City of Santa Cruz
809 Center Street
Santa Cruz, California 95060
MINUTES OF A CITY COUNCIL MEETING
February 13, 2024
11:00 AM
Mayor Keeley opened the City Council Closed Session at 11:03 a.m. in a public meeting via Zoom and in Council Chambers, for the purpose of announcing the agenda, and receiving public testimony.
Roll Call
Present: Councilmembers Newsome, Brown, Watkins, Brunner (left at 11:46 a.m.), Kalantari-Johnson; Vice Mayor Golder; Mayor Keeley.
Absent: None.
Staff: City Manager M. Huffaker, Assistant City Attorney C. Bronson, Assistant City Manager L. Schmidt, Director of Economic Development and Housing B. Lipscomb, City Attorney T. Condotti (via Zoom), Director of Information Technology K. Morgan (via Zoom), Deputy City Clerk Administrator J. Wood, City Clerk Administrator B. Bush.
Public Comment
Mayor Keeley opened the public comment period at 11:04 a.m. There were no speakers. Mayor Keeley closed the public comment period at 11:04 a.m.
Statements of Disqualification – Councilmember Brunner announced she will be recusing herself from items 2.1—2.3 as it relates to her employment.
At 11:05 a.m. the meeting was closed to the public and Council adjourned to the Courtyard Conference Room.
February 13, 2024 CITY COUNCIL MINUTES 6728
Closed Session
1. Conference with Legal Counsel - Existing Litigation (Government Code §54956.9(d)(1))
1) Alicia Lopez v. Mary McCoy, et al.
(Santa Cruz Superior Court Case No. 18CV03301)
2) Don’t Morph the Wharf! v. City of Santa Cruz et al.
(Santa Cruz County Superior Court Case No. 20CV02731)
Council received an update, discussed these two items with legal counsel, and took no reportable action.
2. Real Property Negotiations (Government Code §54956.8) 1) Property: 1126 Pacific Avenue
APN: 005-153-10
Owner: Frederick Meng
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Frederick Meng dba Café Delmarette
Under Negotiation: Price, terms of payment, or both
2) Property: 1016 Cedar Street
APN: 005-042-36
Owner: Farouk Algosaibi
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Farouk Algosaibi dba Café Limelight Under Negotiation: Price, terms of payment, or both
3) Property: 1520 K2 Pacific Avenue
APN: No APN / Public Right of Way (Portion)
Owner: Sunny Kavil
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Sunny Kavil dba Opulence Under Negotiation: Price, terms of payment, or both
4) Property: 37 Municipal Wharf
APN: 007-341-03
Owner: Stagnaro Fish Corporation (c/o Dino Stagnaro) dba Gilda's City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Stagnaro Fish Corporation Under Negotiation: Price, terms of payment, or both
February 13, 2024 CITY COUNCIL MINUTES 6729
Closed Session (continued)
2. Real Property Negotiations (Government Code §54956.8) (continued) 5) Property: 59 Municipal Wharf
APN: 007-351-04
Owner: Stagnaro Bros. Seafood, Inc.
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Stagnaro Bros. Seafood, Inc.
Under Negotiation: Price, terms of payment, or both
Council received a status report from the City Negotiator and took no reportable action. Councilmember Brunner recused herself from hearing items 2.1—2.3, and the whole Council was present for items 2.4—2.5.
February 13, 2024 CITY COUNCIL MINUTES 6730
City of Santa Cruz
809 Center Street
Santa Cruz, California 95060
MINUTES OF A CITY COUNCIL MEETING
February 13, 2024
12:30 PM
Call to Order – Mayor Keeley called the meeting to order at 12:32 p.m. in Council Chambers.
Roll Call
Present: Councilmembers Newsome (left at 12:59 p.m. and returned at 1:18 p.m.), Brown, Watkins, Brunner, Kalantari-Johnson; Vice Mayor Golder; Mayor Keeley.
Absent: None.
Staff: City Manager M. Huffaker, Assistant City Manager L. Schmidt, Assistant City Attorney C. Bronson, Director of Economic Development and Housing B. Lipscomb, Finance Director E. Cabell, Chief of Fire R. Oatey, Chief of Police B. Escalante, Director of Planning and Community Development L. Butler, Chief People Officer S. De Leon, Director of Parks and Recreation T. Elliot, Water Director H. Luckenbach (via Zoom), Director of Information Technology K. Morgan (via Zoom), Director of Public Works N. Nguyen (via Zoom), Senior Planner B.
Whitehill, Economic Development Manager R. Unitt, Principal Planner M. VanHua, Deputy City Clerk Administrator J. Wood, City Clerk Administrator B. Bush.
Oral Communications Announcement - The Mayor provided a brief announcement about Oral Communications.
Oral Communications
At 12:33 p.m. Mayor Keeley opened Oral Communications for members of the public who wished to speak regarding items not listed on the City Council agenda.
Garrett spoke regarding his experience with Black History in the third grade.
Ken Bare spoke regarding the third round of the Class and Compensation study.
February 13, 2024 CITY COUNCIL MINUTES 6731
Oral Communications (continued)
Bradley Snyder spoke regarding some buildings and apartments that are going up in downtown Santa Cruz.
James Ewing spoke regarding a loan from American Agency Bank, and a Putin interview he watched.
At 12:42 p.m. Mayor Keeley closed Oral Communications.
Presentations
3. Mayoral Proclamation Declaring February 13, 2024 as Leslie Conner Day Councilmember Kalantari-Johnson presented a proclamation to Leslie Conner declaring February 13, 2024 as Leslie Conner Day.
Presiding Officer's Announcements
Statements of Disqualification – Councilmember Newsome announced he will be recusing himself from item 18 as he owns property within 500 feet from the proposed project.
Additions and Deletions – None.
City Attorney Report on Closed Session – See pages 6728—6729 for the report.
Council Meeting Calendar
4. The City Council reviewed and did not revise the meeting calendar attached to the agenda.
February 13, 2024 CITY COUNCIL MINUTES 6732
Consent Agenda
Councilmember Brunner made a comment on items 9 and 12.
Councilmember Newsome made a comment on item 9.
Mayor Keeley made a comment on items 8 and 9.
Mayor Keeley opened the public comment period. The following people spoke:
Unidentified person spoke regarding items 7 and 15 (Consent Public Hearings).
Unidentified person spoke regarding item 5.
Mayor Keeley closed the public comment period.
MOTION: Councilmember Watkins moved, seconded by Vice Mayor Golder, to approve the Consent Agenda.
ACTION: The motion carried unanimously with the following vote.
AYES: Councilmembers Newsome, Brown, Watkins, Brunner, KalantariJohnson; Vice Mayor Golder; Mayor Keeley.
NOES: None.
ABSENT: None.
DISQUALIFIED: None.
5. Resolution Declaring the Existence of a State of Emergency Arising from December 2023 and January and February 2024 Winter Storms (CA/CM) Resolution No. NS-30,286 was adopted declaring the existence of a state of emergency arising from December 2023 and January and February 2024 winter storms.
6. Minutes of the January 23, 2024 City Council Meeting (CC) Motion carried to approve as submitted.
February 13, 2024 CITY COUNCIL MINUTES 6733
Consent Agenda (continued)
7. Integrated Regional Water Management – Memorandum of Agreement Renewal, Local Project Sponsorship Agreement Authorization, Decision-Support Tool Approval of Professional Services Agreement (CM/PW/WT)
Motion carried to authorize the City Manager to:
Execute the Memorandum of Agreement for the Santa Cruz Integrated Regional Water Management Program and Complementary Efforts in a form approved by the City Attorney;
Execute a Local Project Sponsor Agreement between the Regional Water Management Foundation and the City of Santa Cruz, in a form approved by the City Attorney; accept the funds; and execute all standard agreements for such funds and any amendments thereto and any other documents necessary to secure the Proposition 1 Integrated Regional Water Management Round 2 Implementation Grant Agreement funds for the Projects Entitled Project 3: Decision-Support Tool – Understanding Climate Influenced River Flooding and Project 4: Recreational Vehicle Sewage Dump Station in a form approved by the City Attorney; and
Execute an agreement in a form to be approved by the City Attorney with Environmental Science Associates (ESA) for consulting services for Project 3: Decision-Support Tool and to authorize the City Manager to execute future contract amendments within the approved project budget.
8. Resolution Establishing the 2024 Security Deposit Interest Rate for Residential Rental Property (ED)
Resolution No. NS-30,287 was adopted establishing the 2024 interest rate for the residential security deposits at 0.03% and rescinding Resolution No. NS30,096.
February 13, 2024 CITY COUNCIL MINUTES 6734
Consent Agenda (continued)
9. City Participation in County-wide Landlord Incentive Program – Contract Amendment and Budget Adjustment (ED)
Motion carried to:
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
Adopt Resolution No. NS-30,288 amending the FY 2024 budget to increase the allocation to the Landlord Incentive Program by $15,000 for the 2023- 2024 Program Year.
10. Annual Comprehensive Financial Report (ACFR) and Popular Annual Financial Report (PAFR) for the Fiscal Year Ended June 30, 2023 (FN) Motion carried to receive and file the Annual Comprehensive Financial Report (ACFR), and related reports, for the fiscal year ended June 30, 2023.
11. Neary Street Sewer Rehabilitation (c401511) – Authorization to Advertise and Award (PW)
Motion carried 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.
12. HSIP10: Unsignalized Crossing Improvement Project (c402215) – Notice of Completion (PW)
Motion carried 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).
February 13, 2024 CITY COUNCIL MINUTES 6735
Consent Agenda (continued)
13. Resource Recovery Facility Public Tipping Area Concrete Project 2024 (c401811) – Authorization to Advertise for Bids and Award Contract (PW) Motion carried 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.
14. Newell Creek Pipeline Replacement Project: Felton/Graham Hill – Award of Professional Engineering Services During Construction to Carollo Engineers (WT)
Motion carried 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.
End Consent Agenda
Consent Public Hearings
Mayor Keeley opened the public comment period. There were no speakers. Mayor Keeley closed the public comment period.
MOTION: Councilmember Kalantari-Johnson moved, seconded by Councilmember Newsome, to approve the Consent Public Hearings Agenda.
ACTION: The motion carried unanimously with the following vote.
AYES: Councilmembers Newsome, Brown, Watkins, Brunner, KalantariJohnson; Vice Mayor Golder; Mayor Keeley.
NOES: None.
ABSENT: None.
DISQUALIFIED: None.
February 13, 2024 CITY COUNCIL MINUTES 6736
Consent Public Hearings (continued)
15. 2nd Reading and Final Adoption of Ordinance No. 2024-01 Implementing the CalPERS Contract Amendment (CC)
Motion carried to:
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
Adopt Ordinance No. 2024-01 implementing the CalPERS contract amendment.
16. 2nd Reading and Final Adoption of Ordinance Number 2024-03 Municipal Code Amendments Relating to Objective Design Standards and Permit Processing Responding to Modifications Requested by the California Coastal Commission (PL)
Ordinance No. 2024-03 was adopted amending various parts Chapter 24.04 of the Santa Cruz Municipal Code related to permit processing in response to action by the California Coastal Commission.
17. 2nd Reading and Final Adoption of Ordinance No. 2024-05 Military Equipment Purchase Request and Policy Update per Assembly Bill 481 (PD) Motion carried to:
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);
Adopt Resolution No. NS-30,289 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, with Year 1 totaling $114,844, and authorize the City Manager to execute a contract in a form approved by the City Attorney.
February 13, 2024 CITY COUNCIL MINUTES 6737
At this time, Councilmember Newsome recused himself from this item and left the dais.
Public Hearing
18. 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) Senior Planner B. Whitehill gave a presentation and responded to Council questions.
David Patee, Pastor of Peace United Church of Christ, spoke.
Mayor Keeley opened the public comment period. The following people spoke.
John Hall
Lola Quiroga
Lisa Hayes
Mayor Keeley closed the public comment period.
MOTION: Councilmember Brown moved, seconded by Councilmember Kalantari-Johnson, to adopt Resolution No. NS-30,290 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 for the project at 900 High Street based on the findings and the Conditions of Approval.
ACTION: The motion carried with the following vote.
AYES: Councilmembers Brown, Watkins, Brunner, KalantariJohnson; Vice Mayor Golder; Mayor Keeley.
NOES: None.
ABSENT: None.
DISQUALIFIED: Councilmember Newsome.
February 13, 2024 CITY COUNCIL MINUTES 6738
At this time, Councilmember Newsome returned to the dais.
General Business
19. Mid-Year Budget Update
Finance Director E. Cabell and Chief People Officer S. De Leon gave a presentation and responded to Council questions.
City Manager M. Huffaker responded to Council questions.
Director of Parks and Recreation T. Elliot responded to Council questions.
Mayor Keeley opened the public comment period. The following people spoke.
Ken Bare
Garrett
Mayor Keeley closed the public comment period.
19.1 FY 2024 Budget Adjustments and Information on City’s Financial Status (FN)
19.2 Resolution Amending the City of Santa Cruz Personnel Complement and Classification and Compensation Plans for the Public Works, Parks and Recreation, Police, and Water Departments (HR)
MOTION: Councilmember Watkins moved, seconded by Councilmember Newsome, to:
Adopt Resolution No. NS-30,291 amending the fiscal year (FY) 2024 budget appropriation of expenditures to all funds as listed in Exhibit A, in the amount of $14,274,517, including an increase of $721,206 to the General Fund, and a total appropriation decrease of revenues as listed in Exhibit A in the amount of $10,782,600 to all funds, including a net addition of $358,844 to the General Fund,
Authorize the City Manager to allocate budgetary changes within the applicable funds and departments, and
Adopt Resolution No. NS-30,292 amending the Classification and Compensation Plans and the Mid-Year 2024 Budget Personnel Complement by approving classification and position changes in certain departments.
At 2:12 p.m. Council took a break and returned at 2:26 p.m.
February 13, 2024 CITY COUNCIL MINUTES 6739
General Business (continued)
19. Mid-Year Budget Update (continued)
19.1 FY 2024 Budget Adjustments and Information on City’s Financial Status (FN) (continued)
19.2 Resolution Amending the City of Santa Cruz Personnel Complement and Classification and Compensation Plans for the Public Works, Parks and Recreation, Police, and Water Departments (HR) (continued) After discussion, Councilmember Watkins amended the motion as follows:
MOTION: Councilmember Watkins moved, seconded by Councilmember Newsome, to:
Adopt Resolution No. NS-30,291 amending the fiscal year (FY) 2024 budget appropriation of expenditures to all funds as listed in Exhibit A, in the amount of $14,274,517, including an increase of $721,206 to the General Fund, and a total appropriation decrease of revenues as listed in Exhibit A in the amount of $10,782,600 to all funds, including a net addition of $358,844 to the General Fund,
Authorize the City Manager to allocate budgetary changes within the applicable funds and departments, and
Adopt Resolution No. NS-30,292 amending the Classification and Compensation Plans and the Mid-Year 2024 Budget Personnel Complement by approving classification and position changes in certain departments. Bring back Phase 3 to implement the compensation study at the March 26th Council meeting.
ACTION: The motion carried unanimously with the following vote.
AYES: Councilmembers Newsome, Brown, Watkins, Brunner,
Kalantari-Johnson; Vice Mayor Golder; Mayor Keeley.
NOES: None.
ABSENT: None.
DISQUALIFIED: None.
February 13, 2024 CITY COUNCIL MINUTES 6740
General Business (continued)
20. First Reading of an Ordinance Amending Uncodified Ordinance No. 2022-16 Extending Temporary Use of Certain Adjacent Public Street and Outdoor Areas for Eligible Businesses (ED)
Economic Development Manager R. Unitt spoke and responded to Council questions.
Mayor Keeley opened the public comment period. The following people spoke.
Karen Madura
Garrett
Mayor Keeley closed the public comment period.
MOTION: Councilmember Watkins moved, seconded by Councilmember Brunner, to introduce for publication Ordinance No. 2024-06 amending uncodified Ordinance No. 2022-16 extending temporary use of certain adjacent public street and outdoor areas for eligible businesses that extends the temporary period for commercial use on private property from March 31, 2024 to May 31, 2025.
ACTION: The motion carried unanimously with the following vote.
AYES: Councilmembers Newsome, Brown, Watkins, Brunner,
Kalantari-Johnson; Vice Mayor Golder; Mayor Keeley.
NOES: None.
ABSENT: None.
DISQUALIFIED: None.
February 13, 2024 CITY COUNCIL MINUTES 6741
General Business (continued)
21. Review of Recent State of California Legislation Impacting Local Control and 2023 Land Use and Housing Legislation Update (PL)
Principal Planner M. VanHua gave a presentation and responded to Council questions.
Director of Planning and Community Development L. Butler responded to Council questions.
Mayor Keeley opened the public comment period. The following people spoke.
Brad Snyder
Garrett
Mayor Keeley closed the public comment period.
MOTION: Councilmember Newsome moved, seconded by Councilmember Watkins, to:
Accept the review of recent state of California legislation impacting local control and 2023 land use and housing legislation update, and Reestablish the Council ad hoc Housing Committee with members consisting of Councilmembers Kalantari-Johnson and Newsome, and Mayor Keeley.
ACTION: The motion carried unanimously with the following vote.
AYES: Councilmembers Newsome, Brown, Watkins, Brunner,
Kalantari-Johnson; Vice Mayor Golder; Mayor Keeley.
NOES: None.
ABSENT: None.
DISQUALIFIED: None.
Adjournment – Vice Mayor Golder moved, seconded by Councilmember Brown, to adjourn. By consensus City Council adjourned at 3:45 p.m.
RESPECTFULLY SUBMITTED: ss/Julia Wood, Deputy City Clerk Administrator, ATTEST: ss/Bonnie Bush, City Clerk Administrator, APPROVED: ss/Fred Keeley, Mayor.