Santa Cruz City Council
February 13, 2024

EXHIBIT K

INFORMATION NEEDED FOR ESCROW PROCESSING AND CLOSURE
For implementation projects that include Land Acquisition Only:

The Grantee shall provide the following documents to the State Project Representative during the escrow process. Property acquisition escrow documents shall be submitted within the term of this Grant Agreement and after a qualified appraisal has been approved. • Name and Address of Title Company Handling the Escrow • Escrow Number
• Name of Escrow Officer
• Escrow Officer’s Phone Number
• Dollar Amount Needed to Close Escrow
• Legal Description of Property Being Acquired
• Assessor’s Parcel Number(s) of Property Being Acquired • Copy of Title Insurance Report
• Entity Taking Title as Named Insured on Title Insurance Policy • Copy of Escrow Instructions in Draft Form Prior to Recording for Review Purposes • Copy of Final Escrow Instructions
• Verification that all Encumbrances (i.e., Liens, Back Taxes, and Similar Obligations) have been Cleared Prior to Recording the Deed to Transfer Title
• Copy of Deed for Review Purposes Prior to Recording
• Copy of Deed as Recorded in County Recorder’s Office
• Copy of Escrow Closure Notice
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

7.94 Grant Agreement No. 4600015400

EXHIBIT L

PROJECT MONITORING PLAN GUIDANCE
Introduction
For each project contained in Exhibit A, please include a brief description of the project (maximum ~150 words) including project location, implementation elements, need for the project (what problem will the project address) and responds to the requirements listed below.

Project Monitoring Plan Requirements
The Project Monitoring Plan shall contain responses to the following questions:
• What are the anticipated project physical benefits?
• What are the corresponding numeric targets for each project benefit? • How will proposed numeric targets be measured?
• What are baseline conditions?
• When will the targets be met (e.g., upon project completion, five years after completion)? • How often will monitoring be undertaken (e.g., monthly, yearly). • Where are monitoring point locations (e.g., meter located at…, at stream mile…)? Include relevant maps.
• How will the project be maintained (e.g., irrigation, pest management, weed abatement)? • What will be the frequency and duration of maintenance proposed activities? • Are there any special environmental considerations (e.g., resource agency requirements, permit requirements, CEQA/NEPA mitigation measures)?
• Who is responsible for collecting the samples (i.e., who is conducting monitoring and/or maintenance)?
• How, and to whom, will monitoring results be reported (e.g., paper reports, online databases, public meetings)?
• What adaptive management strategies will be employed if problems are encountered during routine monitoring or maintenance?
• What is the anticipated life of the project?
DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

7.95 Grant Agreement No. 4600015400

EXHIBIT M

INVOICE GUIDANCE FOR ADMINISTRATIVE AND OVERHEAD CHARGES The funds provided pursuant to this Agreement may only be used for costs that are directly related to the funded Project. The following provides a list of typical requirements for invoicing, specifically providing guidance on the appropriate methods for invoicing administrative and direct overhead charges.

Administration Charges
Indirect and General Overhead (i.e., indirect overhead) charges are not an allowable expense for reimbursement. However, administrative expenses that are apportioned directly to the project are eligible for reimbursement. Cost such as rent, office supplies, fringe benefits, etc. can be “Direct Costs” and are eligible expenses as long as:
• There is a consistent, articulated method for how the costs are allocated that is submitted and approved by the Grant Manager. The allocation method must be fully documented for auditors. • A “fully-burdened labor rate” can be used to capture allowable administrative costs. • The administrative/overhead costs can never include:
o Non-project specific personnel and accounting services performed within the Grantee or an LPS’ organization
o Markup
o Tuition
o Conference fees
o Building and equipment depreciation or use allowances • Using a general overhead percentage is never allowed
Labor Rates
The Grantee must provide DWR with supporting documentation for personnel hours (see personnel billing rates letter in example invoice packet). The personnel rate letter should be submitted to the DWR Grant Manager prior to submittal of the first invoice. The supporting documentation must include, at a minimum, employee classifications that will reimbursed by grant funds and the corresponding hourly rate range. These rates should be “burdened”; the burdened rate must be consistent with the Grantee’s/Local Project Sponsors standardized allocation methodology. The supporting documentation should also provide an explanation of what costs make up the burdened rate and how those costs were determined. This information will be used to compare against personnel hours summary table invoice back up documentation. Periodic updates may be needed during the life of the grant which would be handled through a revised billing rate letter.

DocuSign Envelope ID: BE0EF17D-3C00-470D-B25E-740667DB1A1F

7.96 City of Santa Cruz Professional Services Agreement for Decision-Support Tool – Understanding Climate Influenced River Flooding
January 2024 (Form Rev.0822) Page 1

PROFESSIONAL SERVICES AGREEMENT FOR
DECISION-SUPPORT TOOL – UNDERSTANDING CLIMATE INFLUENCED RIVER FLOODING THIS AGREEMENT for professional services is made by and between the City of Santa Cruz (“City”) and Environmental Science Associates (ESA) (“Consultant”) (each is referred to individually as a “Party” and collectively, as the “Parties”) as of March 1, 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 Laura Schmidt of the City Manager Department, hereinafter called "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 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.

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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 shall be made within the budget limit, or limits shown, and at the rates shown in 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.

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.

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
The City shall not be responsible for any travel, meal, or lodging reimbursements to Consultant and/or Consultant’s employees.

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: TIME OF BEGINNING AND SCHEDULE FOR COMPLETION The term of this Agreement shall be on the effective date of this Agreement and terminating on August 30, 2023.

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.

The Work Schedule for completion of the work shall be as shown upon Exhibit C. In the event that major changes are ordered, the schedule for completion as stated in Exhibit C may be adjusted by City so as to allow Consultant a reasonable period of time within which to complete any additional work which may be required as a result of the ordered changes.

7.98 City of Santa Cruz Professional Services Agreement for Decision-Support Tool – Understanding Climate Influenced River Flooding
January 2024 (Form Rev.0822) Page 3
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.

Consultant acknowledges that it is necessary for Consultant to complete its work on or before the completion date set forth in Exhibit C in order to allow the City to achieve its objectives for entering into this Agreement. The Parties therefore agree that time is of the essence in the performance of this Agreement.

SECTION 8: TERMINATION
The City may terminate the Agreement for convenience 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 such 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 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 D. 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.

7.99 City of Santa Cruz Professional Services Agreement for Decision-Support Tool – Understanding Climate Influenced River Flooding
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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.

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.

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SECTION 14: MISCELLANEOUS PROVISIONS

1. Project Manager/Key Staff. Director reserves the right to confer with Consultant regarding the project manager or other key staff assigned by Consultant to perform the work under this Agreement. No change in assignment may occur without prior written approval of the City. If after notice and an opportunity to address any concerns the City determines any project manager or other key staff is incompetent or unqualified, Consultant will be notified and will be expected to immediately address the issues to the City’s satisfaction.

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 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 avoid any conflicts of interest in 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 Political Reform Act, Section 1090 of the Government Code, and the City’s conflict of interest 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. Unless otherwise provided herein, 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

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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, computer software 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 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.

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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 sub-contractors, 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 three 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 to Consultant.

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.

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.

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.

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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.
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

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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, 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, 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.

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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 overnight Federal Express or priority U.S. Mail, addressed to recipient as follows:

To CITY:

City Manager’s Office
Tiffany Wise-West
809 Center Street
Santa Cruz, CA 95060
[email protected]
(831) 420-5433
To CONSULTANT:

Environmental Science Associates (ESA)
James Gregory, Engineer/Hydrologist
180 Grand Avenue, Suite 1050
Oakland, CA 96412
[email protected]
(510) 463-6742
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.

29. State and Federal Requirements. When funding for the services is provided, in whole or in part, by an agency of the state and/or federal government, Consultant shall also fully and adequately comply with the State and Federal Grant Requirements in Exhibit E attached hereto and incorporated herein by reference. With respect to any conflict between such Federal Grant Requirements and the terms of this Agreement and/or the provisions of state law, the more stringent requirement shall control. [SIGNATURES ON FOLLOWING PAGE]

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Approved As To Form:

By: _____________________________ Date: __________________ Office of the City Attorney

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

CONSULTANT
By: _____________________________ Date: __________________ Printed: ___________________________ Title: __________________ 01-24-2024
1/26/2024
Christie Beeman Director

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EXHIBIT A: SCOPE OF WORK
The overall scope of work for this project will be completed by two consultants, Environmental Science Associates (ESA) and Simon Fraser University (Dr. Shawn Chartrand). The scope of work to be performed by ESA includes:

Task 1. Compile and review existing hydrologic, hydraulic and sediment data ESA and Dr. Shawn Chartrand will review existing hydrologic, hydraulic, and sediment data for the San Lorenzo River watershed and evaluate any data gaps needed prior to conducting the analysis. We currently have the USACE HEC-6T model representing 2011 channel conditions, updated by ESA for use in the Bankfull Channel design effort for the City.

Task 2. Develop hydroclimate scenarios
Developing the future climate scenarios will require identifying which climate models, emissions trajectories, and future time periods to use in characterizing future flood conditions on the San Lorenzo River. Dr. Shawn Chartrand (formerly with Balance Hydrologics and currently staff at Simon Fraser University) has evaluated a set of General Circulation Models, and emissions trajectories known as representative concentration pathways (RCPs) as part of a water supply modeling analysis conducted for the City (BH, 2018a, DRAFT Review of CMIP5 Climate Change Hydrology Projections for the HCP). To build on the work that has been done to date, ESA will coordinate with Dr. Shawn Chartrand and the City to select the appropriate GCMs, RCPs, and time horizons to pursue for the analyses described in the following tasks. ESA will assist in assessing the data to be consistent with Dr. Chartrand’s prior work with water supply (which is focused on volume of water, typically associated with longer durations and seasonal cumulative amounts) while emphasizing flood hydraulics (which is focused on peak rainfall, typically associated with shorter duration rare events).

Recent work (2018b, DRAFT Status of Understanding: Use of Climate Projections to Evaluate Future Hydrologic Conditions) characterizing differences between previously used climate projections will be referenced in establishing the scenario framework developed. Dr. Chartrand used previous projections of precipitation and air temperature to characterize projections as dry/cool, wet/cool, dry/warm or wet/warm relative to the Maurer et al. (2012) reanalysis historical data set for the San Lorenzo River watershed (spatial average). Coupled with probability density estimates, this analysis will be used to identify the relative risk level of a particular projection, or subset of a projection, for example a dual 95-percentile event or period from a projection. Together, the City, ESA and Dr. Chartrand will use this information to identify the ensemble of scenarios that will be evaluated.

The scenarios will include up to three future time periods, two emissions scenarios, and two formulations of climate model ensembles (i.e., model mean, 95th percentile of model distribution) to characterize the range of future climate conditions over time and reflect uncertainty in projected climate data.

Task 3. Characterize extreme stream flows
Three options are possible for characterizing extreme streamflow: (1) using existing downscaled climate products of surface and subsurface flow, or (2) adapting the results from an existing hydrologic model of the system to investigate peak flow increases, or (3) developing a hydrologic model of the watershed capable of simulating extreme flood events and using downscaled rainfall data to drive the model. Option 1 relies more heavily on using existing data. Option 2 could include adapting the watershed modeling conducted by Dr. Chartrand to simulate extreme events at a daily time step. Option 3 entails using a different modeling approach with industry-standard software packages. ESA and Dr. Chartrand will use all three options to test the hypothesis that they will provide similar results, explore the degree of concurrence between the methods, and provide valuable insight to others that may want to undertake similar work in the region.

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Task 4. Conduct two-dimensional hydrodynamic modeling
ESA will utilize the existing USACE 1-D HEC-6T and HEC-RAS models of the in-channel portion of the San Lorenzo River and expand the model to include the overbank areas as 2D floodplain elements utilizing HEC-RAS

5. ESA will evaluate the suitability of the HEC-6T and HEC-RAS models and make a determination of which model to use for characterizing sediment transport conditions for the riverbed. Levee failures and river avulsion are not included in this analysis.

Coastal Boundary Condition
ESA will develop the coastal boundary conditions for existing and future scenarios in the San Lorenzo River that are consistent with the climate scenarios used to develop future river flooding hydrographs. The downstream boundary conditions will approximately address the joint probability between 100-year river flood event and ocean still water levels with coastal storm surge and sea level rise. For characterizing the coastal storm surge, we expect to limit setup of the ocean boundary condition to regional wind-driven average values, but will also consider whether to add dynamic wave setup, either at the mean or extreme level. The downstream boundary conditions will also account for littoral (coastal) sediment supply relative to demand for bed aggradation driven by sea-level rise. The coastal sediment supply will be based on published sand transport values, compared to the sediment demand within the lower river formed by rising sea-levels as well as the sand transport potential computed using ESA’s lagoon quantified conceptual model (QCM) as previously applied and calibrated for the San Lorenzo River Estuary Lagoon and Mouth. In coordination with the City, ESA will develop an appropriate single assumption to represent this anticipated change.

River Bed Condition
ESA will use either the existing HEC-6T or HEC-RAS models to simulate morphodynamic change in the upstream reaches of the river bed based on the assumed elevated downstream boundary condition.

Future Management Scenarios
ESA will assess sensitivity of selected extreme events under potential future management scenarios that would reflect different approaches that the City may take for managing the system (e.g., raising levees, sediment management, etc.). ESA and Dr. Chartrand will meet with the City to formulate these alternatives at the beginning of the project. It is assumed that the number of potential management scenarios will be limited to no more than 5 scenarios, and these will be analyzed under key, selected hydraulic runs at mid- and late-century time horizons.

Climate Scenarios
ESA will model and analyze the climate scenarios developed under Task 2. This corresponds to a maximum of 12 scenarios combining climate and management conditions.

Task 5. Develop floodplain mapping
ESA will import the results of the hydrodynamic modeling into GIS to create shapefiles of floodplain extents for the future time periods and climate horizons. The flooding extents will be mapped using the 2009/2010 NOAA open coast LiDAR dataset. ESA will provide the GIS files to the City including metadata consistent with the parameters previously used to facilitate use by TNC and posting on the Coastal Resilience (CR) website. ESA will coordinate with TNC to confirm their formatting needs.

Task 6. Prepare technical documentation
A technical report will be drafted to document the analysis assumptions, tools, results, and final flood hazard deliverables for the study. Time has been included for a draft of this report and a final version of the report reflecting response to comments from the City.

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Task 7. Perform project management and coordination
Monthly coordination calls between the City, ESA, and Dr. Chartrand will be conducted to discuss work progress, critical issues, budget status, and project goals for the succeeding month. ESA will provide monthly progress reports summarizing these calls and documenting progress and next steps

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EXHIBIT B: FEE SCHEDULE
Task # Task Name/Description ESA
1 Compile and review existing information $ 3,154
2 Hydroclimate scenario framework $ 5,304
3 Extreme streamflow characterization $ 51,608
4 Conduct 2D hydrodynamic modeling $ 39,332
5 Develop floodplain mapping $ 6,634
6 Prepare technical documentation $ 21,560
7 Perform project management and coordination $ 12,720
Total Labor $ 140,312
Expenses $ 880
Total $ 141,192

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EXHIBIT C: WORK SCHEDULE
Tasks (Months)
2024 2025
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
1 Compile and review existing
information (2)
2 Develop hydroclimate
scenarios (2)
3 Characterize extreme
streamflows (4)
4 Conduct 2D hydrodynamic
modeling (6)
5 Develop floodplain mapping
(4)
6 Assess salinity changes at
Tait Street intake (4)
7 Prepare technical
documentation (5)
8 Perform project
management and
coordination (12)

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EXHIBIT D: 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 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. If a general aggregate limit applies, either the general aggregate limit will apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit will be at least twice the required occurrence limit. • 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.

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• 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.

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 Contractor has no employees, Contractor 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, and volunteers are to be covered as additional insureds on the CGL policy 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.

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). • PRIMARY COVERAGE
For any claims related to this Agreement, Consultant’s insurance coverage will be primary and noncontributory 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 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 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.

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• 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 and any Excess Liability/Umbrella policies listing all policy endorsements to 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 require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that City is an additional insured on insurance required from subcontractors.

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.

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EXHIBIT E: STATE GRANT REQUIREMENTS
Funding for this project is supported in part by a grant award from the California Department of Water Resources’ Proposition 1 Implementation Grant to the Regional Water Management Foundation (RWMF). The RWMF (Grantee) received and entered into an agreement with the State of California (Agreement #4600015400) funded by the Water Quality, Supply, and Infrastructure Improvement Act of 2014 (Proposition 1). The City of Santa Cruz (sub-grantee) entered into Local Project Sponsor (LPS) Agreement with the RWMF to receive grant funding for services to be performed by the Consultant and its consultants, contractors or subcontractors (collectively, “Consultant”). The Grant Agreement identifies all terms and conditions appliable to the LPS and the Consultant. For reference, a summary of terms and conditions the applicable to the consultant are provided below. To comply with the conditions of the Agreement, the Consultant agrees to the following:

INELIGIBLE PROJECT COST. Costs that are not eligible for reimbursement by grant funds include, but are not limited to the following items:

A. Purchase of equipment not an integral part of a project.

B. Travel and per diem costs, except for mileage. Mileage reimbursement will be at the State travel amounts that are current as of the date costs are incurred.

C. Meals, food items, or refreshments.

D. Generic overhead or markup (e.g., 10% mark-up on sub-contractor labor, materials, supplies).

This prohibition applies to the Consultant and any subcontract or sub-agreement for work on the Project that will be reimbursed pursuant to this Agreement. This is consistent with Grant Agreement Item 7.

ACCOUNTING: The Consultant shall maintain books, records, and other documents pertinent to their work in accordance with generally accepted accounting principles and practices. Records are subject to inspection by the State at any and all reasonable times. This is consistent with Grant Agreement Standard Condition D1.

AUDITS: Pursuant to Government Code §8546.7, the Consultant shall be subject to the examination and audit by the State for a period of three (3) years after final payment under this Grant Agreement with respect to all matters connected with this Grant Agreement. All records of the Consultant and its contractor or subcontractors shall be preserved for this purpose for at least three (3) years after receipt of the final disbursement under this Agreement. This is consistent with Grant Agreement Standard Condition D.5.

CONFLICT OF INTEREST: The Consultant is subject to State and Federal conflict of interest laws.

Failure to comply with these laws, including business and financial disclosure provisions, will result in the application being rejected and any subsequent contract being declared void. Other legal action may also be taken. Applicable statutes include, but are not limited to, Government Code, §1090 and Public Contract Code, §10410 and §10411, for State conflict of interest requirements. This is consistent with Grant Agreement Standard Condition D.13.

DRUG-FREE WORKPLACE CERTIFICATION: The Consultant hereby certifies, under penalty of perjury under the laws of State of California, compliance with the requirements of the Drug-Free Workplace Act of 1990 (Government Code §8350 et seq.) and have or will provide a drug-free workplace. This is consistent with Grant Agreement Standard Condition D.16.

ADDITIONAL INSURED: The Consultant and its Contractors and subcontractors shall name the State, its officers, agents, and employees as additional insured on their liability insurance for activities undertaken pursuant to this Agreement. This is consistent with Grant Agreement Standard Condition D.22.

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INSPECTION OF PROJECT BY STATE: The State shall have the right to inspect the work being performed at any and all reasonable times during the term of the Grant Agreement. This right shall extend to any subcontracts, and contractor shall include provisions ensuring such access in all its contracts or subcontracts entered into pursuant to the Grant Agreement with State. This is consistent with Grant Agreement Standard Condition D.25.

LABOR CODE COMPLIANCE: The Consultant and its contractors or subcontractors agree to be bound by all the provisions of the Labor Code regarding prevailing wages and shall monitor all contracts subject to reimbursement from this Agreement to assure that the prevailing wage provisions of the Labor Code are being met. Current Department of Industrial Relations (DIR) requirements may be found at:
http://www.dir.ca.gov/ lcp.asp. For more information, please refer to DIR’s Public Works Manual at:
https://www.dir.ca.gov/ dlse/PWManualCombined.pdf. The contractor(s) and subcontractor(s) affirms that it is aware of the provisions of section 3700 of the Labor Code, which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance, and the contractor and subcontractor affirms that it will comply with such provisions before commencing the performance of the work under this Agreement and will make its contractors and subcontractors aware of this provision. This is consistent with Grant Agreement Standard Condition D.26.

NONDISCRIMINATION: During the performance of this Grant Agreement, the Consultant and its contractors or subcontractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex (gender), sexual orientation, gender identity, race, color, ancestry, religion, creed, national origin (including language use restriction), pregnancy, physical disability (including HIV and AIDS), mental disability, medical condition (cancer/genetic characteristics), age (over 40), marital/domestic partner status, and denial of medical and family care leave or pregnancy disability leave. The Consultant and its contractors or subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. The Consultant and its contractors or subcontractors shall comply with the provisions of the California Fair Employment and Housing Act (Gov. Code, § 12990.) and the applicable regulations promulgated there under (Cal. Code Regs., tit. 2, § 11000 et seq.). The applicable regulations of the Fair Employment and Housing are incorporated into this Agreement by reference. The Consultant and its contractors or subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other Agreement. The Consultant shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the Grant Agreement. This is consistent with Grant Agreement Standard Condition D.28.

PERFORMANCE BOND: Construction shall not be authorized to begin until each contractor has furnished a performance bond in favor of the Grantee or the Local Project Sponsor in the following amounts: faithful performance (100%) of contract value, and labor and materials (100%) of contract value. This requirement shall not apply to any contract for less than $25,000.00. Any bond issued pursuant to this paragraph must be issued by a California-admitted surety. (Pub. Contract Code, § 7103; Code Civ. Proc., § 995.311.) This is consistent with Grant Agreement Standard Condition D.30.

SUSPENSION OF PAYMENTS: This agreement may be subject to suspension of payments or termination, or both if the State determines that:

A. The Consultant, its contractors, or subcontractors have made a false certification, or B. The Consultant, its contractors, or subcontractors violates the certification by failing to carry out the requirements noted in this Grant Agreement.

This is consistent with Grant Agreement Standard Condition D.39.

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City Council

AGENDA REPORT
DATE: 01/25/2024
AGENDA OF: 02/13/2024
DEPARTMENT: Economic Development and Housing
SUBJECT: Resolution Establishing the 2024 Security Deposit Interest Rate for Residential Rental Property (ED)
RECOMMENDATION: Resolution establishing the 2024 interest rate for the residential security deposits at 0.03% and rescinding Resolution No. NS-30,096.

BACKGROUND: Santa Cruz Municipal Code (SCMC) Chapter 21.02 requires that residential renters be paid interest on any security deposit totaling more than fifty dollars ($50.00) held by the landlord. The section further stipulates that the Santa Cruz County Treasurer-Tax Collector annually sets a recommended interest rate for security deposits, which is then adopted by the Santa Cruz County Board of Supervisors. The City Council, by resolution, then adopts that security deposit interest rate for the following year in order to maintain consistency with other jurisdictions within the County.

In early 2013, the City Council amended SCMC Section 21.02.040 to include a subsection permitting landlords to pay tenants’ security deposit interest at the earlier of the following: 1) the termination of tenancy or 2) at the February after accrued interest reaches fifty dollars ($50.00).

In the case that the termination of tenancy occurs before accrued interest reaches fifty dollars, the tenant shall be entitled to a direct payment of the accrued security deposit interest no later than twenty-one (21) days after the tenant has vacated the premises. In the case that the accrued interest reaches fifty dollars ($50.00) before the termination of tenancy, the landlord shall, without demand, pay the tenant the accrued security deposit interest in the form of either a draft payment or a credit against the tenant’s rent (the landlord shall choose between the two methods of payment).

DISCUSSION: In November 2023 the Santa Cruz County Treasurer-Tax Collector conducted a survey of interest paid on savings accounts under $5,000 by six major banking and savings and loan institutions in order to establish the recommended interest rate to be paid on security deposits in 2024. The average interest rate was determined to be 0.03%. The County Board of Supervisors subsequently adopted Resolution No. 218-2023 on December 5, 2023, setting the interest rate at that level effective January 1, 2024.

In accordance with past practices, it is recommended that the 2024 interest rate with the City of Santa Cruz be adjusted retroactive to January 1, 2024 to 0.03%.

8.1 Health in All Policies (HiAP): In terms of assessing this item with respect to the three pillars of Health in All Policies, this action has a direct nexus with equity in that all households renting residential units in the City, including disadvantaged community members, that may be required to provide a security deposit of more than fifty dollars ($50.00) as part of their lease are covered under this section of the municipal code and are entitled to interest on their security deposit as outlined in the code. This resolution will enable the City to provide residential landlords and tenants citywide with the information regarding the current interest rate.

FISCAL IMPACT: None.

Prepared By:

Andrea Inouye
Management Analyst
Jessica de Wit
Housing and Community
Development Manager
Submitted By:

Bonnie Lipscomb
Director of Economic
Development
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

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

ESTABLISHING THE INTEREST RATE FOR RESIDENTIAL SECURITY DEPOSITS AT 0.03% FOR 2024 AND RESCINDING RESOLUTION NO. NS-30,096 WHEREAS, the City of Santa Cruz adopted Ordinance 97-10 on December 9, 1997 amending Chapter 21.02 of the Santa Cruz Municipal Code in order to facilitate uniform regulations throughout the County of Santa Cruz for the payment of interest on residential security deposits; and WHEREAS, Section 21.02.010 requires that the interest rate payable by landlords to tenants on residential security deposits be established from time to time by resolution based on the recommendation of the Santa Cruz County Treasurer-Tax Collector; and WHEREAS, the current rate of interest is 0.01%; and
WHEREAS, in November 2023 the County Treasurer-Tax Collector determined that the average interest rate to be charged in 2024 would be 0.03%, which was duly adopted by the Santa Cruz County Board of Supervisors on December 5, 2023.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz that it hereby rescinds Resolution No. NS-30,096 and establishes the interest rate for residential security deposits at 0.03% retroactive to January 1, 2024.

PASSED AND ADOPTED this 13th day of February 2024, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

8.3 City Council

AGENDA REPORT
DATE: 01/25/2024
AGENDA OF: 02/13/2024
DEPARTMENT: Economic Development and Housing
SUBJECT: City Participation in County-wide Landlord Incentive Program – Contract Amendment and Budget Adjustment (ED)
RECOMMENDATION: Motion to:
1) Approve an amendment to the Agreement between the City of Santa Cruz and the Housing Authority of Santa Cruz County for the County-wide Landlord Incentive Program, authorizing and directing the City Manager to modify the existing Agreement in a form approved by the City Attorney; and
2) Adopt a resolution amending the FY 2024 budget to increase the allocation to the Landlord Incentive Program by $15,000 for the 2023-2024 Program Year.

BACKGROUND: The City of Santa Cruz and the Housing Authority of Santa Cruz County have successfully found another way of providing housing affordability that is based on direct rental subsidy to individual households. The most well-known rent subsidy program is the federal Housing and Urban Development Department’s (HUD’s) Housing Choice Voucher Program (formerly Section 8). Under this program vouchers are granted to qualified households through the local Housing Authority. For the City of Santa Cruz, this is the Housing Authority of the County of Santa Cruz.

HUD defines housing as being affordable if families pay no more than 30% of their household income for housing costs. Under the HUD Section 8/Housing Choice Voucher Program, a household that has been issued a voucher by the Housing Authority pays 30% of their household income for rent and utilities and HUD subsidizes the remainder -- up to a “fair market rent” (FMR) or FMR limit that is established by HUD. If the household moves, these vouchers may be taken with them anywhere in the US.

Tenants frequently have trouble finding landlords who will accept these vouchers. It is not unusual for a household to search for eight or nine months or more for suitable housing where a voucher will be accepted. If a household cannot find a landlord to accept a voucher, they are at risk of losing the voucher and their potential of getting permanent affordable housing. Difficulty in finding landlords to accept vouchers may be partially due to the difference in the true market rents for the Santa Cruz area versus HUD’s definition of FMR. However, many landlords will not even consider Section 8 tenants because they have concerns about the added layers of

9.1 bureaucracy of a federal program as well as potential problems with tenant behavior and/or their treatment of the units.

To address these concerns the Housing Authority and the County of Santa Cruz along with a number of other stakeholders created the Landlord Incentive Program (Program) in 2017 to increase the pool of landlords who will accept vouchers. As a part of this effort, the Housing Authority has added a landlord liaison staff position. The funds each participating jurisdiction commits to the Program are not used unless there are eligible claims within that jurisdiction, and all claims are subject to the availability of funds. The Program is intended to reassure landlords against financial loss if they will accept a Section 8 tenant.

Total original funding for the Program is $100,000 with cost shares divided across participating jurisdictions in proportion to populations. The City of Santa Cruz’s funding level is $21,210 with the County of Santa Cruz at $53,540, Watsonville at $17,170, and Capitola and Scotts Valley both at $4,040, since that time most of these jurisdiction have increased their allocation based on need from the original funding for the programs, today staff is recommending to increase the City’s allocation to reflect the increased demand for these funds and to continue contributing a proportional share to the program.

All the monies provided by the City of Santa Cruz are solely used for City if Santa Cruz residents. The City’s Affordable Housing Trust Fund (AHTF) was approved to fund the Program. The Housing Authority tracks expenditures for the Program County-wide as well as for each jurisdiction. Participating jurisdictions receive quarterly reports of the activity in that jurisdiction.

The Housing Authority has now successfully administered the Program for 4 years and is requesting a modification to the funding allocation in anticipation of increased demand for the remainder of the 2023-2024 program year.

DISCUSSION: The existing Program offers landlords and property managers a risk mitigation fund that would cover up to $2,500 for unpaid rent or damages that exceed the security deposit, as well as vacancy loss and legal fees, if something goes wrong during tenancy. The additional $15,000 allocation will cover the increased need projected by the Housing Authority for the remainder of the 2023-2024 program year through the end of FY 2024.

This additional allocation will help retain existing landlords in the Section 8 program, preserves existing affordable units in the community and helps to mitigate any negative tenant experiences and association with the Housing Choice Voucher program. This $15,000 increase will also help Santa Cruz provide a proportional level of funding as other participating jurisdictions in the Program. Staff recommends approving the requested funding allocation of $15,000 to meet the expected increase and continue Program effectiveness and reach, resulting in the continued longterm affordable unit prerservation in Santa Cruz.

Health in All Policies (HiAP): The recommendation is consistent with the Health in All Policies pillars of equity, public health, and sustainability in that the proposed motion and funding to the Landlord Incentive Program ensures that Housing Choice Voucher households renting residential units in the City will have continued equitable access to high quality, affordable units citywide.

9.2 FISCAL IMPACT: The original Agreement term ends June 30, 2024 at which point any unused funding that remains from the additional $15,000 allocation will be returned to the AHTF. All future funding for this program will be subject to availability of funds in the AHTF and City Council approval annually.

Prepared By:

Andrea Inouye
Management Analyst
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:

1. BUDGET ADJUSTMENT.PDF

9.3 City of Santa Cruz

BUDGET ADJUSTMENT REQUEST
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 Clear Form
2024
01/23/2024
Increase allocation to the Landlord Incentive Program for FY24 by $15,000 0 279-51-81-5201-56960 h511905-100-2020-0 Landlord Incentive Program 15,000 15,000
-15,000
Tiffany
Lake
Digitally signed
by Tiffany Lake
Date: 2024.01.23
15:01:39 -08'00'
Bonnie
Lipscomb
Digitally signed by Bonnie Lipscomb
DN: cn=Bonnie Lipscomb, o, ou,
[email protected],
c=US
Date: 2024.01.30 11:43:18 -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: 2024.01.31 10:00:31 -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: 2024.01.31 10:00:41 -08'00'

9.4 City Council

AGENDA REPORT
DATE: 01/25/2024
AGENDA OF: 02/13/2024
DEPARTMENT: Finance
SUBJECT: Annual Comprehensive Financial Report (ACFR) and Popular Annual Financial Report (PAFR) for the Fiscal Year Ended June 30, 2023 (FN) RECOMMENDATION: Receive and file the Annual Comprehensive Financial Report (ACFR), and related reports, for the fiscal year ended June 30, 2023.

BACKGROUND: Annually, the Finance Department prepares and publishes the City’s Annual Comprehensive Financial Report (ACFR) following the completion of an independent audit. The auditing firm, The Pun Group, LLP conducted the audit for the year ended June 30, 2023, and has issued an unmodified opinion, the highest opinion given for financial statements. This opinion indicates that the financial statements represent fairly, in all material aspects, the financial position of the City in accordance with Generally Accepted Accounting Principles (GAAP) in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States.

The Government Finance Officers Association of the United States and Canada (GFOA) sponsors an award program for excellence in financial reporting. The City has received this Award for excellence for 15 consecutive years. City staff believes the June 30, 2023, ACFR continues to maintain the high standards set by the GFOA and has submitted this year's ACFR for evaluation under this esteemed program.

For the first time, the City is publishing a Popular Annual Financial Report (PAFR) that provides an overview of City finances as well as information on projects, activities, and strategic goals and priorities. This report is designed to be readily accessible and easily understandable to the general public and other interested parties without a background in public finance.

DISCUSSION: State law requires that every general-purpose local government publish an annual report on its financial position and activity and that the report be audited by an independent firm of certified public accountants. Taken together, the ACFR and the budget provide the best overview of the City’s fiscal health and opportunities for future financial stability. Because the ACFR is audited by an independent expert, the report provides additional assurance to the community that the City is being a responsible steward of the community’s tax dollars.

10.1 The City's financial statements, internal documents, and controls have been audited by The Pun Group, LLP. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2023, are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor’s report is presented as the first component of the financial section of the ACFR.

ACFR Organization
The City’s ACFR is organized into three major sections: Introductory, Financial, and Statistical.

The following is a brief summary of the contents of each of these sections:

1. Introductory Section: The letter of transmittal and other information of general interest are presented in this section including the organizational chart, directory of officials as well as the Government Finance Officers Association’s Certificate of Achievement for Excellence in Financial Reporting. The letter of transmittal is an opportunity for management to provide an overview of the City’s activities, prospective information as well as subjective information useful in assessing the City’s economic condition.

2. Financial Section: The financial section includes the report of the independent auditor, management’s discussion and analysis, basic financial statements (including notes), required supplementary information and related notes, combining statements (i.e., non-major funds), and individual fund financial statements and schedules.

3. Statistical Section: The statistical section offers operational, economic, and historical data that provides a context for assessing the City’s economic condition. Such data includes information on financial trends, information on revenue capacity, information on debt capacity, demographic and economic information, and operating information.

ACFR Financial Highlights
The audited financial statements presented will be government-wide, full accrual financial statements, as well as modified accrual fund financial statements prepared in accordance with GAAP, including compliance with pronouncements issued by the Governmental Accounting Standards Board (GASB). The report is designed to highlight changes in the City’s financial condition and practices over time and allow consistencies between all state, municipal, and other governmental agencies.

The Council, and the community at large can view the Transmittal Letter from Elizabeth Cabell, City of Santa Cruz’s Finance Director, and the Management’s Discussion and Analysis that contains the City’s financial highlights within the ACFR posted on the City’s website here:
https://www.cityofsantacruz.com/government/city-departments/finance/financial-reports.

PAFR highlights
The PAFR includes a message from the City Manager, condensed financial reporting including changes in fund balance for governmental funds, and net position statements for proprietary funds. In addition, each department has provided information on their activities during 2023 and

10.2 goals for 2024. The PAFR can be found on the City’s website here:
https://www.cityofsantacruz.com/government/city-departments/finance/financial-reports.

FISCAL IMPACT: None.

Prepared and Submitted By:

Elizabeth Cabell
Director of Finance
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. APPROPRIATIONS LIMIT (GANN) LETTER.PDF

2. AUDIT COMMUNICATION LETTER.PDF

10.3 10.4

10.5 10.6

10.7 10.8

10.9 10.10

10.11 10.12
City Council

AGENDA REPORT
DATE: 01/24/2024
AGENDA OF: 02/13/2024
DEPARTMENT: Public Works
SUBJECT: Neary Street Sewer Rehabilitation (c401511) – Authorization to Advertise and Award (PW)
RECOMMENDATION: Motion to approve the plans and specifications for the Neary Street Sewer Rehabilitation (c401511), 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 changes orders within the approved project budget.

BACKGROUND: The City-owned sanitary sewer mains on Neary Street and Blackburn Street are 6-inch diameter vitrified clay pipes originally installed in 1913. The sewer mains have reached the end of their service life and are in need of constant repairs by City Wastewater Collections crews.

DISCUSSION: The Neary Street Sewer Rehabilitation project will replace 715 linear feet of the deteriorated clay sewer main with new 8-inch diameter polyvinyl chloride or high-density polyethylene pipe on Neary Street and Blackburn Street. Three sanitary sewer manholes will be removed and replaced with new manholes. The storm drain line on Felix Street has also been identified to be deteriorating and will be spot repaired with new corrugated high-density polyethylene pipe. The Neary Street Sewer Rehabilitation project will reduce sewage backups, reduce maintenance operations, and will improve existing street conditions in the area.

The project schedule is as follows:

Bid Opening: March 21, 2024
Start Construction: May 2024
Complete Construction: July 2024
Plans and specifications can be found online at:
https://www.cityofsantacruz.com/government/city-departments/public-works/engineering/publicworks-projects FISCAL IMPACT: The project is estimated to cost $400,000 and is funded in the FY 2024 Wastewater Capital Investment Program project c401511, Sewer System Improvements. There is no impact to the General Fund.

11.1 Prepared By:

Cina Seyedkazemi
Assistant Engineer II
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

Plans and specifications can be found online at:
https://www.cityofsantacruz.com/government/city-departments/public-works/engineering/publicworks-projects

11.2 City Council

AGENDA REPORT
DATE: 01/24/2024
AGENDA OF: 02/13/2024
DEPARTMENT: Public Works
SUBJECT: HSIP10: Unsignalized Crossing Improvement Project (c402215) – Notice of Completion (PW)
RECOMMENDATION: Motion to accept the work of Kraemer Engineering, Inc. (Salinas, CA) as completed per the plans and specifications and authorize the filing of the Notice of Completion for HSIP10: Unsignalized Crossing Improvement Project (c402215).

BACKGROUND: On January 25, 2022, Council authorized and directed the City Manager to advertise for bids and award the contract for the HSIP10: Unsignalized Crossing Improvement Project.

On December 20, 2022, the project was awarded to the lowest responsive and responsible bidder Kraemer Engineering, Inc. (Salinas, CA) in the amount of $233,462.90 (including 10% contingency).

The project installed pedestrian activated rectangular rapid flashing beacon (RRFB) systems at six (6) pedestrians crossings city wide. Other improvements included high-visibility crosswalks, bulb-out/park lane island and ADA compliant curb ramps.

DISCUSSION: The project has been inspected by Public Works staff and found to be constructed in accordance with the plans and specifications.

FISCAL IMPACT: There is no impact to the General Fund.

Prepared By:

Dan Estranero
Associate Professional
Engineer
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. NOTICE OF COMPLETION.DOCX

12.1 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: HSIP10: Unsignalized Crossing Improvement Project (c402215).

3. Nature of Work Performed on the Property or Materials Furnished for the City. The Project consisted of work described as: Installation of high-visibility crosswalks, pedestrian activated rectangular rapid flashing beacon (RRFB) systems, bulb-out/park lane island and ADA compliant curb ramps.

4. The general site location description or address (the “Property”) of the public improvement is located at: six (6) pedestrian crossing locations citywide

5. Name and Address of Contractor. The Contractor on the Project is: Kraemer Engineering, Inc. 223 Harrison Rd. K1, Salinas, CA 93907

6. Date of Completion. The Project on the Property was completed on: November 8, 2023

7. The filing of this Notice of Completion was authorized by the Santa Cruz City Council Minute Order on Tuesday, February 13, 2024
DATE: ___________________
Nathan Nguyen
Director of Public Works, City of Santa Cruz
RECORDED AT THE REQUEST OF:

City of Santa Cruz, Public Works
Attn: Dan Estranero
WHEN RECORDED MAIL TO:

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

12.2 Notice of Completion (Revised Oct 2021)

VERIFICATION FOR THE CITY OF SANTA CRUZ
I have read the foregoing Notice of Completion and know the contents thereof, and I certify that the same is true of my own knowledge, except as to those matters which are therein stated upon my information or belief, and as to those matters I believe it to be true. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Executed on ____________________at Santa Cruz, CA
Nathan Nguyen
Director of Public Works, City of Santa Cruz

12.3 Notice of Completion (Revised Oct 2021)

PROOF OF SERVICE DECLARATION
(California Civil Code § 8118)
I, Dan Estranero, declare that I served copies of the above NOTICE OF COMPLETION on the interested parties, in the manner and at the date and place set forth below (Check One):

Direct Contractor: Kraemer Engineering, Inc.
223 Harrison Rd. K1
Salinas, CA 93907
☒ REGISTERED, CERTIFIED, OR EXPRESS MAIL: by placing the Notice in a sealed envelope with postage fully prepaid and depositing the envelope in the United States mail by registered, certified, or express mail. Documentation of such service is attached herein. ☐ OVERNIGHT DELIVERY: by causing the Notice to be picked up for overnight delivery by an express service carrier. Documentation of such service is attached herein. ☐ PERSONAL DELIVERY: by causing the Notice to be personally delivered to each of the addresses above stated on the date below.
☐ CODE OF CIV. PROC. § 415.20: by leaving the Notice and mailing a copy of the Notice in the manner provided under California Code of Civil Procedure § 415.20 for service of a summons and complaint in a civil action.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Executed on February 13, 2024, at Santa Cruz, California.

Dan Estranero
Associate Professional Engineer

12.4 City Council

AGENDA REPORT
DATE: 01/25/2024
AGENDA OF: 02/13/2024
DEPARTMENT: Public Works
SUBJECT: Resource Recovery Facility Public Tipping Area Concrete Project 2024 (c401811) – Authorization to Advertise for Bids and Award Contract (PW) RECOMMENDATION: Motion to approve the plans and specifications for the Resource Recovery Facility Public Tipping Area Concrete Project (c401811) and authorize staff to advertise for bids and award the contract. The City Manager is hereby authorized and directed to execute the contract as authorized by Resolution No. NS-27,563. The Director of Public Works is authorized to execute change orders within the approved project budget.

BACKGROUND: The City’s Resource Recovery Facility (RRF) includes a sanitary landfill and recycling center. The recycling center has a public tipping area for customer drop-off, and a tipping pad within the recycling tent for the City’s collections truck to unload collected mixed recycling to be mechanically and manually sorted then baled for shipment off site. Due to the wear and tear caused by heavy equipment usage around the recycling center, various sections of the concrete floors and pavement are now in need of repair.

DISCUSSION: The improvements to the facility will include replacing three damaged areas of concrete flooring with new concrete totaling 6,500 square feet. A section of the six-foot-tall concrete push wall at the public tipping area will be removed and replaced. Approximately 3,000 square feet of asphalt paving will be added to enhance accessibility and drainage adjacent to the public tipping area. Approximately 11,500 square feet of failing asphalt pavement throughout various areas in the recycling center will also undergo full depth base repair. The rehabilitation of these concrete and asphalt sections will ensure that the RRF continues to operate safely and efficiently.

Plans and specifications can be found online at:
https://www.cityofsantacruz.com/government/city-departments/public-works/engineering/publicworks-projects FISCAL IMPACT: The engineering estimate is $700,000. Funds are available in the FY 2024 Refuse Fund Capital Investment Program - project c401811, Recycling Building and Equipment Improvement. There is no impact to the General Fund.

Prepared By:

Leonardo Vargas
Assistant Engineer
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager

13.1 ATTACHMENTS:

Plans and specifications can be found online at:
https://www.cityofsantacruz.com/government/city-departments/public-works/engineering/publicworks-projects

13.2 City Council

AGENDA REPORT
DATE: 01/24/2024
AGENDA OF: 02/13/2024
DEPARTMENT: Water
SUBJECT: Newell Creek Pipeline Replacement Project: Felton/Graham Hill – Award of Professional Engineering Services During Construction to Carollo Engineers (WT)
RECOMMENDATION: Motion authorizing the City Manager to execute an agreement in a form to be approved by the City Attorney with Carollo Engineers (Walnut Creek, CA) for professional engineering services during construction for the Newell Creek Pipeline Replacement Project: Felton/Graham Hill Water Treatment Plant section in the amount of $797,742 and to authorize the Water Director to execute future contract amendments within the approved project budget.

BACKGROUND: The Newell Creek Pipeline (NCP), constructed circa 1960, extends approximately 9.5 miles from the Newell Creek Dam to the Graham Hill Water Treatment Plant (GHWTP). The pipeline is critical to delivering water from the Loch Lomond Reservoir (impounded by the Newell Creek Dam), the City’s only raw surface water storage facility, to the GHWTP during the peak dry season, extended dry periods, and storm events when other sources are diminished or otherwise impaired.

The NCP has reached the end of useful life, and the replacement of the NCP has been split into three project segments to facilitate design and construction: NCP: Felton/GHWTP, Brackney Landslide Area, and NCP: Felton/Loch Lomond. All segments of the project are included in the Water Department’s Capital Investment Program and are currently estimated to reach completion by 2030.

On May 10, 2022, City Council adopted a resolution certifying the Final Environmental Impact Report for the entire project to comply with the California Environmental Quality Act.

Project permitting applications are currently in progress and are expected to be finalized by the end of February 2024, and easements are being negotiated and will be finalized prior to construction.

The construction contract is set to be advertised in March of 2024 and construction will last approximately 30 months.

DISCUSSION: On November 10, 2020, City Council authorized the City Manager to execute an agreement in a form approved by the City Attorney with Carollo Engineers for Engineering

14.1 Design Services for the NCP: Felton/GHWTP segment (Project) and authorized the Water Director to execute future contract amendments within the approved budget. The Engineering Design Services contract amount was $1,498,336. Six amendments, totaling $355,021 have been authorized to date to include utility potholing services, preparation of plat maps and legal descriptions, assessment of the Felton Booster Pump Station rehabilitation, and updating the final design documents.

As the Project enters the construction phase, staff recommends entering into a new contract with Carollo Engineers to provide bid phase services and engineering services during construction in the amount of $797,742. Bid and engineering services during construction are anticipated scope items for the design engineer and are negotiated following design and prior to construction.

Award of a new contract has been reviewed by the Purchasing Manager and is supportive of the non-competitive award as authorized in SCMC Section 3.08.150.

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 reliability of the public drinking water supply.

FISCAL IMPACT: The total cost of the professional services contract for bid phase services and engineering services during construction for the Project is $797,742. Funds are available in the Water Department’s Capital Investment Program budget, project c702105 Newell Creek Pipeline: Felton/GHWTP. Project implementation will span several years; therefore, funds will be budgeted each fiscal year to cover the cost of future activities.

Prepared By:

Doug Valby
Associate Civil Engineer
Submitted By:

Heidi Luckenbach
Water Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. PROFESSIONAL SERVICES AGREEMENT.PDF

14.2 City of Santa Cruz Professional Services Agreement for NEWELL CREEK PIPELINE REPLACEMENT PROJECT – FELTON/GRAHAM HILL
February 2024 Page 1
Professional Services Agreement With

CAROLLO ENGINEERS
For BID AND CONSTRUCTION PHASE ENGINEERING SERVICES

NEWELL CREEK PIPELINE REPLACEMENT PROJECT - FELTON/GRAHAM HILL THIS AGREEMENT for professional services is made by and between the City of Santa Cruz (“City”) and Carollo Engineers (“Consultant”) (each is referred to individually as a “Party” and collectively, as the “Parties”) as of ___________________________, 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 Rosemary Menard, Director of the Water Department, hereinafter called "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 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.

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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.

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 A exceed the budget of $797,742 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
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. The total fees and costs of Consultant’s services shall not exceed the amount described in the Fee Schedule. ☐ 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. • Travel between 1:30pm – 7:00pm (or later) qualifies for dinner reimbursement.

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• 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.

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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 upon completion of the Scope of Work.

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.

The Work Schedule for completion of the work shall be as shown upon Exhibit C. In the event that major changes are ordered, the schedule for completion as stated in Exhibit C may be adjusted by City so as to allow Consultant a reasonable period of time within which to complete any additional work which may be required as a result of the ordered changes.

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.

Consultant acknowledges that it is necessary for Consultant to complete its work on or before the completion date set forth in Exhibit C in order to allow the City to achieve its objectives for entering into this Agreement. The Parties therefore agree that time is of the essence in the performance of this Agreement.

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

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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 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 D. 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

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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.

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

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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 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”

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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 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

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(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.

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;

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e. Consultant shall post a copy of the applicable wage rates at each jobsite at a location readily available to its workers.
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.

14.12 City of Santa Cruz Professional Services Agreement for NEWELL CREEK PIPELINE REPLACEMENT PROJECT – FELTON/GRAHAM HILL
February 2024 Page 11

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, 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:

Water Department
Attn: Heidi Luckenbach
212 Locust Street Suite A
Santa Cruz, CA 95060
[email protected]
(831) 420-5214
To CONSULTANT:

Carollo Engineers, Inc.

Attn: Anne Prudhel
2795 Mitchell Drive
Walnut Creek, CA 94598
[email protected]
(925) 932-1710
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 NEWELL CREEK PIPELINE REPLACEMENT PROJECT – FELTON/GRAHAM HILL
February 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.

CITY OF SANTA CRUZ
By: ___________________________________________ Date: ______________________________ Matt Huffaker
City Manager
Technical Review By:

By: Date:

Isidro Rivera, Interim Deputy Water Director / Engineering Manager Approved As To Form:

By: Date:

Office of the City Attorney
CITY OF SANTA CRUZ WATER DEPARTMENT:

By: Date:

Heidi Luckenbach, Water Director

CONSULTANT
By: ___________________________________________ Date: _______________________________ Printed: ________________________________________ Title: _______________________________ By: ___________________________________________ Date: _______________________________ Printed: ________________________________________ Title: _______________________________

14.14 City of Santa Cruz Professional Services Agreement for NEWELL CREEK PIPELINE REPLACEMENT PROJECT – FELTON/GRAHAM HILL
EXHIBIT A: SCOPE OF WORK

14.15 December 12, 2023 Page 1 of 2

EXHIBIT A

CITY OF SANTA CRUZ

NEWELL CREEK PIPELINE

FELTON/GRAHAM HILL REPLACEMENT PROJECT

SCOPE OF WORK
Background
The City anticipates and bidding the Project in March 2024. The purpose of this scope of work is to provide bid phase services and provide engineering services during construction.

Task 9: Bid Phase Services
Task 9.1: Attend Pre-Bid Meeting
Carollo will prepare a pre-bid presentation for perspective contractors and present it at an inperson pre-bid meeting. The Project Manager, Pipeline Lead, and Staff Engineer will attend.

Task 9.2: Respond to Questions During Bidding
Carollo will provide responses to technical questions during bidding and provide support to assist the City in responding to non-technical questions as requested. Carollo will provide question responses to the City to issue responses.

Task 9.3: Prepare Bid Addenda
Carollo will prepare addenda to the contract to respond to bidders’ questions that require contract amendments for the City to issue. Two addenda are assumed.

Task 9.4: Prepare Conformed Documents
Carollo will prepare conformed documents for construction of the project including specifications and drawings. The conformed documents will combine the bid documents and addenda into a combined set. An electronic (PDF) copy of the documents will be delivered to the City.

Task 10: Engineering Services During Construction
Task 10.1: Submittal and Shop Drawing Review
Carollo will review and comment on technical submittals and provide a more cursory review on non-technical submittals when requested. The anticipated number of submittals and labor hour estimate is included in Exhibit B.

Task 10.2: Respond to Requests for Information (RFIs)
Carollo will Carollo will review and comment on approximately 80 RFIs. Four hours per RFI is budgeted.

14.16 December 12, 2023 Page 2 of 2
Task 10.3: Design Clarification and Change Order Reviews Carollo will prepare design clarifications as needed. Approximately 5 design clarifications have been budgeted for items such as unanticipated existing utilities. Carollo will also review and provide detailed comments and recommendations for approximately 5 change orders (or potential change orders).

Task 10.4: Construction Meetings and Site Visits
Carollo will attend in person the following construction meetings:
· Pre-construction Meeting (Project Manager, Project Engineer, and Staff Engineer). The Construction Manager will lead the meeting.
· The Design Engineer and/or Staff Engineer will observe the following key points of Construction:
o Beginning of trenching/backfilling (1 day)
o Bond cable welding and anode installation observation by JDH Corrosion Consultants (2 days)
o Geotechnical Observation of the Drilled Piers by Crawford & Associates (3 days) o Placing of pier cages (2 days)
o Pipeline placement above Zayante Creek (1 day)
o Trenchless Observation of the Auger Bore (2 days)
o Felton Booster Pump Station Tie-In (1 day)
o Pavement grooving (1 day)
o Assist resolving unexpected field conditions (1 day)
Carollo’s Pipeline Lead and Staff Engineer will attend weekly construction progress meetings by video conference or phone. Meetings are anticipated to last 1 hour throughout the duration of the project and be led by the Construction Manager. Carollo will participate in additional video conference or phone calls as requested to discuss specific project issues – up to ten, one hour calls are anticipated.

Task 10.5: Project Closeout and Record Documents
Carollo will provide record drawings for the project based on a as-built, red-lined drawings received from the Contractor. It is assumed a single clear and legible set of red-lined drawings with all markups and notes will be provided to Carollo after being reviewed by the Construction Manager. An electronic (PDF and CAD) copy of the documents will be delivered to the City.

Task 10.6: Cathodic Protection System Testing and Startup JDH Corrosion Consultants will provide inspection during impressed current cathodic protection anode bed installation and log anode bed profile during installation. JDH assumes three days of on-site presence. JDH will perform a Preliminary Checkout of the cathodic protection system, a Final Checkout, a Final Checkout Report certifying the subject cathodic protection system has been designed and installed in accordance with NACE Standards and provide an O&M manual.

Task 10.7: Project Administration and Monthly Invoices During ESDC Carollo will Carollo will monitor project progress, manage subconsultants, and prepare and submit monthly invoices and progress reports. Separate Project review meetings are not anticipated after the Bid Phase.

14.17 City of Santa Cruz Professional Services Agreement for NEWELL CREEK PIPELINE REPLACEMENT PROJECT – FELTON/GRAHAM HILL
EXHIBIT B: FEE SCHEDULE

14.18 PECE
$335 $310 $325 $295 $235 $215 $150 $15 10%

9.0 9.1 Attend Pre-Bid Meeting 4 8 16 28 420$ $ 7,840 $ - -$ 300$ $ 8,140

9.2 Respond to Questions During Bidding 4 2 12 16 34 510$ $ 9,700 $ - -$ $ 9,700

9.3 Prepare Bid Addenda 4 4 8 16 24 16 72 1,080$ $ 17,300 $ - -$ $ 17,300

9.4 Prepare Conformed Documents 2 4 12 16 16 50 750$ $ 11,240 $ - -$ $ 11,240 0 8 12 32 60 40 32 184 2,760$ $ 46,080 -$ -$ -$ $ - -$ $ - 300$ $ 46,380

10.0 10.1 Submittal and Shop Drawing Review 8 12 315 259 594 9,589$ $ 181,972 $ 12,500 $ 17,000 $ 29,500 $ 2,950 $ 214,422

10.2 Respond to Requests for Information (RFIs) 4 8 176 144 332 5,360$ $ 101,792 $ 12,500 $ 5,500 $ 6,500 $ 24,500 $ 2,450 $ 128,742

10.3 Design Clarifications and Change Order Reviews 10 10 60 80 80 240 3,875$ $ 68,503 $ - -$ $ 68,503

10.4 Construction Meetings and Site Visits 100 246 254 600 9,686$ $ 187,009 $ 20,000 $ 20,000 $ 2,000 1,500$ $ 210,509

10.5 Project Closeout and Record Drawings 4 16 40 40 100 1,614$ $ 27,466 $ - -$ $ 27,466

10.6 Cathodic Protection System Testing and Startup 2 4 6 97$ $ 1,744 $ 50,500 $ 50,500 $ 5,050 300$ $ 57,594

10.7 Project Administration and Monthly Invoices During ESDC 92 12 24 128 2,066$ $ 44,126 $ 44,126 0 22 226 827 805 120 0 2,000 32,288$ $ 612,612 $ 45,000 $ 5,500 $ 74,000 $ 124,500 $ 12,450 $ 1,800$ - $ 751,362 0 30 238 859 865 160 32 2,184 35,048$ $ 658,692 $ 45,000 $ 5,500 $ 74,000 $ 124,500 $ 12,450 $ 2,100$ - $ 797,742

EXHIBIT B
City of Santa Cruz
Newell Creek Pipeline Felton/Graham Hill Replacement Project - Bid Period Assistance and ESDC - Fee Estimate Task Description
Carollo Labor Estimate Subconsultant Labor Estimate Other Direct Costs Totals Principal-inCharge
Document
Processing
Subtotals Geotechnical
(Crawford)
Tech Advisor /
QC Review
Project
Manager Technical Lead
Bid Phase Services
Misc. Costs and
Printing
Travel
Hours Subtotal
Survey
(Whitson)
Corrosion
(JDH) Subtotals Staff Engineer Markup Senior CADD
Technician
Task 9 Subtotal
Engineering Services During Construction
Project Totals (Tasks 9-10)
Task 10 Subtotal

14.19 City of Santa Cruz Professional Services Agreement for NEWELL CREEK PIPELINE REPLACEMENT PROJECT – FELTON/GRAHAM HILL
EXHIBIT C: WORK SCHEDULE

14.20 ID Task Name Duration Start Finish
1 Newell Creek Pipeline Felton/Graham Hill Replacement Project 1548 days Thu 10/22/20 Mon 9/28/26 2 Notice to Proceed 439 days Thu 10/22/20 Wed 6/29/22
68 Task 1: Investigations and Conceptual Design (10%) 116 days Tue 12/22/20 Wed 6/2/21 80 Task 2: Preliminary Design (30%) 72 days Wed 6/2/21 Fri 9/10/21 94 Task 3: Final Design and Bid Documents 1316 days Mon 9/13/21 Mon 9/28/26 95 60% Design 128 days Mon 9/13/21 Thu 3/10/22
108 Task 5: Utility Potholing 0.01 days Mon 12/13/21 Mon 12/13/21 110 90% Design 89 days Thu 3/10/22 Tue 7/12/22
120 100% Design 52 days Wed 7/13/22 Thu 9/22/22
127 City Goal for Design Completion from RFP 0 days Thu 12/8/22 Thu 12/8/22 128 City Obtaining Environmental Permitting & Land Acquisition 96 wks Mon 5/2/22 Fri 3/1/24 129 Task 6: Confirm Work Areas and Temporary Easements 55 days Wed 2/15/23 Tue 5/2/23 134 Task 7: FBPS Rehabilitation - Phase 1 Confirm Improvements 150 days Wed 5/17/23 Tue 12/12/23 153 Task 8: Update Final Design Documents 120 days Tue 12/19/23 Mon 6/3/24 165 Task 9: Bid Phase Services 35 days Mon 3/11/24 Mon 4/29/24 166 Project Advertises for Construction (assumed) 0 days Mon 3/11/24 Mon 3/11/24 167 Attend Pre-Bid Meeting 0 days Mon 3/25/24 Mon 3/25/24 168 Respond to Questions During Bidding 2 wks Tue 3/26/24 Mon 4/8/24 169 Prepare Bid Addenda 2 wks Tue 3/26/24 Mon 4/8/24
170 Bid Opening (assumed) 0 days Mon 4/15/24 Mon 4/15/24 171 Prepare Conformed Documents 0 days Mon 4/29/24 Mon 4/29/24 172 Task 10: Engineering Services During Construction 620 days Mon 5/13/24 Mon 9/28/26 173 City issues Contractor Notice to Proceed (assumed) 0 days Mon 5/13/24 Mon 5/13/24 174 Submittal and Shop Drawing Review 30 mons Tue 5/14/24 Mon 8/31/26 175 Respond to Requests for Information 30 mons Tue 5/14/24 Mon 8/31/26 176 Design Clarification and Change Order Reviews 30 mons Tue 5/14/24 Mon 8/31/26 177 Construction Meetings and Site Visits 30 mons Tue 5/14/24 Mon 8/31/26 178 Project Closeout and Record Documents 1 mon Tue 9/1/26 Mon 9/28/26 179 Cathodic Protection System Testing and Startup 1 mon Tue 9/1/26 Mon 9/28/26 180 Project Administration and Monthly Invoices During ESDC 31 mons Tue 5/14/24 Mon 9/28/26 City Goal for Design Completion from RFP 12/8
3/1
3/11
3/25
4/15
4/29
5/13
AugSepOctNovDec Jan FebMarAprMayJun Jul AugSepOctNovDec Jan FebMarAprMayJun Jul AugSepOctNovDec Jan FebMarAprMayJun Jul AugSepOctNovDec Jan FebMarAprMayJun Jul AugSepOctNovDec Jan FebMarAprMayJun Jul AugSepOctNovDec Jan FebMarAprMayJun Jul AugSepOctNovDec 2021 2022 2023 2024 2025 2026
Task
Split
Milestone
Summary
Project Summary
Inactive Task
Inactive Milestone
Inactive Summary
Manual Task
Duration-only
Manual Summary Rollup
Manual Summary
Start-only
Finish-only
External Tasks
External Milestone
Deadline
Progress
Manual Progress

PROJECT SCHEDULE

Date: Tue 12/12/23
Created by: J.Marshall, PE

14.21 City of Santa Cruz Professional Services Agreement for NEWELL CREEK PIPELINE REPLACEMENT PROJECT – FELTON/GRAHAM HILL
January 2024 (Form Rev.01/23 ) Exhibit D: Insurance Requirements EXHIBIT D: 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.

14.22 City of Santa Cruz Professional Services Agreement for NEWELL CREEK PIPELINE REPLACEMENT PROJECT – FELTON/GRAHAM HILL
January 2024 (Form Rev.01/23 ) Exhibit D: Insurance Requirements • 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.

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.

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 policy 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 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.

14.23 City of Santa Cruz Professional Services Agreement for NEWELL CREEK PIPELINE REPLACEMENT PROJECT – FELTON/GRAHAM HILL
January 2024 (Form Rev.01/23 ) Exhibit D: Insurance Requirements • 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 endorsements to 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.

C. 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).

D. 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.

14.24 City Council

AGENDA REPORT
DATE: 01/25/2024
AGENDA OF: 02/13/2024
DEPARTMENT: City Clerk
SUBJECT: 2nd Reading and Final Adoption of Ordinance No. 2024-01 Implementing the CalPERS Contract Amendment (CC)
RECOMMENDATION: Motion to:
1) Rescind prior action of the adoption of Ordinance No. 2024-01 implementing the CalPERS contract amendment from the January 23, 2024 City Council meeting; and 2) Adopt Ordinance No. 2024-01 implementing the CalPERS contract amendment.

BACKGROUND: On January 9, 2024, Council approved a motion to introduce for publication Ordinance No. 2024-01 related to a CalPERS contract amendment. Staff inadvertently agendized the 2nd reading and adoption of the ordinance for January 23, 2024, and the ordinance was adopted. Per Government Code 7507, there must be at least two weeks between the first reading and the adoption of the ordinance.

DISCUSSION: Staff is requesting that Council, on February 13th, rescind the action previously taken on January 23, 2024 and re-adopt Ordinance No. 2024-01, which will fulfill the two week requirement between the first reading and adoption of the ordinance.

FISCAL IMPACT: None.

Prepared By:

Bonnie Bush
City Clerk
Submitted By:

Laura Schmidt
Assistant City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. 2024-01 - CALPERS CONTRACT AMENDMENT (HR).DOCX

15.1 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

15.2 ORDINANCE NO. 2024-01
2 PASSED FOR FINAL ADOPTION this 13th 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. 2024-01 and that it has
been published or posted in accordance
with the Charter of the City of Santa
Cruz
_______________________________
Bonnie Bush, City Clerk Administrator

15.3 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:

February 7, 2024
I declare under penalty of perjury that the foregoing is true and correct to the best of my knowledge.

This 7th day of February, 2024, Santa Cruz, California
____________________________
Julia Wood
Deputy City Clerk Administrator

15.4 DECLARATION OF POSTING

STATE OF CALIFORNIA )
) SS.

COUNTY OF SANTA CRUZ )
On the 30th 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 30th day of January, 2024, in Santa Cruz, California.
_______________________________
Julia Wood
Deputy City Clerk Administrator

15.5 ORDINANCE NO. 2024-03

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
Hearing Public Hearing Permits/Actions****
Action Recommendation 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 outlets, and half baths in
accessory buildings

ZA CPC/CC
Other uses as listed by individual
zoning districts as requiring an
Administrative Use Permit

ZA CPC/CC
Conditional Fence Permit ZA ZA CPC/CC

16.1 ORDINANCE NO. 2024-03
2 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

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

16.2 ORDINANCE NO. 2024-03
3 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/CC
C 3
Historic Alteration Permit HPC CC
Administrative Historic
Alteration Permit

ZA HPC/CC
Historic Building Survey:

Building designation, deletion HPC CC
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

16.3 ORDINANCE NO. 2024-03
4 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/CC
C 3
Amendments not recommended by CPC CPC CC/CCC 3
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:

16.4 ORDINANCE NO. 2024-03
5 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.
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 therefore, the decision-making body with final authority over said permit may revoke such permit.

16.5 ORDINANCE NO. 2024-03
6 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. 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.

16.6 ORDINANCE NO. 2024-03
7 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: Councilmembers Newsome, Brown, Brunner, Kalantari-Johnson; Vice Mayor Golder; Mayor Keeley.

NOES: None.

ABSENT: Councilmember Watkins.

DISQUALIFIED: None.

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

16.7 ORDINANCE NO. 2024-03
8 PASSED FOR FINAL ADOPTION this 13th 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. 2024-03 and that it has
been published or posted in accordance
with the Charter of the City of Santa
Cruz
________________________________
Bonnie Bush, City Clerk Administrator

16.8 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:

February 7, 2024
I declare under penalty of perjury that the foregoing is true and correct to the best of my knowledge.

This 7th day of February, 2024, Santa Cruz, California
____________________________
Julia Wood
Deputy City Clerk Administrator

16.9 DECLARATION OF POSTING

STATE OF CALIFORNIA )
) SS.

COUNTY OF SANTA CRUZ )
On the 30th day of January, 2024, I posted conspicuously in three public places within the City of Santa Cruz, Ordinance No. 2024-03, 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—8.

I declare under penalty of perjury that the foregoing is true and correct. Executed this 30th day of January, 2024, in Santa Cruz, California.
_______________________________
Julia Wood
Deputy City Clerk Administrator

16.10 City Council

AGENDA REPORT
DATE: 01/25/2024
AGENDA OF: 02/13/2024
DEPARTMENT: Police
SUBJECT: 2nd Reading and Final Adoption of Ordinance No. 2024-05 Military Equipment Purchase Request and Policy Update per Assembly Bill 481 (PD)
RECOMMENDATION: Motion to:
1) Adopt Ordinance No. 2024-05 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 (UAS), and 2) Adopt a resolution amending the FY 2024 budget in the amount of $170,942 from the Police Asset Seizure 214 Fund, and
3) 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.

BACKGROUND: At the January 23, 2024 City Council meeting, Council approved to introduce for publication Ordinance No. 2024-05 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 (UAS).

Upon adoption of Ordinance No. 2024-05, Council is also approving to adopt a resolution amending the FY 2024 budget in the amount of $170,942 from the Police Asset Seizure 214 Fund, and approve a five-year purchase with Axon, Inc. for a drone program, and authorize the City Manager to execute said contract in a form approved by the City Attorney.

DISCUSSION: None.

FISCAL IMPACT: The costs would be appropriated from the Police Department Asset Seizure 214 Fund and would not impact the General Fund. In Year 3 and beyond, the Police Department has various avenues to fund the program – this could include additional funds from the Police Department Asset Seizure 214 Fund, the Police Department’s General Fund operating budget, or upon Council’s adoption of the amended Policy, possible future pursuit of grant funding.

17.1 ATTACHMENTS:

1. ORDINANCE.DOCX

2. BUDGET ADJUSTMENT.PDF

17.2 ORDINANCE NO. 2024-05
AN ORDINANCE OF THE CITY OF SANTA CRUZ AMENDING CHAPTER 9.90 OF THE SANTA CRUZ MUNICIPAL CODE PERTAINING TO AB 481 MILITARY EQUIPMENT BE IT ORDAINED by the City of Santa Cruz as follows:

WHEREAS, on September 30, 2021, Governor Gavin Newsom signed into law Assembly Bill 481, creating Government Code Section 7070, et seq., relating to the use of military equipment by California law enforcement agencies;
WHEREAS, AB 481 seeks to provide transparency, oversight, and an opportunity for meaningful public input on decisions regarding whether and how military equipment is funded, acquired, or used;
WHEREAS, on May 10, 2022, the Santa Cruz City Council (“City Council”) adopted Ordinance 2022-09, adding Chapter 9.90 to the Santa Cruz Municipal Code (“SCMC”) and adopting a Military Equipment Use Policy;
WHEREAS, Government Code section 7071(a)(1)(C) requires SCPD to obtain approval from the City Council prior to acquiring military equipment; WHEREAS, Government Code section 7070(c)(1) defines unmanned, remotely piloted, powered aerial or ground vehicle as military equipment; WHEREAS, pursuant to Government Code section 7071(a)(1)(c), SCPD is requesting approval from the City Council to acquire five (5) Skydio X10 Unmanned Aircraft Systems “Drones,”
WHEREAS, the addition of drones to SCPD’s inventory will enable SCPD to respond to a variety of service calls (e.g., natural disasters, traffic collisions, crimes in progress, search and rescue) and support officer and civilian safety that no other reasonable alternative equipment can provide.

WHEREAS, the City Council, having received the amended Military Equipment Use Policy listing the five (5) drones and information required under AB 481 regarding the SCPD’s use of military equipment as defined in AB 481, deems it to be in the best interest of the City to approve the amended Military Equipment Use Policy as set forth herein.

SECTION 1. Chapter 9.90 of the Santa Cruz Municipal Code is amended as follows:

9.90.010 MILITARY EQUIPMENT POLICY.

17.3 ORDINANCE NO. 2024-05
(a) The city council hereby adopts the January 2024 military equipment use policy (“policy”) set forth in Santa Cruz Police Department Policy 705 after having made the following determinations:
(1) The military equipment inventoried and presented in the policy is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety;
(2) The proposed policy will safeguard the public’s welfare, safety, civil rights, and civil liberties;
(3) The equipment identified in the policy is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety, if any; (4) Prior military equipment use complied with the military equipment use policy that was in effect at the time, or, if prior uses did not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance.
(b) The police department has submitted a proposed policy to the city council and has made those documents available on the police department’s website for at least thirty days prior to the public hearing concerning the military equipment at issue. (c) The policy was considered by the city council as an agenda item in an open session of a regular meeting, noticed in accordance with the Ralph M. Brown Act, at which public comment was permitted.
(d) The policy shall be made publicly available on the police department’s website for as long as the military equipment is available for use.
(e) The police department shall submit an annual military equipment report to the city council, containing the information required in Government Code Section 7072, and the city council shall determine whether each type of military equipment identified in that report has complied with the standards for approval set forth in subsections (a)(1) through (4). (f) The city council shall review this chapter and vote on whether to renew it, on an annual basis at a regular meeting, in accordance with Government Code Section 7071(e)(2). (g) The city council approves the use of the policy and finds that it satisfies the requirements of Government Code Section 7070(d).

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

17.4 ORDINANCE NO. 2024-05
PASSED FOR PUBLICATION this 23rd 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
PASSED FOR FINAL ADOPTION this 13th 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. 2024-05 and that it has
been published or posted in accordance
with the Charter of the City of Santa
Cruz
________________________________
Bonnie Bush, City Clerk Administrator

17.5 City of Santa Cruz

BUDGET ADJUSTMENT REQUEST
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ACCOUNT 352-(&71$0(
LIDSSOLFDEOH
255(9(18($&&28177,7/(
ACCOUNT 352-(&71$0(
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25EXPENDITURE ACCOUNT TITLE
NET: $

REQUESTED BY DEPARTMENT HEAD

APPROVAL

BUDGET/ACCOUNTING
5(9,(:('

FINANCE DIRECTOR

APPROVAL

CITYMANAGER

APPROVAL
5HVR

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

TOTALREVENUE
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/PWFNCFS


 Clear Form
2024
01/04/2024
Allocate funds available in the 214 Police Asset Seziure Fund to the Police Department's patrol General Fund to cover partial purchase of unmanned aerial systems "drones" and a storgae and deplyment system in two existing police patrol vehicles. 101-00-00-0000-49182 P202404-965-0-0 Police Asset Seizure Fund 170,942 170,942
214-00-00-0000-59101 To General Fund 170,942
101-20-22-2103-57490 P202404-100-2020-0 Other Machinery and Equipment 170,942 341,884
-170,942
Catherine
Brothers
Digitally signed by
Catherine Brothers
Date: 2024.01.12
10:54:50 -08'00'
Bernie
Escalante
Digitally signed by
Bernie Escalante
Date: 2024.01.12
12:42:29 -08'00'
Edward
Torres
Digitally signed by Edward Torres
DN: cn=Edward Torres, o=City of Santa Cruz, ou,
[email protected], c=US
Date: 2024.01.12 11:12:00 -08'00'
Tracy
Cole
Digitally signed by Tracy Cole
DN: cn=Tracy Cole, o=City of
Santa Cruz, ou=Finance,
[email protected],
c=US
Date: 2024.01.12 14:54:16
-08'00' 17.6
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:

February 7, 2024
I declare under penalty of perjury that the foregoing is true and correct to the best of my knowledge.

This 7th day of February, 2024, Santa Cruz, California
____________________________
Julia Wood
Deputy City Clerk Administrator

17.7 DECLARATION OF POSTING

STATE OF CALIFORNIA )
) SS.

COUNTY OF SANTA CRUZ )
On the 30th day of January, 2024, I posted conspicuously in three public places within the City of Santa Cruz, Ordinance No. 2024-05, 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 30th day of January, 2024, in Santa Cruz, California.
_______________________________
Julia Wood
Deputy City Clerk Administrator

17.8 City Council

AGENDA REPORT
DATE: 2/8/2023
AGENDA OF: 02/13/2023
DEPARTMENT: Planning and Community Development
SUBJECT: 900 High Street: CP23-0164 (APN 001-022-40). Appeal of the Planning Commission Approval of the Development Proposal at 900 High Street Involving a Minor Land Division, Design Permit, Slope Development Permit, Density Bonus Request, and Heritage Tree Removal Permit to Divide a Parcel Into Two Lots and Construct a 40 Unit, Four-Story Apartment Building Within 20 Feet of a 30-Percent Slope and to Remove 14 Heritage Trees on a Site With an Existing Church in the R-1-10 (Single Family Residence) Zone District. (Environmental Determination: Exempt Under PRC Section 21083.3/CEQA Guidelines Section 15183), Applicant: Diana Alfaro, Workbench, Filed 11/30/22 (PL)
RECOMMENDATION: Adopt a resolution denying the appeal of Norman Tardif, representing Springtree Homeowner’s Association (HOA) and Westlake Neighbors Association, thereby upholding the Planning Commission’s acknowledgment of the environmental determination and approval of the Minor Land Division, Design Permit, Slope Development Permit, Density Bonus Request, and Heritage Tree Removal Permit based on the findings listed below and the Conditions of Approval attached as “Exhibit A.”
BACKGROUND: The project site is a

5.9-acre lot located on the north side of
High Street immediately to the northeast
of its intersection with Moore Street. The
site is surrounded by UCSC campus
housing to the north; a quarry, singlefamily homes, city-owned land, and a church to the east; single-family homes
across High Street to the south; and
Westlake Elementary School to the west.

The property is developed with a church
that was constructed in 1957. The church
campus hosts a preschool as well as a
dwelling unit. The site slopes upward to
the north, and the unimproved north end
of the site comprises open grassland and
trees.

18.1 The project proposes to split the parcel into two lots. The lower lot will be approximately 3.7 acres and will retain the existing church campus. The upper lot will be approximately 2.23 acres. On the upper lot, the project proposes to construct a 40-unit, four-story residential apartment building.

The project requires approval of a Minor Land Division to approve the tentative map for the lot split. In addition, the project requires approval of a Design Permit, as it involves the construction of three or more units.

The project provides an affordable housing plan consistent with the requirements of Section

24.16.265 of the Santa Cruz Municipal Code, providing five low-income units and four very lowincome units, amounting to 22.5-percent of the 40 total units at the low-income and very-lowincome levels. This level of affordability exceeds the minimum 10-percent lower-income threshold to qualify the project for a density bonus. The density bonus request varies slightly from the project approved at the Planning Commission in that the applicant is taking advantage of recent revisions to State Density Bonus Law which took effect on January 1, 2024, and which allow for a “stackable” density bonus. Under these revisions, the project is eligible for a total density bonus of 88.75% of its base unit count of 23, or a total of 44 units, based on the number of affordable units provided. Additional analysis of the density bonus is provided under appeal point 2 in the Discussion section of the report.

Under State Density Bonus Law, the project qualifies for four incentives/concessions since it provides at least 20-percent of units to lower-income households, and an unlimited number of waivers. The density bonus request proposes two concessions/incentives and one waiver from development standards, summarized below:
 Concession 1: Increased building height of 4 stories and 54 feet at the tallest point, in lieu of the required maximum height of 2.5 stories and 30 feet.  Concession 2: Reduced front yard setback of 17’10.75” to the new building on Lot 1 (measured from the new interior lot line), in lieu of the minimum required front setback of 20 feet.
 Waiver 1: That an accessory structure, the trash enclosure, be placed in front of the apartment within the front yard setback of Lot 1.

Because the building is proposed on a slope of 30- to 50-percent, the project requires approval of a Slope Development Permit. Finally, the project proposes to remove 14 heritage trees, requiring approval of a Heritage Tree Removal Permit. Because the project involves a Minor Land Division and a Density Bonus Request, the application was required to be approved by the Zoning Administrator at a public hearing.

The applicant submitted a preapplication for this project in 2022, and the preapplication was deemed complete on January 11, 2023, for consistency with the preapplication submittal requirements under SB330. The project is locked into all standards and policies in place at the time it was deemed complete under SB330, including standards in place prior to the effective date of the most recent objective development standards ordinance.

The project was approved by the Zoning Administrator on October 4, 2023. On October 15, 2023, Deborah Elston, representing the Westlake Neighborhood Association, filed an appeal of the Zoning Administrator’s approval of the project. The appeal letter presented points, which are addressed in detail in the attachment entitled Planning Commission Staff Report from November 30, 2023.

18.2 The Planning Commission considered the project at their November 30 meeting. Prior to the meeting, 143 additional pieces of written correspondence were received (97 generally supporting the project and 46 generally opposing it). At the meeting, 29 members of the public provided verbal testimony (20 expressing support and 9 expressing opposition).

Following public testimony and deliberation, the Planning Commission voted 6-0, with Commissioner Maxwell absent, to approve the project with Staff’s recommended modified conditions of approval to address construction-related concerns that were raised during the appeal process and to clearly capture the recommendations of the project geologist. The commissioners validated concerns raised by neighbors, but ultimately expressed strong support for the project and discouraged neighbors from filing an additional appeal.

On December 11, 2023, Norman Tardif, representing the Springtree HOA and Westlake Neighbors Association, filed an appeal of the Planning Commission’s approval of the project. The appeal contains three primary areas of concern, which are discussed in detail in the “Discussion” section of the report: implementation of geological recommendations, legality of clustering residential density on a singular legal lot within a larger project site, and potential for future additional tree removal.

DISCUSSION:

The attachment entitled Zoning Administrator Staff Report from October 4, 2023, provides an indepth analysis of the proposed project. The attachment entitled Planning Commission Staff Report from November 30, 2023, contains additional analysis, including detailed responses to issues raised in the Zoning Administrator appeal and the points supporting staff’s recommendation to deny the appeal, thereby approving the project.

This staff report responds to issues raised in the Planning Commission appeal letter submitted by the appellant. The following reiterates each point made in the appeal (shown in italicized text), followed by staff responses for each item.

Responses to Planning Commission Appeal
The appellant, Norman Tardif, raises the following objections to the project in question, which are duplicated verbatim herein as points number 1, 2, and 3. A response is provided below each point raised by the appellant.

Appeal Point 1. We request that the City Council adds the following three geology recommendations to the conditions of approval for this development proposal.

Background: The proposed building site is located in the vicinity of underground limestone rock formations that are characterized by voids, fissures, caves, and sinkholes. These “karst” formations are well-known in this area of Santa Cruz and have been mined for decades. The karsts are mechanically unstable and unsuitable for building upon, without significant mitigation.

It is our goal to ensure that the design of the proposed structures is appropriate to the dangers created by the site’s unique geology. The purpose of the recommendations below

18.3 is to ensure that the developer is aware of the hazards, prior to finalized designs, and before construction begins.

Each of these recommendations were included by Pacific Crest Engineering in the Geologic Feasibility Letter prepared for the site, dated March 10, 2023. Further, we note that these precautions are standard operating procedures for any new construction considered on the UCSC campus.

A. “One or more boring should be advanced near the steep quarry wall that lies to the east of the site to characterize the thickness and character of the marine terrace deposits that overlie the marble bedrock.”
B. “Once the development footprint has finally been settled upon, the Project Geologist of Record should develop a design-level karst drilling program in conjunction with the Project Geotechnical Engineer of Record for the portion of the habitable structure footprint where the risk related to karst has not adequately been quantified for final design.”
C. “We recommend that our firm be provided the opportunity for a review of the final design specifications in order that our recommendations may be properly interpreted and implemented in the design and specifications. If our firm is not accorded the privilege of making the recommended review, we can assume no responsibility for misinterpretation of our recommendations.

Staff Response to Appeal Point 1:

The appellant is correct that the site possesses unique geologic features, including highly sloped areas, proximity to a quarry, and presence of underlying karst bedrock formations, which warrant additional geological and geotechnical investigation.

Since the early design stages of the project, the applicant has continually made a good-faith effort to engage qualified geological and geotechnical professionals in the project’s development. Staff has reviewed the qualifications of both the project Geologist of Record, Erik Zinn of Pacific Crest Engineering, and the project Geotechnical Engineer of Record, Becky Dees of Dees and Associates, Inc. and has found both to be California licensed professionals with relevant experience.

The project has undergone extensive geological and geotechnical investigation to ensure that the site is physically suitable for the proposed development from a geologic standpoint. The project will be constructed on a portion of the site with a relatively low degree of slope and high degree of soil stability, appropriately set back from the quarry to the east, and implementing appropriate measures to mitigate any possible risk associated with underlying karst rock formations, in accordance with the findings and recommendation of the project geologist and geotechnical engineers.

Broadly speaking, the findings of the geologist and geotechnical engineer conclude that the project, as designed, is safe and feasible from a geological standpoint, if the recommendations of the geological and geotechnical reports are implemented. As the project has progressed through the entitlement process, geological and geotechnical investigation has continued. Therefore,

18.4 conditions A (drilling of additional borings near the quarry) and B (design-level karst drilling program) requested by the appellant are currently underway. Because the project Geologist of Record has expert knowledge of the site’s complexities, staff concurs with the appellant that the Geologist of Record, Erik Zinn of Pacific Crest Engineering, should be provided the opportunity for a review of the final design specifications. Therefore, the Conditions of Approval have been revised to specify that the “Geologist of Record” provide final review and sign-off of the plans, as opposed to a “qualified geologist.”
Similarly, to ensure that the technical recommendations of the geologic and geotechnical reports are not misinterpreted or taken out of context, the recommended conditions of approval have been refined to clearly require the applicant to implement all recommendations of both the project geologist and geotechnical engineer. Additionally, conditions of approval require that both the project geologist and geotechnical engineer provide a letter verifying that they have reviewed and approved of the construction drawings prior to issuance of the building permit, as well as a subsequent letter signing off on the project prior to occupancy. Staff’s recommended conditions of approval are consistent with the recommended approach of the project geologist, as is described in the attached letter entitled “Geological Response to Appeal Letter,” dated January 1, 2024.

Appeal Point 2. There is no authority to amend land use to subdivide a piece of property.

The project site is undergoing division into two distinct parcels. The first parcel is already developed and houses a church with land use, while the second parcel, spanning 2 acres, remains undeveloped. This division effectively increases the density of the site, as the proposal involved transferring of residential density from the developed property to the underdeveloped parcel. From a legal standpoint, there is no authority for the housing density permitted on the resulting developed parcel to the underdeveloped parcel (2 acres). It’s important to note that the resulting parcel has a well-established land use, having served as a church for the past 64 years, with all necessary infrastructure and operations in place. Just because the city won a case on Eucalyptus St. doesn’t create a new law.

Staff Response to Appeal Point 2:

Clustering Approach
When the project was first proposed, evaluated, and approved by the Zoning Administrator and Planning Commission, Planning staff and the applicant followed policies in the General Plan supporting the clustering of residential density to respond to site constraints to allow the 40-unit multi-family development on the proposed Lot 1, the 2.23-acre flag lot resulting from the proposed Minor Land Division. Previously, Lot 1 was identified as 2-acres because the strip of land connecting the lot to High Street was inadvertently omitted from the lot size calculation. Because the General Plan calculates densities based on the gross area of a parcel, the project plans have been corrected to accurately show Lot 1 as 2.23 acres.

The site’s General Plan land use designation of Low Density Residential accommodates singlefamily residential neighborhoods typically comprising detached homes and with a density range of 1.1 to 10 dwellings per acre. Under the General Plan, a parcel for purposes of development is defined as a “lot, or contiguous group of lots, in single ownership or under single control.” The project development site, in its entirety, is 5.9 acres in size; therefore, the General Plan land use designation would accommodate up to 59 units on the project site.

18.5 The project proposes 40 units, which is consistent with the residential density that was studied and anticipated in the 2030 General Plan for the project site. The residential apartment building will be contained entirely on Lot 1, comprising 2.23 acres. General Plan Policy CD1.4.1 supports clustering of residential development, with units closer together or attached, to respond to a site’s topography, environmental constraints, or adjacent uses. Accordingly, this layout, together with site constraints associated with City policy to maximize retention of heritage trees and a steep slope that limits access to the upper part of the site, supported the clustering of the apartment units into a single apartment building on Lot 1.

Based on the General Plan’s definition of “parcel” and the General Plan policy supporting the clustering of residential density to respond to unique site characteristics, the project’s allowable base density was determined using the combined size of Lots 1 and 2 (5.9 acres), and the project was found by staff, the Zoning Administrator, and the Planning Commission to be consistent with the clustering policies of the General Plan. To ensure future development did not exceed the density ranges envisioned in the General Plan, both the Zoning Administrator and Planning Commission approved the project with a condition of approval requiring a deed restriction to be recorded on both new parcels to limit the overall project site base density to the maximum 59 units allowed under the General Plan.

Clustering the residential density of the apartment building units onto one lot within the larger project site is legal and valid.

Assembly Bill 1287 – Density Bonus Approach
As originally proposed, the project application did not include density bonus units, even though it could have qualified for a density bonus under the City Zoning Ordinance residential density bonus provisions and the then-applicable provisions of the State Density Bonus Law (Gov. Code. §65915). While, as demonstrated above, the project can achieve a density of 40 units without density bonus units, recent revisions to the Density Bonus Law allow the project to achieve its desired density through density bonuses alone. The project applicant has updated the application to include these density bonuses, thus eliminating the need for a deed restriction to be recorded on both new parcels that would limit the overall site base density to the maximum allowed under the General Plan.

Under the Density Bonus Law, a “density bonus” is an increase in the residential density of a project over the maximum residential density otherwise allowed to the applicant under the City’s General Plan through inclusion in the project of affordable housing units. Affordable units under the Density Bonus Law may be low-income, very low-income, or moderate-income units. Density Bonus Law further clarifies that “the granting of a density bonus shall not require, or be interpreted, in and of itself, to require a general plan amendment, local coastal plan amendment, zoning change, or other discretionary approval.” (Gov. Code. §65915(j)(1)).

As of January 1, 2024, Assembly Bill 1287 (AB1287) amended the Density Bonus Law by requiring cities and counties to award an additional (or second) density bonus for projects that, after achieving the maximum density bonus previously (pre-January 1, 2024) offered by Density Bonus Law, propose to restrict specified percentages of additional affordable units at the very lowincome or moderate-income levels. Utilizing the Density Bonus Law provisions enacted by AB1287, the project is now eligible for two density bonuses, and can achieve the 40-unit residential density on the new, 2.23-acre Lot 1 without the use of clustering. The project would,

18.6 of course, still be located entirely on Lot 1 in one apartment building in continued furtherance of the clustering policy of the General Plan.

First Density Bonus
Under the amended Density Bonus Law (Gov. Code. §65915), the base density for the project is calculated using the greatest number of units allowed under the General Plan. As noted, the project General Plan Land Use Designation of Low Density Residential allows for up to 10 dwellings per acre, and the 2.22-acre Lot 1 thus has a base density of 23 units (under the Density Bonus Law, all values are rounded up to the next whole number per Gov. Code §65915(q)). If a project restricts 24% of its base density units for low-income households, the project is entitled to a 50% density bonus. This 50% density bonus is the maximum density bonus a project can achieve by providing units at the low-income level.

For the project to achieve the maximum 50% density bonus, it must restrict 24% of the base unit count, or six units, for low-income households. Under the updated application for the project, six units will be provided as low-income units, thus maximizing Density Bonus as shown in the table below. However, to meet the goals of the project, the applicant has voluntarily offered that one of the low-income units will be treated, for the required deed restricted 55-year period as very-lowincome.

First Density Bonus
Required Proposed
Percent low-income to
achieve 50% Density Bonus 24% ~26%
Low-income unit count to 5 low-income*
achieve 50% Density Bonus 6 units 6 units
1 voluntarily restricted to very-low-income
* The City’s inclusionary housing ordinance requires that a number of units equal to 20% of the base density be deed restricted to low-income households in perpetuity. Five of the low-income units will be deed restricted in perpetuity to satisfy this requirement.

By providing six low-income units (one of which the developer will voluntarily restrict for very low-income households), the project is eligible for the maximum possible density bonus of 50% of the base density, or 12 units. When added together, the base density of 23 units and the Density Bonus of 12 units result in a total of 35 units, five fewer than the proposed density of 40 units.

Additional Density Bonus
Because the project has achieved the maximum possible density bonus of 50% through the provision of low-income units, it is eligible for a second density bonus under the provisions of AB1287. The second density bonus can be achieved in one of the following two ways:
 Moderate-Income Units: A project can provide an additional 5% to 15% of the base units for moderate-income households to achieve an additional density bonus of 20% to 50%.

The project in question does not provide moderate-income units.

18.7  Very Low-Income Units: A project can restrict an additional 5% to 10% of its base units for very low-income households. The project would then be eligible for an additional 20% to 38.75% density bonus.

In addition to the six restricted affordable units described above in the first density bonus, the applicant is proposing to restrict an additional three units at the very low-income level in order to achieve the second density bonus. These three very low-income units will be deed restricted for a 55-year term. In order for the project to achieve the desired density of 40 units, an additional density bonus of five units would be needed. The three very low-income units equal 13% of the base density of 23 units for the project. Under the amended Density Bonus Law, the project thus qualifies for an additional density bonus of 38.75%, or nine units, four more than the five additional units needed for the 40 unit proposed density for the project, as is shown below. Because the use of Density Bonus State Law achieves the applicant’s desired density, clustering is no longer proposed as part of the project.

Additional Density Bonus
Percent Additional
Very Low-Income to
Qualify for Second
Density Bonus*
Corresponding
Percent
Additional
Density Bonus
Possible
Corresponding Unit Count
Additional Density Bonus
Possible (based on 23-unit
base density)
Total possible
density
(Base + Density
Bonus 1 + Density
Bonus 2)
5% 20% 5 additional units 40 units
6% 23.75% 6 additional units 41 units
7% 27.5% 7 additional units 42 units
8% 31.25% 8 additional units 43 units
9% 35% 9 additional units 44 units
10% 38.75% 9 additional units 44 units
*Providing one additional very low-income unit would not meet the minimum 5% threshold.

Providing two very-low-income units is equivalent to 8.7% of the base project and would qualify the project for an additional 31.25% density bonus (for a total 81.25% bonus, resulting in an allowance of 43 total units in this project). Providing two additional very low-income units would be sufficient to allow for the project, as proposed, with 40 units. However, the applicant has voluntarily offered to provide one additional very low-income unit. The proposed three additional very low-income units represent 13% of the base project, thus the project qualifies for the maximum, 38.75% density bonus (for a total 88.75% bonus), being 44 units in this case, even though they continue to propose only 40 units.

Appeal Point 3. We would specifically like to add to the conditions of approval concerns of the heritage trees along the easterly property line of the Springtree HOA.

Springtree HOA and homeowners are concerned that either the developer or property owner will come back at a later date, requesting the removal or disfigurement of the remaining heritage trees along the eastern property line between the development site and our lower quarry area. We would like it to be a condition of approval that the developer be restricted from endangering these heritage trees before, during and after development of the site.

18.8 Staff Response to Appeal Point 3:

Both the Zoning Administrator and Planning Commission approved the project with the City’s standard condition of approval related to tree protection which requires tree protection fencing to be installed prior to the commencement of any grading or site disturbance. Both staff and the applicant recognize preservation of existing heritage trees to be an important goal for the project.

Therefore, the applicant has voluntarily agreed to more stringent tree protection conditions of approval to demonstrate their commitment to preservation of the existing trees onsite.

In order to ensure that tree protection fencing is correctly installed, and to ensure the ongoing protection of trees intended for preservation, the recommended conditions of approval include the following modifications:
 Periodic Arborist Inspections: A qualified arborist must conduct an inspection of the site upon installation of tree protection fencing, prior to issuance of the first grading permit, and prior to pouring of the foundation to ensure tree protection measures and maintenance care are provided. A copy of the inspection letter, including recommendations for modifications to tree care or construction activity to maintain tree health, shall be provided to the Director of Planning and Community Development or his/her designee. If the Planning Department receives complaints that tree protection measures are not implemented throughout the construction process, additional inspection(s) from the project arborist may be required.
 Damage to Heritage Trees: In the event one or more of the preserved heritage tree(s) are not maintained and damage has occurred due to construction activity, a stop work order will be issued on the subject property. Prior to commencement of construction, the applicant must submit an arborist report describing any measures necessary to restore the health of the impacted tree(s) to the Department of Planning and Community Development and City Arborist for review and approval.
 Enhanced Mitigation for Trees Inadvertently Damaged: Should any additional heritage tree(s) require removal due to modifications to the proposed plan or failure to implement appropriate tree protection measures, a heritage tree removal permit shall be obtained pursuant to the requirements of Chapter 9 of the Santa Cruz Municipal Code. The removed heritage trees shall be replaced at an enhanced ratio of two 24-inch sized trees or four 15- gallon trees per tree removed (the City’s adopted replacement ratio is one 24-inch sized or three 15-gallon per tree removed).
 During pre-construction and construction activities, should any heritage tree experience decline and require removal due to causes unrelated to construction activities (as determined by the City Arborist), a heritage tree removal permit shall be obtained pursuant to the requirements of Chapter 9 of the Santa Cruz Municipal Code, Preservation of Heritage Trees and Heritage Shrubs, and the tree(s) shall be replaced at the City’s standard replacement ratio of one 24-inch sized or three 15-gallon tree for each Heritage tree removed.

The appellant seems to request that this project be conditioned to guarantee indefinite protection of trees onsite. At some point in the future, there may be a need to remove additional trees. In that instance, any appropriate permits would need to be obtained. Through the permitting process, staff would evaluate the proposed tree removal for consistency with applicable regulations in effect at the time.

18.9 Additional Revisions to Conditions of Approval
To respond to concerns raised in the appeal and the revised density bonus approach, and to achieve greater clarity, the recommended conditions of approval include several revisions since they were approved by the Planning Commission, which are summarized below:
 The Condition of Approval requiring a deed restriction to memorialize the clustering of residential density has been removed, as clustering is no longer proposed or needed for the project to achieve its proposed density.
 To ensure that the technical recommendations of the geologic and geotechnical reports are not misinterpreted or taken out of context, the recommended conditions of approval numbers 45 and 46 related to geological and geotechnical review now require: (1) that the applicant to implement all recommendations of both the project geologist and geotechnical engineer; (2) prior to issuance of the first building or grading permit the applicant shall submit letters from both the project geologist and geotechnical engineer provide a letter verifying that they have reviewed and approved of the construction drawings prior to issuance of the building permit; and (3) prior to occupancy of the first unit, the applicant shall submit letters from both the project geologist and geotechnical engineer provide a letter verifying that they have observed all stages of construction activities and that the building has been constructed in accordance with their recommendations.  Additional, more stringent tree-protection conditions of approval have been included with the applicant’s consent.
 Condition number 35 related to a Participation Agreement, consistent with the City’s inclusionary ordinance, was updated to reflect that density bonus units will also be deed restricted as affordable in accordance with the applicant’s density bonus request and additional, voluntarily provided affordable units.
 Certain conditions have been reordered and/or reworded for additional clarity.

City’s Legal Obligations under SB330
As the project has progressed through the planning process, community members opposing the project have repeatedly expressed their desire for the density to be reduced. However, under the Housing Accountability Act, the City cannot deny a housing project or reduce its density, floor area ratio (FAR), or unit count, if the project is consistent with objective standards that were in effect at the time the application was deemed complete, unless the City makes written findings that the project would have a specific, adverse impact upon public health or safety. To date, those opposing the project, or requesting reduced density, have not provided evidence to support the required density/density reduction findings of the Housing Accountability Act, nor is staff aware of any such evidence.

Consistency with the 6th Cycle Housing Element
The project is aligned with several goals and policies of the newly adopted 6th Cycle Housing Element and will contribute toward the City meeting its 6th Cycle Regional Housing Needs Allocation (RHNA), particularly through the provision of very low-income units. The project advances the following Housing Element policies and many other objectives:
 Policy 2.1: Enable mixed-income projects that encourage greater diversity within housing projects;

18.10  Policy 2.3: Support the Density Bonus as a valuable tool for incentivizing the development of housing and the inclusion of affordable units in housing projects;  Policy 6.2: Support affordable housing and the siting of new housing that furthers fair housing; and
 Policy 7.3: Support transit-oriented development and non-motorized transportation.

The project is aligned with Goal 5 of the Housing Element because it is sited on a vacant portion of an underutilized site and will not result in displacement of any existing residential units. For Policy 6.2, the site is located in a high opportunity area with predominantly single-family residential units, so this multi-family housing project, particularly its affordable units, supports a number of the Housing Element’s affirmatively furthering fair housing objectives.

Additional General Plan consistency analysis is included in prior reports. However, the new Housing Element was adopted subsequent to the preparation of those reports, so the above analysis was added.

Environmental Determination
The project has been determined to be exempt from the California Environmental Quality Act (CEQA) under a Statutory Exemption pursuant to Public Resources Code Section 21083.3 and State CEQA Guidelines Section 15183 (Projects Consistent with General Plan, Community Plan or Zoning). Public Resources Code section 21083.3 and its parallel CEQA Guidelines provision, section 15183, provide for streamlined environmental review for projects consistent with the general plan for which an Environmental Impact Report (EIR) was certified. Subsection (d) further indicates that an effect of a project upon the environment shall not be considered “peculiar to the parcel or to the project…if uniformly applied development policies or standards” have been previously adopted by the city or county, with a finding based upon substantial evidence, that the development policies or standards will substantially mitigate that environmental effect when applied to future projects, unless substantial new information shows that the policies or standards would not substantially mitigate the environmental effect. Under these provisions of CEQA, the project has been found to be consistent with the General Plan. It has been determined that the City’s General Plan 2030 EIR has adequately addressed most environmental issues related to the project, and some site-specific project impacts have been analyzed and determined to be less than significant due to substantial mitigation resulting from General Plan policies, zoning regulations and/or development conditions and standards that are uniformly applied to development projects throughout the City. Therefore, no further environmental review is required pursuant to Public Resources Code section 21083.3 and section 15183 of the CEQA Guidelines, and the project is exempt from further CEQA review. An environmental checklist is attached and provides the explanations and support for this determination.

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. The proposed residential project supports the pillar of equity by providing affordable rental units on a site in a designated high-opportunity area that is improved with sidewalks, street trees, and that is in close proximity to public transportation, commercial goods and services, and recreational areas. The development of residences in this central location

18.11 encourages a sustainable and healthy lifestyle by promoting alternative forms of transportation.

Therefore, the project is consistent with the three pillars of the HiAP and is recommended as an efficient use of the land.

Summary and Recommendation
The concerns raised by the appellant related to geological proceedings are generally unsubstantiated, as the project has undergone extensive geological and geotechnical investigation to ensure that the site is physically suitable for the proposed development from a geologic standpoint, if the project is constructed in accordance with geological and geotechnical recommendations. Nevertheless, the recommended conditions of approval have been revised to address appellant concerns more specifically by requiring the Geologist of Record and Geotechnical Engineer of Record to review the construction plans prior to issuance of the building permit and sign off on the building prior to occupancy of the first unit to ensure their recommendations are accurately implemented. The appellant’s concern that the project may result in damage or removal to trees intended for preservation is generally mitigated by the City’s standard tree protection conditions which are included for this project; however, the recommended conditions of approval include more stringent tree protection conditions at the applicant’s consent to demonstrate the project’s commitment to preserving trees onsite.

The project’s base residential density complies with the allowed density ranges of the Low-Density Residential General Plan land use designation. By providing five low-income and four very lowincome units, the project is eligible for density bonuses amounting to 88.75-percent and could achieve a density of up to 44 units. The project is consistent with the General Plan and meets all the applicable required objective site development standards, except as modified by density bonus waivers and concessions. Therefore, staff recommends that the City Council adopt a resolution denying the appeal, upholding the Planning Commission approval of the Minor Land Division, Design Permit, Slope Development Permit, Density Bonus Request, and Heritage Tree Removal Permit based on the Findings listed in the attached resolution and the attached Conditions of Approval.

FISCAL IMPACT: The applicant has paid fees to compensate for costs associated with staff time processing this application. Likewise, the appellant has paid an appeal fee that covers a portion of staff costs associated with the additional review associated with the appeal. The project will contribute to increased property tax and sales tax revenue to the City, and the project developer will be required to pay City impact fees. The additional revenue generated by the project will help offset the costs of providing municipal services demanded by the project, though many residential uses typically have net negative fiscal effects over time.

Prepared By:

Brittany Whitehill
Senior Planner
Submitted By:

Lee Butler
Director of Planning and
Community Development
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:
 Resolution
 Conditions of Approval
 Appeal Letter Dated December 11, 2023

18.12  Project Plans
 Statutory Exemption Checklist
 Revised Density Bonus Proposal and Project Description  Geological Response to Appeal Letter, Dated January 1, 2024  November 30, 2023, Planning Commission Agenda Report
 November 30, 2023, Planning Commission Action Minutes  October 4, 2023, Zoning Administrator Agenda Report
 October 4, 2023, Zoning Administrator Action Minutes

18.13 RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ DENYING THE APPEAL OF NORMAN TARDIF, REPRESENTING THE SPRINGTREE HOMEOWNER’S

ASSOCIATION AND WESTLAKE NEIGHBORS, THEREBY UPHOLDING THE PLANNING COMMISSION’S ACKNOWLEDGEMENT OF THE ENVIRONMENTAL

DETERMINATION AND APPROVAL OF THE MINOR LAND DIVISION, DESIGN

PERMIT, SLOPE DEVELOPMENT PERMIT, DENSITY BONUS REQUEST, AND

HERITAGE TREE REMOVAL PERMIT TO DIVIDE A PARCEL INTO TWO LOTS AND CONSTRUCT A 40 UNIT, FOUR-STORY APARTMENT BUILDING WITHIN 20 FEET OF A 30-PERCENT SLOPE AND TO REMOVE 14 HERITAGE TREES ON A SITE WITH AN EXISTING CHURCH IN THE R-1-10 (SINGLE FAMILY RESIDENCE) ZONE DISTRICT, (APPLICATION NO. CP22-0164)
WHEREAS, On November 30, 2022, Workbench submitted an application for a Minor Land Division, Design Permit, Slope Development Permit, Density Bonus Request, and Heritage Tree Removal Permit to divide a parcel into two lots and construct a 40 unit (including five lowincome units and four very low-income units), four-story apartment building within 20 feet of a 30- percent slope and to remove 14 heritage trees on a site with an existing church in the R-1-10 (Single Family Residence) zone district; and
WHEREAS, the project site and its development is governed by the standards and guidelines contained in Municipal Code, and the City of Santa Cruz General Plan; and WHEREAS, the project qualifies for a Statutory Exemption from the California Environmental Quality Act (CEQA) pursuant to section 21083.3 of the Public Resources Code (Sec. 15183 of the CEQA Guidelines), as articulated below; and WHEREAS, the project was approved by the Zoning Administrator on October 4, 2023, and subsequently appealed to the Planning Commission by Deborah Elston, representing the Westlake Neighbors Association. Planning Commission conducted a public hearing on November 30, 2023 and, after public hearing testimony, voted 6-0 with one commissioner absent, to approve the Minor Land Division, Design Permit, Slope Development Permit, Density Bonus Request, and Heritage Tree Removal Permit to divide a parcel into two lots and construct a 40 unit (including five low-income units and four very-low income units), four-story apartment building within 20 feet of a 30-percent slope and to remove 14 heritage trees; and
WHEREAS, the Planning Commission’s approval was appealed to the City Council on December 11, 2023, by Norman Tardif, representing the Springtree Homeowner’s Association (HOA) and Westlake Neighbors Association; and
WHEREAS, the City Council conducted a duly noticed public hearing on February 13, 2024 to consider the application and appeal; and
WHEREAS, the City Council now makes the following findings:

18.14 RESOLUTION NO. NS-XX,XXX
With Respect to the Environmental Determination
The project has been determined to be exempt from the California Environmental Quality Act (CEQA) under a Statutory Exemption pursuant to Public Resources Code Section 21083.3 and State CEQA Guidelines Section 15183 (Projects Consistent with General Plan, Community Plan or Zoning). Public Resources Code Section 21083.3 allows a lead agency to avoid repeating analyses that were already provided in a certified general plan Environmental Impact Report (EIR) for a development project that is consistent with the general plan. Public Resources Code section 21083.3 and its parallel CEQA Guidelines provision, section 15183, provide for streamlined environmental review for projects consistent with the general plan for which an EIR was certified. Subsection (d) further indicates that an effect of a project upon the environment shall not be considered “peculiar to the parcel or to the project…if uniformly applied development policies or standards” have been previously adopted by the city or county, with a finding based upon substantial evidence, that the development policies or standards will substantially mitigate that environmental effect when applied to future projects, unless substantial new information shows that the policies or standards would not substantially mitigate the environmental effect.

Under these provisions of CEQA, the project has been found to be consistent with the General Plan. It has been determined that the City’s General Plan 2030 EIR has adequately addressed most environmental issues related to the project, and some site-specific project impacts have been analyzed and determined to be less than significant due to substantial mitigation resulting from General Plan policies, zoning regulations and/or development standards that are uniformly applied to development projects throughout the City. Therefore, no further environmental review is required pursuant to Public Resources Code section 21083.3 and section 15183 of the CEQA Guidelines, and the project is exempt from further CEQA review. An environmental checklist attached to the City Council staff report provides the explanations and support for this determination.

FINDINGS:

Tentative Parcel Map, Section 23.20.020.6, 23.16.050.4

1. The proposed subdivision, together with provisions for its design and improvements, is consistent with applicable general or specific plans adopted by the city of Santa Cruz.

The proposal to divide the 258,825 square foot (5.9-acre) project site into two parcels is consistent with the density requirements, goals, and policies of the L (Low-Density Residential) General Plan designation and is consistent with the development standards of the R-1-10 zone district. The land division will result in the two parcels exceeding the minimum 10,000 square foot parcel size and 70-foot minimum lot width required in the R1-10 zone district.

Santa Cruz Municipal Code Sec. 23.24.030.6(i) allows for the creation of a flag lot where warranted by physical conditions of land form, existing lot pattern, or unusual size and shape of parcels. It requires the strip of land connecting the main portion of a flag lot to the street to be not less than twenty feet wide at any point and requires that it provide practical vehicular access; but the code specifies that it shall not be used to help satisfy the minimum lot area requirement of the zoning district.

18.15 RESOLUTION NO. NS-XX,XXX
The proposed subdivision results in a flag lot configuration to allow for infill development on the site while preserving the existing church and associated uses. The flag lot configuration allows for the proposed residential development to be located on a portion of the site with relatively low slope and minimal impacts to heritage trees.

The project is also consistent with the goals and policies in the General Plan and the current Housing Element in that the project will maximize development on an underutilized infill parcel (General Plan Policy LU3.7.1) in a way that is consistent with surrounding singlefamily land uses (General Plan Policy LU4.1.2). The subdivision and development have been configured to maximize preservation of heritage trees on the site (General Plan Policy LU2.3.6).

2. The site is physically suitable for the type of development proposed.

The subdivision and development have been designed to site residential density on a portion of the site most suitable for development. The proposed subdivision and building configuration results in a site plan which preserves the existing church use onsite and allows for reuse of existing vehicular circulation areas.

The site is located within areas mapped in the General Plan as sensitive and highly sensitive for archaeological resources. Albion Environmental prepared an initial archaeological investigation in June 2019, and subsequent Extended Phase I Study in March 2023. The reports did not indicate the presence of any intact archaeological resource at the site that could be impacted by the proposed project; however, the report included recommendations that the applicant stop work and contact the appropriate authorities should earth-moving work result in discovery of an intact resource. This recommendation is consistent with a standard condition of approval that is included for this project.

The project has undergone extensive geological and geotechnical investigation to ensure that the site is physically suitable for the proposed development from a geologic standpoint. The project will be constructed on a portion of the site with a relatively low degree of slope and high degree of soil stability, appropriately set back from the quarry to the east, and implementing appropriate measures to mitigate any possible risk associated with underlying karst rock formations, in accordance with the findings and recommendation of the project geologist, Erik Zinn of Pacific Crest Engineering, and the project Geotechnical Engineer, Becky Dees of Dees and Associates. Conditions of approval will require the applicant to implement all recommendations of both the project geologist and geotechnical engineer.

Additionally, conditions of approval will require that both the project geologist and geotechnical engineer provide a letter verifying that they have reviewed and approved of the construction drawings prior to issuance of the building permit, and a subsequent letter signing off on the project prior to occupancy.

The northeastern portion of the site contains a eucalyptus grove that is identified in the General Plan as potentially containing monarch butterfly habitat. A report prepared by Ecosystems West Consulting Group dated May 20, 2020, and a follow-up report, dated

18.16 RESOLUTION NO. NS-XX,XXX
January 4, 2023, concluded that the eucalyptus grove was not providing fall or winter roosting habitat, and was unlikely to provide suitable habitat in the future. The reports recommended a preconstruction survey be conducted in the fall prior to the commencement of construction, and that tree removal occur outside of the fall roosting period. Both recommendations are included as conditions of approval.

By adhering to the recommendations in the archaeological, geological, geotechnical and biotic reports, the project is not anticipated to create any adverse impacts to resources and the portion of the site where development is proposed is suitable for development.

The newly created lot where the housing development will be sited will be physically suitable for the development of the residential use. The developable portion of the lot meets the minimum net lot area requirements for the R-1-10 zone district. The project site is surrounded by other residential uses and will have access to public utilities including sewer and water.

The design and improvements of the proposed land division are consistent with the applicable policies of the General Plan in that the applicant is required to make streetscape improvements including the construction of a new sidewalk with curb and gutter improvements at each frontage (CD4.3.5, M.4.1.7-M4.1.9) and all utilities serving future development will be required to be placed underground (CD4.2.3). The parcel is not located within a specific plan area.

3. The site is physically suitable for the proposed density of development.

The newly created lot where the housing development will be sited will be physically suitable for the density of residential development proposed. The project site is surrounded by other residential uses and will have access to public utilities including sewer and water. The project is sited on a portion of the lot with a relatively low degree of slope, relatively high soil stability, and adequately set back from the quarry to the east, in accordance with the recommendations of the project Geologist of Record.

The site’s General Plan land use designation of Low-Density Residential accommodates single family residential neighborhoods typically consisting of detached homes and with a density range of 1.1 to 10 dwellings per acre. The project site, in its entirety, is 5.9 acres in size. The residential development will be placed on the new 2.23-acre lot resulting from the minor land division. The General Plan density range results in a base density of 23 units on the resulting 2.23-acre lot containing the apartment (under the Density Bonus Law, all values are rounded up to the next whole number per Gov. Code §65915(q)). The project proposes a base density of 23 units and is therefore consistent with the densities allowed in the General Plan except as modified by State Density Bonus Law.

As of January 1, 2024, Assembly Bill 1287 (AB1287) amended the Density Bonus Law by requiring cities and counties to award an additional (or second) density bonus for projects that, after achieving the maximum density bonus previously (pre-January 1, 2024) offered by Density Bonus Law, propose to restrict specified percentages of additional affordable units at the very low-income or moderate-income levels. Utilizing the Density Bonus Law

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provisions enacted by AB1287, the project is now eligible for two density bonuses, and can achieve the 40-unit residential density on the new, 2.23-acre Lot 1 without the use of clustering. The project would still be located entirely on Lot 1 in one apartment building in continued furtherance of the clustering policy of the General Plan.

By providing five low-income and four very low-income units, the project is eligible for up to an 88.75 percent density bonus, or a total of 44 units. The project proposes 17 density bonus units in addition to the 23 base density units, for a total unit count of 40 units. The proposed density complies with the density restrictions of the Santa Cruz General Plan, as modified by State Density Bonus Law.

4. The design of the subdivision or the proposed improvements is not likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat.

The northeastern portion of the site contains a eucalyptus grove that is identified in the General Plan as potentially containing monarch butterfly habitat. An analysis prepared by Ecosystems West Consulting Group concluded that the eucalyptus grove was not providing fall or winter roosting habitat and was unlikely to provide suitable habitat in the future. The reports recommended a preconstruction survey be conducted in the fall prior to the commencement of construction, and that tree removal occur outside of the fall roosting period. Both recommendations are included as conditions of approval with the project to avoid potential adverse impacts to wildlife habitats.

The project includes a standard condition of approval that, if project site work occurs anytime between February 1 and August 31, the applicant shall submit documentation of a preconstruction nesting bird survey by a qualified biologist prior to the start of work.

Preconstruction surveys of nesting birds and roosting monarchs will minimize any potential adverse impact to wildlife or their habitat on the site.

5. The design of the subdivision or the type of improvements is not likely to cause serious public health problems.

The design of the subdivision will not cause serious public health problems in that the applicant will be required to construct site and utility improvements in accordance with City Standards and Public Works design criteria. Storm water treatment and retention facilities designed for the proposed Lot 1 and residential development comply with City standards.

The new residential development on the proposed Lot 1 will be required to meet all requirements of the California Building Code and all applicable City Ordinances.

6. The design of the subdivision or the type of improvements will not conflict with easements acquired by the public at large for access through, or the use of, property within the proposed subdivision.

The site does not contain any existing public easements that would be impacted by the project or subdivision.

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Design Permit, Section 24.08.430

7. The site plan and building design are consistent with design and development policies of the General Plan, any element of the General Plan, and any area plan, specific plan, or other city policy for physical development. If located in the Coastal Zone, the site plan and building design are also consistent with policies of the Local Coastal Program.

Although the site’s Low-Density Residential General Plan Land Use Designation and R-1- 10 zone district envision primarily single-family development, Senate Bill 330 (SB330), and the amendments it made to the Housing Accountability Act, identify the General Plan as superseding any inconsistent zoning designation and require an agency to permit residential development on a particular site at the density allowed under the General Plan. The General Plan Land Use Designation of Low-Density Residential allows for up to 10 dwelling units per acre. The project will be sited on a 2.23-acre lot with an allowed base density of up to 23 units. An additional 17 units are awarded to the project through density bonuses. Therefore, the density proposed is within the density range envisioned in the General Plan, except as modified by State Density Bonus Law. Gov. Code. §65915(j)(1) specifies that “the granting of a density bonus shall not require, or be interpreted, in and of itself, to require a general plan amendment, local coastal plan amendment, zoning change, or other discretionary approval.”
The project is consistent with several policies of the 2030 General Plan, including Policies LU1.1 and LU4.2 by optimizing development intensity of an infill parcel that is adequately served by public utilities, and within easy access via walking, biking, or public transit to nearby community amenities, including several religious facilities, elementary and higher education facilities, and employment opportunities.

The site is located within areas mapped in the General Plan as sensitive and highly sensitive for archaeological resources. Archeological assessments of the site during did not indicate the presence of any intact archaeological resource but recommended that the applicant stop work and contact the appropriate authorities should earth-moving work result in discovery of an intact resource. This recommendation is consistent with a standard condition of approval, which aims to identify and protect archeological resources throughout the construction process. This condition of approval is included in the recommended conditions of approval.

General Plan policy HZ3.2.3 requires that interior noise in all new multifamily housing does not exceed 45 dBA. An initial noise assessment letter prepared by Edward L Pack Associates Inc. dated August 9, 2022, noted that the only possible source of significant noise at the site would be the playgrounds at the adjacent Westlake Elementary School. Given the distance between the playgrounds and the proposed building footprint (approximately 400 feet), noise impacts on residents are expected to be minimal and consistent with the General Plan policy.

The project is aligned with several goals and policies of the newly adopted 6th Cycle Housing Element and will contribute toward the City meeting its 6th Cycle Regional Housing Needs Allocation (RHNA), particularly through the provision of very low-income units. The project

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advances the following Housing Element policies and many other objectives: Policy 2.1:

Enable mixed-income projects that encourage greater diversity within housing projects; Policy 2.3: Support the Density Bonus as a valuable tool for incentivizing the development of housing and the inclusion of affordable units in housing projects; Policy 6.2: Support affordable housing and the siting of new housing that furthers fair housing; and Policy 7.3:

Support transit-oriented development and non-motorized transportation.

The project is aligned with Goal 5 of the Housing Element because it is sited on a vacant portion of an underutilized site and will not result in displacement of any existing residential units. For Policy 6.2, the site is located in a high opportunity area with predominantly singlefamily residential units, so this multi-family housing project, particularly its affordable units, supports a number of the Housing Element’s affirmatively furthering fair housing objectives.

The project is not located in any area plan boundary. The project is not located in the Coastal Zone.

8. For non-residential projects, the project’s location, size, height, operations, and other significant features and characteristics are compatible with and do not adversely affect or further degrade adjacent properties, the surrounding neighborhood, or the public health, safety, and welfare. For residential projects, the project complies with the objective standards and requirements of the zoning district in which it is located, as well as any objective standards of any area plan or other regulatory document that applies to the area in which the project is located.

The project complies with all development standards of the R-1-10 zone district and all other applicable sections of the Santa Cruz Municipal Code, that were in effect at the time the project’s SB330 preapplication was deemed complete, except as modified by density bonus concessions and waivers. An SB330 preapplication associated with the project was deemed complete prior to the City’s adoption of the citywide Objective Design Standards for Multifamily Housing (Objective Standards) contained in Section 24.12.185 of the Zoning Ordinance, therefore the project is only subject to the Objective Standards that were in effect prior.

9. For non-residential projects, the project provides for an arrangement of uses, buildings, structures, open spaces, and other improvements that are compatible with the scale and character of the adjacent properties and surrounding neighborhood.

The project is a residential project; therefore, this finding does not apply.

10. The exterior design and appearance of buildings and structures and the design of the site plan shall be compatible with design and appearance of other existing buildings and structures in neighborhoods which have established architectural character worthy of preservation.

The project complies with all applicable objective development and design standards of Chapter 24 (Zoning) of the municipal code, except as modified by the density bonus request.

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The site contains a church that was constructed in 1957 and is described as a property that is eligible but has opted out of listing on Volume III of the Santa Cruz Historic Building Survey.

The church will remain as part of the development; therefore, the new residential development will have no impact on the existing building. Additionally, the new apartment is sited to be partially screened from public view. The proposed development incorporates angled massing, as well as colors and materials, that are compatible with the existing church building. Therefore, any portions of the proposed building that are visible from the street will be compatible with the existing church building and will not adversely impact the church campus’ context.

The site is not located within a historic district or within an area plan that seeks to preserve an established architectural style. Although there are several listed historic resources along High Street, the new development is set back substantially from High Street and will not result in any visual impacts affecting the context of any historic resource in its vicinity.

11. Design of the site plan respects design principles in terms of maintaining a balance of scale, form and proportion, using design components which are harmonious, and materials and colors which blend with elements of the site plan and surrounding areas.

Location of structures takes into account maintenance of public views; rooftop mechanical equipment is incorporated into roof design or screened from public rightsof-way to the extent possible. Utility installations such as trash enclosures, storage units, traffic-control devices, transformer vaults and electrical meters are accessible and screened.

The project maintains a balance of scale, form and proportion by breaking up the building massing into a V-shaped configuration and stepping the building height to mimic the sloped topography of the site. The site is designed such that the new building will be substantially screened from view from public right of way and surrounding properties. The site design includes significant setbacks from surrounding property lines, which allow for a landscape buffer comprised of existing trees and naturalized grasses, as well as a varied palette of new plants.

The design features a multitude of windows, glass doors and balconies to punctuate the façade such that there are no large, blank building walls. The plans include a proposed material palette but indicate that similar alternative materials may be proposed during the building permit phase. To ensure that the materials will be of high quality and compatible with the existing and surrounding development, a condition of approval will require that any deviation from the proposed materials be approved by the Planning Department prior to issuance of the building permit.

The trash enclosure will be screened from public view by the existing church campus to remain on Lot 2. Existing trees to remain along the western property line will provide a visual screen between Westlake Elementary and the trash enclosure. A condition of approval requires any rooftop mechanical equipment or utility installations to be screened from public view and requires utility installations to be accessible. The site does not include or contribute to a viewshed of any significant public views identified in the General Plan.

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12. Where a site plan abuts, or is in close proximity to, uses other than that proposed, the plan shall take into account its effect on other land uses. Where a nonresidential use abuts or is in close proximity to a residential use, the effect of the site plan should maintain the residential quality of adjacent or nearby areas.

The project site does abut several different land uses, including UCSC campus housing to the north; a quarry, single family homes, city owned land, and a church to the east; single family homes across High Street to the south; and Westlake Elementary School to the west.

Because the proposed residential development is consistent with the allowed densities in the General Plan, the project will not affect the use of High Street beyond the expected increase in bicycle, pedestrian, and vehicle usage as anticipated under the city buildout projected in the General Plan. The residential use is located within a predominately residential neighborhood and is not anticipated to result in adverse noise or operational impacts to adjacent school and church uses, or single-family homes.

During review of the project, the City’s Public Works Department identified that the existing onsite circulation was suboptimal due to the proximity of the egress driveway to the driveway for Westlake Elementary. To address existing onsite circulation deficiencies, the project will renavigate onsite traffic by providing a right turn only, entrance/ ingress point at the west driveway adjacent to Westlake Elementary. The primary ingress and egress will be provided at the east driveway, away from Westlake Elementary. Signage will be placed onsite to deter residents and visitors from turning left across High Street onto the “west” driveway.

13. To the extent feasible, the orientation and location of buildings, structures, open spaces and other features of the site plan maintain natural resources including significant trees and shrubs, minimize impacts to solar access of adjacent properties, and minimize alteration of natural land forms; building profiles, location, and orientation must relate to natural land forms.

The report recommended removal of 14 heritage trees, six that are in poor condition and eight that are within the project footprint. An addendum letter dated February 3, 2023, evaluated whether an alternative building location would enable preservation of additional heritage trees, but did not identify a superior alternative. The orientation and location of the building on the site maximizes preservation of heritage trees while avoiding highly sloped areas. The conditions of approval include stringent tree protection conditions to mitigate any possible impacts to Heritage trees intended to be preserved that could arise from construction activities.

The building has been designed to be significantly screened from view from the street and surrounding properties, and to step down in height with the hillside, thereby minimizing its perceived height, as well as required grading and alteration of natural landforms. The proposed landscape plan incorporates a variety of native plants while maintaining much of the site in a natural state. A shadow study was submitted by the applicant indicating that the proposed building is not expected to significantly worsen shading impacts to adjacent properties beyond current conditions.

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14. The site plan ensures that the scale, bulk, and setbacks of new development preserves important public views along the ocean and of designated scenic coastal areas. Where appropriate and feasible, the project shall restore and enhance visual quality of visually degraded areas.

The project would not impact a significant public view identified in Figure 4.3-1 of the City of Santa Cruz General Plan 2030 Environmental Impact Report (EIR); however, project impacts to public views were considered as part of the project review. The nearest vantage points from which the coast may be viewable where the project could conceivably impact coastal views are located along Hagar Court, west (uphill) from the project. These vantage points are obstructed by existing buildings on private property; therefore, the proposed project would not create any new impact on important public views or designated scenic coastal areas.

15. The site plan shall reasonably protect against external and internal noise, vibration and other factors which may tend to make the environment less desirable. The site plan should respect the need for privacy of adjacent residents.

Any noise or vibrations that may occur as a result of construction will be temporary. Once constructed, the residential apartment building will generate noise typical of a residential neighborhood. An initial noise assessment letter prepared by Edward L Pack Associates Inc. dated August 9, 2022, noted that the only possible source of significant noise impacting the project site would be the playgrounds at the adjacent Westlake Elementary School. Given the distance between the playgrounds and the proposed building footprint (approximately 400 feet), noise impacts on residents are expected to be minimal and consistent with the General Plan policy. A condition of approval is included that require the development to comply with limits established in Chapter 24.14 of the Santa Cruz Municipal Code as to the emission of noise, odor, smoke, dust vibration, wastes, fumes or any public nuisance arising or occurring incidental to its establishment or operation. Additionally, a condition of approval will require that, prior to issuance of a building permit, the applicant shall provide documentation confirming that all mechanical equipment comply with the City’s noise standards.

16. Building and structures shall be designed and oriented to make use of natural elements such as solar radiation, wind, and landscaping for heating, cooling, ventilation, and lighting.

The new building has windows on all elevations that will allow natural light and ventilation into the building. The balconies and terraces provide each unit with private outdoor space to access sunlight and fresh air. The site plan retains several heritage trees throughout the site and includes new landscaping that will provide cooling and shading. The flat roof provides a space where solar photovoltaic equipment could be installed.

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Slope Development Permit, Section 24.08.820

17. Measures have been included within the design of the project to mitigate impacts on environmental constraint areas identified in the Natural Resources and Conservation Element and the Safety Element of the General Plan and the Local Coastal Program.

The northeastern portion of the site contains a eucalyptus grove that is identified in the General Plan as potentially containing monarch butterfly habitat. To identify and mitigate any adverse impacts to monarch butterfly habitat onsite, the project application submittal included a report prepared by Ecosystems West Consulting Group dated May 20, 2020, and a follow-up report, dated January 4, 2023. The reports concluded that the eucalyptus grove was not providing fall or winter roosting habitat and is unlikely to provide suitable habitat in the future. The reports recommended a preconstruction survey be conducted in the fall prior to the commencement of construction, and that tree removal occur outside of the fall roosting period.

The site is located within areas mapped in the General Plan as sensitive and highly sensitive for archaeological resources. Albion Environmental prepared an initial archaeological investigation in June 2019, and subsequent Extended Phase I Study in March 2023. The reports did not indicate the presence of any intact archaeological resource but recommended that the applicant stop work and contact the appropriate authorities should earth-moving work result in discovery of an intact resource. The recommended condition of approval includes standard conditions that are consistent with the recommendations of Albion Environmental to minimize potential impacts to archeological resources on the site.

18. Landscaping of an appropriate type, size, and quality is proposed to mitigate any adverse environmental effect.

The project proposes to remove fourteen heritage trees. The planting palette includes thirtysix new trees, which, at maturity, are expected to result in comparable or greater tree canopy as compared to existing conditions. The proposed plant palette includes numerous native species and incorporates a variety of groundcovers, shrubs and trees. A majority of the site will retain its existing, naturalized landscaping. The existing retained and proposed landscaping will minimize potential environmental impacts such as groundwater runoff, erosion, and loss of tree canopy.

19. Usable open space is proposed in an amount equal to that normally required.

The project is located within the R-1-10 zone district, which does not have a minimum open space requirement. However, the project provides one or more private balconies of terraces for all units, as well as a common resident amenity area at the northern portion of the site, which includes a paved path, seating areas, barbeque areas, trellises, and enhanced landscaping.

20. A registered civil engineer or other qualified professional will design streets, buildings, and other man-made structures to conform with existing landforms and topography.

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The project applicant has engaged the services of a licensed civil engineer, geologist and geotechnical engineer to aid in the design of driveway and site improvements, as well as the building. A condition of approval will require that all civil plan sheets of the building permit submittal be stamped by a licensed civil engineer. Furthermore, conditions of approval will require the geologist and geotechnical engineers to sign off on the construction drawings prior to issuance of the building permit, and the final constructed project prior to occupancy.

21. Adequate fire safety measures as required by the city fire department have been incorporated into the design of the proposed development, when located in a designated fire hazard area.

The project was reviewed by the Santa Cruz Fire Department and was found to be in compliance with all fire department requirements for projects located in designated fire hazard areas.

22. The proposed project employs architectural and design elements which in total serve to reduce the mass and bulk of structures to protect public views. Such elements may include:
a. Multiple floor levels which follow natural slopes: The building height ranges from three stories to four stories and is staggered to follow the natural slope of the property, thereby minimizing visual impacts and grading quantities. b. Multiple roof lines to provide visual interest and break up the visual impact of the building: The stepped-down design of the building results in multiple, staggered roof lines that reduce the perceived mass and bulk of the building and preserve views from onsite. The project is not expected to impact public views. c. Decks and balconies to provide building articulation: The building facades are punctuated with balconies and incorporate a multitude of windows and several accent materials. These features provide building articulation to enhance visual interest of the building while reducing the appearance of mass and bulk. d. Foundation types such as poles, piles, or stepped levels which minimize cut and fill and need for retaining walls: The stepped-down building design reduces grading needs to accommodate the project. Additionally, the project proposes minor improvements to existing driveways, in lieu of new driveways. Maintaining existing driveways to provide access to the site further reduces grading quantities. e. Fence lines, walls, and other features which blend with the terrain rather than strike off at an angle against it: The project will maintain and improve existing fences along the shared side property lines. A new, three-foot wooden and hog wire fence is proposed along the rear property line. The fence will be of minimal height and highly transparent and will blend into the natural terrain. A low, small retaining wall is proposed directly southeast of the proposed building. This retaining wall

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will be incorporated into a staggered landscape design that is compatible with the natural surroundings and will not adversely impact any public views.

23. If a project proposed for construction is in a landslide area identified in a site-specific geological report prepared pursuant to Section 24.14.030(1)(d), findings must be made that mitigation measures necessary to fulfill the purpose of this part have been incorporated into project design, based on the project’s environmental review and geotechnical reports.

The project has undergone extensive geological and geotechnical investigation to ensure that the project will be safe from a geologic standpoint. A project-specific geotechnical report prepared by Dees & Associates, Inc. in March 2023 included a stability analysis of the portion of the site where the building will be situated. The analysis indicated that the portion of the site where the proposed building is stable under both static and seismic conditions.

Additionally, in September of 2023, the project geotechnical engineer, Becky Dees of Dees and Associates completed site-specific supplementary drilling to confirm that the project is appropriately sited relative to existing karst formations.

The project has been designed in accordance with the recommendations of the project geologist and geotechnical engineer: on a portion of the site with a relatively low degree of slope and high degree of soil stability, appropriately set back from the quarry to the east, and implementing appropriate measures to mitigate any possible risk associated with underlying karst rock formations. Conditions of approval will require the applicant to implement all recommendations of both the project geologist and geotechnical engineer. Additionally, conditions of approval will require that both the project geologist and geotechnical engineer provide a letter verifying that they have reviewed and approved of the construction drawings prior to issuance of the building permit, and a subsequent letter signing off on the project prior to occupancy.

Density Bonus, Section 24.16.270.2

24. The housing development is eligible for a density bonus and any concessions, incentives, waivers, modifications, or modified parking standards requested; conforms to all standards for affordability included in this section; and includes a financing mechanism for all implementation and monitoring costs.

Based on recent amendments to State Density Bonus Law recently enacted by AB1287, the project is eligible for up to an 88.75% density bonus (or 44 units total) because it provides five low-income and four very low-income units. The project proposes 17 density bonus units in addition to the 23 base density units, for a total unit count of 40 units. The proposed density complies with the density restrictions of the Santa Cruz General Plan, as modified by State Density Bonus Law.

A condition of approval will require the owner to comply with the inclusionary housing requirements as outlined in Section 24.16.010 of the Zoning Ordinance. The owner will be required to enter into a Participation Agreement establishing compliance with inclusionary

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housing requirements prior to recordation of the final subdivision map and recorded prior to final occupancy of the first unit. In addition to complying with the City’s inclusionary ordinance, which restricts affordability of units in perpetuity, the Participation Agreement will also document and require the affordability restrictions associated with the granting of the applicant’s density bonus request, as specified in the staff report, including the applicant’s voluntary offer to provide one of the low-income units at a very low-income level for the initial 50% density bonus and including the applicant’s voluntary offer to provide one additional very low-income unit beyond that needed for the project’s supplemental density bonus under AB1287.

Per State Density Bonus Law, the project qualifies for four incentives/concessions since it provides at least 20-percent of units to lower-income households. Per section 24.16.255 (4), the project is eligible to request an unlimited number of waivers or modifications to development standard, if those standards physically preclude the construction of the housing development, and the housing development is eligible for density bonus.

AB2097 modified California Government Code Section 65863.2 to eliminate any parking requirement for a site within half a mile of an existing or planned major transit stop. The provisions of AB2097 were incorporated into the City’s Zoning Code in the spring of 2023 through City Council Ordinance No. 2023-06. The project site is within half a mile of a planned major transit stop, and therefore parking is not required for the project, however, the project is voluntarily providing parking that will comply with electric vehicle and accessible parking requirements of the Municipal Code.

The project will be privately financed; all financing costs for implementation and monitoring will be provided by the applicant.

25. Any requested incentive or concession will result in identifiable and actual cost reductions to provide for affordable rents or affordable ownership costs based upon appropriate financial analysis and documentation if required by Section 24.16.255.

Per Section 24.16.225.3, a density bonus project qualifies for concessions when the applicant provides reasonable documentation showing that the requested concession results in actual and identifiable cost savings to the project to provide for affordable rents. The project requests a concession for increased building height and stories to allow a building that is four stories and 54 feet tall at its highest point (a portion of the stair tower and trash room extend to the fifth story level; however, these areas are exempt from height limitations pursuant to Sec. 24.12.150.1(e) of the Santa Cruz Municipal Code). The applicant has provided justification that the greater building height will reduce the project footprint, thus reducing costs associated with excavation, grading, and soil engineering. The project also requests a concession for a reduced front yard of 17’10.75”, in lieu of the minimum 20’ front setback required in the R-1-10 zone district. The applicant has provided justification that the reduced front setback enables the building to be shifted away from the significantly sloped portion of the lot, thus reducing costs associated with grading, soil engineering, and overall construction.

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26. If the density bonus is based all or in part on dedication of land, the approval body has made the findings included in Section 24.16.230.

The project is not based on dedication of land; therefore, this finding does not apply.

27. If the density bonus, incentive, or concession is based all or in part on the inclusion of a child care center, the development conforms to the standards included in Section 24.16.235.

The project does not include a child care center; therefore, this finding does not apply.

28. If the density bonus incentive or concession is approved for a condominium conversion, the development conforms to the standards included in Section 24.16.240.

The project does not include a condominium conversion; therefore, this finding does not apply.

29. If the incentive or concession includes mixed-use buildings or developments, the nonresidential land uses will reduce the cost of the housing development and the proposed nonresidential uses are compatible with the housing development and with existing or planned development in the area where the proposed housing development will be located.

The project does not include a mixed-use building or development; therefore, this finding does not apply.

30. If a waiver or modification is requested, the applicant has shown that the development standards for which the waiver or modification is requested will have the effect of physically precluding the construction of the housing development at the densities or with the incentives or concessions permitted by this Part 3.

Section 24.16.255.4 of the municipal code allows a density bonus project to qualify for an unlimited number of waivers from development standards if it is shown that the standards will physically preclude the proposed housing development. The project is required to construct a new trash enclosure to accommodate refuse. Santa Cruz Municipal Code Section

24.12.140.2 prohibits an accessory structure from being located within the front or exterior side yard of a property. The project is requesting a waiver to allow an accessory building, the trash enclosure, to be placed adjacent to the apartment building and within the front setback of Lot 1 (which is measured from the interior lot line between lots 1 and 2, set back approximately 400 feet from High Street). This is the only possible location for the trash enclosure that complies with Public Works refuse service standards and that avoids constraints such as steep slopes and heritage trees.

31. If a commercial development bonus is requested, the project complies with the requirements of Section 24.16.258, the city has approved the partnered housing

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agreement, and the bonus has been mutually agreed upon by the city and the commercial developer.

The project does not request a commercial development bonus; therefore, this finding does not apply.

32. If the housing development or the commercial development is in the coastal zone, any requested density bonus, incentive, concession, waiver, modification, modified parking standard, or commercial development bonus is consistent with all applicable requirements of the certified Santa Cruz local coastal program, with the exception of density.

The project site is not in the Coastal Zone; therefore, this finding does not apply.

Heritage Tree Removal Permit, Resolution No. NS-23, 710

33. Alteration of a heritage tree or shrub would only affect less than twenty-five percent (25%) of the crown of said heritage tree or heritage shrub; Fourteen heritage trees are proposed for complete removal; therefore, this finding does not apply.

34. Findings by the Director of Parks & Recreation can be established in conformity with the City’s Urban Forest and Wildland Interface Policy Statement; The trees are located in the urban forest and in the wildland-urban interface. The proposed removal of trees is consistent with this policy statement in that prioritizes removal to those in poor condition or those that must be removed due to location within the project footprint, thus retaining the maximum number of trees given the proposed project. In addition, removal of trees in close proximity to the proposed building is consistent with wildland-urban interface policy to provide for defensible space around residential structures.

35. One or more of the following findings are established by the applicant and confirmed by the Director of Parks & Recreation:
a. The heritage tree or heritage tree shrub has, or is likely to have, an adverse effect upon the structural integrity of a building, utility, or public or private right of way;
b. The physical condition or health of the tree or shrub, such as disease or infestation, warrants alteration or removal;
c. A construction project design cannot be altered to accommodate existing heritage trees or heritage shrubs.

An Arborist report prepared by Kurt Fouts dated September 25, 2022, inventoried the trees in the project area, including 33 heritage trees. The report recommended removal of 14 heritage trees. Six of the heritage trees recommended for removal due to their condition.

These trees include one silver wattle acacia experiencing trunk lean and co-dominant trunk,

18.29 RESOLUTION NO. NS-XX,XXX
and five blackwood acacias with co-dominant trunks and/or canopy die-off. Eight additional heritage trees are proposed to be removed due to their conflict with the proposed building footprint and grading areas. An addendum letter dated February 3, 2023, evaluated whether an alternative building location would enable preservation of additional heritage trees. Due to various constraints, including required setbacks from highly-slopes areas of the site and the quarry to the east, a feasible alternative building placement that resulted in a greater degree of heritage tree preservation was not identified.

The City Urban Forester has reviewed the report and addendum and agrees with the recommendations. Each heritage tree to be removed must be replaced with one 24-inch box tree or three 15-gallon trees. Conditions of approval require the applicant to follow the recommendations in the report and to meet the tree replacement requirements for the heritage trees proposed for removal. Additionally, the recommended conditions of approval include more stringent tree protection conditions at the applicant’s consent to demonstrate the project’s commitment to preserving trees onsite. The conditions will require periodic arborist inspections during the construction process and will require that any heritage tree inadvertently and irreparably damaged during construction activities be replaced at an enhanced ratio of two 24-inch sized trees or four 15-gallon trees per tree removed (in lieu of the City’s adopted replacement ratio is one 24-inch sized or three 15-gallon per tree removed).

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

PASSED AND ADOPTED this 13th day of February, 2024 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

18.30 EXHIBIT "A"

CONDITIONS OF APPROVAL FOR THE PROJECT ON PROPERTY AT
900 High Street, Application No. CP22-0164
Minor Land Division, Design Permit, Slope Development Permit, Density Bonus Request, and Heritage Tree Removal Permit to divide a lot into two lots and construct a 40-unit (including five Low-Income units and four Very Low-Income units), four-story apartment building within 20 feet of a 30 percent slope and to remove 14 heritage trees on a site with an existing church in the R-1-10 (Single Family Residence) zone district.