCR] 15000 et seq.).

The City distributed the draft Initial Study and Mitigated Negative Declaration (ISMND) for a 30-day public review period from August 25 to September 25, 2023. Based on the Initial Study and the whole record, the City has determined that, with incorporation of Project-specific AMMs in the Initial Study, the Proposed Project would not result in a significant adverse effect on the environment. There is no substantial evidence, considering the whole record before the lead agency, that the Proposed Project may have a significant effect on the environment. Therefore, the preparation of an environmental impact report (EIR) was not required.

While no public comments were received during the public review period, a letter of support from the California Department of Fish and Wildlife was accepted late with prior approval of an extension. The Final MND has been prepared and Staff is recommending that the Water Commission take action to recommend that Council adopt the final MND and MMRP.

NMFS initiated a 30-day public comment period for the ASHCP Draft Environmental Assessment (EA) on September 11, 2023, and received no public comments. NMFS is currently preparing the Final EA and Finding of No Significant Impact (FONSI).

Upon preliminary issuance of the State and Federal incidental take permits and conditional on the approval of the City's water rights petitions for change by the California State Water Resources Control Board as part of the City's Water Rights Project, staff will return to Council to recommend approval of the Proposed Project, acceptance of the incidental take permits, and implementation of the HCP and MMRP.

FISCAL IMPACT: Adoption of the Final Mitigated Negative Declaration has no direct fiscal implications. However, implementation of the ASHCP and conservation strategy will have fiscal impacts annually over the 30-year permit period related to the ASHCP monitoring program, nonflow conservation projects, and ongoing project management and oversight needs. Funds to support implementation are included in the Water Department’s 2021 Long Range Financial Plan and in the Water Department’s FY 2025 budget in the Habitat Conservation Programs Project (o700803) to complete the first year of implementation.

18.3 Prepared By:

Ezekiel Bean
Associate Planner II
Submitted By:

Rosemary Menard
Water Department Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

2. SUMMARY OF COVERED ACTIVITIES (TABLE 1).PDF

3. BIOLOGICAL GOALS AND OBJECTIVES (TABLE 2).PDF

18.4 RESOLUTION NO. NSRESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ ADOPTING

THE FINAL MITIGATED NEGATIVE DECLARATION AND ADOPTING THE

MITIGATION MONITORING AND REPORTING PROGRAM FOR THE

ANADROMOUS SALMONID HABITAT CONSERVATION PLAN
WHEREAS, the City of Santa Cruz (hereinafter “City”) through its Water and Public Works functions conducts various operation and maintenance activities that may adversely affect Central California Coast coho salmon (coho) (Oncorhynchus kisutch), a state and federally listed endangered species, and the Central California Coast steelhead (steelhead) (Oncorhynchus mykiss), a federally listed threatened species; and
WHEREAS, since 2001, in coordination with staff from the California Department of Fish and Wildlife and the National Marine Fisheries Service the City has been developing an Anadromous Salmonid Habitat Conservation Plan (“ASHCP” or “Project”) for California Endangered Species Act and federal Endangered Species Act compliance; and WHEREAS, the ASHCP includes a conservation strategy that is designed to avoid, minimize, and fully mitigate the effects of the operation, maintenance, and rehabilitation of the City’s water supply and water system facilities, including surface water diversions; operation and maintenance of the City’s municipal facilities; and management of City lands (the “Covered Activities”) on covered species and their habitat in support of the long-term viability of these populations within streams affected by the ASHCP Covered Activities; and WHEREAS, the City is pursuing Federal and State Incidental Take Permits that will provide the “take” coverage for these special status anadromous fish species needed to implement the ASHCP and Conservation Strategy and allow the City to operate and maintain critical water supply and flood control facilities and systems providing significant public benefits; and WHEREAS, the ASHCP is a 30-year commitment that, when implemented, will provide assurance to the City that no additional restrictions or financial compensation will be required for the covered species considering unforeseen circumstances; and WHEREAS, the City, as lead agency under the California Environmental Quality Act (Pub. Res. Code Section 21000 et seq.) and the State CEQA Guidelines (14 Cal. Code Regs.

Section 15000 et seq.) (collectively “CEQA”), has completed a draft Initial Study and Mitigated Negative Declaration for the Anadromous Salmonid Habitat Conservation Plan (incorporated herein by reference as Exhibit A) in compliance with CEQA; and WHEREAS, in accordance with Section 15072 of the CEQA Guidelines, the City released a Notice of Intent to Adopt a Mitigated Negative Declaration (“NOI”) for the Anadromous Salmonid Habitat Conservation Plan on August 25, 2023, providing for a 30-day public review and comment period ending on September 25, 2023, and on the same day filed the NOI with the Santa Cruz County Clerk and State Clearinghouse notifying relevant public agencies of the availability of the draft Initial Study and Mitigated Negative Declaration for review and the

18.5 RESOLUTION NO. NSclosing date for receiving comment; and WHEREAS, the NOI was also posted at the City Planning and Community Development Department, and the Draft Initial Study and Mitigated Negative Declaration document was available for review at the City’s website and in digital format at the Santa Cruz Public Libraries; and
WHEREAS, the Draft Initial Study and Mitigated Negative Declaration considered the potential environmental impact of the Project, including specific impacts to biological resources, cultural and tribal cultural resources, geology and soils, hazards and hazardous materials, and noise; and
WHEREAS, the Draft Initial Study and Mitigated Negative Declaration determined that the proposed project may result in potentially significant environmental impacts, but that incorporation of the mitigation measures identified in the Mitigation Monitoring and Reporting Program would avoid the effects or mitigate the effects to a point where clearly no significant effect on the environment would occur; and
WHEREAS, two (2) public information meetings were duly noticed and held on September 12, 2023, and September 14, 2023, to solicit public and agency comments on the Draft Initial Study and Mitigated Negative Declaration; and
WHEREAS, during the public review period, the City of Santa Cruz received one (1) comment letter on the Draft Initial Study and Mitigated Negative Declaration from public agencies and individuals; and
WHEREAS, the Final Mitigated Negative Declaration has been prepared on or about December 14, 2023, consisting of the Initial Study, all comments received during the public review period, and the Mitigation Monitoring and Reporting Program; and WHEREAS, the Final Mitigated Negative Declaration included minor revisions but no changes to significance findings of any impact determinations to environmental resources, and did not result in the addition of mitigation measures to offset project impacts on the environment; and
WHEREAS, the City Council is required by Public Resources Code section 21081.6, subdivision (a), to adopt a Mitigation Monitoring and Reporting Program to ensure that the mitigation measures adopted by the City Council are carried out; and WHEREAS, pursuant to that same statute, a Mitigation Monitoring and Reporting Program should be adopted at the time an agency adopts a Mitigated Negative Declaration; and WHEREAS, based upon the foregoing, staff has prepared the Mitigation Monitoring and Reporting Program (Exhibit B incorporated herein by reference) that incorporates the mitigation measures identified in the Initial Study and Final Mitigated Negative Declaration; and

18.6 RESOLUTION NO. NSWHEREAS, the City Council recognizes the City’s obligation, pursuant to Public Resources Code section 21081.6, subdivision (a), to ensure the monitoring of all adopted mitigation measures necessary to substantially lessen or avoid the significant effects of the Project; and
WHEREAS, the City of Santa Cruz Water Commission considered the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program at a meeting on January 11, 2024, and has received information on the purpose, need, and environmental impacts of the Project and recommended that the City Council adopt the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program; and
WHEREAS, the Mitigated Negative Declaration, Initial Study, and Mitigation Monitoring and Reporting Program are, by this reference, incorporated into this Resolution as if fully set forth herein; and
WHEREAS, the City Council considered the Final Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program at a duly noticed and agendized public meeting on January 23, 2023;
WHEREAS, the City Council has chosen to adopt the Final Mitigated Negative Declaration but to delay consideration of approval of the Project until a later date to be determined; and
WHEREAS, under the circumstances, the City Council’s adoption of the Mitigation Monitoring and Reporting Program must be conditional, as the Mitigation Measures featured in the Mitigiation Monitoring and Reporting Program are premised on the assumption of ultimate Project approval by the City Council.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Santa Cruz hereby finds and determines the following:

1. The City Council has independently reviewed and analyzed, the Mitigated Negative Declaration together with the Initial Study and supporting documents, as well as the comments, written and oral, received prior to approving this resolution; and

2. The City Council hereby finds that the Mitigated Negative Declaration, the Initial Study and supporting documents, have been completed in compliance with CEQA, the State CEQA Guidelines, and local procedures adopted pursuant thereto.

3. The City Council hereby finds that the Mitigated Negative Declaration reflects the City’s independent judgment and analysis, as required by Public Resources Code Section 21082.1.

4. The City Council finds that the Mitigated Negative Declaration identified all potentially significant impacts to the environment, which can and will either be completely avoided or clearly mitigated to less than significant levels through adoption and implementation of the

18.7 RESOLUTION NO. NSmitigation measures proposed as part of the Project and through implementation of the Mitigation Monitoring and Reporting Program.

5. The City Council finds based on the whole record before it and all information received that there is no substantial evidence that the Project, as mitigated, will have a significant effect on the environment.

6. The City Council hereby adopts the Mitigation Negative Declaration for the Project.

7. The City Council hereby adopts the Mitigation Monitoring and Reporting Program (Exhibit “B”), but does so on a conditional and contingent basis, meaning that the Mitigation Measures described therein will not be operative and binding on the City until such later time, if ever, as the City Council approves the Project itself.

8. All environmental documents and other materials that constitute the record of proceedings upon which this decision is based, are made available at the City of Santa Cruz Water Department Office, 212 Locust Street, Suite C, Santa Cruz, California 95060.

PASSED AND ADOPTED this 23rd day of January, 2024 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED:

Fred Keeley, Mayor
ATTEST:

Bonnie Bush, City Clerk Administrator
Exhibits referenced are available online at https://www.cityofsantacruz.com/government/citydepartments/water/habitat-conservation-plan):

Exhibit A Final Mitigated Negative Declaration Anadromous Salmonid Habitat Conservation Plan
Exhibit B Mitigation Monitoring and Reporting Program

18.8 Table 1. Summary of Covered Activities
General Activity Description
Rehabilitation of diversion
structures and pipeline
reaches
 Laguna Creek,1 Majors Creek, and Reggiardo Creek Diversions:

Sediment transport and fish screening improvements
 Felton Diversion: Fish passage improvements and pump upgrades and replacements
 Tait Street Diversion:2 Fish passage improvements and diversion capacity increase
 North Coast System pipeline rehabilitation: Replacement of portions of supply pipelines
Water diversion  Provision of drinking water utilizing existing water rights and pending water rights modifications under consideration by the SWRCB with addition of “Conservation Flows” (also known as Agreed Flows) at Liddell Spring Diversion, Reggiardo Creek Diversion, Laguna Creek Diversion, Majors Creek Diversion, Newell Creek Dam, Felton Diversion, and Tait Street Diversion and Wells
Reservoir operations  Chemical algaecide treatment of reservoir: 1-5 algaecide treatments annually
 Testing deluge and gate valves: 1 test annually of 5-10 cubic feet per second (cfs) for several hours. Bigger tests during winter/high flows as possible
 Woody debris removal on reservoir face: 10 cubic yards of less than 10- inch-diameter/8-foot-long wood removed annually
Water diversion sediment
management
 Liddell Spring Diversion: Excavation of up to 3 yards per event, 1-3 events per year. Valve operations: valves operated as needed to maintain natural sediment transport dynamics during storm events  Laguna Creek Diversion: Excavation of 5-10 cubic yards per event, 1-3 events per year. Valve operations (described above).
 Majors Creek Diversion: Excavation of 5-10 cubic yards per event, 1-3 events per year. Valve operations (described above).

Fish ladder and screen
maintenance
 Felton Diversion: 1-3 maintenance events per year to remove up to 1 yard of sediment and wood material from the ladder
 Tait Street Diversion: 1-3 maintenance events per year to remove up to 1 yard of sediment and wood material from the intake
Pipeline operations  Conveyance pipeline system inspections and repairs: Inspection and leak response on 19.23 miles of water line and 5.5 miles of leachate line
 Finished water pipeline system flushing and repairs: Flushing and leak response on 270 miles of water line
 Pumping well return to the San Lorenzo River: Ongoing pumping from clear well to remove sediment during high and moderate flows in winter and spring
 North Coast valve blow-off to the San Lorenzo River: 5-10 cfs blow-off to riverbank for 1-4 hours per event occurring during any part of the year once every few years
Dewatering of creeks for
maintenance and repairs
 Dewatered stream reaches can range from approximately 20-200 feet at 1-10 sites for 1-4 weeks per year
Flood control
maintenance
 Debris/obstruction removal: 1-3 maintenance events per year to remove up to 100 cubic yards of material in wet years

18.9 Table 1. Summary of Covered Activities
General Activity Description
 Flood control sediment management/removal: Removal of approximately 2 cubic yards of sediment per drainage structure annually or biannually at up to 30 drainage structures
 Vegetation management: Thin riparian groves and remove willows greater than 3 inches diameter at breast height (dbh) and alders greater than 6 inches dbh. Retain a 5-10-foot wide riparian buffer adjacent to the low flow channel, but remove vegetation greater than 6 inches dbh annually
Stormwater maintenance  Inspection and cleaning: Inspect and clean as needed but as frequently as weekly. Sweep 35 miles of streets daily
 Structural retrofits of storm drain inlets and basins: As-needed improvements of storm drain infrastructure
 Sanitary landfill leachate management: Ongoing maintenance of two leachate ponds, transmission of leachate to wastewater plant and repair of leachate line
Emergency operations
and response
 Response to flood, fire, spill, or other related incident on an as-needed basis, lasting from a few days to several weeks every couple of years General vegetation
management within
riparian corridors
 Pruning and limited removal of riparian trees less than 5,000 square feet on an annual basis during the summer/fall months as needed adjacent to pipeline rights-of-way, water diversions, and other utility infrastructure
Land management  Management of Loch Lomond Recreation Area and watershed lands:

Operation and management of 180-acre recreation area and 3,880 acres of open space
 Trail maintenance and repair: less than 50 yards of trail in nonanadromous watersheds annually  Road maintenance and decommissioning:
- Maintenance: Approximately 6.9 miles of road maintained annually - Decommissioning: 0-1 miles of road including up to 3-4 culverts on non-anadromous drainages annually
Habitat management and
restoration
 Aquatic habitat management and restoration: Fish removal and dewatering of streams, up to 100 cumulative yards for 2-6 weeks annually
 Monitoring: Habitat typing up to 20 miles of stream and tagging/handling up to10,000 salmonids annually. Visual census of up to 5,000 feet of stream annually. Maintenance of up to 10 stream gages, 2 pit tag antennas, 10 temperature loggers, 1 fish trap, and 2 water quality data sondes annually
Notes: cfs = cubic feet per second; dbh = diameter at breast height. 1 The Laguna Creek Diversion facility was retrofitted in 2021 in conformance with the ASHCP and is not analyzed in this IS. 2 Tait Street Diversion, also referred to as San Lorenzo River Tait Street Diversion, Tait Diversion, San Lorenzo River Tait Intake, etc., is one of two surface water diversions on the San Lorenzo River and located in Santa Cruz with the other being located in Felton.

18.10  Biological Goal #1. Contribute to the conservation of Covered Species by providing flows sufficient to improve habitat conditions and increase the likelihood of persistence of populations within the Plan Area.
- Objective 1.1. Within two (2) years of permit issuance, and for the duration of HCP implementation, increase the quantity and quality of habitat supporting adult migration in terms of average number of days with flow meeting minimum migration criteria during the adult migration period (December through April for steelhead, December and January for coho). - Objective 1.2. Within two (2) years of permit issuance, and for the duration of Plan implementation, increase the quantity and quality of habitat supporting spawning as measured by average annual weighted usable area (WUA) during potential spawning periods (after migration event in December-May for steelhead, December-March for coho). - Objective 1.3. Within two (2) years, and for the duration of Plan implementation, increase the quantity and quality of habitat supporting juvenile rearing as measured by seasonal average (winter, spring, summer) rearing WUA.
- Objective 1.4. Smolt Outmigration – Within two (2) years of permit issuance, and for the duration of Plan implementation, increase the quantity and quality of habitat supporting smolt outmigration as measured by annual number of days with flows meeting minimum migration criteria during the smolt migration period (January through May). - Objective 1.5. Within two (2) years of permit issuance and for the duration of Plan implementation, improve rearing habitat in the San Lorenzo River Lagoon by providing minimum inflow of 8 cubic feet per second (cfs) to improve temperature and dissolved oxygen (DO) levels during periods when the lagoon is closed.
 Biological Goal #2. Contribute to the conservation of Covered Species by creating, restoring, or enhancing aquatic habitat in the Plan Area.1
- Objective 2.1. Between years 1-10, fund and oversee habitat restoration or enhancement projects worth $2.7M (2018 dollars excluding administration) and potentially including removal of passage obstacles, placement of large wood structures, riparian conservation easements, spawning gravel augmentation, riparian restoration, and sediment control projects.
- Objective 2.2. Between years 11-20, fund and oversee habitat restoration or enhancement projects worth $2.7M (2018 dollars excluding administration) and potentially including removal of passage obstacles, placement of large wood structures, riparian conservation easements, spawning gravel augmentation, riparian restoration, and sediment control projects.
- Objective 2.3. Between years 21-30, fund and oversee habitat restoration or enhancement projects worth $2.7M (2018 dollars excluding administration) and potentially including removal of passage obstacles, placement of large wood structures, riparian conservation easements, spawning gravel augmentation, riparian restoration, and sediment control projects.
 Biological Goal #3. Avoid, minimize, and fully mitigate effects to Covered Species resulting from City operations and maintenance activities.
1 The objectives for Biological Goal #2 relate to implementation of the NFCF.

18.11 - Objective 3.1. During all years of Plan implementation, operate facilities to avoid stranding Covered Species by implementing a ramping rate during flow changes at the Felton Diversion Dam, Tait Street Diversion, Laguna Creek Diversion, Liddell Spring Diversion, Majors Creek Diversion, and Newell Creek Dam to limit flow reductions such that change in stage is limited. - Objective 3.2. During all years of Plan implementation, operate facilities to reduce introduction of sediment.
- Objective 3.3. Within ten (10) years of permit issuance, enhance fish passage through the Felton Diversion Dam by upgrading facilities to meet current NMFS and CDFW criteria for fish screens and passage.
- Objective 3.4. Within ten (10) years of permit issuance, enhance fish passage through the Tait Street Diversion by modifying the Tait Street Diversion to prevent entrainment and impingement and provide bypass in accordance with current criteria issued by NMFS and CDFW.

18.12 City Council

AGENDA REPORT
DATE: 01/04/2024
AGENDA OF: 01/23/2024
DEPARTMENT: Water
SUBJECT: Purchase of Real Property Necessary for Newell Creek Pipeline Replacement-Felton to Graham Hill Water Treatment Plant Project:

Multiple Properties, Assessor’s Parcel Numbers 066-211-09, 066-211-10, 066-212-04 Owned by Wood VMS Family Limited Partnership and DK Felton Management, LLC (WT)
RECOMMENDATION: Motion to:
1) 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 David Wood for a permanent easement on APN 066-211-09 located in Felton, CA near Graham Hill Road and Zayante Road for the Newell Creek Pipeline Replacement-Felton to Graham Hill Water Treatment Plant Project;
2) 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 David Wood for a permanent easement on APN 066-211-10 located in Felton, CA near Graham Hill Road and Zayante Road for the Newell Creek Pipeline Replacement-Felton to Graham Hill Water Treatment Plant Project; and
3) 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 David Wood for a permanent easement on APN 066-212-04 located in Felton, CA near Graham Hill Road and Zayante Road for the Newell Creek Pipeline Replacement-Felton to Graham Hill Water Treatment Plant Project.

BACKGROUND: The Newell Creek Pipeline is a 14-mile-long pipeline constructed in the 1960s connecting the Loch Lomond Reservoir to the Graham Hill Water Treatment Plant (GHWTP). The pipeline is a critical supply line during both wet and dry seasons and an emergency backup source when other raw water supplies are not available.

In 2019, The City of Santa Cruz Water Department (SCWD) developed the Newell Creek Pipeline Replacement Project to improve the reliability of water supply infrastructure by replacing this entire pipeline. The Newell Creek Pipeline (NCP) Project is divided into three sections: Loch Lomond to Felton Booster Pump Station; Brackney Landslide Area Pipeline Risk Reduction; and the subject of this staff report, Felton Booster Pump Station (FBPS) to GHWTP.

19.1 The FBPS to GHWTP Project includes approximately 4.5 miles of new 24-inch diameter pipe.

Most of the new alignment is in Graham Hill Road.

DISCUSSION: To complete the Project, the City must purchase easements on multiple properties (APN 066-211-09, 066-211-10, and 066-212-04) from its owner (Property). The properties consist of ranges of vacant, unbuildable land, buildable land, and occupied lots near Felton, CA.

The City requires the Property outright so that it can construct and maintain the Project’s pipeline, which will run the length of the Property, and connect the pipeline between SCWD’s existing FBPS and GHWTP.

The title report indicates that the Property is owned by Wood VMS Family Limited Partnership and DK Felton Management LLC (Owners).

The City contracted with Integra Realty Resources (Integra), a full-service independent appraisal firm, to determine the fair market value of the Property. Based on Integra’s appraisal, the City prepared and sent out formal offer letters to the Owners as shown in the table below.

Owner Formal Offer
Letter Presented
Date
Appraised (Just
Compensation)
Value ($)
Signed
Agreement Date
Wood VMS Family Limited
Partnership (APN 066-211-09)
10/24/23 $59,500 12/12/23
Wood VMS Family Limited
Partnership (APN 066-211-10)
10/12/23 $500* 12/12/23
DK Felton Management, LLC (APN
066-212-04)
10/13/23 $21,900 12/12/23
* Council Approved Owner’s Counteroffer of $1500 on 12/12/2023.

On 12/12/23, the parties reached an agreement on the sale and purchase of each Property for values shown in the table above and outlined in the attachments.

FISCAL IMPACT: The total cost for these purchase sale agreements is $82,900. Funds are available in the Water Department Capital Investment Program, project c702105 for the Newell Creek Pipeline Replacement Project-Felton to Graham Hill Water Treatment Plant Project.

Prepared By:

Sam Humy
Deputy City Attorney
Submitted By:

Rosemary Menard
Water Department Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION FOR APN 066-211-09.DOC

2. RESOLUTION FOR APN 066-211-10.DOC

3. RESOLUTION FOR APN 066-212-04.DOC

4. PURCHASE AGREEMENT FOR APN 066-211-09.PDF

5. PURCHASE AGREEMENT FOR APN 066-211-10.PDF

6. PURCHASE AGREEMENT FOR APN 066-212-04.PDF

19.2 RESOLUTION NO. NSRESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ

AUTHORIZING AND DIRECTING THE CITY MANAGER OR HIS DESIGNEE TO

EXECUTE A PURCHASE SALE AGREEMENT BETWEEN THE CITY OF SANTA

CRUZ AND WOOD VMS FAMILY LIMITED PARTNERSHIP FOR THE

EASEMENT LOCATED IN FELTON, CA NEAR GRAHAM HILL ROAD AND ZAYANTE ROAD FOR A PERMANENT EASEMENT ON APN 066-211-09 WHEREAS, the City of Santa Cruz operates the Newell Creek Pipeline, a raw water transmission main; and
WHEREAS, the Newell Creek Pipeline crosses multiple public and private properties from the Loch Lomond Reservoir in Ben Lomond to the Graham Hill Water Treatment Plant in Santa Cruz; and
WHEREAS, the City of Santa Cruz has completed negotiations from property owners included in this purchase sale agreement; and
WHEREAS, the City of Santa Cruz has offered Wood VMS Family Limited Partnership to purchase a permanent easement for construction, operation, and maintenance of the Newell Creek Pipeline Replacement -Felton to Graham Hill Water Treatment Plant Project to replace a section of the Newell Creek Pipeline; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz that the City Manager is hereby authorized to execute certain Grant of Easement, pertaining to certain property located on APN 066-211-09, from Wood VMS Family Limited Partnership upon the terms and conditions as set forth in said Easement Deed as presented to this Council this date.

PASSED AND ADOPTED this 23th day of January 2024, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ________________________
Mayor
ATTEST: ___________________________
City Clerk

19.3 19.4
RESOLUTION NO. NSRESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ

AUTHORIZING AND DIRECTING THE CITY MANAGER OR HIS DESIGNEE TO

EXECUTE A PURCHASE SALE AGREEMENT BETWEEN THE CITY OF SANTA

CRUZ AND WOOD VMS FAMILY LIMITED PARTNERSHIP FOR THE

EASEMENT LOCATED IN FELTON, CA NEAR GRAHAM HILL ROAD AND ZAYANTE ROAD FOR A PERMANENT EASEMENT ON APN 066-211-10 WHEREAS, the City of Santa Cruz operates the Newell Creek Pipeline, a raw water transmission main; and
WHEREAS, the Newell Creek Pipeline crosses multiple public and private properties from the Loch Lomond Reservoir in Ben Lomond to the Graham Hill Water Treatment Plant in Santa Cruz; and
WHEREAS, the City of Santa Cruz has completed negotiations from property owners included in this purchase sale agreement; and
WHEREAS, the City of Santa Cruz has offered Wood VMS Family Limited Partnership to purchase a permanent easement for construction, operation, and maintenance of the Newell Creek Pipeline Replacement -Felton to Graham Hill Water Treatment Plant Project to replace a section of the Newell Creek Pipeline; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz that the City Manager is hereby authorized to execute certain Grant of Easement, pertaining to certain property located on APN 066-211-10, from Wood VMS Family Limited Partnership upon the terms and conditions as set forth in said Easement Deed as presented to this Council this date.

PASSED AND ADOPTED this 23th day of January 2024, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ________________________
Mayor
ATTEST: ___________________________
City Clerk

19.5 19.6
RESOLUTION NO. NSRESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ

AUTHORIZING AND DIRECTING THE CITY MANAGER OR HIS DESIGNEE TO

EXECUTE A PURCHASE SALE AGREEMENT BETWEEN THE CITY OF SANTA

CRUZ AND DK FELTON MANAGEMENT LLC FOR THE EASEMENT LOCATED

IN FELTON, CA NEAR GRAHAM HILL ROAD AND ZAYANTE ROAD FOR A PERMANENT EASEMENT ON APN 066-212-04
WHEREAS, the City of Santa Cruz operates the Newell Creek Pipeline, a raw water transmission main; and
WHEREAS, the Newell Creek Pipeline crosses multiple public and private properties from the Loch Lomond Reservoir in Ben Lomond to the Graham Hill Water Treatment Plant in Santa Cruz; and
WHEREAS, the City of Santa Cruz has completed negotiations from property owners included in this purchase sale agreement; and
WHEREAS, the City of Santa Cruz has offered DK Felton Management LLC to purchase a permanent easement for construction, operation, and maintenance of the Newell Creek Pipeline Replacement -Felton to Graham Hill Water Treatment Plant Project to replace a section of the Newell Creek Pipeline; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz that the City Manager is hereby authorized to execute certain Grant of Easement, pertaining to certain property located on APN 066-212-04, from DK Felton Management LLC to purchase a permanent easement for construction, operation, and maintenance of the Newell Creek Pipeline Replacement -Felton to Graham Hill Water upon the terms and conditions as set forth in said Easement Deed as presented to this Council this date.

PASSED AND ADOPTED this 23th day of January 2024, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ________________________
Mayor
ATTEST: ___________________________

19.7 City Clerk

19.8 19.9

19.10 19.11

19.12 19.13

19.14 19.15

19.16 19.17

19.18 19.19

19.20 19.21

19.22 19.23

19.24 19.25

19.26 19.27

19.28 19.29

19.30 19.31

19.32 19.33
City Council

AGENDA REPORT
DATE: 12/21/2023
AGENDA OF: 01/23/2024
DEPARTMENT: Water
SUBJECT: Felton Diversion Pipeline Emergency Repair Project (e702301) – Notice of Completion (WT)
RECOMMENDATION: Motion to accept the work of Anderson Pacific Engineering Construction, Inc. (Santa Clara, CA) as complete per the Agreement, authorize the filing of a Notice of Completion for the Felton Diversion Pipeline Emergency Repair Project (e702301), and authorize the Water Director to sign the Notice of Completion as the Owner’s Authorized Agent.

BACKGROUND: Zayante Creek, downstream of Graham Hill Road in Felton, was significantly eroded during the January 2023 storms, causing bank failures and a portion of the Felton Diversion Pipeline (FDP) to be exposed and damaged. The FDP is critical water infrastructure because it pumps water from the San Lorenzo River (of which Zayante Creek is a tributary) to Loch Lomond Reservoir. Loch Lomond Reservoir is the City’s only source of stored water. In normal and wet years, reservoir storage refills naturally to full capacity with runoff from the Newell Creek watershed. Storage can also be supplemented with water pumped up to the reservoir from the Felton Diversion on the San Lorenzo River via the FDP and Newell Creek Pipeline.

On August 8, 2023, the City Council approved the project plans and specifications of the FDP Emergency Repair Project (Project) and ratified a construction agreement with Anderson Pacific Engineering Construction, Inc. (Santa Clara, CA) to complete repairs to the damaged pipeline and stream bank to reduce the potential for additional damage in the Winter of 2023/2024 and to restore operational capability of the FDP for 2024.

DISCUSSION: Following the usual pattern of reduction during the summer season, flows in Zayante Creek had been lowering, which created a window of opportunity for the repairs. The Federal Emergency Management Agency (FEMA) issued a Disaster Declaration on January 14, 2023: California Severe Winter Storms, Flooding, Landslides, And Mudslides (DR-4683-CA).

City staff are actively engaged with FEMA and California Governer’s Office of Emergency Services (Cal OES) staff to obtain reimbursement.

City staff received the U.S. Army Corps of Engineers authorization of the Regional General Permit Number 5 (RGP5) for repair and protection activities in emergency situations.

20.1 The Project was statutorily exempt from further environmental review under the California Environmental Quality Act Section 15269, Emergency Projects and a Notice of Exemption was filed by staff.

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

Health in All Policies (HiAP)
This Project aligns with the public health pillar of the City’s HiAP initiative by supporting the Water Department’s work in ensuring the safety and reliability of the public drinking water supply.

FISCAL IMPACT: The final cost of all work under this contract was $2,236,530. The Project was funded by the Water Department Capital Investment Program, project e702301 for the FDP Emergency Repair Project. The Water Department is seeking reimbursement from California Governor's Office of Emergency Services (Cal OES) and Federal Emergency Management Agency (FEMA).

Prepared By:

Heidi Luckenbach
Engineering Manager/Deputy
Water Director
Submitted By:

Rosemary Menard
Water Department Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. NOTICE OF COMPLETION.PDF

20.2 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: City Right-Of-Way

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: Felton Diversion Pipeline Emergency Repair Project, e702301

3. Nature of Work Performed on the Property or Materials Furnished for the City. The Project consisted of work described as: Repair of the Felton Diversion Pipeline damaged during the January 2023 winter storm disaster declaration

4. The general site location description or address (the “Property”) of the public improvement is located at: Along Zayante Creek, downstream of Graham Hill Road in Felton

5. Name and Address of Contractor. The Contractor on the Project is: Anderson Pacific Engineering, 1390 Norman Ave, Santa Clara CA 95054

6. Construction Lender. The name and address of the construction lender, if any, is: Not Applicable

7. Date of Completion. The Project on the Property was completed on: December 21, 2023

8. The filing of this Notice of Completion was authorized by the Santa Cruz City Council Minute Order on Tuesday, January 23, 2024
Date Rosemary Menard
Water Director, City of Santa Cruz

RECORDED AT THE REQUEST OF:

City of Santa Cruz, Water
Attn: Heidi Luckenbach
WHEN RECORDED MAIL TO:

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

20.3 ORDINANCE NO. 2024-01

AN ORDINANCE OF THE CITY OF SANTA CRUZ APPROVING AN AMENDMENT TO

THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION AND CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM TO PROVIDE A NEW LOCAL OCEAN BEACH LIFEGUARD MEMBER CATEGORY 2.7% @ 57 FULL FORMULA AND FOURTH LEVEL OF 1959 SURVIVOR BENEFITS WITH 0% PRIOR SERVICE
BE IT ORDAINED by the City Council of the City of Santa Cruz as follows:

SECTION 1. That an amendment to the contract between the City Council of the City of Santa Cruz and the Board of Administration, California Public Employees’ Retirement System, is hereby authorized, a copy of said amendment being attached hereto, marked Exhibit, and by such reference made a part hereof as though herein set out in full.

SECTION 2. The Mayor of the City of Santa Cruz is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency.

SECTION 3. The ordinance shall take effect and be in force thirty (30) days after final adoption.

Government Code requires a twenty-day (20) waiting period between adoption of the resolution of intention and the final adoption (second reading) of the ordinance.

PASSED FOR PUBLICATION this 9th day of January, 2024 by the following vote:

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

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

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

21.1 ORDINANCE NO. 2024-01
2 PASSED FOR FINAL ADOPTION this 23rd day of January, 2024 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator
This is to certify that the above and
foregoing document is the original of
Ordinance No. 2024-01 and that it has
been published or posted in accordance
with the Charter of the City of Santa
Cruz.
________________________________
Bonnie Bush, City Clerk Administrator

21.2 Proof of Publication
(2015 C.C.P.)
I, the undersigned, declare:

That I caused the attached legal notice/advertisement to be published in the Santa Cruz Good Times, a weekly newspaper published and circulated in the County of Santa Cruz, and adjudged a newspaper of general circulation by the Superior Court of California in and for the County of Santa Cruz, under Proceeding No. 68833; and that the legal notice/advertisement was published in the above-named newspaper on the following date(s), to wit:

January 17, 2024
I declare under penalty of perjury that the foregoing is true and correct to the best of my knowledge.

This 17th day of January, 2024, Santa Cruz, California
____________________________
Julia Wood
Deputy City Clerk Administrator

21.3 DECLARATION OF POSTING

STATE OF CALIFORNIA )
) SS.

COUNTY OF SANTA CRUZ )
On the 16th day of January, 2024, I posted conspicuously in three public places within the City of Santa Cruz, Ordinance No. 2024-01, to wit:

1. City Hall: 809 Center Street: Bulletin Board outside Room 9/10

2. City Hall: Bulletin Board outside Council Chambers

3. The City of Santa Cruz website
The document, posted in its entirety, consists of pages 1—2.

I declare under penalty of perjury that the foregoing is true and correct. Executed this 16th day of January, 2024, in Santa Cruz, California.
_______________________________
Julia Wood
Deputy City Clerk Administrator

21.4 ORDINANCE NO. 2024-02
AN ORDINANCE OF THE CITY OF SANTA CRUZ CHAPTER 5.11 “DELIVERY DRIVER TIPPING” AT SECTIONS 5.11.020 “TIPPING OPTION REQUIREMENT: AND 5.11.030 “EXCEPTIONS”
BE IT ORDAINED by the City Council of the City of Santa Cruz as follows:

SECTION 1. Chapter 5.11 (Delivery Driver Tipping) is hereby amended at Section 5.11.020 and

5.11.030 to read as follows:
“5.11.020 – TIPPING OPTION REQUIREMENT.
(a) All delivery companies, as defined in Section 5.11.010, operating within the City of Santa Cruz shall offer a tipping option to their customers, either through their website, mobile application, or other means of electronic communication. Companies engaged in the shipping or delivery of products or packages on their own behalf or on behalf of third parties from the point of origin to the final residential destination shall, jointly and severally, be responsible for compliance with this Chapter including, but not limited to third-party contractors such as, for example, Amazon Delivery Service Partners. (b) The tipping option shall be prominently displayed and easily accessible to the customer by one or more mechanisms that may include, but are not limited to, any of the following:

1. During the checkout or order placement process;

2. Through a hyperlink in an SMS or e-mail notifying the customer of the delivery status;

3. On printed material affixed to the delivery box or within the package with instructions on how to leave a tip;

4. On an order/delivery tracking page that a customer has access to; or

5. A generally available website that customers are directed to at which a tip can be given for a specific delivery by providing a tracking number or other unique identifier to the delivery company. This website must be easily accessible and discoverable such as, for example, by including its web address and instructions on the delivery company’s packing label.

5.11.030 – EXCEPTIONS.
(a) This ordinance shall not apply to:

1. Delivery companies with six (6) or fewer employees;

2. Delivery drivers who are independent contractors;

3. Delivery companies or delivery drivers who engage in regular face-to-face interactions with customers including, but not limited to, furniture and appliance deliveries, service calls, installation services and similar transactions.

22.1 ORDINANCE NO. 2024-02
2 4. Delivery companies or delivery drivers who are subject to a valid collective bargaining agreement;

5. The United States Postal Service; or

6. Business-to-Business deliveries.

7. Delivery companies or delivery drivers who are engaged in interstate commerce;

8. Any motor carrier holding interstate for hire motor carrier operating authority from the Federal Motor Carrier Safety Administration or any federally certificated air carrier operating under authority granted by the Federal Aviation Administration.
(b) The exceptions in subsection (a) shall not apply to delivery companies that both process consumer goods orders and arrange for transportation in a single transaction.” SECTION 2. Severability.

If any section or portion of this chapter is found to be invalid by a court of competent jurisdiction, such finding shall not affect the validity of the remainder of the chapter, which shall continue in full force and effect.

SECTION 3. Effective Date
This ordinance shall be in force and take effect on June 9, 2024.

PASSED FOR PUBLICATION this 9th day of January, 2024 by the following vote:

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

NOES: Vice Mayor Golder.

ABSENT: None.

DISQUALIFIED: None.

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

22.2 ORDINANCE NO. 2024-02
3 PASSED FOR FINAL ADOPTION this 23rd day of January, 2024 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator
This is to certify that the above and
foregoing document is the original of
Ordinance No. 2024-02 and that it has
been published or posted in accordance
with the Charter of the City of Santa
Cruz.
________________________________
Bonnie Bush, City Clerk Administrator

22.3 Proof of Publication
(2015 C.C.P.)
I, the undersigned, declare:

That I caused the attached legal notice/advertisement to be published in the Santa Cruz Good Times, a weekly newspaper published and circulated in the County of Santa Cruz, and adjudged a newspaper of general circulation by the Superior Court of California in and for the County of Santa Cruz, under Proceeding No. 68833; and that the legal notice/advertisement was published in the above-named newspaper on the following date(s), to wit:

January 17, 2024
I declare under penalty of perjury that the foregoing is true and correct to the best of my knowledge.

This 17th day of January, 2024, Santa Cruz, California
____________________________
Julia Wood
Deputy City Clerk Administrator

22.4 DECLARATION OF POSTING

STATE OF CALIFORNIA )
) SS.

COUNTY OF SANTA CRUZ )
On the 16th day of January, 2024, I posted conspicuously in three public places within the City of Santa Cruz, Ordinance No. 2024-02, to wit:

1. City Hall: 809 Center Street: Bulletin Board outside Room 9/10

2. City Hall: Bulletin Board outside Council Chambers

3. The City of Santa Cruz website
The document, posted in its entirety, consists of pages 1—3.

I declare under penalty of perjury that the foregoing is true and correct. Executed this 16th day of January, 2024, in Santa Cruz, California.
_______________________________
Julia Wood
Deputy City Clerk Administrator

22.5 City Council

AGENDA REPORT
DATE: 01/04/2024
AGENDA OF: 01/23/2024
DEPARTMENT: Planning and Community Development
SUBJECT: Municipal Code Amendments Relating to Objective Design Standards and Permit Processing Responding to Modifications Requested by the California Coastal Commission (PL)
RECOMMENDATION: Motion to:
1) Adopt a resolution acknowledging receipt of the resolution of certification from the California Coastal Commission, including the suggested modifications, and 2) Introduce for publication an ordinance amending various parts Chapter 24.04 of the Santa Cruz Municipal Code related to permit processing in response to action by the California Coastal Commission.

BACKGROUND: The City of Santa Cruz adopted Ordinance 2022-19 for the Objective Design Standards for Multifamily Housing project on December 13, 2022. Part of this ordinance addressed the manner in which development permits would be processed in light of the new standards and reduction in local discretion for housing development projects. These amendments can be found largely in Santa Cruz Municipal Code Chapter 24.04: Administration.

Ordinance 2022-19 is also an amendment to the City’s Local Coastal Program Implementation Plan (LCP IP) and requires approval from the California Coastal Commission (CCC) prior to taking effect inside the portion of the City within the Coastal Zone. Following adoption of the ordinance, City staff submitted it to the CCC for review and approval in February of 2023. At their meeting on November 15, 2023, the CCC passed a motion approving the LCP amendment conditional upon the City accepting minor modifications requested by Commission staff and incorporating them into the City’s ordinance and LCP IP.

DISCUSSION: During their review, Coastal Commission staff identified the need for additional clarity regarding the procedures, fees, and noticing for projects inside the Coastal Zone that include a Coastal Development Permit (CDP) as part of the City approval. The three modifications requested by the CCC relate to the way CDPs are processed by the City and largely clarify existing law. One requested modification does slightly change the City’s current procedure regarding noticing of modification permits.. The proposed amendments in Santa Cruz Municipal Code (SCMC) Sections 24.04.130 and 24.04.182 relate to procedures for CDP appeals and clarify the circumstances under which the Coastal Commission will charge a fee to hear a CDP appeal. The modification proposed to SCMC Section 24.04.160 addresses the requirements

23.1 for Minor Modifications to permits which include a CDP and clarifies the “notice of final action” procedures these permits must meet. Previously, CCC was not typically notified of minor modifications to permits, but the proposed amendment would require that the CCC be notified of all modifications. The CCC’s proposed changes are shown in the attached clean and redlined ordinances.

Next Steps: Should the City Council accept CCC’s minor modifications and introduce them for publication on January 23, a second reading of the ordinance will take place at the next available Council hearing. As summarized in the attached CCC Action Notice, the ordinance will take effect inside the Coastal Zone as soon as “the Commission’s Executive Director reports to the Commission her determination that the City’s actions are legally adequate, and the Commission does not object to the Executive Director’s determination.” If the City Council moves to adopt the modifications as shown in the attached ordinance, City staff will submit to the Coastal Commission for review at the next available meeting, which will likely be the March 2024 hearing. The ordinance will take effect inside the Coastal Zone the same day the adoption of the modifications is certified by the Coastal Commission.

Should the City Council disagree with the requested modifications, the ordinance would not take effect in the Coastal Zone. Staff would need to coordinate with the Coastal Commission regarding alternative revisions, and those revisions would need to be approved by both the City Council and Coastal Commission. If the changes represented substantive modifications, they would need to return to the Planning Commission for a formal recommendation to Council, Council would need to approve them, and then they would be resubmitted to the Coastal Commission as a new LCP amendment, triggering a new round of review.

Health in All Policies: The proposed amendments are exclusively procedural in nature and will have minimal impact upon the City’s goals for equity, public health, and sustainability, though the amendments’ clarification of procedures is supportive of equity goals by helping make the Coastal Permit processes better understood.

Environmental Review: The proposed amendment has no impact on the natural environment and, because it does not change any of the regulations or standards governing any type of physical development, does not qualify as a project under the California Environmental Quality Act (CEQA) and is therefore excluded from review.

FISCAL IMPACT: The fiscal impact of these amendments is minimal. The proposed amendment to permit modification noticing procedures will incur minor administrative costs associated with certain project applications.

Prepared By:

Sarah Neuse Senior Planner
Matt VanHua, AICP Principal
Planner
Submitted By:

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

Matt Huffaker
City Manager

23.2 ATTACHMENTS:

1. RESOLUTION.DOCX

2. PROPOSED ORDINANCE, CLEAN.DOCX

3. PROPOSED ORDINANCE, REDLINED.DOCX

4. CALIFORNIA COASTAL COMMISSION STAFF REPORT AND MODIFICATIONS DISCUSSION.PDF

5. CALIFORNIA COASTAL COMMISSION ACTION NOTICE.PDF

23.3 1
RESOLUTION NO. NSRESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ ACCEPTING

CALIFORNIA COASTAL COMMISSION MODIFICATIONS TO AMENDMENTS TO MUNICIPAL CODE SECTION 24.04 RELATING PROCESSING OF COASTAL

DEVELOPMENT PERMITS, THEREBY MODIFYING THE LOCAL COASTAL PROGRAM

IMPLEMENTATION PLAN, AND DIRECTING THE PLANNING DIRECTOR TO

TRANSMIT THE ACCEPTANCE TO THE CALIFORNIA COASTAL COMMISSION WHEREAS, pursuant to authority delegated to the City of Santa Cruz by the California Coastal Commission, the City of Santa Cruz regulates development in the portion of the coastal zone that lies within the City Limits and that is outside of the original jurisdiction of the California Coastal Commission; and
WHEREAS, City of Santa Cruz Municipal Code Chapters 24.04 is an implementing ordinances of the Local Coastal Program; and
WHEREAS, on December 13, 2022, the Santa Cruz City Council adopted Ordinance 2022- 19 amending Muni Code Chapters 24.04, among other sections to amend existing regulations related to various types of small housing units, and directed City Staff to submit those amendments to the California Coastal Commission for certification; and WHEREAS, on November 15, 2023, the California Coastal Commission held a public hearing on the amendments to the Local Coastal Program implementing ordinance adopted by the City Council and certified the amendments to the Municipal Code with modifications; and WHEREAS, the modifications proposed by the California Coastal Commission to Municipal Code Sections 24.04.130, .160, and .182 were submitted to the City by correspondence dated November 16, 2023, and
WHEREAS, insofar as the proposed changes to the Municipal Code are amendments to the Local Coastal Program Implementation Plan, the application of the proposed amendments in the coastal zone is statutorily exempt from California Environmental Quality Act (“CEQA”) review pursuant to CEQA Guidelines Section 15265 and the California Public Resources Code Section 21089.9;
NOW, THEREFORE, BE IT RESOLVED AND ORDERED that the Santa Cruz City Council hereby accepts the California Coastal Commission’s suggested modifications to Municipal Code Sections 24.04.130, 24.04.160, and 24.04.182 as shown in City of Santa Cruz Ordinance 2024-____ and incorporated herein by reference.

BE IT FURTHER RESOLVED AND ORDERED that the Santa Cruz City Council hereby directs the Director of the Planning & Community Development Department or their designee to transmit this acceptance and any adopted ordinance that incorporates these modifications to the

23.4 2
California Coastal Commission for concurrence by its Executive Director, following Council’s final adoption of the ordinance.

PASSED AND ADOPTED this 23rd day of January, 2024, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

23.5 ORDINANCE NO. 2024-XX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ AMENDING CHAPTERS 24.04 – ADMINISTRATION
Section 1. Section 24.04.130 – Decision-Making Body With Final Authority on Application Approval of Chapter 24.04 - Administration of Title 24 – Zoning Ordinance of the City of Santa Cruz Municipal Code is hereby amended as follows:

24.04.130 DECISION-MAKING BODY WITH FINAL AUTHORITY ON APPLICATION APPROVAL.

The following table indicates the decision-making body who can approve, deny or conditionally approve an application, whether or not a public hearing is required, and the bodies to which appeals can be made:

1. The planning commission and city council may refer certain aspects of any application to the zoning administrator for final action.

2. The zoning administrator may refer any of the matters on which he/she is authorized to act to the planning commission or historic preservation commission.

3. Recommendations for approval on General Plan matters and zoning ordinance text and map amendments shall require a majority vote of the planning commission; all other actions shall require a majority of the hearing body present at the meeting.

Public Hearing Requirement and Decision-Making
Body Which Can Approve an Application
No
Public
Hearin
g
Permits/Actions**** Public Hearing
Action Recommendati
on
Action
Appeal Bodies
(in order)
Coastal Permit ZA
(ADU1)
ZA1 CPC/CC/CCC1
Administrative Use Permit:

Temporary uses, variations to
parking design requirements and
number of spaces, low risk alcohol

ZA CPC/CC

23.6 outlets, and half baths in accessory
buildings
Other uses as listed by individual
zoning districts as requiring an
Administrative Use Permit

ZA CPC/CC
Conditional Fence Permit ZA ZA CPC/CC
Slope Regulations Modifications
(Variance) in the Coastal Zone
CPC CC
Slope Development Permit (on or
within 20 feet of a 50% or greater
slope) outside the Coastal Zone

ZA CPC/CCC
Slope Regulations Modifications
(Design Permit) in the Coastal
Zone

ZA CPC/CC
Slope Development Permit (on or
within 20 feet of a slope greater
than or equal to 30% and less than
50%) outside the Coastal Zone

ZA CPC/CC
Design Permit ZA CPC/CC

1. Substandard lots: New twostory structures and secondstory additions with a singlefamily residential use, excluding ADUs

ZA CPC/CC

2. Large homes per
Section 24.08.450

ZA CPC/CC

3. Wireless telecommunications
facilities

ZA ZA CPC/CC

4. New structures or
improvements to existing
structures in the WCD
Overlay which are exempt or
excluded from coastal permit
requirements

ZA CPC/CC

23.7 5. New structures or
improvements to existing
structures in the WCD
Overlay which require a
coastal permit

ZA CPC/CC

6. Mixed-Use or Residential
Development conforming to
all standards of Section

24.12.185
ZA

7. Mixed-Use or Residential
Development varying from
no more than five standards
of Chapter 24.12.185 of the
Municipal Code
ZA

8. Mixed-Use or Residential
Development that varies
from six or more standards of
Chapter 24.12.185 of the
Municipal Code
CPC
Demolition Permit

1. Single-family residential ZA CPC/CC

2. Multifamily residential CPC CC

3. Historic demolition permit HPC CC

4. Nonresidential ZA2 ZA2 CPC/CC
General Plan Text and Map
Amendments
C CC/CCC 3
Historic Alteration Permit HPC CC
Administrative Historic Alteration
Permit

ZA HPC/CC
Historic Building Survey:

Building designation, deletion HPC CC

23.8 Historic District Designation HPC/CPC CC
Historic Landmark Designation HPC CC
Mobile Homes (Certificate of
Compatibility)

ZA CPC/CC
Mobile Home Park Conversion CPC CC
Outdoor Extension Areas per
Section 24.12.192

ZA CPC/CC
Planned Development Permit CPC CC
Project (Major) Modification Hearing by ZA or body
approving application
Appeal to next
highest
body(ies)
Project (Minor) Modification ZA CPC/CC
Relocation of Structures Permit ZA CPC/CC
Revocation Permit Hearing by ZA or body
approving application
Appeal to next
highest
body(ies)
Sign Permit ZA CPC/CC
Special Use Permit CPC CC
Variance ZA CPC/CC
Watercourse Variance CPC CC
Watercourse Development Permit ZA CPC/CC
Zoning Ordinance Text and Map
Amendments
Amendments recommended by CPC CPC CC/CCC 3
Amendments not recommended by CPC CPC CC/CCC 3

23.9 CCC = California Coastal Commission CC = City Council CPC = City Planning Commission
HPC = Historic Preservation Commission ZA = Zoning Administrator 1 For projects seaward of the mean high tide line, and in the case of appealable actions, the California Coastal Commission shall be the decision-making body which can finally approve an application. In the coastal zone, all proposed accessory dwelling units shall require a coastal permit (unless they are exempt or excluded from coastal permit requirements) and shall be processed in the manner described in Chapter 24.04 and Section 24.08.200 et seq. (including in terms of public noticing and process for appeal to the Coastal Commission) except that no public hearing shall be required. In addition to all other applicable LCP requirements, standards for ADUs in the coastal zone are specified in Section 24.12.140(10). 2 Such permits shall be issued administratively, without a public hearing, unless a cultural resources evaluation, prepared by a qualified consultant as determined by the zoning administrator, determines that the building or structure is eligible for listing on the city Historic Building Survey. 3 California Coastal Commission in case of CLUP policy, CLIP elements. 4 At a regularly scheduled meeting, a majority of the council may take an action to direct any project or amendment to be called from a lower hearing body prior to a final action or during an appeal period in accordance with Section 24.04.175(2).

5. An appellant must exhaust all local appeals before an appeal can be made to the California Coastal Commission, unless the Coastal Permit is processed concurrently with other permits pursuant to Section

24.04.150 (for example, a Design Permit, a Use Permit, etc.). Because the City charges an appeal fee pursuant to Section 24.04.070 for appeals of Coastal Permits processed concurrently with other permits, Section 30603(c) of the Coastal Act does not require an appellant to exhaust all local appeals before a project can be appealed to the California Coastal Commission. The City does not charge a fee for local appeals of standalone Coastal Permits (i.e., where the Coastal Permit is not accompanied by any other permits).

Section 2. Section 24.04.160 – Life of Permit of Chapter 24.04 - Administration of Title 24 – Zoning Ordinance of the City of Santa Cruz Municipal Code is hereby amended as follows:

24.04.160 LIFE OF PERMIT.

1. Expiration.
a. Each approved permit shall expire and become null and void thirty-six months from the date on which it is approved, unless exercised; a lesser time period may be specified. A relocation permit shall be exercised within six months. b. An approved permit applies to the subject property and runs with the land. Once exercised, an approved permit remains effective unless terminated or modified and remains effective even if the subject property is rezoned.
c. An approved permit is transferable to any future owner of the subject property. d. Any modification to projects involving a Coastal Permit shall be found consistent with the certified Local Coastal Plan and shall follow the Notice of Final Action procedures included in Section 24.08.260.

23.10 e. Any use permit which has been exercised shall expire and become void where the use has ceased for a period of six consecutive months, whether or not it is the intent to abandon said use.
f. All active permits as of March 10, 2009, and those approved up to and including March 10, 2010, shall have the life of the permit automatically extended an addition one year from the length of time currently allowed under subsection (1)(a). This extension authorization shall expire on March 11, 2011, unless otherwise extended by the city council.

2. Extension of Permits. Any permit issued in conjunction with a project that has had its tentative subdivision map or parcel map extended pursuant to the provisions of the California Subdivision Map Act, Government Code Sections 66410 et seq. or the city’s Subdivision Ordinance, S.C.M.C. Title 23, shall have its associated land use permits automatically extended for a period coextensive to any extension of the tentative subdivision map or parcel map attributable to the application of Subdivision Map Act or Subdivision Ordinance provisions.

3. Revocation of Permits. In any case where the conditions to the granting of a permit have not been or are not complied with, the decision-making body with final authority over said permit shall give notice thereof to the permittee, which notice shall specify a reasonable period of time within which to perform said conditions and correct said violation. If the permittee fails to comply with said conditions, or correct said violation, within the time allowed, notice shall be given to the permittee of intention to revoke such permit at a hearing to be held not less than ten calendar days after the date of such notice. Following such hearing and, if good cause exists therefor, the decision-making body with final authority over said permit may revoke such permit.

4. Modifications.
a. Minor Modifications. The zoning administrator may modify conditions imposed on any permit at the request of the permit holder where evidence has been submitted that the requested modifications:
(1) Will not significantly alter the approved permits; and (2) Are made on the basis of changed circumstances since the original approval; and (3) Would not contradict or go against any direction in the record that was instrumental in the approval of the original permit.: and (4) In the case of a housing development application, that the requested modification applies to a variation from a design standard that was previously reviewed at a public hearing as an alternative design, or does not involve a variation from the design standards of Section 24.12.185.
b. Minor Modification Criteria. The zoning administrator may approve any requested minor modifications on any permit which involves minor increases in floor area that do not exceed fifteen percent of the approved project or involve use intensifications permitted by the zone that do not increase parking above fifteen percent of the approved parking for the project, or approve partial variation from one of the standards in Section 24.12.185 without a public hearing as long as the proposed modification is consistent with all sections of the Zoning Ordinance, or the purpose of the standard in Section 24.12.185 as applicable. Only one such modification or project will be allowed within any five-year period without review by the planning commission or at a publicly noticed zoning administrator hearing if the original approval was administrative or was decided at a public hearing before the zoning administrator. Minor modifications not related to such increases in floor area or use intensifications may be approved without a public hearing and are not subject to the five year limitation.

23.11 c. Major Modifications. The zoning administrator shall refer to the decision-making body with final authority for review and action any requested modifications which involve significant increases in size or nature of an approved project beyond those limits set in subsection (4)(b). A public hearing will be required unless the permit proposed for modification was approved administratively, in which case the modification may also be decided administratively, or may be elevated at the discretion of the zoning administrator.

In the case of a housing development project, any variation from a requirement of Section

24.12.185 that was not previously reviewed at a public hearing, shall trigger the need for a public hearing at the level indicated by 24.08.420.

Section 3. Section 24.04.182 - Procedure for Appeals of Chapter 24.04 - Administration of Title 24 – Zoning Ordinance of the City of Santa Cruz Municipal Code is hereby amended as follows:

24.04.182 PROCEDURE FOR APPEALS.

1. A written notice of appeal, together with the appropriate fee, except for development projects which only require a coastal permit that is appealable to the Coastal Commission where no fee will be charged, must be received by the secretary to the zoning board or the city clerk not later than ten calendar days following the date of action from which such appeal is being taken, unless otherwise specified in this chapter. If the final day for filing an appeal occurs on a weekend day or holiday the final filing date shall be extended to the following workday.

2. Once filed, appeals may be withdrawn only at a public hearing and with approval of the hearing body.

Section 4. For areas of the City outside the Coastal Zone this ordinance shall take effect and be in force thirty (30) days after final adoption, and for areas of the City located inside the Coastal Zone this ordinance shall take effect and be in force thirty (30) days after final adoption but only following verification by the Executive Director of the California Coastal Commission that the approved ordinance conforms to the modifications requested by the California Coastal Commission.

PASSED FOR PUBLICATION this 23rd day of January, 2024, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

23.12 PASSED FOR FINAL ADOPTION this ____ day of February, 2024 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ___________________________
Fred Keeley, Mayor
ATTEST: ___________________________
Bonnie Bush, City Clerk Administrator
This is to certify that the above
and foregoing document is the
original of Ordinance No. 2024-___________
and that it has been published or
posted in accordance with the
Charter of the City of Santa Cruz.
___________________________
City Clerk Administrator

23.13 ORDINANCE NO. 2024-XX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ AMENDING CHAPTERS 24.04 – ADMINISTRATION
Section 1. Section 24.04.130 – Decision-Making Body With Final Authority on Application Approval of Chapter 24.04 - Administration of Title 24 – Zoning Ordinance of the City of Santa Cruz Municipal Code is hereby amended as follows:

24.04.130 DECISION-MAKING BODY WITH FINAL AUTHORITY ON APPLICATION APPROVAL.

The following table indicates the decision-making body who can approve, deny or conditionally approve an application, whether or not a public hearing is required, and the bodies to which appeals can be made:

1. The planning commission and city council may refer certain aspects of any application to the zoning administrator for final action.

2. The zoning administrator may refer any of the matters on which he/she is authorized to act to the planning commission or historic preservation commission.

3. Recommendations for approval on General Plan matters and zoning ordinance text and map amendments shall require a majority vote of the planning commission; all other actions shall require a majority of the hearing body present at the meeting.

Public Hearing Requirement and Decision-Making
Body Which Can Approve an Application
No
Public
Hearin
g
Permits/Actions**** Public Hearing
Action Recommendati
on
Action
Appeal Bodies
(in order)
Coastal Permit ZA
(ADU1)
ZA1 CPC/CC/CCC1
Administrative Use Permit:

Temporary uses, variations to
parking design requirements and
number of spaces, low risk alcohol

ZA CPC/CC

23.14 outlets, and half baths in accessory
buildings
Other uses as listed by individual
zoning districts as requiring an
Administrative Use Permit

ZA CPC/CC
Conditional Fence Permit ZA ZA CPC/CC
Slope Regulations Modifications
(Variance) in the Coastal Zone
CPC CC
Slope Development Permit (on or
within 20 feet of a 50% or greater
slope) outside the Coastal Zone

ZA CPC/CCC
Slope Regulations Modifications
(Design Permit) in the Coastal
Zone

ZA CPC/CC
Slope Development Permit (on or
within 20 feet of a slope greater
than or equal to 30% and less than
50%) outside the Coastal Zone

ZA CPC/CC
Design Permit ZA CPC/CC

1. Substandard lots: New twostory structures and secondstory additions with a singlefamily residential use, excluding ADUs

ZA CPC/CC

2. Large homes per
Section 24.08.450

ZA CPC/CC

3. Wireless telecommunications
facilities

ZA ZA CPC/CC

4. New structures or
improvements to existing
structures in the WCD
Overlay which are exempt or
excluded from coastal permit
requirements

ZA CPC/CC

23.15 5. New structures or
improvements to existing
structures in the WCD
Overlay which require a
coastal permit

ZA CPC/CC

6. Mixed-Use or Residential
Development conforming to
all standards of Section

24.12.185
ZA

7. Mixed-Use or Residential
Development varying from
no more than five standards
of Chapter 24.12.185 of the
Municipal Code
ZA

8. Mixed-Use or Residential
Development that varies
from six or more standards of
Chapter 24.12.185 of the
Municipal Code
CPC
Demolition Permit

1. Single-family residential ZA CPC/CC

2. Multifamily residential CPC CC

3. Historic demolition permit HPC CC

4. Nonresidential ZA2 ZA2 CPC/CC
General Plan Text and Map
Amendments
C CC/CCC 3
Historic Alteration Permit HPC CC
Administrative Historic Alteration
Permit

ZA HPC/CC
Historic Building Survey:

Building designation, deletion HPC CC

23.16 Historic District Designation HPC/CPC CC
Historic Landmark Designation HPC CC
Mobile Homes (Certificate of
Compatibility)

ZA CPC/CC
Mobile Home Park Conversion CPC CC
Outdoor Extension Areas per
Section 24.12.192

ZA CPC/CC
Planned Development Permit CPC CC
Project (Major) Modification Hearing by ZA or body
approving application
Appeal to next
highest
body(ies)
Project (Minor) Modification ZA CPC/CC
Relocation of Structures Permit ZA CPC/CC
Revocation Permit Hearing by ZA or body
approving application
Appeal to next
highest
body(ies)
Sign Permit ZA CPC/CC
Special Use Permit CPC CC
Variance ZA CPC/CC
Watercourse Variance CPC CC
Watercourse Development Permit ZA CPC/CC
Zoning Ordinance Text and Map
Amendments
Amendments recommended by CPC CPC CC/CCC 3
Amendments not recommended by CPC CPC CC/CCC 3

23.17 CCC = California Coastal Commission CC = City Council CPC = City Planning Commission
HPC = Historic Preservation Commission ZA = Zoning Administrator 1 For projects seaward of the mean high tide line, and in the case of appealable actions, the California Coastal Commission shall be the decision-making body which can finally approve an application. In the coastal zone, all proposed accessory dwelling units shall require a coastal permit (unless they are exempt or excluded from coastal permit requirements) and shall be processed in the manner described in Chapter 24.04 and Section 24.08.200 et seq. (including in terms of public noticing and process for appeal to the Coastal Commission) except that no public hearing shall be required. In addition to all other applicable LCP requirements, standards for ADUs in the coastal zone are specified in Section 24.12.140(10). 2 Such permits shall be issued administratively, without a public hearing, unless a cultural resources evaluation, prepared by a qualified consultant as determined by the zoning administrator, determines that the building or structure is eligible for listing on the city Historic Building Survey. 3 California Coastal Commission in case of CLUP policy, CLIP elements. 4 At a regularly scheduled meeting, a majority of the council may take an action to direct any project or amendment to be called from a lower hearing body prior to a final action or during an appeal period in accordance with Section 24.04.175(2).

5. An appellant must exhaust all local appeals before an appeal can be made to the California Coastal Commission, unless the Coastal Permit is processed concurrently with other permits pursuant to Section

24.04.150 (for example, a Design Permit, a Use Permit, etc.). Because the City charges an appeal fee pursuant to Section 24.04.070 for appeals of Coastal Permits processed concurrently with other permits, Section 30603(c) of the Coastal Act does not require an appellant to exhaust all local appeals before a project can be appealed to the California Coastal Commission. The City does not charge a fee for local appeals of standalone Coastal Permits (i.e., where the Coastal Permit is not accompanied by any other permits).

Section 2. Section 24.04.160 – Life of Permit of Chapter 24.04 - Administration of Title 24 – Zoning Ordinance of the City of Santa Cruz Municipal Code is hereby amended as follows:

24.04.160 LIFE OF PERMIT.

1. Expiration.
a. Each approved permit shall expire and become null and void thirty-six months from the date on which it is approved, unless exercised; a lesser time period may be specified. A relocation permit shall be exercised within six months. b. An approved permit applies to the subject property and runs with the land. Once exercised, an approved permit remains effective unless terminated or modified and remains effective even if the subject property is rezoned.
c. An approved permit is transferable to any future owner of the subject property. d. Any modification to projects involving a Coastal Permit shall be found consistent with the certified Local Coastal Plan and shall follow the Notice of Final Action procedures included in Section 24.08.260.

23.18 e. d. Any use permit which has been exercised shall expire and become void where the use has ceased for a period of six consecutive months, whether or not it is the intent to abandon said use.
f. e. All active permits as of March 10, 2009, and those approved up to and including March 10, 2010, shall have the life of the permit automatically extended an addition one year from the length of time currently allowed under subsection (1)(a). This extension authorization shall expire on March 11, 2011, unless otherwise extended by the city council.

2. Extension of Permits. Any permit issued in conjunction with a project that has had its tentative subdivision map or parcel map extended pursuant to the provisions of the California Subdivision Map Act, Government Code Sections 66410 et seq. or the city’s Subdivision Ordinance, S.C.M.C. Title 23, shall have its associated land use permits automatically extended for a period coextensive to any extension of the tentative subdivision map or parcel map attributable to the application of Subdivision Map Act or Subdivision Ordinance provisions.

3. Revocation of Permits. In any case where the conditions to the granting of a permit have not been or are not complied with, the decision-making body with final authority over said permit shall give notice thereof to the permittee, which notice shall specify a reasonable period of time within which to perform said conditions and correct said violation. If the permittee fails to comply with said conditions, or correct said violation, within the time allowed, notice shall be given to the permittee of intention to revoke such permit at a hearing to be held not less than ten calendar days after the date of such notice. Following such hearing and, if good cause exists therefor, the decision-making body with final authority over said permit may revoke such permit.

4. Modifications.
a. Minor Modifications. The zoning administrator may modify conditions imposed on any permit at the request of the permit holder where evidence has been submitted that the requested modifications:
(1) Will not significantly alter the approved permits; and (2) Are made on the basis of changed circumstances since the original approval; and (3) Would not contradict or go against any direction in the record that was instrumental in the approval of the original permit.: and (4) In the case of a housing development application, that the requested modification applies to a variation from a design standard that was previously reviewed at a public hearing as an alternative design, or does not involve a variation from the design standards of Section 24.12.185.
b. Minor Modification Criteria. The zoning administrator may approve any requested minor modifications on any permit which involves minor increases in floor area that do not exceed fifteen percent of the approved project or involve use intensifications permitted by the zone that do not increase parking above fifteen percent of the approved parking for the project, or approve partial variation from one of the standards in Section 24.12.185 without a public hearing as long as the proposed modification is consistent with all sections of the Zoning Ordinance, or the purpose of the standard in Section 24.12.185 as applicable. Only one such modification or project will be allowed within any five-year period without review by the planning commission or at a publicly noticed zoning administrator hearing if the original approval was administrative or was decided at a public hearing before the zoning administrator. Minor modifications not related to such increases in floor area or use

23.19 intensifications may be approved without a public hearing and are not subject to the five year limitation.
c. Major Modifications. The zoning administrator shall refer to the decision-making body with final authority for review and action any requested modifications which involve significant increases in size or nature of an approved project beyond those limits set in subsection (4)(b). A public hearing will be required unless the permit proposed for modification was approved administratively, in which case the modification may also be decided administratively, or may be elevated at the discretion of the zoning administrator.

In the case of a housing development project, any variation from a requirement of Section

24.12.185 that was not previously reviewed at a public hearing, shall trigger the need for a public hearing at the level indicated by 24.08.420.

Section 3. Section 24.04.182 - Procedure for Appeals of Chapter 24.04 - Administration of Title 24 – Zoning Ordinance of the City of Santa Cruz Municipal Code is hereby amended as follows:

24.04.182 PROCEDURE FOR APPEALS.

1. A written notice of appeal, together with the appropriate fee, except for development projects which only require a coastal permit that is are appealable to the Coastal Commission where no fee will be charged, must be received by the secretary to the zoning board or the city clerk not later than ten calendar days following the date of action from which such appeal is being taken, unless otherwise specified in this chapter. If the final day for filing an appeal occurs on a weekend day or holiday the final filing date shall be extended to the following workday.

2. Once filed, appeals may be withdrawn only at a public hearing and with approval of the hearing body.

23.20 STATE OF CALIFORNIA — NATURAL RESOURCES AGENCY GAVIN NEWSOM, GOVERNOR

CALIFORNIA COASTAL COMMISSION CENTRAL COAST DISTRICT
725 FRONT STREET, SUITE 300
SANTA CRUZ, CA 95060
PHONE: (831) 427-4863
WEB: WWW.COASTAL.CA.GOV
W15a
Prepared October 27, 2023 for November 15, 2023 Hearing To: Commissioners and Interested Persons
From: Kevin Kahn, Central Coast District Manager
Kiana Ford, Coastal Planner
Subject: City of Santa Cruz LCP Amendment Number LCP-3-STC-23-0006-1-Part B (Objective Design Standards and Code Cleanup)

SUMMARY OF STAFF RECOMMENDATION
The City of Santa Cruz proposes to amend portions of its Local Coastal Program (LCP) Implementation Plan (IP) by modifying IP chapters that establish objective design standards for multi-family dwellings and mixed-use residential development, as well as a series of other miscellaneous ‘clean-up’ of other IP sections to fix errors and ensure compliance with various new State and Federal laws. The proposed changes related to objective design standards are intended to encourage multi-family and mixed-use housing production by creating standards applicable to all such projects. The proposed amendment would not affect objective standards already in place in the LCP (e.g., related to building height, setback, floor area ration, and density); rather, it would make some of the IP’s existing subjective standards related to things such as landscaping, building materials, and overall aesthetics into objective ones, which is intended to facilitate a more streamlined review of such development proposals by making the required standards more clear for all parties involved in the development review process. An applicant may elect to apply such standards to their proposed project and receive a more streamlined review process, or may elect not to and instead continue to apply the existing IP’s more subjective criteria and permit processes. In all cases, however, existing CDP requirements, including in terms of findings and public hearings for certain projects, remain unchanged.

The proposed IP amendment provides additional clarity regarding the design aesthetic of new multi-family and mixed-use residential projects, which should help result in better implementation and an improved design aesthetic overall. The amendment would ensure that new development includes high quality design on a variety of issues (e.g., related to landscaping, visual screening, building materials, pedestrian connections, and related concerns) all meant to clearly establish a common baseline design aesthetic. All new housing, except for new single-family homes and new accessory dwelling units (ADUs), would be eligible to make use of the objective design standards, intended to help facilitate a streamlined review process. All existing development standards,

23.21 LCP-3-STC-23-0006-1-Part B (Objective Design Standards and Code Cleanup)